Articles describe heavy withdrawals connected to Charles Ponzi's collapse (bank paid out millions on Ponzi checks) followed by Bank Commissioner Joseph C. Allen closing the Hanover Trust Company (state action) and appointment of federal/state receivers. The closure appears permanent; receivership and bankruptcy proceedings followed. Dates are Aug 1920. Cause of initial run tied to Ponzi scandal (bank-specific adverse info).
Events (3)
1.August 12, 1920Run
Cause
Bank Specific Adverse Info
Cause Details
Withdrawals were driven by the collapse of Charles Ponzi's Securities Exchange operations and revelations of fraudulent activity; large Ponzi deposits and heavy cashing of his checks generated the outflows.
Measures
Bank honored Ponzi checks and paid out large sums (articles report $300,000/day and $5,900,000 total paid on Ponzi checks) until state authorities intervened; safe-deposit boxes used by Ponzi sealed by state.
Newspaper Excerpt
the Hanover Trust has paid out $300,000 a day on Ponzi checks; the bank paid out $5,900,000 on Ponzi checks during this run
Source
newspapers
2.August 12, 1920Suspension
Cause
Government Action
Cause Details
State Bank Commissioner Joseph C. Allen ordered the closing of the Hanover Trust Company after examiners found loans beyond legal limits and many doubtful or bad loans, and because of Ponzi-related exposures.
Newspaper Excerpt
Bank Commissioner Allen yesterday closed the Hanover Trust Co.; the bank was closed yesterday...the capital of the Hanover Trust Company probably had been completely wiped out
Source
newspapers
3.August 17, 1920Receivership
Newspaper Excerpt
Receivership proceedings against Charles Ponzi and his $15,000,000 get-rich-quick company began in United States District Court today...the appointment of a temporary receiver is sought by Attorney John Crowley ... to look after the interests of the thousands of speculators in Ponzi's notes. (Articles also report federal receivers examining Ponzi's and Hanover's books.)
Source
newspapers
Newspaper Articles (23)
1.August 10, 1920The Evening WorldNew York, NY
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PONZI IS BOASTFUL OF HOW HE FOOLED STATE AUTHORITIES (Continued From First Page.) and part of the $1,500,000 is assigned to çover his shortage. For the last tw odays the Hanover Trust has paid out $300,000 a day on Ponzi checks. "Hot air, all hot air, I gave him hot air and I shall give him more of it if he wishes; I shall ball him up more and more." Thus spake Charles Ponzi as he sat in a weaklegged chair-the only one in "the vacated office of the E. and E. Construction Company on the tenth floor of the Hanover Trust Building, at No. 268 Washington Streetwhen commenting on the alleged facts he had give to Attoreny General Allen of Massachusetts. Concerning his transactions in foreign exchange Joseph C. Allen, Bank Commissioner of Massachusetts had just ordered payments on all Ponzi checks stopped, and newsboys below were yelling: "Ponzi fails!" "Ponzi fails!" "Ponzi bankrupt!" "After what I have told Mr. Allen, he stops my business and all the poor people who have given me their money cannot get it back because he ties up my money not only here, but in New Hampshire, New Jersey, everywhere," continued the financial wizard. "My genius it is not appreciated. You gentlemen all know whatever else I am, I am not a damn fool. I give them bull-much bull. And I say if I could not meet my liabilities I would have what you call in English flew de coop two weeks ago." "Yes," said a reporter, "you wanted to 'flew de coop,' but you couldn't get your passports." "What!" gasped the little Italian waiter dishwasher banker financial wizard as his jaw dropped. He started. "Yes, yes. Oh, yes, I wanted to go La Bella Italia to see my old mother. near Parma, now that I was rich, but the business was SO good-oh, so many hundreds of thousands of lira. They come every day easy, easy-like-a dat. You know I could not go. Now the Government it spoil the trip, and I have my old mamma come to me. It is so nice to have her. "The public officials they are not ethical at all. They try to find out all about me. It is not fair." "Was it ethical to 'bull' the Attorney General?" "Ah, signor, that is another question. This is a free country. He try to ball me up and I ball him up. Is it not fair? I shall do it again. Yes, I give him 'bull'-plenty of it. And I give bull any time it suits me when they try to ball me up. "But I am solvent, gentlemen," he continued' after a slight pause in which he blew the cigarette butt from the holder and slowly snuffed it out under the toe of an immaculate buckskin Oxford. He reached to the floor for a cold bottle of ginger ale, but as he did so a deferential hanger-on gently took it from his hand, opened it for him and handed the drink in a glass. He was the picture of a vaudeville actor sitting in the wings between acts. On his right ring-finger flashed B. gaudy diamond. His shirt proclaimed itself silk and the Palm Beach suit was not smart but natty. INSISTS HIS ASSETS EXCEEDS HIS LIABILITIES. "My obligations are $500,000 and my assets are much more," he continued. "Right here in this bank (he pointed downward with his fore finger to the Hanover Trust Company on the first floor) I have $1,500,000 in cash, but they will not let me touch 1t. I have now on my person in this little bag another $1,500,000 in securities." "Then why don't you pay your claims with that was asked. "Ah, signor, that is my secret. I have my reasons. Charlie Ponzi is no damn fool, what?" "That you are not," a reporter answered. "You bet. Nobody knows Charlie Penzi's business better than himself. Don't you fool yourself about that, signor. You treat me nice-I treat you nice. When I open my business again you put all your money with me. And I make it grow, grow, grow millions. That is Charlie Ponzi-me and the newspaper boys are for the people. We are not the autocracy. "The autocracy stop my business becau % I earn big money for the people, and they cannot. Is it not so? They are what you call Jealous of Ponzi. Some day the people will rise." Here one could not help thinking of the early days of his notoriety when he passed along Washington and Tremont Streets and threw kisses to the yelping mobs that followed and lined the sidewalks to have a glimpse of the new wizard. "And now what will Signor Ponzi do since the autocracy has put its
2.August 10, 1920Norwich BulletinNorwich, CT
