Dutch Schultz, a Prohibition-era gangster, allegedly buried up to $7 million in cash, diamonds, gold coins, and bonds near Phoenicia, New York, before his 1935 assassination at Newark’s Palace Chop House. You’ll find the treasure—estimated at $50-$150 million today—remains undiscovered despite decades of searches using ground-penetrating radar and metal detectors around Esopus Creek. His cryptic deathbed statements offered no clear location, though hunters continue exploring the rugged Catskill terrain where Schultz hastily concealed his waterproof iron chest to evade federal tax authorities. The full story reveals why this mystery endures.
Key Takeaways
- Dutch Schultz buried an estimated $7 million in cash, diamonds, gold coins, and bonds near Phoenicia, New York in 1933.
- The gangster concealed his fortune to avoid federal tax evasion charges before his assassination at Newark’s Palace Chop House in 1935.
- His cryptic dying words offered no clear clues, leaving the treasure’s exact location in the Catskill Mountains undiscovered for decades.
- Modern searchers use ground-penetrating radar and metal detectors to scan areas around Esopus Creek and former bootlegging hideouts.
- Despite advanced technology and numerous expeditions, no verified recovery of Schultz’s treasure has occurred, sustaining the enduring mystery.
The Gangster Behind the Legend
Born Arthur Simon Flegenheimer on August 6, 1902, in the Bronx, New York, Dutch Schultz emerged from the grinding poverty of immigrant life to become one of Prohibition-era America’s most feared gangsters.
After his father abandoned the family, you’ll find he turned to burglary and served prison time before adopting his notorious alias. Starting as a speakeasy bouncer, he partnered with Joey Noe to build a $2 million bootlegging empire.
His violent methods—kidnapping rivals, torturing saloon owners—defined brutal gang rivalries with Jack “Legs” Diamond and Vincent Coll. Beyond bootlegging, he conducted policy rackets throughout the Bronx and parts of Manhattan. He expanded his operations into Manhattan, moving his headquarters to the Upper West Side and sparking a devastating bootlegging war that would reshape New York’s criminal landscape.
What Was Hidden in the Treasure
According to eyewitness accounts from Schultz’s inner circle, the steel strongbox contained approximately $7 million in Depression-era wealth—a fortune that’d translate to $50-150 million today.
The treasure preservation strategy was methodical. You’ll find the contents included $4.5 million in flawless diamonds stored in Bull Durham tobacco sacks, $1 million in thousand-dollar bills, and $1 million in negotiable bonds—including uncashed World War I Liberty Bonds. Gold coins comprised the remaining balance.
Historical context reveals Schultz’s calculated approach: he’d initially planned gold bars but switched to diamonds for portability.
Eight confidants witnessed the packing at his Connecticut hideaway. Lawyer Dixie Davis and gunman Lulu Rosencrantz confirmed seeing the lockbox stuffed with currency, bonds, and precious metals.
The waterproof iron chest was sealed against rust—ensuring its contents survived underground indefinitely. Schultz maintained bank accounts in 18 or more institutions to keep his vast fortune concealed from revenue agents. His criminal empire was built on control over the Bronx’s illegal beer supply, which generated the immense wealth he ultimately chose to hide.
Why Schultz Buried His Fortune
When federal prosecutors indicted Dutch Schultz for tax evasion in 1933, the mobster faced an existential threat that’d strip him of everything he’d built. His $20 million annual criminal empire—from numbers rackets to loan sharking—generated cash he deliberately kept from banks to avoid government scrutiny.
Dutch Schultz’s $20 million empire faced annihilation when federal prosecutors weaponized tax law against his untraceable cash operations.
The Depression’s widespread institutional distrust made physical concealment logical, as citizens routinely hoarded valuables outside failing financial systems.
Schultz’s lawyer documented explicit statements about burying assets before authorities could seize them. Working with Bernard “Lulu” Rosenkrantz, he hastily transported his fortune to the Catskills, familiar territory from bootlegging days. The lockbox supposedly contained cash, bonds, and diamonds that represented the accumulated wealth of his criminal operations. He buried the strongbox near Phoenicia, NY, close to Esopus Creek where his bootlegging network had previously operated.
Though Schultz didn’t employ sophisticated cryptography techniques to encode location details, his rushed burial ironically created conditions for archaeological preservation. His 1935 assassination eliminated any recovery possibility, transforming criminal concealment into enduring mystery.
