The New York herald., 1922-02-14
CHICAGO BOY PONZI
LAYS PLIGHT TO OIL
Admits Losing $3,500,00O
and Lays Blame on His
Former Counsel.
MAY SAVE ST. 100000
Location of Five Safety De-
posit Boxes Expected to
Aid Probe.
DUPES STORM HIS OFFICES
Riot Call Follows Attack by
Nearly 1000 Foreigners
Mother Reveals Assets.

Specioi Dispatch to THE NEW YoRK HERALD.
CHICAGO. Feb. 13.-Raymond j. Bis
choff, Chicago's twenty -five-year-o
"Ponz," to-day admitted he had lost
s3,500,000 entrusted to him by poor
persons who expected TO get rich
quickly through his gambling in oil
stocks.
At q receivers hearing before Judge
Lands Bischoff blamed his troubles to
Emil J.. Wetten, his former lawyer.
Wetten, who formerly was president
of the Hamilton Club, Chicago's lead
ing Republican organization, double
he testified.
Bischoff said he had taken $4,500,-
600 from his Clients" who expected to
become wealthy almost over night.
Only $1,O00,00o could be realized from
the crash, he declared.
Judge Lands forced Bischoff to testify
how he and his associates started out
two years ago with virtually nothing and
ended up with liabilities estimated at
close to $5,G00.000. The Judge also sue
ceeded in locating six safety deposit
boxes which may help solve the ques.
tion Of what became of the money.
The Judge also elected from the
financial wizard" the admission that he
was deserter from both the Canadian
and American armies. The court scene
was sensational one Bischoff was
surrounded with heavy guard of Fed
eral secret service operatives.
Judge Lands issued restraining orders
at the close of the hearing which fol-
lowed the appointment of receiver last
Saturday, preventing Bischoff's relatives
in whose hands he appears to have
placed much of his business, from dis
posing Of two fiat buildings. two houses
a farm, four automobiles and the con-
tents of the safety boxes, all of which
were purchased with the funds which
Bischoff took from his dupes.
While Bischoff, his mother and his
blind stepfather were on the witness
stand. and few of the creditors
watched silently from the court benches,
nearly a thousand unlettered foreigners
of all ages and both sexes stormed the
Office of the stock yards Ponzi' in the
Marshall Square Building and made life
hastily summoned by riot call.
James J. Kelly, attorney for Bischoff.
asserted tonight that his client would
never spend a day in prison.
"Bischoff has violated no law--he has
simply lost money in speculations." he
said. "A man can't be imprisoned for
non-payment of promissory notes if he
hasn't the money. believe creditors
will get ten cents on the dollar"
The District Attorneys office an
nounced that unless 1t could be proved
that Bischoff used the mails In his
fraudulent schemes, there was no Fed
eral law whereby he could be prosecuted.
Judge Landis intimated that the States
Attorneys office could prosecute Bischoff
OF the charge of operating a confidence
game. SO far the States Attorney has
Bischoff, in describing the failure of
his personally conducted concern. the
Oil Company of Denver, said he re-
tained Wetten as counsel and chief adj
wiser at $500 month--but that Wetten
withdrew from the company at a critical
stage.
Don't you realize that the sealsltin
coat you are wearing came from the
pockets of these people out in the yards
district" the Judge demanded of Mrs.
Davis. when she pleaded to retain $1,000
of her own money, which. she said, had
gone into one of the apartment build
ings.
Don't you realize that at least eleven
twelfths OF what you own was realized
by this swindle?" the Judge went on.
"T realize it now" she said. I'm
sorry I'm willing to do everything
can to help them get it back ~