Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-20
PONzI RECEIVERS
NAMED BY COURT
Three Men Appointed Must
Qualify in Bonds of
$4,000 Each.

BOSTON, August s0.-The broken
fortunes of Charles Ponsi and the in
terests OF thousands of investors in
his get-rick- quick scheme were placed
IT. receivership by Judge Morton of
the federal district court today.
The cocrt appointed three receiv-
ers-William r. Sears of Cohasset.
John Forbes Perkins OF Milton and
Edward A. Thurston of FAN River. 1t
was ordered that they qualify in
bonds of $4,000 each.
Amount Of Asset. Uncertain.
The amount of assets to be In ndled
is uncertain. PonzTs statement that
they would aggregate 81 200. 600 being
the only estimate available.
The receivers VIII be called upon
to adjust claims which already aggre-
gate more than that sum on the basis
of records of notehoIders tabulated
by the state attorney general, and the
total is likely to run to $4,000 900, &C
cording to the estimate of Edwin l.
Pride. the accountant, who has been
making an audit of Ponzis liabilities
for the federal authorities. These fig
ures include the 80 Per cent profits
promised by Pcnzi 10 his investors
and incorporated in the notes which
he issued for payment in ninety days
With the probability that settle
ment of claims will be on the basis
of actual investments. the figures will
be pared down by approximately one
third. The receivers also will be
called upon to decide whether they
will proceed against those persons to
whom Ponzi paid the so per cent
profit before he stopped doing buA-
ness.
Paid Out $7.5O0.O0o.
He asserted yesterday that he had
paid out s7,500,000. Some Of these pay
mentS were refunds of actual invest
ments only, hundreds of persons hav-
ing fastened to abandon their prom
which marked several of the late
stages of the operations of PonZfs
Securities Exchange Company. Ac-
cordingly, the amount of money paid
out by Ponzi in interest, and subject
to action by the receivers, should it
given the persons who received it,
would be approximately 100000.
OF the receivers named by Judge
Morton. Sears and Thurston are law
yers and Perkins business man.
Sears appeared at the hearing on the
sentative of the Legal Aid Society of
this city. and in behalf of some Of the
creditors. Thurston was formerly
chairman of the republican state
committee. Perkins was formerly
secretary and treasurer Of the Calu-
met and Hecla Mining Company.
Blames Prominent Man.
Ponzi told deputy United States
marshe1s yesterday that his downfall
was due to withdrawal of support by
a man prominent in the city's finan-
cial circles. If, given his liberty I'M
der guard for sixty days, Ponzi as
serted. he would be able to make
good dollar for dollar on every prom
Use and prove his solvency
There is likely to be a big blow
up within a few days" he was quoted
as saying to the Deputies. IF I tell
what / know about a certain man
prominent in Boston, who poses as a
and public benefactor,
there will be a great change of senti-
ment. This man promised to stand
by me. and was under agreement to
support me financially. bat he wanted
the lions share Of profits and be-
cause he did not get enough he drew
Ponzi remarked as an instances of
public confidence in him
that he had recefve2Ans check for
$500 for investment before he left
the jail this morning, which he turn
ed over to Sheriff Fairbairn.