Evening star., 1933-07-15
CLIENT SUES BANK,
CHARGING FRAUD
Claims He Was Improperly
Induced to Move Account to
Mt. Vernon Savings.

Claiming he had been improperly in
duced to transfer his $12,800 account
representing his life savings, from the
Riggs National Bank to the Mount
Vernon Savings Bank and that he was
then defrauded CT nearly twice tina;
amount by the latter institution, PietrC
Flabiano, Ais Fourth street, yesterday
filed sut in District Supreme Court fol
total of 75,457 damages.
He named as defendants the Mount
Vernon Savings Bank. R. Golden Don
aldson. and 81 present and iormer Off
GERS, directors and agents of the bank
Fiabiano said in his suit that An
tonino Mistretta. assistant cashier oil
the Mount Vernon Bank, suggested tc
him on June 80 1928, that he transfer
his account from the Riggs Bank. He
alleged Mistretta told him the Mount
Vernon Bank had better facilities fol
investing in sound securities and that
it would pay per cent interest on his
deposit instead of the per cent paid
by Riggs. These statements, he alleged
We-c confirmed By Robert T. Highfield
cashier of the Mount Vernon Bank.
Wanted to Buy Bonds.
On February 2, 1929, Flabiano said
after he had transferred his account
he asked the bank to buy $4,000 worth
OF Liberty bonds for him with part of
the money he had on deposit. He said
he was advised to return to the bank
en- February 9. when he was advised
the bonds would be ready. When he
returned on that date. he declared, he
was told that the Liberty bonds had
not been purchased and he was advised
to buy instead Law & Finance Build
ing bends, secured on real estate in
Pittsburgh. Flabiano said he hesitated
to do this, but MiStretta and Highield
both assured him they were as good if
not better than Government bonds and
paid higher interest. Relying on these
assurances, he said. he consented to the
purchase OF the bonds.
The suit alleges the bank owned the
Law and Finance Building bonds at
the time having gotten them from
Donaldson, who was alleged to have
been personally interested IN their pro-
motion.
At that time, he says, the bonds were
of little Or no value and they are now
worthless.
Advised on Stock.
At later date. F,abiano said, Mis-
tretta told him he could make large
profits in stock deals through the bank
because that institution was in a posi-
tion to secure accurate information as
to stock market trends. Flabiano said
he told the assistant cashier he might
agree to this c. later date, but that
without any further permission from
him, Mistretta went ahead with the
stock purchases.
On october 80, 1929, he said he re-
caiVp0 a lnttc~ from the hank aGvjSinp
him it would De necessary to draw 81 500
from his savings account fer additional
margin on the stock.
He saici he refused to be bound by
the stock transactions. but was told that
unless he agreed he would have to take
a loss and that the bank could impose
n lien en- MS bonds. which had never
been delivered to him. He said he was
told this loss might be avoided if he
would sign note for $500, pledging
his bonds as security. Because he was
ignorant Of financial matters. he said,
he finally agreed to sign the note. Later,
he alleged, agents of the bank, still i'm
posing en- his ignorance. induced him to
sign another note for S3,476 and to sign
IN admission that all the stock transac-
tons were joint ventures by himself and
MiStretta.
The suit says that all the acts Of the
banks agents were "Wanton. malicious,
wilful and premeditated" and done with
the intent to defraUd him. He asked for
S25 457 actual damages and $4,000
pun tive damages.
Fiabiano vas represented by Attor-
neys Sylvester J. Aquino, William B
O'Conneil Harry T. Whelan and W.
Bissell Thomas.