by Dean Jobb
263 It was quite a big blow up Interview with Maurice Scott, April 28, 1977, Kejimkujik Oral History Project (see chap. 21 notes). The description of Leo’s time in Nova Scotia appeared in Morrison and Friend, “We Have Held Our Own,” 81–82 (see chap. 20 notes). Years after Leo’s arrest, members of the Caledonia Women’s Institute organized a lecture that recalled the “spectacular social activities” at Pinehurst. See “Pinehurst—A Beauty Spot. Remember ‘KORETZ’?” undated newspaper clipping, file 76 (Pinehurst), North Queens Heritage House Museum, Caledonia, NS.
263 The claims of 147 creditors Details of the settlement of Leo’s estate are drawn from documents filed in In the Matter of Leo Koretz, Bankrupt (Chicago) (see chap. 1 notes). The losses of individual investors have been calculated using figures recorded in this file.
264 Lewy Brothers fought the case In re Koretz (Lewy Bros. Co. v. Chicago Title & Trust Co.), 6 F. (2d) 225 (7th Cir. 1925). Lewy Brothers’ victory was short lived: the jeweler was struggling to stay afloat and, in a final irony, was petitioned into bankruptcy within months of the ruling, leaving creditors to swallow losses of $750,000. See “Lewy Bros., Jewelers, Fail,” New York Times, November 24, 1925.
264 What a devastating thing Author’s interview with Andrew Goodman, August 16, 2012.
265 had this look on his face Author’s interview with Bill Goodman, August 30, 2012.
265 It was a terrible thing Author’s interview with Jane Siegel, September 12, 2012.
265 left a modest estate Transcript of testimony of Mari (Koretz) Green in Probate Court of Cook County, December 4, 1941, p. 2; Inventory, dated February 6, 1942; and petition of executor Milton R. Simon, dated June 16, 1942. Probate File 8637 (Mae Koretz), YR41P, p. 324, docket 408, Archives of the Clerk of the Circuit Court of Cook County.
265 He was a personality Andrew Goodman interview.
265 Red Kearns and His Rinky Tink Piano See advertisements in the Wisconsin State Journal, June 15, 1966, and the Montreal Gazette, July 25, 1969.
266 I discovered the whole story Carol Stelzer, e-mail communication with the author, August 29, 2012.
266 I’m not ashamed Bill Goodman interview.
266 a great story to tell Andrew Goodman interview.
INDEX
Page numbers in italics refer to photos.
A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z
A
Abagnale, Frank, 78
Abbott, Richard, 187
Agatstein, Louis, 101
Allard, Leola, 232
Allen, Frederick Lewis, 74, 77
Arkansas rice farms
bogus mortgages, 34–36
investor earnings, 48, 59, 183
Koretz’s sales position and land holdings, 33–34
land boom, 33–34
arrest. See manhunt and capture
Asbury, Herbert, 19
Auerbach, Anna
affair with Koretz, 92, 129–30, 131
disappearance and warrant for arrest, 133–34
on Koretz’s charm, 6
on Koretz’s popularity with women, 57–58, 128
losses, 263–64
Auerbach, Salo, 128, 130
Austrian, Alfred, 28
automobiles, 74–76
B
bankruptcy proceedings. See also criminal proceedings
creditors’ petition, 138
estimate of losses and claims, 143–45, 183, 233
federal income tax claim, 207, 263
final distribution of cash and assets, 263–64
jeweler’s claim, 264
Koretz’s testimony, 233–37
Mae Koretz’s testimony, 136, 137–38
newspaper accounts, 141, 142–43
recovery of assets, 141–43, 157, 183, 207
referee and receiver, 138
return of cash by Koretz family, 114, 122–23, 142, 263
Banks, George, 191–92, 196, 208, 222, 262
Banks, Mabelle Gene “Topsy,” 191–92, 197, 203, 222, 262
Barrett, Charles, 64, 66, 85, 87
