Evening star., 1947-01-15
.S144,O00 Fraud
In nSurp|usLaid
To WAA Official
Former Convict
Also Arrested in
Textiles Purchase
Arrest of a War Assets Admin

Arrest of a War Assets Admin
istration official and an ex-con-
vict, both of Washington, on
charges of fraud costing the
Government $144,000 was an
nounced by the FBI today.
FBI Director j. Edgar Hoover
identified the men as Louis v,
Dionne, 80, a WAA expediter, Of
1918 N street NV, and George A.
Gormley, so, a former convict, liv.
ing at 1902 Fulton street NV.
Mr.. Hoover said the two men
evolved a plan to obtain textiles.
consisting of woolen goods, through
alteration of sales documents at a
WAA site sale at the Washington
Quartermaster Depot in Alexandria.
Textiles Recovered.
The FBI chief said that $144,00
worth of the textiles were recovered
from New York storage firm to
which they were traced from q
trucking firm terminal.
The two men were reported to
have concocted a scheme at Wash
ington hotel bar last November
whereby Gormley was assured de-
livery of more high-grade woolen
goods from the Government ware
house than he had purchased and
paid for at the sale at Alexandria,
the FBI said.
Mr.. Hoover said Dionne's admit
ted participation in the scheme
netted him $1,000, paid by Gormley
through an Intermediary on De-
cember II, 1896
Reviewing results of the investi-
cation, Mr.. Hoover said: I
THE plan called for Dionne to
raise or increase the yardage
figures on the shipping order when
it crossed his desk in routine FASH
ion.
Purchase Described.
"On December 6, 1s46, Gormley
purchased $4,000 worth of the
goods, described as 10000 yards of
36-ounce wool cloth suitable for
clothing material, from a WAA site
salesman. He rendered In full pay
ment therefor his personal check
drawn on Washington bank. The
material was originally purchased
by the Government for $3.50 per
yard"
According to Mr.. Hoover the sales
document was altered during rou-
tine processing to show Gormley's
purchase as 10000 yards and the
amount paid to the Government as
$4,000 The altered document was
forwarded to the warehouse, and on
December 10, 10000 yards of textiles
| consigned to Gormley were trucked
, from the warehouse to Washing
ton truck terminal, the FBI director
continued.
1.-THE goods were then hauled to
New York City and stored, con-
signed to another owner" Mr..
Hoover added. "The new owner had
come to Washington on December
10. and through negotiations with
; Gormley had agreed on a purchase
price of $4,000 for the lot.
Two Checks Presented.
1.-TWO checks in the amounts Of
$25 900 and $4,000 were rendered
!, Gormley in payment Through in
), vestigation. the FBI located the
) fraudulently obtained goods ship
ment in the above storage company
and it was seized on January 49,"
Meanwhile, Gormley's check to
the Treasurer of the United States
had been returned by the bank
marked insufficient funds" and
!, Gormley was so advised, Mr.. Hoover
continued.
Upon receipts of the two checks
aggregating $4,000, Gormley re-
ceived cash for the larger and pur-
chased a cashiers check payable to
the Government for $4,000 with
the other check" the statement
said.
This he sent to the Government
to cover his original check on which
collection had been refused"
Arraigned this morning before
United States Commissioner Need
ham G. Turnage, Gormley was re-
leased in $4,000 bond.
: The FBI said Dionne was jailed
!, in Alexandria in default Of $1,000
bond after hearing before United
! States Commissioner Stanley King.
: Both are specifically charged with
causing a forged document to be
, presented to the United States Gov
: erninent.
Gormley, arrested at his home
!, yesterday, was sentenced to serve
eight years in connection with the
IS 900 swindle of q Washington fin-
: (See FRAUD, Page A-6)