in New York City on April 5, 1929 for allegedly swindling $32,000 from a Massachusetts man, but was released two days later when it was shown he only resembled the actual culprit.

According to Arnstein, he "tried industriously" to find legitimate work during the 1930s. He said he tried advertising in Manhattan but failed, then moved to Los Angeles and tried an air conditioning business that struggled during the depression. Following the release of the 1939 film musical Rose of Washington Square