Chasing Phil: The Adventures of Two Undercover Agents with the World's Most Charming Con Man

Chasing Phil: The Adventures of Two Undercover Agents with the World's Most Charming Con Man

by David Howard


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Product Details

ISBN-13: 9781101907436
Publisher: Crown/Archetype
Publication date: 08/07/2018
Edition description: Reprint
Pages: 384
Sales rank: 153,664
Product dimensions: 5.10(w) x 7.90(h) x 1.00(d)

About the Author

DAVE HOWARD has written for the New York Times, Men's Journal, Outside, Travel & Leisure, and Bicycling, among other outlets. He is also the author of Lost Rights.

Read an Excerpt


How to Steal a Bank

July 1976

Heading out to dinner on a summer Saturday night, Byron and Emma Haines-Prescott (not their real names) couldn’t have expected much. Byron, a British banker, was meeting two Americans who had arrived at his door two days earlier to discuss acquiring his small twelve-year-old bank, Seven Oak Finance, Ltd.

Haines-Prescott had put his bank (which was more of a depository, really) up for sale more than a year before, attracting a parade of big shots who had rolled into London ready to cut a sweetheart deal. But he wasn’t about to give it away. Haines-Prescott was only thirty-six, so maybe the sharks expected to take advantage of his youth, or perhaps word had gotten out that he was flailing financially. Regardless, his latest suitor, Phillip Kitzer, could easily have been just one more in the parade of empty suits with hollow offers.

But Kitzer’s arrival at Seven Oak had made an impression. At forty-three, he was wiry but dashing in his tailored suit, light blazing behind the eyes, brown hair parted on the left and swept back. Although his head looked slightly too large for his body, he had a narrow, creased face, a smile that revealed deep dimples, and the prominent chin of an early Hollywood star; he emanated a kind of effortless charisma unique to successful people. He’d arrived with a business partner, Paul Chovanec, who looked a decade younger. Chovanec had dark hair and black horn-rimmed glasses and was taller and heavier, but he was clearly second-in-command. Kitzer had talked up his background, then invited Byron and Emma for a follow‑up meal at a swank London restaurant.

As they settled in at their table, Kitzer was funny and charming with Emma. He described a stratospherically successful career. He had already owned an assortment of banks and insurance companies, and had traveled the world brokering loans for the United Nations. He had global contacts across the uppermost strata of finance. All of that endeared him to the couple--but what happened after dessert made even more of an impression. Chovanec pulled Haines-Prescott aside and handed him an envelope.

“Here, this is for your time,” Chovanec said. “We want to talk. We’re serious.”

Haines-Prescott opened it. Inside was $5,000 in cash.

The negotiations for Seven Oak began the following week. Kitzer and Chovanec showed up at the bank daily, riding the Tube thirty-five minutes to the suburbs from London’s Brittanica Hotel. Sitting in the office with Byron and Emma, they pored over financial statements and lists of depositors.

As he grew more comfortable with the Americans, Haines-Prescott revealed the details of his situation. The rumors of his struggles were true: The bank was a smoking crater. Just a couple of months earlier, Seven Oak had promised readers of the Illustrated London News a return of 14 percent on deposits. “If you have a minimum of £500 that you wish to invest safely and profitably, then send off the coupon below.” But Haines-Prescott had siphoned out £175,000--about $300,000--in deposits to fund a business called Cidco. He’d used his accounting background to conceal this shortfall by preparing a false first-quarter report. He’d then sent the document to an accountant whom he’d paid to certify the fabricated figures before he submitted them to the U.K.’s Board of Trade. Exactly how long Haines-Prescott could shield this financial sand castle from the oncoming tides of government oversight was unclear. Beyond the £175,000, Seven Oak was £7,000 in the red to two banks with which it had relationships.

Haines-Prescott was relieved to find that Kitzer wasn’t put off by this. Kitzer assured him that none of that was any problem--in fact, he could help the Brit put his house back in order.

As the summer wound down, they reached the crux of the negotiation: how much Kitzer and Chovanec would pay. Haines-Prescott wanted, at the bare minimum, £175,000--so he could erase his debt, file a truthful statement with the Board of Trade, and walk away clear. But Kitzer took a tough stance.

