Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-13
PONz| ARRESTED,
GET-R|CH- H-QU|CK
BUBBLE BURSTS
Forty Thousand Investors
Intrusted Over $15,000,-
900 to Him.
HELD ON BOTH FEDERAL
AND STATE WARRANTS
Bond Is Furnished and Alleged
Wizard Is Freed - Admits
He Can't Pay Debts.
Iny Associated Press.l


BOSTON. August l2-Some 10000
investors intrusted a total OF various
ly estimated at from si5,OC0,ooo TO
$50. 100000 TO Charles Ponzi In a
money making scheme which postal
officials today declared to be abso-
lutely impossible of fulhllmen:.
Ponzi surrendered to the Fedora!
authorities today explaining that he
was unable to meet his obligations
| because Df the closing yesterday Of
| the Hanover Trust Company, wherc
the bulk OF his funds was dcpccited
| He was arrested charged with nav
ing used the mails 70 defraua. ar
raigned and held in bonds of $4,000
for a hearing August 10. Morris
Rudnick. real estate dealer. FUR
nished the securities.
Meantime a warrant charging the
Italian with larceny had been OBJ
taincd by the State police, and upon
leaving the Federal building. Ponzi
was rearrcsted and held by the City
Court In $4,000 bail for appearance
i August 30. Rudnick again went OF
Ponzi's bonds.
L Warrant ChnrEes Larceny.
Developments followed thick ant
fast today. AS Ponzi was being ar.
raigned before United States Com
missioner Hays. Edwin l.. Pride. whs
is examining the books of the Sc
curities Exchange Company for tn,
| fnS N n
already been shown that Ponzi owe,
s7,0OO.0oO. State Attorney-Gencra
Allen. who is conducting a, separat
= investigation. made known his opin
ion that Ponzi's liabilities would ru
;. into the millions.
c Many Anxious Inquiries.
@ State Bank Examiner Joseph
G Allen issued n statement declarin
Q the capital of the Hanover Trus
Company. OF which Ponzi, until yes
r terday was a director. was seriouSi
j impaired and probably wiped gu
: State Treasurer Burrell attacked th
e bank commissioner for not havin
r. given him opportunity to WITHDRAW
e State funds before the Hanover wa
Il closed. and Governor Coolidge dc
: manded that Burrell make know
IS how much of the States money ha
Y been tied up by the closing OF tr
trust company. Later Burreil notiis
the Governor that the State depos
vas $4,000.
Ponzi's field appears to have II
d cluded New England and New Jerse
The line that formed daily In
Alley at the rear of Ponzi's Scho
Street Office, appears to have BET
far from representative OF his ellen.
This was made UP largely OF foreiEl
ers, who were more interested
getting their mony than in protec
=, ing their regulations as wise spe
ulators.
=. Anxious inquiries at the newspap
-. Offices and feverish conversations
downtown restaurants indicated TIL
,o the proprietors of small business'
~, professional men and women. cler
al and stenographers by tho thousar
accepted the bait of $50 per cent pro
In in forty-fve days" Agents work.
hc in offices and factories interest
st large numbers. particularly amo
ir, the Italians.
on The mystery OF PonZfs metho
added to the attractivencss of
promises. II Is said in many cas-
the possibilities of profitably c
changing American dollars for Frcn
francs and francs for Italian lire. a
the latter for something else seem