(? CG 62-6020 ae ~ HH: kmg . DETAILS: AT CHICAGO, ILLINOIS This investigation is predicated wpon a request for investigation contained in a memorandum of Assistant Attorney’ General HERBERT J. MILLER, JR., Criminal Division, Department of Justice, dated. October 15, 1962, The memorandum requesting this investigation is set forth as: follows: “Reports have been received that Allen Dorfman and Irvin Weiner with no apparent effort have obtained the insurance and bonding business connected with hotels, motels and other businesses which have been recipients of loans from the Central states Southeast and Southwest Areas Pension Fund. Allegedly, the insurance is going through local agencies but the Dorfman group is receiving the commissions. "Stanley Mallin of the Atlanta Cabana Motor Hotel, Atlanta, Georgia, said Dorfman got the insurance business through Haas and Dodd Co. of Atlanta; that Haas invested $20,000 in the Atlanta Cabana and in return wrote a $500,000 pol:- » on Mallin and Jay Sarno. oe "Elliot L. Haas and Dodd Insurance Brokers, Atlanta, Georgia, was interviewed by the Eureau in relation to his activities with the Atlanta and Dallas Cabana. Haas stated that he got a small policy from the Atlanta Cabana but the premitins are very nominal. He also said that because of construction investments he made in the Dallas Cabana, he was given the eyportunity to write $500,000 in Life policies on Sarno and Mallin.< iiecords at Republic National Life of Dallas, Texas, show Haas placed business with Cambridge Insurance Agency, General Agents for Republic, and earned a commission in excess of $2,000. (There is a Republic National Life check dated May 26, 1960, to ‘Elliot L. Haas for $2,115.31). Cambridge earned the overwrite on the Sarno-Mallin life policies according to a report of Carl Schultz C/O Bureau of Labor Management Reports, Chicago. ~ ‘ - 2- . HW 45965 DoclId: 32309933 Page 3
HW 45965 20 . “CG 626020 HH: kmg "Republic's files indicate that on April 20, 1960, Republic National Life advised Cambridge that they were splitting the commissions between Elliot Haas of Atlanta and Cambridge on policies #187239 and #187240 written on Stanley Mallin and Jay Sarno. "Sol Schwartz is in frequent telephone communication with Charles Griffin, Raymond Nelson and "Gene" Willage at TR 33-6581, Atlanta, Georgia. It is not known whether this has any relationship to the Atlgnta Cabana insurance. | “According to Frank Wright, President of United Bonding Co., Indianapolis, Indiana, Irving Weiner picked up, the insurance business (with possible premiums of $1,000,000) for the Castaways Motel, Miami Beach, Florida. Wright also said that Weiner had obtained the insurance fer the Everglades Hotel in Miami. The Atlanta Cabana Motor Hotel, the Castaways Motel and the Everglades Hotel in Miami all received loans from the Pension Fund. "It is requested that the Bureau interview Frank Wright, President of United Bonding Co., Indianapolis, Indiana, concerning | his. knowledge of the arrangement whereby insurance and bonding furnished relative to these Pension Fund loans were acquired by the Dorfmans and to.concuct an investigation to determine the following relative to thie above mentioned loans by the Teamsters Pensien Fund: "(1) what agencies and underwriting companies are - involved; "(2 what policies have been taken; "(3) what commissions have been. paid; "(4) to whom. | : | "(5) Interviews are requested with local insurance and bonding agents to determine whether they have been. approached with "kickback" proposals. a Docld: 3273099273 Page 4
