New Britain herald., 1920-07-10
Local Men Accused of Conspiracy Against U. s. and Taking Money for Doing Cot. Work.
Said to Have Charged Fees For Making Out War Risk Insurance Papers For Ex- Service Men.

Lawyer Daniel E. O'Keefe, a veteran of the world war. and wounded in action when he was serving as a ser geant with the 26th Division in France, and Aloysius Young were both bound over to the next term of the United States District Court in Washington, at a preliminary hearing given this morning in the office of Assistant United States District Attor- ney George H. Cohen at Hartford. The two local men are charged with conspiracy against the United States and taking compensation in matters to which the United States is party. Both men waxed examination. Bonds were fixed at s1O,OO0 in o'keefe's case and S5,oO0 in the case of Young.
 Arrested by Secret Service.
 O. F. McISenna and Raymond w. King, members or the United States secret service, after a day of investl- gation yesterday, took into custody Lawyer Daniel E.. O'Keefe of 115 Clark street and Aloysius Young or 3s3 South Main street, on a charge of fraud in connection with government war risk insurance. The warrant for the arrests were made out by Assist = ant United States District Attorney George H. Cohen. The accused men were taken to Hartford last night.
 The predicament in which the young men are in. comes as a surprise to local people. Both are well known. and are of prominent families Law yer o'Keefe is a former service man, having been a sergeant in the 102nd regiment of the 26th division. Young holds n responsible position at the Stanley Rule & Level company.
 Charges Preferred.
 From information gleaned today, the alleged methods of the two ac- cused men were to interest wounded ex-servfce men in the war risk insur- ance. Young, 1t is said, acted as runner. visiting different cities in the state, where he talked the matter or insurance. When the wounded service man would give his consent to making application for his war risk compensa- tion, it is said that Lawyer O'Keefe would fill out the application blanks, and either take them or forward them to Washington, D. c. Each of che accused are reported to have taken sums for sheir part of the transaction out of the insurance money. It IS Tor thi. offense that they are in the tolls.
 Sleuths Work Quietly.
 Under a mantle of absolute secrecy did the United States sleuths try to work yesterday. AS mentioned In last nights edition, they were at the office of the accused attorney. When inter- viewed by newspapermen. Mir. King, who was the spokesman, refused to divulge any information. Last night it was learned that a brother Of the accused lawyer. James O'Keefe. was jnterrogated during the grilling yes terday. It is understood that the of- ticers are in possession of valuable in formation pertaining to "higher up officials who may be connected with the alleged frauds which are said to be nation wide.
 Friends of Assistant Prosecuting At torney Joseph c. Woods are indig- nant at a published statement that Lawyer O'keefe is a law partner of Mir Woods. This is denied by mem- bers of the bar, and close associates of MT. Woods. The accused lawyer had desk room in the same office as Lawyer Woods and Lawyer F. F. Me Donough.