155
obtain coupons from Poland: Ponzi, pp. 111–13.
155
“I was left high and dry”: Ibid., p. 113.
155
clerks had filled wastebaskets with greenbacks: Ponzi, p. 99.
155
In June alone: Monthly investment totals come from the federal audit that led to the closure of the Securities Exchange Company and were evidence at Ponzi’s 1922 trial. “How the Bubble Grew,” Boston Evening Transcript, November 6, 1922, p. 24.
155
prohibiting post offices from redeeming: “Seeking Source of Big Profits,” Boston Post, July 28, 1920, p. 20.
156
a ten-thousand-dollar loan: Cunningham v. Commissioner of Banks, 144 N.E. 447.
156
He paid all Gnecco Brothers’ creditors: The Bradstreet Company credit report dated July 26, 1920.
Chapter Eleven: “Like stealing candy from a baby”
159
Joseph Daniels had watched streams of people: The account of Daniels’s suit against Ponzi and Ponzi’s response comes from In re Ponzi, 268 F. 997 (District Court, Massachusetts, November 12, 1920); “Ponzi Partnership and Receiver Hearings On,” Boston Traveler, October 1, 1920; “Ponzi Criminal Trial to Start Soon, Belief,” Boston Traveler, October 2, 1920, p. 1; “Ponzi to Tell More on ‘Partnership Deal,’ ” Boston Traveler, October 5, 1920, p. 1; “Insist Daniels Tell Disposition of $55,000,” Boston Traveler, October 9, 1920, p. 1; “Bar Witnesses as Spectators During Trial of Ponzi Case,” Boston Traveler, October 26, 1922, p. 1; “Ponzi Sent No Representative to Europe,” Boston Globe, September 29, 1920; “Ponzi Tells How He Borrowed Millions,” Boston Globe, September 30, 1920; “Figures of Auditor Rittenhouse,” Boston Globe, October 5, 1920.
161
Frank Leveroni: Obituary of Judge Frank Leveroni found in the library files of the Boston Globe; clip is undated but is hand-stamped August 2, 1948. Information on Leveroni and his family also was obtained from the 1920 U.S. Census.
161
Leveroni had invested five thousand dollars: “Creditors of the Ponzi Enterprise,” Boston Post, August 27, 1920, p. 8.
161
his Lucy Martelli account at Hanover Trust: Cunningham v. Commissioner of Banks, 144 N.E. 447; “Questions Ex-Secretary,” Boston Globe, October 25, 1922.
161
Ponzi emptied his account: Annual Report of the Massachusetts Commissioner of Banks, 1921, p. 20.
162
Grozier stopped at the desk: Interview with Mary Grozier, March 7, 2003. Also “Bursting Golden Bubble Wins Gold Medal,” Editor & Publisher, June 4, 1921, p. 1; Kenny, p. 194; “Pulitzer Prize Is Awarded to Post,” Boston Post, May 30, 1921, p. 1.
162
A Boston native: “Post Executive E. J. Dunn Dies,” Boston Herald, May 6, 1961, p. 1.
163
Much more creative ideas were percolating: Ponzi’s ideas to transform the Securities Exchange Company into a less speculative and more legitimate operation come largely from Ponzi himself; see Ponzi, pp. 127–34 and 139–43. Elements of his ideas are confirmed elsewhere, notably by the fact that publicity man William McMasters, who would play an instrumental role in helping the Boston Post build its case against Ponzi, was initially hired to promote Ponzi’s deposit contest idea. See “All Demands Met by Ponzi: Investigators Still at Sea,” Boston Daily Globe, August 3, 1920, p. 1.
163
Over their initial dinner at the Copley: “Reporters Convinced of De Masellis’ Honesty,” Boston Evening Globe, August 26, 1920, p. 8; “Ponzi Asks Aid . . . Witness Says Foreign Exchange Plan Feasible,” Boston Transcript, October 27, 1922.
164
To get the ball rolling: “Ponzi Halts Loans at 50 Per Cent till Books Are Checked,” Boston Herald, July 27, 1920, p. 1.