~ CG 62-6020 HH: kmg \ "(6) The Bureau is also requested to determine why Cambridge got a portion of Haas' commission on the Mallin=-Sarno policies." Certain Jats were 21so0 furnished by the Department in ‘ceennection with this revwuest for investigation. Included in this was a memorandum from WALTER J. SHERIDAN, to JEROME S. ADLERMAN of the Department of Jwstice dated January 14, 1960, with respect to JAMES R. HOFFA = Summit Fidelity and Surety Company; ALtuh. ’ DORFMAN; Teamster Bonding. This memorandum records the results © of an interview of FRANK WRIGHT, President of the United Bonding Company cf Indianapolis, Indiana, on January 13, 1960. The infor-~ mation furnished by WRIGHT relates principally to the Teamster Bonding Program which was set up following the passage of the Landrtim-Griffin Bill on September 14, 1959. Among other things WRIGHT advised WALTER J. SHERIDAN that sometime in December, 195°, he was contacted by a man named DON PLETTS, who represented an; ~ agency in Miami, Florida. PLETTS told WRIGHT that he had tne § ~* Teamster Bonding business and offered to post a cash collateral of * $300,000,. PLETTS had previously contacted JIM HALPERN of the. United Public Insurance Company of Indianapolis for the sane purpose WRIGHT advised that a man named JOHN QUINLAN, woo was with the Peerless Insurance Company, even quit his job ts go with PLETTS because PLETTS seemed so certain of getting the Teamster business Also made available by the Department was a copy of a report made by Compliance Officer CARL N. SCHULTZ on September 1, 1961, at Chicago, Illinois. SCHULTZ is compliance officer with the Bureau of Labor-Management Reports of the United States Department of Labor. This report is entitled United Benefit Fire Insurance Company of Omaha, Nebraska; International Brotherhood of Teamsters; JAMES 28. HOFFA, President. This report concerns the Teamster Bonding Program and reflects the results of interviews by SCHULTZ with FRANK ‘RIGHT, President, and NORMAN L. STOTTS, Chief ©f the Bond Department, United Bonding Insurance Company, Indianapolis, Indiana. * - 4 = ee \ HW 45985 Docld:32309923 Page 5
4 CG 62-6020 . . HH: kmg “Among other things WRIGHT advised SCHULTZ that he heard a rumor that IRWIN WEINER got the insurance business of the Castaways Motel and the Everglades Hotel, both of whom are recipients of International Brotherhood of Teamster Pension Fund loans. WRIGHT said that the premiums on the Everglades cO#3d total $1,000,000 and that WEINER got the business "by just walking in". : 1 i SCHULTZ ‘s report notes that a. previowts chronology shows that WEINER was at the Atlanta Cabana and that CHARLES W. ‘BRAY, who was connected with the Federal Casualty Company, ‘Chicago, Illinois, telephoned the General Oglethorpe for a regervation. The following memorandum with respect to ALLEN and MARILYNNE DORFMAN and PAUL.and ROSE DORFMAN and their associates was also furnished by the Department in connection with the requested investigation. This memorandum is set forth as follows: "Paul Dorfman and Rose Dorfman and their son, Allen, have long been alleged to be the liaison between James R. Hoffa and Chicago racketeers. They have reportedly been the source of large sums of money for Hoffa. The McClellan Committee disclosed that the Dorfmans had obtained millions of dollars in commissions from Teamster insurance programs. Since the McClellan investigations, much oo of the Dorfmans' activity has been conducted through ‘front’ erganizations operated by Dorfman associates. Their principal associ- ates are Irwin R. Weiner, Sol C. Schwartz, Irving R. Nemerov, Bernard N. Nemerov, Ros® Miller and Theodore Shulman. "Ross Miller and Ted Shulman allegedly ‘front' for the Dorfmans in the control of the Dunes and Riviera Hotels ain Las Vegas. "The Nemerovs allegedly represented Dorfman interests in Trans-Continental Life Insurance Co. incorporated in Illinois in June 1958 and subsequently sold to Spencer Austrian. Presently the - Nemerovs run the California Life Insurance Co. of Oakland, California. - 5 - HW 45985 Docld:32309923 Page 6
om 5 CG 62-6020 HH: kmg (Chicago office at 134°N. LaSalle) which was purchased from the Teamster-allied Laundry Workers Union. Involved in this company's operations are. Jack. Goldberger. and. ‘Jim Harding. "Irwin Weiner is believed to be ‘connected with: "Anerican Bail Bend Co., Chicago, ‘Illinois "American Bonding Agency, Inc. , Chicago, Illinois (may be same as above) "Auto=Mat Manufacturing Co. | ‘Continental Processing co. "IT s. P sales Inc., 10.19 South State Building, Chicago, Illinois "Leo Rugendorf | : | | . "P & 8 By-Products, Inc. "Twin Distributing Co., Inc. - “Twin Food Products , “Ine. (employed Alderisio, Caifano, Battaglia and _Frabotta) “Weiner-Volin Insurance “Agency, Inc. "Sol Schwartz is connected with Union Health & Welfare Insurance Agency, 330 S. Wells Street, Chicago. Other officers are Philip H. Gold 7316 N. Sheridan Road, Chicago, and Norman B. Owens, a 941 Ridge Avenue, Evanston, Illinois. . "Exchange National. ‘Bank. records list as related accounts t9 many of Dorfman's or ‘Weiner* s companie 8 the following: "John Carson) CO , _ ) Also appeared as: John Carson Smith Lodge "Lodge Smith) a "Equity Land Co. "S & G Wheaton Building ee, = be HW 45985 Docld: 32309923 Page 7
