Bugsy Siegel Part 01

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Bugsy Siegel

Bugsy Siegel Part 01

114

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4%.-4.&#39; J?" &#39; _In the cou e&#39;of the above inrastigatio] we have ascertained
that §enja@in_"Bugs i Sieoel, notorious racketeer with underworld .connections on the west ana east coasts and Las Vegas, Nevada, will e
again visit the latter city within the next few days and resie at the
Last Frontier Hotel there in Suite hOl. As previously pointed out, we
are desirous of following Siege1&#39;s&#39;widespread activities and, tereforeg
are requesting authority to place_a technical-surveillance on his tele-
phone at "-the Last -Frontier Hotel wliioh &#39;i&#39;ivi1Ig,-bolas Vegas 1BO05==§-"-o;- - &#39;
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F   at tie; time,""I aise wm1Tto&#39; -pain: out Qthat §iege1,}hscsluse
of his far-flxmg interests, is almost in constant travel sta&#39;tus&#39;,"&#39;there-
by making it extremely difficult at times to follow his activities lands &#39;
anticipate his m0vepont§,"dlt_1§ recommended;1therefore,Lth§t_§uthority;
be granted to cover any hotels, residences, or places of business which
might be used by Sieoel in his journeys throughout the country. Ifufei/Jestrongly feel that this type of coverage is necessary if we are to
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John Edgar Hoover
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,,@3irect0r, FBI ,
Q .E REACTIVITION or TI-IE c.u=o1@E emu_ _ r. 1 e.| &#39; &#39;W 2 S YI -
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ieletype -to the Bureau and the Chioago_0££ice the tine, date eI&#39;instel1aticn,- &#39;
symbol number, and plant location oI- the technical surveillance; - - . .
L The authdrity received frcni the lttoi&#39;ney&#39;General for the installatibnf
* ei technical survelances in this case, because Siegel e in alzeest constant
travel status, -extends to any hotel,-residence or place ofjusiness which might d
however, in connection with any xture technical surveillances Ihich offices .
Lgeceiving izbpies of this -letter may Heqire to install on Sicgel, to obtain /=~___, _- l
_&#39;io&#39;r Qureau v§§1§1&#39;10_1,&#39;_Zi_.ty"th$80fO;&#39;,-"baSsd_ _&#39;?pon éaseuranqps pi ,§!&#39;u.L1 ;_Q&#39;_c1_.1ri-tyi .f01"_ .,f&#39;__%__ .s&#39;§ich i1"$tallatin,- km U _. . .:».:"._ hf, c_,-_hMf,. -_ »_92iPM;&#39;__,- _ _e.92,_,-&#39;-ii, J ._  AL
&#39;-The Salt Lake City and Iios lngeles Offices, in addition to obtaining &#39; &#39;
&#39; Bureau authority fora anyjurther technical, §u1&#39;ve.il1ances_ ghichzgay be desired tn
Siegel, should keep the Chicago Office as the office of originteurrently advised
_ with regard to installations both contemplated and put into operation. _
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J O umou com6&#39; wm-¢1r= BHIJAIIII Inuosl smcm. m»11&#39;°" i _/K Information Concerning BE?-En. 5
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theDirector m-mama nu H10 1m 1» broadcast July 11., 1  elest Gout racketcerh inf-erect in ¢ hotel. 354301 retcrred to the Director
in e moat degnding and insulting manner and claimed he would have nchell
bring the Director to nu so can Sicgcl could lake the Director disclose hie
source of inhrmetion.
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Special Lgmt in Charge Iceman OI the sat Leke City nan Division blat 1:00 ¢.n., July 21, 194 -  - -- call; Inrniahed the folloeihg information !9which in obteined tron » techni telhtio over -- . 1=--
b  &#39; 
Lu Vegas. . &#39;
the its need on hie
in e Int Coast hote1.I V
. -  e couree at hie coniaeetlon Iii-h Siege}. relative te
]:_ett_er, referred to the mrector by hie lest nene, hie initial:muscle e prominent Inst Gout publisher out of hie
first nueIW&#39;I.a initial and rst name, according to Ir; Iceman.!
