Norfolk, June 5—What is alleged by post office inspectors to be million dollar merchandise swindle in North Carolina was revealed here today with the announcement that 12 persons already had been arrested on charges of using the mails to defraud and that many more names had been presented to a federal grand jury with the expectation that a large additional number would be made.
Ramifications of the plot spread out through the entire eastern section, including the principal cities, according to inspectors. Using as the basis of their alleged scheme the establishment of stores in North Carolina under names identical with those of reputable establishments, the swindlers are alleged to obtain merchandise from hundreds of wholesalers and jobber, totaling $1 million in value. The merchandise includes almost everything from clothing to auto tires, and in one case a $2,300 diamond.
The plot, according to the government agents, became known after firms in the north had presented bills for large amounts to old established customers in the south and learnt he goods had not been ordered by them but had been shipped to stores with similar names. The post office department at once was appealed to for action to expose the swindle and the investigation that resulted in arrests has been going on for months. All of those arrested, it was said, are native Ryrians [Syrians?], only two or three of whom have taken out their first naturalization papers. Postal agents said they have had difficulty in fixing identity of many of the purchasers as autos were used to transport goods from store to store and the proprietors were constantly changing.
The investigators said they expected to broaden the scope of their inquiry, and indications ae it would extend to Wisconsin.
From page 1 of The Goldsboro News, Sunday morning, June 6, 1926
newspapers.digitalnc.org/lccn/sn93064755/1926-06-06/ed-1/seq-1/
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