164
he quietly paid his debt: In re Ponzi, 268 F. 997 (District Court, Massachusetts, November 12, 1920).
164
“There was absolutely nothing to it”: Ponzi, p. 128.
165
“floating sample rooms for American products”: Ibid., p. 142.
166
S.S. Cretic: A copy of the first-class manifest of the S.S. Cretic upon its arrival in Boston on July 9, 1920, was obtained from microfiche at the National Archives and Records Administration office in Waltham, Massachusetts. Also “Ask the Globe,” Boston Globe, September 14, 1991, p. 60.
166
“castles in the air”: “Ponzi Tells How He Rose,” Boston American, August 9, 1920.
166
Joseph Merenda: Merenda invested two hundred dollars on June 21, 1920; “Creditors of the Ponzi Enterprise,” Boston Post, August 27, 1920, p. 8.
166
Ponzi opened his wallet: “Affecting Meeting of Ponzi and His Mother,” Boston Globe, November 24, 1922.
167
“seventeen years since I have seen you”: “Grills Merenda at Ponzi Trial,” Boston Traveler, November 24, 1922, p. 1.
167
“I made up my mind”: “Hope to End Ponzi Case Wednesday,” Boston Globe, November 25, 1922.
167
rot undermining the roots: “J. C. Allen, Bank Commissioner,” undated clip from the library files of the Boston Globe; Wendell Howie, “Joseph C. Allen Resigns as Bank Commissioner,” Boston Transcript, May 11, 1925. Information about Allen was also taken from 1920 and 1930 U.S. Census data.
168
a candidate far from the cloistered world: “Mirrors of Beacon Hill,” Boston News Bureau, September 30, 1922.
168
pince-nez glasses perched on a handsome nose: The description of Allen comes from photographs in the library files of the Boston Globe.
168
“quiet, dignified, immaculate, kind”: “Mirrors of Beacon Hill,” Boston News Bureau, September 30, 1922.
168
a lousy golf game: Ibid.
169
“I am new to this game”: Ibid.
169
Allen called for an opinion: Annual Report of the Massachusetts Commissioner of Banks, 1921, p. vii.
169
a classic Boston pedigree: “J. Weston Allen Dies at Age of 69,” Boston Post, January 1, 1942, p. 1; “J. Weston Allen Funeral Today at Mt. Auburn,” Boston Globe, January 2, 1942; Mason Ham, “People You Ought to Know,” Boston Herald, October 23, 1929.
169
He answered the bank commissioner’s inquiry: Annual Report of the Massachusetts Commissioner of Banks, 1921, p. vii.
170
On July 15, Hanover Trust officials reported: Ibid.
170
The two Allens agreed: Ibid.; Albert Hurwitz, “The Ponzi Bubble,” Boston Herald Sunday Magazine, August 30, 1970, p. 15.
170
meeting at the State House: Albert Hurwitz, “The Ponzi Bubble,” Boston Herald Sunday Magazine, August 30, 1970, p. 15; Ponzi, pp. 119–20.
170
“I couldn’t very well stay away”: Ponzi, p. 119.
170
his standard speech about International Reply Coupons: Albert Hurwitz, “The Ponzi Bubble,” Boston Herald Sunday Magazine, August 30, 1970, p. 15.
170
“I was almost ashamed”: Ponzi, p. 119.
171
Hurwitz was an immigrant: “For the Common Council,” Boston Transcript, December 9, 1905, pp. 5–7; Harry Schneiderman, and I. J. Carmin Karpman, editors, Who’s Who in World Jewry, David McKay Company, 1965, p. 434. Information about Hurwitz also was taken from 1930 U.S. Census data.
171
Hurwitz respected the confidence and ease: Albert Hurwitz, “The Ponzi Bubble,” Boston Herald Sunday Magazine, August 30, 1970, p. 15.
171
Ponzi’s impeccable fashion sense: Ibid.
171
Hurwitz mildly challenged Ponzi: Ibid.
172
declared they were satisfied: Ibid. In his description of the meeting, Hurwitz did not identify Abbott as his fellow assistant attorney gener
al. However, it is reasonable to conclude that Abbott was his partner that day because the two were the only investigators from the attorney general’s office on the Ponzi matter at the time.
