Los Angeles herald., 1910-03-01
$4,000 JEWELRY
FIND POINTS TO
HUGE SWINDLF
Federal Officers Discover
the Hiding Place of
Rosen'S Valuables
PARTNER ARRESTED
Goods from Cincinnati
Consigned to Girl at
Ocean Park
TT HREE thousand dollars worth Of

N HREE thousand dollars worth Of
Jewelry, cut glassware and fine
clocks, buried beneath layers of
paper and bedding and hidden in bar
rels, believed to be a portion of the
$4,000 worth of property alleged to
have been taken surreptitiously from
their creditors by Morris Levine and
Charles Rosen, was recovered yesterday
by deputy United States marshals from
the Mark Zervoni warehouse at Ocean
Park.
The property, listed as household
goods, was consigned to 13-year-old
Dora Pearlman, who lived with Rosen
and his wife at Sc Dudley avenue,
Ocean Park.
The girl disappeared shortly after
Rosen, who was arrested Friday, was
questioned as to the whereabouts of the
$12, 900 worth Of property and his part
ner, Levine. When Deputy United
States Marshal b. H. Franklin reported
the finding of the five barrels filled with
jewelry, clocks and valuable glassware
he was partly paid for his unsuccessful
quest of the consignee, Dora Pearlman,
DY Iile lildL MOTIFS LGNlDts
Rosen's business associate, was under
arrest in city in the northwest. Le-
vine, said to be known to the police
and wholesale jewelers. because of q
peculiar businses transaction in st.
Paul, Mimi, is believed to have used
Rosen as a tool to conceal his business
dealings, which now are the subject of
an investigation in bankruptcy before
Referee Lynn Helm. Also, 1t is the
faf thaf ha ma ha in fangCpgSi0n ar
the remainder of the alleged concealed
property.
According to the federal officers. the
facts in this peculiar case, which indi-
cate a huge swindle, are these.
Rosen engaged in the jewelry busi-
ness in Cincinnati last April. Levine,
who did not dare, it is said, to permit
his name to be known in the company,
appeared there as the manager. The
company was capitalized at $4,000. but
this did not prevent it carrying $4,000
stock consisting of diamonds, jewelry,
clocks and expensive umbrellas. Sixty
days after the store was opened the
stock was paid for and credit was es-
tablished which enabled Rosen to enter
the New York market and make larger
purchases.
Purchased "on Time"
This purchase, like portion of the
UrSI, WAS on lllllClN hdyo AAAAAD. AAC
list purchased included $4,000 worth of
watches, $4500 worth of diamonds and
a general stock costing him $4,000.
PAYMENT on the stock did not fall due
until December 1. When the clerks
observed Levine and Rosen taking it
from the store by the cartload they
believed 1t was for trade with the
jobbers. When November 15 was
crossed off the calendar the only
In, ctr wa fha aha4ner
general stock.
December 1 came, and Levine and
Rosen could not be located by the
creditors. The clerks said their en-
ployers had not visited the store in
several days. Alarmed the creditors
filed a creditors petition in bank
ruptcy against Rosen December 15
last, and were authorized to take pos
session of the $1,000 worth of general
stock in the store and place it in the
receivers hands. Rosen's wife, who is
unusually pretty, asserted she was
penniless, and filed demand for $500
in lieu of her homestead rights. In
explaining her right to the property
she inadvertently let it slip that her
husband was in Southern California.
Supplied with this information, San
ford A. Headly, q Cincinnati attorney,
acting for the creditors and the re-
ceiver, Hiram Bolsinger, took up Ro-
sens trail and located him at Ocean
Park.
At the time of Rosen's arrest by
Deputy Marshal Franklin Mrs. Rosen
insisted they were penniless. Twenty
four hours later she received $3.50 from
source then unknown to the author
tiles. Later the sender of the tele-
graph money order was traced to
city in one of the Dakotas, and this
furnished the investigators with a
clew as to Levine's hiding place. Now
that the federal officials have both
men in custody, they are asking ques-
tions as to the scope of the operations
of the alleged diamond and jewelry
swindlers, and believe that the rami-
fications may include other deals or a
startling nature.
Rosen Before Referee
Rosen's hearing in the bankruptcy
court, undertaken yesterday, win be
resumed today before Referee Helm.
His examination on charge of con-
cealing unpaid for merchandise will be
taken up by the United States COM
missioner March 81. AT the referees
hearing Attorney Headley compelled
Rosen to admit he had ordered many
thousands of dollars worth of mer-
chandise and jewelry, but he refused
to enter into details, hiding behind his
constitutional rights which prevent
his incriminating himself.
The barrels of jewelry had been
packed and stored, according to Head
iy and Balsinger, by the Fireproof
Storage company of Cincinnati and
consigned to Dora Pearlman at Ocean
Park, Cal, through the Bekins Stor-
age company at Los Angeles, whence
the Ocean Park warehouse received it.
The authorities believe that the re-
maining $4,000 worth of jewelry has
been slowed away in the northwestern
city where Levine is held, awaiting
advices from Los Angeles.
Attorneys for the creditors claim to
have in their possession evidence to
the effect that July 13, 1907, Mrs.
Rosen before her marriage, when she
was Miss Levine, paid $400 through
an attorney to the Flnkelstein Jewelry
company, 112-14 East Seventh street,
st, Paul, Mimi, to drop prosecution
against her brother, Morris Levine,
who is said to have received articles
from the jewelry firm for which he
would not pay. The Rosens were mar
ried in Seattle. They lived at one time
in Fairbanks. Alaska.