In thin letter, I.i.ncheZIJ. explained that theIn 10/C
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_ "Bugs" Siegel, after hearing um, uteri  Ea swearing. A X,He, however, npperentl laced mu credence upon t to therecei_pt_ o _n_ Lg; ___e Z_ J4 s c9_nis_ee he E? E§ov;.81~s5T&#39;=I==> =P29"=@;2J.>.1;aaeeE.5Ea"....?*??Z_£..i__ " c
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A short tine lets siege; returned to hie snnte et the Lent Irontier
Hotel, which he is occupying with his stress, Vir ng mi einformation was obtained from the microphone installation covering this suite.
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Siege]. and Virginie Hiliengaged in n conversation in uhich both used
-. _ _ - . ted
eprofanity 31-egei ste
£1-on Len out th
Ielrned that emis-
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to the information he received iron his phone cell
e City Division has no intonation concerning
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Sieg stated that he was oin to New York to have Iinchell getho d of the Director en"d"l5!l&#39;I5&#39;g tie ecgor to EI&#39;i&#39;l&#39;SI""eg"eI]. HeI§HH"g"&#39;to
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T0 : LII. TALK DAT : Jul; 19, 19 6
patent! umu: = A. ROSEN mu
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&#39;_1s an underworld onaracter in Long Beach, Cahfornla, 70
and information in the Los Lngeles Crzune Survey reflects that he nas
connections with eastern hoodlums and has operated night clubs in tne Long
Beach area.  A - _
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ACTION B&#39;:Z"G TAKE}!
- The Salt_  Ghiago Division d the Los An ales Dlvisl have been }
"lporised_oI the lbregolng information by the alt Lake Iniislon.
Lake and Les Angeles D1V1S1DnS are belng requested by
teletype to be on tne alert to develo an oncernlng tee abov
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, TO: E. 1. mm mm July 12, 19he 
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._= T The Los lngeles Division edv1eee.tnet_ oonridentisib
5 interment in their inveetiggtion oonoeming the reported interest or reolneteere
» .e in the purchase of hotels, nee been reoonteoted relative to information he
_n1ehed oonoerning the presence or Luoieno in Ie:I:1oo.&#39;-» __  _-- _  y_  Pg;
:-7;,I&#39;f;--~>&#39;*BO0T§l1!V1g-§;,.LlZlQ1lnO ~a11e"ei1_.|.y p 1-anon in Iexioo 1 t£n_-&#39;Ier1uery_o1j_Ieoruery 191:6 at the poe oI&#39;§1®, -miiems this _92__.   is lpoated near the lexicon border in the I-1-oinity o _ Geliionaiejlinel
-  -however, lie does not -know its exact Ioqation. He further. s V ow that itt is not located in Tie Juana. .It is interesting to note tha informs
___ ______W__that _Iuoi.eno&#39;s ranch was purchased for him by_§e:1jemin Bug ego while = &#39;1,u¢1m°i,;g 55111 "§n"11;-1-,1;-, ~ --~  -~- ~ -~ 7 - ----  A-._.- ..r..s-i_92_i_.-_
ICTICII BEING TAKE? &#39;
"  " &#39; -lhe infonnent is attempting to develop further informatioh along these
_ lines and you I111 he advised promptly of my pertinent information developed.
&#39;3.  .. t-._,3" "1{he,&#39;Los -iigele i ionis heingfequested by teletype to tollqw 7
-?_ this&#39; letter closely with and further, to_._keep the Salt Lake City D1?-_*~ ,,/ ision edvieed of :11 due opn _ 1;r-nu of that orrmeu i.Eterest 151 the -57¢,"-"&#39;" V ..-.a-1...:-0.4.-.. -0 g&#39;n...--I__Qe-..-.1 4.-A 54- ---A....4-.&-- "~- &#39;»- . -_ &#39;"- iuuJ.v;q.|.ua [IL nu-L55; ninulgcu. Iuu nun Iparunneive -_;&#39;  -  ;.-_-.,  .. 
