( Released ‘under the John F. Kennedy Assassination Records Collection Act of 1999 (44 Use F107 Hotes. DATE: 11-14-2017 ‘ , — CG 62-6006 premiums through the various companies in order to determine whether or not the funds may have been diverted to Chicago racketeers or Teamsters officials. This investigation should include a determination of the amount of commissions received by Weiner, Schwartz and Bray - and the identity of the bonding agents. ; "The investigation should also determine the -recipients of the profits of the bail bond business since this is alleged to be in the control of the racketeers. In that connection, it should be noted that the Cosmopolitan Company of Chicago took over Central's bail bond business in early 1962 and has since acquiréd control of United Benefit Fire of Omaha. Cosmopolitan officers and directors include the names of volin and Bergman. Determination should be made if the Volin is the same person who was in the Weiner-volin agency and if. the Bergman is related to the Bergman-Lefkow agency frequently used by Dorfman. a "perhaps significant is the fact that Irving Benjamin, the Illinois state insurance investigator in charge of the Central Casualty review, has since taken a position. with Cosmopolitan. "Potential violation include = 13 (c) of the welfare and Pension Plans Disclosure Act, violation of 18 U.S.C. 1001 in connection with filings required by Treasury and Interstate Commerce Commission, and other Government agencies, tax evasions, mail fraud and.interstate transporta~ tion of stolen property." | SRS Enclosed with this memorandum was a copy of an anonymous letter to the Department which was postmarked at Chicago, Illinois at 2:00 pem. on April 30, 1962. This letter stated as follows: "The Irwin Weiner-American Bonding Agency~ Teamsters Bond-Guaranty Bank-Bray~Central Casualty-Crime Syndicate tieups - -— G’'’= S9 OB Sw NIA Docld: 32329634 Page 7
“Released under the’ wohn'F. Kennedy Assassination Records Collection Act or” ‘T9744 sec ‘2107 Hotes. DATE: 11-14-2017 . . . ‘ ; : I ( \ CG 62-6006 "In 1959 the Bond required of the Teamsters Union officials and employees under the terms of the Magnum-Griffin act was written by the Summitt Insurance Company. "The broker of record was. the American Bonding Agency of Chicago which is headed by Irwin Weiner. "The Chicago Tribune and other papers claimed that Weiner was a well.known partner and associate of gangsters and \ insinuated that. Allen Dorfman, Hoffa's: favorite broker, and perhaps Hoffa himself were sharing in commissions estimated at close to $1,000,000. . "The theat' on the Summitt Insurance Company was too great for that company's owners to stand. (The Allen Blank-Reserve Insurance Company group). . They cancelled the Teamsters bond and cancelled. the ‘General Agency' authority which Weiner~American Bonding Agéncy held for the writing of bail bonds nationwide. “Weiner and his associates were desperate for a market. "Charles W. Bray, President of. Central Casualty Company of Illinois, President of Homer Bray Service Inc. (a General Agency) and President of Oxford Agency, Inc. .(a local agency) developed a market via the United Benefit Fire Insurance _ i Company of Omaha, Nebraska. “Bray's company, the Central, took heavy reinsurance but it could not ‘front' the Teamsters Bond because it was not on the U. S. Treasury Approved List. "The deal that Weiner and his associates made with Bray was that Bray's Oxford Agency would get the entire commission on the Teamsters Bond but that Bray would secure for Weiner- American Bonding Agency a nationwide Bail Bond General Agency ; for both United Benefit and Central Casualty at extraordinarily high commissions (60% on the published basic 2% rate and the AGORA? OVS Docld: 32329634 Page &
“Released under the John F. Kennedy Assassination Records Collection Act of 1997 (44 USC DI0T Hotes. DATE: 11-14-2017 CG 62-6006 right to keep 100% of anything above the published rate that they could gouge out of customers). “Bray to have no.interest in the Bail Bond General Agency. "Things went as planned and Bray, quite truthfully, testified before Examiners of the McClellan Committee that he and his family were the sole owners of Oxford Agency and that Oxford Agency was the sole broker on the Teamsters Bond. 'tThe loss record on the Teamsters Bond was excellent and the loss record» on. the Bail Bond business was even better. “United Benefit, central Casualty, Oxford Agency, American Bonding Agency, Bray and Weiner were all doing well and 1960 saw a great intimacy growing up between the Bray and Weiner groups and insurance activities between them expanded to Taxicabs, Financial Guarantee Bonds, Mortgage Guarantees, Contractors Completion Bonds, etc. ‘Gentral Casualty and the Bray interests needed more capital to handle these lines and so did United Benefit, whose then President, Earl Cefry, was an intimate friend of Bray. ‘Weiner arranged for a $200,000 loan to the Bray group from the Exchange National Bank of Chicago secured by a Guaranty Bond of United Benefit and than later for a $150,000 loan | from the Southmoor Bank (now Guaranty Bank) of Chicago secured by the pledge of Central Casualty stock. | "Bray? S Vice President Jim Egan also negotiated a $150,000 ; loan from the Pan American Bank of Miami, which loan was also secured by Guaranty Bond of United Benefit. "The capital of both Central Casualty and United Benefit was increased, Central's largely by indirect subscriptions from those who did the borrowing and United's in part from this method. Docld: 32329634 Page 9
