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j Federal Burean of Investigation str. cate Muited States oe Department of Justice a ene Los Angeles (15) Californie > Tapeeta September 16, 1946 XA Bene. ciate ) There is attached hereto a memorandum setting forth an outline of proposed investigation concerning the possible Fraud Against the Govern- ment violation in sonnection with the construction of the Fianingo Hotel at las Vegas, evade. a ™~, ii ~*~ f >t" ‘ i ? 2 6o5t 4 i true that this matter has been inves gated by the Cividierd/ | Production administration and has been gone into at length before a C.P.A. Commissioner, who ruled in favor of SIEGEL and his associates, which makes it difficult to prove the case at this time. However, any case against SIEGEL will be difficult to prove in view of his past experience and present ability to secure legal counsel. . aAN RD AN Our problem of proof will be different then the C.P.A. Cas&* DEBE. and more difficult. The C.P.A. attempted to prove that there were two or - x ore buildings being constructed on the Flamingo Hotel We must } ee ee oe A +¢bet+ == Benet ioe 11 oe eA SSyoOua TOaL and Pind witnesses who will VESvilLy In 5 LBUEL d the latter's associates knew that and conspired to en the facts to the Government, \ j A ? apparently always subject to r@view by the courts. It is suggested, how- Cat ever, that this matter be disp eye e pe TES y - 2 While it ie sani, a at/a ri £72.77 1G is a*te eee a8 reasize Vien a oe ea naet bp tech- nical viclation of an reteset gees 4 prekent time it represents the only violation whi we | 1 cq relspea to date over which this Bureau has juriedictiogéy / \ " - thi investigation, if 2 obbea., would tom the ‘interest of ae — the F.B.I. in SIEGEL's activities, | but it da not believed that this will . .- | necessarily prevent investigation of QSgGEL's general activities from going forward since it ia quite possible that 6 will believe that our interest to this matter since the ee before the C.P.A,. Commissioner are ae heat