Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-13


shortly have sufficient evidence at
hand upon which to arrest Ponzi and
to make sure that he could be found
when wanted, 1 have taken the pre-
caution to keep him under surveil-
lance as far as possible. although he
gave no Indication that he would at
tempt to leave this Jurisdiction. How
ever, having his previous record In
view, l felt 1t Il duty to make every
possible effort to prevent his escape"
Earlier in reply to specific inuuir-
les, Inspector MoScby said:
Suspicious Aroused In February ,
Our attention was first calloi to
Ponzfs operations last February
when inquiries began coming into
the office from Investors and pros
tion was Immediately taken. Since
that time we have been working I'm
Europe and elsewhere.
AS a result &c this investigation
we have obtained conclusive evidence
that there has been no abnormal is
sue or redemption of international
reply coupons. while on the other
hand in some countries the use of
prevent this very scheme which no
doubt has reached the ears OF postal
officials in many foreign countries.
There Is no means by which a man
coupons Ponzis claim that he has
made millions in this way is simply
stupendous fraud with nothing upon
which 1t can be based
throughout the postal union for the
past six years would not aggregate
100000. Ponzi could not have ham
died the millions of them that would
have been necessary TO make the for
tune he claimed TO have amassed in
the past few months without the
knowledge or the officials OF the
governments and OF the postal union.
Italy Biocks Redemption.
''Somc countries fearing speculation
or manipulation of the coupons. dis
continued their issuance or redemp-
tion months ago. some OF them par
ticularly Italy, prior to the lime
when Ponzi claims to have started
his business.
at would he foolish for Italy to
redeem coupons at the great differ
would stand to lose the difference
when the time came TO settle ac-
counts.
Soon after our investigation was
started Ponzi was advised by letter
that coupons would not be redeemed
in this country except for Legitimate
postage purposes. and postmasters
throughout the country were In
structed not to redeem them T.nc
best evidence that he did not deal
in coupons in foreign countries IL
the fact that he has never produced
foreign customers or foreign cou-
pons.
The most amazing thing, and the
thing which l am not able to under
stand, is why people invested their
tribute II To his pcrsonality-they in
vested In the man. not the business.
We warned hundreds of people
against him. Many of them needed
the warning. but undoubtedly there
were many who gave him their money
notwithstanding.
Could Not warn publIc.s
we found it difficult to talk with
and believed 90 strongly that he was
doing what he said he was doing.
one of Ponzis attractive features
was the easy manner in which ne
charmed. dazzlcd The people.
He appealed to the gambling
iInr % of IN, The people by the quick &c:
started out he promised so per cen,
IN ninety days. but he paid it in
torty-five days. with the result that
man yreinvested their principal and
"Ponzi did no. use the mails as
openly as is often the case in schemes
which came to the attention OF this
q small way. depending upon rein
vestments from his customers and
upon the word that would be passed
from one person to another.
Did Not Dare TO Advertixe.
Tie did not dare TO advertise in the
newspapers and we did not want to
make II known that we were investi-
eating his business. for the publicity
was just what he needed to attract
attention. When the story OF his op-
erations first got into the newspapers
he welcomed it. for il give. him a
chance to issue statements and get
before the public. 1t was during the
past few weeks, while his business
was being exploited by the newspa-
pers, that he collected the greater
part OF the millions that trusting per-
sons turned over TO him
Ponzi, the inspector said. once was
in an exporting business in n small
way and IL probably was while thus
engaged that he learned OF the use of
International reply coupons. possibly
having received them from abroad for
prepayinS return postage.
The departments investigation. Mr..
Moseby added, had extended to all
sections of the country and through
out Europe and. although he was I'M
willing to discuss evidence that had
been collected. he did not hesitate to
say that dealing in international re-
ply coupons was not responsible for
Ponzi'S millions.
PonZi went to his home at Lexing-
ton tonight and announced he would
make no statement. The house was