Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-13
CREDITOR MOB
STORMS OFFICE
OF NEW 'PONZL'
Chicago Reserves Called to
Keep Yards Workers From
Acts of Violence.
COURT INQUIRY OPENED

CHICAGO, Feb. 13.-Crying Our
money, our money!" an excited mob of
people today stormed the offices Of Ray
mond Bischoff, the young Chicago
Ponzi."
In the mob were many of the $500
creditors of Bischof whose frenzied
finance is said to have lost them nearly
So, 100000.
The crowd became so menacing that a
hurry call was sent for police reinforce
ments.
At the same time Federal Judge Kene-
saw NJ Lands opened an inquiry into
Bischoff's operations Bischoff is under
arrest charged with defrauding hundreds
Of creditors whose money he had in
vested Members of the Bischoff family
were subpoenaed before Judge Lands for
questioning concerning Bischoffs assets.
Investigation revealed the golden trail
of the mysterious millions Of Bischoff, It
is believed, when the existence of eleven
safety deposit boxes, three apartment
buildings and various other valuable as
sets were found to be in possession Of
the family.
Under questioning of Judge Lands,
Bischoff admitted that he was n deserter
from the American army and had never
been discharged from the Canadian
army"
Bischoff asked Judge lands 10 give
him a months time to recuperate part
of the losses of $500 workers of little
Poland, who invested $4,000 900 IN saw
ings with him. He was called before
the court to tell why he should not be
declared a bankrupt.
Give me one month, Judge, and I'll be
able to pay back rs cents on the dollar"
Bischoff told the court.
II would not be in this plight If
hadn't been double-crossed by Chicago
1nanciers."
He denied he had ever paid as high as
100 per cent interest to those who loaned
him money on promissory notes.
sixty per cent was the highest l ever
paid" he said.
Frank 0. Davis, stepfather Of the
wizard" testified that he and Mrs.
Davis. his wife, had arranged for ten
safety deposit boxes in Chicago banks.
They were In our names he said.
He testified that aGairs Of the company
started to go bad last November. Davis
was Bischon's office manager.
A search OF tangible assets also was be-
ing made by Investigators for the Central
Trust Company Of illinois, appointed re-
ceiyers.
Thousands Of stock yards workers In
Little Poland" whose savings were
wiped out in the crash Of Raymond A.
Bischoff. Chicago's "Ponzi," will receive
bu 10 cents on the dollar, his attorneys
said today.
PLACES BLAME
On ENEMIES.
Bischon blames his crash in plot OF
enemies TO ruin him.
If they haG let me reorganize my
business" he told investigators, Il would
have came through all right
The "boy wizard" PROMISED to pay
100 cents on the dollar eventually.
Bischoff denied that his operations were
similar to those Of Charles Ponzi, Boston,
who is now serving prison term.
"They cannot send me 10 JAIL he said,
las I have violated no law. The people
wanted me to invest their money for
them I told them they were gambling,
I merely gave the investors personal
notes. They cannot jail a man for In
ability to pay debts
Judge Lands appointed the Central
Trust Company as receiver for Bischom
Saturday on application OF three credi-
tors. who said he owed them $1,000.
FINDS NO BASIS
FOR PROSECUTION.
Attorney T. r. Tiedebohl, attorney for
the receiver. stated today that no grounds
for criminal prosecution under Federal
statutes had yet been found.
BIschoff's undoing, he said was due to
an attempt to gain control Of the Oh
and Gas Company. Later, he said, he
helped reoreanize the Lakantyas OIL
Company which proved Improbable.
The dealings Of Bischoff came under
the eye Of Federal authorities last year
when reports became current that as high
as from 40 TO 100 per cent profit was paid
out by Bischoff on Investments.