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Story
September 9, 1931
The Daily Alaska Empire
Juneau, Juneau County, Alaska
What is this article about?
In a federal fraud trial in Minneapolis, government prosecutors presented books of the W.B. Foshay Company to show it misrepresented stock value amid financial distress in 1928-1929. Witness E.L. Bouchard testified unpaid obligations reached $3 million by September 1929, just before receivership.
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FOSHAY FIRMS
WERE IN TIGHT
PLACE 2 YEARS
Books Introduced in Fraud
Trial -- Kept Jump
Ahead of Creditors
4.
MINNEAPOLIS, Sept. 9.- The books of the W. B. Foshay Company were presented yesterday in the Federal Court by the Government in an effort to prove charges the company represented its stock as sound when it was in financial distress.
The evidence was produced at the trial of the seven former officials of the company charged with using the mails to defraud.
The special prosecutor sought to show the enterprises had obligations they were unable to meet.
The complete history of the bills and other obligations of the company, with the cash on hand, from week to week, indicated, the prosecution said, that the officials raced with almost constant necessity in 1928 and 1929 to raise millions of dollars.
E. L. Bouchard, of Minneapolis, former Assistant Treasurer of the companies, testified that unpaid obligations of the enterprises totalled $3,000,000 on September 14, 1929, two months before the receivership.
Bouchard, a Government witness, testified the company was "staving off" the creditors most of the time for the last two years previous to the receivership.
WERE IN TIGHT
PLACE 2 YEARS
Books Introduced in Fraud
Trial -- Kept Jump
Ahead of Creditors
4.
MINNEAPOLIS, Sept. 9.- The books of the W. B. Foshay Company were presented yesterday in the Federal Court by the Government in an effort to prove charges the company represented its stock as sound when it was in financial distress.
The evidence was produced at the trial of the seven former officials of the company charged with using the mails to defraud.
The special prosecutor sought to show the enterprises had obligations they were unable to meet.
The complete history of the bills and other obligations of the company, with the cash on hand, from week to week, indicated, the prosecution said, that the officials raced with almost constant necessity in 1928 and 1929 to raise millions of dollars.
E. L. Bouchard, of Minneapolis, former Assistant Treasurer of the companies, testified that unpaid obligations of the enterprises totalled $3,000,000 on September 14, 1929, two months before the receivership.
Bouchard, a Government witness, testified the company was "staving off" the creditors most of the time for the last two years previous to the receivership.
What sub-type of article is it?
Crime Story
Deception Fraud
What themes does it cover?
Deception
Crime Punishment
What keywords are associated?
Foshay Company
Fraud Trial
Financial Distress
Unpaid Obligations
Receivership
Creditors
What entities or persons were involved?
E. L. Bouchard
Seven Former Officials
Where did it happen?
Minneapolis, Federal Court
Story Details
Key Persons
E. L. Bouchard
Seven Former Officials
Location
Minneapolis, Federal Court
Event Date
1928 And 1929
Story Details
Prosecutors used company books to demonstrate financial distress and inability to meet obligations, with testimony revealing $3 million in unpaid debts by September 14, 1929, as officials staved off creditors before receivership.