Originator: FBI
From: CG
To: HQ
Document date: 09/19/1963
Document type: PAPER, TEXTUAL DOCUMENT

## Page 1

JFK Assassination System

Identification Form

Agency Information

Date:

4/1/2015

AGENCY :

RECORD NUMBER :

FBI

124-90086-10265

RECORD SERIES: HQ

AGENCY FILE NUMBER: 'CR 92-5505-230

Released under the John F. Kennedy

Assassination Records Collection act of

1992 (44 USC 2107 Note]. Case#N'w

54578 Date: 1214-2022

Document Information

ORIGINATOR:

FBI

FROM:

CG

TO :

HQ

TITLE :

DATE: 09/19/1963

PAGES:

16

SUBJECTS :

JOSEPH STEIN

DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT

CLASSIFICATION: Unclassified

RESTRICTIONS: 4

CURRENT STATUS: Redact

DATE OF LAST REVIEW: 07/14/1998

OPENING CRITERIA: INDEFINITE

COMMENTS: • RPT

v9.1

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CG 92-1037

CG 6443-C advised SA JOSEPH G. SHEA on May 24, 1963,

that he recently learned from LESLIE KRUSE, en route to

O 'Hare Field, where KRUSE was to take a plane to Florida,

that KRUSE is

greatly concerned, and stated that the "G"

must have an "outfit" guy as an

informant. KRUSE stated

their information is very accurate lately concerning some

matters.

KRUSE speculated the informant has to be an

individual very close to the outfit. KRUSE stated they

suspected FRANK FERRARO, since they consider him a weak

individual; and they also suspect former alderman JOHN

D'ARCO, as well as LOUIS BRIATTA, as the informer.

CG 6443-C advised SA SHEA on June 14, 1963, that

KRUSE intended to leave for New York, this date, where he

stated he was going to visit a medical specialist for a

kidney or bladder disease.

Informant stated that KRUSE

has been instructed by his Chicago doctor to maintain a

careful diet, and to visit the specialist in New York City.

He said

that, during this conversation, KRUSE made the

remark,

"This is the beginning of the end for the rackets.

Everybody is a stool pigeon, even our own guys are leaking

the information, and the FBI is over zealous.

Everything

is locked up."

During this conversation, KRUSE talked

again about his pet peeve, which is the Hot Springs,

Arkansas, area, where gambling operates wide open in

Senator MC CLELLAN's home state.

KRUSE Cannot understand

why gambling flourishes in Hot Springs, where it is against

state law; and yet,

here in the local area of Chicago,

gambling is being closed down, largely by the FBI.

CG 0443-C advised on June 21, 1963, that he hao

talked with KRUSE recently, and KRUSE had discussed a

gambling venture, presently in the development state, in the

Dominican Republic.

KRUSE admitted that he has been making

frequent trips to the Dominican Republic from Florida, for

the purpose of establishing gambling there.

KRUSE said

this is a perfectly legal venture, and that the financial

backers of the operation in the Dominican Republic will be

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92-103%

KRUSE; RALPH PIERCE; MMEYER LANSKY, top hoodlum of Florida;

ROCCO FISCHETTI; JOE FISCHETTI; JOHN DREW, Las Vegas gambler;

and PETE LICAVOLI, Detroit hoodlum.

Informant stated that KRUSE said he intended to

make additional trips to the Dominican Republic, by way of

Florida, and that he might use the informant as

a courier

for him to the Dominican Republic; and, on occasion,

might have the informant accompany him on this trip.

KRUSE indicated further that, when he makes the

trips to the Dominican Republic, he picks up envelopes

and letters to be delivered to persons there. KRUSE

indicated that he makes the trip approximately every

two weeks.

CG 6443-C advised SA WILLIAM A. MEINCKE On

July 2, 196s, that he recently learned that one HERBERT

the city of Chicago Zoning Appeal Commission, has been

an individual recently appointed by Mayoï DALEY to

going recently to the Rondout and Old Homestead gambling

establishments run by MC GUIRE, SMITH, and GRIFFIN..

The informant advised that he learned through

IC GUIRE that on the night of June 28, 1963, the Sheriff

I Lake County had planned a raid at the Rondout gambling

establishment and that apparently he had secured

a warrant.

MC GUIRE stated that "the whole thing was tipped early in

the day."

MC GUIRE did not elaborate further, however,

stated that CHUCK SMITH had received a phone call in the

afternoon of June 28, 1963, apparently alerting him to the

possibility of a raid that night. MC GUIRE stressed in his

conversation that the tip came from a

. "civilian" and not

a law enforcement

agent.

MC GUIRE went on to say that

about 9:30 P.M. another phone call had been received at the

Rondout establishment confirming the

fact that there would

be a raid that night. Thereafter, MC GUIRE advised he

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CG 92-1037

hurriedly got rid of the few gambling customers who had

appeared that night. MC GUIRE laughed and said that

they had to get their own cars, and several of the patrons

got their clothing all messed

up falling in the mud next

to the parking area.

It is to be noted that the raid was planned by

the Lake County Sheriff's Office based on information

supplied by the FBI.

A warrant and complaint had been

issued by the Lake County State's Attorney's Office concerning

this raid. The warrant and complaint were drawn on the

afternoon of June 28,. 1963.

Informant advised that MC GUIRE also told him

that SMITH in particular was really shaken up by the impending

raid. MC GUIRE advised that they felt they could control

all the law enforcement agencies in Lake County but if they

were forced to act in some way their control was lost and

this made SMITH and GRIFFIN extremely dubious.