172
172
Since arriving in Boston from Lithuania: Information about Simon Swig was obtained from the 1920 U.S. Census.
172
he had alienated a large portion: “Action Taken to Protect Depositors, Shareholders,” Boston Globe, February 18, 1921, p. 1.
172
Swig had tended to ignore laws: Annual Report of the Massachusetts Commissioner of Banks 1921, pp. xlv–lix.
173
Swig’s house was a prime example: Ibid.
173
Ponzi thought Swig looked down: Ponzi, p. 97.
173
Swig wrote Ponzi a caustic letter: “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1.
173
Ponzi did as Swig asked: Ponzi, p. 129. Ponzi does not name Tremont Trust here, but his account generally fits with the information contained in Swig’s letter.
174
Ponzi took the first step: “All Demands Met by Ponzi: Investigators Still at Sea,” Boston Daily Globe, August 3, 1920, p. 1. The date Ponzi hired McMasters is significant because McMasters has often been incorrectly credited, or blamed, for the story in the Post on July 24. In one of their rare agreements, Ponzi and McMasters both said McMasters had nothing to do with initiating that story, a claim made more plausible by the fact that McMasters would have had to arrange for a Post reporter to spend the day at Ponzi’s office and his Lexington home virtually within minutes of his hiring. Far more likely is that Richard Grozier and Edward Dunn had already assigned a feature story about Ponzi as a follow-up to the item about Daniels’s lawsuit.
174
publicity man William McMasters: Obituary for William McMasters, Boston Globe, March 1, 1968; “Ponzi and McMasters Sue Each Other—Run Continued Today,” Boston Evening Globe, August 3, 1920, p. 1; Kenny, pp. 191–95; Beatty, p. 418.
175
The remarkable result appeared: “Doubles the Money Within Three Months,” Boston Post, July 24, 1920, p. 1.
Chapter Twelve: “Money madness”
179
The clear goal for Grozier and Dunn: “Ponzi Has a Rival Next Door to Him,” Boston Sunday Post, July 25, 1920, p. 1.
180
A few pages past the report: Marguerite Mooers Marshall, “To Make Old Women Young,” Boston Sunday Post, July 25, 1920, p. 8.
181
an item buried in the Boston Sunday Herald: Elizabeth Ellam, “Lawrence Mill Workers Have Money to Invest,” Boston Sunday Herald, July 25, 1920, p. 4.
181
dashing undertaker Byron M. Pettibone: “Wife Took Overdose, Pettibone Defense,” Boston Daily Globe, July 27, 1920, p. 1.
181
“a wizard of finance”: “Questions the Motive Behind Ponzi Scheme,” Boston Post, July 26, 1920, p. 1.
181
The telephone began ringing: Ponzi, p. 148.
181
“Every one of them”: Ibid., p. 148.
182
“As a judge of the Juvenile Court”: “Questions the Motive Behind Ponzi Scheme,” Boston Post, July 26, 1920, p. 1.
182
“Will you pose for us?”: Ibid.
182
Ponzi and Leveroni strategized: “Questions the Motive Behind Ponzi Scheme,” Boston Post, July 26, 1920, p. 1.
182
“none of them had either the courage”: Ponzi, p. 147.
182
Perhaps my activities”: Ibid., p. 147.
183
183
he made arrangements to move: “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1
183
“That Sunday was the busiest day”: Ponzi, p. 148.
184
Clarence Walker Barron: Information about Barron was taken largely from a biographical sketch printed as a preface to the book They Told Barron: Conversations and Revelations of an American Pepys in Wall Street, Harper & Brothers, 1930, pp. xv–xxxiii. Also “Clarence W. Barron Could Dictate Four Letters at the Same Time,” Boston Post, October 7, 1928; “Boston News Bureau in New Building,” Boston Post, September 3, 1912, p. 14; “C. W. Barron, Publisher, and Associates Thus Celebrate 25th Anniversary,” undated newspaper clipping found in the files of the Boston Public Library.
