New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-16
Asse11lblynlan
lJlllllall Held in
Tax Fraud Plot
Four Others Are Arrested on
Charge of Conspiring to
Cheat Government by
False Income Levy Return
Denial Made by Ullman
Federal Agent Accused of
Agreement to Accept a
Bribe to- Carry Out Plans

Assemblyman Sol ullman, member
q the joint Legislative graft commit
tee, of which Senator Schuyler M.
Meyer is chairman, was arrested YES
terdsy, along with his law partner,
Emanuel Friedman, and three others.
on complaint charging them with
conspiring to defraud the government
through the filing of false income
tax return with the Treasury Depart
ment, Ullman represents the home
district of Samuel s. Koenig, Repabli-
can county president.
The other men arrested in connec-
ton with the alleged conspiracy are:
Justus Frankel and Meyer Saal, public
accountants, with Offices at 725 Broad
way, and Harry Levy, an internal rev.
enue agent.
The role that Ullman and Friedman
are said to have played in the CON
spracy has not been disclosed
Assemblyman ullman issued the fol-
lowing statement last night:
81 never had any connection with
any such case and do not know any
Of the men who are under accusation
4 grave mistake has been made some
where. as l certainly shall be able to
prove
Prisoners Freed In Bail
The men were arraigned before
United States Commissioner Samuel NJ.
Hitchcock yesterday afternoon. Ull-
man, Levy and Friedman were held in
bail Of $4,000 each, while the two &C
couutants bonds were fixed at $500
each. The bail was furnished in each
ease.
The conspiracy. according to James
c. Dunn, special agent of the De-
partment of Justice, was formed by
TIE five men, and in furtherance of it,
it is charged, Levy arranged to accept a
bride of 81 900 for failing to do his law
full duty and rendering a false fraudu-
lent income tax return for Arthe, Levy
& Bernard, dealers in umbrellas, at 81
Union Square. At the time the agent
entered into the alleged conspiracy,
Dunn in the complaint says, he was
engagedi in examining the books of that
firm for the purpose Of ascertaining
tho correct amount of income tax the
concern should pay. Dunn further de-
clarcs Levy accepted the $1,000 bride.
The government officials say that
when they learned the details OF the
scheme they allowed the firm to turn
over to F'rankel the $1,000 which is al
legged to have been paid to Levy. That
transaction was all that was necessary,
he officials believe, to justify them
n causing he arrests of the men, al
hough Levy had not completed his
,.l- |, A1-c md ft,nr Tnra hpd
not furnished the fraudulent return
aid to have been agreed to by him.
Alleged fraud Revealed
According to the Federal authorities,
nsormation regarding the alleged tax
Taad was conveyed to them by John
'cyle, lawyer, who represented Arthe,
levy e. Bernard. BY that information,
t is said, the alleged conspirators rep
esented to the firm that examination
of their books would show that the con-
Germ was indebted to the government
to the extent of 100000 for income
tax. They further suggested that by the
iitm paving them $500 the tax agents
sould be so fixed" that the firm would
nave to pay no taxes at all.
On the motion of Assistant United
states Attorney John L. Joyce bail in
the cases of the five men was fixed
and they were released.
Assemblyman Ullman could not be
reached last night Information given
out from his home was to the effect
hat he was out of town.
Ullman was appointed member of
the Joint Legislative Graft Investigat-
ing Committee in place of Assembly
man Joseph Steinberg. Steinberg and
Senator Theodore Douglas Robinson,
nephew of the late Colonel Theodore
Roosevelt, were the two legislators who
fought for the creation of the commit
tee, even before the Legislature met.
Just why Steinberg was displaced to
make room for Ullman has never been
eyplained