Ponzi's Scheme (38 page)

197

refining a daring survival plan: Ponzi, pp. 157–58. In his autobiography, Ponzi says he came up with the idea to “borrow” Hanover Trust's assets on the ride home the night before. He no doubt was still refining the plan en route to work that morning.

197

“master of the situation”: Ibid., p. 157.

197

“Every time I refunded the principal”: Ibid.

198

“He wasn't likely to make any trouble”: Ibid.

198

“unless I happened to have”: Ibid.

199

“The investigation would have ended right there”: Ponzi, p. 158.

199

its lead headline triumphantly predicting: “Ponzi Closes; Not Likely to Resume,”
Boston Post,
July 27, 1920, p. 1.

200

PUBLIC NOTICE:
Paid notice on page 1 of the
Boston Post,
July 27, 1920.

200

Ponzi suspected that the officials: Ponzi, p. 156. Ponzi's chronology is slightly compressed on this point. He places the withdrawal of the police as occurring the afternoon of July 26, immediately after he struck his deal with Pelletier. The
Post
more credibly reported that the police disappeared the next day. See “Million Is Paid Back by Ponzi,”
Boston Post,
July 28, 1920, p. 1.

201

Ponzi told Dunn that the newspaper: Kenny, p. 196, and Ponzi, pp. 160–61. Neither Kenny nor Ponzi specifies when Ponzi made his threat to Dunn, but it stands to reason Ponzi would have done so immediately upon seeing the story as he marshaled his resources to confront the run of withdrawals.

201

A lawyer for one of his investors: “Suit Filed Against Ponzi, but Quickly Withdrawn,”
Boston Evening Globe,
July 27, 1920, p. 2; “Withdraws Bill to Enjoin,”
Boston Evening Transcript,
July 27, 1920, p. 5; “Million Is Paid Back by Ponzi,”
Boston Post,
July 28, 1920, p. 1; Ponzi, pp. 159–60. Biographical information on Alton Parker from 1920 U.S. Census.

202

“one of those lawyers”: Ponzi, p. 160.

202

Dan Coakley: Beatty, pp. 100, 137–39, 265; “Daniel H. Coakley, Dead at 87; Long Political Figure,”
Boston Herald,
September 19, 1952; “Dan Coakley Has Been Teamster, Conductor, Reporter and Politician,”
Boston Traveler,
September 30, 1921; Albert Hurwitz, “The Ponzi Bubble,”
Boston Sunday Herald Magazine,
August 30, 1970, p. 13.

203

Ponzi adored Coakley: Ponzi, p. 160.

203

There was no letup: The scene at Ponzi's office on July 27, 1920, was taken from multiple sources, including: “Million Is Paid Back by Ponzi,”
Boston Post,
July 28, 1920, p. 1; “Ponzi Has World Scheme,”
Boston Evening Transcript,
July 27, 1920, p. 1; “Exchange ‘Wizard' Is Paying Claims,”
New York Times,
July 28, 1920, p. 13; “Ponzi Pays Money Back to Hundreds,”
Boston Globe,
July 28, 1920, p. 1; and “Six Women Faint in Crowd at School St. Building Seeking to Redeem Notes,”
Boston Herald,
July 28, 1920, p. 1. Elements of the scene also came from a photograph found in the files of the
Boston Globe
stamped July 27, 1920, and captioned “Crowd Outside of Ponzi's Office, 27 School Street.” A note written in red pencil ordered that the photo be saved for Ponzi's eventual obituary.

204

Perhaps hoping to reassure: “Ponzi Has World Scheme,”
Boston Evening Transcript,
July 27, 1920, p. 1.

204

arrangements to take over: “Exchange ‘Wizard' Is Paying Claims,”
New York Times,
July 28, 1920, p. 13.

205

“a case of ‘heads I win': Ponzi, p. 160.

205

At the end of the day: “Million Is Paid Back by Ponzi,”
Boston Post,
July 28, 1920, p. 1.

206

Ponzi quietly took a precaution: Annual Report of the Massachusetts Commissioner of Banks, 1921, pp. vii–viii.

207

To allay his concerns: Ibid.

208

Ponzi turned to a waiting
Post
photographer: Photo captioned “Charles Ponzi as He Appeared Yesterday,”
Boston Post,
July 28, 1920, p. 20.

208

bigger news in the
Post:
Front page of the
Boston Post,
July 28, 1920.

208

another cutting attack by Clarence Barron: “Seeking Source of Big Profits,”
Boston Post,
reprinted from the
Boston News Bureau,
July 28, 1920, p. 20.

208

the swarm of people: “Ponzi Puts Wealth at $24,000,000; Pays Out $750,000 More,”
Boston Herald,
July 29, 1920, p. 1.

