Evening star., 1933-06-24
Indictment of Four Will Be
Asked by District At
torney Rover.
SHORTAGE is PROBED
AT MT. VERNON BANK
True Bills to Be Sought Against
Employees of Institution and
One Customer.


presented evidence to the grand jury
concerning a $500 shortage in the
closed Mount Vernon Savings Bank,
United States. Attorney Leo A. Rover
announced today he would present the
Park Savings Bank case to the grand
jurors on Monday.
The disclosure of alleged irregularities
in the Mount Vernon Bank came as
surprise, there having been no previ-
GUS intimation that it was under in
vestigation. Assistant United States
Attorney Charles Murray, who pre-
sented the evidence, said there was
one case of check 'kiting" and two of
larceny. indictments are being sought,
connected with the bank and one
customer"
Shortage Believed $5,626.25.
Murray said the total shortage in
this bank was believed to be S., 5,626.25.
Mr.. Rover said he will ask the grand
jurors to return four indictments next
week in connection with the $1,700,0 900
shortage at the Park Savings Bank.
1llC lUuI dIc UcllCFCu " ulCluQC q
former Treasury Department official, a
former employe of the bank, and two
depositors It is expected the indict-
ments. will charge them with conspir-
ing to embezzle funds of the bank.
Mr.. Rover emphasized that the bulk
of the total shortage resulted frcm bad
loans, which are not subject to GRIM
inal prosecution. It is believed, how
ever, that the investigation by the De-
partment Of Justice revealed that some
customers of the bank had received
credit for deposits they never made and
that some notes securing loans were
Cancelled. although the loans had not
been paid.
Probing Another Phase.
Mr.. Rover said he is still investigat-
ing another phase of the Park Savings
Bank shortage, involving former bank
emplcye, and that an additional indict-
ment may be returned against him at
later date. 1t is expected that the
grand jurors, if they vote indictments
on the basis of the evidence to be pre-
sented to them Monday, will make their
return to the court on Wednesday, the
last day of their term.
The witnesses Monday, according to
Mr.. Rover, will include A. F. Jorss, presi-
dent of the bank; Mrs. Emily Downey,
head bookkeeper, and E. C. Sauer, an
accountant of the Bureau of Investiga-
tion, Department Of Justice. He said
he did not expect to call any members
of the banks board of directors
The investigation of the Park Savings
Bank was begun after Robert Stunz, vice
president of the bank, committed suicide
last March. After StunZ's death, a note
was found in his handwriting stating
that no other employees of the bank
were involved in any shortages in the
institutions funds. Despite this state
ment from the dead official, it is be-
lieved the Government has assembled
evidence which they feel should be
presented to the grand jury concerning
the activities of the former employe
mentioned by Mr.. Rover.
Three Shortages Barred.
The investigation at the Mount YER
non Savings Bank, Murray said, dis
closed three separate shortages The
first one, involving the check "kiting,"
was for $2,345, and the other two, de-
scrlbed by him as straight embezzle-
ments," were for s2,181.25 and S1,1O0.
Murray said the customer who was
kiting checks had a friend who was
employed at the bank. With the aid
OF this friend, the customer had cashed
checks on another bank, in which he
had an account, but not enough funds
to cover the check. While the check
was going through the clearing house.
however, the customer, according to
Murray, had time enough to deposit q
sufficient amount at his own bank to
cover the check when it arrived there
after going through the clearing house.
The Mount Vernon Bank cleared
through the Commercial National Bank.
When this latter institution, according
to Murray, closed before the general
banking holiday and when one of the
customers checks reached the clearing
house, it was sent directly to the bank
on which it was drawn instead of going
through the Commercial Bank. AS a
result, Murray said, the check arrived
at the home bank day sooner than
had been expected and before the Gus
toner of the Mount Vernon Bank had
deposited funds to cover it.