The New York herald., 1921-08-10
FIVE men ACCUSED
OF 100000 FRAUD
Arrested Charged With lmper-
sonating Rich Merchants,
TO Buy on Credit.
ORDERED GOODS BY NAIL
Many New York Wholesale
Clothiers Victimized by
Fake Stores in West.
ORDERED GOODS BY NAIL

Federal agents and detectives operat-
ing under Frederick l.. A. Stiefel. man
ager OF the prosecution bureau OF the
New York Credit Mems Association, ar
rested yesterday five men who are De-
clared to be members Of a band enga ged
in using the mails to defraud wholesale
clothing merchants in this city and citits
in the middle West. Through their opei-
atoms. 1t Is charged. these men have
obtained from wholesale merchants mer'
chandise valued at 100000. N
The men arraigned before United.
States Commissioner Samuel NJ. Hitch
cock are Harry Lovett of 81 Riverside
Drive; Herman Shaw Of 35S koscinsko
street, Brooklyn; Samuel stein and Nor
ris Cohen, partners in business at 100
West Thirtieth street, and Aaron Levin
stein of 76 West ll3th street Lovett
and Shaw were held in $3.50 ball each.
Stein and Cohen were held in $1,000 bail
each and Levinstein was released on his
own recognizance.
According to Mr.. Stiefel. who, with
Nathan Noile, post office inspector, has
been Investigating the alleged conspiracy
for four months, Lovett was the moving
spirit In the operations of the quintet
Information shows. according to the in
spector's charges that Lovett went 70
ST. Louis about six months ago and
rented an Office in the Arcade Building
under the assumed name OF Jacob Zuck-
errnan impersonating a reputable mer-
chant In that city. He then flooded the
East with orders. and Eastern whole
salers. believing they were doing busi-
ness with the real Zuckerman, gave con-
siderable credit without an investigation.
The merchandise was delivered, and
Lovett, who received II. disposed OF II
at fifty cents on the dollar. 1t is charged
Eastern wholesalers did not become
aware of their mistake until they for
warded bills for the merchandise. which
were returned In placing orders un-
der assumed names Lovett. the officials
charge. always gave Dun's and Brad
streets guide as reference.
Schemes similar to this were operated
IN Chicago. Indianapolis. Trenton. n. j. :
Des Moines. Cincinnati and other cities,
II Is said.
The other men implicated in the con-
spiracy. according TO the Federal COM
plant. aided Lovett by representing
themselves to wholesale dealers as sales
men and by operating fake stores In
some OF those cities, receiving the goods
as ordered under an assumed raroc and
disposing of them for cash as low as
forty cents on the dol'ay.
Shortly after the arrest the Federal
officers received word from Chicago Of
the seizure OF two trunks in which. II
Is charged. Lovett. while impersonating
Zuckerman at St Louis. shipped stuff
70 Shaw, who had opened a fake store
IN Chicago. While in Chicago Shaw
represented himself In the name OF a
substantial concern there.
The Investigation will be continued.
Mr.. Stiefel said. and he announced fur
sher arrests are planned
No time for a hearing was set by
Commissioner Hitchcock when the men
were arraigned, and 1t is said the evil
dence will he presented TO the Grand
Jury and indictments asked for by the
United States Attorneys office.