large loans from the bank he effectively controlled. He ordered two bank examiners to keep an eye on Ponzi's accounts. On August 9, the bank examiners reported that enough investors had cashed their checks on Ponzi's main account there that it was almost certainly overdrawn. Allen then ordered Hanover Trust not to pay out any more checks from Ponzi's main account. He also orchestrated an involuntary bankruptcy filing by several small Ponzi investors. The move forced Massachusetts Attorney General J. Weston Allen to release a statement that there was little to support Ponzi's claims of large-scale dealings in postal coupons. State officials then invited Ponzi noteholders to come to the Massachusetts State House to furnish their names and addresses for the purpose of the investigation. On the same day, Ponzi received a preview of Pride's audit, which revealed Ponzi was at least $7 million in debt. On August 11, it all came crashing down for Ponzi. First, the Post came out with a front-page story about his criminal activities in Montreal 13 years earlier, including his forgery conviction and his role at Zarossi's scandal-ridden bank. That afternoon, Bank Commissioner Allen seized Hanover Trust due to numerous irregularities. The commissioner thus inadvertently foiled Ponzi's plan to "borrow" funds from the bank vaults as a last resort in the event all other efforts to obtain funds failed. By the morning of August 12, Ponzi's certificate of deposit at Hanover Trust, which had been worth $1.5 million, was reduced to $1 million after bank officials tapped into it to cover the overdraft. Even if he had been able to convert it into cash, he would have had only $4 million in assets. Amid reports that he was about to be arrested any day, Ponzi surrendered to federal authorities that morning and accepted Pride's figures. He was charged with mail fraud for sending letters to his marks telling them their notes had matured. He was originally released on $25,000 bail and was immediately re-arrested on state charges of larceny, for which he posted an additional $10,000 bond. After the Post released the results of the audit, the bail bondsman feared Ponzi might flee the country and withdrew the bail for the federal charges. Attorney General Allen declared that if Ponzi managed to regain his freedom, the state would seek additional charges and seek a bail high enough to ensure Ponzi would stay in custody.