Arizona republican., 1920-08-12
PONz|'S PRISON
 RECORD IS MADE PUbL|C;HANOvER
 BANK IS CLOSED
Clever Financier Admits He Has Served Two Prison Terms; Says Bank Will Pay All Outstanding Notes
[RepubIlcan A. p. Leased Wirel

IRepublican A. p. Leased Wirel
 BOSTON, Aug. 11.-Charles Ponzi, who has handled millions of dollars Of other peoples money, confessed today Hanover Trust company, in which he was director and shareholder and through which he had done a large checking business was closed by order of Bank Commissioner J. C. Allen. Ponzi also announced his resignation from the banks directorate
 Commissioner Allen said he had acted because his examiners had found that the bank had made loans "beyond the legal limit and many loans that are either bad or are of doubtful value He expressed the fear that the banks capital had been impaired.
 The executive committee of the Han over Trust company in a statement said the committee believed there were few poor loans on the banks books, and that there was no reason to believe that the bank would not continue to meet it's obligations and that it had a cash reserve three times that required by law William $. McNary, treasurer, said that Ponzi did not owe the bank a cent that any bank would have been glad Of his account and that PonZi had paid out S6,000,0O0 through the bank.
 Ponzi Admits Prison Record
 Ponzfs confession followed publica- tion of stories of the career of Charles Ponsi'' in Montreal
 After conferring with his attorneys, Ponzi admitted he and ''Ponsi' were the same man, that he had served 20 months in prison in Montreal for forg- cry and two years in the federal peni- tentiary at Atlanta for smuggling Italians into this country.
 He asserted his sentence for forgery resulted from his assuming the blame for a crime committed by a banker in Montreal by whom he had been en- declared he did not smuggle the Ital- ianS into this country, saying he crossed the border on the train openly"
 "If I made mistake I paid for it, ]" he said. ''I had every reason to believe society owed me another chance"
 Ponzi later reiterated previous as sertions that he was solvent and could pay all notes against him in his opera tion of the Securities Exchange com pany. It was the large business done by this company, which offered 50 per cent interest in go days on all loans and which redeemed many notes in 45 days, that resulted in the investigation under way Ponzi claimed that through his manipulation of interna- tional postal reply coupons in Europe he was able to pay the large interest rate and make huge profits himself. Now Wants to Make Good | In his formal statement he said: | <'The statement I am about to make should have been made before, in view of the fact of the notoriety of the press. Several years ago I committed sin. If I made a mistake and paid foI ! it, I had every reason to believe that society owed me another chance
 'T am not the first one to have com fn1 ufr I Nff 1r were under the same situation years ago and now today occupy prominent positions I do not see why I should be come the object of persecution on the part of the authorities, press and the public.
 Charles w. Morse, at one time z prominent banker, was also convicted in United States courts and sentenced to 15 years in Atlanta, Ga I know be l cause I was there with him. He wa: released after serving a very small par of his sentence. He has been now oc' cupying for years position stil gerater than before.
 t'I do not mean in any way to impl, that he is not deserving respect of thu public, but I merely ask, if he is de serving why shouldn't I be?
 Protected Montreal Banker
 Montreal records show that a mar of my description was convicted O forgery in 1908 and sent for three year to St. Vincent de Paul and served about 20 months.
 "I feel that it is very important fo the people to know that although I an the man who was convicted and sen fenced for that crime. I am not tn man who perpetrated the crime. Wha is occurring today to me happene' then in Montreal, the only differenc ) being the object of persecution wa my employer.
 "A man apparently friendly to hin suggested that he leave Canada, tn object of the man being to appropriat during his absence all the assets lief by the fugitive banker. In order to b sure he wouldn't come back to deman an accounting, he compelled him t ! forge certain instruments which h was going to hold as a club over h head. I was present at the trans action.
 ''When it developed later that tn
 man could not gain possession of tn assets. revenge or other motive prompted him to demand the retur
 of my employer under eXtraditio papers on a charge of forgery, fror Mexico to Montreal.
 q felt indignant as any other ma r would feel under the circumstance and decided that I would save m
 employer regardless of cost or con