The New York herald., 1922-03-07
IS GO TO TRIAL SOON
FOR 100000 FRAUD
Gang Accused of Getting Goods
Through Using Eighteen
Firm Names.
CREDIT EASILY BUILT Up
Buyers Sent to New York Mar
ket to Pick Purchases, Is
Charge.
CREDIT EASILY BUILT Up

When the case of Julius ii. Schwartz
Max Goldstein and others was set yes
terday for trial next Monday in the
United States District Court it was re-
vealed that the New York Credit Mems
Association expects to bring to justice
IN organized gang of at least thirteen
alleged swindIers whose commercial
frauds are estimated to have cheated
New York merchants out of goods valued
Mt between S300. 600 and $4,000 in nine
months.
Thirteen men have been indicted, OF
whom twelve have confessed. according
TO Frederick r. A. Steifel. attorney for
the credit men. The association sus-
poets that five moro men may have been
involved in th- alleged swindle. but they
have not been arrested All the others
Fave been arrested in various parts OF
the country and are out under bond IN
New York; Misuse Of the mails to de-
fraud Is the charge.
Schwartz is said to have been the
master mind OF the operations of this
crowde. The scheme charged against
them, while decorated with fantastic va
riations. is mainly that of assuming the
name of, or a name so nearly like that
OF some reputable business house in a
distant city, and using the deception as
a means of obtaining credit for the pur-
chase of merchandise.
The thirteen indicted men are alleged
to have operated at various times In nine
mcnths eighteen fake business houses in
New York, indianapolis Chicago. St.
Louis, Cleveland, Milwaukee,. Phiiadel-
phia Rochester and Albany.
The trick of using the name of repu-
<ahla i,n,cs. fnr fraud rhraigf IL mails
is not new. but the Schwartz outfit is
said TO have introduced some new fea-
lures and to have been peculiarly sue
cessful with it.
According to Mr.. Steifel. some Of the
allegedly fake houses operated by these
gentry did not stop with mail negotta-
tions, but actually sent buyers to New
York wholesalers and worked the field
Systematically. These buyers, it was
stated. always lodged the question of
credit references. however, by saying
that they were merely buyers and had
nothing to do with the credit end of the
business The wholesaler then was in
vited to look up the credit of the buyers
house himself Finding what was APP
parently the name Of the buyers house
in rating directory the wholesaler was
satisfied and sold the goods. Credit
once being establishd, the bogus houses
are said to have recommended each
other for credit.
More astonishing than that however,
and indicating the highly efficient sys-
tenn on which the fraud is alleged to
have been perpetrated, is the fact that
certain Of the members of the band In
troduced brand new wrinkle in COM
mercial frauds by the use Of a sucker
list" That list Is described as being Of
exactly the same character as such lists
used by bucket shops and other swim
dlers. except that 1t was composed OF
New York wholesale mercantile houses
which were regarded as particularly
easy marks for credit swindlers. The
names OF some of the best known whole
salers Of New York are said to have
been included