Barrett, George, 64, 66
Bayano River region, Panama
exports, 38, 102
oil exploration, 101–2
Panama Canal project, 37, 38, 43
photograph of, 40
remoteness and harsh conditions, 37–38, 39–41, 109, 259
timberland, 43, 107
Bayano River Syndicate. See also bankruptcy proceedings; criminal proceedings; investors
account of oil discovery, 12
Big Five investors, 48–49, 89
Chicago offices, 11, 56, 70–71, 90, 115, 131
destruction of evidence, 104
dividends, 5, 52, 59–60, 72, 93, 233
executive team, 96, 100–101
expansion of timber scam, 60–61, 71–74, 96
impending collapse, 82, 97–98, 112
inspiration for, 38–42, 43–44, 46
investors’ inspection trip and discovery of swindle, 96, 100, 100–101, 107–9, 139–40
Koretz’s confession, 230–31
Koretz’s denial of wrongdoing, 218–19
Koretz’s pledge to make restitution, 243
Koretz’s self-deception, 96–97, 235–36
limitation of shares sold, 11, 50–51, 73
longevity of swindle, 60, 81–82
mention of Standard Oil, 4, 12, 72–73, 76, 89, 94
New York office, 91, 105
prospectus for investors, 44–46
refunds to Koretz family and friends, 103, 104, 106, 142–43
secrecy, 11, 48–49, 58
select group of investors, 51–52, 53, 70–71, 82
state’s attorney’s cognizance of, 114–15
stock certificates, 12, 50
suspicions concerning, 58–59
as template for subsequent swindles, 81, 257–59
true-crime and detective magazine features about, 254, 256
trust and loyalty of investors, 13, 52–53, 59–60
Belasco, Daniel, 31, 38, 43
Bergman, Eda, 92–93
Berkson, Maurice, 31, 58, 138, 143, 233, 236
Blakeley, Phyllis, 193
Boysen, Harry, 101, 107, 109
Brisbane, Arthur, 145
Bronson, Al (Koretz alias), 13, 48–49, 127–28
C
Canada. See Nova Scotia hideaway
Capone, Al, 9, 75, 88, 209, 211, 260, 263
capture. See manhunt and capture
Caverly, John, 181–82
Chicago
crime and corruption, 8–9, 19, 66, 69, 86–87, 210–12
Bobby Franks murder, 179–82
gang violence, 87–88, 209–10
immigrants, 20
Irish domination of local politics, 24, 66
Jewish community, 20, 32
newspapers and newsmen, 120–22
vice and depravity, 9, 19, 67
wealth and booming economy, 8, 9–10, 21, 258
Janet Wilkinson murder, 62–64
Eugene Williams murder and riots, 68–69
Chicago Daily Journal, 119, 120, 121–22, 131
Chicago Daily News
among Chicago’s six newspapers, 120–21
on corruption, 212
on gangland violence, 210
on Koretz’s ability to sway jury, 221
on Koretz’s health, 247
on Koretz’s womanizing, 130, 131–32, 216
on Mae Koretz’s financial status, 205–6
on mail-fraud indictment, 149
on manhunt for Koretz, 151
party credited for Koretz’s capture, 209
on reluctance of Bayano victims to testify, 220
ridicule of Bayano investors, 117, 140, 141
Chicago Daily Tribune
on auction of Koretz’s belongings, 183
on automobile deaths in Chicago, 74
on Bayano bankruptcy proceedings, 233–34, 236
&n
bsp; on Bayano swindle and victims, 119, 120, 133, 143, 150, 151, 206–7
among Chicago’s six newspapers, 120
on Crowe’s death, 261
exposure of city hall corruption, 86
on Koretz’s capture and extradition, 205, 209, 223
on Koretz’s denial of wrongdoing, 219
on Koretz’s funeral and burial, 248, 250, 250–51
on Koretz’s health, 247
on Koretz’s popularity, 6
on Koretz’s prison life, 245
on Koretz’s sentence, 242
on Koretz’s womanizing, 130, 133, 157
on manhunt for Koretz, 184
on missing child and sentence for murderer, 62, 63, 64
outlook on new century, 23
on train wreck, 110–11
Chicago Evening American
on Bayano swindle and victims, 52, 119, 124, 125, 139–40, 141, 142, 144, 145
