Evening star., 1948-02-05
Williams on Bail
After Conviction
|nHousingF Fraud
Sentence Set Feb. 20
On s Counts Involving
Deals With Veterans

George H. Williams today
faced up to rs years in Jail or
fines up to $71,000 for fraud in
connection with his abortive
efforts to build houses for war
veterans.
The dapper, smooth talking
former real estate agent was con-
!. victed on eight counts of a Fed
ersl indictment late last night, after
District Court jury deliberated
for nearly six hours. Seven Of
the counts charged Williams with
| sending forged checks in interstate
commerce with intent to defraud.
In an action which both defense
and Government counsel said ap-
peared to be compromise ver-
dict" he was acquitted of two
charges of using the mails to de-
fraud and found guilty on a third
-eosnt that was almost identical.
Free on $1,000 Bond.
williams, who is 80 and bank
rupt, win be sentenced by Justice
Alexander Holtzof on Friday, Feb
ruary 20. He is free until then on
5000 bond.
Justice Holtzof said he would
take into consideration, during the
sentencing, that Williams did not
attempt to conceal any facts or
use any dilatory tactics" in his de-
fense.
The jury of 10 men and women,
which reported on two occasions
to the court that it was deadlocked,
reached a verdict within a few
minutes after Justice Holtzoff called
them at 800 pm. to deliver So
called "Allen charge"
This instruction, named for a
Supreme Court case of 1896, includes
warning that, if juror is not able
to agree with the decision of a
majority Of the jurors, he should
listen to the majority with mis-
trust of his own judgment"
Claimed VA Approval.
The three mail fraud charges
alleged. that Williams told three
veterans in letters that he had
obtained Veterans Administration
approval on homes for CT loans and
that he had obtained materials that
had delayed construction of homes
on which they had made deposits.
VA officials testified that he had
never applied for the approval.
Assistant United States Attorney
Cecil Heflin charged that Williams
accepted deposits of from $500 to
$1,000 from 1873 veterans on homes
in three of Williams housing de-
velopments in Prince Georges Coun-
ty, Md. The homes were not built,
and more than 100000 worth of
deposits were not returned, he said.
On the other seven counts, Will
liams admitted he signed fictitious
names TO checks, drawn on f1cti-
tious accounts in other cities, which
he deposited in his bank account
at the Seat Pleasant Md Bank to
get false credit.
BY the time the checks bounced
back-from as far away as Cali
fornia and Washington State-Wil-
liams testified, he made them good
at the hank.
Defense Attorney Robert w. Nc
Cullough based his case largely on
pleas that Williams made some
horrible mistakes" but that they
all were made with the conviction
that he could finish his housing
projects and that he did not Intend
to defraud any one.
The main issue in all the charges
was that the Government had to
prove intent to defraud.
In his final argument yesterday
Mr.. Mccullough said he thought
the Williams case would never
have come to trial" If it had not
been that veterans lost money by
investing in the housing develop
ments.
The final witness in the case,
Mitchell Glassman. Post Office
inspector from Cincinnati, told the
court yesterday an audit of Will
liams' maze of financial records
showed that as of May /, 1946, his
company had assets of about $116,-
1000 and liabilities of more than
.$137,000. This was at about the
Isame time that Williams began &C
lcepting deposits from veterans.
Meanwhile, Samuel M. Green
lbaum, trustee in Williams bank
lruptcy, has filed an objection to
Having Williams discharged as
bankrupt. A hearing on the objec-
jtion will be held on date to be
announced by the District bank
ruptcy referee.