The county record. [volume] (Kingstree, S.C.) 1885-1975, 1920-08-19
PONZI NOW IN JAIL
BROKE" HE SAYS
Continued from Page 1.)

of the county, federal and state au-
thorities. Attorney General Allen is
rounding up all of Ponzi's agents and
some of the big investors to deter
mine just what civil or criminal ac-
tions can be taken against them. The
names of more than 100 are now in
the possession of the Attorney Gen,
eral. Mr.. Allen has learned from
MANY of the creditors, who swarm
daily into his office to leave their
certificates, that there has been the
most fragrant instances of misrepre-
sentation. One woman was told Pom
ri had earned more than $2,0US,00O in
two days, and on the strength Of this
assertion she mortgaged her home to
make an investment.
Legal action to compel all Ponzi
noteholders to refund nearly $4,000
900 paid them during the last four
months was taken in the bankruptcy
court by counsel acting for the Ponzi
Creditors Protection.
This means that all noteholders
who have cashed in, even if they sold
notes to spectators, are to be COM
PEELED to return thier money, VIII.
will be merged with other assets.
Major James F. Winston presented
to Attorney General Allen a check
for $1OO, representing the $50 per
cent interest in forty-five days" on a
matured note he had received :
Charles Ponzi as a receipt for his in
vestment of $500. Major Winston
was the first to make a return Of the
interest money received from the
Ponzi scheme.
Ponzi promissory paper began 70
come from its reposing places IN a
rush today for presentation at the
State House to Attorney General j.
Weston Aliens tabulatols.
once of hopeful value, it IS estimated,
More than S6,OOO,OO0 Of what was
remained concealed from official view
until the crash came, held tenacious
ly in the hands of confiding public
far and wide throughout New Eng
land, New Jersey and New York.
The collapse of all of Ponz's pre-
tensions, the disclosure that he was
overwhelmingly insolvent-that per-
haps his "get-rich" lure was man.
moth swindle-swept away all the re-
manning faith and released these big
reserves of notes to confirm at least
the growing conviction that his busi-
ness was bubble.
How great the total of these un'
paid and long retained notes will be
is not yet gauged with any certainty.
The final tabulation may show more
than S5,OO0,OO0 in Ponzi pledges to be
met with nothing more tangible than
thin air.
The warrants were issued for the
arrests of the Old Colony Company
officials for the larceny Of $500 from
an unknwon person. Assistant At
,torney General Hurwitz secured the
warrants and appeared when the first
three were arranged before Judge
Bennett.
81 have evidence" said Hurwitz in
asking that bail be fixed at $4,000,
an unprecedented amount where so
small a theft is charged, "that Bright
well attempted to leave the city to-
day."
He added that the amount actually
involved in the case "runs into the
hundreds of thousands of dollars"
The prisoners, who were without
counsel, made no opposition to the
request and went to Jail in default OF
bail.
Brightwell insisted to Inspectors
Waite and Laughlin, who arrested
him, that his organization is legitl-
mate venture.
eve have dealt in foreign eX-
change" said he, "on which We have
been paying large rates of interest;
we proposed later to reduce that. The,
business is legitimate and everyone
knows that there is big money in for
eign trade and foreign exchange"
David H. Coakley, Ponzi's chief
counsel, says he has as yet given no
thought as to the financier's defense,
but a member of Ponzi's family said
today that insanity would be pleaded
if the case ever reached criminal
trial.
The basis for defense of insanity
by Ponzi is largely his declaration to
reporters and others during the time
he has been under fire, as we'll as his