Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-11
STATE TAKES OVER
BANK WHERE PONz|
KEPT HIS DEPOSITS
"Frenzied Financier" Admits
He Served a Term in
Montreal Prison.
By the Associated Press.

BY the Associated Press.
BOSTON, August 11.-Charles Ponzi
personally admitted today that he was
the Charles Ponsi who served a term
in the penitentiary in Montreal.
BOSTON, August 11.-Bank Com
missioner Allen today took charge of
the Hanover Trust Company. This is
the institution in which the account
of Charles Ponzi, the fnancier, was
shown recently to have been over
drawn.
Mr. Allen said that his agents had
been examining the bank since last
Saturday morning, and their reports
ness in an unsafe manner, and that
lit would be unsafe and inexpedient
for it to continue. The doors of the
bank were closed at las pm.
An associate of Charles Ponzi, from
the home of the latter in Lexington,
today telephoned the Associated Press
that Ponzi admitted that he was the
Charles Ponsi formerly of Montreal
He added that the spectacular
f1nacier was in conference with his
lawyers and would issue statement
later.
Reports from Montreal circulated
here were to the effect that Ponzi.
under the name of Ponsi, had oper-
ated financial plan promising large
returns in Montreal thirteen years
ago. Attention was called also to the
records Of the St. Vincent de Paul
penitentiary in that city. which were
said to. show that man known as
Charles Ponsi had served brief term
there. Early today Ponzi denied any
knowledge concerning the Montreal
reports. Later he refused himself to
newspaper men.
His house telephone thereafter was
answered by man who claimed to
represent Ponzi. and who said that
something might be given out later in
the day. Subsequently, he stated that
who had been known in Montreal He
added that Ponzi had left his home to
confer with one of his attorneys,
Daniel F. McIsaac, at the latter's Of
flee in Boston. A half-hour later
neither McIsaac nor Ponzi could be
found at the lawyers Office.
Eludes Newspaper Men.
Up to early afternoon Ponzi could
not be located by the newspaper men.
He was variously reported as at one
or the other of the Offices of his sew
| eral attorneys and again as in con-
ference with all his lawyers outside the
city.
Meanwhile statements attributed to
Ponzi. in which he was represented
as having told in detail of his earlier
career, appeared on the streets and
caused considerable excitement among
the downtown crowds in the vicinity
Of the School street Office of the
Securities Exchange Company, of
which Ponzi is the head. 1t was op-
irc rh hot
Ponzi promised so per cent profits on
money loaned him for investment for
forty-five days.
"Ponsf'' Convicted of Forgery.
MONTREAL, August II (by Cana
dian Press).-From records in the
hands of the Montreal police it ap-
| pears that Charles Ponsi was a
| member of the firm of Zrossi & Co..
bankers, this city. which failed in
1908. Zrossi fed the country and was
subsequently extradited from Mexico
City.
| Under the name of Bianco, alias
Charles Ponsi, a man was convicted
of forgery and false pretenses and
| sentenced to three years in the st.
Vincent de Paul penitentiary
Gives Secrets Of Operations.
Ponzi told members of the kiwanis
!, Club last night some of the steps in
| inc pTOCtSS ny WHICH ne CidlHiS "
have amassed his fortune.
Ponzi. making his first appearance
as an after-dinner speaker since he
| became one of the most talked-of men
| in the country, was a luncheon guest
of the club. He was invited some
time ago, before he was compelled to
cease payment in his $50 per cent in
forty-five days" proposition because
of the orders issued by the state bank
commissioner to the Hanover Trust
Company yesterday to pay no more of
Ponzi'S checks.
In opening his remarks Ponzi re-
iterated his claim that he was SOL
| vent and expressed confidence that
this would be substantiated. by the
federal and state investigations now
in progress. and that he would be able
| to resume business in few days.
Hired Small ONCE.
He related how he had hired a small
| Office, used his small capital in va
rious business schemes, and then, with
an international reply coupon always
in front of him on his desk. began to
L u n