AGENCY: FBI RECORD NUMBER: _ 124-90086-10265 RECORD SERIES: HQ AGENCY FILE NUMBER: ~* CR 92-5505-230 Document Information ORIGINATOR: FBI FROM: CG TO: HQ TITLE: DATE: 09/19/1963 PAGES: 16 SUBJECTS : JOSEPH STEIN DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT CLASSIFICATION: — Unclassified RESTRICTIONS: 4 CURRENT STATUS:  Redact DATE OF LASTREVIEW: 07/14/1998 OPENING CRITERIA: INDEFINITE , COMMENTS : RPT v9.1 JFK Assassination System Identification Form Agency Information HW 45959 DocId:32329608 Page 1
CG 92-1037 CG 6443-C advised SA JOSEPH G. SHEA on May 24, 1963, that he recently learned from LESLIE KRUSE, en route to O'Hare Field, where KRUSE was to:take a plane to Florida, that KRUSE is greatly concerned, and stated that the "G" must have an “outfit" guy as an informant. KRUSE stated. their information is very accurate lately concerning some matters. KRUSE speculated the informant has to be an individual very close to the outfit. KRUSE stated they suspected FRANK FERRARO, since they consider him a weak individual; and they also suspect former alderman JOHN D'ARCO, as well as LOUIS BRIATTA, as the informer. CG 6443-C advised SA SHEA on June 14, 1963, that KRUSE intended to leave for New York, this date, where he stated he was going to visit a medical specialist for a kidney or bladder disease. Informant stated that KRUSE has been instructed by his Chicago doctor to maintain a careful diet, and to visit the specialist in New York City. He said that, during this conversation, KRUSE made the remark, "This is the beginning of the end for the rackets. Everybody is a stool pigeon, even our own guys are leaking the information, and the FBI is over zealous. Everything is locked up." During this conversation, KRUSE talked again about his pet peeve, which is the Hot Springs, Arkansas ,area? where gambling operates wide open in Senator MC CLELLAN's home state. KRUSE cannot understand why gambling flourishes in Hot Springs, where it is against state law; and yet, here in the local area of Chicago, gambling is being closed down, largely by the FBI. CG 6443-C advised on June 21, 1963, that he had talked with KRUSE recently, and KRUSE had discussed a gambling venture, presently in the development state, in the Dominican Republic. KRUSE admitted that he has been making frequent trips to the Dominican Republic from Florida, for the purpose of establishing gambling there. KRUSE said this is a perfectly legal venture, and that the financial backers of the operation in the Dominican Republic will be -C- \ \ 1 ’ HW 45959 DocId:32329608 Page 2 COVER PAGE gl PORP- Meron
92-1037 KRUSE; RALPH PIERCE ; MMEYER LANSKY, top hoodlum of Florida; ROCCO FISCHETTI; JOE FISCHETTI; JOHN DREW, Las Vegas gambler; and PETE LICAVOLI, Detroit hoodlum. Informant stated that KRUSE said he intended to make additional trips to the Dominican Republic, by way of Florida, and that he might use the informant as a courier for him to the Dominican Republic; and, on occasion, might have the informant accompany him on this trip. KRUSE indicated further that, when he makes the trips to the Dominican Republic, he picks up envelopes and letters to be delivered to persons there. KRUSE. indicated that he makes the trip approximately every two weeks, CG 6443-C advised SA WILLIAM A. MEINCKE on July 2, 1963, that he recently learned that one HERBERT MESSE, an individual recently appointed by Mayor DALEY to the City of Chicago Zoning Appeal Commission, has been going recently to the Rondout and Old Homestead gambling establishments run by MC GUIRE, SMITH, and GRIFFIN, . The informant advised that he learned through MC GUIRE that on the night of June 28, 1963, the Sheriff of Lake County had plannéd a raid at the Rondout gambling establishment and that apparently he had secured a warrant. MC GUIRE stated that “the whole thing was tipped early in the day." MC GUIRE did not elaborate further, however, Stated that CHUCK SMITH had received a phone call in the afternoon of June 28, 1963, apparently alerting him to the ° possibility of a raid that night. MC GUIRE stressed in his conversation that the tip came from a "civilian" and not a law enforcement agent. MC GUIRE went on to say that about 9:30 P,M, another phone call had been received at the Rondout establishment confirming the fact that there would be a raid that night. Thereafter, MC GUIRE advised “he - D-=- COVER PAGE HW 45959 DocId:32329608 Page 3
CG 92-1037 hurriedly got rid of the few gambling customers who had appeared that night. MC GUIRE laughed and said that they had to get their own cars, and several of the patrons got their clothing all messed up falling in the mud next to the parking area. It is to be noted that the raid was planned by the Lake County Sheriff's Office based on information supplied by the FBI. A warrant and complaint had been issued by the Lake County State's Attorney's Office concerning this raid. The warrant and complaint were drawn on the afternoon of June 28,.1963. Informant advised that MC GUIRE also told him that SMITH in particular was really shaken up by the impending raid. MC GUIRE advised that they felt they could control all the law enforcement agencies in Lake County but if they were forced to act in some way their control was lost and this made SMITH and GRIFFIN extremely dubious, MC GUIRE advised that SMITH told him that “he did not want any more of the gambling in Lake County advising that he was wealthy in his own right and "too 6id" to take any more chances," The informant advised that the matter at present is "up in the air" with the gambling shut down at least temporarily, if not permanently. He advised that MC GUIRE and his associates were all lamenting the fact that they were shut down before their big week end, that of the 4th of July. CG 6587-C-TE advised SA MEINCKE on July 3, 1963, as follows: Informant advised that he was present at the Rondout gambling. establishment on Friday, June 28, 1963, He advised that he arrived at the establishment about 8:45 P.M. and immediately sensed that something was different from any other night. he had attended this establishment. He advised that between 8:45 and 9:30 P.M, — i in COVER PAGE HW 45959 DocId:32329608 Page 4 Se ¢ > |