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of Boston, Aug. 9.-The response Charles Ponzi, who claims to have made millions through dealing in international postal exchange, to bankruptcy proceedings brought against him and to orders issued by the state bank commissioner today forbidding the Hanover Trust company to cash checks signed by him or his agents, was his declaration tonight that he would "not pay out one cent of money tomorrow" at his offices. Will Not Pay Notes. "Though I anticipate there will be a small run on my company after today's developments," he said, "I will not pay the notes that have run 45 days. Neither will I pay those which the depositors desire without any interest. But I will tell my depositors that the Hanover Trust company would gladly honor these checks and cash them, but the bank commissioner says that this cannot be done. "In the Hanover Trust company I have two accounts, my own personal account and another one. My personal account is over a million and a half, more than six times the amount I have out in notes. But the bank commissioner has refused to permit me to transfer my personal account to the other one, by what authority I do not know." In a statement to newspaper men earlier in the evening Ponzi discussed the statement issued today by Attorney General J. Weston Allen, which charged that inquiries by state officials had so far failed to confirm his statements that he had made his profits through the purchase of international reply coupons. "When Attorney General Allen starts in to ascertain what my liabilities are, I will give him all the help possible," he said. "And when he is finished I will show him the money to cover them. But he is endeavoring to find out my assets, where they are and how I made my money, and nobody knows that but Charley Ponzi, and nobody else is going to now. I will die before I disclose these facts to anybody. Maintains Solvency. "I have played fair with everybody. I have paid all regardless of the attack and the impediments thrown in my way by the state authorities. That I am solvent there is not the slightest doubt in anybody's mind. Why, then, should my investors be delayed in receiving payments which are rightfully theirs when I have cash available to do so? I am not going to run away. That is what the officials would like to have me do. I am a fighter and I am going to fight them to the end. and I am going to win my fight." Attorney General Allen tonight sent to Boston newspapers the following advertisement: Call to Holders of Notes. "All persons holding unpaid notes of the Securities Exchange Trust company or of Charles Ponzi are requested to notify, in person or by mail, the department of the attorney general, giving the number and date of the note, the amount
3.August 10, 1920Richmond Times-DispatchRichmond, VA
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FORBIDS BANK TO HONOR CHARLES PONZI'S CHECKS Wizard Also Denied Right to Transfer Personal Account to Trust Fund. EXPECTS SMALL RUN TODAY Declares He Has in Hanover Trust Company More Than Six Times Enough to Meet Outstanding Notes-Will Fight to End. [By Associated Press. BOSTON, Augus: 3.-The response of Charles Ponzi, who claims to have made millions through dealing in International postal exchange, to bankruptcy proceedings brought against him and to orders issued by the State Bank Commissioner today forbidding the Hanover Trust Company to cash checks signed by him or his agents, was his declaration tonight that he would "not pay out 1 cent of money tomorrow" at his offices. "Though I anticipate there will be a small run on my company after today's developments," he said, "I will not pay the notes that have run forty-five days. Neither will I pay those which the depositors desire without any interest. But I will tell my depositors that the Hanover Trust Company would gladly honor these checks and cash them, but the bank commissioner says that this can not be done. Claims Big Balance. "In the Hanover Trust Company I have two accounts, my own personal account and another one. My personal account is over a million and a half, more than six times the amount I have out in notes, but the bank commissioner has refused to permit me to transfer my personal account to the other one, by what au thority I do not know." In a statement to newspaper men earlier in the evening. Ponzi discussed the statement issued today by Attorney-General J. Weston Allen, which charged that inquiries by State officials had SO far failed to confirm his statements that he had made his profits through the purchase of international reply coupons. "When Attorney-General Allen starts in to ascertain what my liabilities are. I will give him all the help possible." he said. "And when he is finished I will show him the money to cover them. But he is endeavoring to find out what my assets are, where they are, and how I made my money, rContinvel on Second Page )
of Boston, Aug. 9. The response Charles Fonzi, who claims to have made millions through dealing in in( ternational postal exchange to bankruptey proceedings brought against him and to orders issued' by the state bank commissioner today, forbidding the Hanover Trust Company to cash checks signed by him or his agents, was his declaration tonight that he would "not pay out one cent of money tomorrow" at his offices. "Though I anticipate there will be a small run on my company after today's developments," he said, "I will not pay the notes that have run 45 days. Neither will I pay those which the depositors desire without any interest. But 1 will tell my depositors that the Hanover Trust Company would gladly honor these checks and cash them, but the bank commissioner says that this cannot be done. "In the Hanover Trust Company I have two accounts, my own personal account and another one. My person. al account is over a million and a half, more than six times the amount I have out in notes. But the bank commissioner has refused to permit me to transfer my personal account to the other one, by what authority I do not know." In a statement to newspaper men earlier in the evening Ponzi discussed the statement issued today by Attorney General J. Weston Allen, which -charged that inquiries by state officials had SO far failed to confirm his statements that he had made his prof1 its through the purchase of international reply coupons. "When Attorney General Allen starts in to ascertain what my liabilities are, I will give him all the help possible," he said. -And when he is finished I will show him the money to cover them. But he 1. is endeavoring to find out what my as). sets are, what they are and how I made my money and nobody knows 1that but Charles Ponzi, and nobody else is going to know. I will die betfore I disclose these facts to anybody L. "I have played fair with everybody I have paid all regardless of the at J. tacks and the impediments thrown in my way by the state authorities. The 1I am solvent there is not the slightest V. doubt in. anybody's mind. Why then, should my investors be delayed in reB. ceiving payments which are rightfully theirs when I have the cash available 1, to do so? I am not going to run away r, That is what the officials would lik to have me do. I am a fighter and -am going to fight them to the end fAnd I am going to win my fight." Attorney General Allen tonight sen J. to Boston newspapers the following iladvertisement: "All persons holding unpaid note E. of the Securities Exchange Trust Com pany or of Charles Ponzi, are request A. ed to notify in person or my mail, the k, department of the attorney general giving the number and date of the irnote, the amount loaned and M. amount due, the place where the loar was made and the address of the hold M. er. A copy of the note should be fur nished where possible. This informa tion is desired in completing the in vestigation now being made by th department." alls ies.
