UNITED STATES JURY CONVICTS B. E. BUCKMAN, LOUIS GEORGE ON 16 MAIL FRAUD COUNTS
Jacobs, Herbert
United States Jury Convicts B. E. Buckman, Louis George on 16 Mail Fraud Counts Defendants Will Hear Sentences Later; Jury Deliberates Five Hours Mrs. George in Tears; Mrs. Bueknian Hides Face in...
...sentence* were imposed, which is almost never done, the maximum would be 72 years and $40,000...
...Breaks into Tears Mrs...
...Hill said, "they could have withdrawn their support of the bonds, bought -;r...
...They poured $150,000 to $200,000 into the Buckman Co., not to conceal insolvency, but to help these companies until they could be reorganized quietly and securely...
...Robert Call-sen, Madison, housewife...
...George also faces two New York indictments charging him with manipulation of Automatic Products Co...
...San Orr, wife of Atty...
...Many of those who sweltered in the oppressive room were wives or friends of the defendants, and several were attorneys come to hear the arguments...
...Judge Briggle, who wore a brown suit instead of his customary black judicial gown, received the verdicts from Bailiff Joseph Shaughnessy, and said to Herbert C. Hale, clerk of the court: "You may publish the verdicts, Mr...
...It may have been legally wrong, but they had the advice of their counsel, and they were trying to work out these plans...
...Buckman and George still face federal Indictments in Chicago for alleged perjury, and a state charge in Manitowoc county for alleged security lav violations...
...Answering Hill's argument that the depression had had a lot to do with the Buckman failure, Boyle said "I challenge the sincerity of anyone making arguments that economic conditions had anything to do with it...
...The younger brother was finally located after homes of several friends were called, and appeared at the court house shortly before 11:30...
...He sank almost to his knees to indicate what he said was the continuing decline of Buckman assets...
...The jury had been given the case at 4:30 p. m...
...Carl Hill concluded his argument on behalf of Buckman and Louis C. George, and Dist...
...Unless the jury first found an latent to defraud, there was no wrong in profits on purchases of properly, organization or control of subsidiar...
...Edgar C. Holt, former secretary of the Buckman Co., who pleaded no defense at the outset of the trial and later testified for the government, will be sentenced at the same time, Judge Briggle said...
...The jury deliberated five hours...
...The other salesmen smiled in turn as their own verdicts were read...
...The trial, which began May 13 had been expected to last from six weeks to two month, was concluded in three and one-half weeks...
...RICHARD E. GEORGE, former Madison branch manager and brother of Louis C. George...
...They had an hour for supper, and announced at 10:20 p. m. that they had reached a decision...
...Perry A. Sletteland knew beforehand about, the 7'i cent dividend declared by CS in October, 1937, but not paid...
...Referring to the stories of the investor customers, Hill said "When you're making them money, you'ie fine, but when they lose money in a transaction in which you're involved, then you're a crook...
...Buckman hid her face in her hands, and remained thus throughout the rest of the proceedings...
...John J. Boyle concluded the arguments for the government...
...Buckman, her daughter Barbara, now Mrs...
...corporations, payment of Interest, reselling of borrowed bonds, or selling...
...It's a tough break," was ail George jwould say after the verdict...
...Alvin Loverud asked Louis C. George...
...when a count of defendants showed Richard George was missing...
...Louis C. George...
...It was evident as soon as the verdicts were announced that "Lou" George is still the idol of his salesmen...
...Before Judge Briggle began his instructions to the jury Wednesday afternoon...
...Hubbleton, genera] storekeeper...
...FIELDING T. SPAIN...
...Edgar Bacon, Grand Marsh, farmer...
...Holt was not present...
...Buckman and George returned to Waupun state prison this morning, pending announcement of the date of sentence...
...Asst...
...They didn't know until 24 hours beforehand that the public service commission was launching an investigation into business methods that the commission had approved for four years...
...He and Buckman, who had not changed his expression during the proceedings, walked back to the county Jail, accompanied by their Waupun guard, and left this morning for the state prison...
...Bay City, Tex., operator of several former Buckman affiliates in Texas...
...As Hale read the words, "We, the jury, find Barton E. Buckman guilty," Mrs...
...Many of the jurors had brought suitcases to the court in the morning in the expectation that they would be locked up all night...
...BUCKMAN and Louis C. George were found guilty of mail fraud, security law violations and conspiracy last week by a federal court Jury which freed five other former B. E. Buckman & Co...
...D. WIXF.BREN-HER, Madison, former salesman...
...As to the Question of the legal counsel employed, the jury is instructed that where wrongful intent is charged here, it is a complete defense if a person honestly and fully disclosed the facts to the lawyers and acted on the advice, even though the advice was wrong...
