Ponzi's Scheme
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attorney general immediately issued a statement: “Allen Finds Discrepancy in Ponzi’s Statement of His Financial Operations,” Boston Herald, August 10, 1920, p. 2.
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an office he had set up in the State House: Allen bought space to run the announcement on the front page of the Post on August 10, 1920.
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Ponzi rushed to the tenth floor: “What He Told Allen Was Bull, Says Ponzi,” Boston Daily Globe, August 10, 1920, p. 1.
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nibbling on the remnants of a box lunch: Ibid.
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“I have played fair”: “Ponzi Stops Payment—Not to Take Up Any Notes upon Loans,” Boston Post, August 10, 1920, p. 1.
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“All I told Attorney General Allen”: “What He Told Allen Was Bull, Says Ponzi,” Boston Daily Globe, August 10, 1920, p. 1.
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“That I am solvent”: “Ponzi Stops Payment—Not to Take Up Any Notes upon Loans,” Boston Post, August 10, 1920, p. 1.
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the shouts of newsboys: Ibid.
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“Don’t you fellows knock me”: “What He Told Allen Was Bull, Says Ponzi,” Boston Daily Globe, August 10, 1920, p. 1.
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“I am broke”: Ibid.
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Harry Frazee: “Ponzi Very Sore over Treatment,” Boston Post, August 10, 1920, p. 2.
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a devoted Red Sox fan: “Ponzi Helped Himself to $1,000 Deposits,” Boston Herald, Sept. 6, 1920, p. 1.
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Ponzi ducked outside for a snack: “Ponzi Very Sore over Treatment,” Boston Post, August 10, 1920, p. 2. Although the story is unbylined, the candor and comfort Ponzi displays with the reporter make it reasonable to conclude that it was the work of Santosuosso.
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owlish glasses, receding hairline, and soft jowls: Photograph of Herbert Baldwin accompanying undated story found in library files of the Boston Herald, headlined “Baldwin Joins B & M Staff.”
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“Baldy,” as his friends in the newsroom: “ ‘Baldy’ Quits B & M Post,” Boston Herald, October 13, 1949.
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while growing up in Everett: Biographical details on Baldwin came from 1920 and 1930 U.S. Census data, and also from an obituary, “Herbert L. Baldwin, 79, Former Boston Newsman,” Boston Herald, January 23, 1973.
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“That’s Ponsi”: Herbert L. Baldwin, “Canadian ‘Ponsi’ Served Jail Term,” Boston Post, August 11, 1920, p. 1.
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“Positively, that’s the same man”: Ibid.
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notorious Montreal padrone Antonio Cordasco: Ibid. Other details from Baldwin’s trip to Montreal also come from his August 11, 1920, story.
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“Are you sure?”: Kenny, p. 198.
Chapter Seventeen: “I’m not the man.”
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spent the morning in Lexington: “Ponzi’s Talk Leaves Club Still Puzzled,” New York Times, August 11, 1920, p. 15.
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a summer thunderstorm: “Relief from Heat Today,” Boston Post, August 10, 1920, p. 1.
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overdrawn his account by $441,778: Cunningham v. Commissioner of Banks, 144 N.E. 447; Annual Report of the Massachusetts Commissioner of Banks, 1920, p. vii.
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a “battle royal”: “Ponzi Tells Kiwanis Club How He Got His Millions,” Boston Evening Globe, August 10, 1920, p. 1; “Nobody Loses by Ponzi’s Transactions, He Says,” Boston Daily Globe, August 11, 1920, p. 8; Herbert L. Baldwin, “Canadian ‘Ponsi’ Served Jail Term,” Boston Post, August 11, 1920, p. 1.
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“He has a good job”: “Ponzi Tells Kiwanis Club How He Got His Millions,” Boston Evening Globe, August 10, 1920, p. 1.
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write a sentence on a piece of paper: “Nobody Loses by Ponzi’s Transactions, He Says,” Boston Daily Globe, August 11, 1920, p. 8.
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Hundreds of letters arrived: “Ponzi Tells Kiwanis Club How He Got His Millions,” Boston Evening Globe, August 10, 1920, p. 1.
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Ponzi note holders turned up: Herbert L. Baldwin, “Canadian ‘Ponsi’ Served Jail Term,” Boston Post, August 11, 1920, p. 1.