“If you think that anybody is going to buy this bank and put a hundred and seventy-five thousand pounds into it [in] cash, you are badly mistaken,” he said. “That will never, never happen. That’s one of the reasons you haven’t sold the bank. You’d better come up with a better idea.”

“Phil, we can work it out,” Haines-Prescott replied. “It doesn’t have to be cash. We can come up with something.” By then he’d invested about six weeks in the Americans, and he felt pressured to file his late second-quarter paperwork with the government.

Kitzer then furnished a better idea. He and Chovanec would provide a letter indicating that Sterling and Company, Chovanec’s Milwaukee-based corporation, would transfer about £175,000 to cover the bank’s debts--Haines-Prescott would never touch the money, but he would walk away assured he was in the clear. As a bonus, the Americans would pay him £50,000 in cash.

Haines-Prescott agreed to that offer. When he wrote up a preliminary agreement on September 14, he asked whom to put down as the purchaser.

“Make it 219 Dearborn Corp.,” Kitzer said.

Chovanec looked over and lifted his eyebrows inquisitively: Who? Kitzer smiled and said he would explain later.

Naturally, Haines-Prescott wanted assurances that Kitzer and Chovanec would honor the deal, and in the next few days he spelled out his demands. First, he wanted a notarized letter from Sterling and Company confirming that it was holding $300,000 on behalf of Seven Oak. Haines-Prescott also required further references--banks that could assure him that Sterling had sufficient assets or that would back the company up with their own funds. And he wanted a notarized letter providing assurance that Chovanec could authorize such transactions for Sterling.

Haines-Prescott wrote out what he wanted, then stood there while Kitzer dictated it to Chovanec, who had flown back to Milwaukee.

Dear Sirs,

We hereby confirm that we are holding the sum of U.S. $300,000 on behalf of Seven Oak Finance, Ltd. of Priory Buildings, Churchill, Orpington, Kent, England. The authorized signatory being Phillip K. Kitzer.

Yours faithfully, for and on behalf of Sterling and Company, N/A,

P. Chovanec, President

Kitzer had suggested using his name because he’d stayed in England and could therefore sign in person. The letter came back bearing a stamp: “Signature guaranteed by Midland National Bank, Milwaukee, Wisconsin.”

Chovanec provided a list of references on Sterling letterhead. A letter from William Kelly at North Ridge Bank highlighted his bank’s solid relationship with Sterling and explained that Sterling had maintained $300,000 in deposits at various times during the previous year. A second bank reported that Sterling had authorized six-figure transactions in recent months.

Just before five in the afternoon London time, Haines-Prescott dialed one of Chovanec’s references. Roger Lewis, the executive vice president of St. Francis Savings and Loan Association, in Wisconsin, confirmed that he knew Chovanec and that Sterling maintained an account holding hundreds of thousands of dollars.

Haines-Prescott jotted, “Yes, six figures. We have had a good relationship with them.” Then he hung up.

“Okay, now the second one,” Kitzer said.

“No, that’s it,” Haines-Prescott said. “I don’t have to go any further. I got it from one, I imagine I will get it from them all.”

Kitzer pressed, but Haines-Prescott waved him off.

“Phil, this is fine, this is exactly what I need,” he said. “Let’s close the deal.”

On September 30, Haines-Prescott made out a deposit slip for £175,000, and Kitzer handed him two bills of exchange--the British version of a personal check--to cover the bonus. They were postdated because, Kitzer had explained, he needed to spread out the payments.

Kitzer signed various pages of paperwork, and Haines-Prescott assigned him and Chovanec his stock in Seven Oak--all one hundred thousand shares. They shook hands, and having spent a productive couple of months in England, Kitzer headed home.

Haines-Prescott hoped to move quickly to clean up his accounting mess. There was one problem: The transfer of the £175,000 didn’t happen. A few days passed, then a week, and the Americans assured Haines-Prescott that the transaction was imminent.

But after ten days, the Brit received notice that the bank responsible for wiring the funds had declined payment for insufficient funds. Squelching his rising panic, Haines-Prescott tried to call Kitzer and couldn’t reach him. But he contacted Chovanec, who said that the declined payment was a mix‑up that he would soon straighten out.

