The cleverness and boldness with which the up-to-date investment
swindler plies his craft are almost incredible. Wherever you find a
fraudulent scheme you will find both of these elements present in
some degree--but the comparative proportion of one to the other is
generally determined by the element of time of operation.
For example, if the projectors of a scheme are old hands at the game
and have established records of the wrong sort, then the idea of quick
results is not only attractive, but often imperative. There are many
"old offenders" in the profession of investment swindling who have
been convicted and have "done time" in jails and penitentiaries, but
have not yet learned to prefer straight to crooked finance.
Men of this character realize that a "quick getaway" is a cardinal
essential of success; they must complete the transaction and get in
the harvest before there is time for the public to wake up and do any
investigating.
The length to which the bolder spirits in this class will go almost
surpasses credibility. Here is an example, discovered by Detective
Wooldridge of Chicago, of the tricks to which they will resort in
order to create the impression of having the backing of men or
institutions of strength and character:
Through introduction by social friends, the local representative of an
investment scheme was able to open a checking account with a banking
and trust company in a big city--a company of such high standing
that it is very widely known outside of financial circles and among
people of small means. Its endorsement was worth "ready money" to
any enterprise, and the fact was keenly appreciated by the "fiscal
agents" of the Brite & Fair Bonanza Company.
After the opening of his personal checking account the fiscal agent
lost no time in cultivating the acquaintance of the trust officer
of the banking institution, which did a very large business in the
discharge of trusts. One day the depositor came to this officer and
explained that he had a very simple little trust which he wished to
have executed. Finding it necessary to leave the city for a few days,
he wished to provide for the delivery of a sealed package, containing
"valuable papers," to a man whose name and personal description was
given. The person to call for the package would leave a certified
check, in the amount of $1,000, which was to be placed to the credit
of the "fiscal agent" of the Brite & Fair Bonanza Company, whose
business connections were unknown to the trust officer of the banking
and trust company.