Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-17
SHAPIRO IS DENIED !.
ACQU|TTAL VERDICT
|. BY ADKINS RULING
Faulty indictment Charged
by Defense as Prosecution
Closes Its Case.
rs WITNESSES CALLED
IN REAL ESTATE TRIAL
Title Company President Is Last
to Testify, Telling of Deal
Involving 100000.

A motion for q directed verdict of
acuuittal for Jacob B. Shapiro, charged
with fraudulent use of the mails, was
denied today by Justice Jesse c. Ad-
kins in District Supreme Court.
Like in the first trial of Shapiro
held last December. the defense moved
that the case be thrown out because
Of defective indictment.
The first trial ended with directed
verdict Of acquittal by Justice Peyton
Gordon, the indictment charging false
pretense being held faulty because the
transaction made the basis of the case
had been improperly set forth.
Hidden Trust Charged.
In arguing the motion today Alvin
w. Newmyer, chief Of defense counsel;
set forth that the evidence introduced
by the Government failed to show that
the defendant intended to defraud
home purchasers by selling them prop
erty which was encountered by a
ground trust, for which the defendant
assumed obligations.
The motion was entered Immediately
after the Government closed its case,
three witnesses testifytng at this
mornings session.
Shapiro went on trial last Wednes-
day before a jury Of eight men and
four women. The Government is seek
ing q conviction on an indictment in
IL counts, charging that more than 80
persons we're induced to buy property
which had a first trust. and to give a
trust which they thought was second
encumbrance, but which was third
trust, because Of an alleged hidden
trust.
IS Witnesses Called.
The Government presented evidence
from approximately IS witnesses, many
of whom were purchasers Of property
from the former Shapiro company. OF
which the defendant was president. A
number of former Shapiro employees.
ranging from sales managers to ONCE
boys, were called by the prosecution as
witnesses. The statesmen recited how
they sold property which they believed
had only one trust. and clerks identified
letters sent by the defendant through
the mails to the home buyers.
This mail matter, Assistant United
States Attorney John w. FINELY drew
from these witnesses, was written sc
purchasers would not discontinue pay
mentS, or take steps to prevent Shapiro
from selling other properties under tn;
same allegedly fraudulent circumstances
The Government closed rather dra'
matically, with Louis Z. Breuninger
president Of the Real State, Mortgage
& Guaranty Title Co., on the stand
The witness testified as to how his com.
pany had loaned Shapiro 100000 and
received as security the property in
volved In this case. This transaction
was closed in october, 1925. the de-
PENDANT agreeing to pay the debt on II
monthly installments of $833.33.
Holds Payments Defaulted.
Mr.. Breuninger testified Shapiro fell
behind in payments. Extensions were
granted him, he said, but when the de-
faults continued he said he was forced
to call Shapiro into conference. The
witness quoted the defendants explana-
ton as to why he did not meet the
obligations as 81 intend to pay, but
am unable to meet 1t at this time"
The loan finally became involved II
court litigations and the witness teSti'
fled a settlement was agreed upon. Or
being cross-examined by Mr.. New
myer, the witness admitted his com
pany attempted to collect SIS 64 II
interest and commissions on this loan,
and because Of this the defendant
brought suit. Mr.. Breuninger ex
planned, however, that part of the prin
cipal had never been paid by the de-
PENDANT, and therefore his compan,
never received the $4,000 agreed upoI
as the commission fee. He also teS
titled that after the suit had been filed
Shapiro came to his offlce and apollo
gized for having taken the matter Il
court