Despite his youth and his contrition before the court, Cretzer was deemed incorrigible and sentenced to serve one year at the Preston Reformatory Industrial School in Ione, California. He was later released, having earned “good time” credits and then moved to Portland Oregon. There he soon committed another robbery and was caught and sent to serve ninety days in the Multnomah County Jail. It was here that he first met fellow inmates and future accomplices Arnold Thomas Kyle, Jack Croft, Dick Kane, and Mickey Lynch. After all of the inmates had been released, they met again in Seattle, Washington, and committed a series of robberies together; then all of the fugitives made their way to San Francisco. Cretzer returned to Oakland, where he was soon arrested on several counts of burglary and larceny and was again sentenced to serve out his time back at Preston, along with Kyle. Their time at Preston only seemed to bond the two even more closely.

Arnold Kyle

Kyle had also served time for committing several robberies in various communities throughout California before he met Joe Cretzer. Remarkably, Kyle and Cretzer had endured similar childhoods. Kyle too was born in Montana, his parents had separated when he was only three, and as a result he and his siblings had been raised by their grandparents. He moved in briefly with his father and stepmother, but because of family friction, he soon found himself boarded in a home for orphans at only eleven years of age. At fifteen he was convicted of petty larceny and placed in the Montana State Industrial School. Kyle would later marry Joe’s sister Thelma.

Joe Cretzer’s sister Thelma would marry Arnold Kyle, as did Kyle’s sister Edna who later married Joe.

Edna Kyle ... k.a. Kay Stone Wallace)

Cretzer was unexpectedly paroled almost at the same time as Kyle, and immediately upon their release, the two young men quickly returned to their criminal habits. On the run once again, the fugitives found shelter with Arnold’s younger sister Edna Kyle who was now living in Pittsburg, California. Edna was no stranger to organized crime circles and under her alias of Kay Stone Wallace she had made her own mark in the flesh trade. Edna and Joseph soon fell in love and they became inseparable. The two were ultimately married in Flagstaff, Arizona on April 17, 1930.

The trio then continued their illegal escapades, helping to operate Edna’s house of prostitution. For several years the business continued to thrive with little interference from the police. Then on June 23, 1936, the four outlaws violently robbed the American Trust Company in Oakland, making off with over five thousand dollars in cash. However, the robbery did not go off smoothly and during their exit they engaged in a fierce gun battle with a police officer. They then moved their base of operations to Los Angeles and ran a prostitution racket at the Garden View Hotel. During the years 1936-1937 they ran the Fern Hotel in San Pedro which proved to be another lucrative prostitution venture. When their accomplice Jack Croft accidentally shot himself during a robbery, they left him behind and headed back home to Northern California.

In January of 1938, things began to sour when a nineteen-year-old Montana farm girl named Jeanne Walters was arrested in a Berkeley hotel, and relayed a compellingly torrid tale of being abused in a white slave ring. Walters told police that she had been unwillingly sold as a prostitute and she named Kay Wallace as one of the gang leaders and as the owner of the Bruno Hotel where the illicit activities usually took place. The police subsequently exposed a statewide prostitution ring and it was discovered that Kay was one of the key players. Another woman also accused Kay, stating that she was only seventeen years old when Wallace had forced her into prostitution. The investigation further revealed that Cretzer had beaten the woman severely after she withheld some of her earnings. In an FBI Report dated February 24, 1940, it is stated that Cretzer beat her so severely that he knocked out several of her teeth and left her with numerous cuts and bruises. Law enforcement officials quickly intervened, shutting down the brothel and seizing the hotel assets. Kay jumped her ten-thousand-dollar bail, and the trio then began a bank-robbing spree that would take them from Southern California up into Seattle.

It was at about this time that Cretzer and Kyle teamed up with two other professional bank robbers, John Hetzer and Jim Courey, who were well known for their “quick style” robberies. Their method was to rush in, clear out a few cash drawers, and then rush out, usually spending no more than one or two minutes inside the bank. Although the individual returns from each bank were smaller, the volume of robberies and their successful evasion of law enforcement made for a very lucrative cash flow. It was estimated that the gang robbed nearly eighty banks, taking in almost $72,000 in only a few months.  The FBI began a comprehensive investigation of the heists and suspicion soon fell on Joe Cretzer.

The FBI intensified their search, and began a national campaign to bring Cretzer and Kyle to justice. Joe was said to enjoy his notorious high-ranking status as a Public Enemy. Joseph Cretzer was now ranked number four on the FBI’s Most Wanted List. He and Arnold decided to leave the Bay Area, since the FBI would likely be concentrating their search efforts throughout the Northwest. Jim Courey, unable to face the prospect of spending his life in prison, committed suicide in a Los Angeles hotel room when agents sought to arrest him.

In an effort to maintain a low profile, Cretzer and Kyle made a quick journey to Chicago, hoping that they could thus escape the watchful eye of the Bureau. Kyle stayed only a short while, then continued his travels back through Denver, Colorado, and on to Wichita, Kansas. He was finally apprehended on May 19, 1939 in Minneapolis, following another robbery. Kyle would not reveal the whereabouts of his other accomplices. While in Chicago, Joe and Edna had bought and operated another hotel, this time attempting to run a legitimate business. However, they had underestimated the magnitude of the FBI’s search effort and were apprehended in late August of 1939 and extradited back to Southern California to be tried for one of their earlier bank robberies in Pasadena. The FBI reported that Edna would stand charges for harboring a fugitive, and also that she was a suspect in the shooting of a police officer in Michigan City, Indiana, which had occurred earlier that year. She would eventually be sent to Terminal Island in Southern California, where Al Capone had briefly been incarcerated after leaving Alcatraz.

During the preparations for the trial the Federal government intervened, claiming that they held ultimate jurisdiction and would elect to try both Kyle and Cretzer in Washington State before addressing the charges in Southern California. The defendants’ cases also attracted a high level of media attention, with pertinent events regularly reported to the fascinated national public. Arnold Kyle and Joseph Cretzer were put on trial for the robbery of three Seattle banks and both were convicted on February 8, 1940. Both were given twenty-five-year sentences at McNeil Island, a Northwestern Federal Penitentiary located in Puget Sound, Washington. The official conviction report would declare them guilty in the case of “National Bank Robbery.”  Cretzer had already started to build his résumé for Alcatraz, when officials caught him with a handcuff key in his mouth, which he had fashioned from a belt buckle. It was noted that the key was almost an “exact duplicate” and “greater measures” would be needed to contain Cretzer in prison.