My GB-6020 , YE s key “United tates Realty & Construction Co. AN “Nushwartz and Weiner were jnvolved in the Teamstor Ponding Progvam which also concerned the following individuals end companies: "Angelo Branchni, Chicago, Illinois "Sharles WV. Bray, 820 N. Glenayre Drive, Glenview, Illinois i “James VW. ugan, 1305 W. Glennon Drive, Denver, Colorado "Stewart W. Hoppys, 2 Clif Road, Belvedere, Caliiornia & ; | "Don Ress, Rm. (06, 330 S. Wells Street, Chicago | “Lawrence Rothiield, aka Larry Roth, Rm. 706, 3350 SS, Wells Street, so y . Chicago ; "MAgidliatod byoters, Ine., Deleware cerporation (Bray-lHepps) , Nhnglo Canadian Waderwriters, Ltd., (Hopps) 44 Wall Street, New York Micsordatod Tnsnrers, Ltd, (Bray and Honps x) Moen nrel cseuakty Insurance Co., Kvanston, Illinois a | "Cantval Conmapty Ins. Co. (formed by Bray and Yedner 7/61) “loge stan DTnsarance Co., #li0 sheridan Noad, Cuicaxzo ‘Gomer bray Uervice (Can.) Lid. Canadian corp. LE/O4/EE, BCS Rox 1535). ‘ NaSsan, Bo hams "omer Uray Serviee Inc., Evanston, Illinois re! LLinocis Awsney of Sumnit Fidelity © Surety Co., (short Lived in L958) "Intercontinental Ins. & Surety Co. of Panama, formed Losey "Intercontinental Ins. Co., P.O. Box 1306, Nassau, bahamas (may ite ‘ same as above) "Meditervanean. Insurance Co. (Pray) "National Oxford Agency Inc. HW 45985 Docld: 32309923 Page 6
f 1 y \ t , y : 4 . . nd . ; : ‘ : ‘ .- 7 ’ G CG 62-6020 HH: kmg "National Oxford Agency, Inc., 1223 N. LaSalle Street, Chicago. (may be same as above) . "Oxford Agency, Inc., Illinois corporation 12-24-59, 141 West Jackson Blvd... . "Ppacifie Service Co. \ "R & R Insurance Co., 330 S. Wells Street, Chicago "Titan Co. Ine., Illinois corporation 7-6-61, 1019 S. State, Chicago "Titan Management Corp., 11 S. LaSalle, Chicago, (may be same as above) "Tropical Holdings, Inc., (Bray Co.) | | " Dorfman companies have included: "Aldor Insurance Agency, Inc., Indiana corporation, 9-16-54 ’ "Alro Agency, Inc., Michigan corporation, 10=2...52 "Alro Insurance Agency, Inc., Illinois corporation, 4= 26—54 "Amalgamated Insurance Agency Services, Inc., 5-18-56 "Business Life Agencies, Inc., Illinois corporation, 10-26-56 "Cadillac Insurance ‘Inc. "Cambridge Insurance Agency, Inc., Illinois corporation, 4—26=56 . "Central Insurance Consultants, Chicago, Illinois “Conference Insurance Consultants, Inc., Chicago, Illinois, 4-60 . "Country Club Miniatures, Inc., Chicago, Illinois, Ohio corporation a - 8 = HW 45965 DoclId: 323099233 Page 9
8 CG 62-6020 HH: kmg "Dorfman Investments, Partnership, 1954 "Dover Insurance Agency, Ltd., Illinois corporation, 323654 "Imperial ‘Insurance Agency, Inc., Mo. corporation, 6-19-56 - "Jack O'Laritern Lodge, Inc., corporation, 6-1-52 "Joll Properties, partnership, 12=5=50, "Magna Carta Investment Co., Inc. | . "Mercury Investment Corp., Jlilinois corporation, 7-28-56 “Morningstar Hotel, Inc. , about 1956 - "New Flamboyant Hotel, Virgin Islands, about 1956-1960 "Northwestern Oil Co., Partnership, 7-1-52 | “Pan American Investment Corp. ; Illinois corporation, 11-8-55 “Sheridan Investments, Ine., Illinois corporation, 9-17-56 "Sheridan Lien Co.,; joint venture, 2n15~57 "Southwest Insurance Agency, partnership, Chicago, 1958, Rose and Allen. 1961-~Schwartz partner ; '"Tecumseh Lodge, Inc., Delaware corporation, 4-25-46 "Union Insurance Agency of Illincis, partnership, S=1-50 "Windsor Investment Co., Illinois corporation, 9-11-54 Other companies believed to be controlled by or connected with Dorfman include: f "Fidelity Bankers Life Insurance Co., Chicago, Illinois “Girardian Insurance Co., Dallas, Texas, and Chicago, Illinois =~ 9 a= ; . . ‘ + ‘ 7 c f \ . | . oa ‘ = . - { : . . , HW 45985 Docld:32309923 Page 10
