Continued from last week – if you did not read the beginning of this story last week, you should find a copy of last week’s Herald Record and read “AN ALLEGED SWINDLER IN 1906” to catch up with what was going on in this story.
Summarizing the story thus far… S. G. Duckworth, who was a sub-agent for Equitable Life Insurance Company, was accused of swindling money from that company through submitted fake deaths of fake policyholders. He pleaded his innocence. After multiple efforts to secure a $10,000 bond, Duckworth gave up and went to jail. We learned that he had a gambling problem which resulted in the loss of $300 or $400 in a single afternoon.
To finance Duckworth’s alleged gambling habit, he was accused of engaging in writing bogus policies for months (the first fatal bogus policy was written a year to the day before Duckworth was arrested on March 25, 1905).
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We pick up the story:
“The most sensational of these transactions was the one which resulted in his arrest, or at least which was made the basis of the specific charge on which the agent will have his preliminary hearing today. In this case Duckworth wrote a policy on the life of Nancy B. Haught, his wife’s sister, for the benefit of Lottie B. Haught. Later he reported Mrs. Haught dead, produced bogus death certificates, to which the names of the proper authorities were signed, and on these proofs secured $5,000., the amount named in the policy, from the company. Nancy, however, is still alive and well at West Union.
It also develops that Duckworth wrote insurance for a fictitious Parkersburger, whom he soon “killed off,” and on whose alleged death he secured the payment of five thousand dollars. This case and the other one recited were made the basis of two suits filed late Saturday night in the United States Circuit Court for the recovery of the money alleged to have been fraudulently obtained.
In affidavits accompanying the record in the suits the strange transactions are set out in full. In the two cases of record those details are so wonderfully strange and so clever as to almost excite admiration.
Aside from these two cases, it is learned that other policies were paid at the reported death of the policy holders which the company now believes were fraudulent. It also develops that on many policies payment was refused on the representation of the death of the holders because of the suspicious circumstances surrounding, and because of improper evidence. The amount that Duckworth secured by his speculations is not known. By some it is estimated at as much as forty thousand dollars. Of the larceny of ten thousand dollars, there is almost absolute proof.
The two suits were filed against Duckworth in United States Court. Both suits are to recover the amount of five thousand dollars, alleged by the plaintiff to have been fraudulently obtained by the defendant.
Attachments were issued when the suits were filed. They are to tie up bank deposits and real estate. They will likely be served by the U. S. Marshal today. Van Winkle and Ambler are attorneys for the plaintiff corporation.
The affidavits accompanied set out the facts as known to the plaintiff. In both cases, the company seeks to secure the money fraudulently obtained from it, representing that Duckworth possesses a house and lot on Virginia Avenue, worth probably four thousand dollars. Also, that he has on deposit in the local banks considerable money and owns other property. It was mentioned by the Dispatch-News yesterday morning that Duckworth had a certificate of deposit for one thousand dollars on his person when he was arrested.
The first case sets forth the transaction which was made also the basis of the criminal charges. The affidavit is made by Thomas C. Gaskins, agent of the Equitable Life, of New York. Mr. Gaskins is the same agent who swore out the felony warrant.
The affidavit represents that under date of March 25, 1905, applications were sent to the home office for insurance on the life of Nancy B. Haught, of West Union, Doddridge County, to insure her life for $5,000 for the benefit of Lottie E. Haught. The papers seemed to be regular and were certified as proper and regular by the agent.
The insurance policy was written, and on the June following, proof of death of Nancy Haught was forwarded to the company by Duckworth, urging prompt payment of the loss. It was represented that the policyholder died on June 22, 1905.
These proofs were verified before “George C. Varner,” and alleged or fictitious notary public in Doddridge County. The alleged notary’s official character was certified by U. G. Summers, clerk of the county court of Doddridge County. The seal of the county court was affixed.
Among the proofs of the death of Nancy Haught were several certificates, one signed by Lottie E. Haught, the alleged beneficiary. This stated Nancy Haught’s death. Another certificate was given by a physician, Dr. A. G. Martin, who certified that Nancy Haught had died of typhoid fever. The certificate gave the details of her death.
Then, there was a “next friend,” H. E. Leggett, who also certified death. There was also the fictitious death and burial certificate of an undertaker certifying that he had buried the body of Nancy Haught at Pleasant Grove Cemetery in Doddridge County.
The list wound up with a certificate by Duckworth, the agent, himself, also verified and acknowledged by “George Varner,” the alleged notary public.
In his certificate, Duckworth stated that he had not seen the corpse, but he explained in detail the circumstances. He said he believed them to be true.
The company paid down the money on the Nancy Haught policy, but later started an investigation. It was ascertained by means of the investigation that there was no such notary public as “George C. Varner,” before whom all of the affidavits and death certificates were acknowledged; that the “next friend,” the doctor and the undertaker were all fictitious persons; that the sworn statement of Duckworth was false; that the certificate of the county clerk was a forgery, and that Nancy Haught was a sister of Duckworth’s wife. It also developed that in point of fact, she had never made application for insurance, and what is still more important, she is alive and well to this day.