5.August 12, 1920The Richmond Palladium and Sun-TelegramRichmond, IN
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PONZICANNOT KEEP PROMISE; HELD BY U. Financial "Wizard" Arrested at Boston, Admitting, it is Said. He Cannot Make His Agreement Good. "RUINED?" HIS BANK (By Associated Press) Mass., Aug. 12.- Charles surrendered authorities, the Ponzi BOSTON, federal today defraud. charged himself with to using the mails to At the time Ponzi gave himself up hearing was being held before Judge sitBennett, a of the municipal court, ting in chambers on a police applica- was tion for arrest. The hearing secret. District Attorney Gallagher said Ponzi has surrendered because out himself unable to carry rehe that felt for the promises he had made demption of his notes tomorrow. Federal Auditor Edwin L. Pride stated today that Ponzi's liabilities Ponzi were upwards of $7,000,000. claims assets of $4,000,000. With state action against him, the young Italian turned a trick the by put- fedhimself in the custody of ting authorities at the moment thay were eral petitioning a municipal court judge. Ponzi apparently was alert as his to what was imminent and, leaving to home early this afternoon, hurried the office of the marshal. Pleads Not Guilty arraignment followed. Ponzi in His not guilty and was held 19. bail for a that he would the pleaded $25,000 He said hearing furnish deter Aug. surety. The surrender did not state authorities from their purpose that obtain his arrest. It was said the their to charge would be larceny and hearing continued while Ponzi waited for bail. Disposition of the Hanover Trust shared in the public interest company the fate of himself and his company, the securities exchange. A creditor's petition asking for the in appointment of a receiver, was filed the federal court today. Bank Commissioner Allen announced that the capital of the Hanover Trust company probably had been completely The wiped bank out. was closed yesterday Charles Ponzi had been a director up to yesterday. Guards were posted around Ponzi's away home to insure that people kept from him early this morning. Investigating officials forecast fur ther developments today to follow Pon- the disclosures made yesterday when zi admitted he had served terms of imprisonment in Montreal and Atlansome years ago. ta It was while Ponzi was dictating this statement the Hanover Trust company, in which he was a director which and shareholder, and through , had done a large checking busi(ness, was closed. Bank Commissioner Allen said his was due to findings by his exthat the bank action aminers had and made beloans "which were excessive yond the legal limit' and "many loans that are either bad or of doubtful value.' Ponzi resigned from the bank's directorate immediately after the institution was closed. The aduit of the company's books conducted by who was appointed by that Pride, is being Edwin expect- United L. States Attorney Gallagher, is ed be by tomorrow. to Attorney Allen's Replies to completed General in many holders of advertisement Ponzi's newspapers notes to with Mr. communicate requesting Allen quantities, continued to be received in large it was said. Since speculators brought notes from many persons in the crowds which made the run on Ponzi's office last week and said that they would hold them until maturity. it is believed that this class holds a substantial amount of the financier's outstanding obligations. In Ponzi's statement he admitted having served three years imprisonment at Montreal. Canada, for forgery claiming. however, that while connected with a banking instituion, he took the blame for acts that properly belonged on the shoulders of his employer. He again was sentenced to Atlanta for smuggling five Italthe country from of the immigrant ians violation for two into years Canada laws. He in this offense was due to the when released fact said that that from and the prison he was to do what he could to get had Montreal penniless a new start. Asks for a Chance. He declared that he was entitled his chance in the world despite the to "sins" of his former life, pointing to such men as Morse, who, released from Atlanta, now occupies a high position in the banking world. He said he felt he ought not to be the object of persecution by newspapers federal and state agents and others who were striving dilligently for his downfall. EVEREOO COMPANY
used the U. mails in a plan to defraud. With state action against him imminent, the young Italian financier turned a trick by putting himself in the custody of the federal authorities at the moment the state police were petitioning a municipal court to issue a warrant for his arrest. Ponzi, aparently was alive to what was imminent and leaving his Lexington home earl-- this afternoon hurried to the office of the marshal and asked to be taken into custodv. A warrant charging him with misuse of the mail was immediately served. Ponzi His arraignment followed. pleaded not guiltv and was held in bail for $25,000 for a hearing Aug. 19. He said that he would furnish bail. It was said that the state charge would be larceny and the hearing on the State's petition for a warrant continued while Ponzi waited for bail att he Federal building. The ramifications of Ponzi's bank connections took a leading place in public interest above the fate of Ponzi and his company, the Securities Exchange. Bank Commissioner Allen yesterday closed the Hanover Trust Co., alleging illegal operations and this afternoon issued a statement declaring thatt he capital of the Trust Company was not only impaired but in his opinion probably was wiped out. The anxiously awaited statement on Ponzi's liabilities as determined by reports by Atty. Gen. Allen by note holders, was forecast today. "Ponzi's liabilities already disclosed are in excess of the one halfmillion," he admits. "Our figures already obtained indicated that Ponzi's liabilities will run into the millions. Notes already submitted to us aggregate more than the $500,000 which he admits. We have 300 letters which have not been opened and it is my opinion that practically all of these letters contain Ponzi notes. More than 200 note holders have been here this A. M." Ponzi issued the following statement: "I had an agreement with the District Attorney to go tomorrow and meet my liabilities with cash. With the closing of the Hanover Trust Co. and with other funds tied up I find myself unable to do so. I felt it my duty to tell him and ask him to détain me." Federal auditor Edwin L. Pride stated this afternoon the Ponzi liabilities were upwards of $7,000,000. The federal complaint on which Ponzi was arrested set forth the allegation that the speculator on December 1st, 1919, and since, devised and operated a scheme to defraud the public by representing that he was in a opsition to pay his clients interest on money given him for investment at the rate of 50 per cent for every 45 days that the money was in his hands, that on the contrary throughout this time Ponzi was not in a position to make such a return and that it was his intent to defraud his clients for his own pocket. Gov. Coolidge exressed great surprise when informed today that state treasurer Burrell had refused to disclose the amount of the state de(Continued on Page Six)
7.August 13, 1920New-York TribuneNew York, NY
