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Q 4 Ios Angeles, California error CONTAIRED September 16, 1946 aL 1NFOR ED Tha —_—T Re: BENJAMIN “BUGS” SIEGEL MISCELLANEOUS; INFORMATION CONCERNING 5 GRIME SURVEY At 9:50 a.m. on September 14, 1946 I spoke ~ fD at the Bureau in the absence of Assistant Director ROSEN. I asked h if he had reviewed the San Francisco teletype of September 13, 1946 and he said that he was aware that the Government had lost the casa before the C.P.A. Commissioner in San Francisco. I 8 question now is whether this matter can be re-opened See that perhaps the doctrine of res adjudicata would apply, but I told him that I did not believe this since the proceedings before the Commissioner IC are not legal proceedings and are subject to review by the courts. _* I suggested, however, that this matter be discussed with the department, I pointed out that according to the VARIETY newspaper a case in Seattle had been handled by the Mhited states Attorney order stopping the construction of a $100,000 theatre andi—_-a.ske what the details of this were and I said that because VARIETY carried a very small] article about ‘ial coc out that it would probably be very difficult to esta @ case at this point in view of the fact that the matter had been fully aired before a C.P.A. Commissioner, J stated that undoubtedly it would be a difficult case but that I could see no harm in at least conducting the investigation; that possible fraud in connection with the Flamingo Hotel is the only Federal violation that we have except the narcotic matter in Mexico, which is not under our jurisdiction, T said that ft would like the Bureau's decision as soon as possible because the time element is important since construction of the hotel is going forward and we may find ourselves in the position of eventually going into court on this matter and having the defendants state that the hotel is practically finished so why ake ee a ene = gta — should the government now try to stop them. a I tol that our principal purpose in desiring to go ahead with 8 investigation is to stop the hotel, if possible, and secondly to trace_back the money which has gone into the construction )9¢ of the hotel. I told hat it would be necessary to conduct “ an open investigation o 8 matter because we can no longer investigate discrestly; that we have conducted all of the discreet investigation that is posgible, and the matter is not/at | the pod at ere We Must open ye 95 interviag yarious individuals beginning a ei. .;.:2.::2 that I submit a memorandum to urea con ng \ stem ar f