The Washington herald., 1922-07-16
POOR INVESTORS
VICTIMS In REAL
ESTATE FRAUDS
Confidence Game Used in
Sales of New York and
New Jersey Lots.
SCHEME EXPOSED
Free Lots" Used as Bait to
Ensnare GulIible in
Trickery.

The amazing epidemic of swim
dies perpetrated on investors con-
tinues in new and surprising forms
One of the most strikingly consist
ent trickeries recently unearthed in
New York and New Jersey is a new
variation of old real estate swindle
schemes. developing out of the hous-
ing shortage. 1t appears also that
a number Of other organizations
are systematically defrauding in
nocent country-home hunters. says
a writer in S. w. Straus & Co.'S In
vestors Magazine.
One company purchased land in
several nearby New Jersey towns
and each tract was divided up into
lots of 2ox1OO feet. The organiza-
tions then hired so or so statesmen
and a number of girl canvassers.
Use Women Canyassers.
These young women would can
Vass from house to house in the
poorer quarters of town. seeking as
prospects ignorant foreigners, ex-
soldiers and widows of soldiers with
a small pension and government in
surance. The saleswoman would
describe in glowing terms a certain
subdivision of property far from
the noise and dust of New York
City. Then she would explain that
certain lots were to be given away
free to prospects who drew lucky
numbers.
The victim was asked to sign his
name and address on a card so that
he might have a chance to win the
free lot which. IL he won. would
cost him absolutely nothing but the
registration charges, the expense of
drawing the deed and other small
fees.
Free Lots" Awarded.
On returning to the office. the
girls turned this prospect" card
over to a salesman, and several
days later. the victim would receive
a call and hear the glad tidings
that he had drawn a free lot. He
would then pay the fees. which
amounted to $40. and arrange to
go on an excursion to see his prop
erty
Every Sunday. excursions were
held and attended by hundreds of
men and women who had supposed
ly won free lots. At the trial of
one of the swindlers. one witness.
a former salesman for the company,
admitted that the purpose of these
excursions was to induce the GUS
A.
sirable property. 1t developed that
the company kept within the petty
larceny laws by charging $40: $50
or over would have laid them open
to a charge of grand larceny. The
saIeman's poetic description OF the
property was backed up and sup
ported by the catalogue of a COM
pany of similar name in Michigan
engaged in a wholly legitimate bus
mess. which the statesmen Of the
free lot" concern palmed off as
their own.
Variable Scheme.
There were many variations of
this scheme, but none of them ap-
pears to have been anything but
means of defrauding these poor peo-
pie of their accumulated savings.
The free lots. it developed. were not
worth more than the $40 charged.
Another company was charged in
several cases with having taken sums
of money varying from $3.50 to $500,
as part payment on the construction
OF dwellings. after promising that
ground would be broken at once
when the specified sums were paid.
Later the customers were told that
the sums would have to be doubled
before work would begin or that
plans would have to be drawn and
paid for. Victims were given to un-
derstand that the contract could
not be carried out as first speci-
fed
There are a number of firms en-
gagged in this fraudulent home
building and free lot" business.
according to the authorities. 1t was
said that outstanding accounts of
over $1,000. 1000 appeared on the
books of one concern due from per-
sons upon whom free lots" and
then "purchasable lots" were un-
loaded.
-Four Million I'm Losses.
The attorney for the victims said:
There are about twenty-five of
these companies and they were
ready for a harvest from the poor
and unemployed this summer. The
revival of the old swindling schemes
Is direct result of the housing
situation. Persons living in hot,
expensive. city tenements jumped at
chance to live in the country. The
total amount involved may run as
high as $4,000. .00O."
IN