Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-10
TRIAL OF SHAPIRO
FOR FRAUD OPENS
Jury of d Women and 8 Men
to Hear Testimony on
Property Sales.

Jacob Shapiro, president Of the
Joseph Shapiro Co. and the Shapiro
Construction Co., was placed on trial
this morning before Justice Jesse C..
Adkins and jury of four women and
eight men to answer an Indictment
charging fraudulent use of the mails IN
connection with an alleged scheme TO
induce purchasers Of real estate to buy
property encountered by hidden trusts"
The indictment, which is in IL counts,
alleges that more than 80 persons were
induced to buy property which they
thought had only one deed Of trust
on 1t and to give a trust which they
thought was second encumbrance,
but which was third trust because Of
the alleged hidden trust"
Acquitted of First Charge.
Shapiro was tried some months ago
on a charge Of false pretenses growing
out of one of the sales in which a
hidden trust" was involved. He was
acquitted by direction Of the court be-
cause Of q faulty indictment.
The jury chosen today includes Mrs.
Margaret Alsop, 1912 Veasey street;
RAYMOND F. Mcmahon, 1910 street
northeast; Charles l.. Mcdonald. 236
Tenth street northeast; Mrs. Isabel
FREEZER, 918 M street; Walter H. Herbert,
1908 Randolph place northeast; Hannah
G. Nash, 1918 Dumbarton avenue;
Bryant w. Meredith, 36l5 Warder
street; Bayard Keough, 1888 P street;
Harold Lewis, 1917 Irving street north
east; Ellis NJ McClees. 415l. Fifteenth
street southeast, and Mrs. Mabel Huro'
340l Sixteenth street.
Only five challenges were exercised by
the defense in selecting the jury. The
Government did not use any OF It's
peremptory challenges, Assistant United
States Attorneys John w. Fihelly and
Julian I. Richards announcing them
selves satisfied with the first IL persons
called into the jury box.
Prospects Questioned.
In qualifying the jurors, Justice
| Adkins inquired If the talesman knew
Shapiro, his relatives or present or
| former employees of his real estate or
construction companies. They also
were asked If they ever worked in a
real estate Office, title company or
mortgage concern or If any of their
near relatives were so employed. IN
curry was also made II they were in
vestors in the F. H. Smith Co., Swart-
Zell, Rheem g. Hensey Co. or the
American Bond and Mortgage Co
Jurors also were asked whether they
/ were connected with labor union
In this connection, it was explained
| that some years ago Shapiro had a
dispute with the union.
Assistant u. S. Attorney FINELY
made the opening statement to the
| Jury, setting forth what the Govern
ment expects to prove. Attorney Alvin
L. Newmeyer for the defense Is eX-
| pected to outline the defense, after
which introduction of testimony viii
follow.
Defense Outlines Case.
| Defense counsel in 45-minute out
| line of the case admitted ground
trust, amounting to 100000, of money
Shapiro had borrowed from banks te
| finance his business, and aenumber o.
homes purchased from him were SO
| incumbered, but we're later released.
The jury was given lesson in rea
estate transactions by Mr.. Newmyer
and in conclusion he cited the history
| of the defendants real estate activitie:
| in Washington. He said Mr.. Shapiro
started with nothing" in 1919 and
had accumulated a fortune in excess
of two million dollars during the next
| 10 years. When the so-called real estate
depression came in 1929, Mr.. Newmyel
said that all Mr.. Shapiro's fortune wa:
used in wiping out the company's
deficits. and today the defendant wa:
| just where he started from In 1919.
The court recessed for lunch wllilt
Earl Thompson, assistant treasurer OF
B. F. Saul Co., was on the stand.