The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-11-24
WORLDS BEST
SWINDLER NOW
UNDER ARREST
kOretz, Said to Have Left
Chicago with $2,OOO,OOO
Profits, Is Found
WAS LIVING IN LUXURY
Bought House Near Halifax,
Nova Scotia, and Told
Friends He was Retired

Chicago, Nov. 24.-Lco, c. Koretz,
called "the king of swindlers" and
''peer of all confidence men," will be
returned here the latter. part of this
week or soon thereafter to explain
the mysteries of his disappearance
with millions Of dollars of prominent
Chicagoans and others who had Civ
en- him funds to invest in mythical
Bayano River syndicate in Panama
which he claimed to be $l,000,00C
concern.
This announcement was made here
today through the office of States
Attorney Robert E. Grove, who last
night received word of the arrest OF
Koretz at Halifax, Nova Scotia, where
he has lived since his disappearance
He was arrested on a charge of using
the mails to defraud.
Koretz, with $2,OO0,OO0 in cash il
n handbag, disappeared IL months
ago, leaving his wife and family and
other relatives and many friends
with nothing more tangible thar
his Bayano corporation which was
identified after he left here as tht
"Bayano bubble"
In H(lifax Koretz had assumed the
poise and popularity which made hin
favorite here and with which he
cultivated many Of his clients.
Buys Fine Home
Arriving at Brookfield, a suburt
of Halifax, he purchased a home Of
$4,000 and improved it to value o1
$4,000 and named it "Pinehurst."
"I'm a retired business man." hi
told his new friends, who knew hin
as Lou Keyte. He took an interes
in civic affairs and spent money Law
ishly. His suavity and generosit!
brought many friends, to whom h
explained that he was in poor healtl
and had been advised to move t
Nova Scotio. He Joined many clubs
including the Royal Nova Scots
yacht squadron, and was reported t.
be retired millionaire. He wa
scheduled to make an address in
church, according to word received
here.
Koretz, no longer the smooth shaw
en-, horn trimmed bespectacled swind
lers as police circulars described hin
throughout the world, grew a beard
explaining it was necessary to cove
scar resulting from an infectiv'
jaw.
Reported He Was Ill
At the time of his disappearance j
was reported he could not live Ion,
in another climate or without car
of his family because Of an unname'
illness Koretz drew hundreds o
wealthy people to him and he ap
parently was not anxious to accep
money for investment in his OF
deals, often refusing to accept none!
from friends who begged him to "le
them in on it" as they wanted t.
make some money. Reports of his in
vestments and refusal to let friends
in, brought others to him. In SOM
instances they were successful, il
others they lost, for he fled whel
he reached his maximum in capital
leaving his wife and family in dir'
straits, it was reported. His brother
ers and sisters, wife and others, made
refunds of cash he gave him or help
restitution to many who had suffered
losses through his disappearance
Mrs. Koretz, for the past few months
has worked in an envelope addressing
firm, as saleslady and other EN-
ployment, continually expressing he
belief that her husband was no
guilty of any intentional wrong-do
ing.
At the time of Koretz's disappear
ance, when friends were insisting OF
some report or accounting of funds
he arranged for trip to Panama
paying all expenses. While the!
were in South American territory HI
fled and they returned with th'
word that Kortez's Panama bubble
has burst and that all his invest
ments must have been a dream.
Thorough Hunt Made
A thorough hunt was made fol
Koretz. Hundreds Of clues which
were found to be fruitless had bcel
investigated since his disappearance
December last. At one time he. wal
reported ell route to Africa, again tt
Argentine, again to Mexico, but eacl
time investigation proved someone
had erred. Rewards finally aggre
eating $1,000 were offered by bank.
and trust companies and postoffict
inspectors, who tried to solve hi:
tangled affairs.
Koretz was confronted by Assist
ant States Attorney John Sbarba,
and an assistant in q hotel in Hall
fax Saturday. He was the same jo
vial, debonair sportsman, bit more
distinguished looking with his whis
kers trimmed in Spanish style ane
did not seem dismayed when he was
told he was under arrest, a telegram
to Mr.. Grove said.
"All right, boys, I'll go with you
You won't have any trouble with me-
he told his. captors. The best train
service available will bring Koretz
here, in the same style he left, ex-
cept that his return will be marked
by pair Of handouts,