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yg @ (CEN | Ee NEW.YORK*= The Federal. trea of Investigation islook- ‘ ing into whether. a man it had jnside “information about thé: fsoverniment’ 's <Abscam Opera- {tionito work ‘private swindles for hig own: financial ; gain. * Séveral califorti a usin essmen have accused the vestment. their confidence: in hin they" Jools -whom they identified as Joseph B. Meltzer. of swindl:,“ ing them out of at least $150, 060° by ‘portraying ‘himself as thé “day. representative ,of a weaithy ecutive Arab”’sheik, Kambir Abdut™ FBI-in Rahman, who was‘willing’tos , “at the lendthem money. Inréality, the sheik’ never existed: He was in: vented by the FBI forits under- cover investigation intoalléged © political corruption that was givén the code name, Abscam, for Arab scam: - : ‘Meltzer was an informer i ini ar ‘s4idy” ‘operation. . and, antriend of ‘another informer, Mel, Wein: CTE, ‘who was involved in Ab-. ent ‘authoritiés.. dealt with Meltzer. said that, he, had portrayed himself as.a top. Vestiga execptive of Abdul Enterprises- Ltd.j the same company that. \indercover federal agents in ithe Abscam operation said that: they represented. ote NT San ‘Diegor. ee: (Nore York. Tames mes r Serie Had actually been working sith" BARREN TOR” HIS sown scam in the cooperation of the bureau and” had” Aidéntified= himself - sometimes as an EBI informer employed as an informer: used « and at other times as an under- fortune into this s country “for, iti- * \Asked’ for ‘géimment yester= ‘Homer “A. Boynton, ‘ex- “ed West Coast activities, he had Tid ‘association with the FBI. ” *Boynton added: became “allegations a and has-been work: ~ ing closely with the U. ‘S. attor= ney fo resolve. them,” « Robert’ Smith, case. that led to, the.., Abscam Départment. spokesman, ’ said the “department: ‘would. have no -comment on Meltzer or-on: the’ _ questions the-situationiraised . cam, accordingtolawentorce- about the use and, reliability. of informers in “criminal in- .. Some of the businessmen who’. vestigations. . Whendetailsof thef éderali in- tion became public’ two Weeks ago, some of the Califor- nia ‘businessmen said they were: shocked to discover: many, similarities. jbetween- “that .MGreover. in. interviews in, said they began to consider-the said ghey beli believed that Meltzer ‘working for the FBI, had'ém-, Jspeaktom tomyattorney, Lwillno Lwillnot; atte ma wer fs * . - a se game oe Ese ae anew, 88 ae ae me we mee ee tas . —— FD-350 (Rev. 10-19-77) if j it Fy Ns “ (Mount Clipping in Space Below) _|fnfo former s ay Have| “indicate page, name of _Rewspapery, city and state.) * , which they became his victims. «Furthermore, they $ said that they had informed “the- FBI; - earlier about what Meltzer was Cover agent. ‘Somealsosaidthat doing. but that‘the bureau had Pa A-5 untilrécently they believed the: notstopped him or warned them 157 ge “- . biyreau was assisting Meltzer in not,totrist him. « “TRichmond Times- -bringing the sheik’ Senofmous In most, of their” deals with Dispatch" Meltzer,,they said, he assured _them ‘of, receiving sizable, loans “under. favorable terms from the ‘ Semin” he; represented. In' return, ‘they agreed to sell. the | sheik a: ‘percentage ‘of: the] assistant director of the * ‘businesses they planned to’ Washington, said that ‘start. As a condition for receiv- time‘of Meltzer's alleg- ifigtheloans, ihey said they paid’ "Meltzer thousands of dollars in; front’” money. The loans, : however, always failed’ to: materialize, as did the Sheilcin: rendezvous they f lew toin ispois around the world. "Meltzér, asked whether she ‘ade Justice : > had accepted, money, from. ~ businessmen to whom he had, promised loans, said, “Maybe | yes,. maybe no.’ “He conceded: that,in the 2 past. “T was representing y Abdi! En-"§ terprises” + -but- that “Ss really’ conidn't tell. you “in what! capacity.’ ” He also’ said héserv-! ed'as’ the. “authorized” agent’’} “for. Foreign Investments, Group; TLid.., ewhich, he -had: told - the- cbusinessmen w was the successor’ company to Abdul Enterprises. ' R ‘That’ had: bolstered : _ Richmond, Va. fThe FBI aware “or the, Date: 2 / 19 / 80 Edition: Morning Title: ABSCAM «Operation and Meltzer’ sThey- —“Yourre- puttiigsme. -on-ther. Character: “Spot,” Meltzer: said.. I jdon‘t! or 87-1 554253 | the-businessmen: ~ «possibility that Meltzer;-while Jike'to be put on the spot. Unless Classification: Submitting-OMceTR } |= eye gr Chmond - 7 Ae ee 1) . . a 9 ¥-69 want “SND * *6B1/D03 ote