The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-07
L. B. ADAMS, BROKER,
ACCUSED OF FRAUD
Postal Authorities Assert He
Swindled Firms by Cir
cular Game.
OFFERED TO SELL STOCK
Had Names of 10000 Possible
Buyers--Denies Kinship
TO Policy King.
OFFERED TO SELL STOCK

Lorenzo r. Adams. ian investment
broker" OF I Broadway. said 10 be
nephew of the late Al Adams. the policy
king. although he denies the relationship,
was arrested yesterday By the postal au
thorities charged with using the malls TO
dcfraud.
The complaint. specifies $4,000 as the
amount he has obtained fraudulently; the
pos. Office inspectors have on their list
seventy-f FIVE firms which they believe
they can prove he has defrauded. They
believe the publicity resulting from the
arrest will cause many other firms to
come forward and that, when the case
comes to trial. they will have five or six
hundred firms on their list. with evidence
that Adams has obtained 100000 or
more in the last five years through his
use OF hoary old scheme for which Sow
cral men have gone TO Jail.
Adams admitted yesterday. when ar
raigned before Commissioner Shields. that
most people with whom ne has don. bust
ness believe that he is related TO the late
policy king
But this Is not So" he said. al
Adams had n son. Louis T. Adams, and
the similarity in Initials led some peo-
pie 20 believe that Al and I were re-
lated. Several commercial agencies In
vestigated this matter. but found We were
not related. But I have done business
for Al Adams. and he was one OF the
best business men have ever met"
L. Il. Adams first bobbed up In the New
York financial field AS president OF the
Colonial Securities Company. organized
to push the stock OF the Guanajuato Min.
ing Company. which was owned BY AL
Adams Sales IN the company were brisk
until the failure Of the bucket shop OF
NJ D. Sage q Co, backed by Al Adams.
and then the fact that AL Adams was
connected with the mining company be-
came public. Then the sale of the stock
fell off.
Under Watch q Months.
Lorenzo Adams became an investment
broker ave years ago, but the attention
OF the authoritie did not become focused
on him until about three months ago.
when complaints caused AN inNestiga-
ton. For three months Post Offce In
pectors Mayhem and Swain kept tabs on
his business. then they drew UP the COM
plant and arrested him.
They assert that Adams used a cheap
scheme to defraud, cheap but highly
lucrative. II Is charged that he repre-
scented TO firms wishing to sell stocks or
bonds that he had large wealthy ellen
t.le and II would pay them 10 have him
push the stock lie said he had a mail
Ing list OF 10000 and numerous agents
through the country.
II a firm wanted him 10 push its stock
he would say the first step was To circu-
larize his mailing list. This would cost
anywhere from $3.50 up. the maximum
sum that has come 10 the attention OF the
authorities being $1,000. He would make
the hrm pay the cost OF printing and mail
ing these circulars. according to his
alleged system and instead of sending
out the circulars would keep the money.
IN the last three months. while his
business has been under the eye of III"
authorities, he has obtained $4,000 in
this manner the postal inspectors say.
The complaint alleges that he sent
letters to =. ". Branin. secretary Of tho
Cooperativ" Mining and Development