The daily banner., 1919-08-22
WARRANT OUT
FOR lAFEAN
Ex-Penna. Banking Commission.
eT Accused Of MISdemeanOr.
EXPECT MORE WARRANTS
Assistant Cashier of the Wrecked
Philadelphia Bank is Under Ar
rest

rest.
Philadelphia, Aug. 22.-On charges
of gross violation of duties and misde-
meanor in office, warrant for the ar
rest of former State Banking Com
missioner Daniel F. Lafean was is
sued in connection with the states
probe into the looting of the North
Penn bank.
Evan l.. Amber, the assistant cash
ier Of the defunet institution, was
rested at the same time on deposit
or's warrant charging that he con-
cealed the banks insolvency in order
to favor woman customer with
whom he was friendly with $4,000 of
the banks funds.
Earlier in the day, four true bills
of indictment were found by the grand
jury against Cashier Ralph T. Meyer,
charging him with perjury, embezzle-
ment, fasfication Of records and &C.
cepting deposits In q bank he knew
to be insolyent.
Three and possibly more arrests in
the North Penn scandal may be aex-
pected within the next two days, Dis
trict Attorney Rotan announced. He
also indicated that additional charges
may be brought against Lafean which
would result in his re-arrest later.
Lafean, who was banking commits
sioner under Governor Brumbaugh,
and previous to that a congressman
from the York-Adams district, will
probably be arrested at his home In
York.
The affidavit upon which the La.
fean warrant was based was sworn to
by Detective Joseph McClain, Of the
district attorneys ONCE, and deals
solely with the failure of Lafean to
take action toward closing the North
Penn after it had been reported In
solvent last. fall by James w. Mac
Burney, a state bank examiner. The
MaeBurney report, Of date September
80, 1918, showed a defalcation Of $49,-
600 in addition to insolvency.
Against the advice Of others in his
department Lafean Is alleged to have
started chickering's with the North
Penn directors, obtained from them
$4,000 In securities to cover the de-
faleation and refused to close the
bank.
Two days before leaving Office, on
January q, 1919, he met William T.
Gabell, a director now under arrest
on conspiracy charges at Harrisburg
and held a private conference with
him in his Office. During the confer
ence he sent for the $4,000 OF North
Penn securities. There is no official
record Of what he did with the seeuri-
ties.
letter signed by Lafean found In
the looted bank is evidence that he
negotiated for personal credit at the
bank. In the letter he refers to a
''previous conversation" on the SUBJ
ject. On February 6 he was voted
$4,000 credit by the North Penn d.
rectors. He took advantage Of $4,000
of this by indorsing a note on the
bank, dated February 6.
The charges embodied in the war
rant do not touch upon various other
phases of the Lafean case, which
have developed during the probe. This
does not signify, it was said that
these other matters have been drop
ped. The Lafean connections with the
hank are still under investigation, par
ticulariy as they may be linked with
those of~former State Insurance Com
missioner Charles A. Amber, who is
under $4,000 bail for hearing on
charges likewise involving misde-
meanors and misconduct In Office In
dealings with the looted bank.
Arrest of Amber, the assistant
cashier came as a surprise to the
state officials and was made without
any consultation with them. Several
OF them declared the action Is ILL
advised at this time.