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Empire of Deception

Page 33

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
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  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)

 

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