New-York tribune., 1922-02-13
Mail Swindles
Among Bucket
Shop Charges
Federal Dislric, Attorney
Preparing Cases Under
u. ;. Law as State AUTHOR
tiles Speed Up Inquiry
One Victim Lost$IOO, 600
Plucking Of ssCold Birds"
an Easy Task for FaIkcrs,
lnvcsti gatiou Discloscs

'"' INC purpose OF mapping out a
plan of concerted action in the pvcscn-
ta.ion of hucket-shop evidence to grand
jurics this week, Assistant Attorney
General Frederick r. Rich will confer
to-day with District Attorney Banton
and the latter's staff of assistants spc-
cially engaged in the examination Of
fraud complaints. Recent failure. in
brokerage and mercantile circles also
will be discussed
Many Of Che complaints filed with
the Attorney General and the District
Attorney are similar in character. The
idea of the prosecutors is 10 select scv-
cral covering different schemes prac-
ticed by the alleged swnders for
pre- cscntation to the grand iuries.
District Attorney Banton, who on
Saturday decided 10 use all the inquisi-
torial facilities at his command said
yesterday he expected speedy results
and important developments during tho
week. Mr.. Rich said that somo OF the
complaints which hc intended to 90
over to-day with the District Attor-
Ncy's Office warranted indictments.
Frauds in Mails Charged
While Tic state and cou,,ty authori-
tics arc going ahead with the prcpara-
ton Of cases involving violations OF
the bucNeting section Of the penal law,
the United States District Attorney 3
office, il is understood, has under con
sldcrution more than one case dealing
with fraudulent use Of the mails in the
promotion Of illegal stock transactions
Two of the complaints filed with the
Attorney General We're made by invest
ors who alleged they were dcfraude ed
out of sums ranging from $4,000 to
$4,000. Mr.. Rich described yesterday
some OF the methods used by the swim
dlcrs
Among the practices of the "hy-by-
night broker" Mr. Rich said. was thu
sophisticated investor is known in the
vcrnacular OF the bucket-shop. Amos t
invariably the swindlcr used the tele
phone and telegraph. and. strange to
say. said Mr.. Rich. tho investor would
respond without even investigating the
supposed brokerage house with which
ne expected to do business.
"IlaVing singled out victim known
20 possess certain block of stock.
said Mr. Rich, "tho masoucradinc
broker got him on the telephone and
said he had buyer for his stock t
an attractive figure. The victim would
be so we'll taken that he would send
his stock TO the office named by the
informant over the telephone.
Turned Over 100000
"Not content with having the stock
in his possession. the 'broEel' then
played upon thc victim further, caus-
ing him to send cash for the purchase
of an additional block Of stock in
order to make the proposed mythica
sale. In one of the cases The Investor
was induced to turn over 100000 TO
the 'brohcr.
"Whilc the swindler was preparing
to dispose Of the stock and take his
departure the suspicious of the vct,n
the explanation that the buyer desire d
another kind of stock and that IL
would be necessary to exchange the
securities in order to put the deal
through.
"At this point The broker would call
up his cold bird again and tell him
that the deal had been arranged ard
that all that was necessary was
authority to go ahead. In this case
in point the broker asked the victim
to send two kilograms, one authorizing
the sale of his securities and the othc1
the purchase Of the stock ncccssary to
make the trade. With tho telegram
IN hand the broker disposed OF the
good stock and sent some worthless
securities to the INVESTOR 1t was out
and out grand larceny rather ths n
bucketing.
Simmons to Continue
Assistant District Attorney jerome
Simmons, whose resignation was an
-ounccd Saturday. said yesterday be
would continue with the District At
torney's office until the bucketshop
cases prepared under his direction
had been submitted to the grand
iuries. He said this would require
about three weeks time. Mr.. Sim
mons resigned to take the position Of
general counsel to the national vig-
lance committee Of the Associated Ad-
vertising Clubs Of the World.