Document date: 00/00/0000

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File #:

62-116395

Serial Scope:

1342X2

Released under the John F. Kennedy Assassination Records

Collection Act of 1992 (44 USC 2107 Note). Case#:NW 68262

Date: 09.22.2022

NW 68262 Docld:32989576 Page 1

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62+116395-1342X2

NW 68262 Docld:32989576 Page 2

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## Page 3

62-116395

1 - Mr. J. B. Adams

1 - Mr.

T. J. Jenkins

2 - Mr. J. A. Mintz

(1 - MI. J. B.

Hotis)

1 - Mr. H. N. Bassett

1 - Mr. E. W. Walsh

January 26, 1976

1 - Mr. W.

R. Wannall

1 - Mr. W. O. Cregar

1-Mr. S.F. Phillips

U.S. SENATE SELECT COMLITTLE TO

STUDY COVEN TOTAL OFERATIONS WITH RESPECT

TO INTELLIGSNCE ACIIVIPIES (SSC)

RE: ALILCALION NUBER ONE

Reference is Irade to SSC lctter datoo January 8,

1910, asting Ior fBi responses to eight questions concerning

each of five allegations of FBI misconduct and abuse.

I.n

rodification of the sSC lotter, Ar. John T. Illiff, SSC

Donestic Intelligence Tash Force Director, advisod

No. N, O. Cragar of this Bureau on January 12, 1976, that the

purpose of this inquiry is to lcarn what infornation is provided

to the Attornuy Ceneral consistent with his oversight

rospousibilities once an allegation surfaces in the redia.

on orton tomato, do provisol

The following response concerns allegation Nurber

one which roads:

The larch 20, 1975, coltion of the Now York Fines

reported that "the Federal Bureau of Investigation

has carried out kidnappings of a number of persons

in the United States that it believed to bo

clandestine agents of foreign intelligonce services,

according to two former FBI agents."

Assoc. Dir. _

Dep. AD Adm. -

Dep. AD Inv. -

Asst. Dir.:

Admin. -

Comp. Syst. -

Pursuant to a conference between representatives

of the FBI and it. Elliff, SSC, on January 12,

1975, it van

established that illogation Number One dealt with an investiga

tive technique and not an allogation of porsonal misconduct

and abuse.

As a consequence, replies

to the ssc's questions

are inappropriate and unnecessary.

I - The Attorney General

ORIGINAL AND ONE COPY TO THE ATTORNEY GENERAL

Ext. Affairs

Filos & Com. - JWJ: CMICnil

Gen. Inv. -

Ident.

(12)

Our

Inspection.

NOTE:

Intell.

Laboratory

Plon. & Eval. _

A copy of referenced

letter is attached to yellow

of

Spec. Inv. -

_ instant LHM. Ihis document is prepared in response to

Training

Legal Coun.

nation, outside your Commitee.

Iis use is timira to oificial proccedings by

Telephone Rm. _

your Committee and the content may nut be disilosed to unauthorized person-

Director Sec'y -

MAIL ROOM L

neezzithoututhe express approval of the FBI .

GPO: 1975 0 - 569-920

NW 68262 Docld:32989576 Page 3

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## Page 4

FRANK CHURCH, IDANO, CHAIRMAN

"JENN G. TUNER, TEXES, VICE CHAIRMAN

• HOWAHO !, BAKER, JН.. TENN.

WALTER.. MANGALT, MINN.

BARRY GOLSWATER, ARIZ,

WALTER D, MUDGLENTON, KY.

CHARLFSMCC.MATHIAS.JM..MD.

ROBERT MONGA:, N.C.

RICHARD 5. SCHWEIKTA, PA.

GARY HAFT, COLO.

WILLIAM G. MILLEH, STATE"DIRECTOR"

FREDERICK A, O. SCHWARI, JR.. CHIEF COUNSEL

CURTIS R. SMOTHERS, MINORITY COUNSEL

Irited States Senate

SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES

(PURSUANT TO S. RES. 21, PITH CONGRESS)

WASHINGTON. D.C. 20510

January 8,

1976

Michael E. Shaheen, JI., Esq.

Special Counsel for Intelligence Coordination

Office of the Deputy Attorney General

U. S. Department of Justice

Washington, D.C. 20530

Dear Mike:

One of the subjects which the Committee will be address-

ing in preparing its legislative recommendations involves

the adequacy of the FBI's inspection procedures for handling

allegations of misconduct and abuse.

In this regard we are

forwarding herewith a list of several such allegations which

have been made during the past few years and concerning each

of which we would appreciate your supplying us with the

following information:

1. How did FBI Headquarters first become aware of

the allegation?

2.

Was an investigation or inspection conducted?

If not, was any other action taken?

3.

How was the decision made to conduct (or.not to

conduct) an inspection or investigation, or to take

(or not to take) other action?

4.

Which Division, or operating level (headquarters

or field), conducted the inspection or investigation?

5.

How was the decision made as to which Division or

operating level was to conduct the inspection or

investigation?

6.

Was the original allegation reported to the Attorney

General or any other Department of Justice official?

1112

JAN

1976

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: 32989576

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## Page 5

Michael E. ¿Shaheen, Jr:

Page 2

7.

8

9.

January 8, 1976

Were the results of the inspection or investi-

gation reported to the Attorney General or any

other Department of Justice official?

Was prosecution or administrative action (e.g.r

suspension or dismissal) considered or taken?

If any of the allegations on the attached list

were made today, would they be handled by the

newly-created office of Professional Responsibility?

In what manner would they be handled? If an investi-

gation were deemed warranted, which agency's personnel

would do the investigating. In this regard, please

also advise concerning. which agency's personnel will

be investigating recently-reported allegations that

agents of the FBI "attempted to coerce" a

House

Select Committee on Intelligence witness "into

repudiating his testimony before the select panel.""

Answers to questions 1 - 7 should be accompanied by full

• back-up documentation, including memoranda, inspection or

investigative reports, 302's, personnel reports, and communi-

cations to and from the field.

Your continued cooperation is appreciated.

Yours very truly,

John T. Elliff

Director

Domestic Intelligence Task Force

NW 68262 Docld:32989576. Pagé 5.

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## Page 6

LEVI ASKS INQUIRY

IN ATTACK ON F.B.I.

Special la The Dier J'or's Tiries

WASHINGTON, Jan. 6-At-

torney General Edward H. Levi.

has asked the Justice

Depart-'

ment's new internal inspection

unit to investigate an assertion

by the House Scicct Committee,!

on Intelligence that the Federal•,.

¡Bureau

of

Investigation

at-..'

tempted to coerce a committce...

witness into repudinting his tes-."

timony before the select pancl..

A Justice Department spokes-_**:

man said that Mr.. Lev,

re--..

sponding to a request for intor-

mation about the incident from

A. Searle Fickd, the committee's

.".

staff director, had assigned tha.

matter for investization to the

department's newly created Of-

fice of Profesional Responsibil-

lity.

In a letter to Mr. Levi last.

week, Mr. Field reported that

the witness, Martin L. Kaiser,

had disavowed part of his com-

mittce

testimony

atter a

six-

hour

interrogation by F.B.I.

agents.

Mr. Kaiser heads a Maryland

company that makes electronic

eavesdropping

equipment

for

the F.B.I. and other Federal

• law enforcement agencies.

His testimony before

• House Committee in October.

raised the possibility that sonie

& F.B.I. agents had received kick-

Ebacks when another electronics.

l company sold to the F.B.I. mate-

•rial it had acquired from Mr..

• Kaiser's concern.

NW 68262 Docld:32989576 Page 6

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## Page 7

-

LIST OF ALLEGATIONS

1.

The March 20, 1975 edition of the New York Times

reported that "the Federal Bureau of Investigation has

1915ed to

carried out kidnappings of a number of persons in the United

States that it believed to be clandestine agents of foreign

intelligence services, according to two former FBI agents."

2. The August I1, 1975 issue of Time Magazine reported

the discovery of "Bureau manuals, documents and reports" in

the apartment of a KGB "operative" who was described as the

'"mistress" of an FBI agent.

3.

The August 11, 1975 issue of Time Magazine also

reported that in 1961 a Bureau agent was "suspected of giving

FBI reports to the Soviets."

4. The March 29, 1975 edition of the Washington Post

reported allegations that an FBI agent had been "bribed by

a member of the Mafia."

5.

A recent edition of Time Magazine reported that

"sensitive" FBI documents. "were carried off in an FBI truck

to West Virginia's Blue Mountain Ridge Club, a

Shenandoah

Mountain Hideaway used by innermost FBI officials for regular

poker games with CIA and other cronies. The papers were

burned inthe Club's large fireplace."

_ NW. 68262-Docid:32989576 Pagé Z

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## Page 8

/: "The man da" cop his word!"

- Allegod' Violadons

the former agent said, and ap

• Several lawyers,

including

peared at an appointed meeting

with

representatives of the Ameri-

an

F.B.I.

intelligenco

Civil

Liberties

agent & week later.

Union,

But the

former

agent ac.

pointed out that an alien ille-

knowledged that the technique

gally

this country is

Law afforded many of the same

contained a critical flaw: Tho

F.B.I, had no way of knowing

iguarantees of due process

as

Amorican citizens.

whether the man, or

others

like him, reported their expe-

:. The bureau's only legal alter-

natives in such cases, one law-

riences to their own govern-

ment, and thus became triple

yer said, were

to

tum

such

agents.

individuals over to the immi-

gration and Naturalization ser-

"Playing for Keeps'

vice for a deportation hearing

The

use of kidnapping, one

or to charge them

with illegal

of the former agents empha.

entry or espionage.

sized,

"Was a tough game. That

To have held such an individ. was when you're playing for

•ual incommunicado for more'keeps," he said.

than a day, the lawyer added,

He said that, to his knowl-

would have violated his rights

edge, it was never employed

to tid formally arrested

and

against the domestic

--4.

NW-68262-Dogld:32989576.Page 8.

i..

E...

3120675::14 Trin

2. Former Agents Say

By JOHN M. CREWDSON

charged with a crime, to habeas

spacial to The dew YOrt Times

¡corpus and

20

the

assistance

WASHINGTON, March 19-jof counsel, among others.

"The Federal Bureau of Investi-l

Kidnapping, the former agent

gation has

carried out kid-said, was a last resort use:

nappings of

number of When

По

alternative

РалУ

persons in the United States could be quickly found to inter.

that it believed to be clandes-:

rogate a suspected subversive.

tine agents of

foreign

intel-jor to "tumn" him inio a doubie

ligence services, accarding to agent willing to report

tr.?

two former F.B.I. agents with: F.B.I. on the activities

ot his

¡direct knowledge of such oper-jown intelligence service.

-

ations.

It was, he said,

"the tire

One of the former agentsiot thing that's never done lign:-

"placed the number of such kid-ily."

nappings over the years at

Both men denied that physi-

"fewer than 10" and said that, ical torture was ever employee

nas far as he knew, the tech-lin

„such cases, although one

• nique had not been

employed said that, when a suspect had

by the bureau since the mid-been located, "You'd pick him

nineteen-sixties.

lup and take him

He said that its use had and work him over., somewhere

"been occasioned by such cold! The victims were often threst.

war incidents as the Cubanlened with death as punishmen:

missile crisis

"when things.for noncooperation, he added.

"were pretty rough," and thatlalthough neither-official re-

The was

"certain that this is called any instance in which

no longer going on."

A spokesman for the bureau!

a hostage had been murdered.

One of

the former azents

said only that the bureau would. maintained, however, that men-.

¡adopt "a no-comment posture"ital duress was an importan:

With respect to the kidnapping part of such interrogations, an

allegations.

he described one case in which:

- A Pattern in Targets

person was

detained in

seized

3=.d

an F.B.I.

"saro

- Both of the agents said that, house" for "several weeks."

with one possible

exception,

"the targets

selected by

the

Absence Not Noticed

F.B.I. for kidnapping were sus-l

Because the man was not

pected intelligence operativesi operating under diplomatic cor-

from Communist countries wholer, as many foreiam espionaze

had entered the United States agents do, and was soi other-

legally with forged American, wise an official personager his

passports and other identity extended absence went publicy

documents.

unnoticed, as the former

agent

. The use of the kidnapping said.

technique was also confirmed.)

The spy, he said. knew his

though not in detail, by two captors only as

other fomer F.B.l. sprnts.

"C'.s.

inte!-

ligence agenis," at lease me

"In separate Interviews, the of whom was wath him cons

two former

agents

who de istantly.

"scribed the alleged kidnappings;

"Someone alept in the same:

left open the possibility thatibed with him.

We even sant

it one instance the bureau had with

him 10 the bachioon,

erred in kidnapping

a person: he said.

who proved not 10 be a deep-i

After weeks of intense inter-

cover

spy but a legitimate! rogation the man bie .:

Emerican citizen.

agreed to bec.rme

dous.s

One of the agents conceded. lagent and was

toid, in

however, that in every

case/lurmer agert's words:

the practice was "completelvi

"You are a fire man, Is

Prong-complecely in violationiyou know wha: that ?ea.i

ol civil liberties. No question, lf you leave liege ané red so:

about it," he added.

keep your primming

•But he said, "In the businessi do nothing furches my tos. du:

of Intelligence, you're facediyou have made a cie....si

extra-legal ecuvises."

door

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## Page 9

9977809885

THE NEW YORK TIMES, THURSDAY, MARCK 29, 8975

F.B.I. Has Kidnapped Suspected Foreign Spies in U.S

seanizod trime figures, but|when he wes a small child

After raceiving cutbotization laporaiod e tormalized "Lidnap-lever made in wriling and thal

Tas reservad for aporatives alland vies now sceling to doc- directly from J. Edgar Hoover, 'ping squad," at ase eire therelconsequently no record oi

thE SONe KGB, ex Belun his family at tit of cially picked teem of asensi

¡the lato F.B.L. directer, a sira mas a colerte of agents who chists, within the bureau's files

"could and would"

casty outl

knowledge of the kadnappirs

regresontatives ola forner residait os tha county,

legal high risk operations such operatics

acher sovlatbloc intelligence seasore

seized the cissect and aushedas burglarics and kidsuppings. closely held,"

was

overy,

VErY

he said,

clerk and others there railein.

him so a secluded "sale house" a But by the mid-ninetoon-six-limited

king

Tilio

This rechalque tray particu lbured had sufferi a pavarent os lis burras for intarogation, ties,

he said, these man hadipersonally

approved

cash

lenty uselul, he explaired, when palvit injury as a youth.

bicone. convinced

that Mr.lthens; a handful of top ofticials.

,the FBI fosred that it suasl

Ont of the fermer aguasticover would no longer back erat

the agents in

tho fickd

rocur to lose wack ose sa to walk surfectly, however, and accried the interrogation as them and saty ronusco to un

who carried then cut.

"ficied agent posizg

tid the olher dertake auci

trik without "pa-

"Nobody will admit a danan

lAmencen citizin.

land told him to order mol

cions piqued, notified the local adued that "this tits soughiper" or written authorizations,

hiss," ho said, sointing ou

businees," diough neither prolwhich hir. Hoover tras unwill- thei

the crine

ladnas cin

vices spectic dolalis ol shaliago giva...

carries to stallite of limiti.

"he was contacting has,

•fairser agent sail,

"but youlagent was-on the ball," one of

cideal to subich 112x 88:01 Wa3)

subjectad..

Tes Dangerous to. Acesst

Liars.

the sources said, "and went over

'always run tre risk of dosing and checked tho maller out."

"You'd call a guy up

Tie larryers Intersewed in

him

in 200 millios pesole.

• Lukes to sovist .

operation as a success but de-

Dow sinkies descrid thel ask him to do sonething." the , of

andiconnection with the lagality

these

One instairca in which that

clined to clubciate an its pre-

souros rocalled

OpErEIONS

"and he'd se thomever, that Fodiral and aaid

concern played an anguitant

The F.B.I., he caid, placed cise disposition or the subject's mind you that ho had two kidnapping statutes had proba

"part was decorind by the twolthe mysterious stranger under present whereabouts.

kids lis college and tie could

Ibly not been violated by tho

fortner sicnis.

(surveillance and eventully bel

Die ci the Minner egurts

see his rutirament dore the agents

In die eurly rincices-sixties.lcumo comvinced that he was maintained, koever, this hosenezy."

who carried out thi

abductions, sinco no

•they recalled, a roon walled;

a soviet intelligence agent whoo! the enspected

espicnage! "Tis wuch tras extendingly was extracied.

¡eisually into de recoidors al-lhad

fice in a rural Middlo West States illegally.

‚she. Unitediarents Involvei in these opera-jdangercus." the accond forner

"The test literati

lions had ever died as a direct!F.j.I. mun said.

arily seat near the Caradian

When the local F.B.I. agents result of the, kidnapping er'get cant, you could geterresi

"You dildiaf the country would soi'ba

served by pursuing thai inves.

•bariu and asked lor a copy bucare concered that theylinterrogution, or while arenast-led"

tigation," thie min declined fo

of his birth cartifiate. •

would lose the euspoct, the ing to escape.

The firet former eyE's Can-

identify either the F.B.I. agerits

exclained to the

source recountis, a decision

•The forsay epiat, eaid Sizatifiraed thees points, adding dal or the suspected subversives lar

iderk that he had lait the ruziod tras made "do hit kir.l"

lalthough tho burmiu never'no mention of kidnapoing was volved in the kiJnorin…g

hn #10: 20546358

scihatis3.0a711-640

jailo ato

NW 68262 Docld:32989576 Page 9

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## Page 10

9.19

!!."

FBI

B Seduced by thie KGB

While concentrating its efforts upon

the Clo, Senaier Jirank Churclis spe-

cial commitice that is investgating U.S.

intelligeree programs has ald keen ac-

cumulating data on tie AM. Last sock

Tist: leared ligat the commited has

heard some starling reports of mis-

decas, break-ins and coser-ups, includ-

ing the story of an arent whose mis-

tress.175 linked lo the Serial tch.

The alfair was discovered in 1963

when a fla soure in Moscow reporied

that lob ofacials were juolant about

selling one of their operatives in lad

withan magent. To check out the Cla's

report, lie iss broke into the apartment

of the somn, a middle-aged waitess,

and discatered buncau manuals, doc-

ments and repoils. Some IBl clicial:

urged prosecutioa, but. Logar Huaver's

palace guard of deputics sopped the i-

quity so avoid embarrassing the burcou

and lis bois. The agent was simply.al-

Joired le jesign. The don aise aricars

to hase pencirated the Fri in 1901. In

this case, the agent superted of rivis

Fil reparis lo ile soriels la poleragli

test on him rias inconclusire) wis fied

on a minor technicality.

Tie Church committee his also

turned up evidence of a variety of extra-

logal activities macheed by the 11!. The

vucau is said to hase inniniained spe-

cial schools to train agents in thie loch-

niques of the "tag jos." a cuphomisin

for breaking and enicring. The amdu-

alci-jackpickers, burglars and a few

saliciackers--manato lo sical samo

coue basks from foreign embassies. Jor

this they receired "incentive awards"

ranging from S250 10 55u9.

The Senators would like do know

more about the privaic files laner dor!

on publie oficials and that use lie marle

ofthem. John dcar. a termer dis 1ist o1-

ficial, has soid That: that ile had been

questioned tico times bo die commitlee

about the densiers ascembled by. lle.

ves on scores of perple. Just shal lap-

ver's death in 1972 is still a mastesy.

_ NW 68262-Docld:32989576. Page.10.

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## Page 11

Jastigo Dept. Toolis Into Bureau Bribe Investigation

FBi Bid to Kill Probe Charged

By Ronald Kessier

The informed source said:pered by the FBl's handling of: FBI as a member of the Luchese

Trashinsion Post Sea!! Writer

¡Kelley's requests, which wercitle case beiore liclicy becante; New York Malia family.

Shortis after he became di-| known to onls a few FBI and director in

July, 1073, one

Capulo is alleged to have

rector of the FBI, Clarente AI. department officials amounted;

source said.

bribed Stabile.

Kelley twice made unsuccess-;lo

"pressure"

and

an

"at-l

Chick among these problems!

The trial, however. centers

- which were confirmed by al on the question of whether Ca-

ful attemps to stop a Justice tempt to suppress it [the in second source -

• was the fact!

puio lied when he told a rand

Department inrestigation of;vestigation)."

that the FBI immediately con-l

jury he had

not

admitted to

,an

allegation that

an

FBI;

The FEl, the former prose-fronted Stabile with the hribe FBi agents thai he

paid off

agent had

been bribed by a culors said, is a fack-finding alleration belore

attempting New York city policemen.

Imember of the Mafia, accord- azency that normally dues notito

gather evidence

against

licached at his Hassles, Pa."

ing to an informed sourcc.

express opinions on whetheriaim.

• The

charge

W'aS

investization

country home Caputo.

71.

said

staried by In doing so, the source said. lof the charge he paid

off an

against New York EBl agent.

the FBl agent gave the agent FBl agent

"I got nothino to

inother

Joseph Stabile I to fellow prosecutor said

former

ederall treatment it woul

not give do with this."

New York

agents.

One said

the FEI,

on others

suspecled

of

criminall

Asked ii he is a member of

Stabile had admitted to himirare occasions, has expressed; behavior.

the mafia, Caputo said, "come

that he took the bribe.

: such an opinion based on man-!

In addition, the source said, lon. I liate nice

children.

115°

An investigation was closed power considerations. But FBI at that same time the FEl sio kids went to

nice Catholic

when it turned up no evidence intervention when it is a tar-flated its

oin procedures brischools.

They say you're with,

against Siabile. But the lin.

get of the investigation would failing to inform the Justice; this. with that."

agenis who niacie the accusa-

be "imploper." the former Jus-: Devartment that it

tion told

the Justice Departitice

88°75

con-

Many of the essential facts

Department official said. ducting an investigation of the

rent's orgainized crime strike:

Sources

familiar

surrounding the bribe allega-

with the bribe allegation.

Ition - including the identity of

force in Brooklyn that the FBI bribe allegation attribunted;

An EBl spolesman said Kci-the accused agent. Stabiic .'

investigation

had

been a' kelley's neton to a feelingiley cannot

compicnt on

the were revealed in pre-trial tes-

"corer-up," the source said.

Jong hcid by FBI Icaders that, bribe allegation because mantilimony taken last month for

This tringered a Justice De.. any hint of corruption wouldlot

"partment investigation, which,

irreparably damage

the

the

sarie

issues

will

bei Caputos

pending

perjury '

bu-praised in a Brooklyn perjurvitrial.

is continuing, the source said. reaus image and cllective trial scheduled to begin april

Desnite the origin of the ress.

14.

•Justice Department investiga-!

Although Kelley's attempts,

The trial, to be held in u.s.

tion, the source

said, Keley, were unsuccesstul, the Justice district Cour

is of Join Ca-i

.asked

high-ranking

donri. investigation had been ham-iputo, who is identified by the

ment officials in 1973 to cail:

the Brooklyn prosccutors off!

the case on the grounds thet

FBI had found no violations of

Jas.

In addition, the source said,

'Kolicy complained

that

Justice investigation was hurt.

ing FBi morale.

During the ensuing dispute,

he said, llenrs E.

Petersen,

then chief of the Criminal Di-,

vision oi Justice, intormed thic

Brooklyn pro-ecutors at Kcl

let's altompls and sull Kelicy.

the investigation. would

(un.

tinuc. •

Another source said l'eler.

sen later cited the dow tort

incident lo show the noe fur

an inspecior general within

the Justice Departinent l0 1J--

lice the FBI.

Petersen, who has since len!

the Justice

Departinent.

CUN.

firmed

recently

that Kolles:

santed the intestration slop-

pou but coule nut recail lins.

ne had made his rious kmussn.i

Poler on

Said

he

Hold

nutt

dispate that st was in the do:st

or a recut.

"There sas a difference

opininti,

blarnalis

jupinion s the Cruel 111

sion pretanted. and the Flil i-

louis set in thad aginion,"

said.

his

NW 68262 Doeld:32989576 Page 11

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## Page 12

62-116395

January 26, 1976

proceedings by

ojiia!

to unauthorized person-

disclosed

be

FBI

nut

the

may

the content

.

express approval of

your Conmittee and

nel without the

shan

U. S. SENATE SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGINCE ACTIVITIES (SSC)

RE: ALLEGATION NUMBER THO

Reference is made to Senate Select Connittee (SSC)

lotter dated January 8, 1976, asking for FBI responses to

eight questions concerning each of five allegations of FBI

misconduct and abuse.

In nodification of the SSC letter,

HI. John I. Elliff,

SSC Domestic Intelligence Task Force

Director, advised

Mr. W. 0. Cregar of this Bureau ou

January 12, 1976, that the parpose of this inguiry is to

learn what Information is provided to the Attorney General

consistent with his oversight responsibilities once an

allegation surfaces in the media.

The following Iesponse concerns Allegation Numer

Two which reads:

The August 11, 1975, isaue of Time Magazine

reported the discovery of "Bureau manuals,

documents, and reports" in the apartment of

a KGB "operative" who was described as the

The response below is in the order and by numerical.

designation corresponding to the questiona raisea.

1.

How did FBI Headquarters first become

aware of the allegation?

Assoc. Dir.

This Bureau had learned through its

Dep. AD Adm. -

Dep. AD Inv. -

sensitive intelligence sources that Soviet

fof

Asse. Dir.:

Admin. -

- Mr. Adams

1

-

Mr. Jenkins

Comp. Syar. -

- Mr.

Bassett

1

MI.

Walsh

I = Mr: wannall

- Mr. Mintz (1

Mr

Hotis)

Ex?. Affairs

Files & Com.

- My: Cregar

- Mr. Phillips

Gen. Inv..

dans. -

TURE a tonation certaine so alerten as as made

Inspection -

available to the Administrative Division by Supervisor James E.

Intoll. -

Laboratory .

Plan, & Eval. -

nal inquiry.

Spec. Inv. -

instant LHM.

Training -

with the LHM by Legal Counsel Division.

A set of such material is

Legal Coun. _

Telephone Rm. -

Diractor See'y -

being retained by the SENSTUDY 75 Project. SECRET MATERIAL AJTARHE...

MAIL ROOM L

NW 68262 Docld:32989576 Page 12

TELETYPE UNIT ORIGINAL AND ONE COPY TO AG.

---

## Page 13

Re: U. S. Senate Select Committee

intelligence was targeting against our

personnel and was attempting to overhear

their conversations in restaurants in the.

area of the lew york office.

The head of

the New York Office was deeply concernea

over this activity and because of this

prior knowledge was concerned in July,.

1968, that a waitress employed in a nearby

restaurant appeared to have a great deal

of knowledge concerning matters pertaining

to the FBI in New York and an undue interest

1n FBI personnel.

2.

Was an investigation or inspection

conducted?

If not, was any other

action taken?

As a result of the above, a discreet

physical surveillance was instituted on

that waitress in July, 1968.

3.

investigation, or to take (or not to

take) other action?

The decision to conduct this investi-

gation.was made. by the then head of the

New York Office since the possible pene

tration attempts were

directed

at that

office according to our sources.

4.

Which Division, or operating level

(Headquarters or Field), conducted

the inspection or investigation?

The surveillance activity was

conducted

by Agents of the New York Office.

5°

How was the decision made as to which

Division or operating level was to

conduct the inspection or investigation?

No inspection of personnel investigation

was instituted until, as a result of the

surveillance on the waitress, it was revealed

NW 68262 Docld:32989576 Page 13

---

## Page 14

Re:

U. S. Senate Select Committee

that a Special Agent of the New York Office

had remained overnight at this female's

of this revelation this Special Agent was

New York.

6. Was the original allegation reported to

the Attorney Generad or any other depart

ment of Justioe offigial?

A review of Bureau filea does not indicate

that this incident was reported to the Attorney

General of any other Department of Justice

official at the time.

7.

Were the results of the inspection of

investigation reported to the Attorney

General or to any other Department of

Justice official?

