The Washington times., 1929-01-29
Misses
REVEAL
FACTS


PITTSBURGH, Jan. 2o Y.E.S.J.--.
With Charles e. Knapp; central fin.
ure In the 1920 900 Brotherhood Saw
ings and Trust Company swindle
here in 1926, and his wife, Irma.
awaiting arraignment before the
United States commissioner here to-
day on warrants returned by the
Federal grand jury in the southern
district Of New York, two other Pitts.
burghers were expected to be IN Gus
tody here before nightfaIl.
The arrests and subsequent de-
velopnentg promise to open nation
wide investigation into thefts OF mil-
lions OF dollars worth of liberty
bonds in mail and bank robberies.
Salesman Sought
Knapp and his wife were arrested
here late yesterday, while il is un.
derstood that BENJAMIN Diamond,
who figured with Knapp in a bar
gain bond deal that wrecked the
Labor Bank here in 1926, has prom
ised through his attorney to give
himself up today. The fourth per-
son sought for questioning is Leo
Gallagher. a bond salesman.
Diamond, Mrs. Knapp and GaIia-
CHER are named In the warrant as
co-cOnspirators with Knapp and
Romea FOrlfni, OF New York, iii al@
legged conspiracy to dispose OF stolen
bonds In New York.
Thomas =. TodareIIi. Assistant
United States Attorney in New
York, came here in connection with
the investigation, and conferences
with Federal authorities here led to
the Knapps' arrests.
Today's developments are the re-
suit Of two and & half years of
lnYestig igatfon, following the brother.
hood bank swindle, in which Knapp
disappeared with $320,00O he col..
lected for bargain bonds from
bank officials. He later pleaded no
defense in the case after most Of
the money was recovered. and served
Is months in Western penitentiarys
In Canada Deals
Knapp's refusal to testify at d
trial lead to reports that he wa3
involved In q deal III HamiItons
Ont, alleged to have been planned
in New York. Alleged deals between
Forlini, Knapp and Diamond in,
New York in 1925 were investigated
The bonds Knapp sought TO sell in
the Canadian City were alleged "a.
have been stolen in a hank robbery
in Centervf1le. Mo-, in 1925
Knapp escaped arrest in Hamila
ton. but FOrIini was returned to
New York and later given i term ia
Atlanta penitentiary. At that time
Foflini talked Of bond theft
ring which he said had handled
so, ,000, 900 worth Of bonds. The.
local deal followed, snd then came
another Federal investigation, dur.
Ing which Forlini was returned to
New York to testify before the
grand jury.
The Knapps win be taken to New
York after being arraigned here to-
day, according to Federal plans.
The Inside Story
Forlini Is alleged to have prom.
ised to bare the inside story Of the.
bond deals after being told that
Knapp was responsible for his ars
rest and conviction IN the Hamil.
ton deal According to authorities,
Knapp appeared at q Hamilton
brokerage firm and sought q loan.
offering Ldberty bonds as collateral.
Forlini was arrested at that time
charged with having the stolen
bonds in his possession. Knapp,
was alleged to have "squealed'' on
F,orIini.
Knapp's tactics in the Brother
hood bank swindle here were sinli.
lar. He took the $4,000 from Ro.
land A. McCrady. bank president
and disappeared. Arrested later,
be admitted that the money was
buried III the yard OF Eddie Good.
fellow, q boolxmal1er, at Perrys.
Vile. Pa. Here all but $50 200 was
Goodfellow was con.
victed in the case. while four bank
officials were indicted, but found
not guilty Of conspiracy.