(Roughly) Daily

Posts Tagged ‘scam

“When I consider Life, ’tis all a cheat”*…

 

ladiesfraud2_web

 

Sarah Howe’s early life is mostly a mystery. There are no surviving photographs or sketches of her, so it’s impossible to know what she looked like. She may, at one point, have been married, but by 1877 she was single and working as a fortune-teller in Boston. It was a time of boom and invention in the United States. The country was rebuilding after the Civil War, industrial development was starting to take off, and immigration and urbanization were both increasing steadily. Money was flowing freely (to white people anyway), and men and women alike were putting that money into the nation’s burgeoning banks. In 1876, Alexander Graham Bell invented the telephone, and in 1879 Thomas Edison created the lightbulb. In between those innovations, Sarah Howe opened the Ladies’ Deposit Company, a bank run by women, for women.

The company’s mission was simple: help white women gain access to the booming world of banking. The bank only accepted deposits from so-called “unprotected females,” women who did not have a husband or guardian handling their money. These women were largely overlooked by banks who saw them — and their smaller pots of money — as a waste of time. In return for their investment, Howe promised incredible results: an 8 percent interest rate…

All told, the Ladies Deposit would gather at least $250,000 from 800 women — although historians think far more women were involved. Some estimate that Howe collected more like $500,000, the equivalent of about $13 million today…

Then, in 1880, it all came crashing down. On September 25, 1880, the Boston Daily Advertiser began a series of stories that exposed Howe’s bank as a fraud. Her 8 percent returns were too good to be true. Howe was operating what we now know as a Ponzi scheme — 40 years before Ponzi would try his hand at it…

Rose Eveleth on the fascinating story of a 19th-century scammer, and what she can teach us about women, lying, and economic boom-and-bust cycles: “The No. 1 Ladies’ Defrauding Agency.”

* John Dryden, Aureng-Zebe

###

As we remind ourselves that what’s too good to be true usually isn’t, we might recall that it was on this date in 1946 that FBI agents arrested Chicago gangster George “Bugs” Moran in Kentucky.

During the Prohibition era, Moran was one of the biggest organized crime figures in America, and has been credited with popularizing the drive-by shooting. He was a rival to Al Capone, who gunned down seven members of Moran’s gang in the 1929 Saint Valentine’s Day massacre.

Unlike Capone, Moran wasn’t a clever crime boss. By 1946 he had been reduced to common crimes like bank heists. He was basically penniless. The FBI found him renting an upstairs apartment from a law-abiding couple in Henderson, Ky.  [source]

220px-Bugs_Moran source

 

Written by LW

July 6, 2019 at 1:01 am

“When I consider Life, ’tis all a cheat; Yet, fooled with hope, men favour the deceit”*…

 

A picture, supposedly of Poyais, fabricated by Gregor MacGregor

In October 1822, Gregor MacGregor, a native of Glengyle, Scotland, made a striking announcement. He was, he said, not only a local banker’s son, but the Cazique, or prince, of the land of Poyais along Honduras’s Black River.

A little larger than Wales, the country was so fertile it could yield three maize harvests a year. The water, so pure and refreshing it could quench any thirst – and as if that weren’t enough, chunks of gold lined the riverbeds. The trees overflowed with fruit, and the forest teemed with game. Painting an exotic, Edenic vision of a new life abroad, his proposal offered quite the contrast with the rainy darkness and rocky soils of Scotland.

What Poyais lacked, he said, was willing investors and settlers to develop and leverage its resources to the fullest. At the time, investments in Central and South America were gaining in popularity, and Poyais appeared to be a particularly appealing proposition.

Scotland didn’t have any colonies of her own, after all. Could this not be a corner of the new world for her own use?…

MacGregor designed currency that was supposedly used in his fictional land

Gregor MacGregor’s massive fraud and how he brought it off: “The con-man who pulled off history’s most audacious scam” (excerpted from Maria Konnikova’s The Confidence Game).

* John Dryden

###

As we demur from accepting wooden nickels, we might recall that it was on this date in 1922 that Los Angles police were summoned to the home of silent film director William Desmond Taylor by a call about a “natural death” that had occurred the night before.  When they arrived they found actors, actresses, and studio executives rummaging through the director’s belongings… and Taylor lying dead on the living room floor with a bullet in his back.

Mary Miles Minter, a teenager, had become a star in Taylor’s films and had fallen in love with him– much to the dismay of her mother,  Charlotte Shelby.  After Taylor’s murder, a love note to Taylor from Minter was found in his home, along with her nightgown in the bedroom.  Then other damning facts came to light: Minter had once tried to shoot herself with the same type of gun used in Taylor’s murder; Shelby had previously threatened the life of another director who had made a pass at her daughter; and most portentously, Shelby’s alibi witness received suspiciously large sums of money after the murder.  Still, no one was ever prosecuted for Taylor’s death– the case remains officially unsolved.

Mary Miles Minter and William Desmond Taylor

source

Written by LW

February 2, 2016 at 1:01 am

%d bloggers like this: