Evening star., 1962-01-25
BY ROBERT GRUENBERG
Star Staff Writer

BY ROBERT GRUENBERG
Star Staff Writer
The Illustrations in trying to
untangle the financial affairs
of the now closed Mutual Sc
curity Savings & Loan Associa-
ton have been disclosed by a
former bookkeeper for the firm.
In a deposition to court
appointed authorities the book
keeper, who has had 20 years
Sof auditing experience, said the
,aseven-branch firm:
/. Had thousands of dollars
drawn on it by Robert Harold
Symonds. the president, with no
explanation of the purpose for
which the money was drawn.
2. Released additional thou
sands to Arthur Peisner, a vice
president of Kentland Con-
struction Co., an affiliated
firm. Peisner. AZ, is an attorney
recently convicted of carrying
obscene literature across State
lines.
8. Had a total lack of an
effective bookkeeping system
keeping no formal records.
4. Could provide no explana-
tion for other thousands of
dollars drawn on it. Officers
were empowered until Septem-
ber, 1861, to write checks
on the firm and exchange them
for cash at any of the branches.
S. Had many other checks
drawn on it for unknown pur-
poses, including a $500 draft for
the Bowie Race Track.
Deposition Taken
The disclosures were made on
January 10 by Mrs. Reba j.
Smith of 1921 Mark drive,
Alexandria, Va. She got out of
a hospital bed in the Bethesda
Naval Hospital, where she had
been a patient for eight weeks,
to make the statement. Her
husband is in the Navy.
She was questioned by Jerome
E. Korpeck, attorney for Paul
M. Coughlan, Silver. Spring in
surance executive, who has been
appointed receiver for Mutual
Security.
! The deposition was taken and
/ filed in the Circuit Court OF
Montgomery County.
Mr.. Coughlan earlier had re-
ported that he found only $4,000
in cash remaining from the
$3.3 million which had been put
into savings accounts by some
1000 to 5000 shareholders
(savers).
Mrs. Smith said she began
working as bookkeeper on July
3, 1861, because, she said, 81
was told they Mutual Secu-
rity) wanted to set up a set of
books so they could have total
figures for the Internal Reve-
nue."
Names Supervisors
Her supervisors, she said, in
cluded Mr.. Peisner, Mr.. Sy-
monds, Joseph Gilbert, whom
she identified as controller of
the firm, and Morton Lifshutz.
(Rabbi Morton Lifshutz OF
7746 Sixteenth street NV,
told The Star last November
that he once was treasurer of
the firm, but left it six months
earlier. Although ordained, he
is not affiliated with any con-
gregation, he said.)
What did you do Tin setting
up the books ?" Mrs. Smith
was asked by Mr.. Korpeck.
II started back from the
start of each of seven branche.
-. and composed debts and
credits for each completely
up to date" she replied. The
questioning continued:
Q.-Are there any formaI
books of account for Mutua
Security?
A.-No, sir, other than th'
set of papers that I started.
Q.-What other companie.
were involved in your work?
A.-Wayne Investment Corp
and Kentland Construction Co
Q.-Wayne was the one con-
cerned with purchase anc
rentals; Kentland. was con
cerned with the construction o.
homes?
Alright, sir.
Q-With regard to your list
ing of checks issued by Mutua
Security, were there entrie!
made for which you had NJ
explanation as to the purpost
of the issuing of the checks?
Ayes sir about 20 PEI
cent.
The questioning then shiftet
to Mutual Security's account
at various banks. Mrs. Smitl
said there had been an accoun
of Mutual Security at .one o
the larger banks that hat
many checks issued which wer
not identifiable."
Q-Was it known to you a
any account in particular?
NJ Al merely gave it the no