The J. Lehrenkrauss Corporation was a Brooklyn, New York based mortgage-servicing business which became insolvent in 1934. Julius Lehrenkrauss, 67, the head of the firm, was convicted of mail fraud in the sale of $1,600,000 of preferred stock on January 25, 1935. The company is noteworthy because of the crimes it committed. Also, 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. Lehrenkrauss received a suspended sentence because of his advanced age. Two partners and a former salesman for the firm were given active prison terms.
J. Lehrenkrauss & Sons, a banking and brokerage enterprise, was a subsidiary of the J. Lehrenkrauss Corporation. It was located at 359 Fulton Street (Brooklyn) in December 1933.
Famous quotes containing the word corporation:
“What I am anxious to do is to get the best bill possible with the least amount of friction.... I wish to avoid [splitting our party]. I shall do all in my power to retain the corporation tax as it is now and also force a reduction of the [tariff] schedules. It is only when all other efforts fail that I’ll resort to headlines and force the people into this fight.”
—William Howard Taft (1857–1930)