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LTR TO DIRECTOR, FBI NK 94-417 During the trial Assistant United States Attorney LFRED W. HOLLANDER was questioning Mr. I, GEORGE OLDSTEIN, a Newark accountant who is an accountant for a number of firms with which ZWILLMAN is connected. ZWILLMAN maintained to Tax Agents that he gave his 50% share cf ownership in the Public Service Tobacco Company to his wife as a weddi resent in 1939 and since that time he, ZWILLMAN, has bite been a $13,000.00 a year employee. Covwséh During the entire trial, ZWILLMAN, denied personal ownership of the company. AUSA HOLLANDER then produced GOLDSTEIN's testimony before the KEFAUVER Senate Crime Investigating Committee under date of October 11, 1950, which testimony revealed that the Senate Committee Counsel RUDOLPH HALLEY had asked GOLDSTEIN if the Public Service Tobacco Company wasn't ZWILLMAN's company, "basically"; and GOLDSTEIN replied that ZWILLMAN "is a 50% partner and MICHAEL LASCARI is a 50% partner". In reference to these KEFAUVER hearings, strong objections from ZWILLMAN's counsel were brought out, in that he contended that testimony before a Senate Investigating Committee legally may not be used in a criminal trial. Before the judge ruleB on the point, the defense withdrew its objections saying, "We feel the damage has already been done”. GOLDSTEIN, under subsequent cross examination by defense counsel, explained that his testimony before the KEFAUVER committee meant that he considered the Tobacco Company to be owned by ZWILLMAN's and LASCARI's families. The press which covered the ZWILLMAN trial minutely reported testimony on February 6, 1956 concerning investments made in the name of Mrs. MARY ZWILLMAN. It was reported Mrs. ZWILLMAN had a 50% share in an investment account with a Mgs. GLADYS Wj-SISTO. Mrs. SISTO is the wife of JOSEPH ANISTO, an official in the investment concern known as J. A. Sisto & Co. During 1942, Mrs. ZWILLMAN made an original investment of $12,000. In 1948, she .received $24,881 as her 50% share of earnings in this account, Mr. SISTO testified that he made purchases of stock for this account without consulting the ZWILLMANS. 6