Released under the John F. Kennedy Assassination Records Collection Act of 1997 (44 Us FitT Hote; . DATE: 11-14-7017 _ ; : ° ~~ .. ra’ f eo CG 62-6006 DETAILS: AT CHICAGO, ILLINOIS This investigation is predicated upon a memorandum dated October 15, 1962, from HERBERT J. MILLER, JR., Assistant Attorney General, Criminal Division to the Director, Federal Bureau of Investigation. This memorandum stated in part as follows: § , \\4 tt q Allegations have been received that_Paul and Allen Dorfman are and have been the liaison between Teamstér Officials and Chicago racketeers. Reports have been received alleging ‘ that Allen Dorfman has supplied subject Hoffa with large sums of money. One of the areas in which misapplication of moneys has been alleged is the Teamster Bonding Program. a “After passage of the Landrum-Griffin Bill in September, 1959, the Teamsters began to set up a program to | handle the bonding requirements made mandatory by the Act. i The Summit Fidelity and Surety Company of Akron, Ohio, a subsidiary of the Illinois Reserve Insurance Company, was - chosen to write the bonds. The United Benefit Fire Insurance Company of Omaha and the Styvesant Insurance Company were to fi | be the reinsuring companies. An Illino j ; was set up by Sol CA Sebi 5 Dorfman, and Irwingre: ¢ racketeers Qi 3 tta, MarshallyCaifano and phi wh iderisio. j gati ‘ganized Crime Prograil) When the McClellan Committee released a letter publicizing | the Dorfman and mob control of the Teamster bond commissions, . | the Illinois Reserve Insurance Company withdrew its subsidiary, Summit, from the program. - \ a De [- bet . | £ _ “The Teamsteca thei searched for another vehicle for their bonding program. Through solysthwartz end San , Francisco criminal lawyer Jakey Bards BS ‘Seonarslooes iopps, reinsuranc’3 7 expert and alleged swindler? was con aeted: Hoppe Opps, a former = associate of Lowell Birrell, has been under indictment in ee Baltimore and New York and has a reputation of gaining control nee } of companies to siphon off good securities while replacing “ Doclda: 32329634 Page 3
DATE: 11-14-7017 5 "Released under the John FF. Kennedy Assassination Records Collection Act of 1997 (44 Ws PioF my =, a“. | \ t ' CG 62-6006 them with worthless ones. Hopps contacted several companies but was unable himself to put the deal together. He did introduce a young insurance man, Charles W. Bray, to Schwartz, Weiner and Dorfman; Bray in the latter part of 1959 succeeded in establishing a progran. "Bray, who inherited an insurance business from his father, had a small company in Illinois called Central Casualty Company, the former LaSalle Insurance Company. He also had an agency, Homer Bray Services, Inc. Central Casualty was unable to be the prime underwriter because it lacked the Treasury list certification required by the Act. Bray arranged for United Benefit Fire Insurance Company of it Omaha to be the underwriter. Byray*s contact in United - Benefit was a man named Earl BaCefry, a vice-president and a director of the company. joie “Bray then arranged for reinsurance up to the first $100,000 with the following companies: Tri-State Insurance of Tulsa, Oklahoma (30%); United Bonding of Indianapolis, - Indiana (10%); and Houston Fire and Casualty, Fort Worth, Texas (15%). United Benefit was to keep 25% and Central Casualty, Bray's company, was to take 20%. The excess over $100,000 up to $500,000 was to be reinsured with Lloyds of | London. “ONp "Bray's agency, Homer Bray Services, Inc., was designated the general agency for the bonding. Bray also set up a local agency, Oxford Agency, Inc., incorporated in Illinois in December, 1959, and Homer Bray Services (Canada), Ltd. Schwartz and Weiner gave Bray the applications that ° Summit had received before it pulled out. These applications reportedly represented approximately 80% of the Teamster locals throughout the country and an estimated $1, 000 , 000 in commissions over a three year period. "Bray arranged a reinsurance treaty for Central Inte 1ental Insurance and Guarant aes of . ama (later of" Nassau, “the Bahamas) = walt édgedly a Hopps . “company, with unknown assets. ~ NODE  NOONS Doclda: 32329634 Page 4
