New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-13
Bogus Bankers
Reap Millions
From Travellers
International Band Fleeces
Americans Who Seek TO
Get Benefit of Exchange:
Plot Revealed i'll Germany
Indictments Sought Here
Scheme Is Termed 'Mcanest
Swindle' by Assistant Dis
trici Attorney Schneider

Inc existence of an international
bard of bogus bankers who have
aeeec6 thousands OF naturalizcd Amer
lean citizens out of millions Of dollars
WIS brought 70 light yesterday when
Assistant District Attorney Benjamin
=. Schneider announced that he had be
gun an investigation following COM
plants from several sources.
Mr.. Schreiber made public letter
from J. Alshr Huddie, American Consul
At Hamburg. written TO the State De
partmant. forwarded to Colonel Viii
liam Hayward. United States District
,ttorney for the Southern District of
New York. and sent by him in turn to
District Attorney Banton TO investigate
and prosecute if the facts warranted.
The letter reads in mart:
81 have the honor 10 report that a
number of case have come to NY at
.sntion recently OF naturalized Amer
cans who iutcnd Is visit Germany hav-
my converted their life savings from
dollars into German marks with the
ostensihlc purpose OF residing in Ger
7nap, tamporarily or permanently. ow-
~ o he benefit derived from the low
O.. asnee.
Several Of these persons have pre-
~1ted themselves at this Office with
.nccts drawn on wcll-known banks here
., large sums in German marks and
have Informed nc that the German
links upon which these checks we're
drawn have refused to cash the checks
or tho ground that the institutions in
New York that issued them were not
known hr1c, neither had they ever been
rfefr7od lhat the amount in question
rad Dec, placed TO. their credit for the
porsosS S7ecitied on the checks.
~ number of persons have also
CO led - .his Office with certain checks
drs -. - New York on banks here and
Aavo stated upon Their arrival that they
discovered that their dollars had been
converted into marks at a rate rang
iug from 80 30 so per cent below the
current rate of exchange"
Hr. Schreibcr said yesterday that he
intended to present the matter to the
grand jury and ask for indictments for
grand larceny. Complaints that came
TO him showed that early last Deem
Der money was taken by alleged bank
ers here to be transmitted to poor
relatives of the senders in Germany.
When the checks arrived in Germany
and were presented to the banks there
for payment it was found that there
was no account and that no credit had
been established there for payment.
Many of these checks, Mr.. Schneider
said, were sent as Christmas gifts. In
many cases the checks were drawn on
the following banks: The Nord
Deutsche Bank. the Deutsche Bank of
Berlin. Disconto Gesellschaft and the
Weiner Bank Verein of Austria.
1--WE are Investigating this fraud.
Mr.. Schneider said, land | have al
ready interviewed several witnesses
with view to presenting evidence to
the grand jury sufficient to warrant
finding indictments FOR grand larceny
Il is one of the meancst swndles
have ever heard of, and is far reach
ing. ] am convinced it probably cx~
tended all over the country. but be
cause a majority of travellers sail from
New York. the swjndlers proba bly,
reaped THEW greatest harvest here"