The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-08-27
CREDITORS LOSE 0SE
IN pONZI FIASCO
LESS THAN FIFTY CENTS on
DOLLAR INDICATED.
Lie Passes Several Times at Session
Of Receiver for Boston Com
panv.

OF NSSSlVSr Tor OCStCN SCii-
pany.
Boston, Aug. PA payment Of
less than so cents on the dollar 10
the creditors of Charles Ponzi 5
"quick rich' scheme, if official est
mates of his liabilities are correct,
was indicated by his statement CT as
sets at the receivers hearing today.
Assuring the federal receivers thai he
had disclosed all he knew Po1Zi tcld
of assets which Robert G. Dodge,
counsel for the receivers, declared
were mot worth anywhere near S3:--
100000" The official estimate Of
his liabilities, made after an audit
of his accounts, stands at S ,0G0,Ooo.
Ponzi said he thought this was IN er-
ror. He claimed he was solvent and
had nearly S4,000,0O0 or assets 70
meet his liabilities, which ne set at
S3,O00,000.
The hearing was stormA at times.
Daniel H. Coakley, counsel for fonzl,
surrendered to the receivers, to assist
in meeting creditors claims, checks
for $4,000 each, which had been
given to him and to Daniel '. Nc
Isaac, associate counsel, as retain
ing fees. He said that when ne TOOK
the money he thought Ponzl was a
millionaire, but that now he wanted
everything to go to the creditors. he
called upon the receivers and their
counsel to join with him in working
-,;+ho,,t foo h,,t his challenge was
not accepted.
Edward A. Thursday, one OF the
receivers, remarked:
eff you thought this man had ST.
600 900 left, do you suppose anybody
thinks you would have got only 49,
0OO?"
"You are a liar when you suggest
anything like that" exclaimed MI.
Coakley, jumping to his feet. The lie
was passed three times without re-
tort by the RECEIVER except "IhahA
Ponzi told of loans of $4,000 each
to Hency Chmielinski, president, and
William S. McNary, treasurers Of the
Hanover. Trust company, which was
Ponzi's principal depository and
which went to the wall with his col
lapse. His announcement that he
had loaned $4,000 to Daniel 7.
Desmond, treasurer Of the Lawrence
Trust company of Lawrence, was fol-
lowed by Desmond's resignation later
in the day. Ponzi said he had made
loans of several hundred dollars to
the chief of police of Sharon and to
John A. Ray lieutenant of police OF
Somerville.
Showing Ponziis stubs for six
checks of 100000 each, Mr.. Dodge
asked MIN who obtained the money
and for what purpose. Ponzs-ep!ied
that he had withdrawn the money
himself to prevent attachments and
had deposited It later in other banks,
a little at time. These checks con-
stitute the only evidence SO far dis
closed of the hearings OF Withdrawals
by Ponzi personally Of more than
few thousand d2llars.
The days when he was paying cut
thousands of dollars day az his Of
fee and boasting that he had $l3,-
100000 in cash to meet $3,000,0 ,0o0
in claims were recalled by another
check stub. 1t bore the words,
"S4,5OO against $1,500.' Ponzl
smilingly explained to the receivers
that it represented his side o. bet
the stakes of which were placed with
Treasurer McNary that rs days .ater
he would still be paying off his notes.
Ponzi smiled again when ne an
swered in the negative q question
whether he had any stock Of lcterGa-
tional postal coupons which he had
told investors formed the basis o. his
new found road to riches. On the
ground that it might incrininate him,
he refused to say whether he had re
ceived any income from European
sources or whether he had any in
come except that from investors who
bought his notes.
Miss Lucy Nell, IS years old. VINO,
since last April had been Ponzi's Of
flee manager, succeeded him on the
stand. She said she knew Of no
source of income for PoEzi except
what he received from investors.
When asked if she had ever seen in
the Office any international reply
coupons, she said there had been cone
or two there which we used as
samples for investors. - She had
transferred money abroad only once
or twice. she testified, and she did not
know what the drafts were for.
The hearings were postponed IN
definitely, to allow Ponzi to 90 over
his papers for further information OF
his assets and to enable the receivers
to collect these he has disclosed.
Busv in Name and Indeed