Biggest Embezzler

The coupon department of great Continental Illinois Bank & Trust Co. is at the east end of the second or main banking floor of the company's 23-story building running between Clark and La Salle Streets in Chicago. The central hall is entered by two wide stairways leading from the street floor, the walls flanked by mammoth columns topped by murals. The coupon department, U-shaped, gives access to the bank's customers on three sides. In the centre of the U is window No. 77, and behind this window customers could be sure to find Walter Wolf, manager of the department since 1927, trusted employe of the bank for 26 years. Last week Manager Wolf's lean, rather pensive face was missing from window grille No. 77. And some $2,000,000 in securities were missing from the bank.

Wolf's thefts began in 1919 shortly after he had opened an account with a broker. The year before he had withdrawn $5,000 from savings and asked a broker to buy him 100 shares of some good stock outright, something he could put away and forget about. The broker, spying a sucker, described a margin account, told how he could control 500 shares of the same security with the same money. Wolf saw the larger possibilities and took the broker's advice. Shortly afterward the stock went down; he was called for more margin. Bewildered by the sum required he managed to raise all but $500 by legitimate means. Then came the fatal step. He took one of the hundreds of negotiable bonds passing through his hands every day, presented it to the broker, saved his account. For twelve years he tried to repay that $500, doubling his stake, multiplying it 20, 30, 100 times. He opened accounts with other brokers to change his luck. His thefts were never discovered because when he stole a bond he also stole the bank's records showing receipt of that bond. If he had to produce a missing certificate at the bank he substituted another for it at the broker's.

This might have gone on forever had not one of Wolf's brokers become suspicious of the vast amount of collateral at the disposal of a modest bank clerk. The suspicion was laid before a vice president of Continental Illinois. An audit of Wolf's accounts was made while he was on vacation. The audit disclosed nothing amiss. But in his $75-a-month home in River Forest Wolf heard of the audit and thought his game was up. He asked the vice president, an old, personal friend, to call at his house that evening. The two men sat down knee to knee and in ten minutes the whole sad tale was told.

Some romance usually invests anyone who violates the social code in a grand manner, but no romance relieves the drab career of Walter Wolf, embezzler extraordinary. He stole upward of $2,000,000, perhaps as much as $4,000,000, and never benefited materially from a cent of it, nor did anyone else except the brokers. Wolf and his wife and daughter lived and dressed simply, their car was small, his recreation was gardening about his home, he attended the local Lutheran church. His superiors considered him the faithful plodding kind who might go far.

Embezzler Wolf was not under arrest last week. He was living in a hotel under guard by Lloyd's detectives pending the insurance company's efforts to recover some of the securities from Wolf's brokers. "I'll be able to help quite a bit in checking everything up," he said.

Canny Continental Illinois was insured against such losses for $2,000,000 by Lloyd's of London. When the English insurers heard of the theft they said, "Millions of pounds have been paid in the past to U.S. banks but the Chicago claim is the largest of its kind."

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