A Gangster Hid $150 Million Worth Of Treasure — And It Hasn’t Been Found
When we think of hidden treasure, we often imagine pirates following the "X" on a map. As it turns out, one New York gangster really did manage to hide his enormous wealth below ground. Even wilder is that experts still haven't found it to this day! The man was Dutch Schultz, a criminal who made his wealth during the Prohibition Era by standing up to the mafia and the Irish mob. The story sounds like it's straight out of Hollywood, but it's true.
Keep reading to learn more about Dutch and the treasure that's still out there...
Not The Easiest Start In Life
Dutch Schultz was born Simon Flegenheimer in 1901, a year after his parents wed in Manhattan. His sister was born in 1904 and shortly thereafter, their father Herman left the family.
Simon's mother later wrote that Herman had died in 1910, so the details of his departure are ambiguous. Either way, it was tough on young Simon, who would vehemently deny that his father had left him. To top it off, the family struggled to survive without Herman's income.
He Dropped Out Of School In Eighth Grade
Simon only made it through the eighth grade, at which point he dropped out to help support his family. He worked as a feeder and pressman for a handful of companies from 1916 to 1919.
One of these companies was Schultz Trucking, which may be connected to Simon's eventual nickname, Dutch Schultz. He left the company to work at a mobster-owned nightclub, which is where Dutch's legal troubles began. He started by robbing craps games.
Trading In Work For Burglaries
Dutch's life of crime had officially began as soon as he became a legal adult. Once Dutch's habit of robbing from craps games got old, he graduated to full-blown burglaries.
The young man's hard life was clearly catching up with him. Even worse was that his rebellious nature only increased as his continued down the road of criminal behaviour. It was only a matter of time before he got caught, but that didn't stop him, and neither did jail time.
His First Booking
Dutch was caught redhanded before he even made it to 19-years-old. The young man was arrested upon breaking into an apartment, and landed himself a jail cell at what is today called Roosevelt Island.
The angsty Dutch was such a wreck at the jail that he ended up being transferred to a work farm on Long Island. The move didn't even remotely tame the budding criminal. Dutch got his sentence extended two months for trying to escape.
The Start Of Prohibition
While Dutch was locked up, the Volstead Act was kicking in, beginning the Prohibition Era. The act carried out the 18th amendment by granting federal and states the authority to ban the production, sale, and transport of intoxicating liquors.
By the time Dutch got out of jail, bootleggers were already scheming to benefit from the new laws. The restrictions meant that demand would be through the roof, and Dutch was eager to jump on the bandwagon.
Combining Employment And Crime
When Dutch got out of prison, he returned to the job he had before the mobster-owned nightclub: Schultz Trucking. The company not only didn't mind his criminal record, but they actually would benefit from it.
With prohibition officially in full effect, Schultz Trucking became a means through which liquor and beer could be smuggled from Canada. Dutch's employment there put him right in the middle of the criminal hub, setting up the trajectory of his life.
Leaving Schultz Trucking
It was only a matter of months before Dutch left Schultz Trucking due to an argument. Dutch was known for his huge temper and ruthless attitude, so it only makes sense that he stormed out of the building and into the arms of their competitors.
Around the time Dutch turned 19-years-old, he was already working as a bouncer at a speakeasy in the Bronx. This wasn't just any speakeasy, though. It was owned by the notorious gangster Joey Noe.
Making An Impression On The Gangsters
Dutch's ruthlessness wasn't lost on his new gangster boss. The young man proved himself when he handled a group of rival bootleggers. The ordeal impressed Joey Noe so much that he made Dutch a partner.
The pair began expanding their bootlegging business around the Bronx. Together, Dutch and Joey were even more of a force to be reckoned with, enabling them to stand up to those dominating the areas they wanted to expand into. As a result, Dutch started to gain wealth.
The Five Families And The Irish Mob
Dutch and Joey formed an operation that was large and threatening enough to stand up to the famous Five Families of the Mafia. Their increased dominance enabled Dutch and Joe to move into Manhattan, but there was a problem.
The Irish mob was already running bootlegging operations out of Manhattan, and they weren't too keen on the idea of sharing the business. Dutch prepared for the battle by buffing up their crew with armed thugs.
Losing His Partner
Dutch's world turned upside down when the leader of the Irish mob, Jack "Legs" Diamond, decided to retaliate. In 1928, after several years of running a successful bootlegging business, Joey Noe was shot at a speakeasy.
Though he was coherent enough to make it through the attack, Joey passed away shortly afterward due to infection. The infuriated Dutch had lost another man in his life, and he was out for revenge. As the new leader, Dutch ordered his men to fight back.
Diamond Survived An Attack
Two gunmen showed up to take down Jack "Legs" Diamond. Though they succeeded, they didn't expect that Jack would actually survive the attack. The mobster was wise enough to know he had to get out of town.
Jack headed to Europe, where he eventually was taken out by gunmen in Albany. In their leader's absence, the Irish mob backed away, surrendering their territory to Dutch's operation. The gangster was officially one of the biggest bosses in New York.
