Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-08-10

Boston. aug. s.-Acticr . cheek the
business dealings Of Charles Pcnzl.
VINO claims 10 have made millions
through International postal exchange,
was taken roday through ar invoIun-
tarr petition II bankrupis,- nled by
three men VINO hold notes totalling
$3.50 and BY Bank Commissioner Jos
epn II Allen VINO ordered lie Hanove,
Trust 60 10 pay no more checks If
PonzI or MS agents because Of An al
legged overdrawlng Of an account 1t
that banA.
An increased activity IN f-de-al ana
state Investigations was also noIe,;.
Attorney General J. Weston Allen
gave out statement which charged
that inquiries Of state rr1claIS mad
thus far failed 10 connrrn Ponrl' 5
claims that ne has dealt extensively IN
International reply coupons.
Late Il the day porzl was cIoseted
= conference with United States At
torney Dame j. Gallagner ana Ed
win L. Pride. the federal auditor en-
gagged n going over ms accounts. but
Al Adjournment nothing vas given out
except he statement that lhe confer
enCe would De resumed tomorrow one
Of FonZi's attorneys. however, 80 d
that they mad been engaged II check1ng
IN on the audit There was uulhiI,,
70 Indicate that the report Of the audit
had been nlsd.
newspapermen discussing the day de-
vel1pn euts reiterated that he was
solvent ana that he desired 10 have
The invest CATION complete ed as soon as
possible So that ne might resume his
business operations
He sa-u that ne had a certified
check for $500. 9ee subject 10 So
DAYS notice 81 withdrawal al the
Hanover Trust COMPANY where il 5
alleged ne has overdrawu one account
ana added that he hao IN deposit IN
the form Of funds ana securities AL
other Institutions n tins city amounts
more than sufficient 20 cover all liza
bllliies
Bank Commissioner Allen III a
statement explaining his order 10 the
Hanover Trust COMPANY said that he
had 1ound that the account Of Lucy
Marteli. trustee for Ponzi had been
overdrawn and was therefore com
PEELED 70 take action. He refused q
say how much the account had been
overoFawn. As commissions OF
Eanks" ne said. Il have no supervision
over the affairs of Ponzl or the Secur-
tiles Exchange COMPANY fI'onzi s
company. The moment I learn. how
ever that ne Is OVERLAPPING his &C
count IN trust ccrnpanS which is
under nv supervision. II IS my duty
10 interfere
The petition n bankruptcy alleged
that Ponzl was insoivent ana that
about July Is he transferred a portion
IF his assets TO one Charles Hoffman
a creditor. With intent 10 give MIN
preferment over other creditors" The
amount transferred to Hoffman was
set in the petition al So. eoe. The pc
titioners were Charles Cantwell
James Fernaid and Harry Farrell
The courr Immediately issued a sub
poena returnable August Is.
A statement filed with the petition
alleged that on or about July Is. while
insolvent. Ponzi transferred large per-
tons OF his assets u various creditors
whose real names were unknown to
the petitioners with intent to prefer
those creditors over others Of the
same class.
The assets alleged TO have beer
transferred consisted. according TO the
petition NJ large sums of money, the
exact amounts of (which were un-
known 20 the petitioners the effect
being in each instance TO secure the
creditors receiving said payments a
greater percentage than was and Is
ebtalnabie by other creditors or
Ponzi'