OF INQESTIGATION FEDER§L BU REAU “ LRERQRTING OFFICE ; OFFICE OF ORIOIN NEW. ORLEANS | NEWSORLEANS TITLE OF CASE DATE _ 4A43./69 : REPORT MADE BY, 4 INVESTIGATIVE PERIOD : 10/29/68~ 3/28/69 TYPEL CARLOSGIARCELLO, aka’ ‘(sa Joun c. MC CURNIN, II \ 8 | CHARACTER OF CASE \ . ‘ . \ . 4 VWs — : - REFERENCE : Zh Ao New Orleans report of SA JOHN C. MC CURNIN, II, 3 11/25/68. . oo -pP- O oo - INFORMANTS : | ae Identity of Source Contacting Agent - a . NO. T-3 is NG 1434-C-TE SA THOMAS L, COLARELLI; Rr | - ; SA JACK EVANS MEHL a Pe i yo *. (NO T-9 is NO 1232-C-TE .° SA REED W. JENSEN & An CLAIMED [X} NONE CASE Was BEEN: FIN es | CONVIC. |AUTO.| “FUG SAVINGS ACQUIT- Recoveries gf TALS a _ PENDING OVER ONE YEAR [xlves [_]N PENDING PROSECUTION . _ lYES By at ‘= 7 meg SPECIAL AGENT + . APPROVED OVER SIX MONTHS DO NOT WRITE IN SPACES BELOW G- foresa ¢ foz- 2713 = 1 - USA, New Orleans 1 - Departmental Attorney OWEN NEFF, - ° New Orleans | -~ Fackson - Memphis (INFO) - HouSton 4 1 Z - Mobile 10 - New Orleans -(92-36) —+ Disseminatio 4 Record of Attached Report r, Criminal Division, Request Recd. : . Date Fwd. -How Ewd. BAAPR2 31969 / pbocida: 32577900 Page 1 ; , 7 | coven PAGE Ore g3 q
NO 92-36 - JCM ~- smi INFORMANTS (CONTINUED) : Ide NO NO NO NO NC NO NO NO NO NO . NO Docld: 32577900 Page 2 Identity of Source T-18 is Detective JERRY WILLIAMSON, Jefferson Parish Sheriff's Office (By Request) T~20 is PCI CAROLYN KAY MORRIS T-21 is NO 1697-PC T-27 is NO 1594-PC T-28 is Detective ASHTON CROSSEN, Jefferson Parish Sheriff's Office Intelligence (By Request) T-29 is Captain FRED ROTH, Jefferson Parish Sheriff's Gffice Intelligence (By Request) T-36 is New Orleans Police Department Detective CHARLES PARKS (By Request) T-38 is PCI JANICE GROSS T-40 is Former NO 1715-PC T~41 is NO 1561-PC T-42 is NO 1499-c B COVER PAGE Location of Information SA JOHN C. MC CURNIN, II SA PATRICK J. COLLINS, JR. SA JOHN C. MC CURNIN, JR. SA TROY H. GIST SA JOHN C. MC CURNIN, II SA JOHN C. MC CURNIN, II SA JOHN C. MC CURNIN, if SA JAMES W. SMITH SA-THOMAS L. COLARELLI SA JOHN C. MC CURNIN, i SA TROY H. GIST
NO 92-36 JCM - smj INFORMANTS (CONTINUED) : Identity of Source NO NO NO NO NO NO NO NO NO NO NO Doclda: 32577900 - Page 3 T-43 is SA 775-C-TE T-44 is NO 1712-PC T-45 is NO 1635-R (PROB) T-46 is NO 1435-C-TE T-47 is DAVE LETTERAL, Jefferson Parish Sheriff's Office Intelligence (By Request) T-48 is Mr. BILL GREEN, Manager, Bourbon Orleans Hotel 7-49 is NO 1748-Pc {T-50 is Officer BILL BARFIELD, Long Beach, California Police Department Intelligence T=-51 is NO 1487-C T-52 is NO 1734-PC T-53 is Mr. HENRY THCELE, Small, Business Administration Employee wos C COVER PAGE Location of Information San Antonio Agent. SA PATRICK J. COLLINS, JR. SA NATHAN ©. BROWN SA THOMAS L. COLARELLI SA JOHN C. MC CURNIN, II SA JAMES W. HARDISON SA JAMES W. HARDISON Los Angeles Agent SA JAMES FRANCIS WRIGHT SA JOHN C. MC CURNIN, II;. SA THOMAS L. COLARELLI Sa JOHN C. MC CURNIN, Il
No 92-36 . JCM - smj | LEADS: / > HOUSTON _~ AT HOUSTON, TEXAS. 1) Wild report results of indices “a cheek and credit check concerning BERNARD GERSZON. 2) Will maintain contact with HQ 1293-PC Goncoynns subject. 5 3) Will, if feasible, interview PHILLIP YAMIN, . Pepperoni Pizza Village, and determine iif he knows MARCELLO and, if so, to what extent. ‘y, JACKSON — | AT BILOXI, MISSISSIPPI. Will check with. established sources at the Broadwater Beach Hotel re MARCELLO and his. relatives visiting this area of Mississippi. : AT GULFPORT , MISSISSIPPI. 1) Will determine if an _|individual by the name of GUISSIPPI or COSANDRA is known_to ‘authorities of that area and if he is associated with MARCELLO. > - 2) te the identity of such an individual is established, . will attempt to determine if. he has recently _been in Vicksburg, Mississippi for the purpose, of establishing prostitution and gambling. -> AP. VICKSBURG > MISSISSIPPI. 1) Will.imterview BERNIE | BIERMAN and C. W. CAPPAERT, Manager, Magnolia: ‘Manufacturing ‘Company, re their association with CARLOS MARCELLO , It being noted that. BIERMAN listed as staying with JACK KENT in adjoining room, Bourbon Orleans Hotel, “to CARLOS MARCELLO and other New Orleans hoodlums over Mardi Gras period, \ 2) Will interview JOHN M. KENT, Post Office Box 127, re his association with MARCELLO. Determine if he owns aircraft and if he has ever flown MARCELLO between New Orleans } 5 é D COVER PAGE DoclIda: 32577900 Page 4 ae : oe
