...
When Lustig's mistress, Billy May, learned that he was betraying her for Shaw's young mistress, she decided to take revenge and placed an anonymous phone call to the federal authorities.[8]
On 10 May 1935, Lustig was arrested in New York and charged with counterfeiting. Although he openly admitted to his partners' involvement in the operation, he himself feigned ignorance in the matter.
However, Lustig's refusal to disclose information on a key found in his possession proved to be his undoing, as it was later found to open a locker in the
Times Square subway station containing $51,000 in counterfeit bills and the plates with which they had been printed.
[7]
The day before his trial, Lustig
managed to escape from the
Federal House of Detention in New York City by faking illness and using a specially made rope to climb out of the building, but he was recaptured 27 days later in
Pittsburgh.
Lustig pleaded guilty at his trial and was sentenced to fifteen years in prison on
Alcatraz Island,
California for his original charge, with a further five years for his prison escape.
On 9 March 1947, Lustig contracted
pneumonia and was pronounced dead two days later at the
Medical Center for Federal Prisoners in
Springfield,
Missouri.
On his death certificate his occupation was listed as apprentice salesman.