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Bugsy Siegel — Part 2
Page 102
102 / 114
Memo for Mr. Rosen
Siegel and his associates in connection with the construction of the Flamingo
Hotel at Las Vegas. This stop order was dated August 7, 1946. At the e the
stop order was issued the attorney for Siegel in Las Vegas, Nevada
“yequested the regional office of the CPA in San Francisce to allow the con-
struction of the building to be continued pending the outcome of the hearing, D7C
which was scheduled within a week. The request —!: complied with.
NG HN
a : the CPA, upon being contacted by
Agents informed that the CPA regulations specifically hibited a person in
the field from giving information to other agencies. cin off the
record, showed a diagram of the Flamingo Hotel, which comprised the Casino,
the kitchen and the dining room surrounded by a 200-room hotel, of
stores and a series of cottages which would complete the layout.
advised that Building No. 1, which comprised the Casino, kitchen an g bre
room, was actually under construction prior to the original CPA freeze order
issued on March 26, 1946. However, none of the other buildings were under
construction nor were there any connecting tunnels or conduits cating that
they were a part of the structure under progress. According <iialiliay
relative buildings under construction, such as these wherein separate an'
distinct buildings were being built, the CPA has always refused to permit any
further buil he ones actually under construction prior to the
freeze order, inted out tc the Agents that based on previous CPA
decisions in sinilar is he did not see how it would be possible for the
CPA to give the Flamingo Hotel permission to continue with its construction.
He stated that the CPA had an "open and shut case against Siegel".
At_the » 1946, vecore iy
Oo was appointed to hear matter,
Cy a" ari ets for the Flamingo Hotel presented a plan
ie
dated January 12 and contended s was the plan followed in the con-
struction of the Flamingo me ata out at the hearing that = 52
this plan lacked details such as e. id he, therefore, questioned
whether they could proceed with the building, using only the plans of January
12. The contractors for Siegel further produced a letter directed to the CPA
dated April 17, 1946, in response to a wire from the CPA dated April 16,
which stated that they mst stop construction if the construction was in
violation of the freeze order. The respondents produced a letter to the
effect that they were proceeding on the plan of January 12 and as was
started before March 26 they were not violating any freeze order,
advised that the CPA failed to present any proof that the respon
wiolating any order issued by the CPA, and from the facts presented he
decided in favor of the respondents.
c ‘ T
Tr % he personally bx
of the CPA, and
r ore the commissioner on August 13. ry off
te
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