The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1921-08-24
HUGE fraud SCHEME
is UNEARTHED
Banks, Bond Houses, Brokers and
- Wealthy Men Victims Of
Clever Band
OPERATE IN KANSAS CITY
Charles w. French and John W..
Worthington Alleged to Have
Been at Head


fraudulent deeds Of trust and forged
certificates of deposit have been flung
on the markets of the country, fed
eral agents declared today after in.
vestigation of band alleged to have
been headed by Charles w. French
and John f. Worthington.
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
swindlers over unearthed by federal
agents.
Six million dollars worth of stolen
bonds, nearly $3,O00,0O0 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 Alva w.
Harshman who was declared to have
been a private secretary to French
and VINO surrendered today. He was
alleged to have told Of deal ne
gotiated by French for the purchase
of bank in the Middle West that
involved the exchange of SO0,0N0.
How They Worked 1t
A Washington, D. C. man, accord
ing to Harshman, was to obtain GER
titled checks for $500,0OO there. These
checks, he said, were to eb presented
to the bank owners and when the
band gained control of the establish
ment, they were to cash all certifi-
Gates of deposit the bank owned. The
money, he said, would then be for
warded to the Washington man who
would deposit it before the certified
checks on the original transaction
were cleared and returned. Many
other similar deals 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 Printing Company, Akron,
Ohio, 50 900; MacKay Truck Company,
Akron, $4,000; Porcupne Mountain
Lumber Company, Cleveland, $4,000;
Portage Market, Akron, $21 900; Hen
niger Plumbing Supply Company,
Akron, $4,000; Schwartzcr Wrecking
Company, Dayton, Ohio, 100000; Mid
west Automobile Sales Company, Day
ton, $5O,000; Dayton Financing Com
pany, Dayton, 900; u. w. Davis,
Akron, $4,000; Apple Financing Com
pany, Dayton, 100000; American
Rubber Company, Chicago, $1,000;
II. M. Strong Metal Products Com
pany, Cleveland $4,000; Cleveland
Home Manufacturing Company, $15,-
600; George B. Wickens, Lorraine, Ohio
100000 and the Portage Packing
Company, Akron, $31 900.
Notes Not Yet Found
In addition about $50O,O0O 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 today.
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
estate 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 $500 900
1t was said that a. T.. Strelzin. who
was arrested today in Milwaukee, will
be questioned regarding this trans