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Direstor, FRI July 30, 1916 Re: BENJAMIN “BUGSY™ SIEGEL =o Angeles. It have personally aurveved these planes and 1¢ anneare that an ewe pee + appears extensive physical surveil lance of SIEGEL, is inadvisable because it would be. practically impossible to keep such a surveillance discreet. Naturally, there will be times when a physical surveillance of SIEGEL may become necessary as a result of informtion developed over the technical surveillances in ~ order to identify certain of his contacta,. At the proce Special “Agents Qi Wath: assigned to this investigation. Special [4 Aa ARS iened to this investization beginning Avenst 7 7 LL —@€ °° Brmesme BUSUES «5 1916. From a review of the information available at the present time, it appears that we could at any time pro 1 Siave Traffic Aot as agaimst SLE h time that he transports his mistress The possibility of ‘the prosecution of such a violation is as you can understand rather remote, vA The seco proving a violation at the present time is SIEGEL's harboring o is the subject of a case involving Unlawful Fl vo secution in which New York City is the office of [?] the investigation looking ‘toward’ the looation of 11 be coordinated with tha STEGE. inwastization in order that we will be able to develop the Harboring violation 1d me proving this violation js the fact only within the past few weeks and At, could be proven that SIEGEL ia aware of TtETE as a "Fedarn) Bel tren, From several confidential informants in the Los Angeles area, informe-~ tion has been received that SIEGEL is a user of opium. It has not been . determined as yet whether he is a narcotic addict or whether he ie a so-called’ “plea sure smoker,” who uses opium from time to time. The poseibil ity of developing information along these lines will be kept in mind. n comection with this latter jal n ascertained only today from um tos angeles, that in 1939 the United States Customs conducted an mvestixation concerning SIEGEL and pursuant to a searoh warrant conducted a search of his residence in Los Angeles in an effort to locate narcotics and \ Ne -2-