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Bugsy Siegel — Part 4
Page 36
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* MENORANDUN FOR THE DIRECTOR: wa August 26, 1946
him that I did not believe that was the case, that in any court proceeding
by analyzing the facts presented by the Government and those presented by
the defense you can obtain the reasons for a decision.
oR... reverted back to the theory that the matter was highly
tehoni T n asked him why the stop order was sent to the builders
of the Flamingo Hotel, and he said that was based on investigation con- —
ducted by the Compliance Division of the C.P.A. which had been furnished
to the Washington headquarters of the C.P:A., who had issued the stop
order, J asked him in view of the fact that this investigation had been
conducted if they were not in a position at that time to present a case bo
before the commissioner which would uphold the contention of the Govern- ic
ment, and he stated that they were supposed to be in a position to do that
but sometimes they were caught short on a stop order and they do not have
enough evidence to present, He said that he felt that if the F.B.I.
conducted an investigation of this matter at this time it would harm
the investigation of the C.P.A. JI asked him how it would harm the C.P.A.
investigation, and he said he did not know. I then advised him that I
did ni that our investigation would interfere with the C.P.A,
case, emarked about swarms of agents out investigating this
matter ad been duplicating the C.P.A. investigation and said that
the builders of the Flamingo Hotel would come up to the hearing with
high-price lawyers and technical experts. I asked him if the builders
of the Flamingo Hotel were not already on notice that his organization
was condutting an investigation, and he admitted that they had already
appeared at the first hearing with high-price lawyers and technical assistants.
then proposed that we hold off our investigation until
after the C.F.A. hearing September 5th. He said that if both the C.P.A.
and the F.B.I, investigate this matter we might both fail, but that if a
C.P.A. alone investigates it the chance of C.P.A. failing is less. pre
However, he stated that if the C.P.A. fails to make its case then they
will turn the matter over to us. I told him that he himself stated that
we would be going over the same investigation, and I pointed out that
if that is true that if the C.P.A, fails then the F.B.J. fails. He ad-
mitted that thia was true.
The only thing na eos reveal as to the future
investigation of the C.P.A. was they plamed to take photographs of
the work as it now stands on the Flamingo Hotel and to try to get tech- pbx
nical assistance. He said that they might not be able to get this tech-
nical assistance and then he did not know what the results of their case
might be. He said that they thought they might try to get additional
plans used by the construction company.
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