NO 92-36 JCM - smj and Mississippi. Determine if he is related to DICK KENT, who formerly ran the Speakeasy Lounge, which was a gambling caSino located outside Lafayette, LouiSiana. . MOBILE AT MOBILE, ALABAMA. -Will interview KENNETH O'DAY, and determine if he is. acquainted with CARLOS MARCELLO. Will determine if he received financial. help from MARCELLO when purchasing Blue Lake Manor as President of Gulf Coast Technical Institute for $21,000 ,000.00 at Pascagoula, Mississippi. Mobile note that PCI WAYNE HOUSER, of unknown reliability, advised MARCELLO, in the past, had made an attempt to take over FHA hous ing. project in Pascagoula, Mississippi. NEW ORLEANS AT BATON ROUGE , LOUISIANA. Will do credit and criminal investigation and obtain Dun -.and Bradstreet report on Bagwell Neal Contractors. AT COVINGTON, LOUISIANA. 1) Will conduct credit and criminal investigation re LEON POIRIER, 408 East Thomas | Street. 2) Will review property records, St. Tammany Parish, to determine if LEQN POIRIER or LUCILLE MICELI have purchased-or sold property. in the parish. AT DES ALLEMANDS , LOUISIANA. Will conduct credit “and criminal investigation re ROOSEVELT DUFRENE, Box 193. AT DESTREHAN, LOUISIANA. Will conduct credit and criminal investigation re HARRY QO. DOLSEN, General Manager, Bunge Corporation. _ COVER™ PAGE Doclda: 32577900 Page 5
NO 92-36 JCM - smj: . \ fs - NO 1734- -PC made available the. following - information concerning real estate transactions involving MARCELLO and corporations controlled by him. This information contained in the files” of MARCELLO. ‘at his office: at the Town and ‘Country Motel, Airline Highway , . Metairie, Louisiana: re + An agreement to purchase . 1,785 acres: of ‘land, St. Charles Parish, belonging to the ‘Highway, Land Company , An agreement to purchase Sections 4, 39; and 40. in) Jefferson Parish from the Highway Land Company,. ‘Inc. ’ dated. 9/1/68; total purchase price for.land located in St. Charles and Jefferson Parishes St, 000, 000. ,00.. Ss Poe . a 7 «This ‘agreement ‘signed by ‘JOSEPH 'C. MARCELLO, the son of CARLOS. MARCELLO, President’ of Gems, Inc., which is owned by MARCELLO. . _ Contact being maintained with NO 1734- PC re ‘full details of this purchase and particularly for what purpose ‘this land is to be used by MARCELLO. - 7 NO 1734-PC. made available contracts of sales of 4 lots ‘Ietated on Lapalco Boulevard, Jefferson Parish .,. which o reflect certain corporations, owned by MARCELLO, . ‘have: ‘sold- the above lots located on Lapalco Boulevard to. either members of the ,MARCELLO family or close associates. OX. ' Plot E-6 : - Vendor - ‘Garnet Lands , Tn Cc. 212, 585: ‘square’ feet. : gy : COVER “PAGE es fa ~Doeld:32577900 Page 6 | os hoo
NO 92-36 JCM - smj Plot E-2-A_ cs oO Vendor ~- Garnet. Lands, Inc.. and Emerald Lands, Inc. .105.,842 square feet Price - $79,395.00, payable in three annual installments beginning’ 3/21/69 Vendee - ERNEST BARRIOS, husband of JOYCELYN TRACEY; Plot B-1 . a a Vendor - Gem,» Inc. ,-Garnet* Bands, Inc. and Sapphire Lands, Inc. a B1, 800 square feet Price - $61,425.00, payable in three annual | installments beginning 8/18/68 Vendee - JOHN E. BURGA, divorced husband of BEVERLY CLAIRE CARTER; Plot E-5 Vendor - Garnet Lands, Inc. and Emerald Lands, Inc. 106,295 square feet ae Price - $72,746.00, payable. in’ three. annual installments beginning 3/1/69 © Vendee - EDWARD E. CRUMPLER , husband» of SARAH SILVESTRI; Plots D and E, Tract 9, Section C Vendor - Sapphire Lands, Inc. Price - $55,527.75 a, Vendee - SIMON SHLENKER, III and HERMAN E. FREITAG - NO 1734-PC made available the following information concerning CARLOS MARCELLO and his associates: _ N COVER PAGE eg, Dpcld:32577900 Page 7 , - oo \
