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Direstor, FBI July 30, 1916 Re: BENJAMIN "BUGSY" SIEGEL 1 have personally aurveyed these place 2 ed these places and it a extensive physical surveillance of SIEGEL is inadvisable because 4t would be practically impossible to keep swh a surveillance discreet, Naturally, there will be times when « physical surveillance of SIEGEL may become necessary as a result of informtion developed over the technical surveillances in order to identify certain of his contacta. ai the pre Specta scents iD Cain re assigned to this investigation. Special ra T:) Ill be aseignad to this investigation beginning Aug: C 19L6. ra ry ginning Augus From a review of the information available at the present time, it appears that we could at any time pro’ 1 Slave Traffic Act as agains ach time that he transports his mistress VIRGI The possibility of the prossoution °. rather remote. The seco) SIEGEL's harboring’ Unlawful Pl the investigation looking ‘toward’ the 11 be coordinated with the SIEGEL investizatd be able to develop the Harboring violat, proving this violation js the fact only within the past few we could be proven that SIEGEL ig aware o From several confidential informints in the Los Angeles area, informe- tion has been received that SIEGEL is a user of opium. It has not been determined as yet whether he is a narcotic addict or whether he ise so-called’ “pleasure smoker,” who uses opium from time te time. The possibility of developing information along these lines will be kept in mind. 7 _ Bo nm comection with this latter ia mn . —_ ascertained only today from! ae: Angeles, that in 1939 the United States Customs conducted an Tv - esti-ation concerning SIEGEL and pursuant to a searoh warrant conducted a search of his residence in Loe Angeles in an effort to locate narcotics and -2-