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Financial Wizard Said To Be "Hopelessly Insolvent" by Officials Who Scanned Accounts His Bank's Capital Believed Wiped Out Hundreds of Frantic Investors Vainly Plead for Payment of Notes Special Dispatch to The Tribune BOSTON, Aug. 12. Charles Ponzi, "get-rich-quick" financier, who held out the lure of 50 per cent interest in forty-five days to investors, was arrested twice to-day on charges preferred by both the Federal and state authorities. He gave $25,000 bail before a United States Commissioner on the charge of using the mails to defraud, and $10,000 bond in the city court on a charge of larceny. Other developments in the case today were: An estimate that some 30,000 persons intrusted upward of $20,000,000 to the promoter, who held out the inducement of great profits to be made in dealing in foreign exchange. An admission by Ponzi that he could not meet his liabilities. A statement by the Federal auditor of Ponzi's books that his liabilities, as already revealed, aggregate $7,000.000. Ponzi himself estimates his assets at $4,000,000. a total which the authorities believe to be too high. A statement by the State Bank Examiner that the capital of the Hanover Trust Company, of which Ponzi was a director, was not only seriously impaired, but probably wiped out. Evidenc that proprietors of small businesses, professional men and women, clerks and stenographers by the thousand had lent Ponzi money and faced ruin. A declaration of a Postoffice inspector that Ponzi's claim that he had made millions by manipulating international reply coupons was "a stupendous fraud" and that in six years dealings in these coupons throughout the international postal union would not aggregate $500,000. Filing of a suit for a receivership "in addition to the involuntary bankruptcy proceedings instituted several days ago. Declaration by Mrs. Ponzi that she would stand by her husband and that she wished he was "without a penny, that she could better show how deeply and truly she loved him." The announcement of Ponzi's arrest brought note holders in droves to the office of J. Weston Allen, State Attorney General. They fairly besieged the office with tears in their eyes, men, women and even children, hoping against hope that something could be saved from the wreck. Up to to-day they had clung to the blind hope that the "Wizard" would weather the storm and make good. But his arrest and frank admission that he could not pay his debts blasted their last hope. Flood of Notes Pours in Their pleas were pitiful, but nothing could be done for them save the registering of their notes with a view of ascertaining more definite figures on the "coupon king's" liabilities. Even the state authorities were amazed at the flood of notes that poured in. It confirmed their worst fears that Ponzi had disposed of a far larger number of notes than had been generally believed. The principal field of operations of Ponzi and his agents appears to have been New England and New Jersey. Ponzi's admission that he could not pay his debts after his talk of but $500,000 liabilities and assets of $4,000,000 fairly swept off their feet those who had stood by him through every attack, even after his penitentiary records had been made public and his favorite trust company closed. It put an effectual quietus on his talk of persecution. Ponzi surrendered at 12:50 o'clock this afternoon, admitting himself unable to meet his liabilities, was placed under arrest and arraigned before United States Commissioner Hayes. The announcement that the Ponzi financial bubble was exploded was made (Continued on page 5)
8.August 13, 1920Pine Bluff Daily GraphicPine Bluff, AR
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$20,000,000 IS PROBABLE LOSS ON PONZI PLAN Foreign Exchange Financier is Arrested on Two Charges CLOSING OF BANK PREVENTS PAYMENT State Money is Tied Up by Action of Bank Examiner-Larceny and Fraud Through Mails Alleged . . Boston, Aug. 12.-Some forty thou4 sand investors intrusted a total va. . riously estimated at from $15,000,. 000 to $20,000,000 to Charles Ponzi in a money-making scheme which postal officials today declared to be absolutely impossible of fulfillment. Ponzi surrendered to the federal officials this afternoon, explaining he was unable to meet his obligations because of the closing yesterday of the Hanover Trust company, where the bulk of his funds were deposited. He was arrested, charged with having used the mails to defraud, arraigned and held in bonds S of $25,000 for hearing August 19. Morris Rudnick, a real estate dealer, furnished the sureties. Meanwhile, a warrant charging Ponzi with larceny had been obtained by the state police in municipal court and upon leaving the federal building Ponzi was re-arrested and held by I the city in $10,000 bail for appearance August 23. Rudnick again went on Ponzi's bond and the latter was released. Developments followed thick and fast today. As Ponzi was being arraigned before a United States commissioner, Edwin L. Pride, who is S examining the books of the Security Exchange company far the federal e authorities announced that it already 1 had been shown that Ponzi owed e $7,000,000. State Attorney General Allen, who f is conducting a separate investigation, declared Ponzi's liabilities would run into millions. e State Bank Examiner Joseph Allen issued a statement declaring the capital of the Hanover Trust company, of which Ponzi until yesterday was a director, was seriously im1 paired and probably wiped out. State Treasurer Fred J. Burrell attacked the bank commissioner for not haying given him opportunity to withdraw state funds before the Hanover was closed and Governor Coolidge demanded that Burrell make known how much state money had been tied up by the closing of the trust company. Burrell notified the governor that the state deposit was f $125,000.
9.August 13, 1920Every Evening, Wilmington Daily CommercialWilmington, DE
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with larceny had been obtained by the State police in the municipal court and on leaving the federal building Ponzi was rearrested and held by the city court in $10,000 bail for appearance August 23. Rudnick again went on Ponzi's bonds and the latter was released. Developments followed thick and fast. As Ponzi was being arraigned before United States Commissioner Hayes, Edwin L. Pride, who is examining the book of the Securities Exchange Company for the federal authorities announced it had already been shown that Ponzi owed $7,000,000. State Attorney-General J. Weston Allen,, who is conducting a separate investigation, made known his opinion that Ponzi's liabilities would millions. a run aminer into Joseph the C. Allen issued of State the Bank statement Hanover Exdeclaring the capital Trust Company, of which Ponzi was until yesterday a director, was seriously impaired and probably wiped out. State Treasurer Fred J. Burrell attacked the bank commissioner for not having given him opportunity to withdraw State funds before the Hanover was closed, and Governor Coolidge demanded that Burrell make known how much of the State money had been tied up by the closing of the trust company. Later, Burrell notified the governor that the State deposit was $125,000. Ponzi's field appears to have included New England and New Jersey. This was made up largely of foreigners who were more interested in getting their money than in protecting their reputations as wise speculators. Anxious inquiries at itn newspaper offices and feverish COL orgations in downtown restaurants indicated that the proprietors of small businesses, professional men and women, clerks and stenographers by the thousand accepted the bait of "50 per cent profit in 45 days." Among the amazing disclosures wasthat the bulk of Ponsi millions were gathered in after the Postoffice Department had begun its investigation last February. In discussing the Ponzi case tonight, Chief Postoffice Inspector Hal P. Mosely said as far as their investigation had gone Ponzi had never done any business in International reply coupons. He said of to he against had Ponzi warned when hundreds inquiries began people come in last February that no man or set of men could manipulate or speculate in international reply coupons in any such manner as they alleged Ponzi had explained to them Further legal steps to protect Ponzi's note holders were taken today. In the Federal Court another bankruptcy petition was filed, this one being directed against "Charles Ponzi of Lexington, John S. Dondero of Medford, and Guglielmo Bertollotti of Parma. Italy, co-partners, doing business under the firm name and style of the Securities Exchange Company. Two similar actions already are pending, one a bankruptcy petition and the other seeking the appointment of a receiver In the earlier petitions no mention is made of Ponzi's partners. The actions are directed against Ponzi alone.
