
In my effort to clear out some of my old Harvard Bookstore Warehouse Sale purchases, I followed up my reading of Dead Wake with another nonfiction book in sort-of the same time period. This one was Dean Jobb’s Empire of Deception: From Chicago to Nova Scotia - The Incredible Story of a Master Swindler Who Seduced a City and Captivated the Nation.
The master swindler in question was one Leo Koretz, an affable German Jewish immigrant who had come over from Bohemia with his family as a child. His parents had worked their way into the respectable-enough stratum of Chicago’s vibrant Jewish community and were able to send Leo to high school at a time when only about 1% of the city’s youth graduated high school. Young Leo then got a job in a law firm and took night classes until he was able to become a lawyer himself. While there were plenty of job opportunities for lawyers in litigious and corrupt early-20th-century Chicago, it wasn’t quite the path to lavish riches that Leo had envisioned, so he started with the shenanigans–first siphoning money from the dead clients whose wills he was executing; then selling fake mortgages on real properties; and eventually his master swindle–selling stock in an entirely fake natural resource extraction syndicate in the Bayano Valley, Panama.
This book is split into three “acts.” Act I is the bulk of Koretz’ life, from his childhood up through the years of increasingly daring and complicated fraud. The scale and coldheartedness of Koretz’ Bayano Syndicate swindle was pretty stunning–this was a dividends-from-capital swindle, meaning you need a constant stream of new investors in order to keep the old investors in the dark about the fact that they aren’t actually invested in anything, so the scam tends to have a short lifespan. Koretz kept it going for over a decade, faking exclusivity and selling shares to his closest friends and his own family members.
Eventually, of course, even he can’t keep it going anymore. When it gets too big, he sends a bunch of investors down to Panama to check out the nonexistent company–and uses their absence to cash out all his bank accounts, send some apologetic cash gifts to his nearest and dearest, and go on the lam. Act II is his life under an assumed name as a jolly millionaire and man of letters in New York (briefly, just long enough to establish an identity) and then Nova Scotia, where he buys an old hunting lodge and turns it into a swanky woodland resort-hotel. He spends about a year scandalizing the good backwoods Nova Scotians with his big-city ways and lavish parties, until he is eventually found out via some discreet questioning between his tailor and a bunch of bank officials, and then the law comes to bring him back to Chicago.
Act III, unsurprisingly, is his trial and imprisonment in Chicago, and all the other fallout/aftermath with his friends and family. There is an odd little twist at the end, which provides an interesting end to the story, although I’m not sure I agree with the author that it constitutes “cheating justice” (I might not be the world’s most committed prison abolitionist but there’s times when I realize my assumptions are not always quite the same as other people’s assumptions about these things).
This might not have been the most riveting piece of nonfiction I’ve read lately but that’s because I’ve read a lot of nonfiction about fairly sensational events these past few months–wars and spies and gangs and whatnot–so I feel like the bar is fairly high. This is pretty comparable to a lot of those though; it’s certainly not a dud if you’re in the mood for the sort of thing it’s about. It gives a pretty good look into the politics and corruption and general scamminess of Prohibition-era Chicago and its very colorful cast of characters. I also learned a tiny little bit about Panama during this era, although it’s no substitute for reading a book actually about Panama. Overall this was a solidly entertaining episode in historical true crime, and it apparently inspired an episode of Leverage, so I’m glad I finally got around to reading it.