When he still hadn’t received the money by October 17--two and a half weeks after the deal closed--Haines-Prescott must have suspected that he’d been scammed. He figured he’d strike back while he still had some leverage: He wired Kitzer a message saying he planned to notify Seven Oak depositors that their money was in jeopardy. He would trigger a run on the bank.

But Haines-Prescott had initiated a chess match, and his first move was a stumble: October 17 was a Sunday. The bank was closed. This gave Kitzer time to send notice back to England that he had fired Haines-Prescott; his wife, Emma; and the entire board of directors, effective immediately--thereby eliminating their ability to communicate with the bank’s customers. Seven Oak’s four employees would receive this directive when they arrived at work on Monday.

Haines-Prescott studied the deal he’d signed, turning to the guarantee he had received from Midland National Bank. He would soon find that the stamp didn’t match Midland’s corporate seal--that, in fact, it was a counterfeit created by a stamp maker Chovanec had hired.

Then there was the document’s wording: “Signature guaranteed by Midland National Bank, Milwaukee, Wisconsin.” A careful reading revealed a hidden catch. The letter didn’t mean that Midland guaranteed the $300,000. All it said was that the bank guaranteed Kitzer’s signature.

Haines-Prescott might have taken comfort from the $50,000 Kitzer had given him. The bills of exchange were each for $25,000 and were postdated for three and six months after the sale date--but in light of events, Haines-Prescott decided to try cashing them. Kitzer had built in a trapdoor there, too. After acquiring Seven Oak, Kitzer had sent a telex instructing the staff to place a stop payment on any checks or bills of exchange from any past bank officers or directors “until a determination can be made if in fact they were issued for the personal benefit of past officers and directors.”

Haines-Prescott realized, to his horror, that he had even inadvertently helped Kitzer cover his tracks. He had written the terms of the deal. If he dragged Kitzer and Chovanec into court, they could simply show Haines-Prescott’s notes: See? We gave him exactly what he asked for. Except, of course, for the money--and in that setting, Kitzer could simply draw attention to Haines-Prescott’s accounting improprieties.

Haines-Prescott ultimately figured that was worth the risk, because on October 18 he played his final move. He met with Kenneth Guilbert, a detective inspector in the fraud department of Scotland Yard, handed over the sale documents, and explained how two Americans had stolen his bank.


Excerpted from "Chasing Phil"
by .
Copyright © 2018 David Howard.
Excerpted by permission of Crown/Archetype.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Table of Contents

