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r 4 4 t t * we: RTANOARD FORM no. 64 Office Memorand: ° UNITED STATES GOVERNMENT ; ra id —_ TO 1 UR, B.A, 7 DATE: 8/16/46. Pere ALL TNTORYATION CONTAINED * aso FROM j/k, SEN HERE LN Coin => IFIED in ess geet 0/2505 39 P-Dntut © SUBJECT: \ BENJAMIN "BUGS" SIEGEL ~ ; i ae MISCELLANEOUS - INFORMATION CONCERNING Mr fares | 2 emi Mr. Ostholthorf, Los Angeles, telephonically advised at this time E\*ieus' that in accordance with Bureau instructions about ten days ago to go Mies Gangy——— ahead with an open investigation of the construction of the Flamingo Hotel and any possible irregularities on the part of CPA personnel, that \hne plans to start this next Monday in this connection, Mr. Ostholthoff plans to g Francisco Monday and have Agents go to Reno at that time to talk to and he is also having Agents in Los Angeles go into CPA records there, ae the same time. He stated he wanted to be sure before he goes ahead that they wuld have the backing of the CPA in Washington in getting the records, ; The observation was made by Ostholthoff that it appears the CPA hearing ma een a cover-up as they obviously did not present much of a case. CPA investig d stated before the hearing that d shut case, d also stated he had the blue they had an open prints which showed that there were two separate buildings and they should have constructed only one. Mr, Ostholthoff stated he did not know whether the blue prints were introduced at the hearing. It was also pointed cut by Ostholithoff th ble perjury may develop in view of the agreement which was made oh that the Webb Construction would testify they were working m the January plan rather than the March plan, Ostholthoff stated the San Francisco office was using a contact microphone when this information was tholthoff sai ey will obtain a transcript of the hearing. advised after the hearing in strict confidence that Senato) MeCarran was in San Francisco the day of the hearing in case he was needed by the Flamingo. people, Th nt has until September 5, 1946, to present additional ‘evidence to Mr, Ostholthoff stated unless there was a change in Washington he will go ahead on Monday and keep the Bureau advised of developments. ACTION TAKEN: I told Ostholthoff that I had not seen anything which would change the original instructions. pRooRDe? bru 6 Bor POSAPH PP et i. i ye “2 c