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:
“The nearest the modern general or admiral comes to a small-arms encounter of any sort is at a duck hunt in the company of corporation executives at the retreat of Continental Motors, Inc.”
—C. Wright Mills (1916–1962)