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_ . .) . a) , Sw L INFORMATION CONTAINED . ay . - POSSIBLE VIOLA TION IN CONNECTION WITH THE CONSTRUCTION OF THE BLAMINGO HOTEL Investigation of thie matter a be undertaken to determine if there is a violation in Section 80, Title 18, 19 theo: on is that! de a fala mstruction sion o e Civilian Production Administration at Reno, ‘temen Nevada on April 29, 196 when he stated both verbally and in writing that br the Flamingo Hotel Project consisted of only one building, construction of whioh was commenced prior to March 26, 1916, the date on which al] non- essential building was ordered stopped by the Civilian Produotion Administration. The purp tigation would be, /first) to prove a oriminal violatio: and a possible oon! cy on the part of others whioh wo ude subject BENJAMIN SIEGEL, ‘The second purpose of the investigation would be to re-open this matter under the Civilian Production Administration regulations and to cause an order to be issued which would stop further construction of the Flamingo Hotel. It should be noted that investment in this project a hat the inoome from the Flamingo Hotel and Cas will amount to $2,000,000 per year. Third, an open investigation of this matter whether or not it results in stoppage of construction by Government order would probably prevent SIEGEL and his ke associates from seouring loans from legitimate sources for the completion hme of this construction. It has been noted that SIEGEL and hie associates have experienced considerable difficulty in arranging loans with banks and insurance companies in California and Utah due to the fact that an investi- gation was being conducted of the Flamingo Hotel on the part of the Civilian Production Administration. the fourth purpose of this investigation woul) be to give us an opportunity to thoroughly examine the financing of the Flamingo Hotel whioh may show that SIEGEL has placed into this project more fund, n he has accounted for to the Internal Revenue. It also may show <n alli placed into this project more funds than he has accounted for, may well be that only in investigating this matter on a Fraud Against the Government angle will we ever be able to inquire into SIEGEL's finances which are an important part of the general investigation of SIEGEL's activities. laa The Civilian Production Administration brought its action to stop construction of the Flamingo Hotel under Civilian Production Administration Order No. VHP-1, dated March 26, 1946, which states, "In order to oarry out the Veterans Emergency Housing Program this order forbids the beginning of ENULOsU FE /, an Of. Le