New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-14
Officials of Rival Concern
Accused of Larceny as
Erenzicd Note Holders
Mob Headquarters
So Fraud Counts
Against ''Wizard''
Prisoners Sent TO Jail
ON Failure to Get Bail
of $4,000 Required

BOSTON, Aug. 13.-Four men who
have accepted millions of dollars from
New England investors in the last few
months, on promises of payment of
fabulous interest were behind the
bars tonight. Charles Ponzi, whose
spectacular financial dealings have
made his name known the country
over, was surrendered to-day by the
man who furnished $4,000 bonds for
his release after his arrest by the Fed
eral authorities yesterday. Unable to
find another bondsman, Ponzi was
taken to the Middlesex County Jail at
East Cambridge.
Three officers of the Old Colony For
eign Exchange Company were arrested,
taken into the Municipal Court and
held IN $4,000 bonds each on a tech
meal charge of larceny of $500 from
persons unknown. In default of bonds
they spent the night in the Charles
Street Jail. They are Charles NJ.
Brlghtwell, president and treasurer Of
the concern; Raymond Meyers, Office
manager, and Fred Movers, sales agent.
All three pleaded not guilty.
That the activities of this companv
might have rivaled in extent the deal
ings of Ponzi's Securities Exchange
Company was intimated by Albert
Hurwitz, Assistant District ATTORNEY
OF Suffolk County, when he told the
court that the amount involved in its
/ transactions probably would be shown
TO be hundreds of thousands of dol
lars. 1t was upon this representation
that he asked that the bonds be set
at high figure. The three men will be
given hearing on August "a.
Samuel Zorn, said to have been en-
ployed by the company as an agent
was arrested at his home in the Dor
chestcd district tonight on the same
charge as the three officers of the con-
Germ No bail was fixed and he was
Locked IN for the night.
further criminal proceedings were
taken against Ponzi to-day. In the
municipal court Il blanket warrant was
issued charging him with larceny in
nfty-three counts, totaling SEA 600.
Ponce inspectors were at the Federal
building prepared to rearrcst Ponzi
II the Federal authorities released
m AGAIN on bail. but as he was taken
to Jail the municipal court charges
against him were held in abeyancc.
Before Ponzi came into the city from
his home in Lexington he was serene
and smiling, and talked calmly with
newsparcr men. When he was brought
/ by his bondsman to the Federal Build
ing and learned that he must 90 to
Jail his smile vanished Just before he
was taken to East Cambridge to be
| locked up he was permitted to talk over
the telephone with his wife for ten
minutes
More Bankruptcy Proceedings
Further bankruptcy proceedings in
pon2i were mentioned were brough.
IN the Federal court. The three pei
TONERS were he 'dcrs CT Ponzi's notes
Tor a total of So CPS. They asked that
Ponzi and John S. Dondero, of Medrord
and GuSlielr4o Bertollotti, OF Parma
italy named as his partners in The
Securities Exchange Company, lie ad.
judged bankrupt
Kumors were current tonight that
further developments bearing on "cet-
ch,quick" schemes might be expected
IN the near future. There was no him
as to the nature of these DEVELOPMENTS
Joseph c. Allen, State Bank Commits
sloner, said that he knew of no founda
tor for reports that Ponzi's crash
might involve any banking institutions
except the Hanover Trust Company
which was closed by the commiss ionel
earlier in the week. Ponzi was a d.
rector and shareholder in this bank
through which he checked out million.
of dollars.
Mr.. Allen made it known to-day il
connection with the closing of tn,
Hanover Trust Company that he hat
caused the state seal to be placedN OF
al! the safe deposit boxes in that in
stitution used by Ponzi or by officers
OF employees Of the bank. He sait
this was done as a precaution agains
the possible removal Of securities O.
other valuables pending the settlement
Of the banks affairs.
Other renters Of safe deposit boxe
in this bank will be permitted to with
draw anything they please unless the
are debtors of the bank In that cas-
they will be compelled to leave i
their boxes any valuables equal i
amount to their indebtedness.
Fred ]. Burrell. State Treasurer, re
fused to make any statement regardin
Continued on page 81