Trouble Within The Operation
Dutch wasn't just tough on enemies. He ran a tight ship with strict rules that weren't up for debate. One of these rules was that his men had fixed salaries, rather than getting a commission.
The payment arrangement was unique compared to other mobs, and that didn't sit well with one of Dutch's enforcers, Vincent Coll. Now that Dutch was without a partner, Vincent saw it as the perfect time to demand he be promoted.
Vincent Broke Off From The Pack
At this point, Dutch was right where he wanted to be and wasn't going to compromise his power for anyone. When he rejected Vincent as partner, the enforcer left the group in an angry rage.
He decided to start his own operation that inevitably when head to head with Dutch's men. Of course, Dutch ended up winning. With yet another rival out of the way, Dutch was able to hone in on his illegal business.
Raking In Millions Per Month
Dutch's bootlegging business was huge, especially with so much competition out of the way. The gangster was reportedly bringing in $20 million a year. Mind you, this was around the year 1930.
Accounting for inflation, that cash would have been closer to $310 million a year today! With so much money coming in so quickly, Dutch had to figure out what to do with it. The gangster had overcome so many obstacles that he seemed to know what he was doing.
A New Source Of Income
Though Dutch was making an absurd amount of money through bootlegging, it eventually came to an end. The 21st amendment went into effect in 1933, marking the end of prohibition. This meant that Dutch's operation was rendered useless.
He had made so much money at that point that the gangster could have easily walked away. Instead, he decided to go even deeper into his life of crime. The gangster rolled up his sleeves and found two new ways to make money.
Rigging The Lottery
Dutch Schultz had the connections to pull off rigging the Harlem numbers racket, a lottery that occurred daily in Belmont Park. With the help of a mathematician, Dutch was able to predict which numbers would win.
Dutch gained control of the racket and ensured that people didn't win as often as they could have. As a result, he walked away with a steady stream of income and participants had no idea they were being ripped off.
Extorting Restaurants
Dutch found another way to bring in more money by founding a fake restaurant employer association. He partnered up with a fellow New York gangster to make deals with local restaurant unions.
Dutch would then force the restaurant owners to join his association, or else they would receive backlash from the unions, including strikes and stink explosive attacks. Backed into a corner, the owners would join and have to pay dues that further increased Dutch's massive wealth.
Investigated For Tax Evasion
After more than a decade of building a criminal empire, things finally caught up with Dutch Schultz when he was investigated for tax evasion. The rebellious mastermind had yet another obstacle to face, but he wasn't going down without a fight.
His first trial ended in a hung jury, which is thought to be because Dutch bribed the jurors. The second time around, he came up with a more intricate plan to get out of conviction.
Pretending To Be The Nice Guy
Dutch managed to turn his rough and intimidating persona completely around before the court. He donated to charities and businesses to give the illusion of being a good citizen.
The scheme worked and he was acquitted. But despite what the courts said, the mayor wasn't buying it for a second. He ordered that Dutch be arrested if he ever returned to New York City, so the criminal relocated to Newark and continued his criminal deeds from there.
One Prosecutor Wouldn't Let It Go
Throughout Dutch's tax evasion trial, there was one powerful prosecutor who aggressively went after him. The man was Thomas Dewey, and his power infuriated Dutch. He wanted the lawyer gone, but even Dutch's men knew this was too risky.
Someone as powerful and well-known as Thomas Dewey couldn't just be taken out. It was a recipe for disaster, but Dutch wouldn't accept it. When his men tried to talk some sense into him, the gangster just threatened to do the deed himself.
Turned On By His Own Men
Dutch's men knew that if he went down, then they all could go down. The gang wouldn't let that happen, and they knew all the power had made Dutch impossible to reason with.
As a result, they came up with a plan. The group all congregated at Palace Chophouse to, supposedly, talk about Thomas Dewey. As soon as Dutch went to the bathroom, though, one of the men followed him in and shot him to death.
Where's The Money?
Before Dutch died, he had prepared for his tax investigation by hiding a huge chunk of his money. He buried hundreds of millions of dollars! Now that the man was gone, those remaining had to wonder where the cash went.
The one person who knew that answer was Dutch's bodyguard. The pair drove to Catskill, New York to bury a chest full of treasures. In true pirate-style, it included gold, diamonds, war bonds, and thousand-dollar bills.
$150 Million Somewhere Out There
Though the bodyguard was with Dutch at the time, no one has been able to recover the chest since they buried it. What's even wilder is that the items are worth an estimated $150 million today!
Reportedly, the bodyguard sketched a map to the treasure before he passed away, and gave it to gangster Martin Krompier. If that was the case, it could help to explain why no one has been able to find the buried chest.
Still Intriguing People
It's also possible that Dutch had liquidated the treasure prior to his death because he didn't trust his men. Despite this theory, many people are fascinated at the thought of such an enormous treasure just waiting out there to be dug up.
For almost a century, treasure hunters have searched the Catskills in search of the long-lost diamonds, gold, and $1,000 bills. Only time will tell if the famous fortune will ever be discovered and who the lucky finder might be.
