In November 1904, Chadwick received a $190,000 loan from Herbert B. Newton, a Brookline, Massachusetts banker. Newton was shocked when he learned of the other loans Chadwick had received, and called his loan in. Chadwick could not pay and the bank sued. At the time, she had accumulated debts over $1 million. It was also discovered that a number of securities being held for her in various banks were worthless. When Carnegie was later asked about her, he denied ever knowing her, and further stated he had not signed a promissory note in more than 30 years. Chadwick fled to New York, but was soon arrested at her apartment at the Hotel Breslin and taken back to Cleveland. When she was arrested, she was wearing a money belt containing over $100,000. Leroy Chadwick and his adult daughter hastily left Cleveland for a European tour when the scandal broke. He filed for divorce before leaving on the tour.