Released under the John F. Kennedy Ageascination Records Collection Act of 1999 (44 USC 2 DATE: 11-14-2017 CG 62-6006 "There have been conflicting reports as to the . percentage shares of the participants but apparently Schwartz and Weiner were to recéive 20% of business they brought. Bray was to get 25% as general agent out of which he would pay his sub agents, and United Benefit was to get 374% from the other companies for | pthe reinsurance. "Angelo sxfianchi, formér President of Summit — Fidelity, joined Céntra oO supervise bail bond activities which Central was also assuming along with the Teamster bonding business. It has been alleged that this was done in order to give Weiner's agency, the American Bail.Bond Company, nationwide coverage through Central Casualty and United Benefit. "The business which should have been a highly profitable one crashed in approximately two years. Various reasons have been assigned for the failure - (1) that Bray, relying on Dorfman's promises to send Central Teamster A& H & Health & Welfare business, as well as various types of insurance related to loans from the Teamsters Pension Fund, overextended himself in anticipation of the added business which never came; (2) that, although the Teamster and bail bonds were highly profitable, Central wrote high risk auto and taxicab insurance which resulted in heavy losses; (3) that money was diverted from the company to Schwartz, Weiner and Dorfman. "In November, 1960, Oxford which had been in Bray's name, was taken over by Schwartz and Weiner and a special account opened at the Exchange Bank in Chicago - with which bank Dorfman and the racketeers have frequently dealt. "In 1961, United Benefit was denied a license in the District of Columbia reportedly because of a false filing. United Benefit was shaky and the decision was made to replace it as primary carrier. "Bray contacted{Resolnte, insuxane CE... COMPANY Providence, Rhode Island, whose é@ président is Lewis Kilo ganstern. mil CON aS AREER 2h re i sei NET PLAYS TT ETERS LE HS, be fm _4- Riler OP VBL AAD” Docld: 32329634 Page 5
“Released under the John F. Kennedy Assassination Records colrection Act of 1992 (4a USC FIUT Hotes DATE: 11-14-7017 . . | , | | ( CG 62-6006 Resolute agreed to become the underwriter. In September, 1961, Central Casualty and United Bonding were canceled as reinsuring companies retroactive to July 15, and in November, Houston Fire and Casualty was canceled and Resolute became the only carrier of the first $1009900%. "The agéncy for the insurance was changed also from Oxford toyfitan Management Corporation - an Irwin Weiner Companyh —— carer = eter eran Seen in eee LL “In December, the state insurance aivectce, Joseph Gerber (of whom there have been reports. of collusion with Dorfman and Hopps) investigated Bray's firm, Central Casualty. . In January, 1962, Gerber announced that the firm was short one and one-half million dollars and shortly thereafter the firm was liquidated. ; "According to an anonymous letter to the Department in early 1962, Bray was summoned to the offices of Bieber and Brodkin, attorneys who frequently represent racketeers, atid was confronted by Phil Alderisio who told Bray that he, Alderisio, was interested in seeing Bray pay his debts and that Alderisio did not go to court to enforce them. Alder&sio told Bray that he expected Bray to pay off debts to the Weiner group, the R. O. R. agency (partners: are Don Roth and Cozie Rothfield) and the Guaranty Bank (the old Southmoor bank) in that order. James Egan of Denver, Colorado, an associate of Bray's who is now in business with Sam Kaye of Miami, was also visited, three days later, in Miami by Santos Traficante who had a similar message for him. "Toll call studies have revealed that the Dorfmans played a prominent role in the Bonding Program though nominally not officers of the companies. "It is requested that Charles Bray and James Eagan be interviewed and an investigation be instituted to trace | the money that went from the Teamster Locals for bonding | -~ 5 - . . \oow’y ner Docld: 32329634 Page 6