TRUE THE MAN'S MAGAZINE

Magazine Overview

Title: TRUE THE MAN'S MAGAZINE
Issue: August 1956
Publisher: A Fawcett Publication
Price: 25c

Flying Saucer Swindlers

This issue of TRUE Magazine features a detailed exposé by reporter J. P. Cahn, titled "Flying Saucer Swindlers." The article uncovers a sophisticated con game orchestrated by Silas M. Newton and Leo A. GeBauer, who bilked unsuspecting victims out of nearly $400,000.

The Hoax and the "Doodlebuggers"

The scheme began to gain traction around 1952. Newton, a man with a history of fraud charges, and GeBauer, who had a suspended sentence for violating the Federal Housing Act, initially used a fabricated story about flying saucers and little green men from Venus. This narrative was presented in a best-selling book, which Cahn had previously exposed as a hoax in TRUE Magazine. The book served as a platform to establish Newton as a credible geophysicist and multi-millionaire.

Newton, the charismatic frontman, was a self-proclaimed "doodlebugger" – someone using mysterious devices to locate oil. He established the Newton Oil Company in Denver, maintaining a lavish lifestyle. His method involved persuading petroleum trade publications to print articles he authored, filled with elaborate, pseudo-scientific jargon. These articles were used as convincing tools for potential investors.

The "Old Betsy" Machine and the Victims

When Newton's technique of targeting oil men proved limited, he and GeBauer shifted focus to a broader audience. The flying saucer book provided the perfect cover. GeBauer, known as "Dr. Gee," was presented as a mysterious electronic wizard. The core of their scam involved a supposed oil-locating machine, which GeBauer demonstrated with impressive flair. This machine, nicknamed "Old Betsy," was allegedly based on the same magnetic principles as flying saucers and was even claimed to provide readings on a person's health.

Herman Flader, a millionaire inventor, became a primary victim. He was convinced by GeBauer's demonstration and purchased a machine similar to "Old Betsy" for $4,000. Flader invested heavily, eventually paying GeBauer $28,552.30 for a share in more machines. He was further persuaded to invest in oil leases in Dutton Creek, Wyoming, and Newhall, California, ultimately costing him over $230,000. The "underground photographs" produced by GeBauer's machine, which were supposed to show oil deposits, were later revealed to be a mere chart-like affair, with a key tube exploding at a cost of $517 each time.

Other victims included Dr. A. D. Kleyhauer, who lost $9,000 on a similar oil-locating machine, and Herman Corsun, who paid $3,350 for a dubious oil lease near Casper, Wyoming. Corsun was also shown a supposed underground photograph and a tank of oil, which he was told was his.

The Investigation and Legal Proceedings

J. P. Cahn, with the help of TRUE's readership, gathered crucial leads. He learned that Newton had a prior record including arrests for conspiracy and false stock statements, while GeBauer had a suspended sentence for violating the Federal Housing Act. The statute of limitations was a concern, as many transactions dated back years.

Cahn worked with the Denver District Attorney's office, led by Bert Keating. The investigation involved locating witnesses and verifying lease sites. A key challenge was getting victims to file complaints, as admitting to being swindled was difficult. Herman Flader, despite his significant losses, agreed to cooperate.

The Trial and Aftermath

The trial began on November 10, 1953, with charges of confidence game and conspiracy. Herman Flader was a key witness, testifying for nearly a week. The defense attempted to use a doctored document to claim the statute of limitations had expired, but Keating presented the original and called a handwriting expert who identified it as a forgery. An electronics expert testified that GeBauer's machine was a surplus radio-transmitting tuning unit, incapable of indicating oil.

GeBauer's defense involved claims of studying northern lights in the arctic, but expert testimony from a geophysicist from the Colorado School of Mines dismantled his theories. The jury found both Newton and GeBauer guilty on all charges.

They faced maximum sentences of 30 years. On April 12, 1954, their motion for a new trial was denied. Probation was granted on June 20, with terms requiring restitution to Flader and payment of court costs, totaling $82,186.77. Newton claimed to have no income, while GeBauer made small payments. However, Newton was soon back in the news for selling fraudulent stock certificates in a Utah uranium claim, evading attempts to serve him with a summons.

Recurring Themes and Editorial Stance

The article highlights the gullibility of some individuals when presented with sensational claims, particularly those related to UFOs and lucrative investments like oil. It underscores the investigative journalism of TRUE Magazine in exposing fraud and protecting its readers. The editorial stance is clearly against such scams, aiming to inform the public and bring perpetrators to justice. The recurring theme is the exploitation of human desire for wealth and the sensational, using elaborate hoaxes and pseudo-science as tools for deception.