209

“Bankers and businessmen can easily understand: “Exchange ‘Wizard' to Fight Bankers,”
New York Times,
July 29, 1920, p. 15.

209

Ponzi upped his estimate: “Ponzi Puts Wealth at $24,000,000; Pays Out $750,000 More,”
Boston Herald,
July 29, 1920, p. 1.

209

“Now please don't think that I'm boasting”: “Exchange ‘Wizard' to Fight Bankers,”
New York Times,
July 29, 1920, p. 15.

210

“As I told Ponzi the other day”: “Uncle Sam to Get the Facts of Ponzi's Case,”
Boston Post,
July 29, 1920, p. 1.

210

Ponzi relieved the tedium, hunger, and thirst: “Exchange ‘Wizard' to Fight Bankers,”
New York Times,
July 29, 1920, p. 15.

210

James Francis Morelli: “Receivers Searched Bank Officers' Boxes,”
Boston Globe,
September 4, 1920. Also, copies of several of Morelli's poems were preserved in the library files of the
Boston Globe.

211

an association called the Ponzi Alliance: “Exchange ‘Wizard' to Fight Bankers,”
New York Times,
July 29, 1920, p. 15.

211

half to three-quarters of a million dollars: “Uncle Sam to Get the Facts of Ponzi's Case,”
Boston Post,
July 29, 1920, p. 1.

211

sign written cheerily in crayon: “Ponzi Makes Big Profits from ‘Run,' ”
Boston Daily Globe,
July 29, 1920, p. 1.

211

company outing at a resort: “Mass of Ponzi's Papers Found on Junk Heap May Give New Clue to Assets,”
Boston Herald,
September 2, 1920, p. 1.

211

banquet where he was the guest of honor: “McNary Hailed Ponzi as ‘Financial Genius,' ”
Boston Post,
August 15, 1920, p. 12.

211

William McNary: Congressional biography, found online at http://bioguide.congress.gov/scripts/biodisplay.pl?index=M000584.

212

Calvin Coolidge: “Uncle Sam to Get the Facts of Ponzi's Case,”
Boston Post,
July 29, 1920, p. 1.

212

the
Post
's first editorial on Ponzi: “It Cannot Last,”
Boston Post,
July 29, 1920, editorial page. Editorials were unsigned, but this was clearly the work of Richard Grozier, who wrote it either himself or in collaboration with another writer. Regardless, it was fully his responsibility as the paper's acting editor and publisher, and he certainly knew that any resulting cost would be borne by him.

215

The door to the Bell-in-Hand: “Ponzi to Start ‘Bank' in New York,”
New York Times,
July 30, 1920, p. 1.

215

time with his new lawyer: “Pelletier Begins to Audit Ponzi's Books,”
Boston Herald,
July 30, 1920, p. 1.

216

a large revolver lying menacingly: Ibid.

216

One young man, sweat dripping: Ibid.

216

Just after the four o'clock closing time: “Ponzi to Start ‘Bank' in New York,”
New York Times,
July 30, 1920, p. 1.

216

When the inevitable question arose: Ibid.

216

“And then I found my inspiration”: “Exchange ‘Wizard' to Fight Bankers,”
New York Times,
July 29, 1920, p. 1.

217

McMasters seemed intent on antagonizing them: “Officials Balked by Ponzi Puzzle,”
Boston Post,
July 30, 1920, p. 1.

217

his old nemesis: “Governor Acts in Ponzi Case,”
Boston Evening Globe,
July 29, 1920, p. 1.

217

an investigation of Ponzi's rival: “Officials Balked by Ponzi Puzzle,”
Boston Post,
July 30, 1920, p. 1.

217

a tantalizing bit of information: Ibid. Ponzi, pp. 161–62.

218

EXTRA:
“Coupon Plan Is Exploded
,”
Boston Post,
July 30, 1920, p. 1.

218

The
Post
also turned to ridicule: “Plenty of Opportunity,” editorial cartoon printed in the
Boston Post,
July 30, 1920, p. 11.

219

The
Boston Traveler
ran a sports column: “Old Scout Jim Compares Babe Ruth with Financier Ponzi,”
Boston Traveler,
July 30, 1920.

219

quoted a North End banker: “Ponzi Pays $1,450,000 in 3 Days,”
Boston American,
July 30, 1920, p. 1.

219

Ponzi's secret formula for wealth: “N.Y. Man Tells How Ponzi May Get His Millions,”
Boston American,
July 30, 1920, p. 2.

219

In the Friday edition: “Both Barron and Ponzi Give Talk,”
Boston Post,
July 31, 1920, p. 5.

220

“Ponzi or anyone else”: Ibid.

220

“From the several articles”: Ibid.

220

the temperature approaching eighty degrees; Ponzi stepped outside: “May Enter Politics,”
Boston Post,
July 31, 1920, p. 5; “Ponzi Gives Aid to Federal Agents,”
New York Times,
August 1, 1920, p. 10. The temperature comes from a chart on the front page of the
Boston Post,
July 31, 1920.

