New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-11
Veterans Held
As Defrauders
Of War Buddies
New Britain Attorney and
Aid Prey on Wounded, Is
Charge, and Collect Half
of Disability Insurance
spsosa, Dispatch to ras Tribune

SSSSst<s OSSPO%eCW 60 1f2o Tribune
HARTFORD, Conn.,, July 1o.-Daniel
=. o'Keefe, an attorney of New Britain
and Aloysius Young of the Stanley
Rule. and Level Company Of that citv,
both veterans of the war, were arrested
to-day by Federal detectives on charges
OF participating in a conspiracy whose
object was to railroad" claims through
the disability compensation Office in
Washington at the price of half the
compensation received by each claim
ant.
According to George H.. Cohen
United States Attorney in this district
William Salisbury. chief reviewer Of
dlsaballty insurance claims in Wash.
lngton, was the handspring of the
money-making machine and is beina
neld Tor hearing in Washington
O'Keefe was held in $4,000 bail and
Young In $4,000 for trial in Washing.
ton on charges. of attempting to de.
fraud the War Risk Bureau.
AS said that the plan was merely
IN ITS infancy when discovered and
victims had been ,sought so far only in
Connecticut, although New York CITY
and the states of Maine and Texas
were under consideration for agencies.
1t IS said that at least seven attaches
of the War Risk Bureau, three of them
attorneys, will be implicated.
Salisbury, whose home is in Buffalo.
was a classmate of O'Keefe at George
town University. O'Keefe served over
seas with the Yankee Division and was
gassed and wounded. He is said to
have signed a statement in which he
says that Salisbury forwarded to him
all letters from manned soldiers in
Connecticut who were urging haste in
settling their claims.
1t was Young's job, according to Mr..
Cohen, to play the part of lawyers
runner" and call on each of these i'm
Fortunate claimants. His duty, it is
said, was to introduce them to O'Keefe
and help persuade them to let that at
torney, handle their claims on fifty
fifty" basis. Many of the disabled SOL
diers, it is said, were so desperate that
they readily consented to the scheme.
O'Keefe is said to have gone to
Washington on behalf of his clients
and obtained precedence for their
claims through Salisbury so effective
ly that the checks were generally made
out the following day. After the vet
eran had given up half the money he
received and, ostensibly, was entitled
TO, Salisbury is said to have acted as
paymaster and divided the lawyers
half with O'Keefe and Young.
Young is said to have been employed
at plece-work rate, receiving $50 a
case. O'Keefe is said to have admitted
That the last ten cases he handled net
ted MIN $3.50 each. Veterans from this
pr,J
bury, New Britain and many other
Connecticut cities, are said to have been
among his clients.
It is alleged that Salisbury wanted
O'Keefe to extend his business to New
York City and establish branches in
Maine and Texas, but that O'Keefe was
satisfied to have the Connecticut tights
alone.
A former soldier living in New
Haven, who is said to 'have been ap-
preached by Young in O'Keefe's behalf.
started the investigation of the
scheme. The veteran wrote to Wash
ingtcn. saying that he didn't think it
was right for an ex-soldier, disabled IN
up half of the sum to which he was
entitled in order to get prompt at.en-
ton from his government.
Ordinarily his letter would have
gone to- Salisbury's desk, but it hap
pened that 1t Was delivered instead to
the Treasury Department and was
opened there, with the result that Sc
cret Service operatives were assign 4
to Investigate the complaint and agents
OF the Department Of Justice were
called in. W. H. Moran, Of the Bureau
Of Criminal Investigation Of the De-
partment Of Justice, had charge of the
AS soon az O'Keefe was placed under
arrest he sent a message to his mother
In New Britain and it is expected that
she will ff1rniah hail fn. h;no - :l4