The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-10-02
PFAFF-HUCHEL
HEADS HELD ON
FRAUD CHARGES
Indicted on Six Counts by
Federal Grand Jury;
Free on Bond.

Walter p. Pfaf and Robert d.
Robinson, president and vice presi-
dent. respectively. OF the bankrupt
investment firm Of Pfaf 81 Hughel,
Inc. today were free on bond fol-
lowing indictment yesterday by a
Federal grand jury on six counts
charging use Of the mails to de-
fraud.
Mr.. Pfaf was arrested last night
st ms home. 290l N Pennsylvania
81. and freed later on $4,000 bond
signed rs J. K. Lilly and Nicholas
H. NOyes
Mr.. Robinson was arrested today
and released on $4,000 bond signed
By Norman Perry. Other persons
indicted will not be named until
they are arrested Val Nolan, dis
trict attorney, said
Mr. Pfah and Mr. Robertson
and others indicted will b. ar
raigned Oct. II and trial will be
about Nov. 4. jail sentences totaling
30 years Imprisonment are possible
II guilt is proved on all the counts
The defendants "wilfully and
knowingly made a scheme and arti-
fee to defraud. indictments charge
Nearly so persons who charged they
incurred financial losses through the
firms activities testified before the
grand jury.
Charges Are Listed
The indictments charge officers OF
the firm with the following:
That they induced customers to
pay them cash in advance for the
purchase of securities and that this
money was converted to the use of
the defendants.
That the defendants sold securi-
ties intrusted to them for sale by
customers and then converted the
proceeds to their own use.
That the defendants took securi-
ties Entrusted to them for sale and
purchase of other securities, did not
complete the transaction but con-
verted the proceeds of the sale to
their own use.
That the defendants converted to
their own use money derived from
the sale of securities intrusted to
them by customers for safekeeping
and trade for other securities.
Memoranda Revealed
That the defendants sent custom
ers credit memoranda indicating
that dividends we're being credited
to their account and occasionally
sent customers small checks pur-
porting to be dividend payments to
"lull these customers into a sense
of security"
The specific Federal charges
against the firm are based on six
such memoranda sent to customers
through the mails.
The first is an alleged stock pur-
chase confirmation sent Jan. to
Charles Cliff, Indianapolis; the sec
Ond a purpOrted prospectus of Sc
curities mailed Feb. % to Mrs. Lydia
A. Caldwell. indianapolis; the third
a purported credit of $3.50 repre-
senting dividends on 10 shares of
Standard Brands stock mailed April
l to Hubert Pirkle, Rockville; fourth.
a purported sales confirmation for
the account of Ernest H. Biddle, In
dianapoliS, mailed Feb. Is; fifth, a
letter to Roland A. Crawford, Co
lumbus. mailed March IL, and sixth,
purported memorandum showing
a credit to the account of Mary E.
and Sylvester Kirkpatrick, RuShville.
Filed Bankruptcy Petition
Once one of the largest invest
ment firms in the state, with
branches in Evansville, Fit Wayne
and Chicago, Pfaf 81 Hughel. Inc,
filed voluntary petition in bank
ruptcy in Federal Court April s. list
ing debts of S573,712. of which S216,-
O94 were said to be secured, and as
sets of s5766CO.
The State Securities Commission
revoked the firms license on April
II. An auction of the furniture,
equipment and customers lists on
April % brought only $500 and sub
sequent investigation showed other
alleged assets to be practically
worthless.
The Marion County grand jury
returned true bills charging officers
of the firm with embezzlement and
grand larceny on June %.
At aTaignment on July l, Grim
inal Judge Frank P Baker took
under Amusement motions to quash
the charges.
Several other persons were in
dicted on a series of Federal counts.