The Final Night at Palace Chop House
On the evening of October 23, 1935, Dutch Schultz and three associates settled into the back room of Newark’s Palace Chop House at 12 East Park Street—a half-block walk from their lodgings at the Robert Treat Hotel.
At approximately 10:30 p.m., Murder, Inc. hitmen Charles “The Bug” Workman and Emanuel “Mendy” Weiss entered the establishment where a dozen patrons occupied the bar area.
Historical rumors suggest Schultz’s trip to the men’s room saved him from immediate execution.
Workman found him there, firing a single .45 caliber shot that pierced multiple organs.
The crime scene expanded to the back dining room where Otto Berman died instantly, while Abe Landau and Lulu Rosenkrantz sustained fatal injuries.
The ninety-second assault concluded before Schultz collapsed outside the restroom, mortally wounded.
Schultz’s death followed his violation of mob code when he openly threatened prosecutor Thomas E Dewey, sealing his fate with underworld rivals.
Witnesses at the scene provided little help to investigators, leaving crucial details of the assassination obscured.
Decoding the Deathbed Ravings
The challenge you face: distinguishing intentional communication from morphine-induced rambling. Treasure hunters have interpreted “Mother is the best bet, and don’t let Satan draw you too fast” as location clues, conducting searches near Devil-named geographical features in Phoenicia.
Yet scholars argue these delusional confessions represent speculation—a dying man’s fevered mind producing stream-of-consciousness utterances rather than encoded treasure maps. A police stenographer meticulously documented Schultz’s fragmented speech during his final hours at the hospital, creating what became one of criminal history’s most enigmatic records.
Schultz died October 24, 1935, shortly after arrival following the shooting at Palace Chop House in Newark.
The New York Times confirmed: no useful information was obtained.
Where Treasure Hunters Search Today
You’ll find most treasure hunters concentrating their efforts in the Catskill Mountains, particularly around Phoenicia where Esopus Creek and Stony Clove Creek converge near historical bootlegging sites.
These searchers often target locations with ominous names like “Devil’s Tombstone” and “Devil’s Face,” believing Schultz’s feverish references to “devil” landmarks were genuine geographic clues rather than morphine-induced hallucinations.
Today’s hunters employ ground-penetrating radar, metal detectors, and sonar equipment—technology unavailable to the police and fortune seekers who first swarmed the area in 1935.
Catskill Mountains Primary Focus
When Dutch Schultz gasped “Phoenicia” among his final delirious words in 1935, he unwittingly transformed this quiet Catskills hamlet into treasure-hunting ground zero. You’ll find modern seekers still combing the same woods near Esopus Creek where Bernard Rosenkrantz allegedly buried that steel strongbox nearly a century ago.
Today’s searches concentrate on these documented areas:
- Esopus Creek banks where PBS documentaries deployed ground-penetrating radar
- Abandoned still sites matching 1930s bootlegging operations
- Former gang hideouts with bricked-up tunnels awaiting excavation
- Wooded areas within driving distance from Schultz’s known territory
The vastness of these mountain forests—now woven into local folklore and mountain legends—explains why $50-150 million remains unclaimed. You’re competing against terrain that’s swallowed countless searches, though that hasn’t stopped Phoenicia‘s population of determined metal detectorists.
Devil’s Landmarks Draw Seekers
Beyond Phoenicia’s waterways, treasure hunters gravitate toward locations bearing sinister nomenclature—sites where Schultz’s gang allegedly conducted operations under cover of local superstition. Harrison’s Hauck brewery tunnels attract investigators analyzing urban legends about cooling systems that remained sealed until 1951.
You’ll find researchers examining Yonkers’ tunnel networks connecting Schultz’s secret residence to taverns, where secret codes supposedly guided associates through underground passages.
The Fairfield subbasement theory draws attention to properties built in 1935 along Rosenkrantz’s riding paths. Deathbed statements fuel these searches—Schultz’s 24-hour rambling confession mentioned specific landmarks, triggering immediate police response.
His lawyer’s 1939 Collier’s account documented a steel box containing diamonds and gold coins, legitimizing treasure hunters’ continued excavations across Devil’s-themed sites throughout New York and Connecticut.
Modern Technology Search Methods
Modern treasure hunters armed with Ground Penetrating Radar scan the Catskill Mountains with equipment that would have astounded Schultz’s 1930s contemporaries. These technologies separate myth versus reality by providing documented evidence rather than relying on ancient techniques like dowsing rods.
