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i vs j Zederal Rurean of Investigation : United States B gartment of Justice : Los Angeles i 3} Californie sen September 16, 1946 Wear sins a There is ‘attached hereto a memorandum setting forth an outline of proposed investigation concerning the possible Fraud Against the Govern- ment violation in connection with the construction of the Fiesingo Hotel at ias Weegee. Jerede. mo™N io 4 L mA, : : i Fy ont 4s true that thie matter has bean inves gated by the Civili Production Administration and has been gone into at length before a C.P.A. Commissioner, who ruled in favor of SIEGEL and his associates, which makes it difficult to prove the case at this time. However, any case against SIEGEL will be difficult to prove in view of his past experience and present ability to secure legal counsel. annoypat our problem of proof will be different then the C.P.A. cas@iv® FBR poem and more difficult. The C.P.A, attempted to prove that there were two or + Zz Sy, more buildings being constructed on the Flamingo Hotel We must y} ~ Pe) o beyond that and find witnesses who will testify <u lit ace &: the latter's associates knew that and conspired to misrepr . oe the facts to the Government. a / 4 2 . a yet I do not believe that the pringlhe® o8 adjudicate” will apply a i \ to this matter since the procee s before the C.P.A, Commissioner are ans ° apparently always subject to rgview by the courts. It is suggested, how- Get -~ 4 we ever, that this matter be digp ain 6 pe es yl |My ain 1506 og While it is realized? idatiste, is a nical violation of an administrati= wef preSent time it represents the only violation whigt we ‘tis cjevelseas to date over which this Bureau has Juriedictiogiy 13 : is s , é 4 4 . not this investigation, if eebb tea, would slow the interest of é “ the F.B.I. in SIEGEL's activition, but it 4s not believed that this will pa _ i necessarily prevent investigation of. gf$CEL's general activities from going forward since it is quite possible that hé will believe that our interest tech-