Hartzell, Oscar

Hartzell and the Drake Scam

Oscar Merril Hartzell was born in 1876, the son of a farmer from Madison County, Iowa. He grew up in the American Midwest during the late 19th century. He tried his hand at farming and worked for a while as a deputy sheriff.

In 1919, two con artists using the Drake scam, Milo F. Lewis and Sudie Whiteaker, made a pitch in Hartzell's family farmhouse in Madison County. Hartzell's mother decided to invest her life savings of $6,000 in cash, which the duo promised would reap a return of $6 million. Her two sons, Oscar and Canfield Hartzell, had overheard the pitch.

Oscar tracked Lewis and Whiteaker to Des Moines, Iowa, and confronted them. They admitted to bilking about $65,000 from investors in Iowa during the previous two months. However, Hartzell convinced the pair that they were underestimating the full potential of the swindle, and they agreed to let him assist them in their schemes. Soon thereafter the three established a partnership, opening up an office for the Sir Frances Drake Association. They initially concentrated their recruitment efforts on Iowa, Illinois, and Missouri, contacting people with the last name of Drake. Eventually the Sir Frances Drake Association widened its sphere of operations and accepted investments from almost anyone.

Investors were promised that for every dollar invested in the plan, they would get back a return of $500. However, Hartzell was aware of the laws pertaining to mail fraud, and initially he rigorously avoided using the mail. Nevertheless, the swindle took on momentum as it expanded and more accomplices were recruited.

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