Contemporary search methods include:
- GPR systems penetrating significant depths with 4-inch vertical resolution, detecting non-metallic containers
- Electrical Resistivity Tomography imaging subsurface cavities and soil disturbances tens of meters deep
- LiDAR mapping revealing ground anomalies beneath dense forest canopy across extensive areas
- Multi-frequency metal detectors (4-45 kHz) distinguishing valuable metals from trash with waterproof capabilities
You’ll find OKM 3D scanners creating detailed subsurface visualizations, while ROVs equipped with cameras explore previously inaccessible caves and crevices where Schultz might’ve concealed his fortune.
Decades of Failed Expeditions
Sullivan County historian John Conway documented the failures, noting most searchers were ill-equipped “city men” lacking proper hiking gear for serious excavation.
One enthusiast damaged Ulster and Delaware railroad tracks so extensively that officials forced cessation.
Despite various treasure map theories pointing toward Devil’s Face rock formation or Hudler Cemetery, no verifiable evidence has surfaced.
Could the Fortune Still Be Found
Could Dutch Schultz’s legendary treasure still lie hidden beneath the Catskills? Despite decades of failed expeditions, compelling evidence suggests you’re looking at a real possibility.
Historical context points to Schultz’s genuine desperation in 1935, when Dewey’s prosecution forced him to protect his fortune. His deathbed ramblings weren’t random—they referenced specific Phoenicia landmarks.
Schultz’s 1935 deathbed words weren’t delirious—they contained precise geographic clues pointing directly to Phoenicia’s hidden landmarks.
Modern treasure hunters have uncovered promising leads:
- Documentary evidence: “Secrets of the Dead” identified burial photos matching Stony Clove Creek locations
- Physical confirmation: Metal detectors located the abandoned still mentioned in stolen maps
- Expert analysis: Authors Conway and Terry independently verify Phoenicia connections
- Technological advances: Today’s radar penetrates deeper than 1930s searchers imagined
These legends of wealth persist because nobody’s conclusively proven the strongbox was recovered. You’re chasing $150 million that likely remains buried.
Frequently Asked Questions
Did Dutch Schultz Have Any Children or Heirs Who Searched for the Treasure?
You’d think cryptocurrency inheritance drama’s complex—Schultz left no documented heirs to claim his millions. Historical records confirm no children searched for his treasure. Modern treasure hunting remains dominated by unrelated enthusiasts, not family descendants seeking their supposed birthright.
What Happened to Schultz’s Lawyer Dixie Davis After His Death?
Davis rebuilt his life after Schultz’s death, cooperating with authorities and serving prison time. He moved west with Hope Dare, leaving behind treasure myths and historic crimes to raise two children before dying in 1969.
Has Modern Technology Like Ground-Penetrating Radar Been Used in Searches?
Like modern prospectors chasing old legends, you’ll find treasure hunters have deployed ground-penetrating radar and geophysical surveys across the Catskills. PBS documentaries show they’ve combined digital mapping with historical photographs, yet Schultz’s fortune remains elusive.
Who Inherits the Treasure Legally if It’s Ever Found?
The legal implications remain murky—you’d likely face competing claims from New York State, federal authorities, and landowners. Inheritance laws don’t clearly apply since Schultz’s heirs weren’t documented, and the treasure originated from illegal activities.
Are There Any Other Gangster Treasures From That Era Still Missing?
You’ll find gangster rumors swirl around Al Capone’s supposed $10 million vault and Bugsy Siegel’s Nevada cache. These treasure legends persist like smoke from Tommy guns, though most remain unverified folklore rather than documented fact worth your pursuit.
References
- https://www.untappedcities.com/gangster-dutch-schultz-treasure-hidden-upstate-new-york/
- https://www.livescience.com/dutch-schultz-treasure-prohibition.html
- https://hudsonvalleypost.com/upstate-new-york-may-be-home-to-mobsters-130-million-hidden-treasure/
- https://unsolved.com/gallery/dutch-schultz-treasure/
- https://www.visitmalone.com/blog/2015/06/search-lost-treasure-dutch-schultz
- https://en.wikipedia.org/wiki/Dutch_Schultz
- https://www.mentalfloss.com/history/mystery/dutch-schultz-treasure-mystery
- https://www.legendsofamerica.com/dutch-schultz/
- https://www.britannica.com/biography/Dutch-Schultz
- https://www.biography.com/crime/dutch-schultz
