New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-05
LOUIS p. Levy ARRESTED.
TIE PRESIDENT or THE LIFE UNION CHARGED
WITH MlsAPPRoPRIATING slolH 90.

TIE PRESIDENT OF THE LIFE UNION CHARGED
WITH MlsAPPRorRIATING slo,l4l 90.
Louis r. Levy whose operations president Of the
Life Union the National Benefit society md the state
Mutual Benefit Associations were condemned recently
10y Michael shannon. Deputy superintendent OF lnsur'
ance on the strength OF whose report Deputy Attor-
new General Lardner secured the appointment OF a
receiver the three companies was arrested yester
day by the order OF Judge Patterson OF the supreme
Conrt charged with mi,appropriatins $1o141 o. The
three corporations life Insurance companies run
on the assessment plan.
Levy is a lawyer at No. 49, Broadway. lie was
arrested at his home, No. East Eighty thiru-st"
lriduy evening by Deputy sheriff Ferguson lie
rad made preparations to sail for Europe on the
Etrlrla Yesterday. HIS name with that OF his wife
w"rc on the Passenger list and his trunks had been
sent to the vessel
shannon Investigated the affairs of the three com
panc beginning October 3. 1892. lie reported that
w to March D. 1892. when Levy obtained control the
affairs OF all the companies fairly prosperous
Since that time Levy had used the funds OF the
several companies as II they We're his own personal
property and the kiting' OF checks had been Il
feature OF his management in consequence OF which
the three companies We're insOlvent Fraud was al
legged when the complaint was first served put LOT
the purposes the suit this charge was withdrawn ana
Judge Barrett appointed David Mcclure receiver on
the sole ground OF insolvency. on January II. The
assets OF the Life Union were placed at S0ooo- -
aud the liabilities at $3.50.
Lew retired from the presidency OF the Lie 'mon
on December - last, and George Dunlap was elected
TO the ONCE When Mr.. Mcclure took charge OF the
afnir OF the three companies he found that on the
day Of his resignation president OF the Life Cmoh
Levy had drawn d check for %l0l4l oO on me r.
serve fund the company, and had deposlI-u ~ IA
- bank 10 hi, persona. credit. Mr.. Mcclure drInatdn
Tho rrturn Of The money and Levy promised To pay u
back lie said he had drawn the money 10 mert
,I,...uing notes which he admitted we're not chaIe.n
on the reserve fund The failure OF Levy 10 rc.ui"
the money occasoned the application Tor MS arrss,.
Frederick 4. WinanS, secretary OF the company Mn h
Levy was president made an affdaVlt III wp'ei ". n
said that Levy had directed him 10 Ora" 'he 'He'A
TO cash. 4. A.. winons
In explanation OF the notes referred TO- Mr. W ~ a.
say, that the directors OF the Life mon r,>o. ~
AIril 1891 to buy the Interest OF tnc, floui
life Insurance Association for $4,000 ana ~
II with the Life Union To provide Tor paynnnu' IN
M. Union issued notes aggregaflng To2,Wo a .ha
agreed to assume note for $5,o0o. heia Wy ' nn
Central Rank The sum NJ III O00 was raiser III
the notes and paid TO Mr.. Vndsrh preSdent o. tne
Flour CITY Association, with notes tor tG4ooo bcIui
In. consolidation could be effected. the insurance NC
por.mcnt made an examination Of the ansirs Oh .'
,lrur City Association which resulted IN uie aPP.u
mani Of n receiver for the concern. The notes. .ir
Wtnans saws were considered by the 0ncers OF the
Iife Union 10 be Invalid There has never oee"
.tud large enough TO pay them. ,.., o..
In defanlt OF $iO 900 bail. Levy was committed 10
Ludlow street Jail. He refused TO See reporters oF
make a statement.