185
“No man of wide financial”: “Questions the Motive Behind Ponzi Scheme,” Boston Post, July 26, 1920, p. 1. All of Barron’s comments from the night of July 26, 1920, are taken from this story.
186
only two cars were allowed: Ponzi, p. 149.
186
A conga line of would-be investors: Ponzi, p. 149; “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1.
186
“And three groans for the Post!”: Kenny, p. 197.
187
“The air was tense”: Ponzi, p. 149.
187
The new office he opened that morning: “Mrs. Ponzi Would Not Take Gems,” Boston Post, November 22, 1922.
187
in July alone, Ponzi had taken in: Monthly investment totals come from the federal audit that led to the closure of the Securities Exchange Company and were evidence at Ponzi’s 1922 trial. “How the Bubble Grew,” Boston Evening Transcript, November 6, 1922, p. 24.
188
Ponzi picked up a copy: Ponzi, p. 151.
188
“The situation was especially dangerous”: Ibid., p. 151.
188
Ponzi reached for the phone: Ibid., p. 152.
188
Gallagher was an undistinguished lawyer: http://politicalgraveyard.com/bio/gallagher.htm; 1920 and 1930 U.S. Census data; Knights of Columbus, Massachusetts State Officers, at http://massachusettsstatekofc.org/StateOfficers.htm.
189
Pelletier was forty-eight: “Decision of Five Justices for Pelletier’s Removal,” Boston Sunday Post, November 5, 1922; “Summary of the Trial of the District Attorney,” unidentified newspaper clipping, dated February 21, 1922, from the files of the Boston Public Library; “Blackmail Victims Revealed,” Boston American, September 30, 1921, p. 1; Michael Kenney, “Beneath Boston’s Catholic Subculture,” Boston Globe, June 18, 1994, p. 29. Also see Beatty, pp. 195–98.
190
Pelletier and Coakley had even enlisted: “Decision of Five Justices for Pelletier’s Removal,” Boston Sunday Post, November 5, 1922.
190
With his publicity man, William McMasters: “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1; William McMasters, “Declares Ponzi Is Now Hopelessly Insolvent,” Boston Post, August 2, 1920, p. 1; Ponzi, pp. 153–55. It is worth noting that, in their separate accounts of these events, Ponzi and McMasters agreed on general points and certain key details about the conversations with Pelletier, Gallagher, and Allen. However, each framed his account to place himself in the best possible light. Ponzi, for instance, did not mention in his autobiography that McMasters accompanied him to the meetings, which is not surprising considering the animosity that had developed between the two men. As for McMasters, he wrote, “The resumed confidence of his note-holders was due to my own personal efforts. I issued the statements. I directed the stories.” And so on. McMasters’s August 2, 1920, account, which he elaborated upon during several later court hearings, is also suspect because of timing: It was written in the midst of his most fierce effort to discredit Ponzi to the public through the Post. It was almost certainly too flattering not only to himself but also to Pelletier. And Pelletier was no great help, saying only that McMasters’s generous account of his actions “is true as far as my memory serves me” (Wilton
Vaugh, “M’Masters in Reply to ‘The Wizard,’ ” Boston Post, August 2, 1920, p. 1). I have relied on demonstrable facts, areas where they were in agreement, and my own logic to sift through the more tortured elements of their accounts.
190
a man going to a cotillion: “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1; “Ponzi Stops Taking Money, Awaits Audit,” Boston Daily Globe, July 27, 1920, p. 1.
192
“Mr. District Attorney”: Ponzi, pp. 154–55.
192
Gallagher agreed to consider Ponzi’s offer: “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1.
193
“I don’t need the money”: Transcript of meeting between Gallagher and Ponzi, read into evidence at Ponzi’s 1922 trial; “Ponzi’s Political Aims, as Told to the Officials,” Boston Globe, November 16, 1922; “Million Is Paid Back by Ponzi,” Boston Post, July 28, 1920, p. 1.
193
they headed toward the State House: “Ponzi Closes; Not Likely to Resume,” Boston Post, July 27, 1920, p. 1; Ponzi, p. 156.