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LA 92-1039A SINATRA and MARTIN denied all knowledge of the gambling, and SINATRA claimed he arranged all the appearances merely as a favor to Mr, LEO OLSEN, the owner of the club, for ‘past favors, and that GIANCANA had nothing to do with it. Available information indicates otherwise, SINATRA has recently broken up bis long-time association :with HENRY SANICOLA and is presently going it alone and has plans for Cal-Neva which according to SINATRA and his attorney-adviser MILLON RUDIN (who accompanied him to Atlantic City last summer) which include a $4,000,000 expansion of Cal-Neva, with the money possibly coming from the Central States Teamsters Pension or Welfare funds. The long continued association of SINATRA as a possible front for investments for nhoodlums of both national and international stature has lead to the belief by this division that a confidential source if established in Palm Springs concerning SINATRA would undoubtedly develop informa- tion of extremely valuable intelligence nature, and furnish a picture of top level criminal investments and operations. Authority is requested to conduct a prelimina survey to determine the feasibility of a misur tnstalistion wearer . av SINATRA's residence in Palm Springs, Califomle. No action will be taken in this matter without Bureau authority. Full security is assured. SINATRA's home near Palm Springs has the mailing address of 70-558 Wonder Palms Road, Rancho Mirage, California. (27 ve Oe neon an vom ra “ ene ermine me ees i oe rT te RI AL