The Washington times., 1920-02-27
D. c. COPS JOIN
|ARNSTE|NHUNT
Several Banks Here Victims of
Loans on Stolen
Securities.
SULLIVAN & co. AGENTS
Manager Drain Acted in Good
Faith in Introducing Client
George Wall"
SULLIVAN & co. AGENTS

%N~hs nihstOiis dhCkcu W udNc
been the master mind in the gigantic
plot to steal $5,000,000 worth of Sc
curities from the financial district
brokers Of New York. obtained more
than $167,0 in cash from several
Washington banks here the latter
part of last year on loan he had
obtained on stolen securities, accord
ing to Washington police.
The loss to the Washington finan-
cial institutions resulted in the
Washington police making Just as
eager search for Ernstein as is now
under way by the New York authors
ties. as we'll as the police of the er,-
tire world who have been urged to
capturs Arnstein in connection with
the conspiracy to steal stocks and
other securities, including Liberty
Bonds. in New York
Did Business Hero.
Arnstein did business in wasbine-
ton through the firm of David w. Sui
1ivan & Co., president of which was
David w. Sullivan, formerly saloon
keeper at Twelfth and e streets
northwest. who branched out into the
brokerage business after the Capital
went dry.
According to Inspector Clifford L
Grant chief of detectives, and John
j. Maynes, inspector for the American
Surety Company, Arnstein, under the
name of George Wall. came to the
Capital with many stolen securities,
and was introduced at several banks
by Michael p. Drain, local manager
for Sullivan at that time, and who, the
police said. acted in good faith In en-
deavoring to consummate the sale of
the securities. not knowing they had
been stolen
Late DisceverinE Fraud
II was not until January, this year.
several months after the stocks had
been negotiated in the Capital that
the Washington bank victims Of Aren-
stein and his associates discovered
the securities had been stolen. ana
that they were due to lose loans of
$167 900. The total value of the stock
| negotiated here was approximately
$247 900.
"Arnstein came to washington, and,
posing as George WALL" declared In
| spector Clifford L. Grant. chief OF
detectives, 'placed stolen stocks,
valued at $4,000. with Drain. who
was the local manager at that time
for Sullivan q Co.. the main office OF
the brokerage firm being at 10 Wall
street. New York.
"After negotiating this stock, Arm
stein opened up more accounts with
| other local members of the firm. Tho
| accounts were opened to the credit of
| George Wall, G. #. Enright and E. Il.
Steele" the accounts being. however,
only those of Arnstein-"
Drain Exonernted.
Police investigation has revealed
| that Arnstein was more than q close
| acquaintance of David w. Sullivan,
i and that he had allowed the New
York office of the brokerage Arm to
bring the stocks to the Capital to be
unloaded here, using Drain as a goat.
"Drain is clean" said John J.
Maynes, inspector for the American
Surety Company; "his character In
irreproachable."
II was after Drain had arranged for
the negotiation of $4,000 worth OF
the stolen stocks. that Arnstein is al
legged to have opened up other ac-
| counts with Sullivan & Co., which re-
suited in the unloading of the entire
| tZ4I,OOV worth OF SECURITIES IN IMAM
cial institutions here.
| stolen stocks Uncini-es.
| while Arnstein. known here under
the name of Wall, opened the hrst 40
count here with the stolen bonds"
| said Inspector Grant, che also negot-
ated the other stolen securities un-
der the names of c. F. Emrlght and
Il. E. steele. No such persons as tho
latter have been found, and they never
have made claim for tho stocks they
borrowed money on, and which later
have been discovered to have been
| stolen"
When Drain discovered that the
hrm by which he was employed had
been handling stolen securities, he
Immediately quit his job, Police off-
cials say he is a man OF irreprosch-
able character, and at the time he
handled the stolen securities had no
knowledge that they had been stolen.
Confined on Page 2. coinmn a. 4