Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1910-01-27
EXPOSE
HUGE SWINDLE;
TWO ARRESTED
Prisoners Accused of Being
Head of Syndicate for
Fleeing Dupes
MANY LOSE MONEY
Real Estate Offices and
Cigar stands Said to
Have Been Lure
MANY LOSE MONEY

w the most extensive swindling
~ schemes ever perpetrated in Los
Angeles which the police department
has been trying to unearth for several
weeks was brought to light yesterday
afternoon when Adolph M. Green and
George Clark were arrested charged
with criminal conspiracy to defraud.
Green, who claims to have lived in
Los Angeles twenty-five years and to
have been engaged in business for
seven years is, according to the police,
the leader of a syndicate known as the
originators of the advertising scheme.
seeking "men of reputable character to
obtain high salaried positions on de-
posting financial security, the amount
being determined according to the
means of the applicant"
1t is alleged that for seven years
| Green and q number Of confederates
worked their game with great success.
but during the last few months became
so active that q number of their
"dupes," who had lost the money they
! invested, reported to the Citizens De-
| tective agency and asked for an in
| Vestigation.
Hundreds SWinded
The men who lost money through the
alleged swindling did not wish public
notoriety of the fact they had been VIC
| timized, but after investigation H. j..
Raymond of the private detective
agency found that it was q case for
criminal action and reported to central
police station.
| According to information gathered
| by Raymond, and said to have been
verified by the city detectives, the
I Green syndicate is alleged to have
swindled about fifteen persons in the
last few months, and 1t is estimated
that the victims during the past seven
years will number hundreds.
For a number of years advertise
ments have been inserted in a morning
newspaper stating that business part
ners with a small sum to invest were
wanted and guaranteeing a high
monthly salary. To carry out the plan,
Advertisements by the same syndicate
were printed asking for quotations on
bungalows and desirable real estate.
Offices were hired and Uttered with
'reaI estate literature, and the prospec-
tive "dupe" ushered in with all the
pomp and ceremony used in a genuine
| real estate office. Often he was kept
waiting while clerks who are said to
have been confederates hustled about,
| to give an appearance of great business
activity. The position was then ex-
Dld1nGQ 10 UlIIl, AldIh uOlil6 lie PLO~
| liminary talk, and when it looked as
though the victim was ready to "come
through Green would close the deal.
Deposits Required
The syndicate is alleged to have a
number of deals, but those worked
most frequently are said to have been
the sale of real estate offices and cigar
stands The victim was told what q
| thriving business had been started and
that one man was unable to care for
the Increased trade and desired a
| partner.
1t was explained that no person but
one of integrity and trust was wanted,
and in order to show good faith in the
| transaction a deposit of 5000 or $500 was
required, and that the victim would
make the plan stronger, the supposed
victim would not be allowed to enter
| the deal at once, however anxious, but
asked to furnish references.
When the references were furnished
the victim was asked to sign con-
tract, in which was a clause stating
| that the person entered the deal of his
own Volition and absolved his partner
| from any business reverses that might
result The man wanting the partner,
| which part is said to have been played
| bv Clark, then left the man in charge
| of the office and in a few days would
make some excuse about being called
away on business in another state and
would have to dispose of his interest.
| 1t is at this point that Green, accord
| ing to the police, played his strongest
| hand by calling and asking to buy out
Clark's interest. Clark would offer to
sell at sacrifice, naming a small sum,
/ and the victim, not wishing to lose his
| interest or to be frozen out" would
raise the amount and get full control
of the office. If he did not have the
additional money he would be forced
out, losing his deposit of 5000 or $500
and the same place would be used to
catch another gullible buyer.
Looked for Partners
| The other plan worked to advantage
| is said. to have been the purchasing
| of rundown cigar stands or starting
up new stands. One of the syndicate
would open the place and soon adver-
tisements would appear for a partner.
| The applicant would appear at one of
| Green's real estate offices and be
driven in an automobile to the cigar
! stand.
| In the meantime Green's confederate
was notified of the prospective part
| ner, and a number of friends were on
! hand to make purchases, to give the
victim the idea that business was good.
| After satisfying himself that there
was money in the business he would
| be driven by Green to a notary's office
| and the deal concluded. At the same
| time the victim was giving his money
| to Green, Clark, or whoever the con-
federate happened to be, would be re-
turning the change to the friends who
helped at the opportune moment to
make "business good"
| 1t is said that women have been en-
gagged to assist in carrying out the
| plans, and that the syndicate has
reaped thousands of dollars since be-
ginning operations. Eastern tourists
| were regarded as the easiest picking.
Yesterday afternoon Detectives Car
rol and Mcnamara were detailed on
the case, and r. l.. Roberts, who had
been swindled previously, was used to
make another deal for a cigar stand.
The plan worked and Clark was ar
rested by Detective Mcnamara while
waiting outside the All Day and Night
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