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L INFORMATION CONTAINED IN = - - POSSIBLE VIOLATION IN CONNECTION WITH THE CONSTRUCTION OF THE BLAMINGO HOTEL Investigation of thie matter will be undertaken to determine if there is a wiolation in Section 80, Title 18, e theo on is that ona truct igion of the Civilian Production Administration at Reno, Nevada on "April 29, 1916 when he stated both verbally and in writing that the Flamingo Hotel Project consisted of only one building, construction of which was commenced prior to March 26, 1916, the date on which al] non- essential building was ordered stopped by the Civilian Produotion Administration. The purp tigation would be, /first) to prove a oriminal violatio and a possibie oon oy on the part of others which wo ude subject BENJAMIN SIEGEL, ‘The second purpose of the investigation would be to re-open this matter under tie Civilian Production Administration regulations and to cause an order to be issued which would stop further construction of the Flamingo Hotel. It should be ; noted that investment in this project a hat the inoome from the © Fiamingo Hotel and Casino will amount to $2,000,000 per year. Third, an _— open investigation of this matter whether or not it results in stoppage of . oonstruotion by Government order would probably prevent SIEGEL and his pe ad assooistes from seouring loans from legitimate sources for the completion hx oe of this construction. It has been noted that SIEGEL and his associates be J AY have experienced considerable difficulty in arranging loans with banks and “ 74 insurance sompanies in California and Ttah due to the fact that an investi- BEET gation was being conducted of the Flamingo Hotel on the part of the Civilian Produotion Administration. The fourth purpose of this investigation wouk be to give us an opportunity to thoroughly examine the financing of the Flamingo Hotel whioh may show that SIEGEL has pleced into this project more fund nhe has accounted for to the Internal Revenue. It also may show tha has placed into this project more funds than he has accounted for. It may well be that only in investigating this matter on a Fraud Against the Government angle will we ever be able to inquire into SIEGEL's finances which are an important part of the general investigation of SIEGEL's activities, The Civilian Production Administration brought its action to stop construction of the Flamingo Hotel under Civilian Production Administration Order No. VHP=1, dated March 26, 1946, which states, “In order to carry out the Veterans Emergenoy Housing Program this order forbids the beginning of ENCLOS UF