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pee peri ie ie een meen EUR kde are. be tf om <A mr Buy vl Ar, Ge ee LH allegations of both a Bribery and a Fraud Against the Government and if considered advisable would be in a position to make open inqiries in connection with the construction of the Flamingo Hotel, A discreet ' preliminary check ia presently being made to detennine the date the CPA “freeze order" was issued and the extent to which the construction of the Flamingo Hotel had progressed on that date, ACTION TO BE TAKEN: Mr. Ostholthoff points cut that the Bareau now has OBSERVATION: The Fraud Against the Gove Viclation could be investi- , gated on the basis of the editorial in s Vegas Tribune and statanemts . under oath could be obtained from ali persbns interviewed. The initiation | of the investigation might result in stoppage of construction on the Flaming Hotel and the resultant financial embarrassment to Siegel and associates might bring their activities out into the open, The allegation of a bribe | payment to Senator Pat McCarran is rather nebulous. Information concerning game could be developed incidental to the Fraud Against the Government : investigation. In connection with this investigation many of the indi viduals who would be interviewed under oath unquestionably are not involved with the racketeers and there is a possibility some information of value concerning the operations of Siegel and his associates might be obtained. If such investigation is authorized the desirability of suggesting to the Department the assignment of a Special Assistant should be given consideration it being anticipated that it will be necessary to issue subpoenaes for the examination of books and records in some instances and the- potential witnesses may have local political connections and affiliations, RECOMMENDATION: It is recommended that the initiation of Fraud Against the Government investigation in connection with the construction of the Flamingo Hotei be given strona /onetseraniens peel ey