10.August 14, 1920Evening Public LedgerPhiladelphia, PA
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Bank, Allied With Ponzi Trust, Closed Continued from Page One orous examination of Ponzi's affairs will speak for themselves. Referring to the possible transfer Mr. of large sums by Ponzi to his wife. Pride said be taken away from her her. and "It can be. It does not belong to that was pretenses. to be it fraudulent It fraudulent will is money purposes. In obtained going concealed used under after for may be called Ponzi's what we shall reach the large amount transferred assets to or deposited in the name of Mrs. Ponzi. Wife Still Loyal from his wife the surrender by his Ponzi of his withheld before bondsman. going to news telephoued to her He he was remaining in Boston books jail night to go over Mrs. Ponzi in her during with that the auditor. reasserted his she said, will her He faith an is honest, husband. end. "and I by him to the stay second of the two petitions that The been filed to have Ponzi adjudged have bankrupt was pending in the Federal Court today. three latest petitioners. holders The notes for a total of $2625. of two partners John S. Dondero, of asked namely Ponzi's that of of Medford, Parma, Ponzi, Guglielmo Bertollotti. and also be adjudged A petition bankrupt. filed Italy, for a receiver to administer by Ponzi's affairs also has been creditors. Examination of the books of the Co., which was Ponzi's and in a chief Hanover depositary Trust which continued he was and director, was by members of staff. Mr. stockholder today Allen's Bank Allen, Co. Commis- who sioner Hanover Trust last in a statement to reassure in that closed Wednesday the depositors intended institution said and in other trust companies, lead Nothing has developed so far to me to believe that the depositors Hanover will lose one dollar. The In Trust Co. is the only trust company in New England that is involved Ponzi's failure." Run on Trust Companies district was concerned when a run was trust companies. yesterday The several financial small financial due. was it made in on to reports that other t n stitutions said. would be involved in Ponzi's today There was no indication in of affairs. continuance of withdrawals other a than normal quantities. has caused the state seal f on all safe to Trust Co. used He Mr. the be Hanover placed Allen deposit bank. by Ponzi boxes in or employes of the or was done as a the possible removal the valuables against said officers this pending precaution of securid ties of the institution's general's office been settlement The or attorney other affairs. has in a study of the be whether engaged determine action legal who statutes may had to compel all persons notes on unmatured. to turn cashed and taken to their Ponzi. the for matured money equal back a common fund among all d of Brightwell his distribution The into arrest noteholders. the and came as part of extensive of by the and of other investigation associates Ponzi's affairs authorities companies in offering high rates of interest on vestments. The Old Colony Foreign 10. h Exchange Co. was organized July under a deed of trust. with Brightwell, Raymond Meyers and Funnar E. R. Lindblad, of Sweden. as trustees. They six offered to pay 100 per cent in months on investments and claimed At- to dealing in foreign merchandise. be General Allen said that he knew torney that the company had sent large sums abroad. Brightwell Threatened The office here was closed after of a run vesterday. the like not seen during the the run on Ponzi's which frenzied of was offices. wildest Doors days were smashed. threats against a and were windows made Brightwell handle and . of police was required to e when the announcement was the company that on detail made the crowd by payment Mon notes would be suspended until day Brightwell was ordered by the of the building on Devonshire in which one of to vacate an offices street. trustees was located. the company's within hour and a half. Shortly afterward the offices were closed and the arrests were made. from Philadelphia. Provi II Springfield, dence. Dispatches Fall River. Haverhill Law- told New Bedford and in those cities d of the company. or offices rence. of the closing investigations of branch them. under way with a view to closing 0 Lynn. Mass. Aug. 14 By A. P.) The local office of the Old Colony d Foreign Exchange Co. was surrendered by the management today to Assistant District Attorney Edward F. Flynn im and Inspector John T. Curry. who of d mediately started an examination the accounts They acted by direction of Attorney General Allen. PROBE CAPITOL FIRMS
11.August 14, 1920The Richmond Palladium and Sun-TelegramRichmond, IN
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SHIP O'DREAMS IS HIGH AND DRY: TWO The MORE PONZI CRASHES 14 financial Charles BOSTON, Aug. been piloted by the rocks today ship that has high and dry state on officials determined of Ponzi, and was Federal efforts and to salvage endollars to intrusted in "50 his per made the cargo of Ponzi millions by thousands cent in of three C. Allen charge Polish vestors. months' Bank Commissione of the Joseps affairs conduct- of the bank private today took Industrial association. at 37 Cross street, of president ing in this a city. Chmielinski, the closed chief Henry H. Trust company. was last the Hanover of Ponzi, the wild associadepository Wednesday of the by industrial that value and tion. is Bank president Commissioner the association Allen said were of cash loans of doubtful left. either the bad virtually or no hopelessly there was its affairs were of the Hanover the sociation Trust is $13,775 interwoven He said company with The those and capital it had of deposits in the of about $350,000. Breakfast in Jail Eats his breakfast East CamPonzi ate county of jail the in United $25,000 States government, bonds. Middlesex bridge a prisoner in default of of the Old Colony Three officers a rival company Exchange Exchange Securities the Foreign of Ponzi's morning meal Charles wealth, commonwe each. company, concern had street their in jail, default prisoner of $50,an employee the 000 bonds Zorn, said Forelarters to be Exchange awaitof the was at charge Samuel Old Colony headquart of larceny He company, on a unknown a hearing persons in jail. ing of $500 had from spent the president company also Company's of the BrightHold three office Charles M. of the The were held are and treasurer office sales well, who president Raymond Meyers, Meyers, The men concern; Fred brothers. charges of manager, and Meyers technical are unlarceny known. of Albert agent. were The held of $500 on from persons Hurthat general. attorney assistant probab Transactions to the witz, the company's shown to have of dollars; figure. would be of thousandsigh surrendered authoribonds hundreds were whose set to bonds medical the with the custody alterhim was remaining another in federal bonds- the ties of find again by warnative if he could arrested blanket court issued with or, man of wealth being under the municipal in 53 commonwed in larceny charging rant totalling billing $24,000. Him Again could find counts, Arrest if Ponzi to face Will that elected of prowas bondsmatate said and bond The authorities another It by the would be asked. determined re-arrest hibitive figures were Weating said to financipal be should reathat the in custody. desire the to assets Ponzi he remain this being whatever transfer his and dissipate son for may for have creditors to the fear or auditor of seek on bail. the latter's might them if out Price, 000, 000,and Ponzi Edwir L. at of about her asserted accountability has faith in she honest, Mrs. stay two $4,000,000.001 "He is by him to peti- the end.' have husband hand will of filed the to have bankrupt in said, her The second been was pending tions Ponzi adjudged that court today. on July 10 the federal Company read Exchange 10 under 10 RayThe Organic Old Colony organic Bright July R. Lindcompany was trust, with Funnar R. They of deed Meyers and as trustees cent claimed in to be Sweden 100 per and handise. to that blad of pay estments he Attorneye company months fered dealine on in foreign Allen had said sent largs knew abroad. was after closed of like sums office here vesterday. in the the wildest frenzied run not seen on Ponzies smashea. The was were offices rightwell. which days of the windows Bauired detail crowd the Doors were and run of made poice when against was the companyed announce handle and was the made notes by would be until Monday Ordered Out on Devonshire within on was building of Building the company the trusBrightwell one of vacate after the of in which to shortly and street. was and were closed Provi New and ward hour the were offices made from Philadelapringfield. Haver hill of branch company and Fall Bedford those cities or in dence told of offices the closing of way the with a view born Atlanta, Ga., been conwith nected in them. was and has gas and the several Brightwears years various ago. mining, parts of
12.August 14, 1920The Union Daily TimesUnion, SC
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commonwealth on a blanket warrent issued in the municipal court, charging him with larcency in 53 counts, totalling $24,000. The authorities were said to be determined that the sensational financier should remain in custody, the principal reason for this being a desire to preserve for his creditors whatever assets he may have and the fear that Ponzi might seek to dissipate or trans_ fer them if out on bail. Edwin L. Pride, federal auditor of Ponzi's accounts has placed the latter's known liabilities at $8,000,000 and Ponzi claimed assets of about $4,000,000. Boston, Aug. 14.-Referring to the possible transfer of large sums by Ponzi to his wife, Mr. Pride said: "It can be taken away from her and it will be. It does not belong to her. It is money that was obtained under fraudulent pretenses, to be used for fraudulent purposés." Ponzi withheld from his wife the news of his surrender by his bondsmen. He telephoned to her before going to jail that he was remaining in Boston during the night to go over his books with an auditor. Mrs. Ponzi reasserted her faith in her husband. "He is honest," she said, "and I will stay by him to the end." Examination of the books of the Hanover Trust Company, in which he was a stockholder and director was continued today by members of Bank Commissioner Allen's staff. "Nothing has developed so far to lead me to believe that the depositors will lose one dollar," Mr. Allen said. "The Hanover Trust Company is the only trust company in New England that is involved in Ponzi's failure." The financial district was concerned yesterday when a small run was made on several trust companies, due, it was said, to reports that other financial institutions would be involved in Ponzi's affairs. There was no indication today of continuance of withdrawals in other than normal quantities. Mr. Allen has caused the state seal to be placed on all safe deposit boxes in the Hanover Trust Company used by Ponzi or officers or employees the bank He said this was donotary precaution against the moval of securities or other pending the authorient tution's affairs.
