Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-02-13
100P.C.LURES
5000 SAVERS To
RUIN IN BUBBLE
Former Army Deserter
Starts Out to Rival
Ponzi With Like End.
Arrest in Bankruptcy
Proceedings Unveils
Gigantic Deception.

Chicago, FEB. lZ.-RaymOnd
]. Bischoff, taken into custody
Saturday, after involuntary
proceedings in bankruptcy had
been instituted against him by
creditors. Sunday admitted
that he owes about 100000,
representing the savings of
5000 Chicagoans, mostly for
eigners. Less than $1,O0O,OOO
worth of oil and gas stock Of
doubtful value is available to
meet the obligations, it was an
nounced.
Bischoff, whose financial
operations apparently rival
those Of Charles-~Ponzi, the
Boston wizard" breathed a
huge sigh of relief when taken
into custody.
The Central Trust company
was appointed receiver for
Bischoff Saturday. Felix
Streyckmans, attorney for the
creditors, said he believed
Bischoff's liabilities would run
near $7,O0O,0O0. Bischoff,
only 25 years old, objected
strenuously when it was sug-
gested he accompany deputy
marshals to the section OF the
city where his creditors reside.
Pleads Oil Well Losses
Bischoff told federal officials that
he had been in trouble since last
November and lost much of his money
in several oil deals in which he said
he was doublecrossed.
Bischoff, by paying large returns
on money borrowed in a few par
ticular instances, gained reputation
as a financial wizard among the
Deople with whom he dealt, according
to federal agents. Profits of 40 per
cent on short term loans were said
to be common and Bischoff is said to
have paid as high as 100 per cent in
terest.
Paid Uneasy Ones in Cash
According to Mr.. Streyckmans, only
the creditors who objected to long
waits were paid in actual cash. The
rest, he said, were content to accept
their alleged earnings in more notes.
Some of the people sold almost all
they owned to give Bischoff money,
Mr.. Streyckmans said. One man, he
said, sold his home for $1,000 and
turned over $4,000 to Bischoff
Bischoff came from Davenport. la.
He first attracted attention when he
spoke in Chicago, Denver, st. Louis,
Omaha, and other cities in 1917, calling
himself Sergeant ID. G. Breckenridge,
member of Princess Pats Canadian
regiment. He was exposed then as
deserter from the American army. He
was arrested at Salt Lake City for
desertion and after court-martial. was
sentenced to Alcatraz prison for IS
months.
Avoided Use of Mails
He then came to Chicago and enter
ed the employ of a packing house
concern, later opening a brokerage
office.
James j. Kelly, attorney for
Bischoff, Saturday asserted that his
client had violated no law but simply
had lost money by speculation.
''The mails were not used.'' Mr..
Kelly said. "The notes he gave to in
vestors were simply promissory notes.
And man can't be imprisoned for
failure to pay such note if he hasn't
the money"
May Get 10 Cents on Dollar
Creditors may receive 10 cents on
the dollar, Mr.. Kelly said, when
Bischoff's holdings are liquidated.
Attorneys for the receiver said they
were investigating Bischoff's affairs and
would call in state authorities to see
il Bischoff can be prosecuted under a
confidence game charge. Federal
authorities intimated there was no
basis for prosecution.
John Augustiniak, bodyguard for
Bschoff for year, said that Bischoff
had even fooled his own statesmen.
"Only last Monday he called his
forty agents together and told them
he would have a remittance of 100000
from New York in day or two.' he
said.