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T° = U. I» 1. tan DATE: July 21,
?¥°" = In-. A. loan  - Tnlophono 0111: 12:30 p.n.
&#39; &#39;7-21-46
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ingeies Field iision are very closeI
Hood of the Les _ bl!?
Siegei stated that he can"t P1"understand why the Bureau is checking on hin as he has not committed any
violations in which the Bureau would be interested. indie t t J. - -<1 0 e-oithat if the Bureau investigates him they my dig up some income tax viola-tion or other crime causing considerable trouble. _
Siegel stated further that it the Bureau w t t ng him, 5
Special Lgent in C Hood will obably mention it and heSiegel, will 1mn  such investigation L Gnade.
sition to S1 e1
had heard
in the Senatorial race.ani was ssue __ -
to force him out or the city.
he, Siegel, was going to support
LCTIOH BEING TAKEN: 
Special Agent in Charge Newman has te1ephonicell !Agent in Charge Hood of Siege1&#39;e claim  Mp i- ,and of his knowledge oi Hood&#39;s oontaete so ¬EI¬&#39;IFT&#39;HWT {
have the benetit or this into:-nation. ec en Charge Newman has been;instructed not to I eviouely -»-W  W
other rield Divieion ___ -o e..__ % -c ...e ..... .__ en... o-....ide.-ztiai
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OFFIGE IHIDRLNDUI  UIITED STATES OOVEHHEQT &#39; &#39;
. Ito 1 Director, re: mm-= July 25, 19146 &#39;
I A V -IRCII 8 SAC, Ins lnglea &#39;  Hug .- AUIE3
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tetes that about one and one-half years ago BENJAMIN -
"Bugs?" Q i:JG_.?-L made the statement to certain individuals whose identity the -xi
infcrinant does not remember to the effect that ne BEN! e .&#39;IIlB business six months -tter the gear was over cad "that "b7é.*5"; ;< &#39;
&#39;  i- I. J 92 - -. . . "-1 T~ ."&#39; It hes been anticipated tnat tne new eyzdicate being set up in &#39;3. -ex "A!oq>et&#39;:Lt:i;cn  tne§RLGE.N interacts niglt precipitate e rate III fend itj could?  _< -_4 w be tnat._th1|&#39;1e the opening gun in this 0all|p8&#39;1g_n_¢_ Aicwever, _t_ne new syndicate Q
&#39; Ihich as has been pointed cut has ll-ready rented ctrice space in the Ferguson
&#39; Btlilding in Zoe lngeles intends putting out e scratch sheet 01&#39; its own andhas been looking ercund tclm for enlradividuel to edit this. e
&#39; D6!.-  o1nted cut 3tnat 1:. this 1e true the temstsIre not nee e 1_.n Iith tne new eync:Lcate,&#39;but as has po ted out * essa
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a statement to individuals
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to locate an editor
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new racing wire groupoifices Q the !&#39;e_r2u_soh Bu_iJ.1!_in.g in L-as Angelo:
eet oi their om and have been looking around
out that ii the latter report is true, it
interests are not necessarily tied in with the ;The Los Lngelea Division further advises that the representatives o_i&#39; the929292
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requested to check out this information.
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A In discussing further. the local racing wire lituatiomq pointed
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IUIJBCT 828.11!!! GB" IIKEI.
