Empire of Deception

by Dean Jobb

  184 almost dispatched men to Paris This was mentioned in several press accounts, including “Swindler Led Merry Life of Country Squire,” Chicago Daily Tribune, November 25, 1924; and “Bank Clerk’s Alert Eyes See Real Swindler under Beard,” Chicago Evening American, November 25, 1924.

  184 seen him in a hotel lobby “Canada Moves to Give Koretz Back to U.S.,” Evanston News-Index, November 24, 1924.

  184 to a sanatorium in Montreal While this was widely reported, the sanatorium was never identified and there is no evidence Leo traveled to any part of Canada besides Nova Scotia. See “Ask New Indictment Here as Captive Nears Break,” Chicago Evening American, November 25, 1924; and “State and U.S. Claim Right to Punish Koretz,” Chicago Daily Tribune, November 25, 1924.

  184 a matter of conjecture “$10,000 Reward Out for Koretz Capture in Million Swindle,” Chicago Daily Tribune, September 12, 1924.

  184 Klein provided a personal guarantee Petition of Henry A. Klein, dated March 23, 1925, In the Matter of Leo Koretz, Bankrupt (Chicago) (see chap. 1 notes).

  185 a poster announcing the new reward The poster was reproduced in the Halifax Evening Mail, November 25, 1924. After Leo’s arrest, Thomas Raddall clipped and kept a copy, now in the “Pinehurst Lodge” file in his papers. Raddall Fonds, series 14, box 31, file 1 (see chap. 21 notes).

  185 an infernal place Grey, Tales of Swordfish and Tuna, 12–13 (see chap. 20 notes).

  185 with thrilling zest Ibid., 13.

  CHAPTER 24

  186 just to make a splurge “Women and $100 Tips Trapped Leo,” Chicago Herald and Examiner, November 25, 1924; and “ ‘Why Don’t the Women Leave Me to Myself?’—Koretz,” Chicago Daily Tribune, November 28, 1924.

  186 sending letters and expensive gifts “Bare Secret Trips from Halifax for Huge Sums,” Chicago Evening American, November 28, 1924. Elizabeth Mitchell was described as a student at Halifax’s Convent of the Sacred Heart school in “Glancing over Nova Scotia—Liverpool,” Halifax Herald, April 21, 1924. The Chicago Daily Journal went so far as to accuse Leo of “making love” to Mitchell’s “young daughter;” see “Vote Indictment of Koretz,” Chicago Daily Journal, November 28, 1924. Other press accounts alleged Leo was involved with an unnamed, underage girl who had been sent away to a convent, a possible reference to Mitchell’s daughter.

  187 I figured if this man Abbott’s recollections are found in Oickle, Friends and Neighbours, 137–38 (see chap. 21 notes).

  187 too big-eyed “No Signs of Treasure Hidden on the Koretz Estate at Pinehurst,” Halifax Morning Chronicle, November 27, 1924.

  188 practically made Zane Grey “Biggest Confidence Man in U.S. Captured in Halifax,” Halifax Morning Chronicle, November 24, 1924; “‘Millionaire’ Keytes Cuts Wide Swath in Province,” Halifax Morning Chronicle, November 25, 1924.

  188 I’ll show you how “Koretz’ Arrest Halts $1,000,000 Scheme,” Chicago Daily News, November 28, 1924.

  188 I planned to make Zane Grey “Bare Secret Trips from Halifax for Huge Sums,” Chicago Evening American, November 28, 1924.

  188 “ripped” into the author “‘Why Don’t the Women Leave me to Myself?’—Koretz,” Chicago Daily Tribune, November 28, 1924.

  188 If it were possible Grey, Tales of Swordfish and Tuna, 95 (see chap. 20 notes).

  189 He didn’t know a good book “Didn’t Know Good Books from Bale of Hay, Says Collector,” Chicago Evening American, November 29, 1924. The Evening American reporter mistakenly identified him as F. J. Logan. John D. Logan’s Acadia University connection is confirmed in William H. New, ed., Encyclopedia of Literature in Canada (Toronto: University of Toronto Press, 2002), 674.

