J. Lehrenkrauss Corporation

The J. Lehrenkrauss Corporation was a Brooklyn, New York based mortgage-servicing business which became insolvent in 1934.[1] On January 25, 1935, Julius Lehrenkrauss, 67, the head of the firm, was convicted of mail fraud in the sale of $1,600,000 of preferred stock. The company is noteworthy because of the crimes it committed. 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.[2] Lehrenkrauss received a suspended sentence because of his advanced age. Two partners and a former salesman for the firm were given active prison terms. [3]

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.[4]

References
  1. 12 Bid For Business of J. Lehrenkrauss, New York Times, March 13, 1934, pg. 41.
  2. Three Convicted In $1,600,000 Fraud, New York Times, January 26, 1935, pg. 36.
  3. Three Are Sentenced In Mail-Fraud Case, New York Times, January 29, 1935, pg. 42.
  4. Newspaper Specials , Wall Street Journal, December 28, 1933, pg. 3.
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