New-York tribune., 1922-03-18
Jury lndicts Z
For $2,OO0,OO0
FurTax Frauds
Six Accused of Conspiracy
TO Defraud u. S. and to
Counterfeit Int rna |
Revenue Receipt Stamps
Many Dealers Held Dupes
SO, Alleged to Have Obtained
Rebates From PIotters,
Ordered to Pay Up at Once

Two indictments connected with the
alleged $2,000,O00 fur tax frauds re-
vealed by four arrests in January, were
filed by the Federal grand jury yestcr-
day. In the first, six men, declared by
tho government to havo been ring
leaders and Intermediates in the plot.
are charged with conspiracy to defraud
the United States and to counterfeit
internal revenue receipt stamps. In
the second an important manufactur
ing furrier is indicted on six counts
on charges of failure to file proper
ly sales.
Four of the defendants named in She
first indictment were arrested in Jan
uary-Morris Rosenblum, former dep
uty internal revenue collector; Herman
Schuss, Melville, Newmark. actuary of
the American Fur Dealers Acsocia-
tion, and Ben Weiss. The others named
are William Sherman, an accountant,
and julius Dawson, lawyer.
Rosenblum, according TO Assistant
United States District Attorney David
V. Cahill, employed the knowledge OF
the collection system he obtained while
in tho government service to plan and
direct the plot, In partnership with
Schuss, while the other four defendants
used their acquaintance in the fur
business to bring the ringlcadcrs into
contact with the manufacturers.
Says Many Were Duped
Most Of the furriers, according to
The Federal prosecutor, were the dupes
Of the consplrators. The Indictment
charges that Roscablum and his asso-
ciates represented themselves as gov
ernment agents and offered the manu-
facturers discount Of between 10 and
40 per cent on their taxes provided
these were paid through them, and that
subsequently they collected the amount
due the United States and gave
counterfeit receipt in return.
The Treasury Department has al
ready served notice on fifty furriers
whose books have been examined since
January that they must pay Immediate
~ the taxes which were turned over
TO the alleged conspirators rather than
to the collector OF internal revenue.
On tuesday sixteen warrants were
issued to take over the businesses of
turrlers who had refused to comply
WITH the governments demand. Five
OF these firms applied for temporary
injunctions at once, but at a hearing
before Judge Julian W, Mack yester-
day four Of the applications were with
drawn.
Wefngold Indicted
The fifth injunction was sought by
Barnett Weingold, of 1853 West Twenty
seventh Street, and was dismissed bv
the court. During the hearing the
grand jury reported, and Judge Mack,
leaning forward, told Weingold that he
had just been indicted for completely
IN the fur frauds. He is the only de-
PENDANT named in the second indict-
ment, and is connected with the first
by the tact that one of the overt acts
specified in the charges against Rosen
blum and his associates is the giving
OF counterfeit receipt for S7,156.o1 :,
"nlch We'ngold is alleged to have
owed on his sales in October. The
furrier is alleged in the second indict-
ment to have paid the tax to an un-
named person. Knowing that The ls,ier
was not government agent, and Ia
have shown the alleged forged recent
to deputy collector to convince him
that the tax had been paid to Treasury
agents.
Weingold, when arralgned before
| Judge Mack to answer the CHARGES en~
tered tentative plea of not guilty. and
was paroled in the custody Of iha
marshal until this morning to give