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Herb Baldwin’s copyrighted story: Ibid.
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An hour after midnight: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1; Curt Norris, “Ponzi,” Yankee, November 1975, p. 115.
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“I’m not the man”: “Crisis Looms for Ponzi,” Boston Herald, August 13, 1920, p. 1.
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“We think this is the truth”: Curt Norris, “Ponzi,” Yankee, November 1975, p. 115.
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He met reporters again: “Crisis Looms for Ponzi,” Boston Herald, August 12, 1920, p. 1.
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They found Ponzi seated: “Arrests Near in Ponzi Case; Audit Almost Completed,” Boston Daily Globe, August 12, 1920, p. 1; “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1; “Ponzi Confesses Record in Prisons; Pleads for a Chance,” New York Times, August 12, 1920, p. 1; “Bank Commissioner Takes Possession of Hanover Trust,” Boston Evening Globe, August 11, 1920, p. 1; “Crisis Looms for Ponzi,” Boston Herald, August 12, 1920, p. 1; “Confessed to Forgery to Protect His Friend,” Boston American, August 11, 1920, p. 1; “Sleuths to View Ponzi,” Boston Traveler, August 11, 1920, p. 1.
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“The statement that I am about to make”: A stenographer was present when Ponzi made his statement, which was then shared with all the newspapers. Several printed it verbatim or nearly so, including: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1, and “Took Blame to Shield Employer, Says Ponzi,” Boston Daily Globe, August 12, 1920, p. 1.
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He paused and turned to McIsaac: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1.
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he’d acted to save Zarossi: “Crisis Loom for Ponzi,” Boston Herald, August 12, 1920, p. 1.
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When he had finished his statement: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p.1.
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prison record would lead to his deportation: “Ponzi Confesses Record in Prisons; Pleads for a Chance,” New York Times, August 12, 1920, p. 1.
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His eyes filled with tears: Ibid.
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“I want to keep all this news”: “Arrests Near in Ponzi Case; Audit Almost Completed,” Boston Daily Globe, August 12, 1920, p. 1.
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“My nerves can’t last forever”: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1.
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at one forty-five in the afternoon: “Arrests Near in Ponzi Case; Audit Almost Completed,” Boston Daily Globe, August 12, 1920, p. 1; “Arrest in Ponzi Case May Be Made Today,” Boston Post,” August 12, 1920, p. 1; “Ponzi Confesses Record in Prisons; Pleads for a Chance,” New York Times, August 12, 1920, p. 1; “Bank Commissioner Takes Possession of Hanover Trust,” Boston Evening Globe, August 11, 1920, p. 1; “Crisis Looms for Ponzi,” Boston Herald, August 12, 1920, p. 1; “Confessed to Forgery to Protect His Friend,” Boston American, August 11, 1920, p. 1; “Sleuths to View Ponzi,” Boston Traveler, August 11, 1920, p. 1.
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Chmielinski treated Hanover Trust: Annual Report of the Massachusetts Commissioner of Banks, 1921, pp. ix–xv.
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Hundreds of people raced: “Crowd Gathered at Bank in Record Time,” Boston Evening Globe, August 11, 1920, p. 1; “Arrests Near in Ponzi Case; Audit Almost Completed,” Boston Daily Globe, August 12, 1920, p. 1.
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“I learn with regret”: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1.
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no more than $80
0,000 in liabilities: “Confessed to Forgery to Protect His Friend,” Boston American, August 11, 1920, p. 1.
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Ponzi left Barristers’ Hall at about five o’clock: “Accuses Allen of Closing Bank to Tie Up $1,500,000,” Boston Traveler, August 12, 1920, p. 7.
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the sound of a woman weeping: “Ponzi Draws Pistol,” Boston Herald, August 12, 1920, p. 3.
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A few minutes before midnight: “Accuses Allen of Closing Bank to Tie Up $1,500,000,” Boston Traveler, August 12, 1920, p. 7.
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he still had fervent believers: “Ponzi Confesses Record in Prisons; Pleads for a Chance,” New York Times, August 12, 1920, p. 1.
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marveling at “the grip”: “Things Look Black for Charles Ponzi,” Boston Traveler, August 12, 1920, editorial page.
