Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-02
TRUSTED BANK AIDE
NAMED EMBEzzLER
Between So, 900, 600 and ST..
100000 Believed Lost in
Chicago Institution.
BY the Associated Press.

BY the Associated Press.
CHICAGO, September 2.-Walter
Wolf, AZ, for 20 years an employe of
the Continental Illinois Bank IL Trust
Co. today faced the possibility of pros
ecution on charge Of embezzling q
sum estimated In some quarters as high
as $2,000000 and in others as low as
81 100000
He was held in custody of private de-
tectives at q hotel, and confessed, bank
ofheials said. Lloyd's of London, which
carried the bank employees bonds. esti-
mated the amount at 100000. Re-
ports current in La Sale street placed
the figure at $500, 900 Bank officers
said 1T would be impossible TO estimate
ventory has been completed, but adj
mitted the defalcations were "substan-
tial; They predicted the Lloyds esti-
mate would be too high.
The ofncials said Wolf had confessed
10 carrying on his defalcations by
using an auditproof system over a pc
ROD OF IL years, but they added that
the bank itself, the largest in Chicago,
was protected against loss by Lloyd's.
Reynolds Issues Statement.
George H. Reynolds, chairman of the
banks Executive Committee, issued a
statement, which said, in part
Walter Wolf, manager of the cou-
pom department has confessed that he
has embezzled securities from the bank
over period of years. most Of which
nave been taken in the last two or
three years. These securities we're used
in speculations IN the stock and grain
market. For the most part the missing
securities were used as margins, and the
recoveries Will greatly reduce the
amount involved"
VOLTS system remained auditproof I'D
to the moment Of his confession. which
was brought about, not by evidence dis
covered inside the bank, but by suspi-
cions Of broker who wondered where
Wolf was getting the huge sums he lost
in his specuiations
Wolf. Reynolds said bsgan his speeu-
lations In 1919. At that time he was
employed by the old Illinois Trust a.
Savings Bank, which later. through two
mergers, became a part of the Contin-
entail Bank d Trust Co. He is accused
OF using securities owned by customers
Of the bank. The customer received a
receipt. A record was made for the
bank. But when Wolf took a bond he
would also take the record that went
with 1t. Thus, SO far as the bank was
concerned, there would be no record
that the bond had ever been deposited.
Hence an audit would reveal nothing
Bares Story to OhiciaI.
These bonds were placed by Wolf
with brokers as margin for his specu-
lations, the officials said. When a bond
had to be accounted for Wolf would get
it back from his broker, substituting
another
Wolf was forced to commit his major
thsfts during the stock furry of 1929,
Reynolds said.
The broker. bewildered by VOLTS APP
parently inexhaustible supply of wealth,
dropped in the bank to inquire about
his financial situation. report of this
reached Wolf. who was away on vaca-
ton. He returned home. called in a
vice president of the bank who was a
personal friend of many years standing.
and made his first confession
He was then taken before the execu-
tives Of the bank, to whom he is quoted
as saying
II will do everything in my power to
help recover what can be recovered.
After that you may dc with me as you
like"
He is married and has one daughter,
aged 12 years. He lives in a modest
River Forest suburban home.