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/ an-. Gltholthofi further advised that the T?1 &#39;a__; _.- /i
h O C6 Memom UNITED smrns GOVERNMENT i mi I
T0 = IR.  b7o ; DA&#39;i&#39;B: 1133*"? 8: 1-#46
FROM - , j , A
Slew -i_ &#39;
OI Ysunset: BENJDIIN SIEBL, Call Received: 111501»!-§§§;§§T=l"l.__IISCELLLNEOUS IHFORULTIOII COIICEBJIINB . §;
On august s, 1946, Supervisor A. s. Ostholtho of the Los §:  1Lngeles Division advised that the Loe Angeles Office has just received   §&#39;,;;;;_,1&#39;qT_§i
information to the effect that a "stop order" has been issued against _ E,:};J;,2-
Siegel and his associates in connection with the construction of the I 51322-35?-
Flamingo Hotel at Lea Vegas, Nevada by the Civilian PFe?:&#39;Et&#39;I6&#39;E Adninis--
tration, dated August &#39;7, 1946. P"
Ir. Utholthoft stated that he wished to aivise the Bureau of the ék = -.
issuance or this order if it were not already known and also wished to be intorasd
whether it would have aw effect upon the instructions which he received tron the 3
Bureau yesterday, august 7, 1946, which authorised the initiation oi immediate and f
appropriate investigati into all aspects of reported irregularities dealing withthe construction or ws gL[wdk 92
rt.the Los as Diwiaionconcerning bribery
cart?o else orn . He saidinformation tron an individual by the name was described as
head oi the Investigative Division or the Administration in Q
L08 who . _ , l
It is also of interest to note that on August 5-, 1946, the C-lark County .commissioners at Las Vegas, Nevada tear dig? the application or Siegel i
and his associates for a g at the Flamingo ote . &#39; ,
result of this denial, it ns determined that Siegel, accompanied hyone of the principal investors in the lllaningo Hotel, had decided to appear per- bsonally before the County Colsissionere at Les Vegas with regard to the denial oi 2"the sane. Infornants in Los Lngelee Las Vegas have advised, however, that {
this is on]; a temporary denial and th t these licensee will be granted to S
an! hie associates at a later date.

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. Ina Vegas, Nevada to toleppom Druael 7011, Loa Angola, California.- Ihring tne course of tne oonverntion BIEGEL asked LIHSKY whether "that &#39; $5 ,1;-_14nd" ,3: $91;-a was still Loa Angelou. SIEGEL later identified0-
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 cornwuxcanoms SECTION
TELEITPE ,
1 _, ..&#39;-yd FBI sw LOUIS B-¢>-he -_, E _. -
HT-_ _- . _     _,_ -.,_._,_ 1., 92 T   __ . ..._-.__,, 15;, 1p?gR;.&#39;,,u10 NED » f&#39;...,92i-,-&#39;.""?&#39;&#39;F?";&#39;="~""&#39; ~ &#39;- &#39;- &#39;. "&#39;~  w&#39;F r% 3"? &#39; &#39;""_=»"_ 5   -  &#39; }&#39; l 7 It L V I " I_   _ . ,,.-- $ -15531; .. SQIED .  T         7 TJ .-&#39;~.-Cg- 7* ._: - T &#39;-,&#39;-.j &#39;5 -;"&#39; ~_..Q-&#39;~.~=-;*".:.r if?
&#39;.&#39;.?_-  . _   _|   vi.   T 4 ?;:;&#39;:{__"f___,,;:.,%r-&#39;= =92-&#39;:=T¥b#1Q192-  ";&#39;£111&#39;!~*a1x&#39;mou,pna"1nezLm 1&#39;0. liac-ran um  I__ . . ._ 92 > ,92 I _ _- - ~- __&#39; _
BAGS ST. LGUIS MID GHICAGO, ATTENTION 153T. DIRECTOR E. J. C{]92I1923EI.LE&#39;I.
j mm ms pmc; won mu uaquo&#39;rE_4_:oz!mcx mam
.,___T0 AS nmrI_g:o1.mmx _1H_§EFH1BIO§&#39;. mums mg» n:_,L&#39;=~,n _"ssvm~m:,
  m,:Ts:r.;;1.ag1s s&#39;:fu1:m~icu_;v Ass_A1uN&#39;rsns1:m  emf;  1
mzom ms BEEN mvmcm tum us nzsurr or ms museum; ACTIVITIES A
IN GIMBHNG IND OTHER RLCKEPS IN EAST ST. I.EIIIS,&#39;III.IN-DIS  l&#39; luv 1.5
1 ILLINOIS. COL%EX3K WAS A LEADER IN OLD EGAN COIEBEIIK GANG LCTIVE HERE
 j IN mm wmms. --comsmcx mu mmw smmma
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Mama Icifln 11: imscmm in on mmzrlc IR  ILLIRQIS.  
