The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-02-22
S209,000 n
FUNDS IS
CONE
Missing Promoter Alleged to
Have INDUCED in Financial
Orgy.
BY International News Service.

BY International News Service.
CHICAGO, Feb. 22.-With
Frank L. Taylor, president of the
First National Bank of Warren,
Mass, under arrest here today
charged with embezzling $4,000
of the banks funds, the authori-
ties asserted they are on the
trail of one of the most stu
pendous bank-wrecking rings
ever operated in the United
States.
Search FOrs Ringleader.
An active search was started for
Joseph B. Marcino, alias Biatia, alias
Moffere whom the police declare to
be financial wizard"-a second
Ponzi.''
Marcino, they assert, figured in
half a dozen financial collapses in
the last year.
Taylor. who was arrested, in a
fiat here where he had been living
since his flight from Warren, Mass.
said today that he was merely
''cat's paw of Marcino's ring,
Accused By Detectives.
Marcino. accord ang to Chief Elk
aminer Hadley, of the New York
State Insurance Commission, and to
records of the Burns Detective
lar transactions in two banks IN
California. He went East from
Chicago year ago and obtained
control of the Niagara Life Insur-
nee Company of Buffalo and the
Mechanics and Merchants Bank of
Philadelphia
The Insurance Company was
taken over by the Insurance Com
missioner on February II because
Of gross mismanagement." Last
week the Philadelphia Bank failed
with shortage Of $4,000.
Controlled Banks.
Marcino, using the name of
Moffere, according to the Burns
agency. bought control of the Bank
Of Perris, California. in 1917, and
when the institution left his hands
it had lost about $4,000. He is also
alleged to have obtained stock in
the Harbor City Savings Bank OF
San Pedro, Cal, from which he
realized a profit of $500. He is |
said also. to have had dealings with |
banks In, Ottawa, ILL.,. and other |
middle West cities. -
Taylor and Marcino's scheme was !!
to obtain a certain amount OF CON
trolling stock in each contemplated |
venture and to use dummy" stock |
holders in making a clean up" |
He said Marcino was assisted by !
his father-in-law, Abraham Goldman, |
of Chicago. Goldman was to be .
questioned today.
Questioned today, Taylor said he
had only So to his name. He has
telegraphed to his wife to come to |
nj II ic5h oI Oh q ON
way.
Calls Bank Examiners.
SMarcino disappeared from his |
wife and children Taylor said. |
''They live at Q35 Delaware avenue, |
Buffalo. His father-in-law, Abraham !
Goldman, told me he probably had |
fled to Italy or South America with |
all the money he could seize"
Explaining his connections with !
the Warren institution, Taylor added: !
"On January s, Goldman and !
1Iarcino bought the controlling in !
terest in the First National Bank |
at Warren, paying $4,000 for the |
stock. I was made president at $50 |
a week. To be within the law, / |
purchased ten shares of the bank !
stock. Marcino had a deposit box,
and he probably seized the key and
fled with the banks securities and
bonds week ago. When I dis
covered the key was missing, I ,
wrote Goldman, then came here. !
II asked the examiners to start. !
an inquiry. Goldman told me he |
suspected Marcino had double |
crossed us all. l want to go back |
and face my accusers, because I'm |
an innocent victim Of the whole
affair"