The New York herald., 1922-08-03
BUCKETING CROOKS
ON THE PHONE AGAIN
Get Checks for Purchases by
Offering to Resell at Big
Profits.

| BucketeefS dTlNen Out OF lilc HHh.iSiai
district through fear OF prosecution have
resorted 10 a stock swindle scheme. diffi-
cult to wipe out because conducted
chiefly over the telephone. 1t Is being
investigated by the District Attorney.
II is the old "sAin game" that always
has been popular with the big gyp ar
lists" The only new feature is that
it is being practiced by the petty stock
broker and is increasing by leaps and
bounds. Its operators depend upon the
gullibilty Of the public for profits and
the protection Of the telephone for
safety.
Benjamin #. Schroeder. Assistant Dis
trict Attorney in charge Of the bucket
shop Investigations. explained the sys-
tenn with a specific case. The bucketeer
gets a name from a stockholders list
and calls him on the wire, Mr. Schneider
giving the following as an example OF
the conversation
Hello. this is Mr.. Wood. Of Such-and-
4ch brokerage firm. We understand
ou hold two shares of x-Y-z stock.
We've just had a Clip that that stock
0n the boom. In fact, we had an
to-day for the purchase of some
$75 a share. If you'll buy eight
lares from us at $40 each We'll take
the lot OF ten shares off your hand to-
morrow at SIS share"
The telephone broker explains care
fully that it is necessary that there be
lot of ten shares for sale.
The person who complained to Mr.
Schreiber fell for the lure of such large
profits and wrote out a check for $3.50
TO cover the eight shares. This check
was delivered to the brokerage house on
July 2S. The customer waited few
days without word from the broker.
then had another telephone call.
This time the broker told story or
being unable to put any deal through
unless the customer obtained bloc OF
twenty-five shares. The customer said
he was unable to afford the additional
fifteen shares and hung up the receiver
after asking for the return OF his
check.
The next communication from the
broker was the following day, when
small boy called at his home with
letter It said that the broker had con-
sdered the customer was throwing
away such good opportunity to make
money that he had taken the liberty of
purchasing the fifteen shares of stock.
The customer could pay for them on the
instalment plan, the first instalment
payable then.
The customer. led on this far. sent
back a check through the messenger.
No word for several days from the
firm and then he found the stock he
had purchased was in defunct auto
mobile concern and was virtually worth
less.
He went to the offices of the brokers
ND ax-
planned his telephone conversations to
the head of the concern. The broker
denied that any Mr.. Wood" was en-
ployed by him and told the customer
that some dishonest person must have
taken advantage of the firms name.
Mr. Schreiber said this practice was
growing at an alarming rate and that
he would appeal to the telephone COM
pany to discontinue the service of any
brokers complained against on this score.
He characterized this form of fraud as
"the worst possible offense" because OF
the difficulty of identifying the perpe-
traitor, who was known only as voice
over the telephone.
The Assistant District Attorney said
he had received complaint Tuesday
and another yesterday against one
broker Arm. Other persons had told
him that they knew the scheme was
being operated by broker concerns which
were on the ragged edge of bankruptcy.
Those fellows he continued, "are
afraid to go to the wall for fear indict-
ments will be found against them and
are evidently trying this means of rails
ing funds to keep them afoat. The
number of bucket shop operators-fifteen
now--that have been found guilty since
the first OF the year has caused them 70
fear that game"
1t was said that many former down
town swindlers had moved to the Summit
| avenue section of Jersey City.