PReleased under the John F. Kennedy Assassination Records Collection Act of 1997 (44 St 2107 Hotes. DATE: 011-14-27017 February 1962 February 1962 February 1962 | February 1962 | © In Chicago's Criminal Court, Joseph Drucker authorized the Cosmopolitan Surety Company to back bonds written in court by Central Casualty. Cosmoplitan has taken on 2h of 33 former Central Casualty agents writing bonds there. A. J. Bianchi was Central's Vice President in charge of bail bonds. Cosmopolitan Insurance Company has offices at 620 Sheridan Road. Bianchi serves ties with Central Casualty and joins Cosmopolitan which is handling same business under same arrangements with United Bonding. Pyle said that United Benefit and Cos- mopolitan were negotiating for Cosmopolitan to get on- the Treasury list as soon as possible. One provision being discussed is that United Bonding stay in business with Xosmopolitan for 12 months to see that Cosmopolitan gets license for Federal Courts and gets necessary contacts with agents. Illinois State Commission was participating in the negotiations. A mail cover showed Charles Bray in receipt of mail from the following: Alburquerque National Bank Arvey-Hodges and Montyband, Chicago Central Claims Service, D,llas (Bray Co.?) Davis 509 S. Albert Chicago Feak and Shaffer, Alburquerque, New Mex. First National Bank, Evanston, Ill. (addressed to Assoc. Insurers, Ltd.) Fox Lake Hills Water, Wilwood, Ill. +. Franklin, J. L., Champaign General Accident Group, Chicago Homer Bray Services, Ltd. (Can) P. 0. Box 1535 Nassau Insurers Security Corp. 175 W. Jackson John Philips, Ltd., P/ 0. Box 1535, Nassau (Hopps? ) P. 0. Box 722, Chicago Potomac Insurance Co. 12 Cooper Ave. NW Alburquerque, New Mexico Potomac Insurance Co., W. Jackson, Chicago Savage & Sganzini, Simms Bldg. Albuquerque, New Mexico Stanley, Roberr, Rock Island Docld: 32329636 Page 51
[Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hotey. - DATE tp 11-14-2017 = . ~ 38 - ¢ h February, 1962 ; An article in the Chicago Tribune men- tioned that several years ago Central and Oxford were ordered by Gerber to stop soliciting union business and return all premiums already paid. It is believed that the companies had proposed selling a bond which would in indemify union officers for costs of defending criminal suits against them, which is illegal. | March 1, 1962 Central Casualty liquidated by court order. Bail bond records were not seized by the state but were taken prior to this date by Cosmopolitan. (Is Gerber in league with Cosmopolitan). March 12, 1962 Unsigned undated letter to TCT from Oxford Agency, Inc. Board of Trade Building, 1 W. Jackson Blvd., Chicago, advising renewal rates on the bond at the expiration of policy year ending December 31, 1962, will be reduced substantially if the proposed consolidated bond is approved by the Labor Department. March 135 1962 Irving Benjamin, state auditor, says Nassau assets of Central Casualty are worth- less stock. March 20, 1962 FBI reviewing IBT Local 901's files found a file marked Central Casualty oontaining= a letter (date of letter not set forth by = Bureau in letterhead memo March 23, 1962, San Juan). The letterhead is "Union Insurance Agency of Illinois, 9 East Huron Street, Office of Allen M. Dorfman." The letter is addressed to Frank Chavez, Local 901, 800 Figueroa St., . San Juan, and states: _ Dear Frank: Central Casualty Co. has been on the risk for your group insurance program since December 1, 1960. To date, there have been no premium payments. In checking our records, we find that seven claims have been paid on members of your local. In talking with Mr. Kavner we were Under the impression that six weeks ago we would be receiving premium payments on your health and welfare program. To date, these premiums have not been meee 4 Doclda: 32329636 Page 52
eazed under the John F. * Kennedy Assaseina DATE: ,,.11-14- 20170 1 Maresh 28, 1962 March 30, 1962 - 39 - | Yours very truly, Allen A note typed on plain white paper clipped to the above stated: Frank - If I do not hear from you within the next two weeks, you leave me no alternative but to discuss this with the Intemational Office. Allen (This correspondence indicates that Central Casualty was handling some general insurance for the IBT as well as the bonding.) A. J. Bianchi listed as Vice President Cosmopolitan Insurance Co., 620 Sheridan Road, Chicago; was with Central Casualty up to December 1961. There has been no relationship between Central Casualty and United Bonding on bail since abovt January 1962. General agents and individuals agents are required to post in escrow with Cosmopolitan about 1% bond amounts. Bianchi denied knowing the Dorfmans. Bianchi said that he had been president of Summit for 15 years and that Weiner was Bianchi's general agent at Summit. Letter to TCT from National Oxford Agency, Inc. 1223 LaSalle Street, Chicago, advises that effective April 10, 1962, it will service the Faithful Performance bonds issued by Resolute. (A similar letter was found in the files of the Southern Conference of Teamsters.) Doclda: 32329636 Page 53
