Evening star., 1962-05-21
7 Men Surrender
In S&L Indictments
$4,000 Boil Set;
One Asks Court
For q Lawyer
BY ROBERT GRUENBERG
Star Staff Writer

Seven OF l3 indicted savings
and loan figures surrendered
today in Montgomery County
Circuit Court at Rockville.
A two-judge bench composed
of Judges Thomas NJ. Ander-
son and Kathryn Lawler Shook
set $4,000 bonds on each Of
the defendants.
One, David Lerner, Of the
7l00 block of Thirteenth street,
Takoma Park, secretary Of the
Mutual Security Savings and
Loan Association. pleaded in
ability to provide bond and
also asked for a court-ap-
pointed lawyer.
I'm without funds. I would
like to ask the court to ap-
point an attorney" Mr.. Lerner
said.
What about the bond?"
Judge Anderson asked.
II don't know If I could raise
it," the thin. spare. bespectacled
man replied.
The judges and States Attor-
ney Leonard T. Hardy. who had
recommended the $4,000 sum
in each case. questioned Mr..
Lerner closely about his income.
Income Too High
He said he averaged $3.50 to
$3.50 a week in commission pay
mentS as a salesman, and that
his earnings last year approxi-
mated $1,000.
I'VE appoint attorneys where
the earning capacity (of a de-
.fendant) is almost nothing"
Judge Shook said.
Yours is $1,000 a year. If we
started appointing attorneys
lin such instances) Montgom-
cry County would soon be out
Of funds itself"
Mr.. Lerner finally decided to
get a professional bondsman to
place his bail, at a cost Of $3.50.
OF the seven defendants,
three waived reading Of the
indictments and pleaded not
guilty. They were Mr.. Lerner.
Arthur A. Peisner and Robert
Harold Symonds. all Of them
officials Of Mutual Security,
now in Federal bankruptcy.
The four others were granted
additional time before entering
official pleas.
They are Murray Michael,
president Of the Military Serv-
ice Savings and Loan Associ-
alton; Constas j. (Gus) Basi-
liko, a business associate Of
Mr.. Michael; Sherman Cohen,
attorney for the Family Saw
ings and Home Loan Associ-
alton. and Morton Lifshutz,
treasurer of Mutual Security.
Bond Cut Rejected
On behalf Of Mr.. Michael,
his attorney, Joseph Simpson
sought a bond Of $1,000, but
this was rejected. A similar re-
quest on behalf of Mr.. Cohen
also was refused.
All Of the defendants who ap-
peared with the exception of
Mr.. Basiliko, are charged with
conspiracy, obtaining money
under false pretenses, embez-
zlment, larceny and fraud by
corporate Misrepresentation,
according to Mr.. Hardy. Mr..
Basiliko faces the same charges
except corporate misrepresen-
tation.
Warrants were served on
the seven in the corridor Of
the courthouse after the hear
ing. They were taken to the
nearby county police station
and fingerprinted and photo
graphed.
The seven had arranged last
Friday with Mr.. Hardy, through
their attorneys, to show up
today.
4 Warrants Out
The States attorney said ar.
rest warrants were now out for
four other savings and loan
figures. d.
They are William L. Robin
son, vice president, and Louis
D. Goldman, president. and
James C.. White, accountant,
all of First Continental Savings
and Loan Association, and Ger
aid Golden Of Baltimore, a no.
tary, who Mr.. Hardy said was
involved with Mutual Secur-
ity's operation.
A 18th defendant, John G.
Persian, president of Family
Savings. will surrender Wednes-
day, Mr.. Hardy said.
The 18th person indicted, j.
Kenneth Edlin, is serving a six
month term at Lewisburg Fed
eral Penitentiary for mail fraud.