13.August 15, 1920Pine Bluff Daily GraphicPine Bluff, AR
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PONZI'S VICTIMS CROWD OFFICES OF ATTORNEY-GENERAL Holders of Notes for More Than Two Millions Seek Aid ONLY TWO BANKS ARE INVOLVED IN SCHEME Ponzi and Others Arrested in Collapse of Banks Unable to Furnish Bonds Boston, Aug. 14. Assurances that no further bank closings are likely as a result of the collapse of the financial dealings of Charles Ponzi was given tonight by Joseph C.'A1len, state bank examiner. "The Hanover Trust company and the Polish Industrial association are in the only banking institutions New England known to be in any way affected by the Ponzi failure," Mr. Allen said. No bondsmen were fforthcoming today for Ponzi or for three officers of the Old Colony Exchange company, the "100 per cent in six month' concern, who were arrested yesterday. Samuel Zorn an agent, off the foreign exchange company, was released in $2,000 bonds. 7 Bankruptcy petitions were filed against the Old Colony Foreign Exchange company today. Branch offices in several New England cities were closed by county authorities. S The officers of Attorney General J. Weston Allen at the state house were crowded throughout the day with note holders of the Securities Exchange company and the Ild Colony Foreign Exchange company. Presentation of these notes already has disclosed liabilities on Ponzi's company to the extent of $2,000,000. The possibility of a shake-up in the police department as a result of the bursting of the Ponzi financial bubble was seen in a statement issued by Police Commissioner Edwin U. Curtis. The commissioner said it had been called to the attention of departofficials that members of the department including superior officers had invested with Ponzzi, and that it was reported that some policemen had even acted as agents and received commissions. Work of Salvage Begins. The financial ship that has been piloted by Charles Ponzi was high and dry on the rocks today and federal and state officials made determined efforts to salvage the cargo of millions of dollars entrusted to Ponzi by thousands of investors in his "50 per cent in three months." This morning Ponzi ate his breakfast in the Middlesex county jail in East Cambridge, a prisoner of the United States government, in default of $25,000 bond. Three officers of the Old Colony Foreign Exchange company, a rival concern of Ponzi's Securities Exchange company, had their morning meal in the Charles Street jail, prisers of the commonwealth in default of $50,000 bonds each. Samuel Zorn. said to be an employe of the Old Colony Foreign Exchange company, was at headquarters awaiting a hearing on a charge of larceny of $500, also from persons unknown. He had spent the night in jail. The three officers of the company who were held are Charles M. Brightwell, president and treasurer of the concern; Raymond Meyers, office manager, and Fred Meyers, sales agent. The Meyers are brothers. The men were held on technical charges of larceny of $500 from persons unknown. Upon representation of Albert Hurwitz, assistant attorney general, that the company's be transactions probably would shown to have amounted to hundreds of thousands of dollars; the bonds were set at a high figure. Edwin L. Pride, federal auditor of Ponzi's accounts, has placed the latter's known liabilities at $8,000,000 and Ponzi claimed assets of about $4,000,000. In this connection Mr. Pride said: a "I am inclined to believe that great deal of money collected by Ponzi and his agents has been deposited in the names of others." Wife is Loyal. Ponzi withheld from his wife the news of his surrenderer by his bondsmen. He telegraphed to her before going to jail that he was remaining in Boston during the night to go over his books with an auditor. Mrs. Ponzi reasserted her faith in her husband. "He is honest," she said, "and I will stay by him to the end." The second of the two petitions that have been filed to have Pong zi adjudged bankrupt was pending in the federal court today. The three latest petitions, holders of Pond zi's notes for a total of $2,625, asked that two partners of Ponzi, John S. Dondero of Medford and Guglielmo Bertollotti of Parma, Italy, also be adjudged bankrupt. A petition for a receiver to administer Ponzi's affairs also has been filed by creditors. Examination of the books of the Hanover Trust company, Ponzi's chief depositary and in which he was h a stockholder and director, was continued today by members of Bank Continued on page Six
14.August 17, 1920The Washington TimesWashington, DC
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PONZI'SMONEY MAY BE BOGUS Federal Authorities Have Theory "Wizard" Used Counterfeit Exchange. BOSTON, Aug. 17.-Federal authorities, it became known here today, are working on the theory that there may have been counterfeiting ramifications of Charles Ponzi's "get-rich quick" scheme, either here or abroad. Attempts are being made both here and in Europe, the authorities say, to determine whether there has been any wholesale counterfeiting of marks. lire and other foreign money which might account for the vast sums Ponzi claims to have received from his agents overseas. Investigators declare Ponzi hoped to break the plan fostered by President Henry M. Chmielinski. of the wrecked Hanover Trust Company. to establish trust companies all over the country and to have affiliated with them a chain of automobile repair shops where parts of popular makes of cars could be had quicky at standard prices. Chmielinski, still under forty, one of the young American bank presidents. came here as an immigrant from Poland only a few years ago, and has had a meteoric rise. Besides the Hanover Trust Company he organized the local Polish bank, closed here Saturday by" State Bank Examiner Allen. He has successfully backed a number of such Polish financial associations in different sections of the cast. Chimelinski is American representative of the Polish Bank of Warsaw, according to local Polish bankers. Advices today from the West contain proof of Chmielinski's dream of a chain of trust companies across the continent. Receivership proceedings against Charles Ponzi and his $15,000,000 getrich-quick company began in United States District Court today before Judge Morton. The appointment of a temporary receiver is sought by Attorney John Crowley, chairman of the committee named by State Attorney General Allen to look after the interests of the thousands of speculators in Ponzi's notes. Investigation by State authorities today revealed that Ponzi has been defrauded of a large sum, running into the thousands, through the raising and counterfeiting of his notes. It was also learned that the authorities are seeking $250,000 worth of negotiable liberty bonds bought by Ponzi two weeks ago and of which no trace has been found. Mrs. Ponzi reiterated today her intention to surrender her palatial Lexington home, automobile, and everything in her possession which the authorities believes rightfully to belong to her husband's creditors.
