"Released under the wdohn F. Kennedy Assassination Records Collection Act of 1997 (44 USC 2107 Hotes. op DATE : o11-14- 2017 2 ® 2 ¥ e c 8 / : es ; . 5 d e ; . w 3 : a ° . SU 62-2189 7, - CORNELIUS J, _ Steubenville, ' Ohio, has been characté¥ized as a member Of the "Cleveland Syagicate.” No record of arrests for JONES has been located. . - (LAS, ) 8, “connsrtus-Mausnicn FBIn8.1223307, is: associated with the Desert Inn/ |. His arrest record shows arrests from 1925 to 1947, primarily for Bambiing. or possission of liquor. . . 9. aupyiouon ee 31, 14s ‘the casino ‘manager of the Desert “Fon. © ig arrest ‘record from 1929 to. - 1932 included unlawful entry for which he served three years - at. the New York State Reformatory; assault arid robbery, disposition not shown; and violation of the National Prohibi- © tion Act, disposition not shown. BERNA Vormorn OE. stock- holder and shift boas at the Deser t| Inn, was previously associated with the Brady Lake Amusement Company, Brady Lake, Ohio. He is an associate of the. "Cleveland Syndicate" ment ioned previously. He has no known arrest record, Ll, HERMAN mzoNfennenseu,, FB BI #2904744, is the owner. and editor of the newspaper The. Las Vegas Sun, Las Vegas, Nevada, and is a stockholder in the Desert Inn. GREENSPUN was convicted for the violation of the Neutrality Act for shipping arms to Israel. Informant CL 157-C advised that the | following individuals were members of the "Cleveland Syndicate" _ of which MORRIS DALITZ was one of the leaders: MORRIS, KLINEMAN, aka. MORRIS KLEINMAN I S18 HOTHKOPE, “FBI #1128584 (deceased) SAMUEL.."\Game Boy ‘Safi LLER . ’ lawyer and political fixer Docld: 32329866 Page 2?
’ Released under the John F. Kennedy Assassination Records Collection Act. of 1992 (44 USC 2107 Hotes. (DATE : el l- -14-2017 : : 5 Fy ° ° s " ° ©) ' ! ~ ° . a : iN fa t SU 62-2189 ‘ fA B. How: naa aro uired WILBUR CLARK was a relatively unimportant gambler in California prior to 1947. In that _year he came to Las Vegas where he started construction of a large hotel on the “strip;' which is the highway just outside Las Vegas in the direction of Los éngeles, CLARK formed a corporation under the name Wilbur Clark, Incorporated; and stock was issued, The principals of this corporation were members of his family and associates from California, Toward the end of 1947, construction of the hotel (Desert Inn) was stopped because of lack of funds, labor problems, and material shortages. ~ In November, 1950, CLARK testified before the Kefauver Committee at Las Vegas. He related that progress on the Desert Inn was virtually stopped from late 1947 to — 1949, at which time a man named RODISON brought in KLINEMAN and DALITZ from Cleveland who arranged to raise money for completion of the hotel. The Cleveland group acquired -%5 per cent ownership, and the remaining 25 per cent was heid by CLARK and some of the original promoters. The hotel started operation in April 1950. CLARK became President; KLINEMAN became Vice President; and DALITZ became Treasurer, Informant SU 370-C advised that on. September 10, 1958, CLARK and his Desert Inn associates took over the hotel portion of the Star Dust Club, which has more than 1,000 rooms. The same group also managed the Royal Nevada Hotel on October 9, 1958. The Royal Nevada Hotel is located adjacent to the Star Dust Hotel | and contains about 200 rooms. The informant said the _ Royal Nevada will be operated only as a hotel, without — gambling. a The records of the Nevada State Tax Commission Show that CLARK had a 5 per cent interest in the Royal Nevada operation. ~ 4 Docld: 32329866 Page 3