221

gleefully told reporters: “Federal Officials Begin Ponzi Inquiry,”
New York Times,
July 31, 1920, p. 2; “May Enter Politics,”
Boston Post,
July 31, 1920, p. 5.

221

“I am not a Red”: “Ponzi Gives Aid to Federal Agents,”
New York Times,
August 1, 1920, p. 10.

221

Pelletier withdrew from the probe: “Allen Guiding Ponzi Inquiry,”
Boston Daily Globe,
July 31, 1920, p. 1; “Federal Officials Scout Ponzi Claims,”
Boston Post,
July 31, 1920, p. 1; “Ponzi Sues C. W. Barron for $5,000,000; Pelletier Drops Case; U.S. Audit Begins,”
Boston Herald,
July 31, 1920, p. 1; “Federal Officials Begin Ponzi Inquiry,”
New York Times,
July 31, 1920, p. 2; “Ponzi Gives Aid to Federal Agents,”
New York Times,
August 1, 1920, p. 10.

222

a meek-looking fellow named Edwin L. Pride: “Starts Audit of Ponzi's Books,”
Boston Evening Globe,
July 30, 1920, p. 1; “Audit on Ponzi Accounts,”
Boston Traveler,
July 31, 1920, p. 1; “Federal Officials Scout Ponzi Claims,”
Boston Post,
July 31, 1920, p. 1.

222

Ponzi joined Pride for a meeting: “Federal Officials Scout Ponzi Claims,”
Boston Post,
July 31, 1920, p. 1.

222

“There can be but one result.”: Ibid.

222

impossible for Ponzi to have made a fortune: “Washington Authorities State He Could Not Possibly Have Made Huge Fortune Dealing in Reply Coupons,”
Boston Post,
July 31, 1920, p. 1.

223

scolded Attorney General Allen: “New Hampshire Taking a Hand in Ponzi Case,”
Boston Sunday Post,
August 1, 1920, p. 1.

223

tapping Ponzi's telephones: Albert Hurwitz, “The Ponzi Bubble,”
Boston Sunday Herald Magazine,
August 30, 1970, p. 13. As an assistant attorney general on the Ponzi case, Hurwitz had firsthand knowledge of the telephone taps.

223

Allen also sent one of his assistants: “Atty Gen Allen Trying to Get Interview with Ponzi,”
Boston Globe,
August 2, 1920, p. 2; Albert Hurwitz, “The Ponzi Bubble,”
Boston Sunday Herald Magazine,
August 30, 1970, p. 13.

223

Barron seconded the
Post
's conclusion: “Dazzling Future with Limousines Rolling on Coupon Carpet,”
Boston Herald,
August 1, 1920, p. 8. Reprinted from the
Boston News Bureau,
which used the headline “ ‘Ponzied' Finance.”

224

Boston American
was crowing: “Wife Tells of Ponzi's Plans,”
Boston American,
July 1, 1920, p. 1.

224

Mr. and Mrs. Charles Ponzi: “Ponzi Promises $100,000 to Home for Children,”
Boston Herald,
August 1, 1920, p. 1; “New Hampshire Taking a Hand in Ponzi Probe,”
Boston Sunday Post,
August 1, 1920, p. 1.

225

Ponzi got more good publicity: “Ponzi the New Emancipator,”
Boston Herald,
August 1, 1920, p. 8.

225

Ponzi spent a relatively quiet Sunday: “Ponzi Investigation Goes on Day and Night,”
New York Times,
August 2, 1920, p. 3; “Film Men Keep Ponzi Busy; Ponzi Home Mecca of Curious; Ponzi Takes Flight,”
Boston Post,
August 2, 1920, p. 6.

225

With the cameras rolling: Muriel Caswall, “Ponzi Enjoys Himself Before the Camera,”
Boston Sunday Post,
August 8, 1920, p. 39. Although the story was published on August 8, it describes a scene that took place a week earlier.

226

Ponzi had an inspiration: “Film Men Keep Ponzi Busy; Ponzi Home Mecca of Curious; Ponzi Takes Flight,”
Boston Post,
August 2, 1920, p. 6.

227

He was forty-six, with a young wife: 1920 U.S. Census data on William McMasters and family.

227

He called Richard Grozier: “McMasters Loses Both the Ponzi Suits,”
Boston Globe,
February 11, 1921.

228

Grozier offered McMasters the fabulous sum: Kenny, p. 196; “McMasters Loses Both the Ponzi Suits,”
Boston Globe,
February 11, 1921.

228

The story, under McMasters's byline: “Declares Ponzi Is Now Hopelessly Insolvent,”
Boston Post,
August 2, 1920, p. 1.