Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-12
ONz|ADM|TS HE IS
AFORMER CONVICT;
H|SBANK IS CLOSED
Hanover Trust Company
Ordered to Suspend by
Banking Commissioner.
WIZARD OF FINANCE TELLS
STORY OF TWO CONVICTIONS
Served Term in Montreal for
Forgery and in Atlanta for
Smuggling in Aliens.

BOSTON. August l.-Charlcs Pom
ri. who has handled millions OF dol
lars OF other peoples money in the
last few months, admitted in a
formal statement today that he WAS
former convict. While he was max
ing this statement the Hanover Trust
Company. In which Ponzi was a di-
rector and n shareholder. and through
which he had done n large checxinE
business, was closed By order OF
Bank Commissioner Joseph G. Alien.
PonZi at the same time announced hts
resignation from the banks dircc-
toratc.
Commissioner Allen said he had
taken action because his examiners
had found that the bank had made
loans which were excessive and be
yond the legal limit" and many
loans that are either bad or are OF
very doubtful value" He expressed
the fear that the banks capital had
been impaired
Says PonzI Does Not Owe Hank.
The Executive Committee of the
Hanover Trust Company in Il state
mcnt late today said the committee
believe there were few poor loans on
the banks books, that there was no
reason to believe that the bank would
not continue TO meet it's obligations
and that II had Il cash reserve or
three times the amount that the law
requires. William S. McNary, treas
urer of the bank. said that POM! did
not owe the bank n cent, that any
bank in the country would have been
& had OF his account and that Ponzi
had paid ou, f6,O00.oOO through the
bank.
Ponzi's statement followed the pub
!ication in morning newspapers OF
stories Of the career OF Charles
! i.Ponsi"tiIt7 Montreal. Confronted wita
these stories. Ponzi conferred with
his attorneys and then gave to nc -
paper men lengthy statement In
which he admitted that he and Pom
ST. were the same man, that he had
served twenty months in prison in
Montreal for forgery, and that sub.
scquently he had served two years IN
the Federal pcnitentiary At atlanta.
Ga. for smuggling Italians int this
country.
Makes Three Statements.
Ponzi made three statements to
newspaper men lOudS. IN All he Ia
sisted that while he confessed 10 fo-.
gerry in Montreal he was innocent and
made the confession and served his
term in the penitentiary 10 save the
man for whom he worked.
Calmly Ponzi dictated the statemt nt
of his Imprisonment in Canada, which
he said occurred nearly thirteen years
ago.
This statement should have been
made before" he said. II make it
now because OF what appeared in the
press. However. felt that my past
had been buried or that l would he
allowed to enjoy the present when
lived an honest life.
Several years ago / committed a
gin. II l made mistake tn-n
have suffered for 1t. hal avery
reason 10 he;icve that society owed
me another chance
.'In Montreal, L was convicted of
forgery in 1908 and sentenced TO
three yeas in the penitentiary OF
ST. Vincent de Paul and served
twenty months. But l didn't perpc-
trate that crime. What is occurring
TO me happened then in Montreal.
Did Time TO Save Employer.
THE only difference is that then
my employer was being prosecut Cd
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