Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-03-29
GrunewoId Faces 5-Yeor Term
On Conviction in Tax Fix
Sentencing Friday
For 'Dutchmun,'
BoIich, HuIperin

NEW YORK, Mar. 20 [Pl.-
Henry w. (The Dutchman
Grunewald and Daniel A. Bolich.
former assistant commissioner
of internal revenue, have been
convicted by a Federal Court
jury of a 100000 tax-f1x bribery
conspiracy.
Max Haiperin. Manhattan tax
attorney. was convicted with
them.
After the seven-week trial the
jury acquitted two co-defendants
Max Steinberg. former group
chief in the Upper Manhattan
Division of the Internal Revenue
Bureau, and Harry T. Scherm,
former agent in the same Office,
Steinberg and Scherm had
been charged with receiving
$40. 900 bride in the case.
The jury of seven men and five
women brought in it's verdict last
night after celebrating 81
hours.
Judge Archie o. Dawson set
sentencing for Friday.
May Get Years
Grunewald, 62-year-old former
Washington influence peddler.
known variously as "the Mystery
Man" "the Dutchman" and
"Gravel-Voiced Henry" faces
a possible maximum of five years
in prison, a $4,000 fine or both
The judge set $4,000 bail for
Grunewald, whose home is in
Chevy Chase, Md. Government
attorneys sought to have Grune-
valid held in Jail. They said he
has more than 81 million in
cash in safe deposit boxes and
might leave the country if bailed.
Halperin was continued in S.
900 bail and Bolich in $500.
Grunewald's bail had been $4,000
before the conviction.
Bolich, 81, a Brooklyn resident.
faces a possible maximum SEN
tence of eight years in prison
and a $4,000 fine. He was
convicted on more serious
count applying to Govern
ment official.
Convicted on 3 Counts
Halperin, SO, who lives in
Manhattan, could draw up to
20 years in prison and $4,000
in fines. In addition to the basic
conspiracy charge he was con-
victed on three counts relating
to impeding witnesses before a
grand jury.
Steinberg, So, lives in Beverly
Hills, Calf, and Scherm. As.
lives in Williston Park, N. Y, on
Long Island.
The Government charged at
the trial that the five defend
ants received 100000 in brides
to halt action in two income tax
cases. Bolich was accused of
quashing two possible tax prose-
cutions at the request of Grupe-
valid and Halperin.
Attorneys said last nights
verdict was the first time Grune-
valid was convicted on any
charge except contempt of court.
He broke into the limelight sew
eral years ago during congress
sional investigation of scandals
in the Internal Revenue Bureau,
and disclosures during that in
vestigation led to his prosecu-
ton here.
Tax Conspiracy Charge
The indictment on which the
five were tried charged that a
conspiracy to defraud the Gov
eminent was carried on from
1916 through 1851. The indict-
ment also charged that attempts
to hide the facts continued I'M
til the date of the indictment,
last October 25.
The prosecution presented
testimony that Halperin passed
100000 in bills to Grunewald
| in a Washington hotel January
IL, 1949. The Government said
the New York dress manufac-
turing firm of Pattullo Modes
had paid $4,000 in cash to
avoid possible prosecution in a
tax caSe-with Grunewald re-
ceiving the 100000 and Scherm
and Steinberg the rest of the
money through an intermediary.
Grunewald was convicted on this
count, while Scherm and Stein
berg were acquitted.
The other tax case involved
the Gotham Beef Co., which the
Government said paid Grune-
valid 100000 to halt a possible
tax prosecution. Halperin al
! legedly took his money to Grune-