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LTR TO DIRECTOR, FBI NK 94-417 MENDELS said that he became a partner in Alkuno and Company, @ manufacturer of airplane parts, in 1942 with a $500.00 investment and in three years earned $75,000.00 in salary and profit. He testified that he gave his daughter $30,000 to $35,000 of this money to keep for him and laters told her to use it as she pleased. Under eross examination MENDELS said that the Aljkuna partners were ZWILLMAN, MICHAEL LASCARI, and KUNO YMAN. MENDELS also testified that at the time he invested in Alkuno he had no knowledge of the business, did not investigate the company, did not know how much the other partners had invested, and had nothing to do with the company's policies or management. He worked in the Shipping and Packing Departments and signed payroll checks. MENDELS insisted he was not a ZWILLMAN nominee in Alkuno. He testified that he paid taxes on his earnings. The income tax evasion trial lasted approximately five weeks during which ZWILLMAN's holdings in various companies were brought out, all of which have been mentioned previously. As mentioned, the basis of the trial was the net worth of ZWILLMAN. After the completion of government testimony, the defense counsel, former Middlesex County State Senator JOHN E. TOOLAN, stated that, "We have very very carefully considered and analyzed all the evidence, and after very serious consider- ation and deliberation I assume the responsibility as defense counsel of saying we take the position that neither in law nor in fact has the government proved this defendant had one dollar of income other than is shown on his tax return. "We go even further, we say the government has eroveF oe usa aesf4d thay anata fn sun ananineae that t+hia Pevrwou Gh we S420 wiley WME afl CUD OCPeniig, vial vile defendant has no income other than that shown on his tax return. "Therefore, we have decidedto call no witnesses but to rest on the government's case". 8