The midland journal. (Rising Sun, Md.) 1885-1947, 1920-12-24
|POnzi Sentenced to
Five Years in Jail

Boston, Charles Ponzi, promoter OF
the get-rich-quick scheme in which
thousands of persons invested millions
of dollars before it collapsed last Au.
gust, pleaded guilty to using the mails
in a scheme to defraud in the Federal
District Court.
Sentence of five years in the Ply.
mouth County Jail was impose dby
Judge Hale. The court took into con.
sideration only the first count of one
indictment of forty-three counts in
which it was charged that Ponzo had
represented falsely that he was able
to pay interest at the rate of so per
cent in As days from profits made in
international reply coupons.
The little Italian who, with prison
sentences in Canada and this country
behind him, developed his supposed
scheme of exchange in international
postal reply coupons to proportions
that made him marked figure in
finance only to have his house of easy
money topple over on him when the
props of income investors were pulled
out, had an air Of swagger when he
faced the court.
AS he faced another long prison SEN
tence while his youthful wife sobbed
on his shoulder, he penciled on a
memorandum block his parting word
to the public "Sic transit gloria mundi''
("thus passes the glory of the world")
and handed it to the press.
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. He
is due also to face his creditors, of
whom there more than 1000, on De-
cember s, when he will be subject to
their interrogations as to what he
did with the millions intrusted to him,
of which his federal receivers have
been able to retrieve only small part.
The argument of Daniel H. Coakley
in Ponzi's behalf was based on a claim
that the prisoner could have fled with
millions if 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. els there anything you can
say by which the court can conclude
that it was not wild scheme?"
81 don't believe the defendant con-
sidered it wild scheme" his counsel
replied. 'He had an obsession that
is a financial wizard Che won't like
this, for he believes he ISL"
Daniel J. Gallagher, United States
attorney, arguing for the government,
urged imposition of the maximum SEN
tence. He said:
at is true Mr. Ponzi did collect
about $10,000,0O0. 1t is also true that
he paid back about $8,O0O,000, leaving
a difference of about 100000 be-
tween what he took in and what he
returned"
Before imposing sentence, Judge
Hale said that counsel for Ponzi had
presented considerations of import
ance which were summarized by the
court as follows:
"That while as matter of law, the
respondent is guilty of a scheme to
defraud, he did not realize the fact
that the large number of men and wo-
men were actually to be defrauded."
Judge Hale continued:
THE court is impressed with much
that Mr.. Coakley has said. But the
court has a great duty to the public
as we'll as to the person Immediately
before it. 1t will not do to have the
public understand that such scheme
as his through the United States in,
strumentality could be carried out
without receiving substantial punish
ment."
Sentence was then imposed.
IN % !"