SPRINGFIELD IND KANSAS CITY OFFICE HAVE BEEN BEQUIGTE1!  SUPPLY LN!
LVAILABLE IIIFCRIIATION RE PERSCNS IENTIGIED IN REFERENCE 1&#39;ELEI&#39;IPE.
&#39;- .,   &#39;  ems -  ""  --  .-&#39;,f&#39;f&#39; ,;:_ &#39; QT T "      .  Q: . .4 . * -
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-!F . - e 5&#39;-11 . _ .~ &#39;1  A  to the rivilian Prod tion Adminie tretiond in or er to,obtai1q.- the permit   -"-i_4
9292
I&#39;_~ Dear 811&#39;;92-.
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, 92_ _| I I &#39; _ _-.I-&#39;._ 1} &#39; l  &#39; ,&#39;92
&#39; I I I &#39; :-
Ieheral Bureau of Investigation
Initrh itatre Bvpartment of Justice I - -
 Lon Lngelee 13, California I "" "C} July 31, 1956 -
"fen-
~ _ 1  -5;;
ionILtent
BIBQEL
:1-sch"-..1.:-.-.mous; znrom canm summr b |
JA _ Jo
.- - ieferenoe is made to my letter of J &#39; L "&#39; wife aeta out
eertain confidential information received 1&#39;   at_ by
I I DC "1 Q, I . Lon }ng&#39;ele92s eonoeming rwnore gbo the effect tin _ =1 IE1-BIL =  &#39;*_e-;,_
aaagoia tea" in the oonat;-notion of the Fla|a§,n;o:H6_te_l parid a bribe in order-5;to Deon:-e,-aivilian Produotionjchninistrntioii authority to pr_9beed&#39;Ii&#39;th thy" ~..eunatruotion of the Flamingo Hotel in Lae Ve&#39;gai&#39;. &#39; e --_"§*-*?-e_ ej f_j 1""&#39;.,.- . ..<92 _
,-,.__ _,e_._g,e__-__j.1o_ng the aame line, "1 an transmitting l_1er_q|rith_the_ front page 4_l__".
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.-Q5;-I:.-§  .1 7  in Open   ughqla H. sieihh ihw the .houz?§§Qne;H>r ta-1&#39;5
L  §{£u%1mg4_ 1», -+--- L   -<,.,£-1!! "a e""|5»/§nh¬r01&#39;/>h Inc»Wis the us VEGAS rrmamm, dated August 1, 19146, which Ontinl 1 front-page
L/3., leditorlel eriticizing the eonetruetion of this gmbling oeeino at e time
when materials are badly needed by veterans for the oonatruotion of homes.
