Every evening, Wilmington daily commercial., 1920-08-20
RECEIVERS FOR PONz|
APPO|N TED BY COURT
Imprisoned Financicr Hints of
Sensation in Future
Developments.
BY Associated Press TO Every Evening

by ASSOCiated ffeSs 10 Every Evening
Boston, Aug. 2O.-The broken for
tunes of Charles Ponzi and the interests
of thousands of investors in his quick-rIch
scheme were placed in receivershlp by
Judge Morton of the Federal District
Court today.
The court appointed three receivers s.
William r. Sears of Cohasset, John Forbes
Perkins of Milton and Edward A. Thurs
ton of Fall River. 1t was ordered that
they qualify in bonds Of $4,000 each.
In brief respite from the East Cam
bridge Jail, where he has been a pris-
oner since he surrendered a week ago,
Ponzi was taken yesterday before Fed
eral commissioner here for hearing on
charges that he used the mails in pursuit OF
a scheme to defraud. He waived exami-
nation and was whisked back to jail in
default of $25, 1000 bonds. Trial was set
for September term of the Federal Dis
trict Court.
Ponzi told deputy United States
marshals who had charge of him during
his absence from the jail that his down
fall was due to withdrawal of support by
a man prominent in the city's financial
circles. If given his liberty under guard
for sixty days, Ponzi asserted he would
be able to make good dollar for dollar
on every promise and prove his solvency.
There is likely to be big blowup
within few days" he was quoted as
saying to the deputies, ''if | tell what |
know about a certain man prominent in
Boston who poses as a philanthropist
and public benefactor There will be a
great change of sentiment. This man
promised TO stand by me, and was under
agreement to support me financially, but
hp bod hc EA soha aft
and because he did not get enough he
drew out
Ponzi remarked as an instance of con-
tinued public confidence in him that he
had received check for $500 for IN
vestment before he left the jail this
morning, which he turned over TO the
sheriff
Ponzi's liabilities, as uncovered by the
States attorney general last night, to-
tailed 81, BOSS representing the claims
of 10000 investors, plus the 90 per cent
interest promised.
New York, Aug. 20.-Antonio B. Sal
Watt, who conducted a bank IN Montreal
in 1918, with Charles Ponzi as his assist
ant, was pointed out TO Detective Michael
Fiachetti Yesterday afternoon atBroadway
and Twentv-third street by Detective
George H. Rioux of the Montreal police.
Fiachetti placed the man under arrest. He
admitted his identity and offered no re-
sistance The warrant from Montreal
charged larceny of 1904 SIS from Fran
cisco Charpaleggio, an investor.
The amount of assets 10 be handled rs
uncertain Ponzi's statement that they
would aggregate s40O0.000 being the
only estimate available. The receivers will
be called upon to adjust claims which are
likely to run to S7OOO,000 according TO
the estimate of Edwin l. Pride, the ae-
countant who has been making an audit of
Ponzis liabilities for the federal authorl-
ties. These figures include the 80 per cent
profits promised by ponzi to his investors
The receivers also will be called upon
to decide whether they will proceed against
those persons TO whom Ponzi paid the
30 per cent profit before he stopped doing
business.
He asserted yesterday that he had paid
out 81 500, 900. Some of these payments
were refunds Of actual investments only.
The amount Of money paid out by Ponzi
IN interest and subject TO action by the
should it be held that undue
preference was given the persons who re-
ceived it would be approximately 81, ,000,
900.
The Old Colony Foreign Exchange Com
pany, a rival OF Ponzi in, offering high
rates of interest for investments. also was
placed in receivership by Judge Morton.
John f. Hannigan, lawyer, was named
receiver.
Acknowledgement Allen OF Massachu-
setts said that the visible assets amounted
TO something like $4,000 and that the
total of the company business in notes
was probably $500 900. The company's
counsel said creditors would receive 80
per cent.