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Bugsy Siegel — Part 1
Page 96
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Direstor, FBI
of
Lobry S 9 5 ecainas, ‘the _governien:
i {eb BINGEL, ; Birectly Ghen “perhaps
“Benondly, such an invbsBaedin might have the
effect of stopping construction of the Flamingo Hotel which could cono, br
about and his associates. In this connectio:
tated that SIEGEL and his assoaiates are ng
@ completion of the gambling casinos in the Flamingo
1 Hotel in order that they might be in operation this fall. The informant b
has stated that once this casino is completed “there will be no stopping
SIEGEL" because the casinos will be good § for a $2, D00,000 a year 3 Anoome.
we ee Fag
‘ 4... am suditentiation of the theory. that efoppingthe -ebné truction “i
N of tthe: Flamingo | Hotel would bankrupt GE bsociates, on July
“30, 1946 SIEGEL had a conversatior
seat as of today they have $1,162,500 in mingo Hotel. SIEGEL
Corpora
3000 loan and the Cortez Hotel is also going to make them a $600,000
loan on the Flamingo Hotel. this would indicate that SIEGEL and his Lee
~ jassooiates have already put up all of their available cash, An investiga-
tion of this matter under the Fraud Against the Government Statute would i
permit uz to examine witnesses under oath. -It-would also-give us an :
opportunity, thrpugh detailed examination Of books and records, to trace 4 4
back all of the money invested in the Flamingo Hétel, which should, in turn,”
show exactly how much SIEGEL has invested inthis and 1€ oovld possibly
reveal a violation of the Income Tax Laws. ‘Independently of our special
investigation of SIEGEL's sotivities in general, it would appear that
the article in the LAS VEGAS TRIBUNE is of auch a nature that it might
ring about a public demand for an investigation either by the F.B.I.
or some other Government agency. No open investigation will be wmderteken
concerning the Flamingo Hotel until advice is received from the Bureau,
We will make ® preliminary check into public records at Las Vegas to *
ascertain the date that construction was started or the Flamingo Mote)
and guch other information teined in an effort to Db
substantiate the ‘informa tio: % the onstruction -
of the Flaming Hotel had go no er few stakes being drive:
“in the ground" when the freeze order regulating ma “eommeroial ‘building ” 4
under Civilian Production Administration came into effect, --:-.— .
Very truly yours,
Enol. (1) Os Gog@ Poe ia
al q
AMASD
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