◆ SpookStack

i i ms ¢ - O ) o MEMO, SAC: August 12, 1946 Re: BENJAMIN "BUGS" SIEGEL witha bribe. I pointed out A. it is rather difficult to make a bribery case if the bribe has been passed; whereas, it is: comparatively easy to make the case if we can see the pay-off, This matter was also discussed = a the Bureau and it was agreed pre betwee: d myself that I would communicate the San Francisco Office and advise them to make a quick chec! if they found him an apparently reliable individual to put him on notice in a general way without revealing the source of our information as to the possibility of a bribe being offered and instructing him to negotiate with whoever offers the bribe in order that we might cower the pay-off, . During the conversation wit QR. the Bureau he said that the Bureau was making every effort to get the a rough for a technical surveillance on the ‘olepncne Sen bre Francisco, I advised him that neither San Francisco or thia office knows where SIEGEL is going to stay in San Francisco and he pointed out that we have blanket authority to cover SIKGEL and indicated that it would be all right for San Francisco to put on a technical and microphone surveillance without any further authority no matter where they finally located SIEGEL. At 9:15 a.m. on August 12, 1946 T spoke with Special Agent in Charge H. B. FLETCHER at San Francisco and advised him personally that it would be all right for San Prancisco to put on technical md microphone surveillances of SIEGEL as soon as we locate him at gan Francisco without securing any further authority, but that the Bureau should be advised the installation. Mr. FLETCHER then referred me to fel Ag who is handling this matter, and I oir he shou. get an idea general reputation and oharacter 4¢ this appeared favorable he should then be approached in a general way, telling him only that we understand that BEN SIEGEL is interested in the Flamingo Hotel and under the circumstances it is possible that some one might attempt to make a deal on this matter and that if approached by any ons he should bie immediately advise the San Francisoo Office so that arrangements can be - made for proper coverage. I tol that care should be taken that our source of information, which is a technical surveillance, is not revealed. agent’ fasked if the situation developed where only a intermediary were involved, should be instructed not to deal with the inter- rediary but insist that he deal with SIEGEL. In other words, wanted to know if we wore interested only in getting SIEGEL or would be ell right to arrange the set-up in order to apprehend an inter= mediary. I told go ahead and apprehend an intermediary; after ‘ he is in custody he probably break down and the chain will work back fous to SIEGEL sinodee can obtain legal evidence of the fact that SIEGEL placed :