among Chicago’s six newspapers, 120, 121
on Koretz’s capture, 205, 209
on Koretz’s womanizing, 6, 128, 133, 134
on Mae Koretz, 125
on Mentor Koretz, 139
praise of Crowe, 68
on return of cash by Koretz family, 123
Chicago Evening Post
on Bayano victims’ petition for Koretz’s pardon, 242–43
among Chicago’s six newspapers, 120, 121
on corruption, 66, 148, 212
on Koretz’s extradition to Chicago, 228
on Koretz’s lying, 233
on Koretz’s womanizing, 126, 134
on manhunt for Koretz, 157
prediction of Koretz’s surrender, 156
ridicule of Bayano investors, 141
Chicago Herald and Examiner
on Bayano swindle and victims, 112, 140, 255
among Chicago’s six newspapers, 120
on corruption, 212
on Zane Grey at revelation of Koretz’s deception, 207
on Koretz’s capture, 216
on Koretz’s death, 251, 252
on Koretz’s denial of wrongdoing, 218–19
on Koretz’s sentence, 241–42
on Koretz’s womanizing, 133, 150
on Mae Koretz, 125
Mentor Koretz on mother’s wishes, 232
praise of Crowe, 67
Chicago Title and Trust Company. See bankruptcy proceedings
Church, Harvey, 84–85
Cockran, Bourke, 27
Cohen, Samuel, 7, 13, 110, 143
Cohn, Charles
banquet in honor of Koretz, 4, 124
Bayano investment and losses, 4, 7, 104, 124, 263
trust in Koretz, 13, 52
Cohn, Milton, 112
Collins, Morgan, 148
con men
affinity fraud, 258
as American cultural heroes, 79
Bayano template for, 81, 257–58
characteristics, 78–79
first use of term, confidence man, 79
greed of victims, 258–59
Koretz’s skills, 6, 22, 34, 52, 78–79, 81–82
notorious swindlers, 10–11, 79–82, 221, 257–58
Connolly, Joseph
acquaintance of Koretz, 194–95
as defense counsel, 215, 230, 235, 240–41
Koretz’s departure from Nova Scotia, 223–24
in later years, 262
Cook County state’s attorney. See Crowe, Robert
Corbin, Arthur, 27
criminal proceedings. See also bankruptcy proceedings
federal mail-fraud charges, 148–49, 220–21, 247
guilty plea, 231, 238, 239, 240
imprisonment, 243–48
indictments, 116, 148–49, 220–22, 240, 243, 247
Koretz with prosecution team, 227
petition for pardon, 242–43
questioning by state’s attorney, 229–30
sentence, 241–42
testimony by investors and doctors, 240–41
Crowe, Frank, 64
Crowe, Patrick, 23–24
Crowe, Robert
background, personality, and style, 14–15, 23–25, 64–65, 85
crackdown on crime and corruption, 86–88, 212
death, 261
election as state’s attorney, 83, 85, 87, 209
judgeship, 68–69, 261
Koretz’s confession to, 230–32
law studies and early legal experience, 14, 27–29, 64–67
manhunt and credit for capture of Koretz, 133–35, 147–49, 209
at news of Bayano scam, 114–16
political ambition, 15, 64, 65, 65–67, 86–87, 148, 260–61
power as state’s attorney, 66
proceedings against Koretz, 219–22, 227, 229–30, 238, 239, 242–43
tough-on-crime reputation, 9, 63–64, 84, 148, 179–82
underworld connections, 9, 19, 211–12, 260–61
Curran, Basil, 6, 90–91
D
Daily Journal (Chicago), 119, 120, 121–22, 133
Daily News. See Chicago Daily News
Daily Tribune. See Chicago Daily Tribune
Darrow, Clarence, 87, 181–82
Davidson, Charles, 127–28, 129
Davies, William H., 202, 262
Davis, Abel, 202
death and burial, 248–53, 250
Decker, Alfred, 220
Delehanty, Joseph, 242
Dever, William, 87
disappearance. See manhunt and capture
Doherty, Jim, 259–60
Drake Hotel
banquet in honor of Koretz, 3, 6–8, 10, 12–13
Bayano offices, 11, 70–71, 104, 115
female visitors to Koretz’s suite, 99, 129–30
Duffy, Sherman, 139–40
Duffy, Tom, 259–60
E
economic prosperity, 8, 74–77
Eisenstaedt, Milton, 60
Evening American. See Chicago Evening American
