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| ) ~~) Los Angeles, California oR¥ATION C September 18, 1946 ALL IN? HEREIN 1 Re: BENJAMIN "BUGS" SIEGEL MISCELLANEOUS; INFORMATION CONCERNING; CRIME SURVEY At 9:50 a.m, on September 14, 1946 I spoke a at the Bureau in the absence of Assistant Director ROSEN. I aske if he had reviewed the San Francisco teletype of September 13, 1946 and he said that he was aware that the Government had lost the case before the C.P.A. Commissioner in San Francisco. I 8 question now ia whether this matter can be re-opened Sn te that perhaps the doctrine of res adjudicata would apply, but I told him that I did not believe this since the proceedings before the Commissioner bre are not legal proceedings and are subject to review by the courts. I suggested, however, that this matter be discussed with the department, I pointed out that according to the VARIETY newspaper a case in Seattle had been handled by the Mhited gtates Attorney to se order stopping the construction of a $100,000 theatre sked what the details of this were and I said that because VARIETY carried a very small article about 1: allelic: out that it would probably be very difficult to es sh a case at this point in view of the fact that the matter had been fully sired before a C.P.A. Commissioner, I stated that undoubtedly it would be a difficult case but that I could see no harm in at least conducting the investigation; that possible fraud in connection with the Flamingo Hotel is the only Federal violation that we have except the narcotic matter in Mexico, which is not under our jurisdiction. I said that { would like the Bureau's decision as soon as possible because the time element is important since construction of the hotel is going forward and we may find ourselves in the position of eventually going into court on this matter and having the defendants state that the hotel is practically finished so why should the government now try to stop them. MEMO, BAC: I tol that our principal purpose in desiring to go ahead with 8 investigation is to stop the hotel, if possible, and secondly to trace_b the money which has gone into the construction pre of the hotel. I ‘=< = it would be necessary to conduct an open investigation o. 8 matter because we can no longer investigate discreetly; that we have conducted all of the discreet investigation 4 S that is possible, and the matter is not/at the é ious individuals beginning wit! equested that I submit a memorandum to jureau con ng : 3 t 4