[Pereased ‘under the John F. Kenfiedy Assazeination Records Collection Act of 1997 (ii Wee Siete. DATE: 411-14-2017 . a e os . O ¢ ° ~ ho - April 1, 1962 Mid Continent Underwriters Agency Corporation, Room 1100, 100 E. Chicago Ave., Elgin, Illinois is incorporated. Officers are: President: Harry L. Walsh, Jr., East Dundee, Ill. Vice-Pres.: Mathew W. Agner . Secretary: Arthur W. Baum, Chicago, Ill. Walsh had been associated with the Madison Acceptance Guaranteed Insurance Co., Madison, Wisconsin. (See June 3, 1962) April, 1962 Gerber says that Central Casualty issued 11,655 shares of unauthorized stock. Mentions two loans: one for $102,000 from the Guaranty Bond (the bank where Orville Hodges cashed his state warrants) to Bray; the other for an undisclosed amount from the Pan American Bank in Miami to Eagan. . The 11,655 shares were given to Champaign, Tllinois bank as security for a loan to Craig. This was as part of the proposed merger with Professional Life and the shares were to be given for 3,835 shares of Professional Life. However the S.E.C. stepped in and Bray withdrew the deal. The shares were returned and never appeared on the books. . Three certificates for 50,000 shares each were given to Pan American Bank. (Burks said his signature was forged.) Gerber said Bray defaulted on a loan from another Chicago Bank for which he put up 250,000 shares, and a bonding Company was forced to make it good. A spokesman for Central Casualty said Bray lost $500,000 after Gerber announced his investigation. April 8, 1962 Gerber said he saved Central Casualty $150,000 to $200,000 in losses by selling the lease to the building that housed Central Casuelty and Homer Bray Service, Inc, disposing of litigation and with funds from the bail bond escrow account. April, 1962 Illinois Insurance Commissioner's Office examina- tion Central Casualty and Homer Bray Services Inc. has not shown any connection with Allen Dorfman. May, 1962 The Chicago Tribume reported that Central Casualty issued more than 300,000 unauthorized shares and that two : sets of books were used. One set showed three stock cer- sf tificates were issued in 1960 for 50,000 shares each; the other set showed stock certificates with the same numbers were issued in 1961 for 350 shares each. The 150,000 shares put up by Egan in Miami as collateral were not owned by him. | Doclda: 32329636 Page 54
Betease d under” the do i DA TE: ,11-14-2017 ° | «4 ry Sa » May, 1962 May, 1962 May, 1962 June, 1962 July 5, 1962 duly 13, 1962 | . bail bond business. Recently Cosmopolitan bought -4 - Investigators said that management intended to cancel the excess stock but this was never done. Scribner told Wright that Weiner and Schwartz are getting 85% cut. Resolute has not received any premiums yet from United Benefit. Wright said Morganstein runs company kike a dictator and Scribner is treated a @ lackey. United Benefit is still in bail bond business underwritten by Cosmopolitan Company in Chicago. Officers are: President: Irving R. Sylvern Vice-Pres: Jerome Stein Vice-Pres: John A. Pennish Vice-Pres: Martin L. Shape Vice-Pres: John Clifford Secretary: Robert Jackson Treasurer: Peter Bergman Board : Arnold Kruger Board: Allen Kopler Titan has offices at 1019 South State St., Chicago. Charles Bray is working for Mid-Continental Underwriters Agency Corporation, Telephones: 695-0700, MA @-5035). (See April 1, 1962) Charles Bray and James Egan, former vice _ president of Central Casualty, were in Miami with Sam Kaye. Allegedly, Bray, Egan and Kaye are associated in a business deal involving exchange of foreign currency, possibly in Rio de Janiero. It was reported that Egan sufferedaa heart attack while in Miami and was hospitalized at a Jewish Hospital in Miami; his condition is unknown. (Bill Kenny in Miami reported that Kaye and Santos. Traficante are on good terms, that Traficante assisted Kaye in some South American deal.) Sid Cox of Treasury reported that Bianchi went with Cosmopolitan after Central folded. United Benefit had been owed $90,000 by Central Casualty which debt Cosmopolitan paid in order to gét the | out United Benefit. FNU Volin is a director in Cosmopolitan. Cosmopolitan has a lot of new money coming into it; has also gained control of a High Point, North Carolina firm. United Benefit had been writing Cosmopolitan bail business since they have Treasury listing. When that was about to be withdrawn because United Benefit was shaky, Cosmopolitan pledged $400,000 to cover it. The Illinois State insurance examiner in charge of the Central Casualty a | Doclda: 32329636 Page 55