NO 92-36 JCM - smj NO 1734-PC telephonically contacted agents late evening of 11/21/68, requesting a recontact on early AM of 11/22/68. Contact. made, and NO 1734-PC advised that, after considerable wrestling with his conscience during the night, he had come to the conclusion that he would cooperate without reservation. He stated he would do so only with complete assurances that his identity would never be revealed outside the Bureau. Thereafter, NO 1734-PC furnished the following information: , ~ CARLOS MARCELLO is extremely upset with PHILLIP | 7 SMITH because MARCELLO's son, JOSEPH C. MARCELLO, is a possible target of a Federal Grand Jury subpoena for having witnessed the bill of sale between SMITH and CHARLES. EVANS, the latter representing himself as LEONARD CUNNING, who was killed in gangland fashion, in Kansas City on 10/1/68. NO 1734-PC stated that MARCELLO has ordered PHILLIP SMITH to seli:.off real estate investments which would . normally be held for long term speculative investments because MARCELLG is in dire need of ready cash. NO 1734- PC. Stated that PHILLIP SMITH has been associated with: MARCELLO * since 1950 and,outside the immediate family, is the most trusted confidant MARCELLO has, handling all his’ real estate transactions and advising him on a daily basis regarding his investments. , NO 1734-PC stated that GIUSEPPE GAGLIANO (former under boss in New Orleans) met with MARCELLO in his office at the motel yesterday for unknown reason. NO 1734-PC advised that FRANK GAGLIANO has approached MARCELLO for money to purchase a home and was turned down by MARCELLO. NO 1734-PC stated MARCELLO offered to. lend GAGLIANG the $300 closing costs but no more. NO 1734-PC stated that an individual, known to him as Dr. FRANK (RAGANOG), attorney for SANTO TRAFFICANTE , was in town approximately a month ago and met surreptitiously with MARCELLO Oo COVER PAGE Docld:32577900 Page @
NO 92-36 JCM - smj and other unknown individuals. Dr. FRANK stayed at the Bourbon Orleans while in town. NO 1734-PC stated that MARCELLO ordered him to send to Dr. FRANK on 11/21/68, a package containing the complete deposition given by MARCELLO to Life Magazine recently. NO 1734-PC advised that the reason for the coolness between JOSEPH PORETTO, suspected LCN member, and MARCELLO is that PORETTO allowed a sewerage bill in excess of $10,000 to accumulate on the Town and Country Restaurant and Lounge, which was billed to the motel. _PORETTO refused payment of this bill, and NO 1734-PC advised MARCELLO: that, inasmuch as. PORETTO's lease option had expired, to put him on a month-to-+ month rental basis, which was done. Therefore, PORETTO has nothing to sell if he wants to get out of the restaurant, except his fixtures and goodwill. NO 1734-PC advised that CARLOS MARCELLO can read words in English. but has difficulty in putting phrases and sentences together and, therefore, relies entirely on PHILLIP SMITH for direction and guidance. MARCELLO has recently instructed SMITH to tutor JOE C. MARCELLO in the handling of real estate matters, but JOE C. MARCELLO is not overly: : intelligent and probably, in NO 1734-PC's opinion, will not be able to grasp the intricacies of real estate transactions. NO 1734-PC advised that JOE C. MARCELLO has PHILLIP SMITH's telephone tapped, as well .as JOE C. MARCELLO's wife's telephone tapped. NO. 1734- PC advised that BILLY GAUTREAU, former administrative assistant in the Jefferson Parish Coroner's Office, was one of the individuals utilized. by MARCELLO to tap telephones. GAUTREAU was recently sentenced to eighteen months in Angola for obtaining funds fraudulently from the Coroner's Office. NO 1734-PC advised that an individual known to him ‘only as TEX, who is presently incarcerated in a prison in Texas, was another individual utilized by MARCELLO to tap P COVER PAGE Docld: 32577900 Page 9