“Released under the ohn F. Kennedy “ssaesinatiron Records Collection. Act of 1997 (44 WSC F107 Ho ite y. DRTES® EX 142017 a a ~ _ FEDERAL. BUREAU OF INV. STIGATION | REPORTING OFFICE OFFICE OF ORIGIN DATE INVESTIGATIVE PERIOD.* DETROIT DETROIT - 10/30/63 10/8-28/63 © TITLE OF CASE REPORT MADE BY | TYPED BY VERNON G. WALTERS (a) SKF CHARACTER OF CASE JAMES nippieCHOrFA ; DOMINICK EDWARD BARTONE, aka; , ET AL 1/9 FRA; ITSP; MF; FBW;. CONSPIRACY Dp | (ACCOUNT ING INVESTIGATION) Ts REFERENCE: Report of SA(A) VERNON G. WALTERS, Detroit, 10/15/63. ... fo Detroit airtel to Bureau 10/28/63. a, . - p- ALL I a conrnineD q One D= AT DETROIT eee Upon return of Department atic Attorney WILLI etroit, will discuss this matter with him to determine what further investigation or other action is contemplated. DETROIT DIVISION ADMINISTRATIVE Department Attorney FRENCH has confidentially advised that the source of the information set out in the first paragraph of the details of this report is HERBERT L. GROSBERG, 4p Detroit accountant, who isi:believed to have received paft of GC the information from RICHARD CROWTHER, a Teamsters Business Agent . i) aA  -——-— SPEC APPROVED pk SPIN CHARGE DO NOT WRITE IN SPACES BELOW ; COPIES MADE: REC. 59 ae (Be Bureau (29-31889) 1 - Dept. Attorney WILLIAM FRENCH 2 - Detroit (29-1432) . , a 2" OfbL Q DISSEMINATION RECORD ‘OF ATTACHED See EEIA \ \ J ff <7 AGENCY....... ad. 2 | Criminal Division’ REQUEST 7, pl nf VA weceaceee|ee waseseeeeenn ene e | eenenenenneteenne|seeeeeeeeeee TALES OF ov AY HAE ; Sh 2 pare wo! / LA (ig Attention : _Mr.| Walter J, Shefidan'! Fey ; AN A . YALL y, Shek dine Lg Qe. 2 4 yp ‘a -S. GOVERNMENT PRINTING OFFICE 16—76324-1 ; ° _— [eae B-o BV | Sdk100NS | 7 woleee #3 ~~ seek . A LAE COS ia, A  ,  : Docld: 32309756 Page 2?
Released under the dohn F. Kennedy Assassination Records Collection Act of 1997 (af Use Fort Hover. | DATE: 11-14-2017 , . | DE 29-1432 ~ t ' ain Detroit. FRENCH advised that GROSBERG apparently had no first-hand knowledge of the matter and could not provide more specific information; and it was believed that CROWTHER&s information was hearsay. a On 10/21/63, DE 643-C, who is familiar with local bankruptcy matters, advised that CHARLES A. HORIST, former president of Redford Iron Works, Inc. (RIW), had been discharged in bankruptcy in U.S. District Court, Detroit; and among the debts so discharged was a. $240,000.00 guaranty by HORIST to Public Bank in regard to indebtedness Of RIW. Informant was advised by HORIST that he had lost his stock , in RIW through a "fast shuffle" involving HARRY LEVINE; IRWIN KASOFF, an attorney characterized as LEVINE's "boy"; and JOSEPH VERHELLE, former president of Public Bank. VERHELLE allegedly had exerted pressure upon HORIST by calling for payment of loans made by the bank to RIW, Informant did not have specific information as to the dealings between the above-mentioned individuals but believed HORIST might be willing to discuss the matter. - Be - COVER PAGE SNASWSS L _ Docld: 32309286 Page 3
“Released under the John F. Kennedy Hesaseination Records Colleétion Act ot 199? (44 sc” 217 Hote }- ‘DATE: 11=14-2017 . DE 29-1432 | Department Attorney WILLIAM P, FRENCH, Detroit, advised that the Department of Justice had received hear- say information from a confidential source to the effect that about the time of an FDIC examination of Public Bank (PB) aa in 1961 or 1962, a substantial loan from PB to}Re con... AAI _Inc..... (RIW) was in serious difficulty. —— . . el Sales_and.Supply. Company _ @waid)'t ARRYAEVIN = Tee sbbe EVN Tabitics “for the “abowe“uenticned | ‘loan. It was further alleged that LEVINE undérstood he would be relieved of this is Miele ely liability after the examination was ended but VERHELLE —_— failed to do so. Mr. FRENCH. ‘requested that a preliminary investigation be made to ascértain_ whether there was any basis for the above allegations‘and whether there was any connection indicated with the matters under investigation in this case. LENS The following information was included in the FDIC report of examination of PB which began December 26, 1961: Indebtedness of RIW.to PB at the time of examination totaled $470,138.47, consisting of direct borrowing, of _ $440,000.00 and overdrafts of $30,138.47. ERWIN JK «KAS OFF HARRY S. LEVINE and CHARLES, A. ,HORIST, had signed continuing _ guaranties for any and “I stedness of RIW to PB. HORIST had been president of RIW prior to the fall of 1961 when KASOFF reportedly purchased control of RIW and became president. . Borrowing by RIW from PB originated in July, 1960, at $60,000. 00° . ‘and regularly increased to the total of $440,000. 00. RIW : "filed for dissolution" January 11, 1962, but was adjudicated bankrupt January 15, 1962. In addition to the above-mentioned guaranties, PB held as collateral for its loans to RIW $68,481.48 in cash; assignment of accounts receivable; 1,375 “shares of capital stock of RIW; an unrecorded chattel mortgage for $230,000.00 covering inventory; and a real estate mortgage dated October 6, 1961, for $200,000.00. The FDIC examiner concluded there was an apparent violation of Section, 74, \e SESS eee ke ~ Docld: 32309286 Page 4