The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-12-14
RADIO AIDS HUNT
IN BIG SWINDLE
Lawyer Accused OF Taking
Millions In Clever Fraud
Schemes
BY JAMES 0pCLAIN

CHICAGO, Dec. 13.-Over the land
and far out on to the sea, the radio
is searching for Leo Kortez, suave
little Chicago lawyer, who is accused
of swfndling millions of dollars from
his invalid mother. his wife's rela-
tives and admiring friends through
mythical get-rich-quick investments,
which police declare constitute the
greatest individual swindle since the
Charles Ponzi hoax in New England.
The gigantic schemes promoted by
this office boy, who rose to wealth
and social position through his gift
of handling money, may involve
SIS, 900. 900, Assistant States Attorney
Stanley H. Klarkowski announced
Thursday night, Already a list of
Chicago people, many of them
wealthy. have been compiled showing
the investment of more than $1,000
600 in fake oil wells in Panama.
The Koretz family will turn over
100000 to be distributed among in
vestors the states attorneys office
was informed Thursday night. This
money, it is said, was distributed as
"a dividend" among close relatives on
the eve of Koretz' departure for
New York December 8.
Meanwhile Koretz with his mill
lions and possibly the woman in the
case" is believed to be speeding to
some foreign cline where he can
spend the profits of his dreams with
a greater degree of safety. A radio
! net has been spread across the At
| lantic, with all steamships asked to
watch for the Flying Fox" power
| full speedboat in which the rotund
making for Europe or for South
America. Letters found in desk of
Koretz' three luxurious office suites
here revealed negotiations for the
purchase of the Flying Fox, formerly
owned by Jacob H. Schiff, Charles
Rouss and C. K. G. Billings of New
York.
The tone of the letters indicated
Koretz favored purchasing the Fly
| ing Fox, provided it was fast enough
and able to make a long ocean
journey.
Detectives, however. picked up an
other clue Thursday night which may
reveal that Koretz is now en- route .to
Honduras, Central America. in a
three seated airplane. A broker pur-
chased a plane from local company
and few days ago "a dark short man
with a passport for Honduras" ap-
peared at the field for 1t, and with w
w. Myers, pilot, set out on his
| journey. The plane landed at Gun
tersville, Ala, Wednesday night, but
that is the last trace of it. A te1e-
1
vealed that "the boss" had left the
airship and gone to Atlanta by train
Koretz, before fleeing from
Chicago, just jump ahead of his
exposure. cashed 40 checks, for from
$4,000 up, on December 3. He also
withdrew $4,000 from his personal
account from a bank, which holds
his note for $4,000. now three days
overdue.
Employment of high priced execu-
tives to aid him in development OF
extension oil holdings in Panama
for which the Standard Oil company
offered $4,000, 900" caused Koretz
of the promoter and investors in
his rice land. timber and oil promo
ton schemes. cabled from Panama
that they could find no company OF
no oil land Investors here went
to the states attorney, and Koretz
main office was raided Wednesday
night. But he was gone.
Six of the victims of the vision
airy transactions added their names
to the state attorneys list late
1915 900. Two invested 100000 each
another entrusted 100000 to the
midwest Ponzi. Koretz' invalid
mother. criaically i'll as result OF
the exposure, put her savings OF
! $4,000 into the Panama oil bubble
and other relatives are said to have
| invested heavily.
In an inner room of Koretz
main office detectives found 50(
quarts of rare old pre-war liquor
Three Star Hennessey, Johnny Wal
ker, Gordons Gin and jugs of rye
and bourbon. In each of the five
rooms hung a picture of Abraham
Lincoln. and a legend in praise OF
Honest Abe" looked down on the
promoters desk.
More liquor, more pictures and a
number of love letters were found in
Koretz' private offices" at the
Drake hotel. A well thumbed book
was found on the desk; the title was
bunk
Detectives intimate the love let
tiers reveal IAN affair"