‘Released under the John F. Kennedy Assassination Records Collection Act of 1997 (44 USC 3107 Hotes. DATE: 11-14-7017 : "t “s CG 62-6006 "tn 1961 things began to go bad. The Teamsters Bond and _ the Bail Bond business remained very profitable from an under~ _ writing standpoint but the orthodox agents of both Central and United Benefit began drawing away from these carriers _ because of the ‘gangster types' with whom they were forced to deal. "The loss record on the taxicab business was horrible and the claims under financial guarantee and contractors bonds, tremendous.. . "The Chicago Tribune and other papers started a campaign against Irwin Weiner as being the front for Crime Syndicate ownership | of a Chicago Lard. Processing firm 'Twin Foods of Illinois.* . "Court action over the licensing of Twin Foods ensued and the courts held that ‘unsavory ownership and affiliations’ had been proved. "The Company's license was refused and the papers shrieked about Weiner and. his Crime Syndicate pals--Sam (Tootsie) Bataglia, Milwaukee Phil Alderesio, Joey Acaro,.etc. They tied in the American Bonding Agency and rehashed the Teamsters Bond situation. "This was too much for the British controlling stockholders 4 of United Benefit. In May 1961 they fired the company's President, Earl Cefry, and cancelled all contracts with the Bray, Central Casualty, Oxford Agency, American Bonding Agency group. "Bray was able to replace the Teamsters Bond with the Resolute Insurance Company of Rhode Island, through that Company ' s President (Morganstern of Hartford) and to once again get heavy reinsurance back for Central Casualty Insurance Company. . Docld: 32329634 Page 10
Released under the John F. Kennedy Assassination Records Collection Act of 1997 (44 USC 2107 Hotey. DATE: 11-14-2017 CG 62-6006 "The United Benefit gave an extension of six months for the Bray-Weiner group to get a new market on bail bonds and meanwhile Bray's Central Casualty Insurance Company granted 100% to United Benefit. "All other classes were cancelled by United Benefit. . "Without United Benefit's help the Bray group simply did not have enough resources to weather the storm caused by loss of agency plant, terrific losses on taxicab fleets, financial guarantee bonds, contractors bonds, etc. and they rapidly approached insolvency. \ ‘ s ss 2 2 "Weinér and his associates saw ‘the handwriting on the wall' and began to make moves to protect themselves. "Charles Bray was ordered to appear at a meeting which was Chairmaned by Milwaukee Phil Alderesio, flanked by several ‘sinister ‘guards' (sic:). "At this meeting Bray was instructed to sign his Oxford Agency stock in blank and turn same over to Irwin Weiner, "There was a considerable display of 48's and a very blood curdling discussion as to what would happen to Bray and his family if he did not obey. ; “Bray signed and at a later meeting held in the offices of Harris & Burman, control of the Oxford Agency was turned over to Weiner and his associates (i.e. control and ownership of the ° | commissions on the Teamsters Bonds). "A little later Bray was instructed to appear at another meeting and this time he was ordered to have the Central Casualty Company cancel its very profitable reinsurance of the Resolute on the Teamsters Bond. (This so that Weiner- Oxford et al would get more commission by replacing the | reinsurance elsewhere). - 10 = Doclda: 32329634 Page i1
Released under the John F. Kennedy Assassination Records Collection Act of 1997 (44 TSC a107 notey. DATE: 11-14-2017 CG 62-6006 "Bray, frightened to death, obeyed. "Thus, Weiner andhis associates became the sole owners of the Oxford Agency arid the huge commissions on the Teamsters Bond. "Later, fearing an investigation of Oxford, Weiner arranged for Morganstern of the Resolute to transfer the brokerage to a new corporation owned by Weiner et al--The Titan Agency. "In December 1961 the Illinois Insurance Department took protective custody of Central Casualty Insurance Company. In February 1962 Central Casualty Company was put into liquidation. “Bray and his various companies literally ‘owed everybody' and his biggest source of income, the Teamsters Bond, had been taken away at gun point. "Again Weiner called Bray to a conference. ' Again Milwaukee Phil Alderisio was the spokesman. "(Bray states that at the meeting there were also present four elder statesmen of the Crime Syndicate, but he will only divulge the names to those from whom he feels he may get protection. ) "At this meeting Bray was told that Weiner was “stuck' for the return premiums and outstanding losses on the taxicab lines placed with the defunct Central Casualty Company as well as for the return premium on the Teamsters Bond reinsurance (which had not been paid by the time the Illinois Department stepped in). “Bray protested that the Teamsters Bond commission he had asstgned to Weiner far exceeded the sums under discussion but Alderisio . ‘remained adamant and Bray was told that they didn't dare where or how he raised the money. The Weiner group must get Theirs first-—- and soon--or else!!! - ll - \ ‘ ate SOHO ASA Docld: 32329634 Page 12