lt would appear thatla this point pro have jur_iedi,o_t_i_on___tg _in_vee;ti5at_e_______the oonatruotion of thexlamingo Hotel in oonneotionaith the bribery
investigation oonoerni the 0.?-A. Official at Reno, Nevada. It would
i._1i6 appear that it ionld hate jiarisdietion on the thaoty of FF!-ii ngainste Government ainoet was probably necessary  furnish filae in.fonnat§on_w
"-toprooeed Iith .oonatruotion of-the Flamingo-Hotel. Ihile "I do not have
available here the legislation creating the Civilian Production Adminiatrv
tion and the rules and regulations promulgated by that organization,
generally, from information carried in the preu the C-Pm. -na organized
 in order to channel building oomt:-action into homes rather aan eomneroial &#39;-
enterpriaea. Also, I an not aware thether the C-P.A. haa an investigative 
etett or !he1=..b.er violations or the !&#39;92_l_1!! are within  l_!92.n-eawa j1n&#39;iadint1on._
Certainly, it would appear that rurniehing talee information to thia agency1:1 be olllrxjuriadiotion uwthe Fraud Agai-net the Governrpentfltatuteea "§gf&#39;-5e &#39;1: toque <1 that the Burea mm thlodgh melmpammht at &#39; 1_,,.. -.,.1&#39; &#39;
L;-Q h,-E; f;f§*&#39;:1!""&#39; ,  . . " Y. h,..,;.&#39;-. E ..  I u I &#39; r-}_;_Li&#39;__
amingo Hotel would  net mpmgel at thia tine. 1|&#39;ira&#39;t or -all,
DE3TR-OYED wa- &#39;|bm.x.||-LI} - 92
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- Feffect bi stopping construction of the Flamingo Hotel which could cono&#39;
about and his associates. In this eonnectio
tated that BIEGEL and his associates are
e or oward _ e completion of ne gambling casinos in the amingo-{ Hotel in order that they alight he in operation this fall. &#39;I"ne_:i.nformant
--has sited that once this casino is completed "there will be nostopping
 _ p3IBGEL" because ne casinos will be good tor a a year income.
:&#39;__f.:T~,__  _  . -;, e._,;*~1-~"&#39;§?_1, F V. Ar.;;"_1 7  ;5__  sub&#39;§ftant1al:icnof the thecrytha "eonstruqiziczi
92._ . . .
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&#39; of ie !laini_ngoA_Hote1 iimld tee on Jul
 -$0, 1916 BIEGE1. had a ccnvsrsa in
. that as of today they have $1,].
loan and the Cortes Hotel is also going to make them a_ $00,000
loan on the Flamingo Hotel. mic would indioe._te_3:ha_t $,IEgE1_,_5nd his _ _ __
&#39;_ associates lave already put up all of their available cash. An investiga-
&#39;t1on of this tter under the Fraud igaiet the Government Statute would
x -permit us to examine zgitnesses under oath. Jtqould also&#39;give us an
back all" of the Qoncy invested in the Ileniingo Hotel, illioh should, in t
reveal a violation of the Income Tax Lass. Independently oi our special
investigation oi 8IEGEL&#39;s activities in general, it could appear that
the article in the LAB VEGAS TRIBUNE is of such a nature that it mightraring about a public demand for an investigation either by the F,B,1.ahoufexaciily how much $IEGEL has invested in-Hills and it could possibly 1&#39;-92
 Y
which he stated
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-&#39;-goes-11: c9nspiri¥y&#39;1!_&#39;tet1.1te= Eecondly, s»;-eh in in-."§sti,g:tic= .&#39;-sight .2-is the &#39; .
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aoppcrtzmity, lirpugh d&#39;e_tai1ed_&#39;exami&#39;ns.tion§§t booie &#39;and."reccrda, to trace Kt
or sons other Qcverment _e_gen.cy= 1!-2 open mvestigctior. sill be uz-.dcrt:kcn A
&#39;p sucstantzate the 1nrcrna_t1o t the- "cf the flamingo Hotel had go no y p er n realatakes
 3  jthe groundlrhen the trodes order regulating al1_"&#39;acsnercia1&#39; "l>&#39;ui1din§&#39;*
c under Civilian Production Administration came into affect. ---= -l~--rnetruoticn
bait; drive
Very truly yours, "
cm. ! ¬i.C<:s&#39;-1:101. mow ¢
228$ A
AEASD
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1.1:
92-1! mi_ _ _ __ .- concerning the Iiamingootel until advice is received from the Bureau,
1» -" Us will snake a preliminary check into public records atlasiegls to ."Y-*&#39;ef§&#39;-i-.§ _» h»
-  ascertain theda&#39;te_ that construction &#39;||es&#39;s_tarted_oti le Flamingo Intel  Q -&#39;at  and -yuan cum intoncation - -  aqua in an error: to
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LI _ . %os;s<:r= Bm&#39;Jm:m &#39;w@I"  " ~_ 1 /kg I" / &#39;5-rnlcav All &#39; "1&#39;92. _ L , - Q!&#39; Cful  - UNITED sures GOVERNMENT
. &#39; HISCELIANHJUS - INFUEIATION OONCBEHUING .
