The New York herald., 1921-07-16
ULLMAN ACCUSED
/ OF INCOME TAX PLOT
Assemblyman Is Arrested
With Law Partner on
Federal Charges.
MISTAKE. HE ASSERTS
Conspiracy to Fix Returns
of Umbrella Dealers to
Show No Tax Alleged.
U. s. AGENT INVOLVED
Bribery to Render False Tax
Report Alleged Against
Harry Levy.
U. s. AGENT INVOLVED

Assemblyman Sol Ullman, Repub-
lican member of the Meyer investi-
eating committee. was arrested yes.
terday afternoon by James c. Dunn
Department of Justice agent, on g
complaint charging him with engaging
in conspiracy to defraud the Govern.
ment through the fling of false in
come tax return.
At the same time that Assembly
man Ullman was taken into custody
Emanuel Friedman, his law partner
was arrested on the same charge
Their arrest followed that of three
other men on Thursday night. one an
Internal Revenue agent. All were
charged with having attempted to OBJ
tain $1,000 from the firm of Arthe
Levy and Bernard dealers in um-
brellas. at 81 Union Square, on the
promise that their income tax, which
was placed at $4,000 by the alleged
conspirators would be fixed so it would
dwindle to nothing.
William Hayward, United States At
torney, said yesterday he would prose-
cute the case himself and that he plans
to conduct ar investigation into the
operations OF the Internal Revenue De-
partment.
Assemblyman Ullman and Friedman,
accompanied by the three other prison
ers, Harry Levy. Internal Revenue
agent; Justus F'rankel and Meyer Sail
a a r1fc xr{fh ~ "a
125 Broadway, were arraigned before
Samuel NJ. Hitchcock. United States
Commissioner. and held in bail for hear
ing next Thursday. According to the
complaint prepared by John c. Joyce.
Assistant United States Attorney. the
five men formed a conspiracy and in
the furtherance of IL Levy arranged to
accept a bribe of $1,000 for failing to
perform his duty and to render false
and fraudulent income tax report for
Arthe, Levy g. Bernard.
Frankel and Sail were arrested in the
office OF the umbrella company where.
according to Dunn, they accepted 81 ,O0C
on account of $500. which it is said
they had been promised by the COM
panys officers If the matter of income
tax would be fixed with Levy, who as
examiner of the company's books. had
Government In offering to pay the
bribe. the company's officers were act
ing at the direction of Mr.. Hayward and
Department of Justice officials.
According to Mr.. Hayward, informa-
tion OF the alleged conspiracy was first
brought to his attention by John Boyle
Jr.. counsel for the umbrella company
He reported. Col. Hayward said, that
Harry Levy. on July 1 telephoned the
firm and announced he would examine
the company's books for the Govern
mcnt. He began this work the following
day. Mr.. Hayward was told, and after
two days announced u at he saw several
gross mistakes In the books. and tha,
there was a tax of at least $4,000 due
the Government. He suggested to the
company officers. Mr.. Boyle .old Mr.
Hayward. that they engage expert ac-
countants and recommended Frankel and
Sail
These accountants were engaged and
1t is said, also declared the company
owed the Government large sum. The
accountants suggested that by the firm
paying them $500 the tax agent could
be so fixed that the concern would have
to pay no taxes at all, 1t Is alleged. Al
this point tho company officers took the
matter up with Mr.. Boyle and he re.
ported to Mr.. Hayward.
Assemblyman Ullman left here fol
Bradley Beach soon after his arraign-
ment. 1t was said at his home at 26S
East Seventh street. He represents the
Sixth district In the Assembly. He is'
sued the following statement:
IT never had any connection with any
such case and do not know any of the
men who are under accusation. grave
mistake has been made somewhere. as
certainly shall be able to prove"