  189 cheap mystery and detective stories “Koretz Canadian Home Looks Like a Furniture Showroom,” Chicago Herald and Examiner, November 30, 1924.

  190 have a tendency to demoralize Quoted in Morrison and Friend, “We Have Held Our Own,” 94 (see chap. 20 notes).

  190 the talk of the district “Koretz Poses as Dramatic Critic and Fictionist,” Halifax Morning Chronicle, November 25, 1924.

  190 considering lodging a complaint “How Leo Koretz Lived While a Fugitive,” Chicago Evening American, November 25, 1924; and “Swindler Led Merry Life of Country Squire,” Chicago Daily Tribune, November 25, 1924.

  190 forbade their daughters “Ask New Indictment Here as Captive Nears Break,” Chicago Evening American, November 25, 1924.

  190 soon had no use for him “Women and $100 Tips Trapped Leo,” Chicago Herald and Examiner, November 25, 1924.

  CHAPTER 25

  191 avid for a good time “Pinehurst Lodge,” Raddall Fonds, p. 3 (see chap. 21 notes). Raddall altered the name Mabelle Gene to Arabelle Lee in his account of Leo’s time in Nova Scotia, but his description of her—and her relationship with Leo—confirms he was referring to Banks.

  191 Stop knocking, you pessimists Quoted in Morrison and Friend, “We Have Held Our Own,” 82–83 (see chap. 20 notes).

  192 flattered with the notion “Pinehurst Lodge,” Raddall Fonds, p. 3 (see chap. 21 notes).

  193 Visitors from England Phyllis R. Blakeley, Glimpses of Halifax, 1867–1900 (Halifax: Public Archives of Nova Scotia, 1949), 17.

  193 Leo entertained as often It was widely reported that Leo threw a party for American actress Edna Preston and her eighteen-member troupe when they performed in Halifax that summer. He hired cars to convey the players to the Waverley, a lakeside hotel north of the city, for dinner. A quart of champagne awaited each guest, and champagne “flowed in a golden stream” into the early hours of the morning. See “Chicago Hears Departure of Koretz May Be Delayed by Young Lady’s Charges,” Halifax Morning Chronicle, November 28, 1924.

  193 foreign Johnny “Delighted in Strolls with Waitresses, Domestics and the Girl He Called Topsy,” Chicago Evening American, November 25, 1924.

  194 Leo hobnobbed Information about the club and its membership was found in the records of the Royal Nova Scotia Yacht Squadron, MG 20, vol. 3031, no. 7, NSARM. “Lon Keyte” is listed among ten new members elected at the April 28, 1924, meeting of the managing committee, and the misspelling persisted in references to Leo in other club records and publications. His membership was noted in “Koretz Remanded for 15 Days, Denies Guilt,” Chicago Daily News, November 24, 1924, and other press reports.

  194 No … you take one of mine “Koretz Didn’t Like W.M.P’s Cigars,” Halifax Evening Mail, November 24, 1924.

  195 I noticed this very distinguished “‘Guilty’: To Be Koretz Plea,” Chicago Daily Tribune, December 2, 1924.

  195 of all classes and standing “Delighted in Strolls with Waitresses, Domestics and the Girl He Called Topsy,” Chicago Evening American, November 25, 1924.

  195 at a furious pace “Pinehurst Lodge,” Raddall Fonds, 3 (see chap. 21 notes).

  195 as if the American Revolution Charles Ritchie, An Appetite for Life: The Education of a Young Diarist, 1924–1927 (Toronto: Macmillan, 1977), 33.