...Had these men been doubtful of the solvency of Buckman and Co...
...Clerk...
...Then she was unable to refrain longer from tears...
...Husbands Show No Emotion in Court By HERBERT JACOBS BE...
...I must also call to the attention of the jury something of which I dislike to speak, because it involves a brother attorney, and that's the October dividend of Continental Service Co...
...But they stayed with the ship...
...Hill then said that Atty...
...Hale then read the verdicts, starting with Buckman and George...
...and was locked in the courtroom an hour later with the 1,300 exhibits in the case...
...The verdicts of the jury of nine men and three women were received in a half-filled courtroom at 11:30 p. m. Wednesday night...
...As soon as the jury was dismissed they crowded around him to put their arms over his shoulder and shake his hand...
...Shotola walked out of the courthouse with his arm still around George...
...CLARENCF...
...Dist...
...George and Holt face penalties of up to five years in jail and $1,000 fine for each of the 11 mail fraud violations charged, five years and $5,000 fine for each of three securities law violations, and two years and $10,000 for conspiracy...
...He knew, and then he sneaked in and put the statement in the 1937 minute book of CS as of Nov...
...Judge Briggle's charge to the jury consumed 1 hour and 20 minutes, and was made before a courtroom filled for the first time since the trial began...
...Milwaukee, former salesman...
...After explaining the charges of tin...
...Otis Thompson, Windsor, barber: E. C. Hotmar...
...Frank R. Shotola, Milwaukee, who had been dismissed Saturday as a defendant, broke down and cried as he attempted to console George...
...Atty...
...and tried to wash out his connection," Hill said...
...Each has six months more to serve on a state sentence of 1 to 3 years for violation of state securities laws...
...indictment, Judge Briggle pointed out that there had been no direct testimony for the government that a conspiracy existed, and that there was direct testimony from defendants that it did not...
...The two were president and vice president of the Buckman Co...
...George Richardson...
...from similar charges...
...Lynden Station filling station operator...
...List Defendants Freed The defendants freed by the jury were: CROFOOT...
...Members of the jury besides Foreman Guillkey were: Axel Johnson, Oregon, druggist...
...Turning to the question of the reliance of Buckman and George on their attorneys, which Boyle characterized as an attempt to shift res]X>n-sibility, Boyle said: "Stephens and Sletteland — and they're honorable men, enjoying the respect of this community—did not know of the bond borrowing unill November of 1937...
...and Standard Commercial Tobacco stocks...
...Bueknian Hides Face in Hands at Verdict...
...Judge Charles G. Briggle announced that he will sentence Buckman and George at a later date...
...George then started telephoning from the marshal's office, assisted by Mrs...
...There wa-s more than an hour's de-lny in assembling defendants and their attorneys, made longer by inability to locate Richard E. George, who was visiting friends...
...bankruptcy of the October dividend...
...Dist...
...The jury was about to be summoned to the jury box at 11 p. m...
...There was perfect silence in the courtroom as the jury filed in to their places, with Foreman Roy R. Guilkey, Beloit...
...WILBUR V. MALKSON, Ban-tor, Me., former Eau Claire branch manager...
...employes, including E. J. "Toad" Crofoot...
...George kept her face bravely lifted until after the jury was dismissed, and her husband stepped over to kiss her...
...A broad smile swept over the face of Crofoot when the jury verdict clearing him was announced...
...If consecutive instead of concurrent (overlapping...
...holding a sheaf of blue-backed verdicts...
...Paul Brewer, Madison, housewife: Mrs...
...Atty...
...Hill was referring to a note of Sletteland in the CS minute book that Sletteland did not know until th...
...Atty Boyle made a fervid appeal to the Jury, full of many gestures...
...Karl Ockershauser, accompanied by Ockershauser in an army dress uniform, and Mrs...
...the obligations cheap, and been handsomely in the black, even by the government's own figures...
...Orr, counsel for Richard George...
...Verona, housewife, and H. H. Grabrandt, Verona, general storekeeper...
...Lou, would you have any idea where your brother is...
...Undecided On Appeal Carl N. Hill, attorney for Buckman and George, said Wednesday night that he had reached no derision on the question of appealing the jury verdict...
...E. J. DeBower, De Forest, retired...
...The court continued Holt's bail of $2,500 until the date of sentence...
...Atty...
...Present in the courtroom were Mrs...
...Goerge Nickel...
...Cites Legal Respect "You must decide if the defendants acted in honesty and good faitn Instead of intent to defraud," he said "Honesty and good faith is a complete defense...
Vol. 10 • June 1940 • No. 24
