Mr. Allen got together a group of unfortunate investors in the “Old Colony” and helped them to all file for bankruptcy. That forced an immediate audit of the company. And that again confirmed McMasters’ documents; Ponzi was worse than broke. Ponzi was at least $8 million in the hole.
And then on the morning of Wednesday, August 11th, 1920, the Post delivered the coup de grace. They revealed that Charles Ponzi had served time in a Canadian Prison, convicted of forgery. The people of Boston, now ready to believe that Ponzi might be a liar and a crook after all, were handed proof that he had been a liar and a crook in the past. That very afternoon, Commissioner Allen seized Hanover Trust. The next day Ponzi surrendered to the cops, and was charged with mail fraud. He made bail, but the bondsman revoked it the very next day, on Friday the 13th. Even the bondsman now considered Ponzi a bad risk.
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