The San Francisco call., 1897-04-16
HUGH B, McaVOY
ACCUSED OF FRAUD
Miss Annie B. Gallagher,
His Partner, Files a
Complaint.
Saws He Has Systematically
FaIsifed the Accounts of the
Undertaking Business.
Thousands of Dollars Alleged TO Have
Been Unlawfully Diverted to
Hs Golfers.

Miss Annie B. Gallagher, by her attor-
neys, Sullivan d Sullivan, has instituted
a suit against Hugh B. McAvoy and
Ernestine Gallagher, executri1 OF tho es-
tate of Henry J. Gallagher, deceased, for
an accounting.
Miss Gallagher is a partner in the un-
dertaking business of McAvoy & Gala
CHER at 20 Fifth street. She alleges that
she and her brother had always had the
greatest confidence in the honesty and in
regrity of McAvoy and permitted him to
take full charge of the books of the firm.
A suspicion of dish one.ty never crossed
their minds, and so the books were never
given even a cursory examination until
after the death OF Henry Gallagher, when
it became necessary to balance them to
ascertain the value of his interest in the
firm.
The complaint says that 1t was found
that McAvoy's frauds com mmenced in May,
1887 one year after the partnership was
formed, and have continued ever since.
BY means OF false iootings he had been
able to appropriate Sl3, 800 belonging to
the firm.
Miss Gallagher also charges that Nc
Avoy has defrauded the firm OF various
other sums in other ways, but the amount
the firm in favor of the DonohoeK Kelly
Banking Company for $4,000 and appro-
priated the borrowed money to his own
uses.
Miss Gallagher always employed man
to look after her inter ests in the firm, but
discharged him short time ago. He was
Immediately employed by McAvoy, who
refused to permit James Sullivan, Miss
Gallagher's newly employed representa-
tive, TO see the books or look after her in
terests in any way.
Miss Gallagher alleges that the stock
anu fixtures of the firm are worth $45 600,
and that there are outstanding accounts
to the value of $4,000. while the firm has
debts amounting TO SIG, 600.
1t is alleged that proceedings in insolven-
cy are about to be commenced and that Nc
Avoy is not able TO pay his share OF the
debts.
The plaintiff asks that McAvoy be COM
PEELED to account for the profits of the
business; that he be restrained from in
terfering with the business of the firm,
and that receiver be appointed.
John l.. Buckley was appointed re-
celver and the restraining order issued as
prayed for, preventing any further trans
fer OF property interes,s one way or an
other.
Last Monday there was placed on rec
ord mortgage of $3.50 given by h B.
McAyoy and wife to the California Casket
Company on the property at the north
west corner of Broderick and Waller
streets. On the same day Mrs. McAvoy
filed declaration of homestead on the
same property, valuing it at $500O
Miss Gallagher alleges at the false
entries by McAvoy VIII amount to $13, 800,
but she Is unable to ascertain the extent
of his other fraudulent transactions.
Mr.. McAvov came to THE CALL office
last night and made the following state
ment and denial:
MY conduct has been honorable, and
an investigation will show that $I1, 600
was invested by Mr.. Gallagher, and that
the $1,000 borrowed was with his full con-
sent for my brothers use. The sums
drawn by Mr.. Gallagher were larger than
those drawn by me, and a thorough in
vestigation will put me in proper light
l simply ask a suspension of judgment
until the case is settled"