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LTR TO DIRECTOR, NK 94-417 ey During the trial Assistant United States Attorney sy LFRED W. HOLLANDER was questioning Mr. I. GEORGE a OLDSTEIN, a& Newark accountant who is an accountant for as a number of firms with which ZWILLMAN is connected. ZWILLMAN maintained to Tax Agents that he gave his 50% is share cf ownership in the Public Service Tobacco Company — ' to his wife as a weddi regent in 1939 and since that ed time he, ZWILLMAN, has ektiy- been a $13,000.00 a year et employee. 4 Fie] +4 ae oe ore Ee ee Dur ring the CIVIL VllaGl, GALEULTIAIN denied per sonal ownership of the company. AUSA HOLLANDER then produced GOLDSTEIN's testimony before the KEFAUVER Senate Crime Investigating Committee under date of October 11, 1950, which testimony revealed that the Senate Committee Counsel RUDOLPH HALLEY had asked GOLDSTEIN if the Public Service Tobacco Company wasn't ZWILLMAN's company, "basically"; and GOLDSTEIN replied that ZWILLMAN "is a 50% partner and MICHAEL LASCARI is a 50% partner", In reference to these KEFAUVER hearings, strong objections from ZWILLMAN's counsel were brought out, in that he contended that testimony before a Senate Investigating Committee legally may not be used in a criminal trial. Before the judge ruleB on the point, the defense withdrew its objections saying, "We feel the damage has already been done”. GOLDSTEIN, under subsequent cross examination by defense counsel, explained that his testimony before the KEFAUVER committee meant that he considered the Tobacco Company to be owned by ZWILLMAN's and LASCARI's families. The press which covered the ZWITTIMAN trial eee D ddan FY hd le et et er Fe te we ate an TTLMAN he Oh lke minutely reported testimony on February 6, 1956 concerning investments made in the name of Mrs. MARY ZWILLMAN. It was reported Mrs. ZWILLMAN had a 50% share in an investment account with a Mys. GLADYS We-SISTO. Mrs. SISTO 1s the wife of ho! JOSEPH AN SISTO, an official in the investment concern ‘ known as J, A. Sisto & Co. During 1942, Mrs. ZWILLMAN made an origina investment of $12,000. In 1948, she received $24,881 as her 50% share of earnings in this. account, Mr. SISTO testified that he made purchases of stock for this account without consulting the ZWILLMANS. 6