▁the ▁annual ▁report ▁for ▁ 1 9 2 7 ▁against ▁both ▁defend ants ▁and ▁on ▁count ▁ 3 ▁K yl s ant ▁alone ▁was ▁charged ▁with ▁issu ing ▁a ▁document — the ▁deb ent ure ▁stock ▁prospect us ▁of ▁ 1 9 2 8 ▁with ▁intent ▁to ▁indu ce ▁people ▁to ▁advance ▁property ▁to ▁the ▁company . ▁All ▁counts ▁were ▁contrary ▁to ▁section ▁ 8 4 ▁of ▁the ▁L arc eny ▁Act ▁ 1 8 6 1 . ▁Both ▁defend ants ▁ple aded ▁not ▁guilty ▁to ▁all ▁counts . ▁ ▁The ▁main ▁defence ▁on ▁the ▁use ▁of ▁secret ▁reserve ▁account ing ▁came ▁with ▁the ▁help ▁of ▁Lord ▁Pl ender . ▁Pl ender ▁was ▁one ▁of ▁the ▁most ▁important ▁and ▁reliable ▁account ants ▁in ▁Britain , ▁and ▁under ▁cross - ex am ination ▁stated ▁that ▁it ▁was ▁routine ▁for ▁fir ms ▁" of ▁the ▁very ▁highest ▁re put e " ▁to ▁use ▁secret ▁res erves ▁in ▁calculating ▁profit ▁without ▁declaring ▁it . ▁Patrick ▁H ast ings ▁said ▁that ▁" if ▁my ▁client   ... ▁was ▁guilty ▁of ▁a ▁criminal ▁off ence , ▁there ▁is ▁not ▁a ▁single ▁account ant ▁in ▁the ▁City ▁of ▁London ▁or ▁in ▁the ▁world ▁who ▁is ▁not ▁in ▁the ▁same ▁position ." ▁Both ▁K yl s ant ▁and ▁Mor eland ▁were ▁acqu itted ▁of ▁counts ▁ 1 ▁and ▁ 2 , ▁but ▁K yl s ant ▁was ▁found ▁guilty ▁on ▁count ▁ 3 ▁and ▁was ▁sent enced ▁to ▁ 1 2 ▁months ▁in ▁prison . ▁ ▁K yl s art