Los lngeles Division, advised tha-Los Angeles is very friendly towards the 5
u a on shes confidential information. On July30, 19:.s, sav1ss<1 the Agents that he had obtained information
from a hi 3&#39; co dential source, Ihose identity he did not reveal,
that the construction oi the Elaningo Hotel bad not progressed much
farther than having the stakes driven in vrhm the Civilian Production
administration issued the "freeze order" on the construction of buildings
of, this type.
Ilson
A. Pam 
- 1.e?_______or ey. Glavin &#39;
. Laid. Nichols. Roeen
. Tracy. Earson. gan_______i_. I-lemon. ?snnin%$n. Quinn umTels. RoomIr. HesseIllss Bsahm
lies Dandy
J2»
stated that construction on the amingo Hotel s 1;a:g-ssa;a as I; e:;.e s_l:";
arranged o vs ,
 - --&#39;- e o enatorPa Carran econs eFJ.ami - . &#39; : : . . - V - 0 ngoHotel  p is &#39;- - con ue. -&#39;1 &#39;1 "TtlToH s-bed wB catM AI
funds made available to Senet I Ca i tn or n e nature of a beprobably originating tram Siege1. ae indicated that the officialin charge oi the  _g o éivilian Production ldministration
at _Beno, Nevada was invo v n deal and the ré&#39;¢&#39;=6&#39;iTm&#39;?a&#39;i"-"the  were falsied to mew that the construction was farther
along than it actually Ias. ms enabling the CPA to authorise the completion
of the construction. "
NHSPIPE PUBLICITY: an editorial in the Las Vegas Tribune, a weekly news-
paper, prominently placed on the rst page of the issue dated August 1, 1946,
ccmplains oi the tact that the Federal authorities are pernitug the con-_
struction or the amingo Hotel Ihile the veterans are homeless due to a 1&#39;-
ehortage or building materials. The editorial cements on the fact that
t is ditficult prevent nan or great nancial means, such as amin"=1 Ewiw   ".i;."~ @&#39;¢?:&#39;g:&#39;:../..?.-; 1% 3
rnnmcm. DIFFICUI-TIE or srson. LSSOCIITE: ER:-ms roe ed Iron
the technical surveillances was to the eftect that Bm:|aninSie claimshe and his associates have apent $1,162,500.00 to date sn the  Hotel
and that Siegel is at the present tine in rather straitaiednancial circumstances. &#39;
OQOI It. $0 pI&#39;OIOI.1|t HHS 18 @116! 1- 1&#39; - :1 - - .1 &#39; 1 -.|~~ -.-2! .1 92&#39;1&#39; &#39;1&#39;w obtain a $500,000 loan He s &#39; :I.so m eavoring to obtain a $600, identity _  J
&#39; ct which is being determined as it is knon that Siegel previous]; borrowed _, I
$350,000 Ironthe same ssspsnt1sssssqqn1sr- loenin
92 construction of another hotel. &#39;~
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LCTIO-H TO BE TLKEI: Ir. Oatholthofi points out that the Bureau now hasallegations of both a Bribery and a Fraud Against the Government and ii {
considered advisable would be in s. position to make open inquiries in
connection with the construction or the Flamingo Hotel, A discreet &#39;
preliminary check is presently being made to determine the date the CPL
"freeze order" was issued and the extent to which the construction or the
F.L8m.Lng0 Hotel had progressed on that date.
