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ite i ti CO eee 7 . a to Fo Sa ermmmmnparmren, ss - ~ Office Memoendum * UNITED STATES GOVERNMENT To : {HE DIRECTOR para: Dece 1946 From : MR. EDF. A. T subject: : 3 In * , | EISCELLANEOUS; ~ CRIME SURVEY \ 08 ay ON CONCERNING; AV f You will observe from the attached Tetter from Los Angeles that a number of tnquirtes are being made concerning "Bugs" Stegel's activities which generally are potnted in the direction of determining whether he ie actually interested in the é narcotics traffic. We are not investigating a narcoticée violation j/- as such, but I think we are justified in going far enough in this - Situation to determine once and for all where Siegel's money comes na from, how Virginia Hill obtains the fabyio mounts which si ° spends of the other satellites who revolve around Siegel I think that as long as we don't tie up any unreasonable amount of manpower tn thts situatton, one or two men tn each of four or five offices at the most can get a pretty accurate picture of this situation in a month and that we are justified in continuing this investigation until we definitely know what -kKeeps Stegel going and what his connections ares If we con't spend: the timeSond effort on this inquiry now, tt is only a question of time urfil we will have to do it because of the allegations which are c@sigitly being received about Stegel, Hill and the others., Ip the light of our recent rather complicated etudy of their activittes, I think we have sufficient timely background informatign td enable us to conduct this investigation at this time with wtich less effort and manpower than 1t would take at some future date. An