The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-01
.P0NN SENTENCED
TOFIVE YEARS ON
CHARGE OF FRAUD
Financial Wizard Pleads
Guilty to Illegal Use
of Mails.
IS COUNTS REMAIN
Prisoner Maintains Swag-
ger Air While Listening
to Arguments.
DENIES CRIMINAL INTENT
Jail Term Will Be Interrupted
by Hearing Before 1900
Creditors.
DENIES CRIMINAL INTENT

Boston, Nov. 30.-Charles Ponzi pro-
moter of the quiclx-rich scheme In which
thousands OF persons invested millions
of dollars before it collapsed last August,
pleaded guilty to using the mails in
scheme to defraud. in the Federal Dis
trict Court to-day.
Sentence OF Ave years In the Plymouth
county jail was imposed by Judge Hale
The Court took into consideration only
the first count Of one indictment of forty
three counts in which It was charged
that Ponzi had represented falsely that
he was able to pay interest at the rate
of 80 per cent. in forty-fve days from
profits made in international postal reply
coupons.
In arguing on the question Of SEN
tence. Daniel II. Coakley, senior counsel
for Ponzi told the court that it was
only after strenuous advice from coun-
sci and members of the discredited
fnancier's family that he agreed to re-
tract his plea of not guilty and plead
guilty instead. Mr. Ponzi insisted, and
still insists, that there was In his mind
no intent to defraud any one" his coun-
sci declared
The little Italian, who, with prison
sentences in Canada and this country
behind him. developed his supposed
scheme of exchange in international pos
tai reply coupons to proportions that
made him marked figure in finance,
only to have his house of easy money
topple over when the props or income
from investors were pulled out. had an
air Of swagger when he faced the court
He was the same dapper man-about-
town when he stepped from the CAM
bridge Jail this morning as in the days
when he was the idol of the street
crowds. A new tailored suit, smart era
vat, handkerchief in breast pocket ana
feet adorned with spats made PonZl
again q man of presence.
AS he faced another long prison SEN
tence while his youthful wife sobbed on
his shoulder. he penciled on a memo
randum block his parting word to the
public. "Sic transit gloria mundi." CThus
passes the glory of the world. and
handed 1t to the press.
When he went up to the bench TO plead
a moment later he was emphatic when
he said. 81 do" to the clerks question
whether he wished to change his plea OF
not guilty, and was equally assertive as
he made the plea, Guilty In ioud
tones in the next breath. Then Ponzi
leaned over. resting his head on his
arm, while he listened to his counsel
plea for a lisht sentence.
Ponzi will begin his sentence at the
county Jail In Plymouth with eighty
five counts OF the Federal indictments
against him on file, and with charges OF
larceny in many counts outstanding
against him In the State courts. lie Is
due also to face his creditors, of whom
there are more than 11.O00. on Decem-
Der 8, when he will be subject to their
jnterrogations as to what he did with
the millions entrusted to him. of which
his Federal receivers have been able to
retrieve only a small part.
The argument of Mr. Coakley IN
Ponzrs behalf was based on a claim that
the prisoner could have fled with mill
ions mad he wished to defraud. and that
he thought he was on the way to make
millions for his investors and himself
Judge Hale interjected a query at this
point us there anything you can say
by which the court can conclude that IL
was not a wild scheme?"
81 don't believe the defendant con-
sidered Il wild scheme. | don't think
he considers II this morning wild
scheme. He believes n he had not been
arrested he would have paid dollar for
dollar and made millions. No. wild and
reckless though he was. Mr.. Ponzi never
had an intent to defraud any man or
woman. He had millions of money In his
possession which he might have made
use Of hmselg. His wife to-day has
only three suits of clothes.
"He had an obsession that he Is a
financial wizard Che won't like this. for
he believes he isl. Your honor has not
the right to deal with him as with a
man who did these things maliciously.