A letter classified "Secret" was furnished

to the Attorney General on August 6, 1975.

concerning this matter. Delivered with this

memorandum is the backup documentation.

8.

Was prosecution or administrative action

(e-g. suspension or dismissal) considered

or taken?

The Special Agent involved resigned

following his interview effective close of

business that date, July 18, 1968.

1 - The Attorney General

=3-

NW 68262 Docld:32989576 Page 14

---

## Page 15

глин сполси, голнО, СиліКМАл

JOY'G. TOWER, TEXAS, VICE CHAIRMAN

•PHILIP A. MART. MiC. *

HOWANO Н. ПАКЕ.ІН., ТЕ:N.

MALTER.:

MONTALS, MINN.

BAHRY GOLOWATER, ARIZ.

VIALTEN D. AUDDLLSTON, KY.

MODERT MORGA:, N.C.

CHANLES MCG. MATHIAS.14..MD.

RICHARD S. SCHWEIKEA, PA.

GARY MART. COLO.

WILLIAM G. MILLEH, STAFF DIRECTOR

FREDRICK A. O. SCHWARI, JR.. CHIEF COUNSEL

CURTIYA. SMOTHERS, MINORITY COUNSEL

Cnited States Benate

SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES

(PURSUANT TO 5. RES. 11, PATH CONGRESS)

WASHINGTON, D.C. 20510

January 8, 1976

Michael E. Shaheen, Jr., Esq.

Special Counsel for Intelligence Coordination

Office of the Deputy Attorney General

U. S. Department of Justice

Washington, D.C. 20530

Dear Mike:

One of the subjects which the Committee will be address-

ing in preparing its legislative recommendations involves

the adequacy of the FBI's inspection procedures for handling.

allegations of misconduct and abuse.

In this regard we are

forwarding herewith a list of several such allegations which

have been made during the past few years and concerning each

of which we would appreciate your supplying us with the

following information:

1.

How did FBI Headguarters first become aware of

the allegation?

2.

Was an investigation or inspection conducted?

If not, was any other action taken?

3. How was the decision made to conduct (or not to

conduct) an inspection or investigation, or to take

(or not to take) other action?

4.

5.

Which Division, or operating level (headquarters

or field, conducted the inspection or investigation?

How was the decision made as to which Division or

operating level was to conduct the inspection ör

investigation?

6.

Was the original allegation reported to the Attorney

General or any other Department of Justice official?

JAN

19%6

NIW. 60262

Docld:

2939576 Page 15

---

## Page 16

Michael E. Shaheen, Jr:

Page 2

January 8, 1976

7.

8.'

Were the results of the inspection or investi-

gation reported to the Attorney General or any

other Department of Justice official?

Was prosecution or administrative action (e.g.,

suspension or dismissal) considered or taken?

19.

If any of the allegations on the attached list

were made today, would they be handled by the

newly-created office of Professional Responsibility?

In what manner would they be handled? If an investi-

gation were deemed warranted, which agency's personnel

would do the investigating.

In this regard, please

also advise concerning which agency's personnel will

be investigating recently-reported allegations that

agents of the FBI "attempted to coerce" a House

Select Committee on Intelligence witness "into

repudiating his testimony before the select panel."

Answers to questions 1 - 7 should be accompanied by full

• back-up documentation, including memoranda, inspection or

investigative reports, 302's, personnel reports, and communi-

cations to and from the field.

Your continued cooperation is appreciated.

Yours very truly,

John T. Elliff

Director

Domestic Intelligence Task Force

NW 68262 Docld:32989576 Page 16

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## Page 17

LEVI ASKS INQUIRY

IN ATTACK ON F.B.I.

Special to The dick fork Tires

WASHINGTON, Jan. 6-At-

torney General Edward H. Levi

has asked the Justice Depart-'

ment's new internal inspection

unit to investigate an assertion .

by the House Select Committee,!

on Intelligence that the Federal-

Bureau

of

Investigation

at-,.

¿tempted to coerce a commitice...

witness into repudiating his tes-."-

timony before the select panel..

A Justice Department spokes-,*:

nation about the incident from

A. Searle Field, the committee's

matter for investization to

department's newly created Of-

fice of Profesional Responsibil-

lity.

In a letter to Mr. Levi last.

week, Mr. Field reported

that

the witness, Martin L.

Kaiser,

had disavowed part of his comm-

mittee testimony after a six-

hour interrogation by

F.B.I.

agents.

Mr. Kaiser heads a Maryland

company that makes cisctronic

eavesdropping equipment for

the F.B.I. and oiner Federal

law enforcement agencies.

His

testimony

before

the

• House Committee in October

raised the possibility that some

# F.B.I. agents had received kick-

E backs when another electronics:

i company sold to the F.3.I. mate-

•rial it had acquired from Mr..

Kaiser's concern.

NW 68262 Docld:32989576-Rage-17

---

## Page 18

-..

LIST OF ALLEGATIONS

1.

The March 20, 1975 edition of the New York Times

Ieported that "the Federal Bureau of Investigation has

carried out kidnappings of a number of persons in the United

States that it believed to be clandestine agents of foreign

intelligence services, according to two former FBI agents."

2. The August 11, 1975 issue of Time Magazine reported

the discovery of "Bureau manuals,

documents and reports" in

the apartment of a KGB "operative" who was described as the

'"mistress" of an FBI agent.

3.

The August 11, 1975 ISsue Of Time Magazine also

reported that in 1961 a Bureau agent was "suspected of giving

FBI reports to the Soviets."

4. The March 29, 1975 edition of the Washington Post

reported allegations that an FBI agent had been "bribed by

a member of the Mafia."

5.

A recent edition of Time Magazine reported that

"sensitive" FBI documents. "were carried off in an FBI truck

to West Virginia's Blue Mountain Ridge Club, a

Shenandoah

Mountain Hideaway used by innermost FBI officials for regular

poker games with CIA and other cronies. The papers were

burned inthe Club's large fireplace."

-NW-68262-Đoeld:32989576_Page_18_

---

## Page 19

1: Thế man da keep his word!

•Alleged volations

the former agent said, and 20

Several lawyers,

Including

peared at an appointed meeting

representatives of the Ameri-

with

an

F.B.I.

intelligenco

agent a week later.

Civil

Liberties

Union,

But the

former agent ac-

pointed out that an alien ille-

knowledged that the technique

gally

in this country is by

Haw alforded many of the same

contained a critical flaw: Tho

¡guaranters of due process

as!

others

•Amorican citizens.

The bureau's only legal alter-

Me her to met tronas.

riences to their own govem-

natives in such cases, one law-

ment, and thus became triple

said, were to tum such

Ten said were to then

agents.

gration and Naturalization ser-

"Playing for Keeps®

vice for a deportation hearing

Trio use of kidnapping, 'one

or to charge them with illegal

of the fonner agents empha-

entry or espionage.

sized, "was a tough game. That

To have held such an individ Iwas when you're playing for

ual incommunicado

for more, keeps," he said.

than a day,

the lawyer added,

He said that, to his knowl-

would have violated his rights edge, it was never employed

to Es formally arrested

and

against the domestic

- NW 68262-Docld:32989576: Rage 19

3120175: 14 Trin

2 Former Agents Say

By JOHN M. CREWDSON

charged with a crime, to habeas

Ipecial to Thie New York Ilmen

¡corpus and to the

WASHINGTON, March 19_jof counsel, among oiners.

¿The Federal Bureau of Investi-l

Kidnapping, the former agent

gation has carried out kid-said, was a

nappings of

number of. When

means

persons in the United States, could be quickly found to inter.

that it believed to be clandes-:

rogate a suspected

subyersiva.

tine agents of

foreign intel-;or to "turn"

him into a dousie

'ligence services, according to agent willing to report 1o

is.

, two former F.B.I. agents with!F.B.I. on the activities

of his

i"direct knowledge of such oper-lown intelligence service.

stions.

It was.

he said,

• "the type

One of the former agents!

¡of thing that's never done lign:

.. "placed the number of such kid-ily."

nappings over the years at'

Both men denied that pavsi-

;"fewer than 10" and said that,ical torture was ever employec

ads far as he knew, the tech-lin

such cases, althouch one

pique had not been employed said that, when a suspect had

by the bureau since the mid-been located, "You'd pick his

lup and take him

He said that lts use had and work him over." somewhers.

foeen occasioned by such cold! The victims were often threat.

twar incidents as the Cubanlened with death as punishment.

missile crisis

"when things.for noncooperation, he added.

"were pretty rough," and thatlalthough neither official re-

Te was

"certain that this is called any instance in which

310 longer going on."

A spokesman for the bureaul

a hostage had been murdered

One of the former agenis

isaid only that the hureau would maintained, however, that men-

¿adopt "a no-comment posture"ital duress was an impariani

swith respect to the kidnapping part of such interzaliong, ana:

allegations.

he described one case in which.

•- A Pattern In Targets

person

was

seized

-Both of the agents said that, neuin" for "several weeks."

with one possible

exception,

the targets

selected by

the

Absence Not Noticed

F.B.I. for kidnapping were sus-

Because the man was sor

pected intelligence operatives i operating under diplomatic cov.

from Communist countries wholer, as many foreign espionaze

had entered the United Statesjagents do, and was not other-

Elegally with forged American wise an official personage: his

passports and other identity extended absence went publicy

documents.

unnoticed, o the former

agent

The use of the kidnapping said.

lechnique was also confirmed.! The spy, he said. know his

although not in detail, by two captors only as

"L'.s. inte!.

other former F.B.I. agonts..

ligence aRches," ot

"In separate interviews, the o!

two former

whom was with him con-!

agents

who

de-istantly.

"scribed the alleged kidnappings)

"Sumeone slept in the same

left open the possibility thatibed with him. We even wan:'

th' one instance the bureau had! with him to the baib.oom."

erred in kidnapping a person: he said.

who proved not to be a deep-

After weeks of intense inter.

sover spy but a legitimate: rogatian the man broke ari

American citizen.

agreed to bec.mne

doubit

One of the agents conceded. lagent and was li1, in he

however, that in every case furmer agent's ords:

tha practice was "completely!

"You are a fire Than. Do

Bronz-completely in violationivou know what ihit tras

Di cisil liberues. No question: If you leave here ard sa

5.r2:

£bout it," he added.

¡keep your piranis's

wi.t

• But he said, "In the business! do noting turdis m: d io.

of Intelligence, you're faced you have made a timi. ni

That the conces let a policy or no wii cano you of far.

• sadoo do tomor

extra-legal acisliues."

---

## Page 20

6: 9g.47

THE NEW YORE TIMES, THURSDAY, MARCIS 30, 1975 •

F.B.I. Has Kidnapped Suspected Foreign Spies in U.S

arganized crime figures, butjwhen to was a small child Aller receiving cutborizationioperated a formalized "kidnap-iever made in writing and thas

eras reserved for operatives ofland was now seeking to doc- diractly trora J. Edgar Hoover, ¡ping squad," at one dime therel consequently no record of la

mas a colerie of rigants who exises. within the burcau's files.

"'could and would" carty out!

police, os refresantatives of

knowledge of the lednapping

illegal high-risk operations such operaticas

seized this tusgect and zushed

"very,

ouse sorkablas mtelligenoe|scancome

the records

as burglsries and kideuppings. Closely held he said:

very

Iclerk end otier there raner- him 80 a secluded "saie house"

bring

~ But by the mid-nineton-six-limited

to str. Hoover,

wiio

This techalqus ties maticu-ltured had entfoil a pumarent

as sis buras for Intamogaboo, ties, he said, Diese onen had personally

approved tich

July uselul, he explaired, whon polvic injury as a youth.

the two sources said.

bico.no. convinced

tiat Mr.| thens; a handiul of top officials,

,the FBI fered that it SIsl

The inquting man speared

Oie of the formar agentollicover would no longer back

and the esents in the fiold

rocur to lase track of & sus to walk perfectly, however, and|discribed the interrogation as them and they rutusad so un- Wio carried them cut

i pailed agcat posiag as

en the corrispeople,

"stern" one, and the other|dertake ouch track without "pa-

Ismericon citizan.

"Nobody will edmit a daisin

"You'd suersity your men office of the rB.I.

busines," ciough sicilier pro-|which Mir. Hoover tras unwill- thei

land follow him to develop whoi

•he was coniacting hans.

" thie

"Thank

God

the resident

specific dalils of ibsling to give.

carries sio stallite of lialla.

fariner eyeat said,

"but youlagent was on the ball," one of

ordeal to which this dists was

Too Dangerous to, Accept

the sources said, "and went over

subjected.

itions.

•always ran the risk of losing, and checked the matter out."

Both sinnes descrised the

"You'd call a guy up

'The larryers intervienzo la

and contaction with

him

200 collion people.

operation as a success but de-

last him to do Barrelhing,

Lined to Sovist

• chit, of

legality

Ora instance in shich that.

clined to elabäate an its pre-(source rocalled,

"and bc'd re-lhorever, that Fedoral and daid

"concom played en important

The F.B.., to said, placed cice disposition or the subject's mind you that ho lied two kidnapping statules had probs

•part was decorüed by the twolthe mysterious stranger under ipresent plercabouts...

kids in college and he could.

be on the dinner, els see his rutirement dom the lares bee camale by the

abductions, sinco no sanjuli

fice in a mural Middle West States illegally.

jat the country would soi ta

Corridy seIt sest Ure Caradian(

When the lucal F.B.Y. agents resuit of die.

and asked tos @ copy became

concerned that theylinterrogation, or while attempt-led

sadmping er'ect chat, yeu could gerarrest gred by pursuing that inves.

the man declined te

of his birth carifiaste. •

would lose the cuspoct, the ing 1o escape.

The firgt former egent con-identily either the F.B.Y. agents

The man explained to tho source eccounted, a

derk thist he had left die region trus made "lo hit hire, decision

The fusir agat, kaid Satifire thee points, adding chat or the suspected subversivas las

buraiu never'no mention a kidnapping wus volved in the kidnappine

Ad 28.1.34

issciltairsmens.in349-- 49-140

i to miss

NW 68262 Docld:32989576 Page 20

---

## Page 21

V.100

rigil, 1975

FBI

B Seduced by the KGB

P.19

While concentrating its efforts upon

the CIl, Sunaior Frank Churelis sic-

cial commince that is investigaling U.S.

intelligerse programs has alo been ac-

cumulating data on the Til. Last wook

Tiss: learned that the commitled his

heard some starling reparis of mis-

, deeds, break-ins and corer-ups, inclus-

ing the story of an arent whise mis-

tress was linked to the Sariet kon.

The alfair was

discovered in 1563

• when a clA source in Moscow reparied

mat lot oficials mere jubilant about

galling one of their opertires in led

with an I magent. To check out the Cla's

ropore, the rei broke into the apartment

of the roman, a middlö-aged waitress.

and discovered bureau manuals, doin-

ments and rogers. Some Ill citicials

urged prosecution, butl. Edgar Iloaver's

palace guard of deputies sopped the in-

quiry do avoid embarrassing the bureau

and lis bois. The agcnt nas simply al.

Jowed de resigo. The aGo aiso appears

10 hase pencirated tne Fli in 1901. in

this case, the agent su-perted of riving.

Fill reparis to ile Soviels la poterrandi

test on him mas inconclusire) was. fied

on a minor technicality.

• Tlie Church committed has also

turnco up evidence da varicly of estra-

jegal activities practiced by the 1l. Thic

Uncan is said to have maintained sas-

cial schools to train agonts in the resis-

niques ef the "tag jas." a cumiemisin

for breaking and enicring. The amdu-

alci-lockpickers. burglars and a is

saficiactors-managed lo sical seme

code books from foreign crubussies. Hor

this they receired "incentive awards"

ranging from 5250 10 S500

The Senators would like 1o kaow

more alson the miraie hies laser keri

on pollie officiais and a hat use lie maile

ficial, has soid Slit that he had been

questmed three times by ine cronitoe

about the densions assembled by-ll a-

les ca scores ef preple. Just shout haps.

Joined d0 some of thie biles aller ili-

se sdeath in 1972 is still a mastery.

NW 68262 _Docld:32989576-Page 21

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## Page 22

Ful

-

/;

Justico Dopt. Toolis Xudo Burcan Bribe Intestigation

FBI Bid to Kill Probe Charged

• By Ronald Kessler

The informed source snid: pered by the WRl's handling of FBI as a member of the Luchese

Nashinston Pöst Sialt Writer

'Kelley's requests, which were; the case heiore kelley

became: New York Mafia family.

Shortis after he became di | known to onls a few Fil and director in

July.

1973, onc

Caputo

source said.

is alleged to have

rector of the FBI. Clarenue Ml. 'department officials amounted;

¡bribed Stabile.

Chick among these problems

Kelley twice made unstucess lu

"pressure"

and an "at-l

The trial, lowerer, centers

-which were confirmed by al on the question of whelher Ca-

ful attempts to stop a Justice tempt to suppress it [the in second source — was the fact! puto lied when he told a rand

Department investigation

of;vestigation)."

ithat the FBl immediately con-jury he had not admitted to

an allegation that

all

FBI:

The FBI, the former prose-fronted Stabile with the bribelf'Bl agents that he paid off

agent had been bribed by a cutors

said, is a

fact-finding, allesation

delore

attemptina, deis York city policemen.

imember of the Matia, accord. azency that normally dues not lo

gather evidence

against

licached at his lawles, Pa..

ling to an informed source.

i express opimons on whetherikim.

country home Caputo, 71, said

The

charge

W'&S

Iceledian investigation started by In doing so, the source said. lof the charze he paid oif an

against dew

York FBI agent Justice should be continued.

¡the FDI agent sare the agent; FBl agent,

"I sot nothina

Joseph Stabile l two fellow.

Another

former

iederall treatment it

would

not

to

give- do with this."

New

York

agents.

One said prosecutor said the FBI,

onl others

suspecied

of

criminall

Asked it he is a member of

Stabile had admitted to himirare occasions, has expressed; beharior.

the mafia, Caputo said. "come

that he took the bribc.

i such an opinion based on man-l

In addition, the source said, on. I have nice children. Jis.

An investigation was closed power consicerations. But FIl'at that same time the FBI via kids went

nice

Catholir

when it turned un no esidence intervention when it is a tar-flated its

own procedures by schools. They sas sou're with,

against Stabile. But the iro.

get of the investigation would failing to inform

the justice this. with that."

agents who niade the accusa.

be "imnroner." the former Jus-i Dopariment that it was con-

Many of the essential facts

tion told the Justice Depart lice Department official said.l ducting an investigation of the surrounding the bribe allesa..

ment's orgainized crime strike:

Sources familiar with

the bribe allegation.

tion - including the identity of

force in Brooklyn that the FBl Keller's netion

bribe allezation attribuated

An FBI spoiesman said Kei!the accused agent. Stabiic

insestigation

had

bech

feelingiley cannot comment

on the! were revealed in pre-trial tes.

"corer-up," the source said.

long held by FBI leaders that, bribe illegation because mansitions taken last monts

for'

ans hint of corruption would!ot

the sarie

issues will

bei Caputos

partmeni investigation,

This triagered a Justice De irreparably damage the hu-raised in a Brooklyn perjury trial.

pending

perjury

is continuine, the source said.

whic" reau's image and cifective- trial scheduled to begin April

Desnize the origin of the ress.

! 14.

Justice Department investiga-l

Although Kelley's attempts:

The trial. to be held in u.s.

tion, the source said, Keley Were unsuccesstul, the Justice: district Cour, is of Join Ca-

asked

nigh-ranking

depart. investigation had been ham-iputo, Who is idcntified by the

meni officials in 1$73 to cail:

the Brooklyn prosecutors off!

the case on the arounds thel

FBI had found no violations of

law.

In addition, the source said,

• Kelics

complained

that

thr

Justice investigation was hurt.

ing FBI morale.

During the ensuing dispute,

he said, Henrs F.

Petersen.

then chiet of the Criminal Di-,

rision of Justice, intormed thie

Brooklyn prosecutors ot Kel.

leg's allempls and ludd Kelley

the investigation

would con-

tinuc.

¿nother source said Peter-

sen later cited the dos luck

Incident so show the neeit fur

an inspector deneral

within

the Jastice Department to j-.

lice the Fil.

Petersen, who has since ler!

the Justice Departsen.

firmed

recently that Kelley;

wanted the intratication slop-!

pou but conle not recail inessi

he had made his sions komen.i

Polorion said he

Meld noti

risperto that it was in the dorm

of a lesur-l.

•There was a difference of

Hopiniuli, allel

lopined el the Cranial las

stut pretadlod. do the P1il ao.

quiesce in that daress.

said.

NW 68262. Docld:32989576 Page 22

---

## Page 23

62-116395

January 26, 1976

emi-

by

diss

This document is prepared in response to your request and is not for

is limited to official proceedings

be disclosed to unauthorized person

Its use

the FBI e

nation outside your Committee.

your Committee and the content may nut

express approval of

el without the

U. S. SENATE SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES (SSC)

RE: ALLEGATION NUMBER THREE

Reference is made to Senate Select Committee (SSC)

letter dated January 8, 1976, asking for FBI responses to

eight questions concerning each of five allegations of FBI

misconduct and abuse.

In modification of the SSC letter,

Mr. John T. Elliff, SSC Domestic Intelligence Task Force

Director, advised Mr. W. O. Cregar of this Bureau on

January 12, 1976, that the purpose of this inquiry is to

learn what information is provided to the Attorney General

consistent with his oversight responsibilities once an

allegation surfaces in the media.

Three which reads:

The following response concerns Allegation Number

The August 11, 1975, issue of line Magazine

also

reported that in 1961 a Bureau Agent

was "suspected of giving FBI reports to the

Soviets."

The response below is in the order and by numerical

designation corresponding to the questions raised.

1. How did FBI Headquarters first becom

would

aware of the allegation?

EW/RGA

Assoc. Dir.

Dep. AD Adm.

Dep. AD Inv.

Asst. Dir.:

Admin.

Comp. Syst.

1

- Mr. Adams

1

- Mr. Bassett

1

Cregar

Ext. Affairs

• Files & Com..

Gen. Inv. .

Ident. -

inspection -

Intell. -

Laboratory -

Plan. & Eval. -

Spec. Inv. -

Training.

Legal Coun. _

Telephone Rm. -

Director Soc'y -

MAIL ROOM L

NW 68262 Docld:32989576 Page 23

In March, 1962, a hand-printed letter

was sent to then Director John Edgar Hoover

1 - Mr. Jenkins

1

-

Mr.

Walsh

{ = Mr: wannall - Mr. Hotis)

Wannall

1

- Mr.

• Phillips

for get

• made

nal inquiry.

nal inguiry. a copy of referenced letter is attached to yellow of

instant LHM.

‚Material being supplied to the SSC will be

with the LHM by Legal Counsel Division.

A set of such material is

being retained by the SENSTUDY 75 Project.

TELETYPE UNIT L

ORIGINAL AND ONE COPY TO AG.

•SECRET MATERIAL ATTACHED

GPO: 1975 0 -

---

## Page 24

Re: U. S. Senate Select Committee

which stated that a man would be in a cer-

tain telephone booth in Rockville, Maryland,

on March 14, 1962, between 8:15 p.M. and

8:45 p.M.

According to the note this man

should be followed to find out who was

selling FBI reports to foreign officials.

2.

Was an investigation or inspection

conducted?

If not, wag any other

action taken?

An investigation was immediately

initiated.

3.

How was the decision made to conduct (or

not to conduct) an inspection or investi-

gation, or to take (or not to take) other

action?

The letter upon its receipt in the Bureau

was

referred to Intelligence Division (then

Domestic Intelligence Division): Special

Agent Richard D. Cotter, Number One Man to

Section Chief W. R. Wannall, Nationalities

Intelligence Section, acting for Assistant

Director William C. Sullivan, made the deter-

mination to conduct active investigation.

Special Agent. Cotter prepared a memorandum.

from Mr. W. R. Wannall to Mr. W. C. Sullivan

dated March 14, 1962, advising of the receipt

the letter containing the allegation and

setting forth his instructions to the Field

for active investigation. This memorandum

was approved by then Director J. Edgar Hoover:

4.

which division, or operating level lead-

quarters or field), conducted the inspection

or investigation?

The investigation was öriginaily conducted

by the Baltimore Field Office with subsequent

investigation being conducted by the Washington

Field Office:

5.

How was the decision made as to which

-Division or operating level was to conduct

the inspection of investigation?

-2-

NW 68262 Docld:32989576 Page 24

---

## Page 25

Re: U. S. Senate Select Committee

Since this was an investigative matter

in the intelligence field, it was the

decision of the Intelligence Division that

it should be handled by the Baltimore Field

office, in whose territory the phone booth

was located.

6.- Was the original allegation reported to the

Attorney General: 0r

any other Department of

Justice official?

A review of Bureau files does not indicate

that the original allegation was ever reported

to the Attorney General or to any other Depart-

ment of Justice official.

Were the results of the inspection of

investigation reported to the Attorney General

or any other Department of Justice official?

A letter classified "Secret" was furnished to

the Attorney General on August 6, 1975, concerning

this matter. Delivered with this memorandum is

the backup documentation.

8..

Was prosecution or administrative action

(0.9.

suspension or dismissal) considered.

• taken?

NO.

Inasmuch as investigation was unable to

substantiate the allegation that a Bureau Agent

was furnishing information to the Soviets, no

administrative action was taken in connection

with the allegation.

However, a suspected

Special Agent was censured for an unrelated

violation of Bureau regulatione as a result of

our investigation.

1 - The Attorney General.

• 30

NW. 68262 Docld:32989576 Page 25

---

## Page 26

FRANX CHURCH, IDAHO, CHAIRMAN

SONIE GO TOMER, TEXAS, VICE EMANIMAN

PHILIP A HART. MIC.:

HOWARD H. BAKER, JR., TENIN,

WALTER , MONDALE, MINN.

BARRY COLOWATER, ARIZ.

•HALTERD.INODI.LOTOM, KY.

CHARLES MCC. MATHIAS, 29., MD,

RODERT MONGA:S, N.C.

RICHAHO J. SCHWIIKER, PA.

GARY HATT, COLO.

WILLIAM G. MILLER, STAFF DIRECTOR

FREDERICK A. O. SCHHARI, JR., CHIEF COUNSEL

Inited Siates Senate

SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES

(PURSUANT TO S. RES. II, PITH CONGRESS)

WASHINGTON, D.G., 20510

January 8, 1976

Michael E. Shaheen, Jr., Esq.

Special Counsel for Intelligence Coordination

Office of the Deputy Attorney General

U. S. Department of Justice

Washington, D.C. 20530

Dear Mike:

One of the subjects which the Committee will be address-

ing in preparing its legislative recommendations involves

the adequacy of the FBI's inspection procedures for handling.

allegations of misconduct and abuse.

In this regard we are

forwarding herewith a list of several such allegations which

have been made during the past few years and concerning each.

of which we would appreciate your supplying us with the

following information:

1. How did FBI Headquarters first become aware of

the allegation?

2.

3.

Was an investigation or inspection conducted?

If not, was any other action taken?

How was the decision made to conduct (or not to

conduct) an inspection or investigation, or to take

(or not to take) other action?

4.

Which Division, or operating level (headquarters

or field), conducted the inspection or investigation?

5. How was the decision made as to which Division or

operating level was to conduct the inspection or

investigation?

Was the original allegation reported to the Attorney

General or any other Department of Justice official?

JAN

19%6

NW 68262

Docl

Page 26

---

## Page 27

Michael E. Shaheen,

Jr:

Page 2

January 8, 1976

7.

8

19.

Were the results of the inspection or investi-

gation reported to the Attorney General or any

other Department of Justice official?

Was prosecution or administrative action (e.g.,

suspension or dismissal) considered or taken?

If any of the allegations on the attached list

were made today, would they be handled by the

newly-created office of Professional Responsibility?

In what manner would they be handled? If an investi-

gation were deemed warranted, which agency's personnel

would do the investigating. In this regard, please

also advise concerning which agency's personnel will

be investigating recently-reported allegations that

agents of the FBI "attempted to coerce"

a House

Select Committee on Intelligence witness "into

repudiating his testimony before the select panel.""