PONZI GIVES TO RECEIVERS PART OF WHAT'S LEFT Boston Financier Turns Over To Federal Agents a Portion of What Remains 1 From Millions Received. (BY MORNING JOURNAL SPECIAL LEASED WIRE). Boston, Aug. 21.-Charles Ponzi turned over to federal receivers today part of what remains from the millions he received from investors in his discredited financial operations and went on the witness stand to tell about the rest. Little had been elicited as to his assets, however, when the receivers hearing was adjourned until Tuesday. Checks and securities which Ponzi handed over, as announced, did not greatly exceed a million dollars. Edwin L. Pride, accountant, who has been conducting the federal audit, again estimated Ponzi's liabilities at $7,000,000. Fonzi said he had additional assets. The only business of which Pride could find any trace, he testified, was the issuing of notes for the investment, plus 50 per cent. and payment of early notes by receipts from later ones. There was nothing in Ponzi's books, he said, to indicate any business in international postal reply coupons, as claimed by Ponzi. It was brought out that D. V. McIsaacs and D. H. Coakley of Ponzi's counsel had received fees of $25.000 each. Melsaacs explained that the Hanover Trust company, where Ponzi kent his principal account, had paid these sums on authorization from Ponzi. Ponzi's' replies to questions indicated ignorance of the conduct S of his business affairs. He did not a know the names of his agents, was t not familiar with his accounts in several banks and was in doubt how many persons were authorized to draw checks in his name, He said he left most of these things to Lucy Meli, the 18-year-old manager of his office. Counsel drew from Ponzi a statement of certain holdings not previously of record by the receivers. Among them was 1,600 shares of the Hanover Trust company, the O bank which collapsed. Among large payments he made he menM tioned $55,000 in settlement of the y claim of Joseph Daniels who beci cause he loaned Ponzi $200 early in his career. sued him for $1,000,sa 000 as a partner's share. S Ponzi said he was certain that W he had paid out to holders of matured notes or surrendered notes W an aggregate of $7,500,000.
16.August 25, 1920Arizona RepublicanPhoenix, AZ
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PONZI HEARING IS STORMY: CREDITORS DUE FOR BIG LOSS BOSTON, Aug. 24.-A payment of less than 50 cents on the dollar to the creditors of Charles Ponzi, if official estimates of his liabilities are correct, was indicated by his statement of assets at the receivers hearing today. Assuring the federal receivers that he had disclosed all he knew, Ponzi told of assets which Robert G. Dodge, counsel for the receivers, declared "were not worth anywhere near $3,000,000." The official estimate of his liabilities stands at $7,000,000. Ponzi claimed that he was solvent and had nearly four million of assets to meet his liabilities, which he set at $3,000,000. The hearing was stormy at times. Daniel H. Coakley, counsel for Ponzi. surrendered to the receivers, to assist in meeting creditors' claims, checks for $25,000 each, which had been given him and an associate counsel, as retaining fees. He said that when he took the money he thought Ponzi was a millionaire. He called upon the receivers and their counsel to join with him in working without fee, but his challenge was not accepted. Edward A. Thurston, one of the receivers, remarked: "If you thought this man had a million dollars left, do you suppose anybody thinks you would have got only $25,000?" "You are a liar when you suggest anything like that," exclaimed Mr. Coakley, jumping to his feet. Ponzi told of loans of $20,000 each to Henry Chminielinski, president, and William S. McNary, treasurer of the Hanover Trust company, which was Ponzi's principal depositary and which went to the wall with his collapse. His announcement that he had loaned $10,000 to Daniel P. Demond, treasurer of the Lawrence Trust company of Lawrence, was followed by Demond's resignation later in the day.
17.August 25, 1920Great Falls Daily TribuneGreat Falls, MT
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PONZI'S ASSETS NOT ONE HALF OF LIABILITIES Italian Made Loans to Officers of Banks Closed Down. Boston. Aug. 24.-A payment of less than 50 cents on the dollar to the creditors of Charles Ponzi, if official estimates of his liabilities are correct. was indicated by his statement of assets at the receiver's hearing Sunday. Assuring the federal receivers that he had disclosed all he knew. Ponzi told of assets which Robert G. Dodge, counsel for the receivers declared were "not worth anywhere near $3.000.000." The official estimate of his liabilities stands at $7,000,000. Ponzi claimed that he was solvent and had nearly $4,000,000 assets to meet his liabilities. which he set at $3,000,000. The hearing was stormy At times. Daniel H. Coakley, counsel for Ponzi, surrendered to the receivers to assist in meeting creditors' claim checks for $25.000 each, which had been given him and to an associate counsel as retaining fees. He said that when he took the money he thought Ponzi was a millionaire. He called the receivers and their counsel to join with him in working without fee but his challenge was not accepted. Edward A. Thurston, one of the receivers, remarked: "If you thought this man had a million dollars left. do you suppose anybody thinks you would have got only $25.000. "You are a liar when you suggest anything like that," exclaimed Mr. Coakley, jumping to his feet. Ponzi told of loans of $20,000 each to Henry Chmielski, president, and William S. McNary. treasurer, of the Hanover Trust company, which was Ponzi's principal depositary and which went to the wall with his collapse. He announced that he had loaned $10,000 to Daniel P. Demond, treasurer of the Lawrence Trust company of Lawrence, and this was followed by Demond's resignation later in the day.
