Ponzi's Scheme_ The True Story of a Financial Legend - Mitchell Zuckoff [160]
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The lowlight of Ponzi’s day: “Ponzi Case Probe Shifts to Capital,” Boston Post, August 6, 1920, p. 1; “Four New Yorkers Ask Ponzi Backing,” New York Times, August 6, 1920, p. 6; “Ponzi Joins New York Promoters, Forming $200,000,000 Concern” Boston Herald, August 6, 1920, p. 1. Also see Ponzi, pp. 161–71. In his autobiography, Ponzi suggests that Herman and his partners might well have invested in his business and at one point even displayed a $10 million check. Ponzi’s point appears to be to suggest that if he had only been given a little more time he could have weathered the storm and righted his ship. However, it is more plausible to believe that even if Herman did wave a check before Ponzi’s face, it could never have saved him. Ponzi had no secret to sell Herman, and although Herman might have been willing to become partners in an operation based purely on Ponzi’s charisma, it is difficult to imagine he would pay $10 million for that privilege.
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Joseph Allen discovered the first sign: Annual Report of the Massachusetts Commissioner of Banks, 1921, p. vii–viii.
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Ponzi knew he could wait no longer: “Call Lansing in Ponzi Case,” Boston Post, August 7, 1920, p. 1; “Ponzi Agents Tell of Receipts,” Boston Globe, October 27, 1922; “Refuses to Tell Where Money Went,” Boston Post, October 5, 1920; In re Ponzi, 268 F. 997 (District Court, Massachusetts, November 12, 1920); “Daniels Withdraws Suit Against Ponzi,” Boston Evening Globe, August 6, 1920, p. 1; “Ponzi Settles Claim for Million, Taking Daniels as Partner,” Boston Herald, August 7, 1920, p. 1; Ponzi, pp. 132–33.
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“I am now on the offensive”: “Ponzi Settles Claim for Million, Taking Daniels as Partner,” Boston Herald, August 7, 1920, p. 1.
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“Are you a Bolshevist?”: “Daniels Withdraws Suit Against Ponzi,” Boston Evening Globe, August 6, 1920, p. 1.
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“the financing of Soviet Russia”: “Call Lansing in Ponzi Case,” Boston Post, August 7, 1920, p. 1.
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“Are you . . . ? Are you . . . ?”: Ibid.
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New York Times sensed the pendulum: “One Record at Least Is Broken,” New York Times, editorial, August 6, 1920, p. 8.
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a puritanical and decidedly racist cloak: “Something for Nothing,” Boston Evening Globe, editorial, August 6, 1920, p. 10.
Chapter Sixteen: “I feel the strain—inside.”
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Ponzi could withdraw the $185,000: “Unite upon Ponzi Case,” Boston Post, August 8, 1920, p. 1; “Ponzi Defies Arrest,” Boston American, August 7, 1920, p. 1; “Consulted Lansing on Ponzi’s Operations; Return of Assistant Attorney General Abbott,” Boston Evening Globe, August 7, 1920, p. 1.
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a sarcastic “good morning”: “Ponzi Defies Arrest,” Boston American, August 7, 1920, p. 1.
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Ponzi had to settle for his son: “Consulted Lansing on Ponzi’s Operations; Return of Assistant Attorney General Abbott,” Boston Evening Globe, August 7, 1920, p. 1.
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investigators held a flurry of meetings: “Unite upon Ponzi Case,” Boston Post, August 8, 1920, p. 1; “Ponzi Starts Scare by Seven-Hour Absence,” Boston Sunday Globe, August 8, 1920, p. 1; “Ponzi Defies State or Nation to Stop Him from Opening Tomorrow,” Boston Sunday Herald, August 8, 1920, p. 1.
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Governor Coolidge “is far from satisfied”: “Unite upon Ponzi Case,” Boston Post, August 8, 1920, p. 1.
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Old Colony continued to accept deposits: “Ponzi Starts Scare by Seven-Hour Absence,” Boston Sunday Globe, August 8, 1920, p. 1.
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a chance to reflect on his situation: Ponzi does not specifically detail his true reasons for his about-face regarding collecting money for his new company. When he announced his decision immediately upon emerging from Hanover Trust, he spoke only of doing what was best for his investors. However, the more complete rationale suggested here is more plausible, given the intensity of the investigations and even some newspapers’ suggestions that his new company might be viewed as repaying the debts of the Securities Exchange Company. See “Ponzi Opens Offices