Answers to questions 1 - 7 should be accompanied by full

• back-up documentation, including memoranda, inspection or

investigative reports, 302's, personnel reports, and communi-

cations to and from the field.

Your continued cooperation is appreciated.

Yours very truly,

John T. Elliff

Director

Domestic Intelligence Task Force

NW 68262 Docld:32989576 Page 27

---

## Page 28

-

LEVI ASKS INQUIRY

IN ATTACK ON F.B.I.

Special to The dick Sore Mores

WASHINGTON, Jan. 6-At-

torney General Edward H. Levi

has asked the Justice Depart-

ment's new internal inspection

unit to investigate an assertion

by the House Select Committee,

on Intelligence that the Federal-

¡Bureau

of

Investigation

at-,.

tempted to coerce a committce...

witness into repudiating his tes-..

timony before the select pancl..

A Justice Department spokes-.*

man said that Mr. Levi,

sponding to a request for inior..-

mation about the incident from

A. Searle Field, the committee's

staff director, had assigned the:

matter for investization to the

department's newly created Of-

fice of Profesional Responsibil-

ity.

In a letter to Mir. Levi last.

week, Mr. Field reported that

• the witness, Martin L. Kaiser,

had disavowed part of his coin-

mittee

testimony after a six-

hour

interrogation by F.B.I.

agents.

Mr. Kaiser heads a Maryland

company that makes electronic

eavesdropping

equipment

for

the F.B.I. and other Federal

•law enforcement agencies.

His

¿ House Committee in October.

raised the possibility that some

• F.B.I. agents had received kick-

backs when anotlier electronics:

"company sold to the F.B.I. mate-

•rial it had acquired from Mr..

• Kaiser's concern.

NW 68262 Docld: 32989576-Page 28

---

## Page 29

LIST OF ALLEGATIONS

I. The March 20, 1975 edition of the New York Times

reported that "the Federal Bureau of Investigation has

carried out kidnappings of a number of persons in the United

States that it believed to be clandestine agents of foreign

intelligence services, according to two former FBI agents."

2. The August 11, 1975 issue of Time Magazine reported

the discovery of "Bureau manuals,

documents and reports" in

the apartment of a KGB "operative" who was described as the

'"mistress" of an FBI agent.

3.

The August 11, 1975 issue of Time Magazine also

reported that in 1961 a Bureau agent was "suspected of giving

FBI reports to the Soviets."

4. The March 29, 1975 edition of the Washington Post

reported allegations that an FBI agent had been "bribed by

a member of the Mafia."

5.

A

recent edition of Time Magazine reported that

"sensitive" FBI documents. "were carried off in an FBI truck

to West Virginia's Blue Mountain Ridge Club, a Shenandoah

Mountain Hideaway used by innermost FBI officials for regular

poker games with CIA and other cronies. The papers were

burned inthe Club's large fireplace."

- NW-68262-Docld:32989576_ Page 29

---

## Page 30

fr: "The mar da"keop his word ?

- Alleged Voladons

the former agent said, and ap-

peared at an appointed meeting

including

present Yes or he ming

with

an

F.B.I.

intelligenco

agent a week later.

Civil

Liberties

Union,

But the former agent ac-

pointed out that an alien ille-

knowledged that the technique

gally

in this country is by

Law afforded many of the same

contained a critical flaw: Tho

F.B.I. had no way of knowing

¡guarantees of due process as

American citizens.

whether the man,

others

like him, reported their expe-

• The bureau's only legal alter-

riences to their own govern-

natives in such cases, one law-!

ment,

and thus became

triple

yer said, were to fur such

individuals over to the Immi-

agents.

gration and Naturalization ser-

Playing for Keeps"

vice for a deportation hearing

To use of kidnapping, one

or. to charge them with illegal

of the former agents empha-

entry or espionage.

sized, "was a tough game, That

To have held such an individ-I was when you're playing for

val incommunicado

for more' keeps," he said.

than a day, the lawyer added,

He said that, to his knowl-

would have violated his rights edge, it was never

employed

bs formally arrested andlagainst the

domestic leri

_NW-G8262-Đoeld:32989576-Page-30-

3/2065: 14 Tran

2 Former Agents Say

By JOHN M. CREWDSON

charged with a crime, to habeas

Bpecial 10 The New YOrk Ilmes

¡corpus

and to the

assistance

WASHINGTON, March 19_jof counsel, among others.

*The Federal Bureau of Investi-l

Kidnapping, the former agen:

gation has carried out kid-isaid, was a

last resort

•nappings of

number of When

no

alternative

mears

persons in the United States could be quickly found to inter-

that it believed to be clandes-:

rogate & suspected

suoversivs.

tine agents of

foreign intel-lor to "turn"

him inio a dousie

ligence services, according to agent willing to repari 10

ire

two former F.B.I. agents with! F.B.I, on the activities

of hig

i direct knowledge of such oper-jown intelligence service.

ations.

It was.

he said.

"the type

One of the former agents of thing that's never done lign:-

-placed the number-of such kid-ily."

nappings over

the years at

Both men denied that physi-

"fewer than 10" and said that, cal torture was ever employee

as far as he knew, the tech-lin

such cases, although one

• nique had not been employedisaid that, when a suspect had

by the bureau since the mid- been located, "You'd pick him

lup and take him

He said that its use had'and work him over somewhere

faeen gecasioned by such coldi

The victims were often threat-

twar incidents as

the Cubanlened with death as punishmen:.

missile

crisis

"when things.for noncooperation,

he added.

"were pretty rough," and thatlalthough neither. official re-

the was

"certain

that this is called any instance in which

to longer going on."

A spokesman for the bureau!

a hostage had been murdered.

One of the former agents

gaid only that the bureau would maintained, however, that men-:

¡adopt "a no-comment posture" ital duress was an imporiant

with respect to the kidnapping part of such interrogations. and:

allegations.

he described one case in which.

- A Pattern in Targets

person

was

seized

and

- Both of the agents said that, deuse" or" several wee sa

with one possible

exception,

*The targets

selected

by

the

Absence Not Noticed

F.B.I. for kidnapping were sus-!

Because the man was noi

pected intelligence

operatives operating under diplomatic cor.

from Communist countries wholer, as many foreim espionaze

had entered the United States agents do, and was not other-

#legally writh forged American wise an official personage: his

passports

and other identity extended absence went public.

documents.

unnoticed, the former

• The use of the kidnapping'said.

schnique was also confirmed,

The spy, he said, knew his

although not in detail, by two captors only as

"L'.S. intel-

other former F.B.I, agronts.

ligence agents," at least one;

"In separate interviews, the of whom was with him mon-y

two former agents who de istantly.

scribed the alleged kidnappingsi

"Someone slept in the same

left open the possibility thatibed with him. We even wa?:

in one instance the bureau hadiwith him so the bashioom.".

arred in kidnapping a person: he said.

sho proved not to be a deep-l

cover

After weeks of inierse inse

spy but a legitimate rogation the man bare 1d

American citizen.

agreed to become

One of the agents conceded. lagent and was toid, in ira

however, that in every case lurmer agentsmorás:

the practice was "completelyi

"You are a toe mi' Dos

Trong-completely in violation you know what is mates:

of civil liberties. No question. ll you leave here tie larsi.

ebout it." he added.

: keep your promise in at.

• But he said, "In the business! do nothing furcher es su; i.

of intelligence, youre

faced, you have made a ca...rus

mith the concept of expediency. land no slit sane you t= year!

That oftentimes trads you into word?

extra-legal actitiues."

act to

---

## Page 31

2k0s66cc0e3 02680:

THE NEW YORK TIMES, THURSDAY, MARCE 20, 1975

F.B.I. Has Kidnapped Suspected Foreign Spies in U.S

saganized crimo figuros, butjeher so tas e small

child

After receiving euthorization l operaled a formalized "kidnap-lever made in atlling and that

mas resarrad por apcratives ofland was now seeking to

doc-¡directly frora J. Edgar Hoover, ¡ping squad," ai ane time there consequently no record os

the Sowlot K.G.B., ur scorelument his family history! The the lato F.B.I. directer, a sir

mas a cuterie of agents wholexists, within the bureau's files.

polise, os representatives of name

""oould and would" carry out)

la foris. er resident ol the county,

acher sortetbioc intelligend|seassona

was shat of cially picked team of agents illegal high-risk operations such operatics

Knowledge of the kidnapping

whoo' the records

sarvices.

¡clerk

enized this rupect and sushodles burglarics and kideuppings. cosely helda,

every,

very

he said,

being

erd odiers there rantein-

him 10 a secluded "sale house" a But by the mid-ninetorn-six-limited to Mr.

Tilio

This technique mas particu-ibered had sufferl a perarent or die bunsa for LiterogslOd, les,

he said,

these man hadlpersonally

approved

cic))

cs

Lily usciul he explaired, when|pelvic injury as ü youtb

the two sources said.

Meco.ne convinced

thiat

Mr. | Cheni; a handlul of top officials.

•the FBI fewed that si was!

Oie of tir former apectallicover would no longer back

end

the spents da

tho field

„ficted

agent

"Nobody will admit a danan

american cilizen.

"You'd ideruity your

office of the F.B.I.

business," though seither prolwhich tir. Hoover tres unwillI

the crine

"Thank God

the resident

vided spocilic dilalis or

shaling to give,

carties sio statute of lunity

he was contacting tise,

110uaer sgent said.

"but you agent was on the ball,"

one of

cideal to rubich liu deat was.

Lions.

the sources said, "and went over

Tie lasgers interulered in

•always ran the risk of dosing, and checked the matter out."

subjectad..

Boil dances descreud the

"You'd call a guy up

him in 200

million pecule.

oleration as a success but de-

ask him to do something,

and connection with the legality

" the, of

One insteirce in stuct thati

• Lited to Sovist.

clined to clubarate on its pre-source rocslled,

these

operations

s.llJ

'concern played an inpertant

"and he'd re lhowever, that Foderal and Saio

The F.B.I., he said, placed|cise disposition es the subject's mind you that tio

part was descried by the two!the mysterious stranger under cresent whereabouts..

(kids in college and the could'

had two kidnapping statules had proba.

Ily not bien violated by tha

fortres a: 0218.

(surveillance and evertually bel

One 'ce the tonner eguirls

see has rutirement doris, the arents tho carried out tho

In die early ricescon-sixties. /como

•they recalled, a mon

convinced that he was maintained, horever, t'it sonelross."

abductions, tinco no ranjos

ely all be recons a see intelle condiages a visaster

expicnage! Mis wust was excesdingly was extracted.

genetrated.

the. Unitediagents tavolval in these opera-¡dongerous," dha second foiner

peesuse "the best literats

five in a nural Middlo West Stares illegally.

liong hid cier dial as a dirtctlF.I.1.

man said.

County set seIr Ure Caradian!

When the lucal F.B.I. agents resuf of

"You" wald'as the country woud soi sa

• bariut and asked for a copy bucare concerned that theylinterrogaton, or while aren-ed.

oh, co die air gent, you could ger arrest- servedy the sun decline se

.al his birth cortifi...te.

would lose the suspsct, the ing to escape. •

The firot Sonner agent con- identily either the F.B.I. agenta

lie men exclaines lo tha source rocountes a decision

Tie toms agues taid sintifired these points, idding that or the suspected subversivas li

dork that he had left die neviod tas made "o hit bir."

although tho

burasu acver'no mentios el kidnapping was volved in the kidnapcinga

NW 68262- Docld:32989576-Page 31

---

## Page 32

Hi!!

110g, 11, 1975

FBI

E Seduced by the KGB

8.19

While concentring its efforts upon

the Clo, Senair Frank Church's spe.

cial commitice that is insestigating U.s.

intelligerce prognoms has alo buch ac-

cumulating data on the nat. Last drck

Tise learned tat the commitree has

heard

some starling reports of mis-

deeds, break-ins and coser-ups, inclus-

ing the story of an agent whose mis.

dress. 1a5 linked to the Sovict ron.

The affair was discovered in 1563

when a ClA souice in Moscow reparied

that kGb officials mere jubilant about

selling one of their operatives in lad

withan marent. To check out the Cia's

report, thie Fil broke into the apariment

of the roma, a middle-aged waitess,

and discarered buican manuals, doct-

ments ind

repons. Some 1l cficials

urged prosecution, but 1. Logar fleavers

palace guard of deputies sopped the in-

• quiry to avaid embarrassing the bureau

and lis boss. The agont wals simpiy al-

lowed to resign. The nGs aise arcars

10 hase penctrated the Fri in 1901. In

this case, the areat suspected of givinus:

Tal reparis to ile Soviels la poleragli

.. test on him vas inconclusive) was fied

on a minor techaicality.

Tie Church commintee his also

turncá upevidence of a varicy of estra-

•legal notivities practiced by the 1l!. The

Uncan is said so have innintained spc-

cial schools to train agents in the loch-

niques cí the "tag jab." a cuplemisin

for orcaking and eniering. The eraju-

alci-lackpickers, burglars and a lis

safecrackers--managed to sical some

code books from forcian embassies. For

this they received "incentive awards"

ranging froin S250 io Sado.

The Senators would iike lo know

more all the privaie files laser dor!

on public oficials and what use lie madle

ofthem.John dichr.aformertilist.of-

ficial, has sold 11:e that ile had been

questioned due: times by ihe commited

about the daisiers assembled by-ll.

ves on scores of prople. Just shant haps-

paneel do some of the tiles aller 1lib-

sei's dosth in 1972 is still a maslery.

-NW-58262Docld:32989576 Page 32

---

## Page 33

Fudd

-.

Justino Dropt, Toolis Tute Burean Bribe Intestigation

FBI Bid to Kill Probe Charged

By Ronald Kessler

.; The informed source

said: pered by the F'Bl's handling of F'El as a memher of the Luchese

Machintion Post Stall Writer

(Kelley's requests, which were the case'bciore kelley becane; New York Mafia family

Shortis after he became di knon to ons a ser FBl andidirecior in July, 1073, one

Capuro is alleged to have

rector of the FBI, Clarenee al. denartment officials amounted source said.

brihed Stabile.

Chief among these problemsi

Kelley tsvice made unsuccess to "pressurc"

and

an "at-l

The trial, however.

centers

- which were confirmed by alon the question of wiether Ca-

ful attempis to stop a Justice lempt to suppress it [the in scond source — was the fact! puio lied shen he told a grand

Department insestigation of;vestigation]."

that the fil immerliately con-ljury he had not admitted to

,an

allegation that

all

FBI

The FBI.

the former prose-fronted Stabile with the hribeliBt agents that he paid oft

agent had been

bribed by a,cutors said,

is a

fact-finding, allesation delore

attempting dew York city policemen.

member of. the Malia, accord espress

azency that normally dues notito

gather cridence

against

Reached at his Hawies, Pa.,

ling to an informed source.

opinions on whether:lim.

country homie Caputo.

71, said

The

charge

Nas

loreledian investization started by, in doing so, the source said. lof the charge he paid oif an

against New

York FBI agent, Justice should be continued.

Ithe FEl agent save the agent; FBl agent.

"I got nothing to

Joseph stabile by to tello!.

Another

former

jederall treatment it

would not

give do with this."

New York quents.

One said prosecutor said the FEl, onl others

suspected of criminall

Asked ii he is a member of

Stabile had admitted to himirare occasions, has expressedi behavior.

the mafia, Caputo said. "come

that he took the bribe.

; such an opinion based on man.

In acidition, the source said, lon. I have nice children. Ols

An investigation sas closed power consicierations. But FBl at that same time the FBI sio, kids

when it lurned up no evidence, intervention when it is a tar-flated its

isent

10

nice

Catholir

own procedures bruschools. They say you're with,

against Siabile.

But the lo. get of the investigation would failing to inform

the Justice this. with that."

agents who niade the accusa.

be "improper." the former Jus-: Depariment that it was con-

Many of the essential facts

tion told the Justice Departitice Departrent official said. ducting an investigation of the surrounding the bribe allega-.

ment's orgainized crime strike:

Sources

familiar

with the!bribe allegation.

Ition • including the identity of

force in Brooktyn that the FBubribe allezaiion attribuated;

An FBI spokesman said Kel-!the accused agent. Stablic .

investigalion

Deci

Kelley's netion

feclingiley cannot comment on the were rerealed in pre-trial les-

"corer-up," the source said.

long heid by FBI leaders that, bribe allegation because many limony talich last monti for

any hint of corruption would!of

sanic issues

be, Caputos

this triggered a Justice De irreparably damage the bu-fraised in a Brooklyn perjurs trial.

pending

perjury

partmeni investigation,

its continuing, the sourec said.

reau's

image and cifective-trial scheduled to begin april,

.ag

Desnile the origin

of the ress.

11.

•Justice Department investigal

Although Kelley's attempts

The trial. to be held in u.s.

tion,

the source said, Keley were unsuccessful, the Justice: district Cour:, is of Join Ca.

•asked

high-ranking

depart- investigation had bean hans-ipulo, who is identified by the

meni officials in 1973 to cail:

the Brooklyn prosccutors off!

the case on the grounds

the l

FBI had found no violations of

In addition, the source said,

"Kelles

complained

that

the

Justice investigation was hurt.

ing FBI morale.

During the chsuing disputc.!

"he said.

Henry

F.

Petci'sen.

then chiel of the Criminal Di-,

sision ol Justice, intormed thic

Brooklyn prosecutors ot Kcl

les's attempls and lull Keliey.

the investigation would con-

tinue.

another source said Pcier.

son later cited the Xew York

Incident to show tie necil fur

an

inspector

general

wishin

the Justice Department iu 1u-

lice the FBI.

Petersen, who has since ler!

the Justire

Departmont, don-

firmed

recently that kelley?

wanted the indication slope!

ped but could met recal less

he had made his vicu. thomn.

Peterson said he would noth

disputo that st was in the do:m

of a recrue-l.

"There

nas a difference of

, opisiori, and

ultimately pines

sion bretanod. and the Fill o.

quirsel in that aginion,"

NW 68262 Docld:32989576 Page 33

---

## Page 34

x.!

62-116395

1 - Mr. J. B. Adams

1 - Mr. T. J. Jenkins

1 - Mr. W. V. Cleveland, •.+

2- Mr. J. A. Mintz

(1 - Mr. J. B. Hotis)

1 - Mr. H. N. Bassett

1 - Mr. E. W. Walsh

January 26, 1976

I - Mr. W. R. Wannall

I - Mr. W. O. Cregar

1 - Mr. S. F. Phillips

1 - Mr. R. J. McCarthy

1 - Mr. W. P. Baker

U. S. SENATE SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES (SSC)

RE: ALLEGATION NUMBER FOUR

Reference is made to SSC letter dated January 8, 1976,

asking for FBI responses to eight questions concerning each of five

allegations of FBI misconduet and abuse. In modification of the SSC

letter, Mr. John T. Elliff, SSC Domestie Intelligence Tasks Force

Director, advised Mr. W. O. Cregar of this Bureau on January 12,

1976, that the purpose of this inquiry is to learn what information is

provided to the Attorney General consistent with his oversight

responsibilities once an allegation surfaces in the media.

The following response concerns Allegation Four, which reads:

"The March 29, 1975, edition of 'The Washington Post' reported

allegations that an FBI Agent had been 'bribed' by a member

of the Mafia. "

The response below is in the order and by numerical designa-

tion corresponding to the questions raised.

world

Dep. AD Inv. allegation?

Ext. Affairs ORIGINAL AND ONE COPY TO AG.

Files & Com.

Gen. Inv..

Ident.

Inspection -

Intell.

WPB:rar;bvm

Laboratory

Plan. toEval, (15)

This document is prepared in response to

Spec. Inv.

nation outside your Committee.

Training -

your committee and the content may not be disclosed to unauthorized person-

Legal Coun

nel uithout the express approval of the FBI.

Telephone Rm. -

Director Sec'y -

MAIL ROOM L

NW 68262 Docld:32989576 Page 34

GPO: 1975 0 - 569-920

---

## Page 35

:

U. S. Senate Select Committee to

Study Governmental Operations With

Respect to Intelligence Activities (SSC)

FBI Headquarters was advised on February 10, 1973,

by the New York Office of the FBI.

2. Was an investigation or inspection conducted? If not,

was any other action taken?

Yes, a personnel matter investigation was instituted on

February 8, 1973.

3. How was the decision made to conduct (or not to conduct)

an inspection or investigation, or to take (or not to take) other action?

It has always been the operating procedure of the FBI to

immediately institute appropriate inquiry into any allegation made

concerning FBI personnel.

4. Which Division or operating level (headquarters or field)

conducted the inspection or investigation?

The New York office of the FBI and the FBI Headquarters"

Inspection Division conducted the investigation.

5. How was the decision made as to which Division or

operating level was to conduct the inspection or investigation?

Upon the recommendation of the Assistant Director in Charge

of the New York office of the FBI, that office conducted an in depth

investigation into the allegation. In August, 1973, after receipt of

information which added a new dimension to the matter, the Director

of the FBI instructed that the Inspection Division conduct all additional

inquiry.

- 2 -

NW 68262 Docld:32989576 Page 35

---

## Page 36

U. 9. Senate Select Committee to

Study Governmental Operations With

Respect to Intelligence Activities (SSC)

G. Was the original allegation reported to the Attorney General

or any other Department of Justice official?

Yes, by letter to the Deputy Attorney General dated June 19,

1073, captioned "John Caputo - Results of Inquiry Concerning Alleged

Bribery of FBI Agent in Anti-Racketeering Matter'' and by letter to

the Attorney General, with a copy to the Deputy Attorney General, dated

July 25, 1973, bearing the same caption.

7. Were the results of the inspection or investigation reported

to the Attorney General or any other Department of Justice official?

Yes, a report dated July 25, 1913, cantioned "John Caputo;

Eugene Statile; Bribery, " was furnished to the Organized Crime and

Racketeering Section of the Department of Justice on September 12g

1973. A report in the matter captioned "John A. Caputo, It Al.,

Eribery, Perjury, " dated May 23, 1975, was furnished to the

Attorney General by letter dated June 4, 1975. Being delivered with

this memorandum is a copy of that report together with a copy of the

June 4, 1975, letter to the Attorney General.

8. Was prosecution or administrative action (e.g., suspension

or dismissal) considered or taken?

No prosecutive action was taken against FBI personnel inasmuch

as no information was developed which would in any way corrokorate

the allegation. It should be noted that John Caputo is currently awaiting

trial in United States District Court, Lastern District of New York, on

perjury charges relating to the bribery allegations.

Although the extensive investigation did not establish any evidence

of dishonesty on the part of FBI personnel in connection with the allegation,

it was determined that three Agents had been derelict with respect to

longstanding administrative policies of the FBI. As a result, two of the

Agents were censured and transferred and the third Agent was censured,

placed on probation, transferred, and suspended for five days without pay.

1 - The Attorney General

-3-

NW 68262 Docld:32989576 Page 36

---

## Page 37

U. S. Senate Select Committee to

Study Governmental Operations with

Respect to Intelligence Activities (SSC)

NOTE: A copy of referenced letter is attached to yellow of instant

etterhead memorandum. Material being supplied to the ssc to lo

elivered with this letterhead memorandum by Legal Counsel Division

A set of such material is being retained by the Senstudy 75 Project.

=4-

NW 68262 Docld:32989576 Page 37

---

## Page 38

"РУАТ CHÚNCH, ІОНО -ФУТУЙЯ"У

104PELA TOMITTE TEXAS. VICHERIAITMAN

FISLIN SINIST. IEMM.

HORNIE BATER, DA TErts.

1A17897-AS IT.

ЕНЛАЇКУРСЕ. МАТИВАВ, ІК.,НУ.

RICHANENE-NCTHLIKRA.PA

End't H1-, 2005.

MILLANG. HILLIP, STREMENTERTEM

Afnited States Seria:

SELECT COMMITTEE TO

•ETUDY GOVERNMENTAL OPERATIONS WITH

FLESPECT TO INTELLIGENCE ACTIVITIES"

(FUMBIA, TO 3--NES. 11, J1TH CONCRESS)

WASHINGTON, D.G., 20510

January 8, 1976

Michael E. Shaheen, JI., Esq:

Special Counsel for Intelligence Coordination

Office of the Deputy Attorney General

UJ. S. Department of Justice

washington, D.C. 20530

Dear Mike:

One of the subjects which the Committee will be address-

ing in preparing its legislative recommendations involves

the adequacy of the FBI's

inspection procedures for handling

allegations of misconduct and abuse.

In this regard we are

forwarding herewith a list of several such allegations which

have been made during the past few years and concerning each

of which we would appreciate your supplying us with

• the

following information:

1.

How did FBI Headquarters First becoze aware of.

the allegation?

2.

Was an investigation or inspection conducted?

If not, was any other action taken?

3.

How was the decision made to conduct (or not to

conduct) an inspection or investigation, or to take

for not to take) other action? •

4 .

Rhich Division, or operating level (headquarters

or field), conducted the inspection or investigation?

5..

How was the decision made as. to which Division or

operating. level was to conduct the inspection or

Investigation?

6.

Was the original allegation reported to the Attorney

General or any other Department of Justice official?

PEceiveD

8

NWV 68262

B-Page 38

---

## Page 39

Michael E. Shabeen,

Page 2

January 8, 1976

7.

8

Were the results of the inspection or investi-

gation reported to the Attorney General of any

other Department of Justice official?

Was prosecution or administrative action (e.g..

suspension or dismissal) considered or taken?

If any of the allegations on the attached list.

were made today, would they be handled by the

newly-created office of Professional Responsibility?

In what manner would they be handled? If an investi-

gation were deemed warranted, which agency's personnel

would do the investigating.

In this regard, please

also advise concerning which agency's personnel will.

be investigating recently-reported allegations that.

agents of the FBI "attempted to coerce" a House

Select Committee on Intelligence witness "into

repudiating his testimony before the

select panel."

Answers to questions 1 - 7 should be accompanied by full

back-up documentation, including memoranda, inspection or

investigative reports, 302's, personnel reports, and communi-

cations to and from the field.

-

Your continued cooperation is appreciated.

Yours very truly,

John T. Elliff

Director

Domestic Intelligence Task Force

NW 68262 Docld:32989576 Page 39

---

## Page 40

LIST OF ALLEGATIONS

The March 20, 1975 edition of the New York Times

reported that "the Federal Bureau of Investigation has

carried out kidnappings of a number of persons in the United

States that it believed to be clandestine agents of foreign

intelligence services, according to two former FBI agents.

2.

The August ll, 1975 issue of Time Magazine reported

the discovery of "Bureau manuals, documents and reports" in

the apartment of a KGB. "operative" who was described as the

:mistress" of an FBI agent.

3.

The August 11, 1975 issue of Time Magazine also

reported that in 1961 a Bureau agent was "suspected of giving

FBI reports to the Soviets.".

The March 29, 1975 edition of the Washington Post

reported allegations that an FBI agent had been "bribed by

a member of the Mafia."

5. A recent edition of Time Magazine reported that

"sensitive" FBI documents. "were

carried off in an FBi truck

to West Virginia's Blue Mountain Ridge Cluo, a Shenandoan

Mountain Hideaway used by innermost FBI Officials for regular

poker games with CIA and other cronies. The papers were

burned inthe Club's large fireplace."

