Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-14
PONz|'S BUSINESS
RIVALS ARE NEXT
TO FACE CHARGES
Old Colony Foreign Ex-
change Company's Off
ciaIs Under Arrest
ilEW BLANKET WARRANT
ISSUED AGAINST ITALIAN
Although Bondsman Surrenders
Prisoner to Authorities, Ponzi
Is Confident of Release.

BOSTON. August 13.-While the
tangled web OF the law was twining
and drawing still closer about Charles
Ponzi. alleged perpctrator of the
greatest investment swindlo in his
tory. warrants today were sworn out
and served upon President Charles NJ.
Brightwcll and three other officials
OF the Old Colony Foreign Exchange
Company, rivals of Ponzi. and who
had been Offering 100 per cent profit
in six months. The warrants charged
larceny.
In addition to Brightwell. Fred
Beyers. his manager. Charles Ray
mond, and 4 clerk. were taken into
custody at Young's Hotel
The police alleged they were pre-
pairing to flee the city.
Ponzi's troubles today began when
Morris Rudnick. his bondsman, with
drew his bond and surrendered the
little Italian TO the authorities, be-
cause he feared his family and friends
might not understand his action in
going Ponzi's bail"
Prisoner Surrendered.
Cndaunted. Ponzi walked to the
Federal building. only to be met with
the information that Judge Bennc..
in the Municipal Court. had issued n
blanket warrant with fifty-thrce
counts. charging larceny of s24.o20
from various noteholdcrs. The prose-
cutor and others aligned against
Ponzi said that when nc was brought
into court again the bail would be
placed SO high he could not be re-
leased
Ponzi still smiled. He has 4 smile
that won't come off. and always his
love OF publicity drives him to the
newspaper men.
One of his announcements today
was that motion picture Arm had
offered him s2,o0o,000 to star for
them. and that another had promised
$4,000 and twenty-five per cent of
It's profits. Porzi said he had not ac-
cepted either offer. but might start
movie company OF my own"
Says Ifank Lost Nothing by Him.
He repudiated the charge that he
had drawn the Hanover Trust Com
pany TO disaster.
Il don't see how their capital could
be impaired by my operations" he
said. The only money l drew out of
there l put in myself"
Throughout his conversations there
is no iniimation that Ponzi is look
ing forward to prison term-far
from it, TO-DAY. for instance, he
said
This court action gives me plenty
of time 10 check up my liabilities
and assets DIRECTLY. AS soon as that
is done. i will call in all my notes.
The arrest means nothing. 1t was
voluntary. When have shown
enough assets TO cover my debts the
charge of using the mails TO defraud
"a1 evsporate in thin air In a
c11ple of weeks l will paw all my
notes.
More than a hundred notcholdcrs
were in the Exchange Company.s
outer Office this forenoon when n man
emerged from the inner office and an
nounced that by order of the dis
trict attorney" no payments on notes
would be made FOR three or fou.
days" Brightwell said later thac
this announcement was erroneous so
far as mention of the distric. sttor-
ney was concerned, but that the
company had decided to suspend pay
ments temporarily on advice of its
attorney.
we want our money" several OF
them demanded.
There was rush toward the inner
(Continuel on Second Pace1