Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-03
STOCK SW|NDL|NG
|. CASES TO Be TRIED
New York District Attorney
Has Nine Court Actions
on Calendar.
BY BRADLEY w. TRENT.

Special Dispatch TO The Star.
NEW YORK, July 3-Of interest to
investors throughout the country is
the information obtained from Federal
officials that they will bring to trial
this Fall the greatest number of al
legged stock swindlers in the history
of New York. Nine major cases, in
volving millions of dollars, are on the
calendar of United States District At
torney George z. Medalie.
During the boom period hundreds Of
swindlers infested the financial dis
trict like horde of seven-year locusts,
riding to wealth with the bull market.
They took more than $500 100000 an
nually from the gullible, but few Of
them were ever brought to justice.
Many Writs Obtained.
Injunctions were obtained by the
Attorney Generals Office in wholesale
quantities, but the percentage of GRIM
inal prosecutions was amazingly low.
AS was brought out before Commits
sioner Samuel Seabury 1t was almost
zero as far as the county district at
torney's Office was concerned.
Former United States Attorney Tut
dictments, but when he resigned his
Office to campaign for Governor he left
the pigeon-holes crammed with cases
awaiting trial 1t has fallen to Mr..
Medalie's lot to try them and he has
decided TO pitch in and clean the cal
endar. -,
Accordingly the Federal Building vii;
hum with activity this Summer. Postal
inspectors and assistant United states
attorneys have been assigned to cases.
The orders are to have them ready by
Fall and one, at least, is ready now.
flea trial Judge we're to be assigned
tomorrow the case of Charles v. Bob,
the mining engineer and aviation en-
thusiast whose investment trust col
lapsed with losses Of S6,000,OO0 10 IN
vestors, would be ready.
Among the defendants against whom
cases are being prepared are the toi'
lowing:
James M. Hoyt, owner of 10 per cent
of the stock of the brokerage house OF
Prince e. Whitley, and one OF the flrm
nine partners who was indicted on May
on IA counts, each charging mai
fraud. If convicted he may be SEN
fenced to 10 years in Atlanta and finec
$4,000. The firm of Prince e. Whit
| ely failed on October with liabilities
| of more than S20,000000 after its sus'
pension from the Stock Exchange.
Other Cases.
Former Magistrate George F. Ewald
| director of the Cotter Butte Mines
Inc. and five Others who were indicted
on July 9. 1880. for using the mails Il
defraud. Former United States Attorne.
/ Tuttle is asking for the indictments
| characterized the property as "a hole IL
| the ground" and charged that the public
had lost at least 100000 in the venture
AS a result of John Doe inquiry con
: Quoted by a Federal grand jury into tn
/ operation of an illegal pool IN stock o
| the Manhattan Electrical Supply Co
Inc. six persons. including Robert H
| Brown, a former president OF the com
pany. were indicted on october 3, 1880
This was the first indictment ever re
| turned against the operators OF an &C
credited financial pool. The schema /
said to have cost investors between So,
100000 and S4.000.000 through the ma
nipulation of the stock 50 as to inflat
| it from $6 and $40 to prices ranging
| from $50 to $40 share.
| (Copyrignt. 1919