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Bugsy Siegel — Part 18

100 pages · May 09, 2026 · Document date: Aug 6, 1946 · Broad topic: Organized Crime · Topic: Bugsy Siegel · 99 pages OCR'd
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—T SAC August 20, 1946 matter but were representatives of another Government_agency which had jurisdiction wad to investigate fraud against the Government. I asec: © the builders of pa the Flamingo Hotel would be entitled to a copy of the transcript of this hearing, tt and answered the question by stating, "Yes, they would if they pay the Leos said that he did not want to appear unreasonable but suggested that we wait until the completion of the hearing on September dbl: time he would be willing to turn over all of the informations en pointed out that it was August 20 and the hearing was to de he ep er 5 and that we would te held up only two weeks. We pointed out that time is of the essence in a matter of this kind, that the individuals involved in this matter __ fast, end that a greal deal of evidence could disappear in two weeks en stated that we had gone over the case yesterday, and I prow advised him that if he had furnished us the facts in this matter yesterday I epperently had missed hearing them and asked that he repeat the facts in contro-= versy on the whole investigation, He then stated_that the matter revolved sroumd whether the first permission which was granted was valid and whether the builders of the Flamingo Hotel were constructing one building or more than one buildinge I pointed out that we were dealing in generalities and that we wanted the facts in the matter. I pointed out that they had presented a case before a commissioner and had received an adverse rulings I asked him why an adverse ruling had been received, and he stated that "You would have to read the commissioner's mind to get the answer to that." I told him that I dia not believe that was the case, that in any court proceeding by analysing the facts presented by the Government and those presented by the defense you can obtain the reasons for a decision. then reverted back to the theory that the matter was highly technical. I then asked him why the stop order was sent to the builders of the Flemingo Hotel, and he said that was based on investigation conducted by the Compliance Division of the CPA which had been furnished to the Washington headquarters of the CPA, who had issued the atop order. I asked him in view of the fact that this investigation had been conducted if they were not in a position at that time to present a case before the commissioner which would uphold the contention of the Government, and he stated that they were supposed b 7c to be in a position to do that tut sometimes they were caught short on a stop order and they do not have enough evidence to present. He said that he felt that if the FBI conducted an investigation of this matter at this time it would harm the investigation of the CPA. I asked him how it would harm the CPA in- vestigation, and he said he did not mow. I then advised him tha d not believe that our investigation would interfere with the CPA cose. remarked about ewarma of agents out investigating this matter who h duplicating the CPA investigation and said that the builders of the Flamingo
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