Released under the John F. Kénnedy Bssassination Records Collection Act of 1997 (44 WSc FIT Hotes. DATE: 11-14-2017 : ; CG 62-6006 "They then added that the R.O.R. Agency of Chicago was also stuck for return premiums and losses and that the same agent's partners, Don Roth and Cozie Rothfield (of the Kansas City Mob}, were behind the Guaranty Bank. (old Southmoor Bank of Chicago).. "Bray was told that R.O.R. and Guaranty Bank must be number 2 and number 3 on the payments list, any laws of receivership to the contrary. "About a week later, former Vice. President Jim Egan of Central Casualty, who was in Miami, (where he has a local agency) got a call from Milwaukee Phil Alderesio. tAlderesio called on Egan and told him that he knew that Egan, Bray and a man named Sam Kay owned a firm speculating in foreign currency. , "He repeated the instructions given to Bray by 'the Mob' and told Egan that if he wanted to live, all money must go first to Weiner et al, then R.O.R. and the Guaranty Bank. To Hell with what was due to the Pan American Bank or anyone else. "Later the reputed big time mobster, Santos Traficante called on Egan and repeated the warning. “Both Bray and Egan are terrified but they will not rush in and volunteer information as they are afraid of being tailed; in. fact Bray was very cautious and not at all helpful when the F.B.I. interviewed him. Now, however, he realizes that his only safety lies with the U. S. Government and if proper government authorities call they will give all possible help. « "Bray's home address is 820 North Glenayre Road, Glenview, Illinois. Egan's home is in Denver but he is staying in Miami at the Wautilus Hotel and works out of Sam Kay's office, Miami, Jefferson 1-0408. "As to the Teamsters Bond. Two different companies have offered to write same at a saving of over $200,000 but it remains with the Resolute because that company has agreed to pay 85% prefit commission to Weiner's Titan Agency and Titan has informed Morganstern of the Resolute that they are in a position to see that no losses wili be reported to his company. ° -12- YIBGIde er Docld: 32329634 Page 13
“Released undér the dohn FS “Kennedy ‘Assassination Records Collection Act of 19597 (44° 08t FIT Hotes. DATE: 11-14-2017 CG 62-6006 | | a | "WEINER-AMERICAN BONDING-ET AL | , “With further reference to the American Bonding Agency~Irwin Weiner United States-wide bail bond operations: "Pretty generally all state insurance department officials and United States Governmental department officials with whom I have talked are thoroughly aware of the fact that the control of Bail Bond facilities is an absolute eSsential to the rackets and to organized crime. "(An idea of how important this is may be gained from the facts which show that to get bail bond facilities Weiner, et al originally gave up the huge commission on the Teamsters Magnum Griffin Act Bond.) "From what Weiner and others have stated it seems that the Treasury Department and the F.B.1I. have both extensively inves- tigated his organization without being able to discover the facts. "The reason for this probably lies in the very nature of the bail bond business which is quite unlkke any other form of insurance | activity. "On bail bonds the published tariff rate differs by state but is on average $2.00 per $100 of bond granted. | "Commissions paid to a bail bond agent vary from 25% to 60% of this basic tariff premium (depending upon volume, past loss record, etc.). "Generally speaking the books of both the insurance company and the bail bond agent clearly reflect these figures, and taxes are properly paid on same. "As different from any other form of insurance coverage, the bail bond business is , however, allowed to charge a policy fee or service fee and this fee runs anywhere from $8.00 to as high as $20.00 per hundred of bail bond coverage. "In some states, such as California, it is mandatory that this service fee show on the face of the policy but the majority of states are pretty liberal in allowing the 'fee' to be a personal transaction between a bail bond agent and his client. - 13 - \ AYO SaNOAS ae ee = ee, 4 Docld: 32329634 Page 14
“Released under the John FL Kennedy Assassination Records Co DATE: 11-14-7017 . = fos ‘oe : CG 62-6006 "Since the insurance company gets no part of this fee, it isn't very curious and is not interested in the bookkeeping. "In many instances the fee or a portion of same is paid in cash and for a big agency, such as Weiner's, the cash trans- actions are in very large figures indeed. "In addition to the premium and the policy fee most clients have to put up collateral and here again is a field where the bail bond agent has many possibilities of making money. "Frequently, for a hard pressed client, the bail bond agent will demand an interest in the man's business, a share in the ownership of his real property, etc.;.or else let him go to jail. "The biggest volume of bail bond business is, however, definitely directed by those who control organized crime. When organized crime guarantees one of its minions — no collateral is taken by the bail bond agent and on top of that he splits his policy fee with the organization directing business to him. "Generally speaking, each major segment of organized crime has its own major bail bond connection and these are usually rather loose partnerships which are very difficult to trace. because what is due from one partner to another is often settled through some apparentlymunrelated business transaction. ‘(For example, Weiner has boasted, and those who were in the know in Cuba have confirmed, that for his services to Phil Alderisio--Santos Traficante, etc. he was given a substantial interest in the Deauville Gambling Casino and the Capri Gambling Casino in Havana. When Weiner last talked about this he was crying about his loss of a vast fortune occasioned by Castro.) - 14 = cVio NED Docld: 32329634 Page 15 Se, VAG SS ITection Act of 1992 (44 USC DIUT Wate) aoe