New-York tribune., 1920-09-12
100000 Bail
Asked of Two
Il, Sugar Fraud
Four Other Greeks Arraigned
for Alleged Conspiracy
10 Get S1,5OO, 900 by AL.
sering Bills of Lading

Six Greeks arrested Friday by agents
- ths Department Of Justice, and said
=. have swindled New York banks and
.sveral Greek firms out of $3.50, 200
through the agency Of the American
Company Of Commerce and forged bills
~ fading, were arraigned yesterday be-
s.rs Judge William 3. Sheppard in the
Tn,ssd States district court and bail
was fixed.
Assistant United States Attorney
Henry Kelley, who obtained the indict-
r,ent against the men on September 8,
sjieoing conspiracy TO defraud, ap-
nsared before Judge Sheppard to ex-
plsin the nature of the charge. He
asked that heavy bail be imposed.
George Pteriotsis, also known as
1ossph Zakelos, and George Blouzos,
nf6eisls Of the American Company Of
commerce, were held in 100000 bail
each.
$50, 900 Found in Bank
pteriotsis is said to be the brains of
the alleged scheme. Mr.. Kelley said he
had found $4,000 which Pteriotsis had
IN bank here. 1t is expected that the
creditors will lose no time in attacn-
ing this amount.
Agents arrested Pteriotsis Friday as
he landed from the steamship Adriatic.
As soon as his arrest was reported
aoaats arrested Brouzos and four other
Greeks said to be clerks of the com
nany. Their names are Anthony Drit-
am. Thomas Tsomas, John Sakeropol-
ana and Ernest Theodosious.
rJI IL Sa
law student at New York University.
gis father is a high official in the
health departm in Greece. He was
held in $4,000 bail, which was fur
nished.
The other three were held in $1,000
hail each. Later in the day, Theodo-
sious was released when bail was fur
nished.
Il is said that the alleged swindlers
came very near getting all of the
sl5O0,000 which agents in Greece had
placed in banks here as credit for
their dealings with the American Com
pany of Commerce.
Pteriotss and his companions are
said to have started the American
Company of Commerce last October,
with Offices in 79 Wall Street. In
March the company is said to have
besn transferred into the hands Of
dummies. Pteriotsis and the rest
moved to AZ West Forty-second Street
and carried on their work from there.
Alleged Scheme Explained
The scheme. as agents of the Depart
nent Of Justice explain it, is simple.
The American Company Of Commerce
wrote to firms in Greece, it is said,
Offering them sugar, always at figure
below the market price. The Greek
firms, it is alleged, snapped up the
offers and established letters Of credit
here.
Large orders were placed with the
American Compan. of Commerce. Be-
tween May and June eleven ship
ments were made. according to agents
Of the Department of Justice.
The work consisted, according to
agents of the Department of Justice, in
shipping two or three bags Of sugar to
the different foreign firms, and then
altering the bills Of lading to read
'2,200 double bags of fine granulated
sugar" The next proceeding W.: % nEe-
sent the false papers to banks here and
receive $250,00o The bills ranged in
amounts from s23,75o to s4O,75o. The
Greek letters of credit were honored
by the Guaranty Trust Company. the
Mechanics and Metals National Bank