NW 68262_Docid:32989576_Page 40

---

## Page 41

"The man dh" cop its wordi

the former agert said, and ap.

peared at an appointed meeting

Several lawyers; iscluding

with

F.B.I.

expresentatives of the Ameri.

agent & week, later.

intelligence

CAn

Civil

Liberties

Union,

But the former

agent

ac.

pointed out that an alien ille

sally

in this country

Is by

knowledged that the technique

Law afforded many of the same

contaired a critical faw: The

F.B.I. had no way of knowing

¡guaranices of due process as

Amcrican citizens.

whether the man, or others

like him, reporled their expe-

= The bureau's only legal alter-

riences to their own govern-

natives in such cases, one law-

ment, and thus becanie triple

WEre

to lur such

Indi said pere to sue imm

gration and Naruralization ser-

Playing for Keeps"

vice for d deportation

hearing

• Trio use di kidnapping, one

op to charge them with illegal

of the former agents emple.

entry or espionage.

sized, "was a tough game, That

To have held such an individ Iwas

when you're playing for

ual incommunicado for more'keeps," he said.

than a day, the lawyer added,

He said that, to his knowl-

would have violated his rights

edge,

it: sas never

employed

fonnally arrested

and

lagainst

the domestic

lert

MW 66262

-Docld:32989576 Page 41

3/20175

i My Fain

2 Former Agents Say

By JOHN M. CREWDSON

charged with s crime, to hadeas

¡corpus and lo the assistance

WASHINGTON, March 19-10i counsel, among orners.

"the-Federal Bureau of investi-l

Kicnapping, the jormor agent

¿Ration has carried

out kid-isaid. was

last

Tesort use?

nappings.

of a

number

of when

alternative

means

persons in the United States could be quickly found to inter

that it believed to be clandes-:

i rogate a suspected

stoversive.

tine. agents oi

foresen

intel-tor to "turn"

him into a doucia

ligence services; according toragent willing to renari so

two former F.B.I. agents with ?.3.1.

on the actvities

his

i. direct knowledge of such oper Own intelligence service.

ations.

he said.

"the

237*

One

of the former agentsiot thing that's never done ligni

"placed the number of such kid-ly."

nappings over the years at Both men denied that physi

"fewer than 10" and said that, 'cal torture was ever empioyed

as far as he knew, the tech-lin such cases,

althouen cra

• nique had not been employed said that, when a suspect nas

by the bureau since the mid- been located,

"You'd pick hir

Jup and take him

1 He said that lis use had and work him over ,somewhers

been pocasioned by such coldi

The victims were often threst

twar incidents. as lhe Cubanlened with deali as punishmen.

missile

crisis

"when

thines for noncoogeration, he edded..

"wers pretty rough." and thatialthough neither olficial

Jia was -"certain

that inis isicalled

any insiarte in hion.

To longer going on."

la hostage had been mundered.

A spokesman for the bureau? Ore or the former agents.

said only that the bureau wouid maintained, however, that men-:

¡adopt "s no-comment posture": tal duress was an mearianti

ewith respect to the kidnapping, part of such intermariors, ano:

allegations.

the described one case in satan!

!

-- A Pritera In Targets

& person was

seized

20.0

detained in

F.8.1.

"sat's

- Both of the agents said that, lhouse" for "several weeks."

with one possible exception;!

*The targets. selected by the

Absence Not Noticed

F.B.1. for kidnapping were sus-!

Because the man sas not

pected intellizence operauvesionerating under diplomatic cora

from Communist countries who'er, as many foreign espionaze

had entered the United Stateslagents do. and was no: ocher-

Ellegally with forged American wise an official personage: his

passports and other identity extended absence went publici

documents.

" The use of the kidnapping' said.

unnoticed, the former agent

tachnique was also confirmed.

The spy, he said. knew his

elthough not in detail, hy two capiors only as

"E.S.

intel-

other former F.B.I. swronts..

¡lizence agents," at lease mere!

"In- separato Interviews, theidi whom was with him con-y

two former sgents

who de-istantly.

serloed the alleged kidnappings!

"Someone slept in the samei

left open the possibility

thatl bed with him.

erred in kidnapping a person:he said.

Who proved not to be a

deep-

After weeks of intense inter-

spy

but a legitimatel rogation the man broke andr

American citizen.

agreed to becaine a douse

One of the agents conceded. lageni and was sold, in the,

however, that in every caceiformer agent's words:

cha practice was "completelvi

"You are a fire mani Do!

arong-complelely in violationivou know what that means?

ol civil liberties. No question, ll you leave here and do ti

about it." he adied.

keep your promises we wil:

*But he said, "In the business) do nothing further do YOU. Sit!

of Intelligence, you're lacediyou have made a corrim.imme.

with the concept of expediency, and wo will sane you af your r

That oftentimes leads you ino sard"

extra legal acutties."

---

## Page 42

THE NEVY YORE XIEFS, THURSDAY MARCH SO. 9023

F.B.I. Has Kidnapped Suspected Foreign Spies in U.S

spanized trimo ligurs, but whes do ties a emall child

After receiving authurization loperated e formalized "kidnap-lever made in willing and that

tas reserved lor optratives ofland das now socking to doc- directly from 1. Edzar iloover, Iping aquid," at one time therelconsequenily no record ol

she Soilot. K.G.D., Or escretlumen he rave lis that ot

Ithe loto F.B.I. directer, a spre-

h= tave

police,

or riprescratives of fores dato du county.

Icially picked lenn of agents

would cate caterish within the biker's tiles.

and would"

Knowledye of the kainappirg

Whor

saizad tha ruspect and arshad

Illegal high risk operationis suchioperaticas

ocher sovkit-blos intelligenor bancore

tho recool:

As burglariüs and kidnappings.

lúro to a secluded "sale house"

clusaly held,"

he said, king

servicea

Iclerk and oihers there rancin-

- But by the mid-ninetour sit-lindes

ar. Moorer,

ana recanique mas partice ibered had sufford a punisent

of the buread for bitcaucation, lics,

these nun hedipersontlly

•denly uselal he explairoo, anon|pelvie injury 2s a youth.

the two sources suid.

Mr. | thera; a handlul of top ofticials,

the 1B.l leased that it wail. The Inquling muan appeared

One of the former agalloover would no longer back

aid the agents 1a

vilio carried them case.

peeled ficot posite as palue tornoperple.

"Nobody will adralt a dana

lanierican citizin.

desaily: your man office of the r.n.l.

busincis," coull seither pro-lwhich har. Hocvor tres unwil- that

¡and follow hun to develop whoi. "Thank

he was contacting hois," the

ball one of

vided suacific decalis ot

thieling to give

carrias rio atallite of linila

cideal to which like dint was

"but you lerent was on

TO DI-02310 NeCCI

Lions.

the sources said,

"and went over

subjected:.

the riske of losing and checked

Loti sourcea descravo

the

"You'd call a guy up

The lairyers interversed In

and connettion with tha

operation as a success but de-

ask him to do ocrothing,

"Uit, of

these

legalit

decidions

Oss insunce in silich tast

clined to elstrate on its. pre-

sowce socalled.

"and he'd re lhowever, that fedial aid taio

'concura played

Ro said, pilaced cise disposition or the subject'simind you that he hed tivo kidnapping statutes had proba

pitt met curatind by tie twoithe mysterious stranger undericiesert whereatouts.

kids In college and lie could

violated by

Icsn:0r r..c.215,

¡surveillance and eventually be bac of the funner, escts ece les rottanent done the dens who since out lie!

they recalled! a ensn

In the eudy riscen-sixties. cumo convinced that he was mintaied, torever, wile/re

abductions,

sinco no ranius.

walled a Soviet intelligeice agent whojor die auspacred

•Mis work wes excedingly was extracted.

¡unally inco che scover's arhad penciralad ta, Unitediegonto Involved in these opera-jdangerous," tre accora foirner

due in. a pure! Middla

Wer statea illegally.

uony had ever dial as a direct F.B.I.

trion said.

"You exuld,

"Cho best literais

¡af the country

would sai'so

couray s0as neur the Caradian!

When the local F.B.I. agents resud of the bidnapping

•boxier and asked for a copy bucame cuncemal that theylinterrogation or phila sscmpe-lcd."

spect woe, you could resenest seven the man decling r

the mran declined

would lose tho cuspsct,

the ipe to creape,

Tie firat sonner ageir can-idenuly either the F.B.1. agai

Jho fonter apart, eid shutifireat chase points, adding chat or the suspected subversives la

Talthruch tho

DUTCULI

never'no mention of kidnapping was volved in the kidnappingz

*N 48i

NW 68262 Docld:32989576 Page 42

---

## Page 43

Give

631

E Seduced by the kGB.

8.18.

• While concentiding its cfforts upon

the ClI, Sendini frank Churcis spe.

cial remiuce that is insestigang U.S.

intelligerce programs has ale been te-

cumulating dard on tie. ilt. Last seck

TiMs: learned diat the committed has

heard

sarling repris of mass-

deeds: Mical-ins and corer-ups, inchui-

ing the siaiy of an agent whose mis.

tress. 7s linked to the soriet k0.

The allair was discovered in 1965

when a cia soure in Moscow repared

tiat nos olivials kcre.jrbilunt.acout

• getting one of their operatives in ted

with an tu arent. To check out the Cla's

sopori, the Tr broke moo ine apartinent

of the roman, a middle-aged waitress.

and discacered bureau mianuals, dill-

ments and regrets. Some 1Bl collisinis

urged prosecution, but!. Logar flosser's

palace guard of deputies stopped the in-

quiry to avoid embarrassing the bureru

and is bois. The agchi was simply al

lowed lo resiga. The don also aricars

80 have penciraled tie thi in 19ol. in

this case, the agent superied of gisjis:

FIl reparis do ine sordeis le polerragi

test on him lias inconclusive) vas. fies

on a minor ichnicaliy.

The Church enmitee his aiso

turnco up cridence of a varicey of extra-

legal activites macticed by the fla. Tic

buncau is sairo have innintalai sae-

cial schools to train arents in the tuch-

niques ef thie "rag jo.

" a cupbemisin

for breaking and caicring. The gradu-

alci-lockpickers. burlars and a risi

safecrackers--managed lo sical some

code books from foreign embassies. for

this they riceived "incentive anards"

ranging froin 5250 10 S509.

The Senarors would like to know

more alain the privnie dies loser dort

on public oliciais and shat use lie made

ofthem. John dichr. a tormer till of-

ficial, has coil 1lit that ite had been

questioned the umes by ihe committee

about the

ver on scores of prople. Just shat lag.

poned 86 some el the lies ader 1les.

ver's death in 1972 is sulla mystery.

NW 68262-Docld:32989576-Page-43-

---

## Page 44

LEVI ASKS INQUIRY

IN ATTACK ON F.B.I.

WASHINGTON.

Jan.

torney General Ediard H: Leviv

las asked tie Justico Dopart-

ment's new, internal inspection

unit to investizate an assortion

Dy the House Select Committee.

on Intelligence that the Fcderal.

asureau

of

Investigation

at-,.

¡tempted to coerce a committee.

winess into repudiating ais tes-,,

Emony before the seleci panci..

A Justice Department spokes--

13351

said that Mr: Levl,

sponding to a request for intor-

mation about the incident from

A Searle Field, the committer's

staff director, had assigned tho

matter for investization io the

department's newly created Of-

fice of Profesional Responsibil-

In a letter to Mr.. Levi last.

wreck, Mr. Field

reported tiat

the witness, riartin

L. Kaiser,

had disavoier! part of his com-

mittee

hour

testimony after a six-

interrogation by

agents:

F.3.i.

Mr. Kaiser heads a Maryland

company that makes cicctronic

easesdropping equigment

for

the F.B.li and other Federal

lave enforcement agencies.

His

testimony before

the -

House Committee in October

raised the possibility that some

8 F.B.I. agents had received kick-

¿backs when anotier ciectronics,

"company sold to the F.B.I. mate-

•rial it hail acquired from Mr.

• Kaiser's concern.

NW 68262 Docld:32989576_ Page-44

---

## Page 45

Full.

Justir Dept. Tools Into Havear Bribe Inspetigation

FBI Bid to Kill Probe Charged

By Ronald Kessler

The informed.source snidipered by the WDl's handling ofFSI as a member of the Luchese

R'agington Polt Sialt Sriter

Kelley's requests, which spreithis case beiore kelles becanie; New York Malia famils.

Shortis after he became di-i known to only a few FBI and director in

July, 1073, ouc Capuro is alleged to hase

rector of the FBI, Clarared de. department afieials arses a5-

source said.

bribed Stabile:

Chief among these problems) . The trial,

•Relicy twice made unsuccess-.tu

"pressure"

however.

renters

= which were contirmed by alon the question of uherner Ca-

ful attempts to stop a Justice tempt to suipress it Ithe in second source - was the dact! guin lied when he told a cand

•Department investigation ofjrestigation]."

that the FBi immediately zon-l jury he had not admitied to

en aliciation that an FBI:

The FBl. the former prose-fronted Stabile with the hribe FBi agents that lie paid off

agent had

been bribed-by a, cutors said, is a

fact-findingi allegation before

attempting New York city policemen.

imember of the Malia, accord- azency that normally does norto gather evidence against

ling to an informed sourec.

Reached at his liasies, P3.:

express opinions on whether kim.

The • charge

S'ES

leveied, all

investization

Icountry home Caputo. 71, said

started. byl

In doing so, the source said. lof the charse he paid oit on

against dew York FBI agent Justice snould be continued.

Joseph. Stabile on exo fellow.

•illother

former

Ithe FBI arent gave the agent: F3l agent.

"I got nothing to

jederall treatment it would

not give do with this."

New York agents.

One said proscoutor said the rEl, on'others

suspected of criminall

Asked it ic is a member of

Stabile had admitted to him rare occasions, has expressedi benavior.

¡ the mafia, Capuro said, "come

that he took the bribe

sucit an opinion baged on man-!

In ardition. the source said, on. I have nice chiidren. sis

dn investigation was closed power considerations. But FBl'at that same dime the FBI via, kids sent to nice Catholic

when it turned up no esidence interrention when it is a tar lated lis osm procedures brischools. They say you're sitia

against Siabile. But the tiro

ser oi the investigation wouid failing to inform the Justicopthis. with that."

agents who made the accusa-

be "improper." the former Jus-: Department that it was con-l

Many nã the essential facts

tion told the Justice Depart. ice Depariment olficial said. ductina an investigation of the surrounding the bribe allesa

reat's orgainized crime siikc

Sources

familiar

with tie bribe allegation.

¡tion - including lie ironti:: of

force in Brooklsn that the FBL. bribe allegaiton attribuated:

An FBI spoliceman said Ecl-lle accused ageri.

seablis

Keller's action

investigation

had

fecling, loy cannot comment on the;were reveaied in pre-crial 1es-

"corer-up," the source said.

been a long held by FBI leaders that bribe alleration because many timons taken last month fer

This triggered a Justice De. any hint of corruption wouldlor the same issues will be Caputos

pending

perjury.

partnient investigation, which

irreparably damage

the hu raised in

a Brooklyn perjurs trial..

Is continuing, the soure said, rean's image and cifectise itrial scheduice to begin April

Desnite the

origin

of the Fess.

Justice Department insestiga-.

Although Kelley's attempts

The trial, to be hold in u.s.

more unsuccesstul, the Justice: district Cour:.

and sun fred, dear Investigation had bean any uto, rio is identified by the

ment officials in 1913 to catl:

the Brookisn prosecutors off!

• the case on the grounds thei

FBI had found no violations of

• A3V.

in addition,

the source said,

•Kelley complaince

tha!

tite

Justice investigation was hurt-

ing FBI morale.

During the ensuing disputc.

he said, Henry F.

Petersen.

then chict uf the Criminal Di-,

sision of Justice, intormuri lic

Brooklyn poscrutors ot Kel-

ley's allompls and luid Kolley.

the investigation would con-

tinuc.

Another source said Polet.

sen lales cited the dew Trok

incident to shas tire need fui

&n

inspcetor

scheral

within

the Justice Department lu pl

lise the FBt.

Petersen, who has since left!

the Justice Department. cun.

firmed recently

that

Kolles.

Fanted the intertitatial stup-!

no had made his rious knusn.

Paleroon said

he solid noti

dispute that it was in the doem

of a reques.

"There was a difference of

opinius, and

allerately

Opi то тe 61134 1911-1

sion orcland. aud the in ax.

twices ill that agitiver,"

NW 68262 Docld:32989576 Page 45

---

## Page 46

62-116395

January 26, 1976

wer arquest and is not for dissemi

sjicial proceedings by

unauthorized persor

be disclosed to

FBI .

This document is prepored in respones lo

• may not

thre

Cocaii

nation outs, v01

your Committse ail thes contes

express approval of

act without the

U. S. SENATE SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES (SSC)

RE: ALLEGATION NUMBER 5

Reference is made to SSC letter dated January 8, 1976, asking

for FBI responses to eight questions concerning each of five allegations

of FBI misconduct and abuse. In modification of the SSC letter, Mr. John

T. Elliff, SSC Domestic Intelligence Task Force Director, advised Mr.

W. O. Cregar of this Bureau on January 12, 1976, that the purpose of

this inquiry is to learn what information is provided to the Attorney General

consistent with his oversight responsibilities once an allegation surfaces

in the media.

The following response concerns Allegation Number 5 which reads:

A recent edition of Time Magazine reported that "sensitive"

FBI documents "were carried off in an FBI truck to West

Virginia's Blue Mountain Ridge Club, a Shenandoah Mountain

Hideaway used by innermost FBI officials for regular poker

games with CIA and other cronies. The papers were burned

in the Club's large fireplace."

The response below is in the order and by numerical designation

corresponding to the questions raised.

Assoc. Dir. -

or go aw

wot

Dep. AD Adm. -

Dep. AD Inv. -

1. How did FBI Headguarters first become aware of the allegation?

Asst. Dir.:

Admin.

Time Magazine dated December 15, 1975, on pages 10, 11 and 12,

Comp. Syst contained an article captioned "Hoover's Political Spying for Presidents."

Files & Com. Within this article, and specifically on page 11, column 3, paragraph 2, the

Gen. Inv. article states:

1 - Mr. H. N. Bassett

Inspection -

1 - Mr. Adams

1 - Mr. Walsh

Intell.

Laboratory

1 - Mr. Jenkins

1 - Mr. Wannall

Plan. & Eval. -

2 - Mr. Mintz

1 - Mr. W. O. Cregar

Spec. Inv. -

Training -

(1 - Mr. J. B. Hotis)

1 - Mr. S. F. Phillips

Legal Coun. -

Telephone Rm. -

JAC:jmh (13)

ORIGINAL AND ONE COPY TO AG.

Director Sec'y -

MAIL ROOM L

TELETYPE UNIT

See Note Page 3.

GPO: 1975 0 - 569-920

NW 68262 Docld:32989576 Page 46

---

## Page 47

U. S. Senate Select Committee to

Study Governmental Operations with

Respect to Intelligence Activities (SSC)

"Before Secretary Gandy could look at them in hoover's

house, the most sensitive papers were carried off in an FBI

truck to West Virginia's Blue fidge Club, a Shenandoah Mountain

hideaway used by innermost FBI officials for regular poker games

with CIA and other cronies. There the papers were burned in

the club's large fireplace. Precisely who ordered this destruc-

tion and carried it out has not been disclosed. The three-story

clubs, valued at up to $200, 000, burned to the ground in a fire

of undetermined cause on Nov. 23. No evidence of arson has

been discovered. "

2, Was an investigation or inspection conducted? If not, was

any other action taisen?

An investigation was conducted on December 16 and 17, 1975.

3. Eow was the decision made to conduct (or not to conduct)

an inspection or investigation, or to take (or not to take) other action?

Based on an inquiry concucted by the Inspection Division in January,

1975, inquiring into the "Official and Confidential" files of former Directos

J. Edgar Hoover and subsequent inquiries made by the Inspection Division

concerning these papers, this Time Magazine article set forth an allegation

which had not previously come to the attention of the FBI. Accordingly,

inquiry was made concerning this allegation in order to advise both the

Director of the FBI and the Attorney General as to whether there was any

validity to the allegation.

g. Which Division or operating level (Readquarters or fiekd)

conducted the inspection or investigation?

The Inspection Division, FBI Headquarters-

5. How was the decision made as to which Division or operating

level was to conduct the inspection or investigation?

An article appeared in the January 19, 1975, issue of The Washington

Fost which in part stated the FBI "during J. Edgar Hoover's reign" compiled

files containing information on the personal lives of senators and congressmen.

- 2 -

NW 68262 Docld:32989576 Page 47

---

## Page 48

U. S. Senate Select Committee to

Study Governmental Operations with

Respect to Intelligence Activities (SSC)

On January 21, 1975, FBI Director Kelley instructed the Inspection Division

to conduct inquiry concerning the "Official and Confidential" files of Nir.

Loover. The results of that inquiry were submitted to the Attorney General

by memorandum dated February 11, 1975.

The allegation set forth in the Time Magazine article dated

December 15, 1975, and the reference to "sensitive papers" being taken

from Mir. Hoover's house appeared to be alluding to Mir. Hoover's "Official

and Confidential' files. The Inspection Division, having previously been

charged with responsibility of conducting inquiry concerning these particular

files, initiated action on its own to resolve this latest allegation.

6. Was the original allegation reported to the Attorney General

or any other Department of Justice official?

Yes, by letter to the Attorney General dated December 24, 1975.

Delivered with this memorandura is the back-up documentation.

7. Were the resuits of the inspection or investigation reported

to the Attorney General or any other Department of Justice official?

Yes. Eee response to question number 0 above.

8. Was prosecution or administrative action (e.E., suspension

or dismissal) considered or taken?

The inquiry failed to develop evidence in support of the allegation

concerning the alleged transportation and destruction of "sensitive papers."

Accordingly, no further action was warranted.

NOTE: A copy of referenced letter is attached to yellow of instant LHM.

Material being supplied to the SSC will be delivered with this LHM by Legal

Counsel Division. A set of such material is being retained by the Senstudy

75 Project.

-3 =

NW 68262 Docld:32989576 Page 48

---

## Page 49

PRANK CHURCH, IDAHO, CHAIRMAN

* JOHN E: TOWER, TEXAS, VICE CHAIRMAN

WIIP A, HA'Ar, MICH.

HOWARD H, BAKER, SP., TEN.

ALTER F, MONIALE, MINT.

JAHRY GOLDWATER, ARIZ.

WALTER QUODLESTON, KY.

CHAMLES MCG. MATHIAS.JR,MD.

OBERT MORGAN, NiX.

RICHARD A. SCHWEIKER, PA.

WILLIAM G. MILLEN, STAFF DIMECTER

PREDERICK A. D. SCHWAHI, JA., CHIEF COUNSEL

CURTIS R. SMOTHERS, MINORITY COUNSEL

WInited States Seriate

SELECT COMMITTEE TO

STUDY GOVERNMENTAL OPERATIONS WITH

RESPECT TO INTELLIGENCE ACTIVITIES

(TUNSUNT TO S. RES. 21, 16TH CONGRESS)

WASHINGTON. D.C.. 20510

January 8, 1976

Michael E. Shaneen, JI, Esq.

Special Counsel for Intelligence Coordination

Office of the Deputy Attorney General

U. S. Department of Justice

Washington, D.C. 20530

Dear Mike:

One of the subjects which the Committee will be address-

ing in preparing its legislative recommendations involves

the adequacy of the FBI's inspection procedures for handling

allegations of misconduct and abuse.

In this regard we are

forwarding herewith a list of several such allegations which

have been made during the past few years and concerning each

of which we would appreciate your supplying us with the

following information:

1. How did FBI Headquarters first become aware of

the allegation?

2. Was an investigation or inspection conducted?

If not, was any other action taken?

3. How was the decision made to conduct lor not to

conduct) an inspection or investigation, or to take

lor not

, to take) other action?

4.

Which Division, or operating level (headquarters

or field), conducted the inspection or investigation?

5. .

How was the decision made as to which Division or

operating level was to conduct the inspection or

investigation?

6:

Was the original allegation reported to the Attorney

General or any other Department of Justice official?

19%6

NW 60262

89526 Page 49

---

## Page 50

Michael E. Shaheen! JI:

Page 2

January 8, 1976

7.

Were 'the results of the inspection or investi-

gation reported to the Attorney General or any

other Department of Justice official?

8. Was prosecution or administrative action (e.g.,.

suspension or dismissal) considered or taken?

9.

If any of the allegations on the attached list

were made today, would they be handled by the

newly-created office of Professional Responsibility?

In what manner would they be handled? If an investi-

gation were deemed warranted, which agency's personnel

would do the investigating. In this regard, please

also advise concerning which agency's personnel will

be investigating recently-reported allegations that

agents of the FBI "attempted to coerce" a House

Select Committee on Intelligence witness "into

repudiating his testimony before the

select panel."

Answers to questions 1 - 7 should be accompanied by full

back-up documentation, including memoranda, inspection or

investigative reports, 302's, personnel reports, and communi-

cations to and from the field.

Your continued cooperation is appreciated.

Yours very truly,

John T. Elliff

Director

Domestic Intelligence Task Force

NW 68262 Docld:32989576 Page 50

---

## Page 51

LIST OF ALLEGATIONS

1.

The March 20, 1975 edition of the New York Times

5

reported that "the Federal Bureau of Investigation has

carried out kidnappings of a number of persons in the United

States that it believed to be clandestine agents of foreign

intelligence services, according to two former FBI agents."

3+5

2. The August 11, 1975 issue of Time Magazine reported

the discovery of "Bureau manuals,

documents and reports" in

the apartment of a KGB "operative" who was described as the

"mistress" of an FBI agent.

Jack Freenion?

3 +5

3.

The August 11, 1975 issue of Time Magazine also

Receports to the so a bureau are as "suspected of giving

FBI reports to the soviets.

3,9+10

4

The March 29, 1975 edition of the Washington Post

reported allegations that an FBI agent had been "bribed by

a member of the Mafia."

Capute case

10

5. A

recent edition of Time Magazine reported that

"sensitive" FBI documents. "were carried off in an FBI truck

to West Virginia's Blue Mountain Ridge Club, a Shenandoah

Mountain Hideaway used by innermost FBI officials for regular

poker games with CIA and other cronies. The papers were

burned inthe Club's large fireplace."

4-07.

_ NW 68262 Docld:32989576_Page 51_

---

## Page 52

LEVI ASKS INQUIRY

: IN ATTACK ON F.B.I.

Ssecial to The Fire. York Tires

WASHINGTON,

Jan. 6-At-

toracy General Edward.H. Levi.

has asked the Justice Depart-

ment's new internal inspection

unit to investigate an assertion

by the House Select Committes,

on Intelligence that the Federal-

¡Bureau

of

Investigation

at-..

tempted to coerce a committee-

witness into repudiating his tes-

timony before the select panel.

A Justice Department spokes-

man said that Mr.

Levi,

го-..,

sponding to a request for infor-

mation about the incident from

A. Searle Ficld, the committed's

staff director, had assigned tho.

matter for investization to the

department's newly created Of-

fice of Profesional Responsibil-

ity.

In a letter to Mr.. Levi last.

week, Mr. Field reported that

the witness, Martin L. Kaiser,

had disavowed part of his com-

mittee testimony atter a six-

hour interrogation by F.B.I.

agents.

Mr. Kaiser heads a Maryland

company that makes ciectronic

eavesdropping

equipment

for

the F.B.I. and other

Federal

•law enforcement agencies.

his testimony.

before

: House Committee in October

• raised the possibility that some

i F.B.I. agents had received kick-

backs when another ciectronics.

company sold to the F.3.I. mate-

• rial it had acquired from Mr..

• Kaiser's concern.

NW 68262 Docld:32989576_Page-52-

---

## Page 53

"The man da" keep his word,

a, Allegad violations

the former agent said,. and ap.

lawyers,.

including

peared at an appointed mecting

with

stepresentatives of the Ameri-

ап f.B.I.

intelligence

can

Civil

Liberties

Union,

agent a week. later.

But the

former

agent ac-

pointed out that an alien ille-

gally

knowledged that the technique

in this country is

by

contained a critical flaw: Tho

"law afforded many of the same

F.B.I. had no way of knowing

iguaranices of due process

aS

Anterican citizens.

whether the man, or olhers

like him, reported their expe-

= The bureau's only legal alter-

riences to their own

govern-

natives in such cases, one law-

merl, and thus incume

triple

yer said,

were to lum such

individuals over to the lnini-

agents.

gration and Naturalization ser-

Playing for Keeps"

vice for a deportation hearing

The use of kidnapping, 'one

or to charge them with illegal

of the former agonts

emptia-

entry or espionage.

sized, "was a tough game, That

To have held such an individ- was when you're playing for

ual incommunicado for more'keeps," he said.

than a day, the lawyer added,

He said that, to his knowl-

would have violared his rights

edge, it was never employed

to bo formally arrested

andlagainst the

domestic left or

NW 68262 Docld:32989576 Page 53

3120175: 14 Tin

2 Former Agents Say

By J0HN M. CREWDSON

charged with a crime, to habeas.