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“Get away from here!”: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1.
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he learned the truth: “Ponzi Arrested; Affairs ‘Hopeless’; Bank Involved,” Boston Herald, August 13, 1920, p. 1.
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Thomas W. Lawson: “Supposed Ponzi Tried to Get Lawson’s Aid,” Boston Evening Globe, August 12, 1920, p. 1.
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front page of that morning’s Post: “Arrest in Ponzi Case May Be Made Today,” Boston Post, August 12, 1920, p. 1.
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made Ponzi cringe: “Ponzi Under Arrest,” Boston Evening Globe, August 12, 1920, p. 1.
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“I am not going to flee”: “Ponzi Arrested,” Boston American, August 12, 1920, p. 1.
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pulled down the window shades: “Ponzi Under Arrest,” Boston Evening Globe, August 12, 1920, p. 1. Additional narrative details about this day come from Harold Wheeler, “Ponzi Arrested: Admits Now He Cannot Pay—$3,000,000 Short,” Boston Post, August 13, 1920, p. 1; “Ponzi Under Arrest,” Boston Evening Globe, August 12, 1920, p. 1; “Ponzi Freed on $35,000 Bail on Federal and State Charges,” Boston Daily Globe, August 13, 1920, p. 1; “Ponzi Arrested; Liabilities Put at $7,000,000,” New York Times, August 13, 1920, p. 1; “Ponzi Arrested,” Boston American, August 12, 1920, p. 1; “Ponzi Arrested; Affairs ‘Hopeless’; Bank Involved,” Boston Herald, August 13, 1920, p. 1.
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“But you have agreed”: Ponzi, p. 172.
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“No man is ever licked”: Ibid.
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as if for a wedding: Kenny, p. 200.
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“Mr. Ponzi wishes to surrender.”: “Ponzi Arrested,” Boston American, August 12, 1920, p. 1.
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“hopelessly insolvent”: “Ponzi Arrested; Liabilities Put at $7,000,000,” New York Times, August 13, 1920, p. 1.
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“Wife and I were going to buy”: “Ponzi Lodged in Cambridge Jail,” Boston Post, August 14, 1920, p. 1.
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“You bet he’s all right”: “Little Italy Still Believes in Ponzi,” Boston Daily Globe, August 13, 1920, p. 9.
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“Give you 50 percent”: Ibid.
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“Don’t you think”: “Ponzi Arrested; Affairs ‘Hopeless’; Bank Involved,” Boston Herald, August 13, 1920, p. 1.
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he promenaded through Post Office Square: Details of this scene come from a remarkable photograph originally printed on the front page of the Boston Herald and now held in the print collection of the Boston Public Library.
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police inspectors flashed their badges: “Ponzi Arrested; Affairs ‘Hopeless’; Bank Involved,” Boston Herald, August 13, 1920, p. 1.
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“I am going to stay home”: “Ponzi Pursued,” Boston Post, August 13, p. 9.
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“I love him more than ever”: “Mrs. Ponzi Loyal,” Boston Post, August 13, 1920, p. 13; “Ponzis Happy at Day’s End,” Boston Herald, August 13, 1920, p. 14; “Mrs. Ponzi Still Has Faith in Husband,” Boston American, August 13, 1920, p. 2.
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Ritchie began work: “Viewing the Ruins,” Boston Post, August 14, 1920, p. 4.
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half-biblical, half-puritanical editorial: “By the Sweat of Thy Brow,” Boston Sunday Post, editorial page, August 15, 1920, p. 39.
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the lead news story: Harold Wheeler, “Ponzi Arrested: Admits Now He Cannot Pay—$3,000,000 Short,” Boston Post, August 13, 1920, p. 1.
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bail bondsman Morris Rudnick: “Ponzi Lodged in Cambridge Jail,” Boston Post, August 14, 1920, p. 1.
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At about four o’clock that afternoon: Ibid.
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He looked up at a calendar: Ibid. Additional details of Ponzi’s surrender and jailing come from “Ponzi Spends Night in Jail; Surrendered by Bondsman,” Boston Herald, August 14, 1920, p. 1, and “Ponzi Wearing His Smile Even in East Cambridge Jail,” Boston Evening Globe, August 14, 1920, p. 1.
