Newark evening star and Newark advertiser., 1915-04-09
CHARGE FRAUD IN
CONTEMPT CASE
Three Persons Named in U. S.
Court Complaint Anent Hoff-
man Haberdashery Failure.

Charges of contempt OF court have
been brought against three persons
in connection with the failure of q
| haberdashery store conducted by
Jacob Hoffman. at 1856 Second street,
Passaic. Hoffman, his brother, Sam
uel Hoffman, and David Zaritzsky, of
Passaic, are named in an order to
show cause why they should not be
held in contempt of the United States
District Court. The charges will be
heard in the Federal Court here Mon
| day before Judge Haight.
An involuntary petition in bank
ruptcy was filed against Jacob Hofr-
man on March IS. George Furst, of
this city, representing the receiver,
obtained an order for special exam
ination of the bankrupt, his brother
and Zaritzsky. This examination was
scheduled to take place before Ref
cree Frank Van Cleve in Paterson on
March rs.
David Zartizsky was the only per-
son subpoenaed who appeared at the
hearing. Contrary to the summons,
however, Zaritzsky failed to produce
any books or papers dealing with the
Hoffman business. Henry Weinberg
er, of Passaic, appeared as counsel
for the three men under subpoena
and promised to produce witnesses If
the examination was adjourned until
March 81. This request was granted
by the referee, but when the time
for the hearing arrived the receiver
Assistant United States District At
torney Charles F. Lynch and his
counsel were the only persons who
appeared.
How Scheme Was Hatched.
Attorney Furst charged that Jacob
Hoffman and the other two defend-
ants contrived a scheme to conceal
assets and defraud the creditors. 1t
Is alleged that on July 10, 1908, Jacob
Hoffman was in business at 81 Sec
ond street, Passaic, and executed a
chattel mortgage for $1,000 to his
brother Samuel.
The next step in the fraud scheme,
according to Mr.. Furst, was taken on
February last, when Jacob Hoffman
was being pressed by creditors and
requested his brother to foreclose on
the mortgage. A foreclosure sale was
held on February 10 and the Hoffman
stock was sold to David Zaritzsky.
The receiver stated his belief that
Zaritzsky Is related to the bankrupt.
Even after the foreclosure sale
Jacob Huffman remained in control of
the store and apparently there was
no change In the management, states
the receivers petition. Jacob Hoff-
man lives above the store. When the
latter is approached by creditors, it
is said, he takes refuge in the state
ment that Zaritzsky is the owner of
| the place.
The receiver concluded his charges
with the statement that he believes
| the alleged ownership by Zartizsky Is
merely a scheme to conceal the real
ownership of the store and to de-
| fraud creditors. When the receiver
was appointed, Zaritzsky appeared
and presented his claim of owner
| ship. Under a court order Zartizsky
was allowed to share in the manage
ment of the store with the receiver
| pending a suit to determine IL Zaritz-
sky's claim is valid.
| Mr.. Furst today declared the Who'll,
scheme was a palpable fraud and
| that it could be exposed easily IL tn
creditors were given an opportunit.
to examine the Hoffman brothers ant
Zaritzsky. Jacob Hoffman's liabilities
are estimated to be $1,000 and th'
assets s1,b00