The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-14
Thousands of GulIibIe Investors
MuIcted of Millions.
GOVERNMENT TAKES HAND
Land Leases Part of Big Fraud
Now Uncovered.
Investors Doubled Their Money
the First Month.

1 eTaIl0R,
that have followed the exposure of
the 100000 failure of Raymond J.
Bischoff, called the Chicago Ponzi.''
| The so-called rapid fire promoters
who are said to operate by promise
of quick returns and large profits on
small investments, are the target of
the campaign. Thousands of gullible
Investors are declared to have been
Fdefrauded by these promoters.
''Short', Broker F'lees.
Leslie Harrington, ''broker," is
the latest to be sought by the police
and federal detectives. Harrington is
said to have fled shortly before his
office was raided, leaving behind debts
estimated at from 100000 to-
100000. Three men were arrested
in >the raid on Harrington's office.
More than 100 persons had surround
ed Harrington's office and were clam
oring for their money when the po-
lice arrived.
i Two others who have been hit in
the campaign are Casimir PhillipovichI
and NJ. P. West. They have been ar,
rested as moving spirits in the West
ern Land Operators company, which
federal Investigators charged has
| swindled investors out of more than
$1,000,00 thru fake land leases. Phil
! lipovich is said to have been associated
at one time with Bischoff
lands Resumes Probe.
Inquiry into .Bischoffs operations
was resumed today in Judge Landfs'
court. Bischoff declared at the open
ing of the investigation that he had
been double crossed" by d ring of
Chicago bucket shops and had
thereby lost $4,50O,000 intrusted to
him by investors back O. the yards"
Investigation of the dealing of the
Western Land Operators company
the third concern raided by authorities
within three days and believed by
them to have swindled foreign born
citizens of S;nOfe than 81, 500 900, was
under way here today by government
agents. Within three days gigantic
alleged swindles totalling approxl7
mately $4,000. 900, according to conf
I sentative estimate by officers, were
disclosed with the arrest Saturday of
Raymond ]. Bischoff and the arrests
yesterday of three employees of the
Western Land Operators association
and three employees of the American
Novaculite company.
Leslie Harrington said by police to
be the moving spirit in the affairs of
the American Novacuite company,
and Charles Urnich and Charles Phil
lips, general manager and president
of the Western Land Operators COM
pany, are being sought by the police.
Started With Nothing.
| Harrington, the police said, fled the
city yesterday morning. The raids and
arrests followed the hearings OF
Bischoff held before Judge Lands
| Yesterday and in which Bischoff ad-
mttted knowing Harrington, and SAID
he had loaned Harrington money on
several occasions. Harrington's rise in
high finance was even more rapid than
that of Bischoff, the government in
| vestigators said.
Starting when he was practically
| penniless, and upon the suggestion OF
Peter Zilvitis and John Hgaudus, for
ner agents of Bischoff, who wanted
to use him as q figurehead for their
own benefit in organizing an independ-
| emf coInpanv, he obtained desk room
in the office of an attorney, but in
i month he had established his own
office.
He hired many of Bischoffs own
men, paying them more money TO act
as his agents. He rented suite OF
rooms at a large hotel recently and
attracted much attention at Thanks
! giving time when he gave dinner to
200 overseas men. He repeated TINS
performance at Christmas. Last July
he gave a Lithuanian picnic which
was attended by ten thousand per
sons, the investigators said.
Had Forty Field Agents.
A meeting of Harrington's field
agents, forty in number, was held last
Sunday, they said.
A Lithuanian policeman who is
said to have invested $1,000 in Har-
rington notes, heard of the meeting.
walked into the room, fired several
shots into the ceiling and departed
with $1,000 in cash. Luke Byrne, $50
a week president 81, 900 600 concern,
and Thomas Moran, secretary, met
Harrington at dinner they said, and
later were given positions
NJ P West, arrested in Aurora,
Colo, in connection with the Western
Land Operators company investiga-
ton, is said TO have started his VEN
ture here last August. To the investor
he held forth, an attractive PROPOSE
ton which would yield 100 per cent
in six months. they said. His regular
interest rate was 81 monthly on $780,.
| Prospects were told that the conf
pany owned thousands of acres OF
land in Montana and Colorado. No
particular piece of property was speci-
fled as security.
Your bond is good against any
piece of land of the Company" West
told his prospects, investigators said
| The whole company, every acre of
land We have leased are back of each
bond
Doubled Money First Month.
Investors in September, they said,
made 100 per cent the first month
Buyers of 81, 900 gold bonds in the
fall were given $4,000 in bonds in De-
cember Checks for dividends were
paid by a bank i'm Aurora Colo, then
in January the checks began to come
back marked insufficient funds"
Reports from towns near Chicago
having large foreign born popula tions
indicate that both Bischoff and Har-
rington reaped large harvests there
altho it is not yet known whether the
Western Land Operators company
made any inroads outside of Chicago.
More than 500 residents of Aurora.
H., and the Fox River Valley were
swindled by Bischoff, according to the
investigator, and more than twice that
number, they say. turned over sums
/ ranging from 500 to $4,000 to Har-
rington.
Hunt for Wizards Sister.
San Francisco, Feb. IA vigor-
GUS notice search MAS under Uav here