18.September 1, 1920Norwich BulletinNorwich, CT
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I The record of Connecticut's growth ( follows: 1 P. C. Number Popula Census a Increase Increase tion Year I 23.8 265.829 1.380.585 1920 I 22.7 206,336 1,114,756 1910 21.7 162.161 908,420 1900 19.8 123,558 746.258 1890 15.9 85.246 622.700 1880 16.8 77.307 537,454 1870 24.1 89.355 460,147 1860 19.6 60.814 370.792 1850 4.1 12.203 309 978 1840 8.1 22,427 297.*75 1830 5.1 13,306 275,248 1820 4.4 10,940 261.942 1810 5.5 13,506 251.002 1800 237,946 1790 PONZI'S LARGEST DEPOSIT AT ONE TIME, $2,700,000 Boston, Aug. 31.-Charles Ludden, an attorney. testified at a hearing today before Receiver Hannigan of the Old Colony Foreign Exchange company that the concern was organized by men who said they wanted to get some of the easy money that Ponzi was making. He said he advised the promoters against the supposed Ponzi plan of international postal coupon exchange and they told him they would try foreign exchange. Subsequently he learned that the promoters were incompetent to manage a foreign exchange business, but Gunnar Lindblad whom they sent abroad as an agent. appeared to he familiar with languages and trade methods to carry it. on. William F. Bouchie. an accountant employed by the company, testified that he believed the gross receipts from the time the company ( e ned offices in, competition with Ponzi in July to August 13, when they were closed, were $275,000. Some details of Charles Ponzi's relaL tions with the Hanover Trust Company. which was closed when Ponzi's financial S scheme collapsed, were disclosed at a I hearing today before the federal receivn ers of Ponzi's business. William S. Mc₫ Nary treasurer of the bank. testified n that he had balked Ponzi's effort to buy a controlling interest in its stock and I Ponzi's largest amount on deposit in the t bank at any one time was $2,700,000.
BANK HEADS TELL OF PONZI AFFAIRS Boston, Sept. 6.-The federal receivers of Charles Ponzi, attempting to run down the assets of his broken business, examined Henry A. Chmielinski and William S. McNary, president and treasurer, respectively, of the Hanover Trust company, the bank which was closed when the Ponzi quick rich bůbble was burst. It was testified by Treasurer McNary that Ponzi's maximum deposit for any one day was $2,700,000, instead of the six or eight millions which Ponzi had claimed in public statements, while the run on his Securities Exchange company was on. The bank paid out $5,900,000 on Ponzi checks during this run, Mr. McNary said, Ponzi bringing in new money daily to meet / the demands, The bank now has $1,058,000 of his money in its vaults, for which the receivers. hold a certificate of deposit, and Treasurer McNary said additional assets. were available in Ponzi's holdings of stock in the bank, which, he predicted, will pay dollar for dollar. Ponzi attempted at one time to buy out control of the bank, but was stopped, Mr. McNary testified, by a vote that he be forced to withdraw his account of $2.700,000 unless he ceased the attempt at control. The notes for $20,000 each which Ponzi testified he held for money due him from the two bank officials were disclaimed as obligations by each. They said they were personal notes given by an official of the North End branch of the bank who had received an offer from Ponzi to enter business, Ponzi agreeing to take his notes if they were indorsed by Chmielinski and McNary. Ponzi had assured them, they said, that he would be responsible for the notes, and at his direction, they were charged to his account.
FIDELITY TRUST STOPS BUSINESS Bank Commissioner Allen Takes Charge of Institution DECLINING DEPOSITS AND SLOW LOANS They Are Responsible for Commissioner's Action - Its Officials Affiliated With Other Financial and Industrial Concerns. BOSTON, Sept. 28.-Bank Commissioner Joseph Allen took over the affairs of the Fidelity Trust Co. here today. His action marked the closing of the sixth banking institution in this city= within two months. The others were the Hanover Trust Co., of which Charles Ponzi was a director and largest individual depositor, the Prudential and Cosmopolitan Trust companies and two private banks. The canital of the Fidelity was $3,000,000 and according to the latest available statement the company had a surplus of $700,000. Its deposits totalled about $18,000,000. James G. Ferguson, its president, is affiliated with several other financial and industrial institutions, as is Edwin T. McKnight, the vice president. The Fidelity Trust Co. was one of three banks which yesterday invoked the 90-day law for withdrawal of deposits. The reasons for the closing of the bank, Commissioner Allen said, are the steady withdrawal of deposits and slow and doubtful loans. 'Only a few persons were on hand when the formal notice announcing the closing was posted on the door of the Fidelity Trust Co. at 9 a. m. A squad of policement were on duty and extra officers patrolled the financial district but there was no excitement. At the offices of the Tremont Trust Co. a small crowd gathered before the opening hour but police had nothing to do. The bank continued to do business as usual in its commercial department but depositors in the savings department were required to file 90 days' notice of intention to withdraw. The same sitnation existed at. the Dorchester Trust Co.
21.October 6, 1920New-York TribuneNew York, NY
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Ponzi Assets Less Than One. Third of Liabilities Auditor's Report Shows Creditors Will Get About One Dollar for Three BOSTON, Oct. 5.-Charles Ponzi can pay less than one-third of the claims of creditors of his shattered scheme of high finance. Instead of the 50 per cent. profits which he promised. those who expected him to lead them to quick riches will lose more than 60 per cent. on their investments. C. N. Rittenhouse, auditor for the Federal receivers of Ponzi. made his report at a hearing to-day on a bankruptcy petition against 10121 Federal court. To meet liabilities, which he set at $7,500,000. the auditor said Penzi had total assets of only $2,195,685. Ponzi's assets included as principal items a certificate of deposit for $1,058.221, cash in banks amounting to $150,076, Ponzi's home in Lexington, estimated at $110,000, and 1,590 shares of the Hanover Trust Company, estimated at $200,000. The Hanover Bank failed when Ponzi's business wa3 closed.
22.October 6, 1920Daily Kennebec JournalAugusta, ME
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Ponzi Speculators to Lose More Than Expected Gains Boston Oct. S.-Charles Ponzi can pay less than one dollar in three on the claims of creditors of his shattered scheme of high finance. Instead of the fifty per cent profits which he promised. those who expected Ponzi to lead them to quick riches will lose more than 50 per cent on their investments. The extent to which the millions entrusted to him had been reduced became known definitely today for the first time when C. W. Rittenhouse. auditor for the Federal receivers of Ponzi, made his report at a hearing on a bankruptcy petition against Ponzi in the Federal court. To meet liabilities which he set at $7,500,000 the auditor said Ponzi had total assets of only $2,195,685. This aggregate of assets included as principal items a certificate of deposit for $1,058,221. cash in banks amounting to $150,076. Ponzi's house in Lexington estimated at $110.000 and 1590 shares of the Hanover Trust Company which he tried to control and which failed when he fell. estimated at $200.000.
23.February 15, 1922Daily Kennebec JournalAugusta, ME
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Grand Jury Starts Inquiry How Hanover Trust Co. Was Run Boston, Feb. 14.-The Suffolk, county grand jury today began a special session to inquire into the affairs of the Hanover Trust Co. prior to the time that it was closed by Bank Commissioner Allen. The investigation, according to Assistant Atty. Gen. Albert Hurwitz, will be along lines similar to those pursued by the grand jury when it returned indictments recently against Max Mitchell, president of the Cosmopolitan Trust Co., for larceny aggregating $1,700,000. While the amount involved in the Hanover inquixy is not as great, Mr. Hurwitz said, evidence would be introduced covering transactions concerning considerable sums of money.
