Evening star., 1950-07-01

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the New York gamblers, were
called as witnesses. .
Erickson, now serving a two
year Jail term in New York for his
admitted bookmaking activities,
was summoned on the strength of
his reputed tie-in with Adonis.
The latter underworld leader re-
portedly had lost more than $780,
900 in stamp investments" with
Ambrose.
Not Specified in Counts.
But because he refused to sing
to the grand jury on grounds of
possible Standardization, Adonis
was not specified in any of the
indictment counts other than as
one name in a list of Is given at
the outset of the true bill as vic
Tins of the allegedly fraudulens
transactions.
According to the Justice De-
partment, sums totaling between
100000 and 100000 changed
hands with Ambrose. Of this
amount, the investors" failed to
get back between 100000 and
100000, the Department said.
The jury needed % typewriter
pages to bundle together all its
charges against the man who had
served the Post Office for II years
before his enforced resignation
last January. A former Army
colonel with four years wartime
service, Ambrose and his wife, who
is niece of Senator O'Mahoney,
Democrat, of Wyoming, and their
five children live in the 4700 block
lof Thirty-flrst street South, Fair
lington.
Charges In Four Groups.
The charges were divided into
four groups: 10 counts of using
the mails to defraud. seven of re-
ceiving money from the specu-
lators while under color of his
office" four of larceny after trust
and three of false pretenses.
Altogether, in the event of con-
viction on all counts. the charges
provide a maximum penalty of
1863 years in Jail and $4,000 in
specific fines. The under color
of Office" charge calls for a fine
amounting to the sum of the
money involved in each of those
counts.
According to the indictment.
Ambrose's operations went some
thing like this:
He would tell a potential Gin
vestor" that his influential posi-
tion in the Post Office gave him
special access to large amounts of
new commemorative stamp issues
and such collectors items as
issues which had been withdrawn
from public sale.
'Confided in Contacts
He would confide that he had
contacts with out-of-town dealers
and collectors, who would pay up
to $50 per cent of the face value
of especially desirable stamps.
Having once obtained money
from investors" he would repay
them their principal, plus a
profit. later to solicit more funds
from the same people. Sometimes
he would pay off certain "invest-
ors" from money he had received
from others under the same false
and fraudulent pretenses."
At one point during the grand
jury proceedings, when the case
briefly came out into open court,
Prosecutor John w. Fihelly
characterized this phase of the
Ambrose transactions as the
"Ponzi racket" named after one
of its more notorious early prac-
titioners.
Other Offenses Listed.
The indictment further listed
such elements in the offenses as
Ambrose's use of official Post Of
flee Department stationery, and
even the letterheads of the Post
master General himself, in writ
ing receipts to the spectators.
His Federal Offices also were
used in discussing the deals, the
charges stated.
Ten different dates were listed
in the indictments on which Am
brose allegedly used the mails to
write one letter and send nine
checks totaling $4,000, in the
furtherance of his transactions.
All offenses charged spanned a
l6-month period between Sep
tember l, 1948 and January 10,
1850. He resigned January II.
Ambrose operated under color
of his office in transactions in
volving five investors" These
were Henrik Mannerfrid, a New
York importer who suffered the
heaviest losses of any listed, $780,
900; r. Bruce Livie, a Baltimore
auto dealer and owner of a racing
stable. $4,000; Louis j. Berg, $20,-
900; Karl M. Meghrig, New York
stamp dealer, $500. and Ben
Rose, a Washington man, $4,000.
Amounts Held Converted.
The larceny after trust accusa-
tions stated that Ambrose accepted
these amounts, which he Con
verted to his own use":
Robert r. Rodenberg, Washing
ton real estate man and ex-head
of the Baltimore Colts football
team, $4,000; Mr.. Livie, $4,000;
G. H. Himelhock, ST., auto parts
dealer of Toledo, Ohio, $50, 900; AL
bert Glickfield, owner of the re-
Gently dissolved Gold Key Club
here, $4,000.
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