The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-10-10
BLUE SKY PAST
OF REALTY FIRM
Barred BY STATE
Grand Jury Probe Into Affairs
of Local Company
Hinted.

Inc realty bulIOlHS anu 1udilSo
Company, against officers of which
charges of embezzlement have been
filed, has had a history of ups and
downs, records of the State blue
sky" commission show.
Fritz G.. Heinrich, secretary-treas-
urer Of the concern, has been released
on bond following his arrest. Police
are still looking for Lyle t. Laub,
president of the concern.
The business of the company, &C
cording to statements filed with the
blue sky commission, was that of
taking over" property with the un-
Outstanding that the company was to
buy lot and build house for the
owner of the property.
Capital Stock 100000
The concern was capitalized at
500, 900 with $4,000 of common stock
and $4,000 of preferred. La1b owned
one share Of common stock.
The concern was licensed to sell
stock June 5, 1928. The license was
revoked Aug. s, 1928. The revoca-
ton was annulled Aug. 81, 1923 and
the license was revoked again Tues
day.
When the license was revoked the
first time these reasons were given by
the securities commission:
"That the affairs of the subject COM
pany are in unsound condition.
THAT certain statements in the ap-
plication for the license herein re-
20
THAT certain published statements
of condition did not properly show the
fact as OF the time Of such statement.
Misrepresentation Alleged
THAT the subject company has not
proceeded precisely as represented in
the application for this license herein
revoked"
Records show that in the applica-
ton for a license Laub answered the
question. ''Have you ever been charged
with fraudulent acts2" In the negative
Under date Of Aug. 2. 1928, there
appears a report signed by Operative
4" declaring Laub has been in several
shady transactions and according 70
the record never showed a disposition
to meet his obligations"
Then follows Laub's court record
1t shows that on June 2, 1915. he was
fred SIS and sent to the State farm
on charge Of petit larceny.
On juno 10, 1918, according to the
report, he was fined $1,000 and costs
In the Marion County Criminal Court
and sentenced to serve one to five
years in the State Reformatory on a
charge Of issuing fraudulent checks.
a number OF minor cases in which
Laub was released also are shown.
Responsibility Shifted
The record shows that after these
facts were revealed, Ferdinand ].
Montani, attorney for Laub. filed an
affidavit taking responsibility for the
statements in the original application.
which bore Laubs signature under
oath.
G.. f. Olwin, secretary and manager
of the Better Business Bureau, de-
clared he had received numerous COM
plants concerning the Realty Finance
and Building Company. Scores of
property owners have turned their
homes over to the company. it was
said. Some of them, Olwin said, com
planned the company did not build
houses according TO specifications and
otherwise did not live up TO their
contracts.
Jury, Probe Expected
A grand jury investigation OF the
affairs of the company is expected.
Heinrich was arrested upon an affi-
davit filed by William Waters, custo-
dian OF the Indiana National Guard
Armory, Sixteenth st. and Boulevard
p. According to Waters attorney,
he invested his entire life savings.
s4,750 in house purchased from the
realty company. This was supposed
to be free of incumbrance, but Waters
later discovered there was a $4,000
mortgage upon 1t, the attorney states.
Waters Is a retired Army sergeant.
Attorneys for other clients of the
company have conferred with Prose-
cutor William p. Evans, it is said.