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fo Los Angeles, Califcrnia August 1, 1946 arn INPORMAT “EMO FOR THE FILE: BENJAMIN "BUGS" GI GEL ° MISCELLANECTS; INFORMATION CONCERNING; CRIME SURVEY At 8:45 a.m. today T spoke with Bureau in the absenc tant Director ROSEN. advise tha GP at Los Angeles had informed us that in con- i, nection wi e construction of the Flamingo Hotel in Las Yegas the construc- b é a tl a tion had reached a point only where there were a few stakes in the ground — wee _— ya when the Civilian Production Administration order freezing building effect; that, the lable t aA Made Bye py available to Senator PAT M RR ereafter, an order came through permitting the construction of th j to po ahead. I pointed out +: ~ would recommend an open and thorough investigation o is matter on both the Bribery and Fraud bx Against the Government theory; that this would enable us to examine the books and records concerning the construction of the Flamingo Hotels would rermit us to examine witnesses under oath and we could trace back every cent of money that has been put into the construction of this Hotel, I said that besides possibly developing a violation through which we could put STEGEL in jail, it would also have the effect of virtually bankrupting him and his associates if our investigation should result in the stoppage of construction. hat technical gurveillances have indicated tated that as of today are tyring to pre I advised that SIEGEL in a conversa they have $1,162,500 in ¢ front-page article in the LAS VEGAS TRIBUNE which er @ construc- tion of the Flamingo Hotel at a time when materials are needed for the con- struction of homes for veterans. I advised him that independently of our own investigation such a newspaper article might bring about an investiga- tion either by ourselves or some other Government agency, and I felt that we should take the opportunity to move into the picture. : ug -1 1946 To ra —,