The Washington times., 1920-07-31
ITALY PROBING
PONz| WEALTH
Get-Rich- Quick Promoter Will
Have His Methods Examined
BY Embassy.

BOSTON, July 31.-Local officials
were advised today that agents OF
the Italian embassy at Washington
have taken a hand in the investiga-
ton OF the activities of Charles
Ponzi. who claims to have made $20,-
100000 for himself and his investors
by manipulating the international re-
ply coupons of Italy and other Euro
pean countries.
Embassy officials are said TO be as
much in the dark as American au-
thorities concerning the young money
wizards scheme.
STATE PLANS AUDIT.
Attorney General Allen rtsted this
afternoon that he will Immediately
make an audit of the books Of Charles
Ponzi. "get-rich-quick" financier. The
work will include operations of Ponzi
not only In Boston, but in Lawrence.
birmingham. New Bedford, Fall
River. and ip other communities.
This action follows request for a
State investigation by Governor
Coolidge. District Attorney PeIietter
agreed to have the state take charge
OF the audit, the resuRsNto be or Joint
use to the attorney general and the
district attorney.
Connecticut, New Jersey. New
Hampshire, and Maine authorities
may be asked to act to close Ponzfs
mated he has in all about thirty
branches.
Declaring he had been siandered in
the columns of local financial paper
Ponzi today said he had instructed
his attorney to sue the proprietor
OF the publication for $4,000, 900.
Ponzi hinted that there may be other
libel suits filed.
ALL SEEMS LEGAL.
Spectators who have haunted Pi
alley offering to take over Ponzi So
curities exchange certificates at sac
rifice prices were disturbed today by
the report that some of those certifi-
Gates have been counterfeited and
that sharpers hope to unload the fake
paper There can be no unloading
of the counterfeits on Ponzi because
no certificate is paid by the young
fnancier until it's history has been
certified.
Upon arriving from his Lexington
home by motor car today, Panzi found
the auditor from the district attor-
ney's office still at work on books. Of
ficials agree, however, that thus far
the auditor has been unable to un-
earth anything illegal
A line of about fifty persons waited
at the Pi alley office today and there
was little delay in paying them.
MAY ACCEPT OFFER.
81 want my position clearly under
stood" said Ponzi. 81 do not chal-
lenge or defy the State or Govern
ment officials. have volunteered to
assist in any examination of my
books and will render any co-opers-
tion possible in assisting in obtaining
speedy results"
Does that mean, Mr. Ponzi, that
you are prepared to divulge your
methods of doing business?" he was
asked.
TT means that what propose TO
show Is that my assets are in excess
of my outstanding liabilities"
Ponzi issued the following state
ment today:
"As far as l can see, | will reopen
business and resume my operations.
l might accept an offer, made yester-
day. of S10,00O,000 from New York
concern to turn over my interests to
them. 1t is very large concern with
extensive connections in this country
and abroad.
IAN interview with a New. York
banker in regard to this offer was
what prompted me yesterday to dodge
my friends, the reporters"
When asked IL he was still of the
same mind in regard to starting
bank which would pay so per cent of
the profts to the depositors, Mr..
Ponzi said: There is no doubt about
it,
Ponzi paid out 81, ,450, 900 to deposit
tors In three days this week, accord
ing to his own figures. On Tuesday
he paid out $3.50, 900: Wednesday,
$500, 900: Thursday, $4,000 and to-
day expected to pay less than 5000. 000
Clarence w. Barron, of the Boston
News Bureau, said today: The very
fact that Ponzi claims to have first
sl0,000,00 now s2t,000.000 of per-
sonal wealth, and his exhibit of
81 100000 on deposit in one trust
company. with declarations that he
has many millions more In this coun-
try, Is absolute proof that the 200
per cent interest he has promised the
depositors with his concern does not
come wholly from international reply
coupons.