The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1921-09-01
HUGE FRAUD
SCHEME UNEARTHED
FEDERAL AGENTS SOLVE GIGAN-
TIC SWINDLE.
Millions Involved.
Banks, Bond Houses, Brokers and
Wealthy Men Victims OF
Clever Band.

OF trust and forged certlncates or de-
posit have been flung on the markets
of the country, federal agents declare
after investigation of band alleged
to have been headed by Charles W.
French and John F. Worthington,
says recent dispatch.
Banks, bond houses, investment Sc
curity brokers and wealthy business
men from coast to coast were de-
clared to have, been the victims or
dupes of one of the most gigantic
swindles ever unearthed by federal
agents.
Six million dollars worth Of stolen
bonds, nearly s3,000,000 in worthless
notes and hundreds of thousands Of
dollars worth of trust deeds and
forged certificates of deposit have
been traced by department of justice
agents, it was said.
The revelations resulted from a
confession accredited to AlTa W.
Harshman who was declared to have
been a private secretary to French
and who surrendered recently. He was
alleged to have told of a deed ne
gotiated by French for the purchase
of bank in the middle west that in
volved the exchange of 100000.
How Thew Worked 1t.
A Washington, D. c., man, accord
ing to Harshman, was to obtain GER
tilted checks for s5O0,o00 there.
These checks, he said, we're to be pre-
sented to the bank owners and when
the band gained control of the estap-
lishment, they were to cash all GER
tifcates of deposit the bank owned.
The money he said, would then be
forwarded 20 the WASHINGTON man
who would deposit it before the certi-
fed checks on the original transac-
ton were cleared and returned. Many
other similar deeds were also de-
scribed.
In another case, it was asserted, a
large amount of stolen securities
were placed with small country
bank in return for certificate OF
deposit. The deposit slip, it was said,
was cashed, and the bank left hold
ing the securities which would be
identified and reclaimed when it tried
to realize on them.
Among names of the firms alleged
to have been signed to notes used
by the bank were:
Curtis Publishing Company, Akron,
Ohio, $4,000; MacKay Truck Com
pany, Akron, $4,000; Porcupine
Mountain Lumber Company, Cleve-
lond, $4,000; Portage Market, Ak
ron, $4,000; Heninger Plumbing
Supply Company, Akron, s25, 900;
Schwartzer Wrecking Company, Day
ton, Ohio; 100000; Midwest Auto
mobile Sales Company, Dayton, $780,
600; Dayton Financing Company,
Dayton, 100000; American Rubber
Company, Chicago, $4,000; H. NJ.
Strong Metal Products Company,
Cleveland, $4,000; Cleveland Home
Manufacturing Company, $4,000;
George B. Wickens, Lorraine, Ohio,
100000 and the Portage Packing
Company, Akron, $4,000.
In addition about 100000 in notes
supposed to have been signed by the
American Rubber Company have not
been found. The total notes known
to have been issued was put at ST.
100000 by federal officials.
1t was also revealed that the band
was operating in Kansas City. Ac-
cording to John V. Clinnin, acting
district attorney, all of the notes is
sued by the band were disposed of
by the securities company of Kansas
City.
According to the alleged confession
made by Harshman, the band made
considerable money disposing of real
state mortgages. Another deal said
to have been made in Milwaukee by
the band is being investigated by
government agents. 1t was declared
to have netted the swindlers $780,
900. It was said that A. z. Strelzin,
who was arrested in Milwau-
kee, will be questioned regarding
this tranaction.
Worthington was arresteW some
weeks ago and is being held in $780,
600 bonds in connection with mail
robberies totalling approximately s6,-
100000. French, alleged to be his
right hand man, was arrested yester-
day with several of his associates.
Today 6. K. Strobel was taken into
custody in Akron. Ohio. and \. E.
Strelzin was arrested in Milwaukee.
Letter From Millionaire.
rof,,rp of OF q