  195 shut out of many Halifax clubs “Zatzman No Ordinary Joe: Businessman Will Forever Be Linked with Dartmouth,” Halifax Daily News, May 25, 2000. The exclusion of Jews in Nova Scotia is also documented in Sheva Medjuck, Jews of Atlantic Canada (St. John’s, NL: Breakwater Books, 1986), 39–41. Population figures are drawn from Gerald Tulchinsky, Canada’s Jews: A People’s Journey (Toronto: University of Toronto Press, 2008), 199, 499; Medjuck, Jews of Atlantic Canada, 31; and Cutler, The Jews of Chicago, 285 (see chap. 4 notes).

  196 as if he were going for a stroll “Pinehurst Lodge,” Raddall Fonds, 5 (see chap. 21 notes). Raddall mentioned his acquaintance with local hunters and guides in his memoir, In My Time, 124–25, 130 (see chap. 21 notes).

  196 Jack Frost made his appearance “Local and Other Items,” Caledonia (NS) Gold Hunter and Farmers’ Journal, November 21, 1924. The account that follows of events from November 21 to 23 is compiled from accounts in the Chicago and Halifax papers. George Banks’s role as driver on the trip is recorded in Johnson, Brookfield in the Wilderness, 54 (se
e chap. 21 notes).

  196 Weekend getaways to the city Leo considered buying a new home closer to Halifax that fall and contacted at least one steamship line to inquire about voyages to the Caribbean or Central America. While journalists later speculated he had been planning another escape, Leo claimed he thought a southern vacation would “fit in with my character of a writer and one who was fond of wandering” and he had intended to return to Nova Scotia. See transcript of evidence, pp. 14, 20, In the Matter of the Estate of Leo Koretz in Bankruptcy (Halifax) (see chap. 19 notes).

  197 His church-attendance record “Halifax Men Figured,” Halifax Acadian Recorder, November 25, 1924; and “Swindler Led Merry Life of Country Squire,” Chicago Daily Tribune, November 25, 1924. Chapter 26

  CHAPTER 26

  201 repairing the lining Details of how Leo was detected and even the names of those involved vary in the press reports, particularly in the rushed coverage immediately following his arrest. The description presented here is based on the best sources available—interviews with two of the key figures, Horace Flemming and William Davies. See “Ottawa Has Consented to the Extradition of Koretz,” Halifax Morning Chronicle, November 26, 1924; “Fur-Trimmed Silk Pajamas for ‘Lou Keytes,’ ” Halifax Evening Mail, November 25, 1924; “New Indictments for Koretz; He is Due Here Sunday,” Chicago Evening Post, November 28, 1924; and “Koretz in Loeb Case Thought Banker,” Chicago Evening American, November 28, 1924.

  201 little coverage in the Halifax press The Halifax Morning Chronicle published two stories on the Bayano swindle. See “Oil Company a Huge Swindle, Chicago Hears,” Halifax Morning Chronicle, December 14, 1923. Publication of a second article is referred to in “‘Millionaire’ Keytes Cuts Wide Swath in Province,” Halifax Morning Chronicle, November 25, 1924.

  203 What’s wanted? Scriven described the arrest and what was said in two press interviews: “Was Preparing for Get-Away to South When Wrrested,” Halifax Evening Mail, November 25, 1924; and “Koretz Wants to See Wife, but Won’t Ask Her,” Chicago Herald and Examiner, December 2, 1924. The account that follows also draws on other press reports.

  203 For God’s sake “Girl Affair Halts Koretz,” Chicago Daily Tribune, November 27, 1924. Banks’s release after questioning is also reported in “Koretz Tells Story; New Flight Blocked,” Chicago Evening American, November 24, 1924.

  203 He was very calm “Koretz Tells Story; New Flight Blocked,” Chicago Evening American, November 24, 1924.

  204 the greatest confidence man “Biggest Confidence Man in U.S. Captured in Halifax,” Halifax Morning Chronicle, November 24, 1924.

  205 ARREST KORETZ IN CANADA The Chicago Herald and Examiner’s first reports appeared the following day. See “Koretz Capture Nipped New Flight,” November 25, 1924.

