Long Lane, Bermondsey in the 1930s, with its Victorian buildings still standing
I have always associated the ‘long firm’ fraud with 1960s criminals like the Krays. The scam, whereby a supposedly legitimate business is set up to develop a credit history before supplies are systematically defrauded, is described in Jake Arnott’s 2000 novel of the same name. The long firm died out in the late 20th century as paper trails meant it became harder to get away with.
However, it seems that the form of fraud, and indeed the name, has quite deep roots in London criminal history, as this case from the Southwark Police court makes clear.
Charles John Holms, alias Frederick Jackson was described in court as a 41 year-old baker, although it is quite clear that he did very little baking and quite a lot of fraud. He opened a shop at 91 Long Lane, Bermondsey and an account with the London & South Western Bank. It seemed then, that he was trading legitimately, but this was very far from the truth.
Acting after a series of complaints were, made the police began an investigation, headed by Inspector Matthew Fox of CID. Having obtained a warrant to search his premises, the inspector turned up at Jackson’s shop in May 1880.
‘The shop had the appearance to an ordinary observer of being well stocked. On the shelves were a large number of kegs and cheese boxes, but on inspection they were all found to be empty, and with the exception of some loaves of bread and two sacks of flour, there was not a single article in the shop that the prisoner purported to deal in’.
In other words it was a front or a scam, and when he looked further inspector Fox found the evidence he needed to arrest the fake baker. Several letters from suppliers were discovered, along with a blank cheque book and some other paperwork that showed what he had been up to.
Jackson (or Holmes) had been carefully contacting supplies all over the country, ordering samples, paying for small orders of goods that he then disposed of quickly, before upping the ante and placing larger orders for goods he had no intention of paying for.
He used the bank account to draw cheques ‘payable to himself, which he passed away in payment of goods, thereby leaving an impression that he was carrying on a genuine trading business’.
Witnesses at Southwark, like Edward Elevy, (a starch manufacturer from Battersea) told the magistrate that he had received a letter of introduction from C. J Holmes of Bermondsey, written on a ‘bill-head on which the words “Established 25 years” were printed’. Soon afterwards he got an order for 25lbs weight of starch. This was never paid for and when another order arrived he ‘declined’ it and eventually sued him for the debt.
Elvey was not the only victim, the court was told that there were at least 68 suppliers in London that were owed money, and a further 40 ‘in the country’.
In May 1880 Holmes was remanded in custody for another week and in August he appeared at the Central Criminal charged, alongside several others, with fraud. It was a long and complicated case and the trial record runs to several pages. At the end of it Holmes was found guilty of obtaining goods by fraudulent means and conspiracy – he was sentenced to five years penal servitude. Three others were similarly convicted but received shorter sentences of 18 months, and four men were acquitted.
The ‘long firm fraud’ it seems, has a longer history than we might have thought, making its first appearance on Google’s Ngram reader in 1868.
[from The Standard , Wednesday, May 19, 1880]