The New York herald., 1922-02-13
Fraud in Addition to Grand
Larceny Will Be Charged
by Banton.
MANY BOOKS ARE MISSING
Federal Authorities Will AS
sist in Rounding Up Accused
Men Who Have Fled.

Indictments in connection with the
bucket shop operations that have been
going on for a year or more in the
financial district probably will be re-
turned this week, 1t was ascertained
yesterday, and it is possible that the
help of both State and Federal au-
thorities will be given to District At
torney Banton and his assistants.
The expected indictments will be in
connection with the six cases already
presented to the Grand Jury by AS
sistant District Attorney Simmons.
An effort will be made to wind up the
proceedings before the Grand Jury in
these cases as speedily as possible,
first because of the necessity of pre-
senting new cases, and also because
Mr.. Simmons, who has resigned, is
directly concerned
While Mr.. Simmons has resigned to
become counsel for the national vigilance
committee of the Associated Advertising
Clubs of America, he will not reln-
quish his duties as Assistant District
Attorney until the bucket shop cases are
in such shape that they no longer re-
quire his personal attention. He spent
a good part of yesterday going over pa
pers and records relating to cases to be
presented to the grand jurles this week.
There are more than a score of such
cases, and in many instances the study
of the books and records will necessarily
take much time.
Many indictments Sought.
In each case where the nature of the
complaint justifes 1t. the policy OF the
District Attorneys office will be to find
three or four separate indictments. In
cases Of this nature the indictments
usually are found for grand larceny,
but in some instances It may be found
advisable to charge frud. The COM
plants vary widely. some of the stories
told to Mr.. Simmons having to do with
out and out conversion of securities in
trusted to the bucketeers as collateral
and other stories relating the alleged
misrepresentation of cash.
District Attorney Banton explained
that the only means of proving actual
bucketine. which Is nothing more nor
less than failure to buy or sell stocks
Is by the books of the concern against
which the complaint is made. 1t is for
this reason that the books and papers
ore always either seized and carried
away or thoroughly examined by the
District Attorneys men.
In some of the cases that Mr.. Banton
is investigating ii may be difficult to
corroborate the charges of the COM
plainants because books and papers have
been destroyed or removed In more
than one instance il has been found that
the offices of the bucket shop operators
has been thoroughly cleared out.
state to Help Prosecution.
Frederick r. Rich, Assistant Attorney
General, is to confer tomorrow with
District Attorney Banton upon the
presentation of new cases to the Grand
Jury. Mr. Rich Is in charge OF the
States Investigation into stock frauds.
and has received. he says, more than
100 complaints alleging fraud. In many
instances, he contends, the complaints
seem to be we'll grounded and of such
nature as to make indictment prob
able.
IL the Federal authorities are to
assist the District Attorneys office, as
they probably will, It will be because
of the disappearance from this juris-
diction OF many persons who might have
knowledge OF the operations Of the
bucketeers. The rounding UP OF wit
nesses scattered about the country can
be done more expeditiously by the Fed
eral authorities than otherwise. The
likelihood of Federal indictments, how
ever, Is thought to be somewhat remote.
though the Post Office inspectors are
at work on some cases In which bank
rupcy proceedings have been begun,
with the intention OF ascertaining
whether the bucket shop operators used
the mails extensively in persuading their
customers TO part with their savings.
Wherever the use Of the mails for
fraudulent purposes can be proved
Federal indictments are possible. but
the present intention of the Federal
authorities Is to do nothing that will
interfere with the work Of the District
Attorneys Office.