Cast of Characters x

Prologue 1

Part I The Chase

1 How to Steal a Bank 7

2 The Informant 14

3 You Owe Me Fifty Bucks 23

4 The Shell Game 35

Part II The Game

5 The Thunderbird 49

6 Hello, Cleveland 57

7 No Mickey Mouse 69

8 The Junior G-Men 82

9 The Poodle Lounge 93

10 Mr. Mutt and Mr. Jeff 104

11 Rip Off Hawaii 117

12 The Parking Lot Fugitive 139

13 The Cold Plunge 150

14 The Ha-Ha Certificate 162

Part III Fear City

15 Pilgrims in the Mayflower 183

16 The Rhinestone Cowboys 199

17 Kick the Can 214

18 The Hit Man 224

19 The Blackout 235

20 Fool's Gold 254

21 Sonny's Mentality 264

22 The Game Is Rigged 277

Part IV The Reckoning

23 You Hove to Believe It to See It 291

24 Hobson's Choice 298

25 The Phil Kitzer Road Show 312

26 One More Thing 328

Epilogue 339

Acknowledgments 341

Notes 345

Index 365

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Chasing Phil: The Adventures of Two Undercover Agents with the World's Most Charming Con Man 5 out of 5 based on 0 ratings. 3 reviews.
Anonymous More than 1 year ago
Chasing Phill immediately had me hooked. Author David Howard takes you on an amazing journey of two FBI agents who ultimately changed the course of history and the FBI as we know it today. The book has everything you want in a true-crime story. It's complex, vibrant, and suspenseful. I received this book from the Blogging for Books program in exchange for this review.
Anonymous More than 1 year ago
In Chasing Phil, David Howard tells the story of Phil Kitzer and in the process crafted a nonfiction book that reads like a novel that you simply cannot put down! The book consumed all of my free time in the the few short days it took me to read. This book is a must read for anyone looking to find their next historical nonfiction read! I really didn't want it to end and the character development and presence of FBI detectives JJ Wedick and Jack Brennan in the story was much better than so many books in this genre. Highlights of the book: Character development -- In reading this book you get such a great knowledge of the characters that I found myself with them in Miami, Honolulu, Cleveland, or at the Thunderbird Hotel (which I have been in before it was unceremoniously demolished) FBI History -- as much as you get the know the characters, Howard also shows the depth of his research by including an unexpected history of the FBI and in the process provides perspective and context for the story and how it changed the organization Criticisms: Minor Confusion -- because of all of the different scams, people, and locations the book touches on the fact finder in me wanted to see it all in a chart or numerically represented. In the end, I was left without any clear perspective on the true amount and number of scams Kitzer ran and that would have been fascinating. Overall, I heartily recommend this book and will likely read it again in a few years! I received this book from Blogging for Books for this review
Anonymous More than 1 year ago
“Chasing Phil” Review by Tom Baker The author, David Howard, has done an outstanding job in crafting “Chasing Phil”. As a ‘true crime’ story it is one of the best that I have ever read. It is a fast read - a thriller – with some laughs as well. But it is at the same time a true work of serious history, with 20 pages of notes documenting every page and passage to prove it. David Howard is like a Brad Thor or David Baldacci, while at the same time being a Ron Chernow or David McCullough. Difficult, but he does it. The adventure is the story of two young FBI agents traveling the world in the company of the king of all con men, with a backdrop of the late 70’s, and all the smoking, drinking, and glamour that was then. The history is the back story; the evolution of the FBI to face a more complex world and smarter criminals. The central figures are the two young FBI agents, Jim “JJ” Wedick and Jack Brennan, who did what no one in the Bureau had done before them: They went undercover for the long term. They set the stage, and demonstrated the need, for the back-up and support that would lead to the now almost routine major undercover operations. This is truly their story. Like most major undertakings, however, this was a team effort. It eventually involved many FBI Field Offices and US Attorneys’ Offices. It spawned cases large and small; most significantly ABSCAM. In the course of their travels, these two agents from “Nowhere Indiana” (as some New York agents labeled them) walked into the New York Office of the FBI and told of a meeting that they had just been at (in an undercover role) in an office on Central Park South. Eventually, one NY agent – Myron Fuller – did hear them out. The information Jack and JJ provided gave Fuller the probable cause for a wiretap. That wiretap lead the FBI to Mel Weinberg, the master conman, who was the key to ABSCAM. Clearly, Jack and JJ walking into the FBI NY that day led straight to ABSCAM. While Jack and JJ were still deep into this undercover life, I was serving on the Bureau’s Inspection Staff. During an inspection of the Indianapolis field office, I was assigned to review the case file of Operation Fountain Pen (OPFOPEN), Major Case #1. By then that was the full official name for Jack and JJ’s travels with the con-man. I was blown-away by the breath and daring of Operation Fountain Pen (OPFOPEN), endorsing it fully. A year later, I found myself a Supervisor in the Mobile, Alabama, office with Jack Brendan, now transferred from Indianapolis and on my squad. We were able to get Myron Fuller and Jack McCarthy, in undercover roles using their ABSCAM backstopping, to help us. This was possible in part to having Jack Brendan, with his knowledge of the ongoing cases, there with me. Fuller and McCarthy approached a local con-man, Sidney J. Gerhardt, an “advance fee” artist. Advance fee, a popular con at the time, is very accurately described in David Howard’s book. Ultimately, we secured a conviction of the con man in the Southern District of Alabama. That case (US v Gerhardt, et al) is cited a number of times in the notes for Howard’s book. “Chasing Phil” may soon be a movie. Let’s just hope that Hollywood can do as good a job with Jack and JJ’s story in two hours as David Howard has done in 350 pages.