  205 with a beautiful woman “Koretz Tells Story; New Flight Blocked,” Chicago Evening American, November 24, 1924.

  205 Leo was front-page news “Charged with Huge Swindle,” Wolfville (NS) Acadian, December 4, 1924; and news item in the Blairmore (AB) Enterprise, December 11, 1924. See also “Arrest Chicago’s Ponzi in a Hotel at Halifax,” Toronto Daily Star, November 24, 1924.

  205 Newspaper junkies in Paris “Dernière heure,” Le Petit Parisien, December 6, 1924.

  205 newest criminal sensation “Supreme Bluff: Chicago Duped by Story of Great Riches,” Straits Times (Singapore), January 12, 1925.

  205 reached readers in Brisbane “Men and Matters,” Worker (Brisbane), December 11, 1924; “American Oil Fraud: Swindler on Its Simplicity,” Advocate (Burnie), February 2, 1925.

  205 far from destitute “Mrs. Koretz Owns Home,” Chicago Daily News, November 25, 1924.

  206 The children and I want only “Mrs. Koretz Earns Success,” Chicago Evening American, November 25, 1924.

  206 The family had hoped “Kin Hoped for Death, Not Cell, for Koretz,” Chicago Evening American, November 26, 1924.

  206 I pray every night “Koretz Arrest Kept from Mother, 80,” Chicago Evening American, November 25, 1924.

  206 It’s been a pleasant day “State and U.S. Claim Right to Punish Koretz,” Chicago Daily Tribune, November 25, 1924.

  207 a claim for $753,067 The tax claim and the receivers’ objection were widely reported. See, for instance, “Koretz Remanded for 15 Days, Denies Guilt,” Chicago Daily News, November 24, 1924.

  207 to the people from whom it was stolen Grace Katz to Harlan F. Stone, November 30, 1924. RG 60, Department of Justice records, Classified Subject Files, file 36-18-3 (Leo Koretz), box 9131, NARA, College Park, MD (emphasis in original).

  207 May be the joke’s on me “Owns Bookstore in New York,” Halifax Morning Chronicle, November 26, 1924; and “How Leo Koretz Bought a Bookshop,” Halifax Evening Mail, November 26, 1924.

  207 Mr. Grey … was very much perturbed “Koretz Capture Nipped New Flight,” Chicago Herald and Examiner, November 25, 1924.

  208 as a respectable person “Two of a Kind,” Halifax Morning Chronicle, December 2, 1924.

  208 who could have been knocked down “News of Arrest Shocks People of Liverpool,” Halifax Morning Chronicle, November 25, 1924.

  208 flashed across the skyline “Koretz Dies in Jail,” Liverpool (NS) Advance, January 14, 1925.

  208 The few Halifax people “Ottawa Has Consented to the Extradition of Koretz,” Halifax Morning Chronicle, November 26, 1924.

  208 was never received with open arms “Keyte Will Leave Friday,” Halifax Acadian Recorder, November 26, 1924.

  208 a bolt from the blue “Mr. Keyte Arrested at Halifax,” Caledonia (NS) Gold Hunter and Farmers’ Journal, November 28, 1924. The seizure of Leo’s car was reported in “Lawyer Asks Aid to Halt Delay Sought by Trust Firm,” Chicago Evening American, November 26, 1924. The return of Banks and his daughter to Caledonia by train was noted in Johnson, Brookfield in the Wilderness, 54 (see chap. 21 notes).

  208 Had Leo chosen to live “Koretz Wasted Golden Opportunity to Escape Detection at Pinehurst,” Halifax Morning Chronicle, December 1, 1924.

  CHAPTER 27

  209 Crowe’s men “Arrest Koretz in Canada,” Chicago Daily Tribune, November 24, 1924.

  209 a notable achievement for law enforcement Ibid.

  209 Crowe would not permit himself “Wedged Way into Elite Circles of Society,” Chicago Evening American, November 24, 1924.

