GIGANTIC SWINDLE.

Taranaki Daily News, 18 June 1921, Page 5

GIGANTIC SWINDLE.

BANK FRAUDS IN GERMANY. MGNEY USED ON RACING. By Telegraph.—Press Assn.—Copyright. London, June 15. The Berlin correspondent of the Daily Chronicle states that a gigantic swindle, recalling the South Sea bubble, has been revealed. For many months institutions called Sports Banks have been springing up in all parts of Germany, especially in Saxony. By means of a big advertising campaign the public was persuaded to invest, being promised a dividend of 100 per cent less 5 per cent charges after the money had been invested for eight weeks. Dividends were paid for a considerable time and there was an enormous rush to invest, people standing for hours in long queues in order to do so. One Berlin bank advertised that it had paid out 29 million marks since the New Year. Now two Dresden Sports Banks have suspended payment and a run immediately commenced on all the Sport Banks when it was known that the directors of the Dresden Banks had fled from the country. Though two have since been arrested a further big crash is expected. The directors of the Sport Banks admit that they used the money to carry out vast betting transactions on the racecourse. It is believed large sums were used to bribe jockeys. An estimate puts the public investment at 1000 million marks, normally 50 million sterling.

ANOTHER FINANCE SCANDAL. SMUGGLING WEALTH AWAY. Berlin, June 16. Another financial scandal, which has been reported, involves Germany’s greatest racehorse owner, Leo Levine and his brother Max, who have been arrested for bribing Government officials and prominent members of Parliament in order to smuggle great sums of money out of Germany. The firm has thus made 700 million marks since the armistice. Levine’s relations in Parliamentary circles were utilised to secure a monopoly in leather, and textiles from army stores, which they secured at knock-out rates. The brothers have been released on bail of five million marks. —Aus.-N.Z. Cable Assn,