Atlanta Constitution, March 28, 1912, page 11:
LEE DE FOREST UNDER ARREST
San Francisco, March 27.--Lee De Forest, of the American Wireless Telegraph Company, was arrested at Palo Alto, Cal., today on an indictment from the southern district of New York charging misuse of the mails.
The indictment which was returned March 15, 1912, names James Dunlop Smith, Samuel E. Darby, Elmer E. Burlingame, and the Ellsworth Company as co-defendant, with De Forest. It is charged the defendants attempted fraud by inducing certain persons to send to the Ellsworth company and to the Fiscal Agency Company, of New York, money for stock in the Radio Telephone Company, a New York corporation; the Great Lakes Radio Telephone Company, the Atlantic Radio Company, and the Pacific Radio Company, the three last Arizona corporations.
The defendants are charged with having misrepresented conditions in telling the complaining witnesses that the corporations in question were paying dividends from the net profits of commercial operations. It is also alleged the defendants made false statements concerning the commercial value of the Radio telephone. Another allegation is that the board of directors of the Radio Telephone Company intended to defraud possible purchasers of stock in the enterprises named.