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Office Memorandum : UNITED STATES GOVERNMENT tO Mr. DAte: Jamary 7. FROM Mr. Ros SUBJEC NORTH AMERICAN SHIPPING AND TRADING CO.j UNITED TANKER CORP.; UNITED STATES PETROLEUM CARRIERS, INC. AMERICAN OVERSEAS TANKER CORR; SIMPSON, SPENCE & YOUNG FRAUD AGAINST THE GOVERNMENT PURPOSE To advise of the receipt of a request for an investigation from the Department of the North American Shipping and Trading Co. and several of its subsidiary and affiliated companies. The allegation. is that these companies made false statements to the Government as to the nationality of the financial interests behind them at the time they purchased 60 surplus yessels from the Maritime Administration. Former Congressman Joseph Casey (D. Mass.) is the president of one of the affiliated companies. BACKGROUND As you will recall, at the request of the Claims Division. the Bureau is presently conducting an Admiralty Matter investigation into the purchase of the Tanker Meacham from the Maritime Administra. tion by the American Overseas Tanker Corp., an.affiliate of the North American Shipping and Trading Co., and its subsequent resale to alien Chinese interests. The New York Office is presently conducting an 'aocounting investigation in this matter. The December 19, 195l, edition of the Times-Herald contained an article to the effect that the Hoey Senate Committee contemplates a probe into the sale of l0o surplus ships by the Maritime Administra- tion. DETAILS By memorandum dated December 26, 1951, ,James M. McInerney, Assistant Attorney Goneral,'requested that the Bureau conduct an. investigation into an allegation that the North American Shipping and Trading Co. and several or~its subsidiary and affiliated companies had made false statements.to .the Maritime Administration at the time they purchased 60 yessels. from that agency. The false statements concern themselves with the nationality of the interested persons. making the purchasos. The purchasing companies claim that they are backed solely by an American interest wherein the Government alleges. Attachment SERBCORDED I41/G: (AJM:DC