The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-08-11
BOSTON BANK
CLOSED DUE To
PONz| DEALS
Financier Admits He
Served Term in the
Penitentiary

~ THg AssoeiATGv sHGAa
BOSTON, Mass. Aug. IL Sensation
followed sensation In the PohLi case
today. Charles Ponzi. who recently
Jumped into notoricty as u speculator.
admitted he vas the Charles Poncl
who served terms of Imprisonment In
Montreal and Atlanta some years
ngo.
At the moment he was making
formal confession OF his past, the
Hanover Trust company In which
Ponzi was q director was closed by
bank commissioner Joseph G. Alle.:
who declared that reports OF his
agents indicated the bank was doing
business In an unsafe manner. punzl
resigned from the directorate this
afternoon.
The admission Of l'onzi and the
closing OF the trust company were
quickly associated In the minds OF
hundreds who had given their money
to POnzi for investment and who
had been waiting anxiOusly for de-
ve,opmcnts. a crowd gathered In
front Of the Hanover Trust company
Ponzi, who organized the Sccurl-
ties Exchange company and took IN
millions for investment from thous-
ands OF clionts said in statement
AbhuN AIhN AbNh Alt hlbfllf Ahl
another person In Montreal. He also
insisted he was still solvent and could
nay all notes now outstanding against
him.
william s. McNary. treasurer Of the
Hanover Tr'i. company declared the
bank was absolutely sound and SOL
Won't" adding hat the institution had
the largest amount OF liquid assets
Of any bank In Boston.
Ponzis Statement
In his formal statement Ponzi said (:
The statement | am about TO make
should have been made before, In
Wow OF the fact OF the notoricty of
the press. Several years ago COM
mittcd II sin. II | made "A mistake
and paid for II, | had every reason
TO believe that society owed me an
other chance.
II am not the first one to have
committed "a sin When I see others
who wcra under the same situation
years ago and now today occupy
prominent positions do not see why
] should become the object of pcrse-
cution on the part OF the authorities,
press and the public.
Charles w. Morse at one time IL
prominent banker, was also convicted
In United States courts and sentenced
to fifteen years In Atlanta, Ga,
hHbM hNNNNNf was Atlilt WIN Hlfls
He wns released after serving u very
small part Of his sentence. lie has
been now occupying for years po-
sitlon still greater than before.
II do not mean In any way Ia i'm
, ply that he IL not deserving respect
OF the public, but I merely ask. II
he IL deserving why shouldn't be?
/ Convicted In Canada
Montreal records show that a man
OF my description was convicted OF
forgery In 1908 and sentenced tnr
three years to st. Vincent De Paul
and served about twenty months.
II feel that II is very important
for the people to know, that although
am the man who was convicted
ana sentenced for that crime. | am not
the man who perpetrated the crime.
| What In concurrlng today to me hap
pencd then In Montreal. the only diff
ference being, the object Of pcrscou-
| ton was my employer.
"a man apparently friendly to him
/ suggested that he leave Canada, tho
/ object OF the man being to appro-
| prlate during his absence all the as
/ sets left 10y the fugitive banker. In
| order TO be sure he wouldn't come
back to demand an accounting, ho
compelled him to forge certain in
struments which he was going to hold
] Nh u tluU uNtE lllN nftlu wis pres
ont at the transaction.
when L. developed later that the
man could not gain possession Of tho
assets, revenge or other motives
! prompted him To demand the return
! OF my employer under cXtradltion
! proceedings on charge OF forgery
from Mexico to Montreal.
~ felt indignant as at other man
would feel under the circumstances
ana | decided that would save my
employer regardless OF cost or con.
sequences. When he was brought "a
Montreal l cxonerated him by assum.
ing all the blame.
"The alluslon made by me To re.
| porters that I wont TO Canada to car.
/ ry on an investigation for the Ital'
ian government n immaterial. al
though could explain why : assum-
cd a name,
MY next unfortunate Incident did
not come Of my own volition. hui
| happened as a consequence Of my
first mistake. Released from prison
without Il friend, and without dol,
lar, J tried 10 earn a living the besl
7 could. Within ten days was asked
10 escort five Italians into the Upitet
States. ! did not smuggle them In
crossed the border openly and wai
placed Immediately under arrest.
II didn't dodge the consequences
and pleaded guilt l expected len
iency. didn't resist conviction
and yet | was sentenced to two year,
In federal prison In ATLANTA, Ga. anC
my sentence was a maximum.
AS | said before s'nned and pRlt
for Il. When the time came | mad'
clean breast OF II. IL this enough p
lPoNCI SERVED TWO
YEARS At ArL.ANT'
ATLANTA. Ga. Aug. i1.-lRecordi
that a Charles Ponci served tive
year sentence In that institution from
1910 TO 1919. He was convicted a
Buffalo, ~ j., Of smuggling alien
into this country.