How to fix AppleEvent handler failed error with command "make new mailbox with properties"

Below is the script I am running to create a hiearchy of new mailboxes inside "ON MY MAC" folder area.

tell application "Mail"

makenewmailboxwith properties {name:"ABar"}

makenewmailboxwith properties {name:"ABar/Foo"}

makenewmailboxwith properties {name:"ABar/Foo/Me"}

end tell

When I execute this the first mailbox is excuted fine but right afterwards I get the following error:

error "Mail got an error: AppleEvent handler failed." number -10000

I have tried adding delays but this does not work either. Code:

tell application "Mail"

makenewmailboxwith properties {name:"ABar"}

delay 0.2

makenewmailboxwith properties {name:"ABar/Foo"}

delay 0.2

makenewmailboxwith properties {name:"ABar/Foo/Me"}

end tell

However rerunning the script and skipping over the make command if the folder already exit, causes the next exuction time to create one more folder.

Code:

tell application "Mail"

if (mailbox "ABar" exists) = false then

makenewmailboxwith properties {name:"ABar"}

delay 0.2

end if

if (mailbox "ABar/Foo" exists) = false then

makenewmailboxwith properties {name:"ABar/Foo"}

delay 0.2

end if

if (mailbox "ABar/Foo/Me" exists) = false then

makenewmailboxwith properties {name:"ABar/Foo/Me"}

delay 0.2

end if

end tell

** Anyone know how to solve this or why this is happening? **

It almost feels as if the hiearcgy is read into memory and this is not updated after the creation of the new mailbox.

Thanks!