¡corpus and to the

assistance

WASHINGTON, March 19-jof counsel, among others.

The Federal Bureau of Investi-i Kidnapping, the former agent.

¿gation has

carried out kid-said, was a last resort uses

•nappings.

of a

number

of When

по

alternative

means.

persons in the United Statesicould be quickly found to inter.:

that it believed to be clandes- rogate a suspected subversive.

-

tine agents

of foreign intel-jor to "turn" him into a double

ligence services, according toragent willing 10 report 10 the

Two former F.B.I. agents with! F.B.I. on the activities of

his:

i.direct knowledge of such oper-lown intelligence service.

ations.

it was, he said,

"the type

One of the former agentsiot thing that's never done lign:-

•placed the number of such kid-ily."

nappings over

the years at

Both men denied that physi-

"fewer than 10" and said that, cal torture was ever empioved

ads far as he knew, the tech-lin

such cases, although

one

nique had not been emploved said that, when a suspect had

by the bureau since the mid-been located, "You'd pick him

nineteen-sixties.

Jup and take him

somewhere

1 He said that its use had and work him over."

ibeen occasioned by such coldi The victims were often threat-!

war incidents as the Cuban ened with death as punishment.

missile crisis

"When things:for noncooperation, he added..

"were pretty rough," and thatlalthough neither

official no."

Tie was

"certain that this is called any instance in which:

To lospereian to the bureaul

is hostage had been murdered.:

One of the former agents:

isaid only that the bureau would maintained, however, that men-;

¿adopt "a no-comment posture" tal duress was an imenrianti

•with respect to the kidnappingipart of such interrogations. and:

allegations.

he described one case in winich!

- A Pattern in Targets

& person

and

detained

was seized salo

an F.B.1.

- Both of the agents said that, louse" for "several weeks."

with

one possible

exception,

*The targets

selected bu tire

Absence Not Noticed

F.B.I. for kidnapping were sus-!

Because the man was not

pected intelligence

operauves i operating under diplomatic cov.

from Communist countries who'er, as many foreign espionaze

had entered the United Statesiagents do, and was not other-

#legally with forged American wise an official personage: his

passports and other identity extended absence went publicly

documents.

unnoticed, the former

• The

use of the kidnapping'said.

agent

technique was also confirmed.

though not in detail, hy two captors only as

other former F.B.I. sents.

inte!-

!ligence agents," at

fraist me!

"In separale interiews, thejor whom was with him con-!

two former agents

who de-istantly.

scribed the alleged kidnappings)

"Someone slept in the same!

left open the possibility thatibed with him. We even went!

"th one instance the bureau had with him to the bathroom,"!

erred in kidnapping a person: he said.

sino proved not to be a deep-!

After weeks of intense inter.

cover spy

but & legitimate, rogation the man broke andr

American citizen.

agreed to become

double:

One of the agents conceded. lagent and was sold, in shei

however,

that in every case, former agent's words:

the practice was

"completely!

"You are & ince man. Do!

sTonz-completely in violatoniyou know what that means?;

of civil liberties. No question ll you leave here and do not:

about it," he adied.

¡keep your promises we wiit!

•"But he said, "In the business| do nothing further do you. Buti

of intelligence, you're faced, you have made a commiment.

That oftentimes leer you cy lando wil cake you si your

Shat oftentimes leuds you into | ward?

---

## Page 54

170.3

10:94 " 9

::48.

*

THE NEW YORK TIMES, THURSDAY, MARCH 20. 1975

F.B.I. Has Kidnapped Suspected Foreign Spies in U.S

arganized crime figures, buljwhes to k'as a anall child

Miter receiving euthutization loperaled e formalized "kidnap-lever made in ariting and that

mas reserved for cocratives olland was now scüking to doc-dircetly from J. Edgar Hoover, |pink squael," at ore cine there/consequenlly no record of li

Ahe Sovlet KGB, er secreclument his family his the be

lure luto F.B.I. director, a spe

mas a colorie of agents wholexios. within the bureau's files.

police, or ripresentatives orname he gave rus

"could and would" cirry outl

Icially picked teamn of agenty

Knowledge of the kidnappira

la fonzer rusidant of the county,

Illegal high-risk operations suchjoperators

olice sovlit-blos intelligeno|suncone whom' tha records

soilad tha sulpuct and rushed

very

as burglarics and kidnappings. closely held," he said, bird

services.

clerk erid Others there relicin-

him to a recluded "eate house"

_ But by the mid-ninetain-six-liries

to for. Hoover, tri:a

Tho techniquo mas particu-ibered had sufferil a perazient

of tie burica for Laterucation, ties, he sid, these men hedipersonally approved each

leaty useful, he explaired, whon|pelvic injury as a youth.

the two sources suid.

becairo convinced

Mr.| thera; a handlul of top officiais,

ithe F.B.I. lowed that it wasl The inquiring man appeared

One of the former andaliloover would no longer back!

aid the caents la the field

out to lase back di a sue to walk ourfectly, however, endldascribed the interrogation as them and they rofuszu to un- who carried them cat

, pailed agent posits as en the comaspecole.

thisir susp-a

"atern" cas,

and the other dentake such work without "pa-

/American citizen.

"You'd

destity

"Nobody will edralt a darisi

yout

cions pinued, notified the local added tirit "this was rougalper" or written autherizations. thing" he said, goalad ou

businees." though neither pro-which Mr. Hoover tras unwil. thet the crüne

land follow him 1o develop whol

•he was contacting hoie," the

•fortuer ageat said.

His gou open was on the on

resident

vided spocific daalls of choling to give,

carries 1i0 statuls of lianila-

one of

cideal to which the mean wes

Too DangErous to Accel

tions.

the sources said, "and went over

subjected..

always ran the risk of losing, and checked tho inauer out."

sodi snuces descroud the

"You'd call a guy un and

Tie leiryers interviewed in

lask him so do sornothing." the

I connettion

with

tia

these

legality

200 millon people.

operation as a success but de-

Oca insince in which theti

• Licied to Soviet

clined to elebaate on its one-

source recalled,

"and he's to-

operations

however, that Federal and Giste

'concern played an imparteni

The F.B.I., he caid, placed cise disposition or the subjectsimind you that ho had two

pert ra deceried by the fire she laterious eventury der see one outs.

kids li colluge and he could'

kidnapping statules had proba

In esty resees sixties. sume lane ed eventual best

One 'of the funner escorts

ece les rutirement down the ale to buo carlated by te

who carried out

abductions,

•they recallad, & anan

walked a Soviet intelligence agent whojof

Guispected

"Mis work tres eradingly was extracted.

sinco no ransusa

¡cusually into the recoiver's of-llad

five in a resul Middlo

Weet States illegally.

penetrated, the. Unitediegents Involved in these opera-¡dungercus," the accord foimer

Decausa "tha best Literests

tiony dad ever died as a direct F.B.l.

man caid.

"You

cruldias the country would not'to

courty sext neur ure Caradian!

When the local F.D.I. arents resut of the

bidrapping

•barúur and asked for a copy bucarme.

concomed that

they linterrogation, or while aempt-lcd."

er'st we, you could ser arrest- served by pursing decliny s

•Et his birth cortifieste.

would "lose the suspoct, the ing to crcape.

Tire first formor arcit cor-identify either the F.B.I. agenda

The man -explaines lo the source recounted, a decision.

Tho fonter aptat, esid thatifirmed there points, adding thatfor the suspected subversives ita

iderk thas he had left die reriod was mide "to hit hirs"

laltounh tho

buresu

never'no mention of kidnapping was volved in the kidnappinga

NW 68262 Docld: 32989576 Page 54

---

## Page 55

„M?) c.

4105014,19775

FBI

E Seduced by the KGB

8.18

While concentiating its effort upon

the ClA, Sonairi Frank Church's spe-

cial commitse that is investigaling U.S.

intelligeree programs has alid lech a6-

cumulating data on the l'Bl. Last reck

Timl learned liat the commilled has

heard some

starling reports of mis-

decos, brerk-ins and cover-ups, includ-

ing the siony of an agent whose mis-

1ess.9a5 lited to the soviet kon.

The alfir was discovered in 1953

when a cla soure in Moscow reparied

that ton oficials sere jubilant about

sotting. one of their operatives in lad

with an umarent. To check oui the Cin's

Ispori, die rel broke mo incapartinent

of the roman, a middle-aged waitress.

and discatered bureau manuals, dicu-

ments alid repots. Some 1Bl officials

urged prosecution. but?. Logar fleaver's

palace guard of deputies stopped the in-

quiry 10 avoid embarrassing the bureau

and iis bois. The agcnt was simply al-

lossed to resign. The NGh aisa aricars

10 hase pencirated the fBi in 1901. la

this case, the agent superted of givius

FIl reparis lo flie soviels la poleragli

test dia him sias inconclusive) was. fied

on a minor technicality.

• The Church crimmitee his also

turned lip circence dia mricly of extra-

legal activities practiced by the 1l. The

uncan is said to bave incintained sis-

cial schools to train agents in the lech-

niques of the "tag jos." a cupiemisin

for barcaking and caicring.

The gradu-

alci-lackpickers. verglais anó a ilo

safecrackers--manaled lo sical some

cade books from iccien embassies. lor

this they recrived "incentive anards"

ranging. fo: S250 lo Savo.

The Senators would like do know

more alu the privaic files lanardon!

on public chicals and shat use lie made

orthem.John.door.alrmertoglm.f

ficial, has coid 3l:t that ine had been

quested the times bo the committee

about the drasiers ascerabled ly 1lee-

sor on scores di prote. Just what hap.

gide 10 s0e do the liles aller 1liz-

reis desth in 1972 is still a mastery.

NW 68262 Docld:32989576 Page 55-

---

## Page 56

FBI.

Justino Dept. Tools Into Burean Bribe Intestigation

FBI Bid to Kill Probe Charged

By Ronald Kessler

The informed

source said:pered by the rat's handling offbl as a member of the buchese

Raghington Post Sir!! Writer

¡Kelloy's requests, which were;the case betore selley becanici Jer York Mafia family.

Shortis after he became di- known to only a few FBI andi director in

July.

Caputo is alleged to have

source said.

fector of the FBI, Clarence M. department officials amcunted;

bribed Stabile.

Chief among these problems

Kelley twice made unsuccess-ilo

"pressure" and an

"at-l

The trial, however, centers

- which were confirmed by al on the question of shether Ca-

ful attempis to stop a Justice impt to suppress it [the in- second source - was the factipuio lied when he told a rand

Department investigation of "estation!"

that the FBI immediately con-ljury he had not admitted to

allegation that

The FBI. the former prose fronted Stabile with the bribe FBi agents that he paid off

agent had been bribed by a cutors said, is a fact-lindingi allegation iciore

attemptina, Yew York cit policemen.

member of the Malia, accord. azency that normally does notito

gather eridence

againsti

Reached at his Mastes, Pa.:

ling to an informed sourec.

express opinions on whetherlin.

country home Caputo.

71, said

The

charge was

leveled; an

investization

started byl in doing so, the source said. lof the charse he paid oit un

against New

York FBI agent Justice should be continued.

Joseph. Stabile by two fellow.

Another

Ithe FBI asent gave the agent: FBl agent.

former

"I sot nothinó lo

iederall treatment it would

not give do with this."

New York agents.

One said prosecutor said the FBI,

on others

susyected of criminall

Asked it he is a member ol

Stabile had admitted to him

rare occasions, has

expressed, charior.

¡ the mafia, Caputo said, "come

that he took the bribe.

such an opinion based on man-!

In addition. the source said, 'on. I have nice children. My

An investigation was closed power considerations. But fill at that same time the FEl via kids weni to nice Catholir

when it turned up no evidence intervention when it is a tar!lated jis oin procedures by schools. They say you're with

against Siabile. But the two

get of the investigation wouid: failing to indorar the

Justice; this, with that."

agents who made the accusa.

be "improper." the former Jus-i Department ahn! it

WAS CON-

Many of the essential facts

tion told the Justice Depart-

five Depariment otficial snid.! ducung an investigation oi the surrounding the bribe allega.

racnt's orgainized crime srike

Sources

¿amiliar

with

the bribe allesation.

¡tion - including the denity of

force in Brooklsn that te FBlibribe allezation attribualed!

An FBi spokesman said Kicl! the accused arent. Stablic

investigation

had

been

Kelley's action

feeling, loy

cannot commicht

on the, were revealed in pretrial tes-

"cover-up," the source said.

" lung held by FBI leaders that bribe allecation because manytimony taken last montis for

This triggered a Justice De-

any hint of corruption wouldlot the

same issues will be, Caputos

pending

perjury"

irreparably

partmeni investigation, which

Gamasc

the

hu raised in a Brooklyn nerjury trial.

•is continuins, the source said.

reau's image and elfective-trial scheduicd to begin april;

Desnite the origin

of

r.CsS.

the.

: 14.

• Justice Department investiga-:

Although Kelley's attempts,

The trial. to be held in u.s.

tion, the source said, kulie;

were unsuecessful, the Justice: district Cour:. is of Join Ca.

asked

high rankir?

depart- inrestigation had been hant, puto, who is identified by the

ment officials in 1973 to call:

the Brooklyn prosccutor's off!

the case

on the grounds the i

FBI had found no violations of

law.

In addition, the source said.

'Keliey complained that

the

Justice investigation was hurt.

ing FBI morale.

During the ensuing dispute,

'he said.

flenry

F..

Petersen.

then chief uf the Criminal DI-,

rision or Justice, interineri Mic

Brooklyn prosecutors ot Kicl

leg's attemps and iuk! Kelley

the investigation would con-

tinuc.

Another source said Peter.

sen later cited the New York

incident to show tire neeil tur

an

inspector scheral

within

the Jastice Department lu ju.

lice the FBl.

Petersen, Who has since left!

the Justice

Departient. con-,

firmai

recentl

that

Kell's

nanted the introd ration slop-!

ped but could not

recal huts',

he had made his viens älessn.

Peterion said he

Hallel not!

mispute that it mas in the loss

of a request.

"There las a difference of

opilitand,

and

ultratts

Legimens on the Creal l

siun presadled. and the fill i

quic-evel in that upinion,"

iraid.

* NW 68262 Docld:32989576 Page 56 .

---

## Page 57

j-140 (Rev. 1-21-74) FEDERAL BUREAU OF INVESTIGATION

WASHINGTON, D. C. 20535

Addressee: -

SENATE SELECT COMMITTEE. 26

OLTR

AT LHM

• Memo

• Report dated —

1/23/76

Caption o DOC SENATE SELECT COMMITTEE.

inspection procedures for

1/8/76 request

misconduct or alice

Darn chard paylon 1/28/16

Receited by: M. T. Epsten

Title:

Return this receipt to the Intelligence Division, FBI

NW 68262 Docld:32989576 Page 57

---

## Page 58

SSC Request 1/8/76

Allegation Number 2

Question Number 7

Excisions are for reason of privacy or due

to Third Agency/sensitive foreign intelligence

operations considerations.

For Retention

---

## Page 59

PERS. REC. UNIT

The Attorney General

Director, IBI

TIME" MAGAZINE ARTICIE

CCNCIANING EGB PENGIZATION

02 DEI IN 1061 AID 1938

INTERNAL SECURXTY - RUSSIA

August 6, 1975

Kue

Bricker

A representative of C.

advised this Bureau on

Fuly 91. 1075,

that tr, Stroboyfalhort c& "Tine" nagasine

concerted sis

and inarcared that he was Deepazing an 2ie10Ie

concerning an ailaged cover-up by the for or a soviet intel

ligence penetration of ou Now Tons Division during ISes.

he has information from two sources

that

i waitress noned/Ble lins a Soviet agent and vas invoived

win a special agont or the fil ascinod to the lew ork Dire 1

According to

faitori, this Spocial. Arent vas

perm. tred

te rosign quaecly.

2a 2303d

auriced the that according to one.

of his

sources, SlA loanaed of this peretzation Econ a

SOUrCO

z.n

noscow and passed the iniornaezon

to the NOt.

lalbert

stated he los

saying to 21nd oue cron cia mecher this

SCOTY

would endaager Clare source. CA advised Talbert that there vas

nothing in theis files concorning such an episode.

Talbert's story appears in the issue of "Tine" dated

hugust I1, 1075.

Rovever; in the article, the waitress is

2a00d sh

the trut

is also

allegod to have

Jolen into her

apartnont. There is an additioni reference in the article to

1901 penetration oi tha IDi by the Soviets.

Talbort's story is & discontion of un incident iû-

volving a {01nor

Assoc. Dir. -

catosson wich was one block

Dep. AD Adm. -

Dep. AD Iny. _

Enclosure

EX-1C6.

Asst. Dir.:

Admin.

(3)

Comp. Syst. -

Ext. Alloirs ..

Files & Com.

Gon. inv.

Ideni..

Inspection.

Intoll. .

Laboratory

Plon, 8 Evol. -

Spoo-Invis

Training -

Logal Coun. w..

Telephono Rm.

N Ga 62: Do đ33 2989,160

TELETYPE UNIT L

'age b

our New York IDIorfice and

REC-102-10765

SECATT

SEE NOTE PAGE 3

WALE Rested by 10011N

AUG

Extrapt Eren GOS,

, Categorios 2 ands AUG 19, 19751.

Dato of Declussification Indefinita

NATIONAL SECURITY INFORMATION I

Unauthorized Disehosafe

6;10 954-316

---

## Page 60

The Attornoy Genoral

which me, for & period of tine, frequented by FBI personnel.

That redi noant,

along with others in the area, tas also iro

quonted by dovice porsonnel, as the soviot mission to che

United lutions is Iccated within two blocks of ou ortice in

New York.

Tis luccau had learned through its sonsitive intei

ligence sources thai loviot intollisonce vas tasroting ageinst

out personuol and me actonpting to overhoar thois conversatlons

in restaurants in tho area.

The then head of our New Kons Division was deoply

concerned hour the bot Some as to tas aLeo concea

the knowledgo tha luden Lanan had of for oftioe matiers.

in hes conversations with ot porsonnel ai tho delie

caressch, often commented on such matters as invel by fat

personnel or on other administrative mators and appeared to

have an unusual knowledge of and interest in the acolvales

& discreet physical survoillance

the st licha

mental remined overnight at her apartment.

s/ Deenaniwas interviened on July 18,45024.220

admitted

She,t

he had been having an affair with butti aghte

over the last thee yen's. Me donzed under oath funishing

hor any classiciod inconcion.

However, ho did admit, that

he hnd givon her sush nonclassitiod documonts as the

No evicienco was developed indicating

On Guly 19.

mcmast nad divulgod classiled

matters so her.

dA tronal resiguen on july 18, 1963.

With regard to the 1001 mattos, tho "ma" article

is ossenblally accurato with the oxcoption that the special.

Agent in question ras n0% "lizod on a minor technicality,"

but rosigued in 10s5 following information having beon de

veloped that he had zaisialed reports.

In carly 1992, the IDI recoived a letter signed by

oue Kasl Brucker sinting that if we covered a colophone booth

in tho lachington, D. C., suburbs at a cpecilled time, we

et 25.059

NW 68262- Docld:32989576 Page 60...

---

## Page 61

The Attorney General

rould identisy an individual wis was selling IBE reports on

that lettos, we now poliove, was written

by a sovice intelligonce airicor.

Ho covered

telephons booth in question and

given & polyeraph examination and no aticapt at doception was

noted in his denial.

In the absence of any evidence estab

Ishinz ho hod connicted espsonagus

the ouly course open tas

to reassign rim in nonschsitve laccors ana

chas was dona.

From & censitive source, this Bureau subsequently

Ionaned thnt an iDl non had furnished ino reposis to the

soriots but when thoy dad not pay the money he asted fox, he

broken with them.

Copies

of the roposts in question

were

mássing irom the files of our lachington Fiold O11ic0.

Lizon inteasine investigarion

and analysis,

it pas

concluded that SA francomms the individual roforred to in

the

Brucior lotter and vas the individual about whom the souce

provided inionarion. He did not have et the time, and we do

not have today, however, aunissible evidance to prove this.

This information is being furnished to you because

¿ mne you to ba anaro of all the lects and to low that

there was no COVel.UD.

Tho "Imo" magazine story, as ii relatos io the 1968

netter. is inaccurato in

that de astributos the criginal in

Eormation

about vot ponetration to a corousce which is

RO%

the

case; in that dt aileros that the valiness was a EGB

and

agon't,

thore

was no ovidence to support that assertion; and in

that du statos we broke into her apartnont and recovored docu

ments and raports, whoreas she consented to the interview and

the lioms recovored vere pubiie source publications.

There was

no coverun.

the IDi took personnol action to recolve & peir

sonnel matter.

Enclosed for your information is a copy of the "Time"

NOTE: article.

See memorandum W. 1. Branigan to Mr. W. R. Wannall

dated 8/5/75 captioned same

CHERTA

nrepared by JeN:yi.

NW 68262 Docld:32989576 Page 61

---

## Page 62

SS& Request 1/8/76

Allegation Number 3

Question Number 7

Excisions are for reason of privacy or due

to Third Agency/sensitive foreign intelligence

operations considerations.

For Retention

_ NW 68262 Docld:32989576 Page 62

---

## Page 63

PEPT

3. ROC.. UNIT

August 6, 1975

The Attorney General

Director, FBI

"TIME" MAGAZINE ARTICLE

CONCERNING KGS PENEIZATION

OT FBE IN 1951 AND 1953

INTERNAL SECURITY - RUSSIA

Kee

Pricken

reprecentative of Ch?

advised this Bureau on

July 31, 1975, that ir. Strcbe Talkert of "Time" magazine

contacted fit

and Inacared that ne vas preparing an article

concerning an allaged cover -up

by the fri of a Soviet intel»

ligence penetration of ow. New York Division during 1933.

According to lalbert, he has information iron tno sources that

2 vaitross named (rate"vas a Soviet agent and vas involved

with a special Agent of the

Fer assigned to the New York. Divis

According to

Talbert, this Special Aront was permitted

to socien quiesly.

Balhort advised OLA tast zecozding to one

of his sources, diA learned ol this pertraion dron a altar

source in oscar and passed the informacion to the Ill.

stated he was trying

to find out crom CiA whether this story

would endanger CiA's source.

She advised Talbert Chat there

13 S

Boching in their files concerning such an episode.

Talbert's story appears in the issue of "fine" dated

August 11, 1975•

Havevor, in the article,

the waitress is un

Ramed and

the fBt is also

alleged to have

broken into her

apartnent.

There is an additional. reference in the article to

& 1961 peneszation of the fbi by the Soviets.

i2i0d

Talbort's story

is & distortion

or

incident in

volving a former Speczal Agent of the

New York Division with

waitress namedIath lackind.

barkin was employed in a deli

Assoc. Dir..

catessen which was one block from

our New York EBl office and

Dep. AD Adm. -

Dop. AD iny. -

Enclosure

EX-10ô

REC-162-1077

Asst. Dir.:

SEE NOTLY PAGINS

Admin.

13)

Comp. Syst.

Exi. Affairs

Files & Com..

Gon. Inv. -

Ident.

Inspection ..

Intell. .

Laboratory

Plan. & Eval.

Spoc. Inv._.

Training _

Legal Coun. -

Telephono Rm.

68262 Docld:32989576 Page 63..

AUG

Exchpe from cos,

Categories 2 andog AUG I9 19751.

Date of Declassification Indefinite

NATIONAL SECURITY INFORUATION

Unauthorized Disclosure

OUr subiet to Criminal antia r

TELETYPE UNIT C

197. 578-

610 954-346

---

## Page 64

The Attorney General

which mas. sore persod of tine, frequented by fEl personnel.

that rewsrant, along with others in the area, was also ire-

quented by joviet personnel, as the soviet Mission to che

United lations is located within two blocks of ou office it

New York.

This Buccau had learned through its sensitive intel

ligence sources that soviet intelligence was targeting against

ole personnel and was attempting to overhear theis conversations

in restaurants in the area.

The then

head of our New Torts Division vas deeply

catessen, citen comented on such matters as travel by fat

personnel

or on othor administrative matters and appeared o

have an

unusual, knowledge or and interest in the activates

of our lew York Division. discreet physical surveillance

was insultuted ouldian Larch and that survelliance revealed

that 34 bon Long

Unionan) remained overnight at her apartment.

SA Frtenan

1968, 200

over the last three years.

ersa

he donzed under oath furnishing

hor any classiliod inormation.

Bowevor, he did admit that

he had given her such nonclassified documonts as the TBI Law

Enforcenent Builotin."

No evidenco was developed indicating

Intertgonce cole, and she was racerteved

on July 19s

1968, and denied SA trutenan had divulgod classified

matters to her. SA Peronen rosigned on July 18, 1968.

Vito regard to the 1961 matter, the "Tune' article

is ossentially accurato with

the exception that che ipecial

Agent In question vas not "fired on a minor technicallty,"

bat resigned in 1065 following Information having been de

veloped that he had falsilied reports.

In early 1992, the FBI received a letter signed by

* che kari Brucker stating that if we covered a telephone booth

in the Washington, D. C., suburbs at a spocilled time, we

4s 2 m0s

NW 68262 Docld:32989576 Page 64

=-I5

---

## Page 65

SECRET

The Attorney General

vould identify an individual wis was salling FBI reporio on

foreign orficials.

that letter, we now believe, was witten

by a soviod intelligonce oftices.

We covered tho telephone booth in question and

Corner SA prian Isinoneer, now deceased, was observed in.

telephone booth as the specified time.

3A Brencey was

given & polygraph examiration and no atsompt at deception was

noted in hás denial.

In the absence of any evidence estab

Lishing he had commissed espzonagi, the euly course open vas

to reassign fim in nonsensitive matiers and chis vas done.

Tron & sensitive source, this Bureau subsequently

leazned that an FBi man had furnished two repocis to the

Soviets but when they did not pay the money he asted for, he

had broken with them. Coples of the roports in question vexe

missing excm the iiles of our Washington Field 02tic0.

Astor intensive investigacion and analysis, it was

concluded that sA Sosncer was the individual roferred to in

the Brucker Zotter and vas the individual about whom the source

provided intormation.

He did not have at the fine, and va do

not have today: however, admissible evidence to nove this.

This information is being lurnished to you because

& want you to be avase of all the faces and to know that

these was no cover ups

Tha "Jina" magazine story, as it relates to the 1968

matter, is inaccurate in

that it artzibutes the original in~

Zormation

about is panetracion to a Sys source which is not

the case; in that it alleges that the mitcess was a kes agent.

there ms no evidence to support that assertion; and in

that it states we broke into her apartmont and recovered docu

ments and raports, whereas she consented to the interview and

the items recovered were public source publications.

There was

20 covEr up.

The I'Bt took personnol action to resolve & per

sonnel matter.

Inclosed for your information is a copy of the "Time"

NOTE: article.

See memorandum W. A. Branigan to Nr. W. R. Wannall

dated 8/5/75 captioned samenchte

prepared. by JEN:yi.

NW 68262 Docld:32989576 Page 65

58

---

## Page 66

no ...

SSC Request 1/8/76

Allegation Number 5

Questions Numbered 6 and 7

For Retention

NW 68262 Docld:32989576 Page 66

---

## Page 67

OPTIONAL FORM NO. 1D

~.- JULY IETO EDITION

CIA FPMA 14!

