Salt Lake Telegram | 1934-05-23 | Page 11 | Three Testify in Fraud Trial of Brokers

THREE TESTIFY IN FRAUD TRIAL OF JOKERS BROKERS Witness Says Firm Owed Him Profits When He Was j Sold Sod Out Three witnesses allegedly sold out by Lester Rankin Bankin Co took the I stand in federal court Wednesday a athe as the government continued its trial on charges that Rankin and seven associates asso asso- elates used the mails to defraud investors investors investors in in- of western states through bucket shop operations ons 1 L. L D. D Staats of Portland Ore testified testified fied fled that the company owed him profits on stocks he had bought at atthe atthe atthe the time he was informed by company company company com com- pany officials that he was sold out He was no not cross ro Dan B B. B Shields United States district dis dL attorney said Mr St Stoats Stoats' ats' ats profit balance if 11 he had received it it would have been about if it Rankin had b bought and sold stocks as the investor investor hives hives- tor ordered Claim No Sales Salu Made The government charges that Rankin Rankin Rankin Ran Ran- kin and his associates operated a bucket shop and made no bonafide sales or purchases of stocks on orders of clients A letter from Rankin to Mr Stoats Staats questioning the latter's right to cancel cancel caneel can can- cel eel an order for stock Is t th the eighth count In the indictment against the defendants T. T V. V Pierson of Ogden testified he invested before he was closed out by the firm He lIe was on the stand most of the morning Mr 1 Pierson described overtures of ot the company made by telephone and and- by letters inducing him he said to buy several different stocks Predicted Stock Rise He said that the telephone caller always identified himself as Lester Rankin and that he professed to have inside information on stock pools which would be sure to cause stocks to torise rise Dr A. A N N. Currie of Malta Mont another witness Wednesday resumed testimony he began Tuesday evening He said that he signed a convenient budget purchase agreement for stocks with the company and bought Brillo Manufacturing company stock but was able only a few times to find finda a published list of the stock prices The trial Wednesday was interrupted Interrupted interrupted inter inter- frequently by a stream of objections objections ob oh- from front defense counsel el against testimony of various witnesses