  209 merely had to make the arrest “Koretz Remanded for 15 Days, Denies Guilt,” Chicago Daily News, November 24, 1924.

  210 Chicago’s arch-criminal Asbury, The Gangs of Chicago, 341 (see chap. 2 notes). Details of Capone’s Cicero takeover and the O’Banion and Tancl murders are drawn from Asbury, The Gangs of Chicago, 331–36, 342–51; and Curt Johnson and R. Craig Sautter, The Wicked City: Chicago from Kenna to Capone (New York: Da Capo, 1998), 161–72.

  210 They tell me you are crooked Sandburg, “Chicago,” in Chicago Poems, 1 (see chap. 2 notes).

  210 Either the gunman Editorial page note, Chicago Daily News, November 28, 1924.

  211 bribery was as much a fixture “Corruption Rife in State Courts, Olson Charges,” Chicago Daily Tribune, January 10, 1925.

  211 a system had been worked out Lewis and Smith, Chicago, 467–68 (see chap. 8 notes).

  211 the gaudiest of all gangland’s Asbury, The Gangs of Chicago, 351 (see chap. 2 notes).

  211 Familiarity between judges and gangsters “Hits Judges Who Attend Crook Funerals,” Chicago Evening Post, November 29, 1924.

  211 We’re going to have a Republican Johnson and Sautter, The Wicked City, 171.

  211 a gangland favorite Ibid., 210. Sbarbaro’s role in barring the press from the chapel was reported in “Chicago Gangsters Appear for Funeral,” New York Times, October 16, 1926.

  212 The gunmen merely take advantage “Bullets, Beer and the Law,” Chicago Daily News, November 25, 1924.

  212 teach the masters of crime “Who is Doing the Protecting?” Chicago Evening Post, November 19, 1924.

  212 With the community aroused “No Flowers for Crowe,�
�� Chicago Herald and Examiner, November 29, 1924.

  212 the biggest smash “Crowe Directs Police Raids in Big Chicago Cleanup,” Chicago Herald and Examiner, November 26, 1924.

  CHAPTER 28

  213 Leo stood with his hands Photographs of Leo in his beard appeared in the Chicago and Halifax newspapers. The description of his clothes and the reference to “last word in style” appeared in the caption of the photograph published under the headline FACE ON, in the Halifax Evening Mail, November 24, 1924. The change from brown suit to green is noted in “Koretz Admits His Guilt, Attorneys Declare,” Halifax Evening Mail, November 24, 1924.

  213 I want to go back “Koretz Admits His Guilt, Attorneys Declare,” Halifax Evening Mail, November 24, 1924.

  214 Can I waive my right Copy of Evidence, Judge Wallace’s handwritten synopsis of the proceedings, in Department of Justice (Canada) Extradition Files, RG13-A5, vol. 2076, file 1914, Library and Archives Canada, Ottawa, ON.

  215 a witty, big-hearted, flamboyant Frank Manning Covert and Barry Cahill, Fifty Years in the Practice of Law (Montreal: McGill-Queen’s University Press, 2005), 30–31.

  215 something sinister “Authorities Have Duty to People of Halifax and Nova Scotia in the Case of Leo Koretz,” Halifax Evening Mail, November 25, 1924.

  215 we are certain his record The comment was widely reported. See, for instance, “Departure of Koretz is Held Up,” Halifax Evening Mail, November 26, 1924.

  215 spent money “like water” “New Dupes of Swindler Sought in Nova Scotia,” Chicago Herald and Examiner, November 26, 1924.

  216 His dances, his dinners “Koretz Remanded for 15 Days, Denies Guilt,” Chicago Daily News, November 24, 1924.

  216 a brave front “Lawyer Asks Aid to Halt Delay Sought by Trust Firm,” Chicago Evening American, November 26, 1924.

  216 a secret plan Ibid.

  216 a modern version “Koretz Start Home Set for To-morrow,” Chicago Daily News, November 26, 1924.