The Washington times., 1920-08-10
GET-R|CH-QU|CK
DEALSPROBED.
Creditors Charge money King"
Is nsokent-Thousands Still
Eager to Invest.

+ BOSTON. Aug. 10.-Developments in
the affairs -of Charles Ponzi, "Mys-
terry nnancier.' followed each other
thick and fast today. The most i'm
Iportant were:
Bank Commissioner ]. c. Allen or
'dered the Hanover Trust Company not
to pay any more OF Ponzfs checks or
those OF any OF his agents on the
ground that his account there was
,overdrawn. State officials declare
that this action will put Ponzi out OF
business
Charles CantweII, James Fernald.
>and Harry Farrell. all OF Suffolk
icounty, nled a creditors petition in
bankruptcy against Ponzi. declaring
him to be insolvent.
CAN'T CONFIRM CLAIMS.
! Attorney General Allen said that he
has been unable to confirm Ponzrs
lclaim that he has done business in
international reply coupons aggresat-
ling millions OF dollars. That he could
trace none OF Ponzis alleged foreign
transactions through italian banks.
and that one deposit in a local bank.
INSTEAD of being s250,00o, was found
to be only S121.43651.
1t became known that the Boston
fpolice are making an investigation
Unto PonzPs past.
The bank commissioner statement
lreads:
~ have directed the Hanover Trust
Company not to pay any more checks
of Charles Ponzi, the Securities Ex-
change Company, or any OF his agen-
ycies as the accounts of Lucy Martelli,
trustee, against which these checks
are charged, Is now overdrawn.
Ia - NJ
close of a conference with Special As
!sistant Attorney General Spring and
Assistant Attorney General Abbott.
BANKRUPTCY PETITION.
The bankruptcy petition alleged
that Ponzi committed an act of bank
ruptcy on or about July 15, 1920
while insolvent, in that he transferred
a large portion of his assets to one
Charles Hoffman, a creditor, with in
tent to prefer Hoffman over other
creditors of the same class.
The petitioners further alleged that
Ponzi paid Hoffman $4,000 to secure
Hoffman a percentage greater than
was and is obtainable by such other
creditors.
1t further charged that Ponzi COM
mitted other acts of bankruptcy on
or about July 16, 1920, when he trans,
ferred a large portion of his assets
to various concerns whose real names
and the amounts were unknown 20
the petitioners.
1t was learned today that following
receipt of a report from Montreal that
a man by the same name had been in
the clutches OF the law in the. Cana
dian city some years ago PonZi de-
MED that he was the man. ..--.-
Neither Ponzi nor the police would
make any statement regarding this
investigation.
OFFER THOUSANDS.
Prospective investors today Offered
thousands of dollars for stock in the
new 100000, 900 corporation of Ponzfs
which opened for business in this city
and Lawrence.
While many visited the Boston Of
fees ct II School street, the biggest
throng was at Lawrence. where ap-
p)tions for $4,000 worth of stock
were said to have been received.
In both places it was stated that
no cash would be accepted. the pros
pective investors being instructed to
write out their names and the amount
Of stock they desired to take. The
applications ranged in amounts from
500 to $4,000, most of the applicants
being fellow-countrymen Of Ponzi,
consisting largely of mill operatives
in Lawrence.