TOP SECRET -?- In’ the course of questioning by Lt. Smith, Dan Rowan advised that within an hour of discussing the wiretapping of his phone with Phyllis McGuire of the McGuire Sisters Trio, he received a call from the "bosses" whom he would not identify who told him that under no circumstances was he to press charges against Balletti or try to determine why his conver- sations were being recorded and that if he did they would see that he was ruined professionally. Lt. Smith asked Rowan if Sam Giancana, the Chicago hoodlum, who was known to have kept company with Phyllis McGuire in the recent past might have wanted to know what conversations Rowan and McGuire were having. Rowan replied, "How aia you know about that?" and stated, "You certainly could have the answer." On November 1, 1960, Rowan appeared at the Clark County Sheriff's Office and signed a release, stating that he desired that all charges against Balletti be dropped and that no action be taken by the Clark County Sheriff's Office with regard to the burglary and the intrusion of privacy by use of a listening device, stating that Balletti was only working for someone else. Request for Investigation - By memorandum dated December 5, 1960, the Criminal Division requested the Federal Bureau of Investigation to conduct a full investigation, noting that the facts set forth in the report referred to above indicated a violation of the provisions of 47 U.S.C. §605, and a conspiracy by Arthur James Balletti, Fred T. Harris, and possibly Investigations, Inc., Edward DuBois and,others. ag tag VP VMULY ame in TOP SECRET JUL i Tals — Docld: 32423544 Page 93
TOP SECRET -4- investigator who had requested the assistance of DuBois. According to Balletti, at the Miami International Airport he met an in- dividual he identified as J. W. Harrison from a description previously given him and they flew together to Las Vegas. Balletti advised that while in Las Vegas he physically sur- veilled Dan Rowan and that Harrison apparently put some sort of wiretap in Rowan's room there and monitored Rowan's phone conversations and that he, Balletti, had nothing to do with the tap, did not see it installed and never did any monitoring. Balletti denied that he was accompanied to Las Vegas by one Fred T. Harris, stating that Harrison had used a ticket in the name of Harris and, for this reason, the police in Las Vegas apparently assumed Harrison was Harris. According to Balletti, Harrison left Las Vegas before Balletti was arrested on October 31, 1960. Balletti said he could not comment upon the electronic equipment found in his room. An FBI investigative report dated December 22, 1960, at Los Angeles, reflects that on December 21, 1960, Dan Rowan furnished a signed statement to special agents of the Bureau at Los Angeles, California. According to Rowan, after originally signing a complaint against Balletti, he discussed the phone tapping incident with Harvey Silbert and Elias Atoll, members of the corporation which operates the Riviera Hotel and he, Rowan, decided that pressing charges against Balletti would inconvenience him. On November 1, 1960 at the Sheriff's Office, Rowan signed a release and dropped charges against Balletti. Rowan advised that he Docld: 32423544 Page 10
TOP SECRET ~5 - did not give /anyone authority to record telephone calls or to install listening devices in his Room No. 228 or No. 226 at the Riviera Hotel. A Bureau investigative report dated December 30, 1960 at Salt Lake City reflects that on December 20, 1960, Lt. Carl smith advised that Balletti had been charged with in- vasion of privacy, a felony; possession of burglary tools, a misdemeanor; and operating as a private detective without a license, a misdemeanor, with a preliminary hearing set for April 24, 1961 in Justice of the Peace Court, Las Vegas. The manager of Trans World Airlines, Las Vegas, advised that company records reflect that one, F. T. Harris departed Las Vegas on-Trans World Airlines Flight No. 292 at 10:30 a.m., on October 30, 1960, to St. Louis, Missouri, where he made. | connections with Trans World Airlines Flight No. 76 to Miami, Florida. On December 22, 1960, the desk clerk at the Riviera Hotel was contacted and shown nine photographs, including one of Fred T. Harris. The desk clerk advised that he could not identify anyone whose photo had been exhibited as being identical with the individual who checked ‘into the Hotel on October 26, 1960 under the name of J. W. Harrison. The desk clerk added that he did not think he would recognize either Balletti or Harrison if he should see them in person. On December 21, 1960, at Las Vegas, Nevada, Lt. William Witte, Clarks County Sheriff's Office, furnished a list of articles in Balletti's: possession at the time of his arrest. TOP SECRET Docld: 32423544 Page i1
TOP SECRET —~-6- These included a telephone bug transmitter recovered from behind’ the bed in Room 228 at the Riviera Hotel; 17 lock picks; 2 telephone bug devices; one ear phone; one cigarette case containing a miniature transmitter; one Minox camera; one Minox film and other electronic and physical devices, equipment and tools, all enumerated on three typed pages of the foregoing investigative report dated December 30, 1960. The hotel manager of the Riviera Hotel advised that hotel records reflect that from October 27 to November 5, 1960, Rowan made 15 long distance calls to Edgewood, Nevada, and that most of the calls had apparently been made to Phyllis McGuire. The hotel manager also advised on December 21, 1960 at Las Vegas, Nevada, that according to hotel records, Arthur J. Balletti checked into the hotel on October 26, 1960 and was assigned Room 331 and that the registration card bears the . ia notation, "in room with Harrison". Since Balletti's hotel’ bill was in excess of $100 and he was not known, the manager and the chief of security for the hotel went to Room 331 and no one was in the room when they entered. At this time, they observed a yellow pad with the notation of time and a date which referred to Dan Rowan and the hotel manager observed in the top desk drawer what appeared to be a recording device. After discussing the bill with Balletti and receiving a some- what uncertain identification, the hotel manager subsequently notified the Clark County Sheriff's Office that he had ob- served what appeared to be a recording device in Balletti's room and suspected that a listening device might be installed in... Rowan "is ‘edad. The hotel manager and Deputy Sheriff Eversole ut, 17 syd: | DOJ TOP SECRET
TOP SECRET -7- and another Deputy, name unrecalled, entered Rowan's room and the hotel manager observed what appeared to be some type of microphone taped to the rear headboard on the bed in Rowan's room with wires running to the telephone wall box. The hotel manager observed the Deputy Sheriff remove the article from the headboard, This matter was discussed with Assistant United States Attorney Raymond Sutton on December 22, 1960, and he advised Special Agents of the Bureau that he desired to have the re- sults of a full investigation prior to rendering a prosecutive opinion. Mr. Sutton stated that upon the receipt:of results of full investigation he would, in all probability, present the matter to the next federal grand jury which meets in Las - Vegas. L By letter dated January 19, lf ox Assistant Attorney General of the Criminal Division advised the united States Attorney at Reno, Nevada, Mr. Howard W. Babcock, attention: Mr. Raymond Sutton, that the United States Attorney furnish the Criminal Division with his prosecutive opinion upon com- pletion of the investigation and that he not institute criminal prosecution without our prior authorization, unless time is of the essence. According to a Bureau report dated December 12, 1961, at Washington, D. C., Robert Maheu of Maheu and King Associates, Inc., Washington, D. C., advised on December 27, 1960 that he had received a call from a Los Angeles attorney asking Maheu to recommend someone to do investigative work in Las Vegas, TOP SECRET ui ie¢ 9h. Docld: 32423544 Page 153