Hanover Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: *
Location: Boston, Massachusetts (42.358, -71.060)

Metadata

Model: gpt-5-mini
Short Digest: d10936bc

Response Measures

None

Description

Article states the Hanover Trust Company of Boston was forced to close in connection with Charles Ponzi's schemes and that this led to investigations and closures by the bank commissioner. No run on the bank is described in the excerpt; the closure appears to be by regulatory action tied to Ponzi's fraud.

Events (1)

1. * Suspension

Cause: Government Action
Cause Details: Bank was forced to close by the bank commissioner after revelations of Charles Ponzi's fraudulent operations and his large stockholding in the bank.
Newspaper Excerpt: Involved in Ponzi's crash was the Hanover Trust Company of Boston, in which he was a large stockholder. The bank was forced to close and the conditions disclosed there led to an investigation of several other trust companies in Boston, which were closed by the bank commissioner.
Source: newspapers

Newspaper Articles (1)

1. August 6, 1924 Evening Star Washington, DC

Article from Evening Star, August 6, 1924

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Article Text

PONZI LEAVES JAIL FOR NEW BATTLE Boston Financier, Finishing Federal Sentence, Must Fight in State Courts. Dy the Associated Press. PLYMOUTH, Mass., August 6.Charles Ponzi, his term as a Federal prisoner ended. left the Plymouth jail today. Accompanied by a deputy sheriff, he went to Boston to try to arrange for the furnishing of $14,000 bail required of him on charges brought in the State courts in connection with his financial schemes. Four years ago Ponzi attracted the attention of the whole country by his offer to pay huge interest on shortterm investments in his Securities Exchange Company of Boston, which purported to operate a plan of dealing in international postal reply coupons and to be making great profits through the depreciation in foreign exchange. Thousands of persons intrusted millions to him and many of them received the promised profits. Finally the authorities stepped in and closed up the business. Ponzi was convicted in the Federal court on charges of using the mails in a scheme to defraud, the testimony indicating that the postal coupon scheme had not been operated as represented. Ponzi's company went into the hands of receivers, his palatial home in Lexington was sold for the benefit of creditors and he was sentenced to jail for five years. With the usual remittance for good behavior this term expired today. Involved in Ponzi's crash was the Hanover Trust Company of Boston, in which he was a large stockholder. The bank was forced to close and the conditions disclosed there led to an investigation of several other trust companies in Boston, which were closed by the bank commissioner.