The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1920-08-13
PONzI IS UNDER ARREST
CHARGED WITH USING THE
MAIL TO DEFRAUD
Boston Financier Held Pending
An Investigation of His
Affairs
ASSOCIATED Press Dispatch. ]

ASSOCldleu tEcSS DlSPoNSA'I
Boston, August 12.-Charles Ponzi
was arrested today by the federal au-
thorities, charged with using the
mails 10 defraud.
At the time Ponzi gave himself up
a hearing was being held before
Judge Bennett of the munlclpal court
sitting in chambers on ponce ap-
plication for the arrest of the imam
cier. The hearing was secret.
Gave Self Up.
Boston, August 2.-Charles fonzl
surrendered to United tSates marshal:
district Attorney Gallagher said
that Ponzi had surrendered because
he left himself to carry out promises
he made for the redemption or his
notes tomorrow.
Bank Is Closed.
Boston, August 21.-A creditors
petition asking for the appointment
of a receiver for Charles Ponzi was
filed in the federal court TO-DAY.
Bank Commissioner Allen announc-
ed this afternoon that the capital Of
the Hanover Trust Company probably
had been completely wiped out. The
bank was closed by the commissioner
Yesterday. Charles Ponzi had been
director up to yesterday.
Statement or Ponzi.
Attorney General Allen said that
Ponzi's liabilities will run into the
millions.
Ponzi issued the following state
ment after his arrest:
81 had an agreement with the dis,
trict attorney to go tomorrow ana
meet nv liabilities with cash. With
the closing Of the Hanover Trust
Company and with other funds tied
up / find myself unable to do SO.
felt it my duty to tell him and ask
him to detain me"
Debts Are Large.
Boston, August 12.-Federal AUDI.
Ponzi's liabilities were upward OF
$1,000, 900 and assets s4.000,00O.
Dodaed State Officers.
Charles PonZi, whose spectacular
career as an investment banker was
cut short by the authorities today
surrendered to the United states
marshal and was placed under arrest.
He was charged with having used the
mails in a plan to defraud.
pected the young Italian financier
burned a trick by putting himself In
the custody of the federal authorities
at the moment that the. state police
were petitiontng a municipal court
Judge to issue a warrant for his ar
rest. Ponzi apparently was alive 10
what was imminent and leaving his
Lexington home early this afternoon
hurried to the office Of the marshal
and asked to be taken into custody.
A warrant charging him with misuse
of the mails was Immediately served:
His arraignment followed Ponzi
pleaded not guilty and was held in
bail for $4,000 for a hearing August
10. He said that he would furnish
surety.
Charge Of Larceny.
The surrender of Ponzi did not de-
ter the state authorities from their
purpose to obtain his arrest. It was
said that their charge would be lar
ceny and the hearing continued while
Ponzi waited for bail at the federal
building The ramifications Of Pom
zi's banking connections shared in
the public interest the fate of himself
and his company. the Securities Ex-
change. Bank Commissioner Joseph
c. Allen, who yesterday closed the
Hanover Trust Company, alleging H.
legal operations in connection with
Ponzis affairs, this afternoon issued
q statement declaring that the CAPT
tai of the Trust Company was not on
ly impaired, but in his opinion prob
ably wiped out.