The New York herald., 1922-03-15
FUR BUSINESS SEIZED
in HUGE TAX FRAUDS
Weingold Alleged to Owe
$4,000 Because of
Fake Stamp.
is MORE FIRMS NAMED
Warrants of Distraint Is
sued After Arrest Of
-Four i'll January.
FEDERAL JURY TO ACT
Frank K. Bowers Expects Deal
ers to Be Frightened
Into Payment.
FEDERAL JURY TO ACT

Agents OF the Collector of Internal
Revenue took possession of the fur
business Of Barnett Weingold at 15S
West Twenty street yesterday
for alleged failure to pay luxury taxes
and penalties amounting to $46,783.22
due to the Government
Sixteen other furriers are named in
warrants of distraint, under one of
which the seizure of Weingold's estab-
lishment was made. 1t is expected that
other arrests will follow, but the iden-
tity OF the other furriers has not been
made public. The seizure is the Sc
quence to the arrest six weeks ago of
two men in connection with fur tax
frauds reaching 100000.
When Government agents arrested
Morris Rosenblum and Herman Schuss
on January 25 they found a rubber
stamp, a duplicate of that used by
cashiers in the internal revenue collec-
.7's siiice. which they charge Rosen-
blum and Schuss hcd used to defraud
the Government. Tho arreste followed
z special investigation by Elmer J.,
Ivey, Chief Revenue Inspector, of
Washington, who came here with sew
eral agents to investigate.
Bogus Receipts Stamped.
The plan. according to the agents, was
for Rosenblum and Schuss to go to a
ftrrier who paid a luxury sales tax
monthly, and for a percentage of the
amount of the tax they would stamp
receipt When an inspector went to
ifvaf 40 fai ~ fJ,n at
to pay q tax the latter would show
what purported to be bona fide re-
tcipt and the matter would escape sus-
Slcion.
In connection with the arrest of Ros-
enblum and Schuss Ben Weiss and Mel
Vile Newmark were also taken into
custody. All four are out on bail pend
tlg hearing. Rosenblum at the time
Of his arrest In this case, was out on
bail set in 1919 when he was dismissed
from the Federal service on a charge
of accepting a bribe of $4,000 in another
income tax fraud case. lie also pleaded
guilty a year ago to indictments charg-
ing conspiracy with Morris Rachmil and
Abraham L. Samuelson In an income tax
fraud case.
The seizure of Weneold's business be-
came known only when his attorneys,
Barnes. Chlvers & Halstead, and Isa-
t. u
peared before Judge Julian w. Mack in
the United States District Court late in
the afternoon and obtained an order
staying the execution of the warrant OF
distraint until Friday. when the case
will be heard i'm United States District
Court
Since the disclosure incident to the ar
rest on January 25 Frank X. Bowers.
Collector, has had accountants going
over the books of large number OF
furriers. Indictments in these matters
are expected from the Federal Grand
Jury soon..
$4,000 In weingoId Case.
According to Mr.. Bowers notice was
served on firms owing taxes that they
had until yesterday to pay the amounts,
after q ten day grace. When the time
expired the warrants were issued to A.
Delasandro, chief field officer. to serve.
In Weingold's case the Government
alleges. that eight monthly payments,
varying from $4,000 and $1,000, were
fraudulently receipted, which, with the
penalty imposed, will amount to more
than $4,000. Mr.. Bowers said he ex-
pected that most of the dealers on his
avoid service of the warrants, which in
cludes the sealing of the place of busi-
ness.
The Grand Jury Is expected to report
to-day on the charges against Rosen-
blum and ScHuss and their two asso-
catcs.