9 CG 62-6020 HH: kmg ‘ "Intercontinental Insurance Co., (received mail at Dorfman offices) "Pan american Distributors, Inc., Puerto Rican corporation,-'9=60 "Southwest Insurance Agency, Dallas Texas, Texas corp. 10-= 15-56 - oO , 9=5=-60 “Union Casualty & Life Insurance Co. (receiving mail at Dorfman's office) “Wacker Insurance Agency, Inc. | | West Coast Insurance Consultants, Inc., Chicago, Illinois "Other individuals who are or have been closely associated with the Dorfmans ‘include: "Myer Breen, 1221 N. LaSalle, Chicago and 2322 N. Commonwealth, Chicago "Lucilleferkin, 1221 N. LaSalle, Chicago "Philip Goodman. 201 N. Wells Street (believed to have broken with So Dorfman) ‘ "Robert Greenfield, 1483 or 1843 Edgewood Lane, Winnetka, Illinois now at 175 W. Jackson, Chicago (believed to have broken with Dorfman about 1957) "James Kalil, Detroit, Michigan "Other individuals and companies possibly lined to “the Dorfmans include: "Jack or Joc Katz | of ‘ ~ "Harold Goldberg, 20 Jerusalem Avenue, Hicksville, New York 223 Fulton Avenue, Hempstead, New York ~ 10 - —_ HW 45985 Docld:32309923 Page 11
~ 10 CG 62-6020 ° = | HH: kmg ’ "Bergman and Lerkow Insurance Agency "Fidelity Bankers Life Insurance Co., 500 . Broad Street, Richmond, . o Virginia "Guaranty Trust Mutual Life Insurance Co., San Antonio, Texas "National Life Insurance Co. "Old Republic Life Insurance Co., 307 N. Michigan, Chicago \ ‘Dorfman had held, through Sheridan Investments; Inc., considerable stock in Northeastern Life Insurance Co. of New York (formerly Mt. Vernon Life Insurance, formerly Union Casualty & Life Insurance Co.). Exchange. bank records show Sheridan Investments is being liquidated for the purpose of Dorfman entering into.an unknown .Canadian venture. Financial statements of Fidelity Bankers (a company headed by T. Coleman Andrews) show that Fidelity has acquired - ‘Northeastern common shares at a cost of $3,959, 345. There is a note . that $2,068,408.80 represents 'the excess of cost of Northeastern. over admitted value at acquisition." , wMadl has been received at the Dorfman offices from the following companies which may be linked with Dorfman or Stewart iiopps: "American Overseas Underwriters, 2001 N.W. 7th Street, Miami, Florida "Florida-Carribean Underwriters, 200: N.. 7th Street, Miami, Florida "Guarantee Trust Life Insurance Co.,. 2537 W. Montrose, Chicago, Illinois Room 406, 134 N. LaSalle, Chicago, Illinois 7 "Union Labor Life Insurance Co., Room 710, 23 East Jackson, Chicago, Illinois . _ , "The Dorfmans have done business with the fellowing banks: “Amorican National Bank & Trust Co. . "Commercial State Bank & Trust Co., New York (1953) - ll=- , HW 45985 Docld: 32309923 Page 12
wad 7, ~ we , LL CG 62-6020 ' HH: kmg "Cosmopolitan National Bank & Trust Co., Chicago "xchange National Bank of Chicago \ "Guaranty National Bank (formerly Southmoor Bank) 6760 Stony Island \ Avenue, Chicago, Tilinois "Bank of Highland Park, ist and Central Avenue, Highland Park, “atime ‘ (safety deposit box) “North Shore National Bek ‘Paul Dorfman i's Allen's stepfather; he gained control’ of the Chicago Waste Handler ‘Union Local 20467 after. the mysterious muder in 1939 of its founler Leon Cooke. He has been associated with the tate Claude Maddox, Tony Secardo, Abe Teitelbaum, Johnny Dio, the late Longie Zwillman, Joey, Glimco and Murray Humphreys. Allen's mother is the former Rose fitman previous ly married to Meyer Melnik. Paulv-is about G1, Rose about 56 and Allen about 39 years old. Allen changed his name from Allen; Melnick to Allen Melnick Dorfman. in September 1945. \ "Paul and Rose Live at 5801 N. Sheridan Road, Apt. 200. "Paul's brother Wi. iam married Rose's sister Faye. William died a few years ago. Faye, about 48, survives as does a 21 year old daughter, Ila, who is married to 23 year old Ira Lustig. Jay Dorfman, 6821 Ridge, is Allen's younger brother. : "All of these rela;ives appear in various dealings eft Allen and Paul. t \ i ! "Paul Dorfman has! been reported to ‘have insurance interests with "Milwaukee Phil" Aldexisio, "Obbie" Frabhotta, and Santos Ie Traficanti, all prominent vacketeers. " yo, ; mo ~ 12 =. - HW 45985 Docld: 32309923 Page 13