Oscar Hartzell
Encyclopedia
Oscar Hartzell was an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 con man
Confidence trick
A confidence trick is an attempt to defraud a person or group by gaining their confidence. A confidence artist is an individual working alone or in concert with others who exploits characteristics of the human psyche such as dishonesty and honesty, vanity, compassion, credulity, irresponsibility,...

 who convinced many people in North America to join him in a fraudulent lawsuit against the British government. The original idea did not originate with him, but rather was a continuation of a previous scam.

Hartzell was a farmer's son from Madison County, Iowa
Madison County, Iowa
-2010 census:The 2010 census recorded a population of 15,679 in the county, with a population density of . There were 6,554 housing units, of which 6,025 were occupied.-2000 census:...

 who worked as a farmer
Farmer
A farmer is a person engaged in agriculture, who raises living organisms for food or raw materials, generally including livestock husbandry and growing crops, such as produce and grain...

 and a deputy sheriff
Sheriff
A sheriff is in principle a legal official with responsibility for a county. In practice, the specific combination of legal, political, and ceremonial duties of a sheriff varies greatly from country to country....

. According to Hartzell, in 1915 he met a couple of con artists who promised to turn his mother's $6000 into $6 million by giving him a share of the held fortune of Sir Francis Drake
Francis Drake
Sir Francis Drake, Vice Admiral was an English sea captain, privateer, navigator, slaver, and politician of the Elizabethan era. Elizabeth I of England awarded Drake a knighthood in 1581. He was second-in-command of the English fleet against the Spanish Armada in 1588. He also carried out the...

. When Hartzell realized the deal was a confidence game, he decided to use it to his own advantage.

In 1919, Hartzell contacted many Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...

ns who had the surname Drake. He claimed that he was a distant relative and had discovered that the estate of Sir Francis Drake had never been paid to his heirs, that it had gathered interest for the last 300 years, and that it was now worth $100 billion. Hartzell invited all these families to invest in his campaign to sue the British government for the money and assured them that everyone would make $500 for every dollar they invested. The inheritance would include the whole city of Plymouth
Plymouth
Plymouth is a city and unitary authority area on the coast of Devon, England, about south-west of London. It is built between the mouths of the rivers Plym to the east and Tamar to the west, where they join Plymouth Sound...

 in England.

Tens of thousands of Americans sponsored him—sometimes with all the money they had. Hartzell later expanded his con to people without the surname Drake and outside of Iowa.

Around 1924, Hartzell proceeded to move to London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 to live in an opulent lifestyle. He told the families who had invested in the "campaign" that he was negotiating with the British government and needed even more money for expenses. His agents in the Midwest—some of which believed in the scheme themselves - collected the money.

On August 9, 1922, the British Home Office informed the American embassy that there was no unclaimed Sir Francis Drake estate. Hartzell explained that the estate was not unclaimed because it belonged to Drexel Drake (a nonexistent colonel) and therefore to Hartzell.

Unfortunately, Hartzell had not broken any British law, so British police could not arrest him. The FBI investigated and announced that Drake's wife had duly inherited his estate in 1597. That information did not stop the donations. When Ed Smith, Iowa Secretary of State
Iowa Secretary of State
The Iowa Secretary of State is a constitutional officer of the U.S. state of Iowa and is elected every four years. The Office of the Secretary of State is divided into four divisions: Elections and Voter Registration, Business Services, Administrative Services, and Communications and Publications...

, tried to convince the state legislature to act, the public and Hartzell's supporters protested, saying that they could donate to whomever they wanted; the legislature did nothing.

After the Wall Street Crash of 1929 and during the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

, Hartzell's followers seemed to become even more desperate and sent him even more money.

On October 11, 1930, John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...

 was arguing in an article for deficit spending
Deficit spending
Deficit spending is the amount by which a government, private company, or individual's spending exceeds income over a particular period of time, also called simply "deficit," or "budget deficit," the opposite of budget surplus....

 to alleviate the Depression and mentioned that Queen Elizabeth
Elizabeth I of England
Elizabeth I was queen regnant of England and Ireland from 17 November 1558 until her death. Sometimes called The Virgin Queen, Gloriana, or Good Queen Bess, Elizabeth was the fifth and last monarch of the Tudor dynasty...

 had invested Drake's loot—which Drake had given to the crown—for the benefit of the country. Hartzell seized this as a proof of his claims and his agents in the USA spread copies of the article to his followers.

Eventually United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...

 inspector John Sparks, with help from the British police, seized some of the Hartzell's agents and forced them to reveal the scam. At the same time, Scotland Yard
Scotland Yard
Scotland Yard is a metonym for the headquarters of the Metropolitan Police Service of London, UK. It derives from the location of the original Metropolitan Police headquarters at 4 Whitehall Place, which had a rear entrance on a street called Great Scotland Yard. The Scotland Yard entrance became...

 arrested some of Hartzell's British associates. Britain deported Hartzell to USA and he was sent to Iowa for trial in 1933.

Hartzell was tried in Sioux City, Iowa
Sioux City, Iowa
Sioux City is a city in Plymouth and Woodbury counties in the western part of the U.S. state of Iowa. The population was 82,684 in the 2010 census, a decline from 85,013 in the 2000 census, which makes it currently the fourth largest city in the state....

 in 1933. His followers sent him total of $68,000 for his defence. He was convicted of fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...

 in 1934, sentenced to ten years in prison and sent to Leavenworth Penitentiary
United States Penitentiary, Leavenworth
The United States Penitentiary , Leavenworth was the largest maximum security federal prison in the United States from 1903 until 2005. It became a medium security prison in 2005.It is located in Leavenworth, Kansas...

. By that time, he had run his scam for over 15 years. Even after his sentence, some of his agents collected more donations—$500,000 for the next year.

Hartzell died in a prison hospital in 1943. Many of his victims—approximately 70,000–100,000 people—believed in him to the end of their own lives.

Modern Correlates

The Hartzell scam is strikingly similar to another Iowa based scam, Omega Trust
Omega Trust
Omega Trust was a fraudulent US investment scheme in Illinois.Clyde D. Hood is a former electrician from Mattoon, Illinois. In 1994 Hood formed Omega Trust and Trading Limited and began to lecture to church groups. He said that the Lord had given him a mission...

, and its associated scam NESARA
NESARA conspiracy theory
NESARA is an acronym for the proposed National Economic Security and Reformation Act, a set of economic reforms suggested during the 1990s by Harvey Francis Barnard...

, on several key points:
  • Hartzell was a former victim of the scam who began perpetrating it himself once he realized he'd been had, much like Shaini Goodwin started NESARA after falling for Omega Trust.
  • He employed a unique pyramid
    Pyramid scheme
    A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public...

    structure in which scam victims lured in others while continuing to believe themselves, much like Omega's "claim writers".
  • He convinced his victims that the government's opposition to the scam was the cause of delays, to the extent that they continued to support him after his conviction.

Books

  • Richard Rayner, Drake's Fortune: The Fabulous True Story of the World's Greatest Confidence Artist (2002, ISBN 0-385-49949-3)
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