New-York tribune., 1918-07-31
Lawyer and Contingent Fee
Agent Accused of
Conspiracy
Company Formed 20
Split on Contracts
Federal Jury Take @;.st
Action in Scandal ON
Goods for Soldiers

AS result of the revelations regard
ing bribery and fraud in connection
with the awarding and filing of army
contracts for raincoats, the Federal
grand jury yesterday presented two in
dlctments In the Federal District Court
before Judge Learned Hand charging an
army officer, lawyer and a contingent
fee operator with conspiring to defraud
the United States.
The men accused are Captain Aubrey
W Vaughan, of the Quartermaster's
: Reserve Corps, attached to the supply
and equipment division of the quarter
MASTER generals Office, at Washington
Felix Gouled, contingent fee opera
tor, with Offices at l Madison Ave
nue.. and David l.. Podell, lawyer, of
IL Broadway.
There are two counts to each indict-
ment. The first charges conspiracy to
defraud the United States, and the sec
ond charges using the mails in a
scheme to defraud. The mailing of two
letters said to contain details Of the al
legged conspiracy is the basis for the
second Indictment
Give Details of Plot
1t is set forth in the Indictment that
Gouled and Vaughan had working
agreement by which Gouled was to
state to ralncoat manufacturers that
he was IN position to get contracts
for them to make raincoats for the
government if they would pay him a
certain percentage or commission.
The Indictment then charges that
money paid to GouIed as commission
would be divided among certain army
Gouled had taken out his Share.
Lawyer Is Involved
Podell is mentioned as the attorney
who agred with the other defendants
10 render services in the incorpora-
ton of corporation known as H. R.
Rosenfield Raincoat Company, Inc,
and to prepare contracts and agree
nents for the purpose of concealing
the true nature of the transactions
and also to conceal the payments to
the defendants.
The first Indictment charges five
overt acts:
First, that Gouled and Podellon, June
q. 1918, caused certificate of incor-
poration of the H. R. Rosenfield Rain
coat Company Inc.) to be executed
and signed by Harry Rosenield
Charles Hollender and Harold De
Brest.
Second, that on May 2s. 1918. Cap
tain Vaughan visited the Rosenfield
factory at Mount Vernon and made an
inspection of the plant
Third. that Gouled and Podell caused
to be prepared a certain contract by
which Gouled was to be paid 25 cents
Tor each garment manufactured by
Rosenfeld or the Rosenfield concern.
Fourth that they caused to be pre-
AIRED a contract by the terms of which
the Il. Rosenfied Company was to pay
- cents garment to Harry Rosen-
ield tor each raincoat manufactured
Fifth that they had prepared a con-
tract by which Martin Steinthal agreed
to pay Gouled per cent of the amount
actually received from the government
~ Steinthal for the manufacture of
puttees.
Gouled Out on Bail
Gouled was arrested with seventeen
Ialncoat manufacturers in a city-wide
rad made by the Department of Jus
tce on July % after Huston Thomn-
SON assistant to Attorney General
Iregory. had obtained evidence of AL
legcd bribery and fraud in connection
with the letting of raincoat contracts.
ie was arraigned before United States
Commissioner Hitchcock and held in
$4,000 bail. The others also were re
leased on bail. and the Federal Grand
Jury is now considering their cases.
Most of the defendants were charged
with bribing Charles Fuller, civilian
empioye of the quartermaster's de-
nartment. TO pass defective garments.
Captain Vaughan will be arraigne d
with the other defendants before Judge
Hand to-day for pleading and the fix
lqg Of bail Vaughan had complete
shoes. leather and rNbber goods in the
auartermaster generals Office.
Nr. Podell issued a statement last
night assuring his friends that thev
need not be alarmed at the charges
against h'm. He SAID that he felt that
ne mad done nothing that any reputable
member of the bar would not do - w.
matter came to him in his professional
capacity.