Evening Post. See Chicago Evening Post
Ewing, Donald, 219
extradition. See manhunt and capture
F
Field, Marshall, 10
Fischel, Isaac, 73
Fisher, Harry, 94–95, 96, 125
Fitzgerald, F. Scott, 8, 174–75
Fitzgerald, Thomas, 62–64
Fitzhugh, Alex, 90
Fitzmorris, Charles, 86
Fleming, Joseph, 233, 234–35
Flemming, Horace, 201–2, 262
Fletcher, W. R., 246, 247, 251–52, 253
Foreman, Oscar G., 145
Fox, Anna, 51
Franks, Bobby, 179–82
Fraser, Millie, 131–32
Fuller, Henry Blake, 8
Fuller, William, 33
G
Galbraith, John Kenneth, 8, 258
Goodman, Andrew, 264, 265, 266
Goodman, Bill, 265, 266
Gorman, George, 88, 240–41
Great Gatsby, The, 174–75, 256
Grey, Zane, 164–65, 185–86, 188–89, 207, 216, 262
Gruening, Ernest, 155–56
Gumbiner, Stella, 220, 238–39, 270, 243
H
Halifax Evening Mail, 215, 217
Halifax Herald, 164, 169, 177
Halifax Morning Chronicle, 199, 204–5, 208
Hamlin, Harry F., 149, 156
Harding, Warren, 77, 83
Hargrave, George, 99, 129
Hearst, William Randolph, 121
Hecht, Ben, 80, 121–22, 125–26, 221, 256
Henriques, Diana, 258
Heppner, Henry and Company, 56, 201, 263
Herald and Examiner. See Chicago Herald and Examiner
Herrick, Genevieve Forbes, 233–34, 236, 248, 250–51
Hiltz, Francis, 201, 217, 262
Hopkins, Jacob, 241, 242
Hoyne, Maclay, 67
I
imprisonment
declining health and death in, 246, 247–48
/>
living conditions, 245–46
sentence, 241–42
Insull, Samuel, 9–10
investors. See also bankruptcy proceedings; Bayano River Syndicate
banquet in honor of Koretz, 3, 6–8, 10, 12–13
on capture of Koretz, 124–25, 206
eagerness to testify against Koretz, 220
formal complaint against Koretz, 114–15
Koretz’s contempt and lack of remorse for, 219, 236, 258
public ridicule of, 117, 140–41, 143–44
search for Koretz, 184–85
small investors, 92–93, 219, 263
unidentified investors, 144–45, 183
Irrmann, John, 52, 124
K
Kahnweiler, Leo, 102
Kahnweiler, Sidney, 124, 151–52, 220
Katz, Grace, 207
Kaufman, Herbert, 140–41, 148
Kennedy, Charles, 172, 173
Keyte, Lou (Koretz alias), 13, 153–56, 157–59. See also Nova Scotia hideaway
Kindleberger, Charles, 82
Kipling, Rudyard, 19
Kitzinger, Emil, 100, 140
Klarkowski, Stanley, 115, 129, 131–33, 151, 156
Klein, Henry
Bayano investment, 7, 101, 109, 140, 141, 264
financial help for Mae Koretz, 184
inspection trip to Panama and discovery of swindle, 100, 101, 109, 139–40
liquor business, 7, 47
partnership with Koretz, 47
purchase and sale of Pinehurst Lodge, 261
reward for capture of Koretz, 184–85
trust in Koretz, 47–49
Klein, Leon, 57, 137, 142
Klein, Maude, 53, 103
Koretz, Adolph, 7–8, 16, 123, 231, 239, 248, 264
Koretz, Blanche, 123, 184
Koretz, Emil
Bayano investment and losses, 8, 52–53, 264
loyalty to and affection for Koretz, 123, 148, 231, 248
return of investment to, 103, 114, 122–23, 142
search for Koretz, 112
Koretz, Ferdinand, 7, 16, 103, 114, 122, 264
Koretz, Heinrich (later Henry), 16, 20, 32, 249
Koretz, Julius
Bayano investment and losses, 7–8, 52, 264–65
as boy in Bohemia, 17
death, 266
return of investment to, 103, 106, 114
search for Koretz, 113
Koretz, Leo. See also Bayano River Syndicate
arrest (see manhunt and capture)
bases of operations, 35
Bronson alias, 13, 48–49, 127–28
con man’s skills, 6, 22, 34, 52, 78–79, 81–82
death and burial, 248–53, 250, 255
diabetes, 97, 170, 184, 240–41, 246, 247, 251
disappearance (see manhunt and capture; New York hideaway; Nova Scotia hideaway)
education, 22–23, 26–27
family background, 15–18, 20–21
farm mortgage scam (see Arkansas rice farms)