The New York herald., 1921-03-16
NDICT DETECTIVES
FOR GRATUITIES IN
RECOVERING BONDS
Four True Bills Said to Be
4 Only Opening Shots Of
Big Attack.
FORMER LAHEI MEN
Number Of Policemen Thus
Far Accused in Inquiry
Reaches Twenty.
PENSION FUND DEPRIVED
Officers Failed. 1t Is Charged,
TO Turn Over Percentage
as Required.
PENSION FUND DEPRIVED

With the fling OF indictments
against four acting detective SER
geants Of the Police Headquarters
staff for illegally receiving cash gratu-
itiee for the recovery OF stolen stocks
and bonds, the special prosecutors who
are assisting Charles S. Whitman in
MS efforts TO clean up various bad
notice yesterday that thcy are going
deeply into the matter of police ac-
tivities in the notorious bond theft
cases
The indictments are understood to
oe but the opening shots in an attack
upon policemen who are declared to
have been taking rewards from finan-
cial institutions without paying 10 per
cent. of such rewards to the Police
Pension Fund and 40 per cent TO the
Relief Fund. as they are required TO do.
The defendants in the four indict-
nents are accused OF having taken cash
tewards OF from 5000 to $500 from the
Fidelity and Deposit Company Of Mary
land for the recovery of about S103. 900
worth OF securities stolen from the Of
fices of Hartman & Co. by a messenger
who absconded with S11S.000 worth OF
loot.
All four are well known in the de-
partmenr and In the financial district
1or their work in running down bond
thieves. and each one has a number of
important arrests to his credit. They
A
Frank Gilfillan and Isaac Mindheim.
All were formery members of the staff
of William J. Lahey. recently indicted
tor permitting another officer to accept
q. reward i'll an alleged unlawful man
Ter. That was when Lahey was Sec
Cnd Deputy Police Commissioner and
before his elevation to the post of Chief
inspector.
The grand Jurors returned the indict-
yncnts before Judge Thomas c. e. Grain
in General Sessions early in the after
noon, and all four defendants, with their
counsel, Frank Aranow. appeared after
court had adjourned and were taken 70
Judge Morris Kocnig's chambers, where
they gave S2.500 bail each for their ap-
pearance in court to-day to plead TO the
indictments.
The filing OF the indictments brings
the number of persons thus far accused
BY the Whitman investigators up to
twenty. a number OF the indictments
have charged detectives with receiving
unlawful rewards for recovery OF stolen
automobiles
The matter charged in the indictment
came to the attention of the special
prosecutors when they examined the
hooks Of a burglary insurance company
which had reimbursed the Fidelity and
Deposit Company OF Maryland for tho
money paid 10 the police. They then
looked into the records of the latter
company and discovered. II is alleged
hat on October 10. 1920. 1t hal paid
Meringolo $500 and Gnnllan and Greer
$500 each, and that on October 20, 1920.
il had paid Mindheim $500. All of the
payments we're In cash, according to
statements made by Investigators, and
che company obtained receipts for
them.
For the purpose OF ascertaining
whether the proper amount had been
turned over 70 the pension and relief
funds James u. Smith then examined
the books relating to these funds. and It
is alleged he could find no record OF
any payment by any one OF the four
accused officers from the time of receipt
% the rewards to the time OF presenta-
ton OF the case TO the Grand Jury
The Hartman & Co. theft was per-
petrated on March 30. 1920. and il was
an unusual one, because Il had been
carried out by a ffteen-year-old boy
without outside assistance This boy.
Leroy Gardner by name. obtained en-
ployment with Hartman & Co. BY repre-
senting himself as boy named Dennis
Shea. Inquiries were made as to Den
MS Sheas record. and It proved SO sat-
tstsctory that the supposed Dennis Shea
. a Il nj ...NNA L. III. r
valuable securities 70 deliver to another
house. He lost no time in fleeing with
these securities, but was later captured