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4 Ofc Memorandum - UNITED STATES GOVERNMEN TO : MR. oat * ‘DATE: August 12, 1946 FROM : a Call: 12:05 p.m. “SUPJECT: BENJAMIN’ "BUGS" STEGEL - SCELLANEOUS INFORMATION CONCERNING CRIME SURVEY ASAC Ostholthoff, on special assignment in Los Angeles, telephonically contacted the Bureau with reference to information furn by the San Francisco in communication with CPs atan awa faeneaA wana ae the —_—m Th oruer araing tne Fiaiungo HOVEL at Las vega feu get ~ It appears that reference is made coma <n fore whom a hearing is to be held regarding the Flamingo 86 ugust 13, at San Francisco. San Francisco has indicated the possibilities of |. developing a bribery violatio: 5 case and Ostholthoff inquired whether the b Bureau had any i on on He was advised that the Bureau had not even been informed o irst name date. Ostholthoff then suggested that the most desirable procedure was to instruct San Francisco to ascertain in a highly elbiinas manner background information on the reputation, character, etc. of Tf San Francisco checked this matter out and found him to be a high clasa, ai3 e individual then consideration should be given by San Francisco to approaching him in order that sufficient information might be furnished in order to develop a bribery case in this connection. Os 8 advised that the Bureau had no objection to checking the backgro and he indicated that he would immediately communicate h with San Francisco relative to this matter. It was also mentioned to Ostholthoff in connection with Siegel's contemplated trip to San Francisco that appropriate arrangements. should be made to thoroughly cover Siegel's activities while in San Francisco, it being noted that blanket coverage had previously been authorized regarding Siegel's activities. RECOMMENDA TION Lo None. San Francisco and Los Angeles have been instructed to keep the oh. — Bureau advised of every development in this matter. ‘ ee |62- wee: gr ae 7 AUG 14 ig46 a care eet wa ake | - - 52 AUG 1 6 1646 : “*r _ i ye i 7 J eae ren ee od