Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-01-30
j. 5. Rests Case;
Wi||ianls0pens
DefenseMonday
Bank Cashier Voices
Regret Over Looms
Made to Defendant

The Government rested its case
this afternoon against George H.
Williams, bankrupt real estate man
who is charged with using the mails
to defraud veterans and sending
forged checks in interstate COM
merce. @
The defense will begin calling its
witnesses when the trial resumes at
1:30 am. Monday.
Earlier, Leo j. Naughton, cashier
OF the Seat Pleasant Md Bank,
testified today that several loans
were made to williams, with notes
and real estate put up as collateral.
Under questioning by Justice Alex
ander Holtzoff, Mr.. Naughton said:
"An can say is that If we had
known then what we know now We
wouldn't have done it."
Check Forging Charged.
The Government contends that
Williams signed several checks with
fictitious names, drawn on fictitious
accounts in several States These
checks, according to Cecil Heflin,
assistant United States attorney,
were deposited to Williams bank
account to give "a false credit"
Mr.. Naughton testified that after
the checks bounced, williams made
them good.
The prosecution entered into the
record statments showing that VIII
liams accepted down payments Of
from $500 to $1,000 from 1856 war
veterans who wanted to buy homes
in his three housing projects in
Prince Georges County. They are
known as Gwynn Park, Oakton and
Riggs Hill Manor.
Robert w. Mccullough, defense
attorney, told the court the lists
were part of the involuntary bank
ruptcy statements filed by Williams
in December, 1916.
Parade of Veterans Continues.
The parade of veterans involved
in the deals continued today. The
first of them was Albert C. Hale, Of
40 Peabody street NE.
He testified that he deposited ST.
600, which he said he was told would
be refunded but was necessary as
q title guarantee for his home at
Oakton.
When he asked williams for his
ST, 900 few months later, Mr.. Hale
said, HE told me that II I could
hang on for a while he could get
out of this sweat he was in"
Another witness, Samuel H. Car
michael, of 4409 Thirteenth street
NE, told the court he was a sales
man for Williams and that on Will
liams' instructions he had told cli-
ents that their deposits would be
given back and that the housing
projects were approved by VA.
Mr.. Heflin said he agreed at q
meeting today with Mr.. McCul-
Tough to admit financial statements
which will make the appearance Of
several scheduled witnesses unnec-
essary.
These records, Mr.. Helm said, will
include statements of bank officials
from several States that will iden-
tlAy N1ISCAS W14C1l I1lc A1OfcTllIIlcIlb
claims Williams forged.
Witnesses yesterday included seven
veterans who testified they deposited
$500 or $1,000 with the Williams
company in 1916, when he promised
to build houses for them within six
months in Prince Georges County.
They declared the houses were not
completed and their deposits were
not returned.
They also said they were told by
Williams company statesmen that
the Williams projects had been ap-
proved by the Veterans Admins
tration as eligible for financing by
CT loans. Five other veterans testi-
fed to the same effect when the trial
opened Wednesday.
Morgan B. Callahan, veterans
loan officer for the Washington area
Of VA, testified earlier yesterday
that Williams never received such
approval and never applied for 1t by
submitting necessary plans or speci-
f1cations to the agency.