B81
gated on the basis oi the editorial in s Vegas Tribune and statenmts v
under oath could be obtained from all pers ns interviewed. &#39;.lhe initiation
or the investigation night result in stoppage of construction on the Planing
Hotel and the resultant financial -embarrassment to Siegel and associates
might bring their activities out into the open. Hie allegation of a bribe
payment to Senator Pit llcarran is rather nebulous. Informtion concerning
same could be developed incidental to the Fraud Against the Government
investigation, in connection with this investigation aw oi the individuals
who would be interviewed under oath unquestionably are not involved with 1OBSERVATION: Rae Fraud A net the Gov K violation could be investi-
the racketeers and there is a possibility some information oi value concerning
the operations of Siegel and his associates might be obtained. Ii such
investigation is authorized the desirability oi suggesting to the Department
the assignment of a Special assistant should be given consideration it being
anticipated that it will be necessary to issue subpoenaes for the examination
of books and records in some instances and the- potential witnesses may have
local political connections and ai&#39;iiliations,
IEGDIIJDATION: It is recommended that the initiation oi Fraud Against the
Government investigation in connection with the constmction or the amingoHotel be given Iavorsblmconsideration, _
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/&#39; EEDERAL BUREAU OF INVESTIGATIONUNITED STATES DEPARTMENT OF JUSTICE J---- -- W1 ,
71?: _COMMUNICATIONS SECTION. H- E 92
f_J_&#39;Ira.nam¥t the f??.%o:v;i_ng6;neaae:.§e &: A8008! ?, 1948é 2-  I if J -7 1 -:> --q~+&#39;9292l CENT &#39;6
JPICIIL 16111 II CHARGE
L08 AIGSI-IS CALIFORIIA 4",-I m&#39;|&#39;1:§0¥[ 4| I; Qg1L&#39;179LZ§Q£l
BIVJJIII SISGI-In IISCII-allli IOU JR] AUIPHORIZID INITIATI
Il-IDIA2"I APPROPRIATE IIFZSTIGATFOJ IITO ALL ASPECTS 0!
REPORTED IRREGUI-ARITII8 DIALIUO -~?1&#39;l&#39;I COISTRUUTIUI 0? FLJFIFQU
HOTEL AI L18 VISAS IHCLUBIHG APPAREJYT ALLEGED IRBEGULARITIB9
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IPJQHIRIES RELATIHO T0 THE ALLEGED P. .*:T.-"¬..&#39;PA-&#39;I3I0l&#39; 0: SE-.=&#39;ATQR
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llcCA.BRJI OR OTHER PROIIIHLU-Y1 PEOPLE UEOULD M-7££4EDL£&#39;l5 OH
P" ., .4 nrscrerar euszs Ix owns mar to mmozz trig: &#39;:;rnc.§z4 rm
zmr rzas 5:22.45! rs zgrzzsrzauzya 2-as ¢s;v.4:ra.age
OUTICIAIS UNTIL BUG] TIHI 18 DIFIIITI IWTORVATIOI HAS FEE!
RECEIVED IHDICIITIO SW]-&#39; PGSSIALI IR_£LgULARI1"1&#39; OI THEE
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FEDERAL BUREAU or INVESTIGATION
FUIPA DELETED PAGE INFORMATION SHEET
Page s! withheld entirely at this location in the le. One or more of the following statements, where
indicated, explain this deletion.
Deleted under exemption s! s J pc  with no segregable
material available for release to you.
Information pertained only to a third party with no reference to you or the subject of your request.
Information pertained only to a third party. Your name is listed in the title only.
Documents originated with another Government agency ies!. These documents were referred to that
agencyiiesl fer review and direct response to you.
Pages contain information furnished by another Government agencyes!. You will be advised by the FBI as
to the releasability of this information following our consultation with the other agency ies!.
Pagelsl withheld for the following reason s!:
For your infonnation: D r__ , _ _____ _y___  _ y_
The following number is to be used for reference regarding these pages:_62~» S/->"/fr ///7» 2&6   __ _
XXHXX 
DELETED PAGE S!
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