MC GUIRE advised that SMITH told him that he

did not want any more of the gambling in Lake County

advising that he was wealthy in his own right and "too öid"

to take any more chances."

The informant advised that the matter at present

is "up in the air" with the gambling shut down at least

temporarily, if not permanently.

He advised that MC GUIRE

and his associates were all lamenting the fact that they

were shut down before their big week end, that of the 4th

of July.

CG 6587-C-TE advised SA MEINCKE on July 3, 1963,

as follows:

Informant advised that he was present at the

Rondout gambling establishment on Friday, June 28, 1963;

He advised that he arrived at the establishment about

8:45 P.M. and immediately sensed that something was

different from any other night he had attended this

establishment.

He advised that between 8:45 and 9:30 P.M.

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CG 92-1037

Informant advised that he contacted FRANK

PALERNO on July 2, 1963, in an effort to determine what

had occurred at the Rondout gambling establishment on

He advised that FRANK simply told him

that 2e' would have to watch TV a tew nights" and did

not explain his comments further.

Informant advised that

FRANK left him with the impression that the game will be

going again in the future; however, that for

some reason

it would remain down for a period of time.

CG 6443-C advised SA MEINCKE on July 5, 1963,

that on July 3, 1963, KRUSE had asked the informant to

see one HARRY LEVINSON, who owns and operates a pawn

shop on Clark Street and Chicago Avenue, Chicago, Illinois.

LEVINSON has a home at 4200 Marine Drive, Chicago, next

to the Imperial Towers.

KRUSE

suggested

that the informant

try to interest HARRY LEVINSON in an even swap of property

at 4200 Marine Drive, for KRUSE's Lake Worth, Florida home.

Informant advised that ROCCO POTENZA, On July

3, 1963, in the late afternoon, visited the H and H

Restaurant, Where KRUSE also hangs out, and asked MAISHE

BAER to hold his bankroll, consisting of $48,000. POTENZA

asked BAER to hold it until he came back, stating he was

going to a lawyer's office in the Metropolitan Building,

at 134 North La Salle Street, Chicago, and did not want

to carry the money with him.

CG 6443-C advised SA MEINCKE on July 18,

1963, that

he recently saw KRUSE in conversation with PETER EPSTEEN and

a lawyer by the name HENNESSEY, formerly a

city attorney for

Skokie, Illinois, and

a personal friend of KRUSE, in conversa-

tion at

the Hyatt House on Lincoln Avenue, in Skokie.

From

portions of the conversation that he could hear, the informant

learned that apparently KRUSE is interested in something in

Jamaica, and may fly there on a vacation trip with his wife

in the near future.

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CG 92-1037

They mentioned that one WALTER LENRROT (phonetic),

a friend of MEYER LANSKY of Miami, is presently in Jamaicá,

conducting some sort of financial

investigation.

It was

mentioned during the conversation that the government owns

the gambling interests in Jamaica, and there was an indica-

tion that KRUSE was extremely interested in this arrangement.

With reference to HENNESSEY, the informant advisec

that: KRUSE leans on him for legal advice, and he visits KRUSE

at his home frequently, particularly on Sunday mornings.

Subsequently, KRUSE advised that he is going to

take a trip of several

weeks duration with his wife, and.

has instructed the informant to purchase some luggage

for him.

The informant stated it is unusual for KRUSE

and his

wife to visit their son two weeks in a row, and

the current visit is probably due to the fact that KRUSE

and his wife are planning a trip of several weeks duration;

therefore, the informant places credence in KRUSE's conversa-

tion.

Informant also advised at this time that he had

Seen HARRY LEVINSON, as requested by KRUSE, regarding the

swap of property. LEVINSON's attitude was that he would

not even consider such a swap, and this deal will never

materialize.

CG 6443-C advised SA MEINCKE on August 16, 1963,

that he had a meeting scheduled with KRUSE for 4:15

P.M. on

this date; however, KRUSE did not show up. Informant

said he waited in MAISHE BAER'S H and H Restaurant until

later that evening when KRUSE's son appeared and stated that

his father had been called out hurriedly on a quick business

trip.

Destination was not mentioned; however, the informant

felt that KRUSE must have flown to the Dominican Republic,

as he had indicated

previously, that this trip was coming

up.

He advised that KRUSE, according to previous state-

ments, would haveto be back by August 20, 1963, as he

planned to drive to Culver Military School to bring his

youngest son back to school.

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## Page 7

- :

CG 92-1037

INFORMANTS

Source

CG T-1

CG T-18

CG T-24

CG T-28

CG T-32

CG T-35

CG T-36

CG T-37

CG T-38

Identity

CG 6443-C

CG 6443-C

CG 6443-C

PCI MATCHIE

ZMISTOWSKI

PCI BUDDY

MEYER

CG 6597-C-TE

CG 6283-C

PCI DAVID W.

RUSSELL

PCI DAVID A.

RUSSELL

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NW 64578 Docld:32329608 Page 7

Contacting Agent

SAS JOSEPH G. SHEA and

WILLIAM A. MEINCKE

SAS JOSEPH G. SHEA and

WILLIAM A. ME INCKE

SAS JOSEPH G. SHEA and

WILLIAM A. MEINCKE

SA RICHARD B. KELLOGG

SA JAMES A. ABBOTT

SA WILLIAM A. ME INCKE

SA VINCENT L. INSERRA

SA LARRY FABLE

SA LARRY FABLE

d0080105

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