The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-01-15
M||LL|ONSL0ST
TO SW|ND[ERS
Police Charge German Mark
Operations Will Rival Deal
ings of Ponzi.

| BOSTON, Jan. ia rigid and
thorough investigation into the five
million dollar German mark swim
die, in which thousands of credulous
,, investors throughout the country
have been robbed, has been ordered
by Assistant Attorney General AL
bert Hurwitz, of Massachusetts,.
MAY RIVAL PONZI.
This latest get-rich-quiCk scheme,
which promises to affect far more in
vestors and involve much more money
than the famous Ponzi plan. was
brought to light by the arrest Of three
Massachusetts men connected with
the firm of Rothschild Campbell Com
pany. Ltd. foreign exchange brokers.
Already investigators of the state
Department are on the trail of one
group of workers In the scheme, who
| manufactured counterfeit marks in
New York and passed them around as
Legitimate.
Like all the great swindles, the big
appeal was made to the poorer classes,
the people with a few pennies saved
and desire to make real money.
| The mark was represented as sure
| to rise in value. Options were sold
at cents, and buyers of these op-
|
the value of the mark went above 2
cents.
| A legitimate business in marks has
| been done by many of the large
brokerage firms, but the invasion Of
the swindlers and counterfeiters into
the game has wrecked the market.
Those who purchased the fraudulent
options have no comeback whatever.
Attorney Hurwitz estimates that at
least $4,000, 900 has been stolen from
the credulous.
| Hurwitz declared that the marks
situation would be cleared up rapidly
in this state, and that similar action
lwould follow in all other parts of the
Tcountry to which the ramifications of
the plot extend.
| A warrant is know to have been
issued for another member of the
GRIN of Rothschild Company, and II is
expected that agents in various cities
of New Sngland will be arrested Ac-
cording to the authorities, investors
were either duped by counterfeit
marks or the offices of the exchange
brokers were found to be closed when
attempts were made to take up
options.
The men arrested are Nathaniel
Goodman of Boston, Abraham Horo-
witt of Worcester, and A. Gardner
Bostedo of Quincy.
EX-POLICEMAN INVOLVED.
| Goodman and Bostedo, according to
| the police, were members of the Roths-
| child Company firm, together with
| Augustus J. Marks of Dorchester, a
former Boston policeman. Goodman
| and Horowitz were arrested in Wor-
cester and Bostedo was taken into
custody at the office of Il. A. Fordyce
! & Co., No. 80 State street, where he
| is employed as a stock salesman.
Bostedo was charged with the lar
ceny of $50 from Joseph j. Pincus,
of Someville, on June IA, last, the sum
having been paid for an option on
10000 German marks, according to
| the complaint.
| Horowitz was accused of the lar
ceny OF 500 from Herman Neithardt,
of Lancaster, and both no and Good
man were Jointly charged with con-
spiracy to commit larceny.
! The anti-bucketshop law was also
to be invoked against them, accord
ing to District Attorney Esty. of
| Worcester county. They were mr.
raigned in Worcester court and their
cases continued.
| Bostedo was arralgned in the mu-
| nicipal court, pleaded not guilty and
was held in $500 for a hearing Janu-
ary 2s. Goodman, following his ar
ralgn .rent In Worcester, denied any
J connection with the RothschIld-
| Campbell Company. lie said he got
out OF the Leonard, Chandler g. Dopp
company and went home to New
Haven. He declared he never bought
or sold German marks