The company sent its check to pay the claim of five thousand dollars, payable to Lottie E. Haught, and this check showed up endorsed by L. E. Haught, and under the endorsement by S. G. Duckworth, showing that he got the money.
In the other case, the affidavit accompanying the U. S. court record sets out that Agent Duckworth represented to the company that he had insured the life of one Hugh E. Wilson under date of January 27, 1905, for five thousand dollars. The policy named one Mary E. Wilson as the beneficiary.
It is alleged that on January 25, 1905, Duckworth reported the said Hugh T. Wilson to be dead, and he caused proof to be sent in to the company’s home office. The company made a check to the order of Mary E. Wilson for the amount of the policy. The check was delivered into the hands of Duckworth for the purpose of making the settlement, and the affidavit alleges that Duckworth secured the money on it and converted it to his own use.
The affidavit sets out in detail that Duckworth represented that Hugh T. Wilson lived in Parkersburg, Wood County, and was employed as a bookkeeper, and that the said Mary E. Wilson, named as beneficiary was his mother. In the application were statements alleged to have been made by Dr. W. J. Davidson, of this city, as medical examiner of the company, purporting to set forth the result of an alleged examination made by the physician on Hugh T. Wilson. Below the purported signature of H. T. Wilson was written:
“This risk is approved and recommended by S. G. Duckworth.”
On or about January 25, 1906, Duckworth forwarded to the company what purported to be proofs of the death of the Hugh T. Wilson named in the policy. Among these proofs were:
First – A notice addressed to the Equitable Life, stating that Hugh T. Wilson had died; that he was the same person whose life was insured by the society; that death was due to pneumonia; that the person undersigning the notice was the mother of the deceased. The same was signed “Mary E. Wilson.” A pretended affidavit was appended to the statement purporting to show that Mary E. Wilson made oath to the statement before Harris B. Dodge, a notary public of this county.
Second – An attendant physician’s statement, also purporting to be proof, wherein one H. E. Martin, as attending physician, purported to state that Hugh T. Wilson had died here on January 22, 1906, of pneumonia. This statement also purported to have been acknowledged by Harris B. Dodge as notary public.
Fourth – A “friend’s” statement, which purports to be signed by one John H. Ford likewise sworn to before H. B. Dodge, accompanies, wherein the said Ford purports to state under oath that he had known Hugh T. Wilson, named in the policy for two years, and that he had seen the corpse of the deceased. He knew that it was the same person insured.
Fifth – There was also an agent’s statement, subscribed to by S. G. Duckworth in person. In it, Duckworth said:
“The name of the deceased is Hugh T. Wilson; I personally saw the remains of the deceased; yes, I saw the remains.” Further the statement represented that Duckworth knew that the remains were those of Hugh T. Wilson.
The affidavit further says that these several papers were received in the home office and that proof appearing that Hugh T. Wilson insured in the company was dead, that a check was issued payable to the order of Mary E. Wilson, the beneficiary named.
It further says that this check was received by Duckworth and that the check later appeared to have been endorsed “Mary E. Wilson.” And that in fact it was endorsed by S. G. Duckworth, as the person to whom the money was paid. It also appears that Duckworth appropriated the money to his own use.
Affiant, Thomas E Gaskins, recently started an investigation of this transaction to ascertain the facts which regards to it, and found that there was no such person as Hugh T. Wilson in Parkersburg, such as described, and that there had not been that there was no such person as Mary E. Wilson in Parkersburg; also that there was no such person as “A. L. Patton, Undertaker,” nor was there any man here by the name of John H. Ford, who signed as the next friend of the deceased; nor was there any such person as H. B. Martin, whose name appears as the physician who attended the deceased in his last illness; but that each and every one of these alleged persons were fictitious and without being.
The affidavit does not report whether or not Dr. W. J. Davidson as medical examiner, was imposed upon, also whether or not Mr. H. B. Dodge, as notary public, had any relations in the transaction, either innocently or otherwise with Duckworth.
Mr. Dodge could not be seen last night. He lives on Blennerhassett Island. Dr. Davidson, when seen last night, said that a man at the time mentioned in the affidavit, appeared at his office for examination. He gave his name as Hugh T. Wilson. He said that his mother was Mary E. Wilson, a widow. They lived on Market Street (Parkersburg), the applicant said. He said he was an accountant. He took the examination and was accepted. From subsequent developments, it appears that “Wilson” was a “straw man,” that is, he was merely a pal of Duckworth in his operations.
Dr. Davidson said that he had no means of knowing, and, in fact, it did not devolve on him to know whether the man gave his true name or not. He simply made the necessary medical and physical examination. “The fellow was all right,” said the physician, “He passed mighty good examination.”
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Next week, we shall bring you the rest of the story. Did Duckworth serve time in prison for his activities, or did he get off scot-free? Were all
the doctors, undertakers, and policyholders fabricated for this case? Mr. Harris B. Dodge was a real person, and he was a notary public. Was his name forged? Investigator Gaskins had not asked Dodge for a statement yet. What will his story be?
Time will tell. Stay tuned to next week’s article to find out.
God Bless
Patricia Richards Harris
Doddridge County Historical Society