Evening star., 1956-03-10
Roads Fraud
Case Defense
"Opens Monday
Stote's Presentation
Ends With Story Of
$33,875 Profit
By CHARLES L. HOFFMAN

By CHARLES L. HOFFMAN
Testimony that Max Gutenberg
and Constas Gus Basiliko each
made $33,875 profit on four land
Speculation deals involving the
Maryland State Roads Commits
sion brought to a close the States
case in the roads conspiracy
trial that is in recess for the
week end.
The statement was made yes.
terday by Jerry Goldberg. a cer-
titled public accountant and a
nephew by marriage of Offen-
berg.
The State rested its case after
sending 13 witnesses to the stand
in five Days of testimony.
The defense case will get un-
der way Monday with the first
witnesses likely to be employees
iof the Roads Commission.
Two of the final witnesses for
the State were Goldberg and his
brother-in-law. Robert j. Rosen-
field. Both have been indicted
on charges of conspiracy but
were acquitted when the trial
opened Monday as States At
torney Alger Y. Barbee said he
was convinced of their innocence.
Testifies From Worksheets
Goldberg testified from ledger
worksheets prepared by him from
information given him by Offen-
berg last year. He said he had
been retained by Gutenberg off
and on between March and No
vember to fill out tax returns and
to do other accounting matters.
He also testified that accord
ing to his worksheets roughly 10
per cent was SKINNED off the top
of sales to the Roads Commis-
sion as commissions Gutenberg
paid Basiliko for handling the
transactions.
Basiliko commissions, accord
ing to Goldberg, amounted to
$12.926 on the four transactions
he listed.
Gutenberg and Basiliko are on
trial on charges of conspiracy to
defraud the Roads Commission
through land value manipula-
tion.
Told About Deal
Rosenfeld, Offenberg's nephew,
said that in March. 1854, his
uncle came to his shop and ad-
vised him that he was now the
owner of a piece of land near
Rockville. The 25-acre tract in
his name repeatedly was bought
for $4,000.
He said a few days later his
uncle told him he was giving
one-half of the tract to Goldberg
and added that if any Roads
Commission official contacted
him he was to say that he had
sold the property to Goldberg at
about $4,000 an acre.
Goldberg testified that "MSx
told me he had put some land in
my name" He added Gutenberg
advised him that if he were ap-
preached by the Roads Commits
sion he was to tell them he paid
$2,250 an acre for it. Both wit
nesses said they had signed op-
tions and deeds in the transac-
tions by which the Roa ds' Com
mission paid $4,000 for about 4
acres taken as right-of-way for
the new National Pike for DAM
ages to the remainder of the
property
When the checks arrived. they
said. they called their uncle and
he picked them up.
Testimony on Checks
The last State witness, Will
liam C. Strauss. assistant audi
tor of the National Bank OF
Washington, testified the two
checks were deposited to Often
berg's account.
Goldberg said his ledger
worksheet showed that Offen-
berg and Basiliko each made
profits of $14,368, 1888 and
SLIPS on three deals in the
Gaithersburg area. Besides their
profits five other persons shared
Ia like amount on the Gathers
burg area investment, Mr.. Gold
berg testified.
On the Goldberg Rosenfeld
deal, Mr.. Goldberg said Basiliko
and Gutenberg realized a profit
of $17,027 each.