CFRI 101.11.0

UNITED STATES GOVERNMENT

Memorandum

: The Attorney General

DATE: December 24, 1975

: Director, FBI

CT: "OFFICIAL AND CONFIDENTIAL" FILES OF

J. EDGAR HOOVER

Reference is made to my memorandum captioned 'United

States Senate Select Committee on Intelligence Activities," dated July 16,

1975, with enclosures setting forth results of our inquiry into the dis-

position of files maintained in the office of former Director J. Edgar

Hoover.

nel without the

210212

Time magazine dated December 15, 1975, on pages 10, 11,

and 12, had an article captioned "Hoover's Political Spying for Presidents

Within this article, and specifically on page 11, column 3, paragraph 2,

the article states:

omanitre

nation outsile, 1'0?58

"Before Secretary Gandy could look at them in Hoover's

house, the most sensitive papers were carried off in an FBI

truck to West Virginia's Blue Ridge Club, a Shenandoah Mountain

hideaway used by innermost FBI officials for regular poker games

with CIA and other cronies. There the papers were burned in

the club's large fireplace. Precisely who ordered this destruc-

express approval o

Committce.

tion and carried it out has not been disclosed. The three-story

I's use

This document is prepared in response to

club, valued at up to $200, 000, burned to the ground in a fire

of undetermined cause on Nov. 23. No evidence of arson has

been discovered."

Poto the lie in the partic ta Rue ta are ne

limited to

Sandy Smith, a Time magazine reporter, advised this Bureau that he had

corroborated the above-cited matter through three sources. Smith indicated

that J. P. Mohi, former Assistant to the Director, within 48 hours of

Mr. Hoover's death had ordered the destruction of these files and that an

Agent had taken these iles to the Blue Ridge Gun Club where they were

norized

burned.

1 - Messrs. Adams, Moore, Wannall (Cregar), Mintz (Sent Separately)

person

nflinial proceedings by

your request and is not for dissemi

JAC:bhg (1)

NW 68262 Docid: 32989576 Page 67-

---

## Page 68

The Attorney General

Investigation was conducted by the fBI concerning this

particular allegation appearing in Time magazine.

On December 16, 1975, Mrs. Hulda Weese, Route 9, Sweet

Springs Community, Loudoun County, Virginia, was interviewed at her

residence and advised she had been the caretaker and cook at the Blue

Ridge Rod and Gun Club located in Loudoun County, Virginia, since

April 8, 1971. She stated that on that date she and her family moved

into the residence at the club and she resided continuously at that location

until November 23, 1975, when the club was destroyed by fire.

Mrs. Weese was questioned concerning the allegation appearing

in the above-cited Time magazine article to the effect that an FBI truck

had delivered certain records to the club which were then destroyed in.

the club's fireplace..

Mrs. Weese stated that it would have been virtually

impossible for anyone to have destroyed records in any of the three fire-

places of the club without her knowledge because she and her family resided

at the club on a continuous basis since April, 1971. She also advised she

was the only one who had keys to the front and back doors of the clubhouse

and pointed out that as caretaker one of her responsibilities was to insure

that only members or guests accompanied by members were allowed

admittance to the clubhouse. Mrs. Weese stated that there was an iron

fence

located across the driveway approximately 60 yards from the club-

house which was kept locked at all times except when members were present

at the club. Mrs. Weese also commented that she had four watchdogs at

the club who were very alert for the presence of strangers or in fact any-

one. She advised that one of her responsibilities was to keep the fireplaces

clean at the clubhouse which she did and at no time did she observe any-

thing in the fireplaces indicating that any records had been destroyed.

Mrs. Weese stated emphatically that at no time did anyone come to the

club and burn records in the fireplaces or anywhere else.

Concerning the fire at the club on November 23. 1975.

Mrs. Weese stated she had left the club for a short period of time to per-

form an errand and left behind her son and some of her friends at the club-

house. She related that at approsimately 4:00 p.m. her son observed

smoke coming from the attic of the club around the windous and chimney

and her son alerted the other occupants of the clubhouse as well as the

local fire department. She stated that a number of tire departmonts

responded to the lire but were unable to extinguish the fire with any degree

- 2 -

NW-68262-Docld:32909515-Page 68

---

## Page 69

The Attorney General

of success. She continued that a fire marshal, one Oliver Dube, was

present on the scene and when she questioned him as to the cause of the

fire he advised that it had apparently been an accident and was probably

caused by defective electrical wiring in the building.

On December 16, 1975, Oliver R. Dube, Fire Marshal,

Loudoun County Fire and Rescue Service, Leesburg, Virginia, was inter-

viewed concerning this particular fire and stated he responded to the scene

within one hour of its having started, had examined the ruins, and had

come to the conclusion the fire was of "accidental origin." Mr. Dube

advised that his investigation had not been concluded as yet but felt sure

the fire started because of defective electrical wiring in an area near

the ceiling level of the first floor. He volunteered he did not observe

anything at the scene or find any evidence indicating the fire was caused

by arson.

On December 17, 1975, Mr. John P. Mohr, former Assistant

to the Director, FBI (now retired), advised in response to our request for

an interview with him concerning the allegation in this matter that he had

already testified with regard to the disposal of Mr. Hoover's papers

before the Subcommittee, headed by Chairperson Bella Abzug, and thought

that his testimony in this regard should suffice. Mr. Mohr further advised

that he had contacted his attorney, Mr. Brian Gettings, who is representing

him in connection with matters relating to the FBI involving U. S. Recording

Company and Mr. Hoover's files, and his attorney had counseled him not

to be interviewed in connection therewith. In proffering his declination to

be interviewed in this regard, Mr. Mohr orally advised that he had nothing

whatsoever to do with taking any fies as alleged and was highly incensed

that such an allegation should be made.

Concerning the above information, I wish to refer to my memo-

randum to you captioned "John P. Mohr, former Assistant to the Director, "

dated December 22, 1975, wherein I furnished you with results of a dis-

cussion I had with Sandy Smith of Time magazine on December 19. 1975.

In my memorandum I pointed out under item 4 that Smith made reference

to the "Blue Ridge Club" and Smith's feeling that this club was the place

where Mr. Hoover's records were burned shortly aiter Mr. Hoover's

death.

-3-

NW 68262-Docld:32989576-Page-69

---

## Page 70

The Attorney General

The above information concerning our inquiry about this

allegation is being furnished for your information and I will subsequently

inform you as to the results of our ongoing inquiry concerning the U. S.

Recording Company as well as other allegations raised by Smith in his

conversation on December 19, 1975.

1 - The Deputy Attorney General

Attention: Mr. K. William O'Connor

- 4 -

NW 68262 Docld:32989576 Page 70

---

## Page 71

SSC REQUEST 1/8/76

ALLIGATION NUMBER 4

QUESTION NUMBER 7

FOR RETENTION

NW 68262 Docld:32989576 Page 71

---

## Page 72

The Attorney General

June 4, 1975

Director, I'st

JOEN CAPUTO, AND CTHERS

BRIBERY;

INFORMATION MEMORANDUM

Reference is made to ray letter datad Mao 6, 1575, captioned

as above.

Taferencod lotter sdvisod you that the = 2I was in receipt of

"itare didaras"" "uteve Adams" was said to be urgiovad by tha

'A rsasury Lepartment."

Investigation conducted by the rial in an effort to develop

evidence in support ci tue subpaticas bas coon acripictor aná no

eviconca was unearered te saistantiato lad allurie 33. marilte ci

our investigation are contained in repert ot. inspector Clare f. Orcwn

dated May 23, 1975, at Naw fork, New xors, captioned as above, a

copy of which is altached.

Ca May 28 and 29, 1975 (Special Agent Joseph Stabile vas

interviewed regarding these allegations.

He categorically dentes

involvement in the alleged improper activities. A copy of an 170-002

setting out results of our interview withspecial Agent Stabile)is

attached.

Unless advised to the contrary by you, no additical inser

tigation will be conducted into the allegaticns of iraproper conduct on

the part of Federal law enforcement employees made by guilen 1975,

Sowers.

This document is prepared in response to yöur request and is not.for dissemi

Enclosures (a)nation ortsi?? noy Committee.

Its use is limited to official proceedings by

your Comm

e azil the content may not be disclosed to unauthorized person

nel without the express approval of the FBI .

Excisions MADE FAR REASONS

Of PRiJACY

NW 68262 Docld:32989576 Page 72

---

## Page 73

• FD-204 (Rev. 3-3-59)

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

Copy to:

1-STRIKE FORCE, EDNY (ENCS. 2)

1-STRIKE FORGE, SDNY (ENCS. 2)

Report of:

Date:

INSPECTOR CLARK F. BROWN/mgh

5/23/75

Field Office File #: NY 58-1854

Title:

JOHN CAPUTO; ETAI

NEW YORK, NEW YORK

Office:

Bureau File #: 58-8221

ALL EXCISIONS MADE FOR

PRIVACY CONSIDERATIONS

EXCEPT AS OTHERWISE NOTED

Character:

This document is prepared in response to your request and is not for dissomi.

by

It's use is (mated to offinal proceedingo

Committee.

your

nation outsire

vour Commitre and the conto: ma. noi be disclosea to unauthorized person.

approval of the EBI.

enpress

nol witticui ine

BRIBERY; PERJURY

Investigation conducted based on hearsay allegations

suggesting possible corrupt activity in violation of the

Bribery Statute on the part of (SA JOSEPH STABILE)or an

unidentified Federal Law Enforcement Officer, referred to

variously as "JOE STOPPS", "JOE STUBBS" or "THE FED"

and a person referred to as "STEVE ADAMS". The hearsay

allegations were made by GUILLERMO SOWERS who is in

protective custody of the Kings County Prosecutor's

Office, Brooklyn, NY, as a material witness to the killing

Of JAMES NAGI 6/17/74.

Background data relative to SOWERS,

including results of polygraph examination given him by

Kings County District Attorney's Office, set out. In

NAGI's wife, girlfriend, brother, sister, parole officer,

criminal associates and law enforcement contacts, including

FBI, NYCPD and NADJARI Commission, failed to corroborate

SOWERS' hearsay allegations regarding(STABILEJor STEVE

ADAMS; Interviews disclosed NAGI known as FBI, police

and NADJARI Commission informant at various times in his

criminal career.

During 1970 and 1971, NAGI was productive.

FBI informant assigned to SA JOHN GOOD. SA GOOD has no

reason to believe NAGI was ever in contact with(SA STABILE.)

Miscellaneous personal records of JAMES NAGI, including

address books and notations of names and phone numbers were

reviewed and nothing identifiable with JOSEPH STABILE, py

name, telephone number, residences and/or confidential

FBI

telephone numbers was found.

Allegations regarding SA

STABILE'S corrupt association with COLOMBO La Cosa Nostra

(LCN) family members JOSEPH GENTILE, ANTHONY TUZIO, GREGORY

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to your agency; it and its contents

are not to be distributed outside your agency.

U. S. GOVERNMENT PRINTING OFFICE: 1970 0 - 106-840

- NW-68262. Docld:32989576 Page 73

---

## Page 74

NY 58-1854

Synopsis (cont'd)

SCARPA, CHARLES PANARELLA, GEORGE and WHITEY

TROPIANO and non-ICN member WILLIAM CUTOLO have

not been corroborated in any manner.

At time

GENTILE was alleged to have a corrupt association

with(SA STABILE,) FBI's New York Office, in 1972,

had GENTILE extensively covered with Title III

wiretap and microphone surveillances, which

produced extensive evidentiary material against

GENTILE and his associates.

(SA STABILE was

privy to GENTILE investigation which include

highly successful electronic surveillance coverage

Of GENTILE's residence from 9/19 to 10/19/72.

Written record regarding fatal flaw which scuttled

the GENTILE prosecutive case clearly does not

attach culpability to (SA STABILE)in any manner.

Reason why prosecution of US Secret Service case

against PAUL DE PALO, CUTOLO's brother-in-law, has

not moved forward is clearly out of scope of SA

STABILE's sphere of influence. There is no employee

named "ADAMS" currently working in NY FBI Office.

-P-

ENCLOSURES

TO: STRIKE FORCE, EASTERN DISTRICT OF NEW YORK (2)

TO: STRIKE FORCE, SOUTHERN DISTRICT OF NEW YORK (2)

Letterhead memoranda dated 5/22/75, and 5/19/75.

-la-

NW 68262 Docld:32989576 Page 74

---

## Page 75

TABLE OF CONTENTS

Pages

2-34

INTERVIEWS OF GUILEERMO SOWERS AND RELATED INTERVIEWS

Apr11 15, 1975-

April 305

1975-

April 30, 1975-

4

8

May 14, 15, 1975-

May 14, 1975---

MaY 14, 1975-

May 15, 1975

Interview of Deputy Inspector John Nevins,

-16

-18

-19

May 1 and 2, 1975----

Interview of Detective John W. Nulty, May 12, 1975---

Interview of Mrs. Guillermo Sowers, May 16, 1975-

-20

-21-23

-24

Review of transcripts of Sowers recorded conversa-

tions, May 19, 1975--

-25

Contact with Attorney in Charge, Southern District

of New York Strike Force, May 9, 1975----

-26

Contact with Chief of Rackets Bureau, Kings County

District Attorney's Office, May 9, 1975--

-27

Contact with polygraph operator Richard Arthur,

May 12, 1975--------

Review of Sowers polygraph charts, May 13, 1975-

-28

-29

Interview of Angelo Tona, former Assistant,

Prosecutor's Office, Kings County, May 19, 1975---32

Interview of Special Agent Arthur Ruffels, May 21,

1975-----

-34

BACKGROUND MATERIAL REGARDING GUILLERMO SOWERS

35-90

Review of Sowers U. S. Marine Corps Service Records----36

Review of Dade County, Florida, Public Safety

Department record

re Sowers----

-38

Review of Immigration and Naturalization Service

records re Sowers----

- 39

INVESTIGATION CONDUCTED TO DETERMINE WHETHER OR NOT THE

FBI UTILIZED AN EMERY FREIGHT TRUCK DURING SUMMER 1972

Review of FBI Voucher Statistical Section records-

Interview of Emery Air Freight District Manager,

May 12, 1975---------

Interview of District Comptroller for Hertz

Corporation, May 12,

1975-

41

-42

-43

-44

-1b-

NW 68262 Docld:32989576 Page 75

---

## Page 76

Pages

INVESTIGATION CONDUCTED IN EFFORT TO DETERMINE WHETHER

THERE WAS ANY ASSOCIATION WHAISOEVER BETWEEN JAMES

NAGI AND (SPECIAL ACINT STABILE)

45

Review of address books, etc. related to Nagi

May 2, 1975---=-----

-46

Interview of Homicide Detective George Coutsakis

. May 12, 1975--

-47

Interview of Special Agent John F. Good

May ,1, 2, 1975-----

Interview of Mrs. Linda Nagi, May 1,2, 1975-

Interview of Mrs. Linda Nagi, May 20, 1975-

Interview of Mr. Mohammed Nagi May 1, 1975

Interview of Susan Friedman May 1, 1975---

Interview of Miss C. Raseh Nagi, May 20, 1975-

Interview of Miss C. Raseh Nagi, May 20, 1975-

-49

-52

-54

-55

-56

-57

-50

Review of additional notations of names, addresses,

etc. related to James Nagi, May 22, 1975-

-61

Contact with Deputy Inspector James Nevins,

May 20, 1975-----

Interview of Robert Villeroel May 12, 1975-

-62

-63

Review of Great Meadow Prison records re Anthony

Villeroel May 15, 1975---

Interview of Anthony Villeroel May 15, 1975-

-65

-66

Interview of Special Agent Homer P. Hoffman,

May 21, 1975----

Interview of Robert James Martin May 12, 1975---

Interview of Leslie E. Gatherer, May20, 1975-

-70

-71

-77

Interview of Special Agent Bruce J. Brotman,

May 20, 1975--------

Interview of Detective Edmund Carroll May 20, 1975

-78

—80

Interyay 20, 1ormerBpecial Agent Anthony Villang

-82

Interview of Frederic Goldstein May 13, 1975

83

Interview of Detective Philip Shevlin May 21, 1975-----85

Interview of Mr. Michael F. Iovine May 9, 1975---

-86

Interview of Nicholas M. Caputo May 14, 1975

88

Interview of Nicholas M. Caputo May 20, 1975-

-90

INVESTIGATION CONDUCTED TO DETERMINE WHETHER OR NOT SPECTAT.

AGENT JOSEPH STABILE)WAS INVOLVED IN ANY MANNER WHATSOEVER

WITH REGARDS TO THE HIJACKING CASE ON WHICH NAGI WAS

ARRESTED IN NEW JERSEY IN 1970

Interview of John M. Tomaszewski May 7, 1975----

Interview of Deputy Chief, Hudson County

Prosecutor's Office,

May 7, 1975---

Interview of Deputy Chief Hudson County

Prosecutor's Office, May 7, 1975--

Interview of First Assistant Prosecutor,

Hudson

• County Prosecutor's Office May 7, 1975--

NW 68262 Docld:32989576 Page 76

-1C-

91-106

,92

93

94

95

44:

---

## Page 77

Pages

Contact with Major William Baum, Chief of Criminal

Division, New Jersey State Police, May 8, 1975-

Interview Detective John M. Tomaszewski May 8, 1975

-97

Review of Newark Theft of Interstate Shipment Case,

File 15-35089, May 9, 1975-

Interview of DI. Martin Greenberg, May

9, 1975-

Interview of Thomas V. St. Pierre, May 16, 1975-

-98

- - 99

--100

Interview of persons

associated with Nadjari Commission

interest in James Nagi, June 14, 15, 1974-

-101

Interview of Manhattan Bureau Chief, Nadjari

Commission, Richard A. Nachman, May 8, 1975-

--102

Interview of Special Assistant Attorney General,

State of New York, Nadjari Commission, Mark

Federman, May 8, 1975----

--103

Interview of Deputy Inspector Frank Smith, New York

City Police Department, May 8, 1975-

•-104-105

Interview of Sergeant Henry

Flinter, New York City

Police Department, May 8, 1975--

-106

INVESTIGATION CONDUCTED TO DETERMINE WHETHER OR NOT PAUL DE

PALO, HAD A CORRUPT RELATIONSHIP WITH SPECIAL AGENT STABILE

107-118

Interview of Attorney Richard Shanley, Eastern District

of New York Strike Force, May 8, 1975---

--108

Review of Eastern District of

New York Strike Force file

re De Palo case, May 8, 1975-----

-109

Interview of John De Palo, May 8, 1975---

--110

Interview of Eastern District.of New York Strike Force

Attorney David Ritchie; May 8, 1975--

--111

Interview of Attorney Richard Shanley, Eastern District

of New York Strike Force, May 8, 1975----

---112

Interview of Paul De Palo, May 9, 1975-

--113-115

Interview of Senior Resident Agent Raymond J. Tallia,

May 13, 1975--------

Contact with Paul De Palo, May 15, 1975--

-116

--117-118

INVESTIGATION CONDUCTED TO DETERMINE WHETHER OR NOT THERE

EXISTED A CORRUPT ASSOCIATION BETWEEN JOSEPH GENTILE AND

SPECIAL AGENT JOSEPH STABILE

119-130

Review of New York Office

• case file re Joseph Gentile,

Illegal Gambling Business Investigation, May 14,1975---120

Review of Eastern District of New York 147 voice

recording tape, May 14, 1975---

-121

Interview of Special Agent Richard A. Genova May 15, 1975---122

-1₫-

NW 68262 Docld:32989576 Page 77

---

## Page 78

INTERVIEWS OF WILLIAM CUTOLO AND HIS ELOSE ASSOCIATES

Interview of Alfred Salvideo, May 20, 1975-

Interview of William Cutolo,

MaY

• 20,

1975-

Investigation to locate Cutolo, May

20, 1975-

Interview of Joseph Sandberg, May 14, 1975--

INTERVIEWS OF MARK A. PALUMBO, GEORGE TROPIANO, CHARLES

PANARELLA AND ANTHONY TUZIO

Interview of Mark A. Palumbo, May 19, 1915--

Interview of George Tropiano, May 20, 1975

Interview of Charles Panarella, May 20, 1975-

Interview of Anthony Tuzio, May 20, 1975--

INVESTIGATION CONDUCTED REGARDING ALLEGED ASSOCIATE OF

GUILLERMO SOWERS KNOWN AS ROBERT NORDORFF

Interview of Guillermo Sowers, March 11, 1975--

Contact with Shoprite Supermarket Executive

Officers, May 20, 1975-

Review of FBI

Headquarters Telephone Directory

May 20, 1975---------

Interview of Robert Nothdurft, May 21, 1975--

Investigation conducted to identify one STEVE ADAMS-

Contact with New York State Department of Audits

and U. S. Treasury Department---

Review of FBI Personnel Records--

MISCELLANEOUS

Review of FBI Identification record #524276F

regarding James Nagi--

Review of New York City Police Department employment

records

re Eugene Statile-

Suffern, New York, "The Journal News" clipping--

Pages

125-130

-126

127

-128

129-130

131-137

-132

133

-134

-136

138-146

-139

-140

-141

-142

-144

-145

-146

147-152

-148

--151

-----152,

-le-

NW 68262 Docld:32989576 Page 78

---

## Page 79

:

INTERVIEWS OF GUILLERMO

SOWERS

AND RELATED INTERVIEWS

-2-

NW 68262 Docld:32989576 Page 79

---

## Page 80

EDH: mgh-

-1-8

'NY 58-1854

DETAILS

On April 15,1975, GUILLERMO SOWERS, also known

"as PETE®

SOWERS, was interviewed by SA FORD w. COLE, at which time .

he furnished the following information in part:

SOWERS said that one of the reasons that JAMES

NAGI was killed was due to the fact it was believed NAGI was talking

to the police.

SOWERS said that he heard from TROPIANO and CUTOLO

that. NAGI was aware of the existence of other "connections" the mob

had within law enforcement.

One such individual was a JOE STUBS" or "STOPS",

an FBI agent in New York. JOE "STOPS" reportedly had provided

information to organized crime people regarding impending gambling

indictments came out.

SOWERS

learned of the existence of JOE "STOPS" sometime in 1972.

Later, in

1973, when NAGI was still an accepted associate, he was having a

problem in a Federal hijacking matter. CUTOLO and SOWERS were dis~

cussing this at a restaurant in Brooklyn. SOWERS stated, "Why don't

you see what JoE

• "STOPS' can do?"

CUTOLO responded that

JOE "STOPS"

was not longer able to help, as he has been sent to Massachusetts.

JOE "STOPS", according to SOWERS, was not the type

who was available to "nothing guys", but was contacted by the "big

guys", like CHARLIE PANARELLA from Staten Island. Another individual,

supposedly in the FBI, who SOWERS was told was proving information

was someone named "ADAMS". He heard of this individual in February,

1974.

One of the reasons SOWERS became an informant was that he

feared performing a hit on NICKY "BOOTS" CAPUTO for TROPIANO and

CUTOLO.

-3-

NW 68262 Docld:32989576 Page 80

---

## Page 81

FD-302 (REY. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

..

Date of transcription.

May 5, 1975

Mr. Guillermo Sowers, also known as Pete and Bill, was inter-

viewed on the premises of Borough Hall, Brooklyn, New York. Prior to

the interview he was placed under oath and he furnished the following state-

ment:

"April 30, 1975

Brooklyn, N.Y.

"I, Guillermo Sowers, being duly sworn, hereby make the

following free and voluntary statement to Clark Brown and Edward D.

Hegarty who have identified themselves to me as employees of the Federal

Bureau of Investigation and have advised me the purpose of the interview

is to obtain from me any information I may possess regarding improper

activities of employees of the Federal Bureau of Investigation.

"I was born Jan. 20, 1943 at Havana, Cuba.

"I have never offered a bribe for any reason whatsoever to any

employee of the F.B.I. I have never directly received any information of

any type from an employee of the FBI. At no time did anyone ever tell

me that they had offered a bribe to an employee of the FBI or had ever

received confidential information from an employee of the FBI.

I recall having a conversation during the early summer of 1972

with George Tropiano, William Cutolo and James Nagi regarding a

problem Nagi was having with law enforcement in New Jersey regarding

• a hijacking or a kidnapping or possession of a shotgun or some other

crime. Cutolo asked Tropiano about 'Joe Staps or Stubbs' Tropiano left

to make a telephone call. When Tropiano returned he told Nagi he would

try to help him out. On the following day Cutolo, in my presence, gave

Nagi a piece of paper which bore the name, as 1 now recall, Joseph

Stambile' or 'Joseph Stabile) or something

like that. The piece of paper

also bore a telephone number. Cutolo told Nagi to call this person and

make an appointment to discuss his, Nagi's problem. Cutolo told Nagi

Interviewed on April 30, 1975

Brooklyn, New York

Inspector Clark F.

Brown and

by-

Special Agent Edward D. Hegarty:bhg

Filer#

Date dictated

May 5, 1975

This document contoins neither recommendulions nos conclusions of the FBl. Il is the properly of the FBI ond is looned lo your agency:

it and its contents are not to be distributed outside your agency.

4

NW 68262 Docld:32989576 Page 81

---

## Page 82

2

it would cost him, Nagi, a few dollars. I don't think Tropiano was present

on this second occasion. I think both of these conversations took place at

'Burger Prince,' a restaurant at 65th and 8th Ave., Brooklyn, N. Y., during

the early afternoon. Cutolo was anxious to help Nagi because Nagi had just

Completed a $22, 000. 00 score for Cutolo and Tropiano. The score was an

armed robbery of the Co-Op Supermarket, Bronx;

; N.Y., in May 1972. On

the first occasion Cutolo described 'Joe Stubbs' as a Federal Agent.

"Subsequent to the above two occasions I was involved with Cutolo,.

Tropiano and six or seven other persons including Andy Carlisi, Anthony

Villaroll and Greg who was a fence at 76th St and 13th Ave. in Brooklyn,

a little discount store. Greg was a white male ,about late 30's or 40's,

5'8"~10", Italian background. Mario Tropiano was also involved; 'The

Greek' who was arrested for shooting someone at Tiffany's Diner about

two or 3 years ago; 'The Greek's: brother who is a foreman at a downtown

pier. This group was active in hijacking during the summer of 1972 in the

area of 39th St. and 2nd Ave., Brooklyn, N. Y.; JFK Airport; and 'Greenpoint'

a trucking terminal in Brooklyn, N. Y.; and at Cooper and Jarrett (phonetic)

in New Jersey. Cutolo furnished me a handwritten list of New York State

license tags, cars and two trucks or 5 cars and two trucks, and told me

to watch for them because they were being used by The Feds.: The list

included the type of car, color and license tag number. The cars were

Plymouth, Ford and Does. One of the trucks was a former telephone

repair panel truck painted black. The second truck was a three-quarter

panel truck which bore the name 'Emery Air Freight' and was painted white

with blue lettering.

"On several occasions I spotted several of the cars at the piers,

39th St. and 2nd Avenue area when I was planning a hijacking. Villaroll,

Nagi, Carlisi and some of the others also spotted some of these cars when

they were with me. I never saw these cars at JFK Airport. I never saw

the black panel truck. About 25 or 30 times during the summer of 1972 I

saw the Emery Air Freight truck at JFK Airport, air freight section, the

area of 39th and 2nd Avenue, Brooklyn and around the Burger Prince

Restaurant. Every time I saw the truck there were 2 guys in it; always

the same two. One of these two was about 5' 10", 200 pounds, late 30's

or 40's, brown hair, Irish appearance, the second guy was white male

also and he was in his mid-thirties, 5' 8", 160 pounds.

"When Cutolo gave me the list of vehicles he told me that he got

it from 'his friend, the Fed.' I think Villaroll, Nagi, Carlisi and some of

the others involved in the actual hijackings saw Cutolo give the list to me

at the Burger Prince.

