Evening star., 1954-04-20
Two Accused
0fS25O,OOO
Realty Fraud
D. c. Couple Seized
In Cleveland on
Fugitive Warrants

Arrest Of a Washington couple
in Cleveland. Ohio, last night
gave Washington police what
they consider the solution to one
of the biggest real estate swindles
in District history.
United States Attorney Leo
A. Rover said the amount in
volved in the widespread manip-
ulation Of second trust notes by
four persons may total over
$25O,0OO.
The two arrested by Cleveland
police on fugitive warrants last
night were Grille c. Gaudette.
54-year-old linotype operator.
and his wife. Helen Gaudette, 81,
parents Of two sons, one IT; the
other S.
Two Free on Bond.
Two others. arrested last year,
are free on bond inconnection
with the case.
The Gaudettes are specifically
charged with forgery.
Cleveland police quoted Gaud-
cite as saying he paid a law
yer $4,000 in Washington to
straighten this out" The attor-
ney was not identified.
The two at liberty on bond
are Emanuel Macht, 40, a real
estate salesman, who was ar
rested last June after his re-
lease from a Maryland mental
institution, and Arlie L. John
son. 48, a notary public. John
son, who formerly had an office
in the $500 block of Livingston
street NV. is charged with no
tarizing second trust notes re-
portedly sold by Macht.
Authorities said the operation
worked this way:
Gaudette, who also claims to
be a lawyer. and his wife, a
notary public. would draw up
deed of trust and a deed of re-
lease for a piece of property
chosen at random and file them
with the recorders Office. That
would establish fictitiously that
they held a mortgage on the
property
After obtaining a receipt from
the recorder, they would issue
first and second trust notes on
the property and sell them to
spectators in commercial paper.
$4,000 Deal Reported.
One such deal, according to
Metropolitan Police 1t. David A.
Higgins. amounted to $4,000.
Arrest of the Gaudettes last
night climaxed almost 10 months
OF work by 1t. Higgins and Sergt.
John Fitzpatrick. They had been
tracing Gaudette through typo
graphical unions, where he had
obtained work as linotype oper-
ator. He was a part-time worker
on The Cleveland Plain Dealer
at the time OF his arrest.
The Cleveland Press said police
there had traced the couple to a
restaurant, then to University
Heights and lost them. They be-
gan a routine check of cab
drivers and found one who had
taken couple of that description
to an East Cleveland residence.
The Gaudettes had been living
there in caretaker status while
the owner was in Florida, the
Press said. They said they would
not fight extradiction to the Dis
trict.
The 5-year-old son was held
last night in Cleveland's juvenile
detention home and was to be re-
turned to Washington by the IT.
year-old.
William R. Downing, secretary
of the District Real Estate Com
mission, said today that only one
formal complaint has been re-
ceived by his Office, but Mr..
Rover said his Office has many
on file.
One Suit Filed.
One actual suit has been filed
by Benjamin Seigel, 25O3 |
Queens Chapel road NV. charg-
ing that Macht sold him two
fraudulent second trust notes
for total of $4,000.
Mr.. Seigel charged that Macht !
sold him second trust note on
property in the 1900 block of
Reno road NV. for $2,50O at 6 |
per cent interest in January of |
1852. 1t was agreed. at the time,
that the note would be paid off |
at SIS per month and it was
pointed out that the payments
were scrupulously met until Mr..
Selgel learned the notes were
fraudulent.
The complaint on file with the
commission was made by Archie
D. Sartwell. 1000 Twentieth
street NE. who said he pur-
chased 20 second trust notes at
a fare vo1llo of eos QA2 40