INSULL FRAUDS

Wanganui Chronicle, Volume 76, Issue 301, 21 December 1933, Page 7

INSULL FRAUDS

AMAZING REVELATIONS. CHICAGO, Dec. 18. The amazing story of collusion in the original Insull receivership in April. 1932, was told in the Federal Court to-day. It was revealed that when the bankers refused longer to carry the notes, Insull, who is now a fugitive in Greece, personally arranged a receivership, designating a creditor to bring a suit. He insisted that a member of his family serve as one of the receivers. No independent representatives of the common stockholders were invited to the conferences at which the receivership was arranged, one of today’s witnesses declaring: “We knew the stockholders would properly be represented by Insull.” Rosa Rais, opera star, in a newspaper interview, declared that Insull persuaded her and her husband, Giacomo Rimini, baritone, to invest 500,000 dollars, their life’s savings, in his enterprises, all of which was subsequently lost. Originally they invested 100,000 dollars and then each year added 50,000. Insull continually told them of the enormous book profits, but refused to allow them to realise on their profits. One when they became reluctant to make further investments, Insull threatened to ostracise them from the Chicago civic opera, which he then controlled.