5

_MV 68762 Docld:32989576. Page 82

---

## Page 83

3

"Around April or May or sometime in the first half of 1974 I had

a conversation with Cutolo and I think, but am uncertain, that George

Tropiano was also present. On this occasion Cutolo said that his 'connection'

and by 'connection' I bélieve he was refering to 'Joe Stubbs' was originally

"Joe Gentile's also known as 'Joe Lane's' connection. On other occasions

during 1974 Cutolo told me that 'Colombo' had received information regarding

an indictment of Colombo before the indictment was returned. Cutolo

indicated that he, Cutolo, obtained this information from 'The Fed' and

passed it on to Colombo.

"On Saturday June 15, 1974, George Tropiano, Cutolo and I had

a conversation at Burger Prince. Tropiano said that he had received a

telephone call that Nagi was either cooperating with or was going to

cooperate with the Nadjari Commission and that we would have to kill Nagi

within the next two days. On June 17, 1974 Nagi was murdered. About a

month later Cutolo told me that he either called 'Joe' who was 'in Boston'

or he was going to call 'Joe and tell him that he, Cutolo, 'took care of the

problem' and that he, Cutolo was going to see him. Cutolo also said that

'Foe" was no longer in town and was then in 'Massachuselts.'

*I recall that in about May of 197 James Nagi and I had a con-

versation in a corridor of the Bronx Court House, 161st Street and Grand

Concourse. Nagi was planning a shakedown of someone whom he did not

name. Nagi wanted 'silencers' some 'badges' that I previously had in my

possession. Two of these badges were FBI badges and two New York City

Police Department Detective Shields. I had obtained these 4 badges from

Cutolo who obtained them from George Tropiano, according to Cutolo. •

Linda Nagi, Wife of James Nagi, was present and she might have overheard

the conversation. James Nagi said when I told him I didn't have the badges

any longer, that he would have to see 'Joe' and would have to 'go out of

town."' Linda Nagi is a white female, mid 20's, 5' 8",

, wears glasses and

operates a beauty salon around Lucas and Clifton Streets, Brooklyn, N. Y.

Nagi and Nicky 'Boots' Caputo wanted the silencers for purpose of using

them to kill George Tropiano.

"Other than Cutolo, George Tropiano and James Nagi no one

else: has discussed 'Joe Stapps' with me.

"I recall during a conversation I had with Cutolo during 1974 that

he said Joe Stapps was receiving $1000. 00 a month for information he was

providing to Cutolo and others. Cutolo also told me that 'Joe Stapps' was

: 6

NW 68262 Docld:32989576 Page 83

10!

---

## Page 84

either working for or was going to work for 'Whitey' Tropiano's men.

Cutolo also told me that his brother-in-law Paul De Paola (phonetic) was

having a problem with, Denis Dillon, Federal Strike Force, and that his

friend 'The Fed' was giving him information regarding this matter. I

learned of the De Paola matter in 1974 but the actual interest of Dillon

in De Paola was before 1974." Signed'Guillermo Sowers."

• In addition to the above information Sowers said he was associated

with George Tropiano and William Cutolo during the period of April, 1972,

until September, 1972, and from January, 1974, -to November, 1974.

A spread of eleven photographs including that of SA Joseph Stabile)

was Shown to Mr. Sowers. He did not identify any of the photos.

A second spread of nine photographs was shown to Mr. Sowers.

He identified photos of William Cutolo ana George Tropiano.

Mr. Sowers advised that his correct date of birth is January 20,

1943, rather than 1942. He is married to Louise Scavone, 514 Ocean

Parkway; Brooklyn, New York, and has one child. At present he is in

protective custody as a materiai witness io the murder vi Jaines Nagi,

June 17, 1974..

Prior to custody he resided at 275 Webster Avenue,

Brooklyn, New

York,

The interview began at 10:39 a.m.; he was placed under oath at

•10:44 a.m. He signed the statement at 3:43 p.m., and the interview was

terminated.

NMV 68252 Docld:32989576 Page 84_

17i

---

## Page 85

FU-JUZ IKEV

¿DERAL BUREAU OF INVESTIGATION

Date of transcription.

May 5, 1975

Mr. Guillermo Sowers, born January 20, 1943, at Havana, Cuba,

was nerviewed at Borough Hall, Brooklyn, New York, by Edward D. Hegarty and

Clark f. Brown. During the interview Mr. Sowers sald thathe was associated with

George Tropiano and William Cutolo during the period April, 1972, until

September, 1972, and the period from January, 1974, to November, 1974. During

these periods William Cutolo said that he and George Tropiano had a connection

with a person named "Adams" whose first name Sowers believed was "Steve"

who was employed by the "Treasury Department." Cutolo claimed "Adams" was

furnishing him and Tropiano with information and that often the information furnished.

by "Adams" cost as much as $5,000.00.

Interviewed on April 30, 1975.

o Brooklyn, New York

Inspector Clark F. Brown and Supervisor

by Edward De

Hegarty wmj

_File, #

__ Date diciated

May 5, 1975

This document contains neither recommendalions nor conclusions of the FBl. ll is the properly of the FBI and is loaned la your ogency:

il and ils contenis are not lo be distribuled oulside your agency.

8

-AW. 60262 Docld:32989516. Page 85.

19

---

## Page 86

FD-302 (REV, 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription_ 5/16/75

MI. GUILLERMO SOWERS

was interviewed at the New York Office

of the Federal Bureau of Investigation, 201 East 69th Street,

New York, N. Y. 10022. At the outset of the interview, both

Sgecial Agent Pearce and Special Agent Rohr identified themselves

as Special Agents of the FBI.

Then Special Agent Pearce advised

SOWERS that the purpose of the interview was to question him in

detail about any knowledge that he may have regarding any member

of the Federal law enforcement establishment being connected

with any criminal group operating in the City of New York. Mr.

SOWERS then furnished the information set out below:

SOWERS was born in Havana, Cuba, leaving there for the

• United States in 1959 in order to take up permanent residence in

• Miami; Florida. In 1961, he joined the U. S. Marine Corps

and

was discharged honorably on November 16, 1963.

From his

last duty station in Quantico, Va., he returned to Miami, where

he remained for several years working in various supermarkets.

In 1967, he left Miami and went to New York City. There he again

began working at various jobs and different supermarkets.

197 1

• while he was so employed he met an Associated Foods

trück driver named ANDY CARLISI. CARLISI and

• SOWERS soon worked

out a scheme whereby they would leave a certain number of cases

containing groceries un CARnISI's truck at the time of delivery:

CARLISI then sold these cases and divided the profit with

SOWERS. In addition to this scheme, SOWERS and CARLISI had

method whereby they were able to defraud the off-track betting

company for several thousand dollars every week.

At some point during their association, CARLISI told SOWERS

about his friends BILLY CUTOLO and GEORGE TROPIANO, Who CARLISI

described as members of the COLOMBO "family" of La

Cosa Nostra (LCN).

•In early April CARLISI arranged to introdúce SOWERS to WILLIAM CUTOLO.

The introduction was made at the cocktail lounge of the Leader

Bowling Alley on Coney Island Avenue and 18th Street, Brooklyn, N.Y.

Present at this meeting were WILLIAM CUTOLO, ANDY CARLISI and

SOWERS.

Also in the lounge, but not participating in the meeting, were

three other people identified to SOWERS as JIM NAGI, ANTHONY

VILLEROEL and NAGI's girlfriend. At this time, SOWERS was employed

as the manager of a supermarket in Coop-City, Bronx, New York.

Interviewed on

_5/14,15/75

- New

supervisor J. ROBERI PEARCEl tark

by KCR: DJG

and Special Agent KLAUS. C. ROHR

_Filé *

58-1854

Date diotated

5/16/75

This document contains neither recommendations nor conclusions of the FBl. It is the property of the FBl and is loaned to your agency;

it and its conterits are not to be distributed outside your agency.

-NV-68262-Doeld 32989576-Page 86

---

## Page 87

CUTOLO proposed that SOWERS provide him with enough information

of the operation at this store so one of CUTOLO's men could hold up

the cashier when there was a large quantity of money in the

cashier's office.

SOWERS provided CUTOLO with the necessary

information and

then demanded to be given $10,000.00 in advance

for any cooperation in the planned holdup. At one of more meetings

held after tis one, SOWERS was introduced to CUTOLO's boss

GEORGE TROPIANO.

This meeting took place at the Burger Prince

located on 65th and 8th Avenue,. Brooklyn, New York.

On none

of these meetings was the holdup and SOWERS demand for $10,000

discussed. On April 19, 1972, JIM NAGI and ANDY VILLEROEL held up

the supermarket where SOWERS was working and escaped with over

• $20,000.00.

Subsequent to this holdup SOWERS went to the Burger Prince

at 65th and 8th Avenue, Brooklyn; N.Y., and demanded his share

of the holdup from GEORGE TROPIANO.

TROPIANO told him that

the money had already been split and that there was nothing left

for him. TROPIANO did extend an invitation to SOWERS that he

join his group and participate in further jobs with them.

SOWERS had been fired by the supermarket and was now unemployed

he agreed to join TROPIANo's group.

Shortly after this meeting, SOWERS also learned that NAGI

had only turned $16,000.00 of the money robbed from the super-

market over to CUTOLO, and TROPIANO. Out of this $16, 000.00, NAGI

was given a cut of $2,500.00. SOWERS did not know if either

CUTOLO Or TROPIANO were aware that NAGI and VILLEROEL had held

out about $5,000.00 on them. .

At the time that SOWERS joined the TROPIANO grOUp he impersonated

PETE CATENA, nephew of GERRY CATENA, an LCN leader.

CUTOLO

and TROPIANO made inquiries about him and then accepted him

in their group.

This took place sometime in early June 1972.

After SOWERS had been accepted in the group, NAGI, CUTOLO and

TROPIANO and SOWERS were standing outside the Burger Prince,

when NAGI began complaining about a problem he was having with

the law in New Jersey. • NAGI said that the problem arose out of

an arrest some time ago for hijacking, robbery and possession of

a weapon. NAGI aSKed CUTOLO and TROPIANO 1I they coula do

• something for him in this matter. Specifically, NAGI wanted to

know what was going on in the case.

CUTOLO turned to TROPIANO

and asked him, "What about our friend? You know Joe, the Fed.

Maybe he can help". TROPIANO told CUTOLO that he would see what

he could do and then went into the Burger Prince to use the

public telephone located there. CUTOLO, NAGI and SOWERS also

went into the Burger Prince.

CUTOLO went behind the service counter

while NAGI and SOWERS remained on the other side.

10

NW 68262 Docld:32989576 Page 87

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## Page 88

After TROPIANO finished his telephone call, he had a short private

conversation with CUTOLO and then went outside.

CUTOLO came back to

where NAGI and SOWERS were standing and took out his wallet. from

the wallet he removed a small card, about the size of a regular

business card. Then he picked up a napkin and wrote the name JOSEPH

STAMBILE OL JOSHPI STABILES aS well as a telephone number on this

napkin. CUTOLO used a black felt tipped pen to write down the name

and numbers.

Some of the letters in the last name ran together when

they were written on the napkin.

After CUTOLO had finished writing

the name and the telephone number, he handed it to NAGI and told him

to call this guy and arrange to meet him somewhere where they can't

be observed. NAGI would then have to explain his problem to this

person and perhaps this individual could help him. • SOWERS in answer

to specific questions stated that he did not know if a meeting

• that a meeting took place.

The only reason he knew NAGI had a

problem with a case in New Jersey was because NAGI said so. In

answer to a specific question, SOWERS said that this was the only

occasion that the complete name (JOSEPH STAMBILE OE JOSEPH STABILE)

used. SOWERS said that thereafter, when talking about

their alleged contact, CUTOLO Or GEORGE TROPIANO would use the name

JOE.

The Fed, JOE STUBS or similar name. They never used JOE singularly

as there were a lot of JOES involved in the CUTOLO-GEORGE TROPIANO

operation.

SOWERS assumed that CUTOLO, TROPIANO OF JIMMY NAGI, when

referring to JOE The Fed or JOE STUBS mEant JOSEPH STAMBILE OL JOSEPH

After joining TROPIANO's group, SOWERS was put to work as the

driver for a hijack group operating primarily in the Brooklyn area.

Included in this group were NAGI, VILLEROEL and CARLISI.

Prior to

taking off on what was either the second or third job in which he

participated, CUTOLO furnished SOWERS with, a list of cars, trucks, and

license numbers used by Federal law enforcement agents:

When CUTOLO

gave SOWERS this list, SOWERS and the others were in the Burger Prince.

CUTOLO produced the list from his wallet and copied it on a napkin

which he then gave to SOWERS. The list contained the descriptions

of three cars and two trucks, as well as the license numbers.

The.

cars were listed as a blue Ford, green or brown Plymouth and

blue Dodge, all with New. York State license tags.

One truck was

described as an old telephone truck painted black, the other was

a white truck with Emery Air Freight painted on the side.

trucks also had New York license plates.

CUTOLO bragged that he

had obtained

this list from his friend JOE The Fed and then told

SOWERS that he should be alert for these cars when going out on any

hijack job. When he was in the car en route to the hijack job,

SOWERS gave the identities of these cars and trucks to the other

men in his group and

asked them to beon the lookout for these

particular vehicles.

11

NW 68262 Docld:32989576 Page 88

---

## Page 89

CUTOLO and TROPIANO sold a lot of the hijack loads that they

had to a fence named GREGG SCARPA. SCARPA operated a discount

store on 76th and 13th Avenue, Brooklyn, N.Y.

During 1972,

SOWERS met SCARPA at his store on three different occasions.* At

each of these meetings SOWERS was in the company of GEORGE TROPIANO.

At one such meeting, which concerned itself with a load of liquor

from Montreal, a man dressed in a business suit came into the

store in order to talk to SCARPA. The man, who came in to see

SCARPA was a white male in his late 30s and gave the impression

of being some type of law enforcement officer. On several other

occasions when TROPIANO had to see SCARPA, SOWERS drove him to

the store but was told to remain in the car while TROPIANO met with

SCARPA.

SOWERS continued to work for CUTOLO and TROPIANO until the

end of 1972, when he broke away from them.

In January 1974,

JAMES. NAGI contacted SOWERS and told him that he had been given

a contract by CUTOLO and TROPIANO to kill SOWERS. In order to

avoid being killed by NAGI, SOWERS went to see CUTOLO and TROPIANO

in order to ask for another chance and to find out why the order

to execute him had been given.

TROPIANO and CUTOLO did not

explain why he was to be killed but did take him back into their

SOWERS continued to work for CUTOLO and TROPIANO throughout

1574 and eventually became the leader of his own criminal group

under the supervision of CUTOLO and TROPIANO.

As soon as he began working for CUTOLO and TROPIANO, CUTOLO began

telling him about his connection JOE The Fed. In March of April 1974,

TROPIANO, who had

a problem relating to a current court case, wanted

to find out what was going to happen in this case and told CUTOLO

in front of SOWERS that he would have to go see JOE The Fed, in order

to find out what's going on.

As a rule when CUTOLO and TROPIANO talkea

about this connection they either called him JOE, JOE The Fed or JOE

STUBS. It was SOWERS impression that in this conversation and in

paper given to NAGI by CUTOLO in 1972.

.

In 1974, CUTOLO and TROPIANO were involved in a smuggling opera-

tion where they smuggled cigarettes and liquor into New York from North.

Carolina. Part of the liquor was sold in New York City, while another

part was sent to a buyer in Bridgeport, Conn. This buyer cheated

CUTOLO and TROPIANO out of $45,000.00 in the sale of this liquor.

SOwERs was sent to Bridgeport in order to speak with this individual

and to recover CUTOLO's and TROPIANO's money.

Prior to the time

that he was going to Bridgeport, SOWERS vas asked by CUTOLO to tell him

when he was going to Bridgeport because he, CUTOLO, wanted to go with

him because he could go to see JOE The Fed in Boston, Massachusetts.

Also about this time in early 1974, TROPIANO and CUTOLO came up

with

a scheme to shake down one of the men who was buying the liquor

they were smuggling into New York City. In order to carry out

12

-N.68262-Docld:32989576 Page 89.

---

## Page 90

this shakedown scheme, SOWERS and several other men

were to pose as police officers and demand that the men pay

them for their silence in the smuggling case. CUTOLO Or TROPIANO

furnished SOWERS with a small box containing a bag in which were

five police shields,

four police ID cards

and two sets of FBI

identification cards.

The FBI identification cards consisted

Of two parts that folded, one over the other. One side of the

cards had the blue letters FBI printed on it.

The other side

had U.S. Department of Justice printed on it in smaller blue

letters.

Neither CUTOLO, nOr TROPIANO ever told SOWERS where they

had obtained the badges and identification cards.

After he

had received these badges and identification cards,

SOWERS began to carry a police badge and identification card

• on his person until he was stopped by the police.

pontificatiot da tame, he

had to throw the identification card and badge away in order to

avoid an arrest for impersonating a police officer. Shortly

after this, TROPIANO told SOWERS to return the badges and

identification cards because the shakedown deal was off. JIM NAGI

found out about these badges and

identification cards because

SOWERS showed him the badge and identification card that he was

using.

In May, 1974, NAGI approached SOWERS and asked him

for the badges

and identification cards, which he needed to pull

a shakedown job of his own.

SOWERS told him that he could

not give him these baäges

and identification

caras because

GEORGE TROPIANO had already taken them back.

•From NAGI, SOWERS also got the impression that he, NAGI,

had been in touch with JOE The Fed, because NAGI told him that he

would have to go see JOE The Fed in Boston, Massachusetts.

SOWERS was not told why NAGI would have to contact JOE The

Fed

at Boston, Massachusetts.

and NAGI, SOWERS

pay off law enforcement officials who were cooperating with and

furnishing information to CUTOLO and TROPIANO. NAGI told

SOWERS that he tape recorded a number of these pay-offs and

was using the recordings a a blackmail tool against the police

official who was being paid off.

SOWERS was also told by CUTOLO

that JOE The Fed or JOE STUBS was being paid one to five

thousand dollars per month depending upon the quality and amount

of information he furnished.

13

NW 68262 Docld:32989576 Page 90

---

## Page 91

On June 15, 1974, a short time after NAGi had been

arrested by the Nadjari Commission, TROPIANO came into the Burger

Prince and tola CUTOLO and SOWERS that he had just received a

telephone call from

one of his connections.

This individual

told him that NAGI had made a deal with NADJARI and was going to

reveal all of=their law enforcement connections to NADJARI.

TROPIANO also told them that they could not afford to let this

happen and that he had received a green light to kill NAGI

at once.

After NAGI had been killed, SOWERS asked TROPIANO why

he had acted so hastily without ever giving NAGI a chance to

square himself. TROPIANO told SOWERS that it just had to be

done in this way. At this time TROPIANO also told SOWERS that

he would have to call JOE in Boston and tell him that everything

was alright.

After the NADJARI incident, CUTOLO and TROPIANO told SOWERS

that they had been called on the carpet for allowing NAGI to meet

and pay their law enforcement connections.

Now all the law

extorcement connections, as well as the blackmail efforts

against them, was to be

handled by an attorney ALBERT ARRONE.

During the year 1974, CUTOLO engaged in a number of

conversations in which CUTOLO freely talked about his connection

JOE The Fed. In one conversation, he said that JOE was taken

out of town

and couldk't be contacted here anymore.

However,

JOE would now be working with Whitey Tropiano's men in Bridge-

port and New Haven.

CUTOLO also told SOWERS that JOE STUBS Or

JOE The Fed was originally a connection for GREG SCARPA, JOE LANE

and an individual known as DUTCHIE. In July 1974, M00SRS was

present when TROPIANO held a meeting with CHARLIE

PANARELLA at the Sheepshead Bay Athletic Club. CHARLIE wanted

to have some information about a bug that he suspected had

been planted either at his house or some place that he frequented.

TROPIANO told PANARELLA that he could check this out with his

friend JOE.

On another occasion in 1974, CUTOLO and TROPIANO, as well

as SOWERS were in the Red Manor at 60th and Ilth Avenue; Brocklyn,

New York.

CUTOLO began talking about a JOE with IROPIANO,

when TROPIANO asked him which JOE he was talking about. CUTOLO

then told TROPIANO, "You know, our friend Joe The Fed, Joe Stubs".

14

NW 68262 Docld:32989576 Page 91

---

## Page 92

• • ...

The only name they used

to describe their Federal law enforcement connection was JOE

JOE The Fed, or JOE STUBS. Other than the above 3 individuals,

no one ever discussed JOE The Fed, or JOE STUBs with SOWERS.

The Fed to Defective NULTY of the New York City Police Department

furnished this information.

SOWERS was given a napkin and black felt tipped pen by

Special Agent Rohr and asked to write the name that he had

seen WILLIAM CUTOLO write on a napkin for JAMES NAGI in 1972.

SOWERS then wrote the name (JOSEPH STABILE, JOSEPH STAMBILE an

JOSEPH STATILE on a paper nagkin.

To the best of his recollection

SOWERS stated 'that the name (JOSEPH STAMBILE)is what he actually

saw CUTOLO write on the napkin.

15

NW-68262-Đocld:32989576 Page 92 -

---

## Page 93

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/16/75

Date of transcription

On May' 14, 1975, GUILLERMO SOWERS was shown a spread of

photographs from left to right in the following sequence by

Supervisor J. Robert Pearce and Special Agent Klaus C. Rohr:

=

AUGUST J. MICER

JOHN J. AHERNE

JACK H. LUPTON

ROBERT J. LA VERE

ANTHONY R. VILIANO

"JOSEPH STABILE

NORTON A. LEE

ERNEST A. HARIDOPOLOS

LOUIS R. HAHN

NORMAN A. MURRAY

R. S. MC ALLISTER, JR.

DENNIS LACINA

SOWERS, after careful study of these photographs, advised

that, he could not identify any of these people as persons known

to him or persons he has

seen previously. SOWERS said that he

considered himself "good" in selecting photographs of people he

has identified.

SOWERS was next shown photographs of eleven individuals

identified as follows;

THOMAS DI BELLA

CARMINE PERSICO, JR.

GEORGE TROPIANO

CHARLES PANARELLA

•VINCENT ALOI

JOSEPH BRANCATO

ANTHONY ABBATEMARCO

JOSEPH YACOVELLI

NICHOLAS J. FORLANO

GREGORY SCARPA

WILLIAM CUTOLO

Interviewed on 5/14/75

supervisor i lobert pearce so York.

by -

and Special Agent Klaus "C. RohrHa

_File #

58-1854

_Dase dictated 5/16/75

• This document contains. neither recommendations nor conclusions of the FBl, It is the property of the FBl and is loaned to your agency;

'and its contents are not to be distributed outside your agency.

NW. 68262 Docld:32989576 Page 93

16

80.

---

## Page 94

Of-these. Il photographs he selected the following

individuals as persons that he knew:

VINCENT ALOI

THOMAS DI BELLA

CARMINE PERSICO, JR.

GEORGE TROPIANO

CHARLES PANARELIA

: WILLIAM CUTOLO

He. was asked if he knew an individual named GREGG Or

GREGORY and thereafter pointed to a photograph of GREGORY

SCARPA and Identitled this photograph as GREGG SCARPA.

He did not identify photographs of JOSEPH BRANCATO, ANTHONY

ABBATEMARCO, JOSEPH YACOVELLI and NICHOLAS J. FORLANO.

17

NW 68262 Docld: 32989576 Page 94_

---

## Page 95

FD-302 (Rev: 1126-4.

FEL

BUREAU OF INVESTIGATIO!

May 15, 1975

Date of transcription

During the period of time GUILLERMO SOWERS

was present on the premises of the New York Office of the FBI,

"201 East 69th Street, New York, New York, he was requested to

listen to a magnetic voice recording tape, bearing the label,

"Nagra

Tape Copy, Det. Nulty - Bartels, Sour Supermarket,

10/17-18/74, 2245-0100 hrs.-#2".

Specifically, he was requested

to listen to a portion of the recorded conversation between

Detective JOHN NULTY and himself, SOWERS, which specific portion

of the conversation is set forth on page-three of the conversa-

tion transcript, bearing the caption

"Nagra #2, 10/17/74 - 2,245

through "who do they know in these precincts that you just

mentioned, the 61 and 70"".

Mr. SOWERS was asked if the transcript portion, which

states "uh, organized crime - indirectly, directly it will be

Joseph (inaud.) friends" was correct, and he said that it was not,

"that this portion of the conversation spoken by him, SOwERS, should

read in the transcript, "uh, organized crime - indirectly,

directly it will be Gorge Propiano's friends".

Interviewed on

by

5/14/75

New York, New York

File #

INSPECTOR CLARK E. BROWN and

SUPERVISOR EDWARD D. HEGARTY - EDE/nigh

GARTE - EDEnis Dare dictorod -

NY 58-1854

5/15/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

18

WW 68262 Docld: 32989576_Page 95

80

---

## Page 96

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dato of transcription -

5/16/75

MI. GUILLERMO SOWERS was interviewed at the New York Office

of the Federal Bureau of Investigation, 201 East 69th Street,

New York, N. Y. 10021.

At the time of his interview he furnished

the following information.

In 1974, SOWERS was associated with two individuals known

as WILLIAM CUTOLO and GEORGE TROPIANO. In conjunction with these

two men, SOWERS engaged in a cigarette and liquor smuggling opera-

tion in which they smuggled cigarettes, as well as liquor,

from North Carolina to New York and Bridgeport, Connecticut.

SOWERS often aoted as the driver of the panel truck used to bring

the cigarettes from either Raleigh or Durham,.

N.C. to New York.

Upon arriving in New York, the truck was parked in a parking lot

at Pennsylvania and Flatland Avenue, where it was then picked up

and brought to another location by other individuals, not known

to SOWERS.

From CUTOLO and TROPIANO, SOWERS learned that the cigarettes

were then stamped with the New York Tax Stamp and sold through a

• vending machine company in New York.

CUTOLO also told SOWERS that they had a law enforcement

connection in the Treasury and Tax Department named STEVE ADAMS,

who told them whai route they should use when seturning with the

cigarettes in order to avoid New York' State Tax Agents.

CUTOLO

also told SOWERS that ADAMS was paid regularly for this informa-

tion, which was a great, help to them in their secret smuggling

operation.

5/15/75

_File # 58-1854

_Date dictated.

5/16/75

KCR: DJG

This document contains neither recommendations

nor conclusions of the FBl. It is the property of the FBI and is loaned to your agency;

it and its contents are not to be distributed outside your agenc

19°

NW 68262 Docld:32989576 Page 96

---

## Page 97

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dale of transcription.

May 5, 1975

Deputy Inspector John Nevins, Brooklyn District Attorney's Squad,

was contacted at Borough Hall, Brooklyn, New York, by Edward D. Hegarty and

Clank F. Brown who identified themselves as representatives of the FBI

Inspection Division, Washington, D. C.

Inspector Nevins was asked if he, as a result of his contacts with

Guillermo Sowers or with officers in his command familiar with Sowers had

obtained any information indicating corruption on the part of any employee of

the FBI and he said he has not. He was asked if he knows if there are any

indications of Federal law enforcement corruption on the tape recordings

"made by Sowers and he said that he has not received any indication of this

"from his men.

On May 2, 1975, Inspector Nevins. made available for review

miscellaneous papers and address books given to the District Attorney's Office by

Mrs. Linda Nagi. These documents were reviewed and Xerox copies were made

of most of the material. A photocopy of a white, lined piece of paper 8"' * 10 1/2"

bearing, in part, written inscription "535-7700," was made.

Interviewed on_

May 1, 2, 1975 Brooklyn, New York

Inspector Clark F. Brown and

by Supervisor Edward D. Hegarty wmj

_ File #

_Date diciated...

May 5, 1975

This document contains neither recommendations nor conclusions of the FBI, Il is the property of the FBi and is looned lo your adency;

it and its contents ore-not lo be distributed oulside your agency.

20

NW 68262 Docld:32989576 Page 97

a0!

---

## Page 98

FP-302 ([ev. 11-27-70)

FELERAL BUREAU OF INVESTIGATION

, May 12, 1975

Date of transcription

Detective JOHN W. NULTY, Senior Special Investigator,

State of New York, Department of Law, Special Prosecutor for Health

and Social Service, was interviewed on the 5th Floor of Borough Hall,

Brooklyn, New York.