itior { i j Ee}. " Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 3107 Hobe; , DATE: .11-14-2017 . » . ° Pa ° ” © . v ° : ‘7 se 2 i . fy ° © . t ° SU 62-2189 ae ____8U 370-C also advised that CLARK, SAM TUCKER, and KLINEMAN held a meeting during the week of October 1, 1958, with a “Pan American group!’ At that ‘time CLARK and his associates sold their interest. in the international gambling casino at the Hotel Nacional. in Cuba, This informant reported that CLARK and the Desert inn group received about $500,000 for that interest, With respect to the Star Dust Hotel, Las Vegas, informant SU 370-C advised the Star Dust had ; been promoted by one TONY CORNERO, aka. TONY STRALLA, who | died before construction was completed, The venture went into bankruptcy after his death. . / } Prey BE ZL, 2 money to complete construction. This informast said FACTOR permitted the "Chicago Syndicate" (not further | identified) to obtain an interest in the Star Dust, and _ | that JOHN DREW is handling the interest of the Chicago group. DREW was described as the casino manager of the Star Dust and formerly from Chicago. Informant LA. 400-C furnished information —- _ that the events leading: up to the control of the Star ‘Dust by the Desert Inn had been a prearranged matter, . This informant related that the FACTORS had been chosen by the Desert Inn group to handle the completion of the Star Dust Club. Informant said the FACTORS could have put Up some of the capital, but that full control would have been retained by the "Cleveland gambling interests," Cc. Degree of Inflvence - Records of the Gaming Control Board, Nevada State Tax Commission, show that CLARK and the individuals listed under section A above are the owners and operators of the Desert Inn and any other hotel and casino interests described herein, These persons, including the so called "Cleveland Syndicate}' were screened by the Gaming Control Board and were apparently found to be -5- Co Docld: 32329866 Page 4
" Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 3107 Hote). _ DATE: el1- 14-2017 Foy SU 62-2189 acceptable on the basis of information known at that time, The Desert Inn is one of a number of prominent hotel and gambling. spots on the "strip" at Las Vegas. The Star Dust Hotel, since its opening, has been one of the most successful from the standpoint of popularity, The ability of the owners of the Desert Inn who acquired control of the Star Dust Hotel, and who. successfully promote its operation, might be considered as ‘some degree of influence by this group. D. How Influence is Exercised No information is available that any unusual exercise of influence by this group has been used, Since gambling is a legal business in Nevada, the operation of the Desert Inn and other similar ventures is not considered to be a business front except to the extent of being an investment of funds which may have been acquired through gambling in other states: where it is considered illegal. E, Illegal Methods of Furthering Business Interests . No information is available at this time that the Desert Inn group has used violence or any illegal means to stifle competition or to further their own business interests in Nevada, F, Interlocking Influence of Other Areas of TndustriesS -———~C<~;73}ZHTCS;«7SPStCS . Informant CL 157-C furnished information that MORRIS DALITZ and the "Cleveland Syndicate" had financial PA interests in a number of enterprises, including the following: Ohio Villa, later known as the Richmond Country Club, Richmond Heights, Ohio -~ 6 - Docld: 32329866 Page 5
hi i Wsc 2107 Hotes. d der the John F. Kennedy Assassination Records Collection Act of 1992 (44 } " Released un _ K DATE: .11-14-2017 . : . : OQ SU 62-2189 Thomas Club, Maple Heights, Ohio Frolices Club, Miami, Florida Merchants Cafe, Newport, Kentucky Freddie's Club, Cleveland, Ohio Theatrical Grill, Cleveland, Ohio ‘Buckeye Catering Company, Cleveland, Ohio . The above listed concerns were described by the informant as gambling spots or hoodlum hangouts, a . informant CL 157-C advised this group also owned interests in the following concerns Which are believed to be legitimate businesses: Liberty Ice Cream Company., 836 East 100 | . Street, Cleveland, Ohio Ray Coal Company, 2410 East 72nd Street, Cleveland, Ohio - Lubeck Distributing Company, 1820 East ; 30th Street, Cleveland, Chio Pioneer Linen Supply Company, 3611 Payne _ Avenue, Cleveland, Ohio . i \ a a Docld: 32329866 Page 6