The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-27
NEW CASE AGAINST M'vURDY.
MUTUAL NOW ACCUSES HIM or
"FRAUDULENT CONSPIRACY."
Complaints Served Yesterday Allese That
He. Thebaud and Raymond COnsplred
Together to Get Money From the
Company-McCurdy on the Defence.

The Mutual Life Insurance Company
formally charged ex-President Richard A.
McCurdy yesterday with having entered
into "a fraudulent and corrupt conspiracy"
with his son-in-law, Louis A. Thebaud, and
Col. Charles H. Raymond for the purpose
Of enriching the partnership Of Raymond
6Co.
The charge is contained in a complaint
served yesterday in an action brought by
the Mutual Life against Mr.. McCurdy, his
son-in-law and Col. Raymond to recover
Sl.25O,O 900 paid by the company to Ray
mond 4 Co. Service was accepted by De
Lancey Nicoll of the law firm Of Nicoll,
Anable 4 Lindsay for Mr.. McCurdy and by
John S. Wise for Thebaud and Raymond.
A second complaint in a suit against
Charles H. Raymond and Louis A. Thebaud
also was served yesterday. This latter
action is to recover $500, 900 paid to the Ray
mond firm as gratuities from January l.,
1893, to November II, 1905. 1t is included
in the nbos e amount.
The payments on which the complaints
served yesterday are based were included
in the complaint served against Mr.. Nc
Curdy last week, but it is now alleged
that the losses sustained by the plaintiff
as a result Of these payments were brought
about by a fraudulent conspiracy and agree
ment between tho three defendants. The
previous complaint in the McCurdy action
had merely alleged that the losses had been
occasioned by unfaithfulness on the part
OF the ex-president In the discharge OF his
duties. Eight actions in all have been
begun by the Mutual against the former
president, his son. Robert II. McCurdy,
Th6baud and Col. Raymond.
The complaint charges that the con-
epiracy and agreement were made by the
defendants at or about the time of the en-
ployment in 1893 Of Charles H Raymond and
ouis A. Thebaud, under the firm name of
{. H. Raymond d Co, az the general agents
Of the company throughout the greater
portion of the city Of New York and parts
adjacent. The conspiracy is set forth as
follows:
That on or about the date of the formation
Of said partnership between the defendant
RAYMOND and Thebaud. and from year to year
thereafter, the defendants McCurdy. Ray
mond and Thebaud, for the purpose of enrich
ing the said partnership. and particularly the
defendant Thebaud. at the expense and cost
Of the plaintiff corruptly and fraud ulently
conspired and agreed with each other in the
following manner. to wit. that in the aforesaid
business Of the said partnership as the gem
eral agent Of the plaintiff the said partner
chip should be paid compensation out OF the
funds Of the plaintiff at special, exorbitant.
unconscionable and unnecessary rates, and
should In addition from time to time be paid
moneys out of the funds OF the plaintiff for
which no consideration would move 10 the
plaintiff.
1t is further charged that in consequence
and in pursuance Of this conspiracy pre-
tended contracts were thereafter made in
the name Of the Mutual Life Insurance
Company with the Raymond firm wherein
the commissions, allowances and extra
compensation of the firm were fixed at
special, exorbitant and unnecessary rates,
and that through the use by the defendant
McCurdy Of his power and official position
as president and a trustee Of the plaintiff
commissions at those rates were paid out
Of the moneys Of the company.
1t is also alleged that pursuant to the
same conspiracy and by the use of the
same means other moneys, a~ggregating
not less than $500, 600 were paid to the
Raymond firm practically as gratuities
and without any consideration TO the
plaintiff; hat by means Of the alleged con-
spiracy the defendant Thebaud from 1893
to 1904, both inclusive, made net profits
out of the firm aggregating $771 $685..
The payments to the firm, it is charged,
were grossly in excess Of a fair and reason
able compensation for the services rem
dered and were in large part a waste of
the assets Of the plaintiff and a fraud upon
1t and its policyholders.
This complaint contains a second cause
Of action, alleging that the defendants
wrongfully and without authority took
from the plaintiff the sum Of $500, 900 and
----4 ~ - A1~., -,- .~ W.
subject matter Of this second cause Of ac-
ton is the gratuities mentioned above.
In the separate action brought against
Thebaud and Raymond to recover the
$4,000 the complaint alleges:
That during the period from the first day
OF January. 1893, TO the seventeenth day Of
November, 1905, certain officers and agents
OF the plaintiff, without authority or author
i2ation by the plaintiff. from time TO time
wrongfully and ~unlawfully made certain pay
ments aggregating not less than $500. 900
ont Of the funds OF the plaintiff to the de-
PENDANTS, doing business under the firm name
and style of Charles II, Raymond q Co., which
payments were not provided to be made
by any contract or contracts. or pretended
contract or contracts, at any time existing
between the plaintiff and the said partnership
or the defendants, or either OF them, and
for which payment there was no considera-
ton whatsoever moving from the said part
nership or the defendants. or either Of them.
10 the plaintiff.
The Mutual Life is represented in the
litigation by Joseph H. Choate, Julien T.
Davies and Charles F. Allen.
John S, Wise, Jr., one of the counsel
for Raymond d Co., was questioned in re-
gard to the allegations in the complaints.
THE company will never be able to sus-
tain them, " said he.
"Whyi'
Because they are all fictitious and with
out merit. They contain absolutely no
grounds on which to bring the actions.
The complaints do not specify dates or
facts. They only allege generalities. There
is nothing specific or definite about them,
In reference to the $500 900 charge the COM
plant doesn't give a date or one specific
item composing that amount. The plain
tin claims an immense amount of money,
but l will say that there has not been any
thing like this around here since the days
OF Col. Mulberry Sellers. There is not a
word Of truth in the charges that's the size
NJ >