Imperial Valley press., 1931-03-26
EXPOSE
DARING
RACKET
Prominent Coast Firms
Among Victims OF Fake
Insurance Plot
GANG ROUNDED UP
Plans Included Casing
Of Entire Block While
Robbing Bank

LOS ANGELES, March 26. U.D
Waving on preliminary hearing
and agreement to plead guilty was
made by two of five alleged MEM
bers of a $4,000 900 east-west insur-
ance fraud plot when arraigned be-
fore Municipal Judge William S.
Baird today.
The pair who elected speedy
trial were Fred Garrigue, an insur-
ance dealer of Venice and David
C. Wilcox, who was arrested in
Cleveland and returned to Los An
geles after a police disclosure OF
an insurance racket which victimiz-
ed several of the largest business
houses in Southern California.
Two others, who appeared for ar
raignment said they would fight
the charges. They are Otis E.
Carter, an insurance agent, who
claimed he had been framed, and
Mrs. Clara Frank, wife of Louis
Frank, gangster now on trial in
Long Beach in connection with q
gun battle in which a policeman
was wounded.
LOS ANGELES, March 26. W.p)--
An insurance racket which VIC
timized several of the largest bus
mess houses of Southern California,
and which included an asserted
plan to "gas" an entire block while
gang members robbed a bank, was
exposed today with the arrest OF
| charges.
Fraudulent earthquake and fire
insurance policies exceeding $3,000.-
600, were assertedly drawn and sole
by the gang to the Sun Realty Com
pany. the Hal Roach Studios, Casa
Del Mar Beach Club, National Au.
+. TO and Electric Company, Marencl
| Holding Company of Pasadena
jewellers Exchange Building and
the Los Angeles Professional Build
ing.
The five jailed were Mrs. Clara
Frank, wife of Louis Frank, St
Louis gangster, now on trial In
Long Beach for the asserted near
fatal shooting of a police officer
after the kidnapping of zeke Caress,
Aqua CaIiente handicapped; Otis
E. Carter, so; Fred Garrigue, 40;
David Wilcox, 43, and Dan F. Nor
ey, AZ.
Deputy District Attorney Hugh
McIsaacs said today that Morey and
Garrigue had made statements re-
garding their activities.
Investigation into activities of the
gang has been under way for sew
eral months, according to Captain
Paul Wolf of the police arson squad,
and Tom Cavett, district attorneys
Investigator. Burning of a virtual
" worthless oil we'll near Piru some
time ago, on which Wilcox asserted
ly had placed $4,000 insurance
premium, started the inquiry, they
said.
Confession Made
Wilcox also was asserted to have
burned an automobile in which he
represented was Persian rug
valued at $4,000, and TO have COL
lected on both policies.
Bill Bailey and Louis Frank. CO.
defendant in the Long Beach trial,
were asserted to have been hired
for $500 to steal valuable insured
rugs from Santa Monica organ
lied by the gang so that the insur-
ance might be collected.
Morey was said to have confessed
to McIsaacs that a gang of Is men,
equipped with fast cars, machine
guns and gas masks planned the
bank robbery.
The plan, McIsaac said, was to
"gaS" with bombs an area EXTEND
ing for a block in every direction
from the bank building, and the
bandits, protected by their gas
masks. would loot the institution
and escape
Garrigue was declared to have
started the insurance racket here
early IN 1929, using policies stolen
from insurance firms. Ali the al
legedly fake policies have been re-
covered, investigators said