Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-20
RECEIVERS NANEl'
FOR PONl ESTA1E
Old Colony Foreign Excha,..
Also Taken Over by Z
Court
ASSETS NOT AscERrAlur,
BY the Associated Pres,

boston, Aug. 2o.-The broken .,
tunes OF Charles Ponzi and tho in,. ~'
OF thousands Of investors In ~. C'a
rich quick scheme were placed T.. w
ownership by Judge Morton of ~. y,
eral district court today. The cous, w.
pointed three receivers: William
Sears, of Cohasset John Forbr, n.
kins. OF Milton. and Edward A m
ton. of Fall River. II was orJc-nun. inun.
thsy qualify in bonds of $50 oHu ooo tat
me amount Of assets to be bsn%
is uncertain, Ponzi's statemoratp atpnoM
they would aggregate 81 4,Ooo oon ,nn
the only estimate available. ''' oe'ns
Claims May Reach 81 ,ooo. ON
The receivers will be called rn,,
adjust claims which ALREADY asrr, ypys
more than that sum on the Sss;au
records OF noteholders tabulsted hr a
state attorney general, and tbo
IS likely to run to 81 7.OOO. 900, acco,% r W.
70 the estimate Of Edwin l.. Prido ~
accountant who has been makin, ms
AUDIT OF Ponzi's liabilities for tho
eral authorities. These figures in inoles i.I
the o0 per cent profits promised "
Ponzi to his investors and incorno,,,
in the notes which he issued fnr Ota,. r.e
ment in ninety days. '' payl
With the probability that sett,.u.
OF claims will be on the basis NJ v actu.;
Investments. the figures will he ] n,,.
down by approximately one third m.
receivers also will be called unor
decide whether they will proceed sssrw
those persons to whom Ponzi psid n,
90 per cent profit before he stonnsi
doing business. 'pps
He asserted Yesterday that be M
paid out S7.500,000. Some Of th.S
payments were refunds of actual n
vcstments only. where hundreds Of ns,.
sons had hastened to abandon NM
promised profits in the run of wiM
drawals which marked several of M
late stages Of the operations Of Ponri;
Securities Exchange Co.
Ponzi Paid s.. ZOO. 200 Intere,.
Accordingly. the amount Of mons,
paid out by Ponzi in interest. and sub.
iect to action by the receivers. shoua
it be held that undue preference Va,
given the persons who received h
would be approximately $4,000, 900
OF the receivers named by Judr
Morton, Sears and Thurston are law,
yers and Perkins is business MIA
Sears appeared at the hearing on m,
petition for receivers as the Represent.
tive of the Legal Aid Society Of thn
city. and in behalf Of some Of the cred,
tors. Thurston was formerly chairmn
of the Republican state committee. PR.
kins was formerly secretary and trsm,
urer of the Calumet & Hecla Mimi
Company.
Receiver for Old Colony Also
The Old Colony Foreign Eyclaur
Co.. rival of Ponzi in offering MI
rates Of interest for investments. al
was placed in rcceivcrship by Judd
Morton. John r. IIannigan. of this ciy
n lawyer. being named as receiver.
A belief that creditors of the con.
pany would receive 90 per cent of thdt
investment was expressed to the coad
by Robert Gallagher, counsel for u
This figure is considcrabl
higher than the estimate Of Attorns
General Allen. of Massachusetts. vh
said yesterday that the visible asset
to something like Slj0Og
and that the total of the company
business in notes was probably $50
O00
Mr.. Gallagher told the court that
aside from the assets in the pOSSessicf
IF Attorney General Allen and the POI
lice, there was a deposit of $1,000 ni
Boston bank in the name of the wit
IF the president of the COMPANY
Charles Brightwell; deposit in Nes
York bank of $4,000, and the ONO
furniture.