The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1921-08-25
HUGE FRAUD SCHEME
Is UNEARTHED
Banks, Bond Houses, Brokers and
Wealthy Victims of Clever Band.


Chicago, Aug. 23-Millions of dol
lars of worthless notes, stolen bonds,
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
swindles ever unearthed by federal
|agents.
Six million dollars worth of stolen
bonds. nearly S3,0OO,0OO 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 q
confession accredited to Alva w.
Harshman who was declared to have
been private secretary to French
and who surrendered today. He was
alleged to have told of deal ne
gctiated by French for the purchase
OF a bank in the Middle West that
involved the exchange of 100000.
How They Worked 1t.
A Washington. D. c., man, accord
ing to Harshman, was to obtain GER
titled checks for 100000 there.
These checks. he said. were to be
presented to the bank owners and
when the band gained control Of the
establishment they were to cash all
certificates of deposit the bank own
| ed. The money, he said. would then
be forwarded to the Washington man
who would deposit 1t before the GER
titled checks On the original transac-
tion were cleared and returned. Many
other similar deals were also de-
scribed
| In another case. it wcs asserted. a
large amount of stolen securities
were placed with a small country
bank in return for a certificate of
deposit. The deposit slip, II was said Z.
was cashed. and the bank left hold
ing the securities which would be
identified and reclaimed when 1T tried
to realize on them.
| 1t was also revealed that the band
was operating in Kansas City Ac-
cording to John ". 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 100000
1t was said that A. E. Strelziin. who
was arrested today in Milwaukee, will
be questioned regarding this trans
action.
Worthington was arrested some
weeks ago and is being held in
500, 900 bonds in connection with
mail robberies totaling approx
mately $6.000.000. French alleged to
BIO his right hand man, was arrested
yesterday. Today c. X. Strobel was
taken into custody in Akron, Ohio.
and A. E. Strelzin was arrested in
Milwaukee.
Letter from Millionaire.
Begging the return of "at least a lit
tie Of the nhllions-to be exact $2,-
10000" alleged to have been OBJ
tained frorm him by John W. Worth
ington. Charles French and their as
sociates. letter from q. w. Davis.
former president of the Winton Auto
mobile Company, of Cleveland forms
the letter intercepted by government
officials. 1t was addressed to French
at a Chicago loop hotel, where a
suite maintained by French was
raided yesterday. Federal officers say
they recovered securities valued at
81. 900. 900 in, the raid.
/ Davis letter, of six pages, dated
August 5, was plea for others who
are entirely dependent on him for a
livelihood. Left without aid from
those who obtained his fortune. the
Cleveland former millionaire declared
he would be, forced to the only al
ternative-suici6e." Davis also was a
former president of the Diamond
Portland Cement Company and the
Globe Stove Company. The letter ad-
dressed TO French said:
PLEASE do not take what I am writ
ing to you as whine. I am not in the
habit of crying after I have lost If
1 were the only one to be considered,
I would not care.
But there are others who are en-
tirely dependent on me for a liveli-
hood. 1t Is for that reason that am
now forced to beg you to return at
least little of the millions to be
exact $4,000, 0,000-which you and
your associates have taken away from
me in the last two years.