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For two hours they talked: “Testimony of State Officer,” Boston Globe, November 28, 1922, p. 1. Similar accounts of the meeting between the lawyers and the Ponzis in the East Cambridge Jail come from coverage of Ponzi’s 1922 state trial, including: “Thinks Ponzi Honest Man,” Boston Post, November 28, 1922, p. 1; “Coakley on Stand,” Boston Globe, November 28, 1922; and “Ponzi Evidence Ends,” Boston Transcript, November 28, 1922.
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“I think Mr. Coakley is right”: “Thinks Ponzi Honest Man,” Boston Post, November 28, 1922, p. 1.
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“What difference does it make”: “Testimony of State Officer,” Boston Globe, November 28, 1922, p. 1.
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“I might as well be dead”: Ibid.
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When they filed: “State Still After Ponzi,” Boston Post, December 1, 1920, p. 1; “Ponzi Sentenced to 5 Years in Jail,” New York Times, December 1, 1920, p. 9; “Ponzi Gets Five Years,” Boston Globe, December 1, 1920, p. 1; “To Serve Term in Plymouth,” Boston Evening Globe, November 30, 1920, p. 1.
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Coakley dug deep into his rhetorical tool kit: The account of Coakley’s argument and the court appearance is taken from several sources, largely because of small differences between the accounts in different newspapers. Among the best are: “State Still After Ponzi,” Boston Post, December 1, 1920, p. 1; “Ponzi Sentenced to 5 Years in Jail,” New York Times, December 1, 1920, p. 9; and “Ponzi Gets Five Years,” Boston Globe, December 1, 1920, p. 1.
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“Sic transit gloria mundi”: “Ponzi Sentenced to 5 Years in Jail,” New York Times, December 1, 1920, p. 9.
Epilogue
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new home: “Ponzi in Cell 126 Looking Out to Sea,” Boston Globe, December 12, 1920, p. 1.
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jailhouse routine: “No Chauffeur’s Job for Ponzi,” Boston Sunday Globe, December 5, 1920, p. 1.
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a remarkably balanced epitaph: “His Victims Much Like Himself,” New York Times, editorial, December 2, 1920, p. 10.
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two unexpected write-in candidates: “End Election Canvass in Manhattan-Bronx,” New York Times, December 29, 1920, p. 14.
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authorities confiscated the Locomobile: “Mrs. Ponzi, Shorn of Money, Finds Joy in Simple Household Tasks,” Boston Globe, October 17, 1920.
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“The house was never as clean”: Ibid.
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John Collins: “Crowd Too Big to Be Allowed in House,” Boston Globe, October 26, 1921.
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his top agents: “Ponzi Agents Surrendering,” Boston Herald, September 15, 1920.
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All but Cassullo: “Two Witnesses Sought in Ponzi Case Disappear,” Boston Herald, September 12, 1920, p. 1.
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renew their search for Antonio Salviati: “Grill Ponzi on Assets,” Boston Traveler, August 21, 1920, p. 1; “Ex-Partner of Ponzi Tak
en,” Boston Daily Globe, August 20, 1920, p. 1.
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forced to disgorge the money: “Settlement Made by Joseph Daniels,” Boston Globe, October 28, 1920.
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copycats from the Old Colony Foreign Exchange Company: “Ponzi Indicted by Grand Jury; Charles M. Brightwell, Head of Rival Get-Rich-Quick Scheme, Also Under Indictment,” Boston Post, September 12, 1920.
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banks where Ponzi did business: “Allen Declares the Banking Situation in Boston Is Now Clearer,” Boston Globe, September 28, 1920, p. 1; “Tremont Trust Company Closed,” Boston Globe, February 18, 1921, p. 1.
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“fairness, skill and courage”: “Extols Bank Commissioner,” Boston Herald, September 19, 1920.
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his choice of Allen: “Joseph C. Allen Resigns as Bank Commissioner,” Boston Transcript, May 11, 1925.
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he won both suits: “McMasters Loses Both the Ponzi Suits,” Boston Globe, February 11, 1921.
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a career writing fiction: “William H. McMasters Rites Set; Journalist, 94,” Boston Globe, March 1, 1968, obituary.