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Letter to the Director, FBI NK 9-417 Thos against ZWILLMAN, : ZWILLMAN's) indictment was the oldest of 50 indictments dismissed on this date, On 8/21/39 ZWILLMAN was adjudged in contempt and sentenced to six months for his refusal on grounds of self-incrimination to answer questions before the Grand Jury in New York, He had been called to name his business associates from 1928 through 1932,‘which - fis the time in which’he was alleged to have been active in the bootlegging racket, This contempt conviction was reversed on January 15, 1940 by the U.S. Court of Appeals, the Court ruling that ZWILLMAN had a right to invoke a privilege of refusing to answer questions ongrounds of self-incrimination, The Government did not appeal this reversal, and the case was returned for retrial, Three months later it was marked , orf the judicial calendar and was never recalled, a) Referenced letter related that ZWILLMAN was under subpoena to appear before what is referred to as the Larner Committee in Jersey City, Ned. On 10/5/5) ZWILLMAN testified before this Committee, (LARNER is an attorney appointed by the court to investigate alleged irregularities in the operations of the City Government of Jersey City, NJ.) ZWILLMAN acknowledged on the stand that he had loaned $20,000 to one LESLIE Ms¥WEBER to assist WEBER in his efforts to negotiate a $90,000 real estate deal for control of the land on which the old Jersey City baseball park stood, This transaction dated back to 1947, however, it never actually materialized, After purchasing the property for $90,000, WEBER subsequently was paid $94,000 by Jersey City for "damages" he was supposed to have suffered, During the Senate Investigation Committee (KEFAUVER Hearings) during 1951, ZWILLMAN testified that a man named WEBER was one of those who were trustees for him in land holdings. When testifying before the Larner Committee, ZWILLMAN acknowledged that LESLIE M, WEBER was the same individual he referred to in the KEFAUVER Committee Hearings, but ZWILLMAN added that he had erred before the Senate * Committee because of a confliction between the terms_trustee and borrower, ZWILLMAN insisted that he actually had no financial interest in the Jersey City transaction, The loan was made by ZWILLMAN in October, 1949, ZWILLMAN giving WEBER a -2-