The Soapy Smith autopsy, Alaska, July 1898

From Wikipedia: 

Jefferson Randolph “Soapy” Smith II (November 2, 1860 – July 8, 1898) was a con artist, saloon and gambling house proprietor, gangster, and crime boss of the 19th-century Old West. His most famous scam, the prize package soap sell racket, presented him with the sobriquet of “Soapy”, which remained with him to his death.

Although he traveled and operated his confidence swindles all across the western United States, he is most famous for having a major hand in the organized criminal operations of Denver and Creede, Colorado, and Skagway, Alaska, from 1879 to 1898. In Denver, he ran several saloons, gambling halls, cigar stores, and auction houses that specialized in cheating their clientele. In Denver, Soapy began to make a name for himself across the country as a bad man. Denver is also where he entered into the arena of political fixing, where, for favors, he could sway the outcome of city, county, and state elections.

He used the same methods of operation when he settled in the towns of Creede and Skagway, opening businesses with the primary goal of gently robbing his customers, while making a name for himself. He died in spectacular fashion in the shootout on Juneau Wharf in Skagway.

Some time in the late 1870s or early 1880s, Smith began cheating crowds with a ploy the Denver newspapers dubbed “The prize soap racket”.

Smith would open his “tripe and keister” (display case on a tripod) on a busy street corner. Piling ordinary soap cakes onto the keister top, he began expounding on their wonders. As he spoke to the growing crowd of curious onlookers, he would pull out his wallet and begin wrapping paper money, ranging from one dollar up to one hundred dollars, around a select few of the bars. He then finished each bar by wrapping plain paper around it to hide the money.

He appeared to mix the money-wrapped packages in with wrapped bars containing no money, and then sold the soap to the crowd for one dollar a cake. A shill planted in the crowd would buy a bar, tear it open, and loudly proclaim that he had won some money, waving it around for all to see. This performance had the desired effect of enticing the sale of more packages. More often than not, victims bought several bars before the sale was completed. Midway through the sale, Smith would announce that the hundred-dollar bill yet remained in the pile, unpurchased. He then would auction off the remaining soap bars to the highest bidders.

Through manipulation and sleight-of-hand, he hid the cakes of soap wrapped with money and replaced them with packages holding no cash. The only money “won” went to shills, members of the gang planted in the crowd pretending to win, in order to increase sales.

On one occasion, Smith was arrested by policeman John Holland for running his soap-sell racket. While writing in the police log book, Holland had forgotten Smith’s first name and wrote “Soapy”. The sobriquet stuck, and he became known as “Soapy Smith” all across the western United States. He used this swindle for 20 years with great success. The soap sell, along with other scams, helped finance Soapy’s criminal operations by paying graft to police, judges, and politicians. He was able to build three major criminal empires: the first in Denver (1886–1895); the second in Creede, Colorado (1892); and the third in Skagway, Alaska (1897–1898).