Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-06
.S5Q,0D0,O1O FRAUD
CHARGED TOLEW|S
Operator, Found Guilty in
D. c. Last Year, Indicted
in Philadelphia.
tFrom Yesterdays san Star,

tFrom Yesterdays $40 starr
Accused of being the master mind"
IN an insurance underwriting racket for
mining enterprises estimated to total
between $50,0oo,000 and 800. 600 900.
Melville S. Lewis, who was found guilty
here OF similar fraud case last year,
was indicted in Philadelphia yesterday
on a charge of using the mails to de-
fraud, according to special dispatch to
The Star.
Lewis. who identified himself while
IN washington as Frederick E. Lewis,
was indicted here several years ago was
Irleo and convicted last year and last
FEBRUARY was sentenced to serve two
years and to pay a fine of $4,000.
Lived as Mystery Man.
He was released under $4,000 bono.
however, pending appeal from the de-
Clslon in District Supreme Court Later
ne returned to the Quaker City and
became known as man of mystery"
oy persons living near his palatial home
in Germantown, Philadelphia suburb.
"A high barbed wire fence, which sur
rounded his home, attracted con-
siderable attention among neighbors.
since little was known of Lewis to
his neighbors in the exclusive section,
ne sometimes was referred to as a man
of mystery.
Lewis scheme here. according to evil
dence presented at the trial, was that
ne was member of a firm said to have
been established in 1S43, having a cap
italization of $6.000,000, whose business
u was to float large bond issues. From
80 10 90 contractors here undertook to
90 business with Lewis and his asso-
GATES, but, it was charged, flaws were
found IN each case after applicants had
paid advance fees and no bond issues
actually were floated. The fees, 1t was
charged, were retained by Lewis and his
associates.
In the current Philadelphia case
Lewis Is charged by postal inspectors
with being the leader of a number of
alleged fake promotion concerns. which
have underwritten bonds for more than
a score OF individuals and corporations
Wnom the Government reports were
victims of the scheme.
Majority on West Coast.
| Most CT them are on the Pacific
coast, and in Western mining towns.
Lewis was sentenced to the two-year
term and fined $4,000 in washington
after he was convicted last June in the
Federal District Court of using the
HianS 10 ue1TduQ LOT another alleged
| confidence racket. He was released on
ball recently pending an appeal.
The other men named in the indict-
| ment with Lewis were Frank Brady.
| j. Clyde Heath and Edward r. Foote.
all of this city. The scheme they are
accused Of operating has Melted the
four men at least $1,000 in four years
| operations.
BY an extensive campaign they get
in touch with persons anxious to de-
| velop mining properties and arrange
for interviews with Lewis and Brady in
an of11ce here. After looking over the
prospects there, they would take
| them to an ONCE in another
building, where they operated under
the name of the Consolidated Constyuc-
ton Co., it is charged. When a pro-
spective customers confidence had been
gained by encouraging reports from the
research expert and appraiser he
would find himself facing a large bill
| for preliminary expenses. In most cases
he would pay the bill expecting to be-
come rich shortly as a result, postal
officials claim.