Evening star., 1954-04-23

NAU11tA1uCu E1Ok1l 7 ~ 0V oSO'/
It's survey showed that the rack
cts were spread over the entire
country.
"Not so many of these COM
plants come directly to the
Federal agency" Mr.. Olney
continued. But if you go to the
local district attorney, the local
police or business bureaus you
will find literally stacks of COM
plants. And this Is true in all
parts Of the country"
Mr.. Olney said that there are
o large number of cases of fraud
where complaints are never
made because one of the "tech-
niques Of the bunco man Is to
involve the victim in the viola
tion and that cuts down the
complaints. It is one Of the old
est tricks in the bunco racket"
He said that frequently the
racketeer would have the home
owner certify that the actual
work on the house had been
completed when it hadn't on the
promise that he would be cut in
on whatever profit was to be
made. Then the improvement
racketeer would skip town.
500 Items Listed.
Senator Capehart read into
the record a list of over 500
items for which FILA insured
loans could be obtained. 1t in
cluded air conditioners. televi-
sion antennas. barbecue pits,
bars, brooders for chickens.
green houses and even elevators
and escalators.
Mr.. Olney said very few COM
plants had been obtained where
the home owner obtained his
loan directly from the bank. The
vast majority of complaints
arose where the dealer or the
racketeer got the paper from
the bank and then had the home
owner sign it.
Mr.. Olney said they had re-
ceived complaints that bank Of
f1cials were involved in the
frauds. He cited a report that a
bank official pocketed $50 for
each loan.
Some times the official was
caught and fired and in other
cases they we're turned over to
police.
Number Grows.
The housing shortage follow
ing the war brought IAN army
of unscrupulous dealers" Mr..
Olney said. "and the number has
been growing since" !
along with the unScrupulous
dealers there rose an army of
slick statesmen with Cadillacs !
and fancy DRESS" Mr.. Olney
continued. known in the trade
as 'dynamiters' or suede shoe
hpys.' They have sold various
types of materials and products !
to home owners at two or three
times their regular price"
Mr.. Olney said that it would !
be incredible" for the FILA not
to know what had been going on. !
"The FILA takes the position"
he continued, that it is a public
service agency and not a lend
ing institution. Their position
is that they have no RESPONSE
bility in the matter so long as
there is no loss to the Govern
ment."
He said FILA did "go through
some motions" to clean up the
problem. For example, they pub
lished a "black list" of dealers
involved in shady transactions
as a warning to the banks.
This. however, Mr.. Olney said, |
did little good. because all the
operator had to do was to change
the name of his operation and
some do it regularly every 10
days" He said that one of the
most notorious racketeers in the
country was not on the FILA /
blacklist.
Reaches Climax.
The Senate inquiry reached !
a climax today as top officials |
laid the groundwork for q fur |
ther housekeeping at F5A.
The committee also called to
testify an FILA official who has
been concerned with loan insur- i
ance on large apartment prof. |
ects. He is LIE Grand w. Perce, |