The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-23
GRAND JURY CALLS
GEM ROBBERY FAKE
Indicts Jeweller Schonfeld,
Who Said He Lost 100000,
on Perjury Charge.

Samuel Schonfeld, jewel merchant
said he had been robbed OF 100000
worth of unset gems by two strangers
who threw pepper into his eyes as he
stopped before his open safe, was in
dicted yesterday by the Federal Grand
Jury on charges OF perjury and conceal
ment Of assets.
The Jury believes that Schonfeld was
not robbed at all but concocted the
whole startling story in order to make
his creditors think ne was ruined man,
On June 9, four days after the supposed
theft, Schonfeld went into involuntary
bankruptcy. The stories that he and
missioners were placed before the Grand
Jury. together with other evidence OBJ
tanned by Federal agents. On the result
ing indictments Schonfeld was arraigned
yesterday before Judge Rufus E Foster
in tho United Staes District Court and
held for trial In $4,000 bail. which he
gave.
ScnOntelQ was III DuSllleSS as tllS
Schonfeld Manufacturing Company on
the ninth floor of the Cockcroft Build
ing, Nassau and John streets. On the
morning OF June he sent his nephew,
Joseph Schonfeld, out TO have three dia-
monds set in lavalliere. While Joe was
gone the uncle set up loud crying. To
two of his employees who rushed into
the salesroom from the workroonl, and
to the police and reporters who arrived
later, the jeweler gave narrative full
of detail.
lie described infinitely two men, a
short one and q tall one. who had called
to buy diamonds for the lavalliere.: He
told how they made their selection, how
he sent his nephew out to have the set
ting done and described the positions
of the men as they sat waiting for the
completion Of the purchase. He said
that one OF the strangers spoke OF pos
sibly buying another diamond and
caused him TO reopen the office safe and
take out again the leather wallet con-
tanning the treasures. Then. said Schon-
field, one OF the men dashed pepper into
his face, binding him, while the other
beat him and kicked him in the stom-
ach, after which they ran out of the
place with the wallet
Right after the supposed robbery
Schonfelds creditors surrounded him.
Some of them filed the bankruptcy petit
tion against him on June 9, and on June
% he was adjudicated n bankrupt. In
the bankruptcy proceedings before Com
missioner Gilchrist and Referee Seamon
Miller, Schonfeld astonished the exami-
ners by the completeness OF his recollec-
ton of the appearance of the two rob
bers. He even recalled that each of
them wore what he called half shoes"
1t developed that he carried a burglary
insurance of $4,000. The trustee in
bankruptcy, Arthur y. Dalzlel. was OF
course anxious TO get this money for
the benefit of the creditors in case there
had really been robbery.
Schonfeld, his nephew and several
merchants with whom Schonfeld< did
business, were questioned exhaustively
by Oscar A. Lewis, attorney for the trus-
tee. Upon apparent conflict between the
testimony obtained by Mr.. Lewis and that
offered before the Grand Jury. where
Louis A. Schwartz. Assistant United
States Attorney, managed the examina-
ton, the indictment is based.
The indictment has two counts. In the
count which charges perjury 1t is said
that no diamonds whatever were stolen
from Schonfeld and that he knew his
story to be false.