New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-25
ELEVEN HELD in
BANKRUPTCY PLOT
Lawyer Involved in Scheme
to Defraud Creditors by
False Insolvency.
ALL HELD UNDER
FEDERAL BONDS
United States Authorities Wage
Steady War on Fraudulent
Business Schemes.

Louis Malvln, Solomon Papert, Philip
Fishkin and Alexander Bloch, the hrst
three furriers and the latter a lawyer,
were arrested yesterday on warrants
sworn out by Assistant United States At
torney Raymond II. Sarfaty charging
them with participating in a conspiracy
n conceal the assets Of the bankrupt fur
firm of Jacob Stein & Sons. Of No. 81
West 2sth street. United States Commits
sioner John 4. Shields held Papert, Fish
kin and Bloch in 5000 bonds and Malvin
in $500 for a hearing Tuesday. All fur
nished sureties.
Previously Jacob Stein. Phelps Stein
Samuel Bonis, Henry NJ. Bonis, Isaac
WeiLstein, Samuel II. Samuels and Henry
4. Kuntz. a lawyer, had been held IN
50 90 each for a hearing on the same
charge. and it is expected that other ar
rests will be made to-day and tomorrow
by United States marshals and detectives
employed by the Fur Merchants Credit
Associa ton.
According to Sydney Brooks Rosenthal'
of Rosenthal & Heermance, counsel Tor
the credit association. the arrests are
based uron a plot Matched in the HOFFMAN
House January II, at which lawyer
coached several persons, including some
Of those accused. as to ways and means
Of defrauding creditors of Stein & Sons
by concealing their stock. AS result
large number of trucks were backed up
70 the Stein place early the next morn
ing ana sent away loaded with valuable
freight. Unknown 10 the conspirators'
Rosenthal had been notified, and rep
resentative OF the merchants association
trailed each truck.
That. dav two petitions in bankruptcy
we're filed within ten minutes OF each
other against Stein q Sons. One was
permitted to lie dormant that day. the
second. flied nv Rosenthal, was pressed to
immediate action, and upon It the court
appointed Ernest X. Coulter receiver.
Coulter. with Mr. Rosenthal, at once
placed the case before United States At
torney Marshall who had Mr.. Sarfaty
working on the case until Friday. when
conditions we're found ripe to begin max
ing arrests, the decision 10 act being
FASTENED by word that some OF the men
now under bonds were preparing to leave
the country. Part OF the cases against
them was presented TO the grand jury
Yesterday. and the work will be COM
pleted when that body meets tomorrow.
The arrest OF those charged with con-
spiring 10 hide the assets OF the Stems.
who had $1,000 in liabilities. is part of
campaign tine federal attorneys office
has been waging against crooked bank
rupts for several months.
we have found some people who have
had several failures In the last lew
years" said Mr. Sarfaty yesterday, and
the sending Of lawyers 10 Atlanta for aid
ing crooked bankrupts TO try TO defeat
the law has not stopped the practice OF
coaching such persons. II has been a
prontable business. and ordinarily one
that has not been oyerdangerous.
THE amount OF stealing done in this
way has been so large that many associ
atoms have combined TO put an end TO II.
The only way TO end It, however. Is 10
send a lot OF people TO Atlanta and con
vince others that tampering with the
bankruptcy law Is serious business