The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-08-17
PONZI SURRENDERS
TO FEDERAL AGENTS
USING MAILS TO DEFRAUD
CHARGE FACING FINANCIER.
About 10000 Observation-Disclosures
Announces Liabilities Of Defend
ant Total 100000.

Boston, Mass, Aug. 12.-"My
faith in my husband is mistaken.
shall stick by him to the end"
Thus Mrs. Charles Ponzi made an
swer late today when informed that
her husband, internationally known
now as the "foreign exchange wiz
ard" had been placed under arrest.
81 love him more than ever" Mrs.
Ponzi added.
She surprised her interviewers by
declaring she knew all the time that
her husband had served prison terms
in Montreal and Atlanta.
'I knew before we were married,
she said. ellis mother told me all
about it in a letter written from
Italy. I knew he made amends for
the wrong, if there was any. 1t made
no difference though and it makes no
difference now."
Ponzi Arrested.
Ponzi. the fnancier who claimed
TO have made millions in interna-
tional postal reply coupons was ar
rested in the federal building today
when accompanied. by his counsel,
Don;a, n Coakley and United States
Attorney Gallagher he went to the
office of United States Marshal Pat
rick ]. Duane and surrendered.
The charge placed against Charles
ponzi on information furnished by'
himself, was for use of the mails
in a scheme to defraud and POM,
was notified he would have to FUR
nish $4,000 bail.
BY surrendering, Ponzi beat Atsor-
ney General Allen by matter OF
minutes for the latter at the time
Ponzi was surrendering to the Unit
ed States marshal was asking the n1u-
nicipal court for warrant for Pom
zi's arrest. Before the authorities
learned of the surrender the war
rant had been obtained and sherlffs
were on the way to Ponzi's home IN
Lexington.
:. Willingly surrenders.
According to the federal authori-
ties the arrest came after a confer
ence in which Ponzi frankly stated
his willingness to surrender and ad-
mitted that he could not meet his
liabilities.
Attorney Gallagher and Ponzl
both issued statements Immediately
following the surrender and arrest.
The former said:
.'on Monday Mr.. Ponzi said that
when the audit was made he would
show enough assets on Friday to
cover. In conference, with post
Office inspectors yesterday while talk
ing with Auditor Pride he made GER
tain admissions. I notified Ponzi l
would not wait until tomorrow. He
later told me 4 shall not be able to
do tomorrow what I promised to do
Ponzi's statement was as follows:
'sI had made an agreement with
United States District Attorney Gal
lagher that I would go to his office
on Friday and meet all my abllgo-
tions with cash. With the closing OF
the Hanover Trust company my
funds are tied up and I found my
self unable to do as I promised.
Therefore I felt it nay duty to look
him UP today and explain the situa-
ton and ask him to detain me-"
Hearing August 10.
Ponzi's case will come up for
hearing on August 19. He pleaded
not guilty when arraigned before
United States Commissioner Hayes,
at which time bail was fixed at $685.
900.
Attorney General Allen, investiga-
tor of Ponzi's operations for the
state of Massachusetts declared to-
night that Ponzi's liabilities will run
into millions.
''The capital Of the Hanover
Trust company is very badly impair
ed and probably is wiped out COM
pletely," Bank Commissioner Allen
declared. The depositors, he said,
probably would be protected by the
liability of the stockholders, the cap
ital stock and the surplus.
James J. Fernad, one Of Ponzrs
creditors, has petitioned for appoint
ment of receiver for the affairs OF
the Securities Exchange company,
Ponzi's firm.
Gov Coolidge answered the attack
of State Treasurer Burial upon the