The county record. [volume] (Kingstree, S.C.) 1885-1975, 1920-08-19
PONzI NOW IN JAIL
BROKE, HE SAYS
POLITICIANS AND POLICE Of
FICIALS IN VOLVED BY NEW
REVELATIONS.

1l0anc1er In Ine CaSt SoaDAAuSe J"'
four officers of rival get-rich-quick
concern locked up at headquarters,
warrants out for others; one banking
institution closed and others reported
shaky, Boston is stirred today by
hints of further revelations involving
powerful political and official inter
ests in the scandal.
Bank Commissioner Allen closed
the Hanover Trust Company, not on
account of Ponzi's connection with IT,
he declares, but because inveshga-
tion due to the Ponzi case disclosed
its capital "badly impaired if not
wiped out" by loans which he re-
earded as insecure. These loans, it
is said, were made largely to politi-
clans, though Mr.. Allen refuses to
say who they are.
Ponzi, according to his statements
to Daniel d. Coakley, chief Of the
battery of lawyers who are defend
ing him, is broke, the $5,0OO,0OO ne
had three weeks ago having been paid
out to investors and the remaining
assets, including the $1,5O0,0o0 Ger
tificate of deposit in the Hanover
Trust Company, being either in the
control of others, or in the hands OF
:. hanks that dare not, in the face of
the bankruptcy proceedings against
him, allow him the use of a dollar.
fsPonzi told me-" said Mr.. Coakley,
rfhat he has paid out or has lost con-
troll Of all his assets except the ma
chine he uses, his clothes and his
home. He has, apparently, every
thing the man of millions has ex-
cent cash. He also insists to me in
the face of the proofs Of the Govern
. ment authorities that he owes only
$500, 900, although the audit OF his
hooks show ten times that amount
due"
Ponzi spent last night in Jail,
federal prisoner, after having been
surrendered by his bondsman.
While he was being turned over to
.he United States Marshal, the heads
of the Old Colony Foreign Exchange
Company, which is affiliated W
Ponzi, were arrested on warrants
sworn out by Attorney General Allen
of Massachusetts,, charging larceny
and were held in $4,000 bail each.
They were not able to furnish bail
and are confined in cells at police
headquarters and charged with lar
ceny.
Late at night they were joined by
q fourth prisoner, Samuel Zorn.
Earlier in the afternoon Brightweil
nsrrowly escaped a beating by mob
which had collected in his office de-
,nanding their notes be paid at once.
He told them he would not pay until
maturity, six months hence. Several
made a lunge at him and he had to
be rescued by the police.
Brightwell's arrest followed admis-
sions made to two reporters that his
company could not meet its oblga-
tions because it had not yet earned
any money sent to Europe. When At
torney General Allen was informed OF
this admission he ordered the war
rants drawn.
The chief organizers of the Old
Colony Foreign Exchange Company
were Ponzi's former ieutenants, who
are held without bail as material
witnesses. One of them is supposed
to have proposed buying Ponzi's ven
ture for s10,000,O00.
Just as Ponzi surrendered himself
at the Marshal's office two policemen
with forty warrants from Attorney
General Aliens office came to arrest
him should he succeed in getting new
bail they watched the little prisoner
until S o'clock, when the United
States Commissioner sand he must go
/, to Jail. The little wizard" was tax
en- in a taxi to the East Cambridge
1 jail, in Miidlesex county, just across
y the Charles Ri7er. When he arrived
Vat the little red brick Jail he hoped
quickly out of the cab and ran past
photographers who sought to snap
him. Once inside he greeted them
through the Windows as he was be-
ing entered upon the book.
4 The sheriff Put Ponzi IN cell IL
4 since it was Friday the 18th. A num-
4 ber of Ponzi keach: 'en followed him
and ordered supper from nearby
lunchroom. The order included
1. pipe and tobacco, because the sheriff
would not permit cigarettes. Z
The little wizard was Stripped
. 7.iss, -. a., ,.acrnlaSiop ehoUpr hath.