The J. Lehrenkrauss Corporation was a Brooklyn, New York-based company which became insolvent in 1934. [1]
On January 25, 1935, Julius Lehrenkrauss, the 67-year-old head of the firm, was convicted of mail fraud in the sale of $1,600,000 of preferred stock. Its failure happened during the Great Depression when credit lending agencies were strained due to deflation and a weak economy in the United States in the early 1930s. Government prosecutors alleged that the business was bankrupt in 1932 and 1933, at the time the stock was sold. [2] Lehrenkrauss received a suspended sentence because of his advanced age. Two partners and a former salesman for the firm were given active prison terms. [3]
The hearing at the Brooklyn federal courthouse on January 15, 1934, was attended by over 3,000 people—more than ten times its capacity. The gathering was featured on the front page of the next day's Brooklyn Eagle , which said it was the largest courthouse crowd the borough had ever seen. Because J. Lehrenkrauss & Sons, the organization's mortgage-servicing subsidiary (located at 359 Fulton Street) [4] was still actively making money, it would be sold in order to manage claims. Real estate developer Fred Trump attended the hearing, [5] and acquired the mortgage-servicing subsidiary with a partner. This gave Trump access to the titles of many properties nearing foreclosure, which he bought at low cost and sold for a profit. [6] [7]
Frederick Christ Trump Sr. was an American real-estate developer and businessman. He was the father of Donald Trump, the 45th president of the United States.
The Trump Organization is a group of about 500 business entities of which Donald Trump is the sole or principal owner. Around 250 of these entities use the Trump name. The organization was founded in 1927 by Donald Trump's paternal grandmother, Elizabeth Christ Trump, and his father, Fred Trump, as E. Trump & Son. Donald Trump joined the organization in 1968, began leading it in 1971, renamed it around 1973, and handed off its leadership to his children in 2017 when he won the 2016 United States presidential election. In 2022, the organization was convicted of tax fraud felonies. In a civil lawsuit in 2023, a New York judge ruled that the organization had fraudulently overvalued its properties when applying for bank loans.
Patrick J. Carley was an American businessman and politician who served four terms as a U.S. Representative from New York from 1927 to 1935.
The Metropolitan Detention Center, Brooklyn is a United States federal administrative detention facility in the Sunset Park neighborhood of Brooklyn, New York City. It holds male and female prisoners of all security levels. It is operated by the Federal Bureau of Prisons, a division of the United States Department of Justice.
Sholam Weiss is an American convicted fraudster.
VincenzoAloi is an American mobster involved in stock fraud who briefly served as the acting boss of the Colombo crime family. Vincenzo was also a figure in the Third Colombo War alongside his brother Benny.
General Development Corporation, also known as GDC, was a land development company in Florida. General Development Corporation would be created in 1958 after a merger between Florida Canada Corporation and the Mackle Bros.
George C. Parker was an American con man best known for his repeated successes "selling" the Brooklyn Bridge. He made his living conducting illegal sales of property he did not own, often New York's public landmarks, to unwary immigrants. The Brooklyn Bridge was the subject of several of his transactions, predicated on the notion of the buyer controlling access to the bridge. Police removed several of his victims from the bridge as they tried to erect toll booths.
Michael Joseph Hogan was an American businessman and politician from Brooklyn, New York. A Republican, he was most notable for his service on New York City's board of aldermen and as a U.S. Representative from New York.
Cortes Wesley Randell was an American businessman. Randell worked on the Ballistic Missile Early Warning System. He also founded the National Student Marketing Corporation, and was president of Federal News Service.
William Sylvester Silkworth, referred to in the U.S. press as "W. S. Silkworth", was an American financier known being president of the Consolidated Stock Exchange of New York and being forced to resign because of scandal. starting in 1919. He was also a sport shooter who competed in the 1924 Summer Olympics. In 1924, he won the gold medal as member of the American team in the team clay pigeons competition. Silkworth aggressively and successfully pursued new business for the exchange, and his career as president reached its peak in February 1922, when all trading records at the exchange were broken, ensuring that "Silkworth, not [NYSE president] McCormick, was the talk of Wall Street." Silkworth resigned on June 21, 1923, after an investigation into Consolidated insider corruption discovered irregularities in his personal finances. He later did time for mail fraud. By 1926, Silkworth was best known internationally as a member of the Olympic trap shooting team.
Charles Wyman Morse was an American businessman and speculator who committed frauds and engaged in corrupt business practices. At one time he controlled 13 banks. Known as the "Ice King" early in his career out of New York City, through Tammany Hall corruption he established a monopoly in New York's ice business, before buying several shipping companies and moving into high finance. His attempt to manipulate the price of copper-shares set off a wave of selling that developed into the Panic of 1907. Jailed for violating federal banking laws, he faked serious illness and was released. Later he was indicted for war profiteering and fraud.
Drapery Trust formed in 1925 by Clarence Hatry, a notorious British financier. He had made his fortune in speculating on oil stocks, and had convinced investors to promote department stores and bring them under the management of a retail conglomerate. The business was acquired by Debenhams in 1927 and was run as a subsidiary until the 1970s.
Bayrock Group is a private real estate investment and development firm specializing in luxury residential, commercial and mixed use projects. Through its affiliated entities, Bayrock has made investments in transactions comprising real estate assets valued in excess of $2.5 billion. Bayrock's flexible investment strategy allows it to pursue investments in a variety of sectors and markets.
Elizabeth Christ Trump was a German-American businesswoman. Trump was the paternal grandmother of Donald Trump, the 45th president of the United States. She married Frederick Trump in 1902. They had three children, Fred, John, and Elizabeth. Her husband died in 1918, requiring the 37-year-old widow to manage their properties. She co-founded the real estate development company E. Trump & Son with her son Fred, the father of Donald Trump.
Peter F. McCoy was an American attorney based in New York City. Practicing law in New York at 342 Madison Avenue, McCoy started his legal career with Eaton, Lewis & Rowe before becoming an assistant United States Attorney in 1921. As an assistant United States Attorney General, McCoy was successful at prosecuting high-profile brokers for mail fraud and bucket shops in the early 1920s, with the New York Times proclaiming him a "foe of stock frauds." He also prosecuted people for violating the Food and Drug Acts, selling narcotics, and counterfeiting.
Ronald Tucker Finney was a convicted forger at the center of one of the biggest political scandals in Kansas history, known as the Kansas Bond Scandal, involving over $1 million in forged municipal bonds.
Raynor, Nicholas & Truesdell was a New York brokerage based on Broadway in the 1920s. It was a member of the Consolidated Stock Exchange, before failing on April 29, 1922. The failure resulted in a highly publicized lawsuit over whether the firm committed mail fraud and bucketing before failing.