Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-11
HOME PURCHASERS
ACCUSE SHAPIRO
IN FRAUD TRIAL
Tell of Finding "Hidden
Trusts" After Buying Prop
critics in District.
ONE DENIES RECEIVING
CERTIFICATE OF TITLE
Declares He Paid $36 for Paper
Which Never Was Deliv-
cred to Him.

The Government today began to in
troduce testimony from home pur-
chascrs in the District Supreme Court
trial of Jacob Shapiro, charged with
using the mails TO defraud. Most OF
the morning session was devoted TO
technical evidence offered TO show Sha-
piro had sold houses on which there
existed a hidden trust"
Three witnesse5-M Mrs Agnes Slattery
OF Boston. who formerly lived il =
home she said she bought from Shapiro
at 1922 Otis street: Roy II. BOnavta,
425 Madison street, and James S. Head
ley. 427 Madison Street-testifiCd they
purcha ed residences from the defend
ant in 1925 making cash payments and
agreeing to make monthly nstallments
on the first and second mortgages.
Denies Receiving Title.
Mrs Slattery and Bonavita testified
they received the deeds to their prop
erty through the mail. showing only
first and second mortgages They
testified they later learned from the
B. F.. Saul Co. holders of the mort
cages. that there also existed a hidden
u iSG III NI4IAl II AIltN NtIt ItSl lDllSID
Hesdley testified he deposited SIG
with Shapiro's company for a certifi-
cate of title, but never received it, He
said he continued to make payments
on the property until he became con-
WINGED the title was not 10 be delivered
He also said the $50 never was re-
turned
Headley testified that since the last
payment. in December, 1880, the prop
ertv had been foreclosed and he ex-
pected to move next MONDAY. He gave
as his reason for refusing 10 continue
the monthly installmHnts the fact he
had nothing to show it was my
property"
Continued PAYMENTS.
His payments continued. however
until last December. he testified a.
though he had been notified by the
Saul concern OF the hidden trust Had
ne known about the latter. he said. he
would rot have purchased the property
IN the first place
Mr.. Shapiro. formerly a large real es-
tate operator here. went on trial yes
terday in District Supreme Court. the
Government, through Assistant District
Attorney John w FINELY. charging he
devised scheme whereby certain trusts
on the land We're hidden from the pur-
chaSerS al the time sold The proSecu-
ton also contends Mr.. Shapiro. through
letters placed in the mails. attempted to
keep the purchasers ignorant OF the real
status OF their holders
Alvin NeWmyer. chief defense counsel
who deni-d any fraud existed admitted
the existence OF a 100000 ground
trust on the properties but said that q
provision permitted Mr. Shapiro to re-
lease this tr1lct NJ of
of property given as security when ne
saw fit, and that such was done in each
case
Mayne Resumes Stand.
Edgar NJ. Mavne, vice president Of
the Real Estate and Columbia Title In
surance Co, resumed the witness and
today, and continued 10 read recorded
titles in 20 transactions between the
home purchasers and the Shapiro Co.
The jury composed of eight men ana
four women. was furnished with copies
of general tabu!ation showing the
rarious deeds of trust and their
amounts
On cross examination, the witness
said his examination of the records
showed a ground trust had been re-
leased in l8 of the 20 cases read. The
two cases in which no release was shown
were those of Mrs. Edward C. Crumley
All Madison street, and Howard M.
Carter, APO Marietta place.
The Shapiro case resulted from an
investigation by a Senate District sub
committee last August, when certain
homeowners complained they had dis
covered, after purchases, the existence
OF unknown additional mortgages At
hearings conducted by the committee,
j. w. Jacobs, vice president of the B
F. Saul Co. testified that information
had been withheld from his company
by the Shapiro Co. concerning the sale
of property on which the Saul Co. held
a Gacond lien.
1naSmuch as many persons had pur-
chased homes from the Shapiro Co.
without receiving title. it was testified.
the B. F. Saul Co. undertook to inform
the purchasers of the existence of a
hidden trust to protect its own name.
Thousands Advanced.
1t was explained to the committee
that the Shapiro Co had been adj
vanccd hundreds of thousands of dol
lars" by the Saul Co., over a period of
10 years, for the building of a sub
division. The Saul Co., according to
testimony, had taken "a blanket trust
on the properties, which really became
Il SSNOLIN it'll, anu StlPClSSdCd lLlt SGC-
ond trust deed. which the purchasers of
the houses later signed. Unknown to
the Saul Co, it was brought out, the
Shapiro Co. had sold houses without
paying this second builders lien, the
existence of which was revealed only
when the purchasers, months later went
to the Saul Co. to have the first trust
renewed
This investigation caused Mr. Shapiro
to surrender to the district attorney s
office, and he was released in bail of
$4,000 on a charge of false pretense
in the sale of house. He was indicted
subsequently by grand jury on July 90,
1880, on two counts of false pretense.
and on August IA. four additional
counts were added. He was placed on
trial in December, and Il defense motion
or a directed verdict of acqulttal was
granted by Justice Peyton Gordon be-