February 9, 1927
It’s a pretty simple scheme.
You own some stock. I approach and inform you that your stock is about to hit bottom. I suggest a trade—your stock for some of mine. The stock I’m offering you is about to go up, up, up, ya see. (Honestly, that’s the long and short of my plan; we swap my stock worth a penny for your stock worth a dollar—your greed does all the heavy lifting.)
When Mrs. Frances L. Derby of 502 North Ardmore was approached by some very nice men, she parted with 102 shares of John C. Frey & Assoc. worth $1,020, and 124 shares of California Guarantee Assoc. worth $498, and in exchange was given 4,700 shares of Silas Frank Mining. The Very Nice Men “talked down” her crummy old stock and represented the mining company stock as being worth $1 a share—when in fact it was worth 1 cent a share, or $47. Mrs. Derby was no ordinary rube, though, got wise, and alerted the authorities.
The aforementioned pleasant fellows being Leon F. Wessling, 36, and J. L. Johannes, 38. Detective Lieutenants Davis and Edwards of bunko detail say these two have, from their brokerage firm—a prestigious suite of offices in the Merritt Building—similarly swindled Los Angeles residents out of $75,000 in the past week.
According to Wessling and Johannes’ records, the duo finagled $18,000 out of one poor old widow alone.
Sad, true, but at least in a few years there’ll be a lot less stock to swindle.