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LTR TO "JRECTOR, FBI NK 94-417 in connection with this case prior to the start of the trial. One such motion was based on & "rumor" that ZWILLMAN's case was discussed by Grand Jury members and others at a lawn party ten dava before the indictment was voted, This defense motion was denied. Other motions were also denied and granted to both sides during the re-trial "Jockeying". _ “8 i Re-trial actually got under way 1/19/56 after the jury was completed 1/18/56, and during the trial the items previously commented upon, were brought out. During the trial an internal revenue agent made the disclosure that ZWILLMAN once agreed to pay $105 ,000 in additional income taxes rather than disclose the source of some of his tax paid income. No date is known as to when subject offer was allegedly made. A representative of HIRSCH and Company, a New York brokerage firm which handled the transactions in New York for Manning, Shanley and Company cof Newark, N. J., revealed some of the stock transactions which the Newark company had handled for ZWILLMAN. Among some of the transactions were securities of the Hudson-Manhattan Railroad, Barium Steel, International Telephone and Tele~ graph, and Pan American Airways, which holdings of ZWILLMAN had been brought out previously and had been reported. After ZWILLMAN's lawyers and accountants refused to cooperate with the government in 1952, it was necessary for the government to proceed with the case on the net worth and expenditure theory. JOHN J. O'HARA, Special Internal Revenue Agent, testified on 1/30/56 that he conducted an exhaustive investigation of the assets and expenditures of ZWILLMAN, his relatives and associates, It was brought out that ABNER ZWILLMAN and JOSEPH STACHER apparently had profited by $1,000,000 after taxes in the 1943 sale of the Browne Vintners Inc.