Prior to the interview. EDWARD D. HEGARTY and

CLARK E. BROWN identified themselves as representatives of the

FBI Inspection Division, Washington, D. C.

Detective NULTY advised, in response to a direct

question, that at no time while he was working as a New York City

Police Department detective, assigned to the Brooklyn District

Attorney's Office, did he ever receive any indication whatsoever

from GUILLERMO SOWERS that SOWERS had in his possession information

alleging improper conduct or unlawful activity on the part of any

member of any Federal Law Enforcement Agency, including the FBI.

Detective NULTY was

referred to a transcript prepared

by the Brooklyn District Attorney's office setting out in verbatim

a dialogue which, in part, is between GUILLERMO SOWERS and Detective

NULT and is based upon conversations recorded by magnetic voice

recording tape on October 17, 1974.

The pertinent portions of the

transcript read (contents of conversation relate to proposed robbery

of à Shop-Rite Store) :

"NUITY

O.K., is there anybody else involved in this.

SOWERS.

Far as

my knowledge, he will be a couple of

detectives from Robbery Squad, Brooklyn South,

Robbery Squad will handle it,

how its gonna be

handled it was then, its gonna be actually through

the top.

NULTY

Who will make the arrangements on this?

SOWERS

I assume this arrangement are gonna be by uh, made.

by George Tropiano.

NULTY

But you really don't know?

SOWERS

Uh, I have my word they will be rearranged Saturday.

Interviewed on

5/12/75

at

Brooklyn, New York

INSPECTOR CLARK F:

BROWN

and.

SUPERVISOR EDWARD

by

HEGARTY - EDH/mgh

_ File #

NY 58-1854

Date dictated

5/12/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

21

NW 68262 Docld:32989576 Page 98

---

## Page 99

NY 58-1854

•

"NULTY

SOWERS

-NULTY

SOWERS

NULTY

SOWERS

NULTY

SOWERS

NULTY

SOWERS

NULTY

SOWERS

NULTY

All right.

And uh

Is there anything else you want to say

about that.

Yeah uh, I assume the uh part of a conversation

as its transcribed today, this afternoon,

previous conversation that I was in (inaud.)

and have control of Precinct 61, Precinct 70.

Who has control of the 61 and 70.

Uh, organized crime - indirectly, directly

it will be Joseph (inaud.) friends.

Who do they know in these precincts that you

just mentioned, the 61 and the 70.

Captains 61 and Captain. 70, (inaud.) 70 and

Sergeants of

a Precinct

• 61. How deeply involved they will get they

will get I don't know, but maybe as a special

favor they will ask em to send patrols to

different directions (inaud.) patrol at the

time of the robbery to certain other directions,

also

• a party - .

Who told you this.

uh, I was told by uh, by the higher echelon

of my --

Who's the higher echelon

The higher echelon in this particular case

is Tropiano (inaud.) and Cutola.

o.K. :

NULTY advised that during the morning of May 12, 1975,

he saw SOWERS and SOWERS said with respect to the transcript that

the above "JOSEPH (inaud.) friends" is a reference to "the Fed" who

22

NW 68262 Docld:32989576 Page 99

92!

---

## Page 100

NY 58-1854

was working with BILLY CUTOLO. NULTY then played back the pertinent

portion of the magnetic voice recording tape containing the above

conversation and after listening carefully he concluded that the

portion "JOSEPH (inaud.) friends" should correcity have been trans

cribed as "GEORGE TROPIANOS friends". Detective NULTY said that

subsequent to the discovery of the remains of JAMES NAGI On

June 25, 1974, he became involved in the investigation into NAGI's

He, NULTY, worked with Detective GEORGE COUSTAKIS, First

* September 17, 1974, which date Detective NULTY recalled by

referring

to a diary maintained on his person, COUSTAKIS and NULTY picked up

GUILLERMO SOWERS for questioning regarding the NAGI murder. Sub-

sequently, on September 18, 1974, SOWERS initiated contact with the

New York City Police Department and agreed to cooperate. During the

ensuing months, NULTY worked closely with GUILLERMO SOWERS in their

investigation of the NAGI murder and other criminal activity.

Detective NULTY was asked if he was personally acquainted

or had ever heard of the former New York City Police Department

Officers, JOSEPH SCHIFFINO Or EUGENE, STATILE, and he replied no.

_ NW 68262 Docld:32989576 Page 100.

23

---

## Page 101

FD-302 (Rev. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription.

May 20, 1975

MrS. GUILLERMO SOWERS was interviewed in her

apartment, Apartment 5A, 514 Ocean Parkway, Brooklyn, New York,

telephone number 436-7925.

Prior to the interview, EDWARD D. HEGARTY

and CLARK F. BROWN identified themselves as representatives of the

FBI Inspection Division, Washington, D. C. SA FORD W. COLE was known

to Mrs. SOWERS as a Special Agent of the FBI as a result of a prior

interview.

Mrs! SOWERS was told the purpose of the interview

. was to determine if she was ever told or received any indication from

her husband that he had knowledge indicating that a member of a Federal

• Law Enforcement Agency, including the FBI, was conducting himself in

an improper or in an unlawful manner. She said that her husband

rarely ever discussed his activities or his associates with her, and

that he definitely never did indicate to her or tell her that he had in

his possession any information indicating improper or unlawful conduct

on the part of any Federal Law Enforcement Officer.

Mrs. SOWERS spontaneously injected that she met her

husband in 1971 while he was working at a supermarket. She, at that

time, was a divorope and began dating GUILLERMO SOWERS. He told her

that he was Italian, having been born at Milan, Italy. Subsequently,

she entertained GUILLERMO SOWERS at her home and introduced SOWERS

• to various members of her family.

In conversing with her family members,

he told each of them that he was

Italian and was born in Milan, Italy.

When they applied for a marriage license, he stated on the application

that he was born in Milan, Italy.

Subsequent to her marriage, she learned that he was not

Italian and was not born in Milan, Italy, but is a Cuban, having been

born in Havana, Cuba. She stated that she told this to her mother,

who is very dissatisfied with her husband GUILLERMO, because he liec

to her, Mrs. SOWERS and to members of Mrs. SOWERS' immediate family.

She was asked if her husband gave her any other indications of deceit-

fulness and she said that occasionally she has suspected that he was

withholding money from her and on some occasions she was of the belief

that he was

somewhat "snéaky."

She said that her husband had no

close associates, although he was frequently contacted by BILLY CUTOLO

telephonically.

5/16/75

Interviewed on

_at

Brooklyn, New York

INSPECTOR CLÄRK F. BROWN, SUPERVISOR

EDWARD D. HEGARTY

& SA FORD W. COLE

by EDH/mgh

NY 58-1854

_ File #.

5/19/75

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

24

NW 68262-Docld:32989576 Page 101

---

## Page 102

FE

BUREAU OF INVESTIGATIOI.

May 20, 1975

Date of transcription -

Transcripts of conversations recorded on

magnetic voice recording tape by members of the Brooklyn

& Prosecutor's Office, on occasions when GUILLERMO SOWERS WaS

wearing a concealed

recorder were reviewed. There are no

statements or indications in these transcripts to the effect

that SA JOSEPH STABILE for any other employee of the FBI

has comported himself in either an improper or unlawful

manner.

5/19/75

New York, New York

Interviewed on

INSPECTOR CLARK F

SUPERVISOR EDWARD

File #

by

BROWN and

SCARTY - EDE/ngh

_ Date dictated

NY 58-1854

5/19/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBl and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

25

-NW:68262..Dockd:32989576. Page 102

=- 9,5!

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## Page 103

FD-302 (Rev. 11-27-70) •

FED

L BUREAU OF INVESTIGATION

Dote of transcription

May 13, 1975

WILLIAM

I. ARONWÄLD, Strike Force, Southern District

of New, fork, was contacted at his office, Manhattan, New York.

Prior to the interview, EDWARD D. HEGARTY and CLARK E. BROWN

identified themselves as representatives of the FBI Inspection

Division, Washington, D.C.

Present at the time of contact were

Strike Force Attorney MICHAEL EBERHARDT, Special Agent in Charge

THOMAS J. EMERY, New York Office and Special Agent FORD W. COLE.

Mr. ARONWALD was furnished for his review a copy

of a statement reported

on an FD 302

reflecting interview of GUILLERMO

SOWERS on April 30, 1975.

It was explained to Mr. ARONWALD that the FBI was

considering affording a polygraph

• examination to GUILLERMO SOWERS

and he interposed no objection.

• *

5/9/75

New York, New York

Interviewed on

at

INSPECTOR CLARKYF. BROWN and

SUPERVISOR EDWARD D. HEGARTY -EDH/mgh'

by -

NY 58-1854

File #

Date dictated -

5/13/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

26

NW 68262 Docld:32989576 Page 103

gp?

---

## Page 104

FD-302 (Rev. 11-27-70) •

FEDE

•AL BUREAU OF INVESTIGATION

May 13, 1975

Date of transcription.

• Mr. BARRY FRIEDMAN, Chief of Rackets Bureau, Kings

County District Attorney's Office, Brooklyn, New York,

was contacted

in his office, Borough Hall, Brooklyn; New York:

Prior to the inter-

view EDWARD D. HEGARTY and CLARK F. BROWN identified themselves as

representatives of the FBI Inspection Division, Washington, D. C.

Mr. FRIEDMAN

was advised that the FBI was considering

conducting

a polygraph

examination of GUILLERMO SOWERS.

Mr. FRIEDMAN

said that he had no objection to the FBI furnishing such an examination

to Mr. SOWERS.

• Mr. FRIEDMAN was asked if he had any objection to the

"FBI reviewing the polygraph tracings obtained during a previous poly-

graph examination afforded to SOWERS by DICK ARTHUR, New York, New

York,

on behalf of the Kings County Prosecutor's Office and he said

he had no

objection to such a review by the FBI.

Interviewed an _

-5/2215

of Braoklyn, New York

File #- NY. 58-1854

INSPECTOR CLARK FY

BROWN and

by SUPERVISOR EDWARD D. HEGARDY - EDH/mgh

-

Date dictated

5/13/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its .contents are not to be distributed outside your agency.

27

NW 68262 Docld:32989576 Page 104

---

## Page 105

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/12/75

Date of transcription

on 5/12/75, I telephonically contacted RICHARD ARTHUR,

Director, National Training Center for Polygraph Sciences,

11g9 Medical Arts Building, 57 West 57th Street, New York, N. I.

10019, PL 5-5241, to arrange for a review of polygraph charts

Of GUILLERMO SOWERS.

I informed Mr. ARTHUR, who is acquainted with Special

Agent Pearce, that the New York Office of the rBI had obtained

the approval of BARRY ERIEDMAN, Chief, Rackets Division,

Brooklyn, N. Y., District Attorney's Office, for the FBI

to review

these charts.

Mr. ARTHUR was also advised

that the FBI was not

' investigating the murder case involving SOWERS.

ARTHUR volunteered that he was furnishing information

"from memory", and believed that the polygraph examination of

SOWERS that he conducted was about 4 months ago.

He said that

he had jun SOWERS a second time because the Brooklyn District

Attorney's Office was so convinced that SOWERS was

"telling the

truthse.

ARTHUR was informed that information received by the

FBI was to the effect that SOWERS was telling the truth when he

placed himself in a confession at the scene of a murder.

ARTHUR indicated that his recollection was that the polygraph

examination indicated that SOWERS did more than place himself

at the scene. He said he never "liked the story" that SOWERS

contessed to. SOWERS,.

according to ARTHUR, claimed that he came

through a doorway, heard a shot, saw the victim fall, but woulo

not say that he saw the guy fire the

gun.

ARTHUR, early in the conversation, volunteered that it

was his opinion that SOWERS tempted to beat the polygraph.

His recollection was that SOWERS attempted to do this by altering

his normal breathing pattern, to show a breathing pattern of

approximately ten breaths a minute. Arrangements were made for

a physical review of these charts in question on 5/13/75 through

contact of ARTHUR's associate, GENE SAUDAZZ, as ARTHUR will be

absent from his office.

=

Interviewed on _

5/12/75

_at_

New York

_File # 58x1854

_Date dictared.

5/12/75

JRP: DJG

This document contains neither recommendations nor conclusions of the FBI. It is the proparty of the FBI and is loaned to your agency;

it and its contents are not to be distributed outside your agency

28

MW 68262-Dold:32989576 Page 105

98 :

---

## Page 106

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dato of transcription _

5/13175

On May 13, 1975, through arrangements made with

RICHARD ARTHUR, Director, National Iraining Center for

Polygraph Sciences, 1109 Medical Arts Building, 57 West

for review involving polygraph examinations of GUILLERiO

SOWERS.

There were two reports in letter form of approximately

one and one-half page indicating that SOWERs had been afforded.

an original polygraph examination on December 31, 1974 and

had been re-examined on January 9, 1975.

Both reports indicated that the main issue under

consideration in the polygraph examination was the truth

telling involving SOWERS when he made certain claims regarding

the murder of JAMES NAGI.

The December 31, 1974 report indicated that facts

of the murder and SoWeRs participation had been provided

to the polygraph examiners by ANGELO TONA and WILLIAM WAJESKI

of the Kings County District Attorney's Office.

Further,

that these individuals were present during the interview.

The polygen examiners were RICHAPD O. APTHUR and DORI J.

PEARL.

On December 31, 1974 reports indicated that SOWERS

had lied to the following questions:

1. "Did you shoot JIM NAGI?"

Answer: "No."

2. "Did you see GEORGE TROPIANO shoot JIM NAGI?"

Answer: "Yes."

The exact phrasing of the polygraph examination

opinion read,

'It is the opinion of the polygraphist basec

pon the examination of Mr. SOWERS that he has not probabli

told the entire truth of the above listed questions."

Interviewed on -

5/13/75

_at.

Supervisor d. Robert Fashu In

New lock,

New York

File #.

NY 58-1854

5/13/75

by.

_Date dictated

This document contains neither recommendations nor conclusions of the FBl, It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

29

NW 68252 Docld:32989576 Page 106

99 !

---

## Page 107

2

. NX 58-1854

Adaitionally:

the report indicated "slight" indications

of truth telling to the following questions:

1. "Did you see JIMMY NAGI get shot?"

Answer: "Yes."

2. "Did you see BILLY CUTOLO shoot JIMMY NAGI?"

Answer: "Yes."

The report advised that it was the opinion of

the polygraphist, based upon the polygraph charts, that

Mr. SOWERS, in regards to the above questions, was telling

the truth.

It went on and stated that this opinion must be

"restricted (limited) in that Mr. SOWERS was trying to

distort the polygraph readings. "

It was also indicated

that this distortion greatly interferes with the correct

diagnosis and chart analysis of lue polygrauh raceras.

The report of the "re-examination" of GUILLERMO

SOWERS in 1975 indicates again that ANGELO TONA and

WILLIAM WAJESKI, Kings County District Attorney's Office,

The same questions

following pertinent questions: .

I. "Did you shoot JIM NAGI?"

Answer: "No."

20

"Did you see GEORGE TROPIANO shoot JIM NAGI?"'

Answer: "Yes."

It was the polygraphist's opinion that SOVERS has

probably not told the entire truth to the above questions.

30

NW-68262-Doeld:32989576-Page-107

1001

---

## Page 108

3

NY 58-1854

=. Again it was reported there were "slight indications

of truthfulness when SOWERS was asked the following

questions":

1.

"Did you see jIM NAGI get shot?"

Answer: "Yes."

2. "Did you see BILL CUTOLD shoot JIM NAGI?"

Answer: "Yes."

Thereafter follows a paragraph indicating that the

polygraphist's opinion, based on a re-examination, was toat

SOWERS was telling the truth to the above questions.

Again it was indicated that both polygraph examina-

tions were conducted by RICHARD O. ARTHUR and DORI J. PRART.

It was also indicated that SOWERS had voluntarily.

signed a waiver to take both the original and re-examination.

A review of the charts in question showed that in

the fourth series, December, 1974, of questions sowers

deliberately attempted to alter his normal breathing pattern

by deliberately breathing at a reduced rate.

The efforts to

alter the polygraph charts are readily recognized.

This slowed

rate of breathing was not present in any of the other polygraph

bharts, and particularly it was noted it was not present during

the period when the polygraph examination as being initiated.

Subject at the time of instrument adjustment remains still

and no questions are being asked.

31

NW 68262 Docld:32989576. Page 108

1.0'

---

## Page 109

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/21/75

...: .. • Dato of transcription.

ANGELO IONA, Special Prosecutor, New York State Nursing and

Social Services, Investigations Unit, Room 973, Ellicott Square.

Building, Buffalo, New York, advised that while serving as an

Assistant District Attorney

for kings County, Brooklyn, N. Y.,

he had handled the homicide investigation of JAMES NAGI.

stated in connection with this investigation,

PETE SOWERS had

been developed as a possible.

. suspect due to his close relation-

ship with NAGI but that initial interviews with SOWERS had been

He said, however, that one Saturday morning

SOWERS came to him saying he wanted to cooperate since he felt

he was going to be arrested for NAGI's murder and also that

"he thought there was a contract out for him.

He said over a period of time from that day, SOWERS furnished

voluminous information concerning various planned crimes and

cooperated by meeting with various individuals connected with

these crimes while wearing a body recorder.

He said it was

some time before SOWERS discussed the NAGI homicide but eventually

did furnish them with sufficient information to place charges

against GEORGE TROPIANO and BILLY CUTOLO. He described SOWERS

as being the type of individual who had a great wealth of

information concerniny griminal activities of all sorts and.

that this information would be furnished by him piecemeal over

an extended period of time. He said that during the entire

relationship with SOWERS he had no reason to question his

credibility, stating in many instances they had been able to

completely verify information furnished by SOWERS concerning

criminal activities of various individuals.

He said one problem, however, he did encounter in dealing

with SOWERS was the fact that he tended to arrive at conclusions

crom certain information in his possession, which conclusions

were not based on fact.

He also stated that in evaluatino

SOWERS information one had to always assess the source of the

information SOWERS was privy to and that a lot of such information

was "street talk" which always wasn't factual.

He did verify

that SOWERS was recently arrested by the Rockville Centre,

h.I.! Police Department, on a gun charge, which as subsequently

dismissed.

Interviewed on

5/19/75

_at.

affalo, N. Y.

File #_

58-1854

by -

Supervisor Donald E. Hartnett fuy

DEH: DJG

_Date dictated._

5/21/75

This document contains-neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned to your agency;

• it and its contents are not to be distributed outside your agency.

32

NW 68262 Docld:32989576 Page 109

108

---

## Page 110

He said a great deal of information furnished by SOWERS

had in fact been verified in situations where SOWERS wearing!

a body recorder had. engaged individuals in conversation and

the information he had previously furnished had been verified

in these

taped conversations.

He advised that at no time had

to immediately bring this

Commission.

He did recall that SOWERS had mentioned at

one time that one o the naiviouals engagea in the Planning

of ä crime was a person named NORDOFF (phonetic) , whon

SOWERS believed had a son in the FBI but that SOWERS was not

personally acquainted with the son. He said on one occasion

SOWERS had. told him.about.a.corrupt.policeman.in.the. New York

City Police Department and that this information had immediately

been

furnished to the New York City Police Department.

TONA said one of the reasons NAGI had been murdered supposedly

• was that it became known on the

Street that he was

cooperating

with

the Nadjari Comnission.

He also described BILLY CUTOLO

as being a braggart, who fancied himself as a big-time hoodlum.

Ha said an example of this was the fact that they

• had been able

to establish that anytime CUTOLO was going out on

a score,, he

• would dress completely in black

with a white tie, tryiny to

give

the "Godfather" type image.

He described GEORGE TROPIANO as an individual, who supposealy

had

a reputation of being "well connected" in organized crime but

that he personally doubted this since auring the course of their

investigation they learned of an incident whereby TROPIANO went •

to an illegal gambling game to collect a shylock loan and had

been thrown out of the place by the manager of the game.

He said

that if in fact TROPIANO had been well connected this never

would have happened:

He stated he had no knowledge of any informa-

tion, which reflected possible connections between CUTOLO or

TROPIANO with any Federal agency. He doubted that they would have

any such connections.

He stated that the names

unknown to him.

(STARTLE MORESCe) I STATILE Were

33

NW 68262 Docld:32989576 Page 110

168%

---

## Page 111

FD-302 (Rev. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

May 21, 1975

Date of transcription

SA ARTHUR H. RUFFEIS, JR. was interviewed on the premises

of the New York FBI Office, 201 East 69th Street, New York City,

New York. Prior to the interview EDWARD D. HEGARTY identified

himself as a representative of the FBI Inspection Division at

. Washington, D. C.

SA RUFFELS was asked. how many times he had occasion to

personally converse with GUILLERMO SOWERS. RUFFELS replied that

from six toreight occasions he observed SOWERS on the premises

of Kings County Prosecutor's Office, Borough Hall, Brooklyn, New

York, andthat on two of these occasions he spoke with SOWERS;

once he was in the company of SA FORD W. COLE and on the second

occasion Deputy Inspector JAMES NEVINS, Brooklyn Prosecutor's

Office was present. On neither of these two occasions, when he

spoke with SOWERS, was there any discussion indicating SOWERS

was in possession of information or direct knowledge indicating

corruption on the part of any employee of the federal-Bureau of

Investigation.

At no time during either of these two conversations

was there any mention of (SA JOSEPH STABILE.)

Interviewed on - 5/21/75

SUPERVISOR EDWARD

_at _

New York, New York

D.

HEGARTY/mgh

_ File #_NY 58-1854

5/22/75

by

Date dictated

This document contains neither recominendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

NW 68262 Docld:32989576 Page 111

34

---

## Page 112

BACKGROUND MATERIAL, REGARDING GUILLERMO SOWERS

35

NW 68262 Docld:32989576 Page 112

---

## Page 113

EDH :mgh

-I,-

NY 58-1854

By communication dated April 25, 1975, the

St. Louis Division of the FBI, advised as follows:

A review on April 25, 1975, of the Military Records

on file at the National Personnel Records Center - Military, St.

Louis, Missouti, indicated the following information concerning

GUILLERMO SOWERS, USMC Service Number 500-02-06:

----

Name

GUILLERMO SOWERS

Also

• Known As

Willy

Date of Birth

January 20, 1942

Place of Birth

lavana, Cubi

SSAN

EK Act 5 (9) (2) 1D

Mother

AIDA R. JACIENTO, date of birth

unknown

Father

GUILLERMO SOWERS, date of birth,.

January 19, 1909

Both residing at 411 N.F: 29th Street

Miami, Florida, as of March, 1963

Other Relatives JORGE SOWERS, date of birth,

relationship

August 27, 1945

not known

411 N.E. 29th Street, Miami,Florida,

as of

September; 1961

MARTA SOWERS, date of birth 1945,

residing Havana, Cuba, as of

September 1961.

Alien Registration

12193169

Number

Education

Nov. 1960 to June 1961 - Gilford

College, location not shown, and

Richard J. Reynold High School,

location not shown

Character

References

BERNARDO CANTORNA, residing 142 N.D.

Street, Dalton, Illinois

BERTA FERNANDEZ, 715 Watson Avenue,

Winston-Salem, North Carolina

CUCA GATO, New York, New York

All references noted as of

September, 1961

36

2N14-68262- Docld:32989576- Page 113

100

---

## Page 114

NY 58-1854

-2-

Former addresses

Military Service

Disciplinary action

Languages

Character and

efficiency ratings

Psychiatric

Race

Height

Weight

Hair

Eyes

Scars

Photograph

January 1943

÷ January 1958

Havana, Cuba

January 1958 - November 1960

23xd & Biscayne, Miami, Florida

Nov. 1960 - August 1961

715

Watson Avenue

Winston-Salem, North Carolina

June 1961 - Sept. 1961,

1421 Collins Ave., Miami, Florida

Overlap in former addresses is

noted.

September 1961, 411 N.E. 29th Street,

Miami, Florida, address at time of

release from active duty in 1963,

411 N.E. 29th Street, Miami, Florida

Service Number 500 02 06

Entered active duty 11/16/61, at

Miami, Florida, honorably released

from active duty Nov. 15, 1063, at

Quantico, Virginia. Inactive duty

Nov. 16, 1963 to Nov. 15, 1967,

when honorably discharged

Non-judicial punishment

May 13, 1963, for disobedience

of order. Received 20 days restriction.

Non-judicial punishment

Sept. 16, 1963, for failuré to obey

lawful order (to remove privately

owned vehicle). Received 14 days

extra duty.

Speaks, reads and writes Spanish,

French, Italian and Portuguese

Passing to very good

No record of emotional instability or

psychiatric evaluation

White

6'1" '

•175

BrOwn

BrOWn

5" soar forearm

Available

37

NW. 68262 Docid:32989576 Päge 114

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## Page 115

EDH: mgh

-1-

NY 58-1854

By communication dated April 25, 1975, the

Miami Office of the FBI advised that the records of Immigration

and Naturalization Service, Miami, Florida, were caused to be

checked on April 24, 1975, and contained no information identifiable

with GUILLERMO SOWERS JACINTO, INS #A12-193-169.

The records of the Dade County Public Safety

Department were caused to be checked on April 24, 1975, regarding

GUILLERMO SOWERS JACINTO, their number 107195, FBI #945 238 D.

These records reflect that GUILLERMO SOWERS is a white male,

born

January 20, 1942, in Cuba, a naturalized American, 6'2", 175 pounds,

brown hair, brown eyes, 3-inch scar left forearm, residence 100

N.E. 193rd Street, occupation driver.

He was arrested on

July 31, 1967, based on a complaint sworn out by JOAN SOWERS. He

wastarrested for non-support.

This charge was dismissed on

October 2, 1967. On October 3, 196%, he was again arrested

and

charged with assault to commit murder. The charge was dismissed

because of lack of prosecutive merit.

The details of the arrest

were that subject was involved in a, domestic fight with his wife

at residence and shot her with a .38 caliber revolver. His

father is GUILLERMO SOWERS and mother AIDA JACINTO.

38

NW-68262-Doeld:32989576_Page 115

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## Page 116

FD-302 (Rev. 11-27-70) °

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

May 6, 1975

MISS VALERIE GREASON, Special Clerk, Federal Bureau

of Investigation, New York Office, checked the records of the

Imhigration and Naturalization Service, 20 West Broadway, New

York

City, and obtained the following information:

GUILLERMO SOWERS, INS File A12-193-169

Name

GUILLERMO SOWERS

Born

JACINTO GUILLERMO SOWERS

Race

White

• Sex

Male

Date of Birth

January 1, 1942

Place of Birth

Havana, Cuba

Height

6'2"

Weight

165 lbs.

Hair

BrOWn

Eyes

Brown

Social Security

JFK Act 5 (g) (2) (D

Received Information Unit:

September 13, 1972

Received Citizenship Bureau:

November 24, 1972

Address at time of Application:

1283 Newkirk Avenue

Brooklyn, New York

Stated that he could read, write and speak English.

Employment

May 1972 - November 1972

Operations Manager, Pergaments Stores,

2169 Ralph Avenue,

Brooklyn, New York

March 1972 - May 1972

#Assistant Manger, Riverway Coop Corporation

Bartow Avenue, Bronx, New York

Interviewed on

5/6/75

•at.

SPECIAL CLERK VALERIE GREASON/mgh

by

New York, New York

_ File #

NY 58-1854

5/6/75

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned lo

your agency; it and its contents are not lo be distributed outside your agency.

• 39

NW 68262 Docld:32989576 Page 116

189

---

## Page 117

NY 58-1854

• July 1971 - March 1972

Manager, Associated Supermarkets

1226 Liberty Avenue, Brooklyn, New York

November 1968 - July 1971

Manager

Bohack Corporation

,Metropolitan Avenue, New York City

January 1967 - November 1968

Front End Manager, Great Eastern Mills

Elmont, Long Island, New York

Criminal Record

FBI Number 9450238D

6/7/61

Arrested by Winston-Salem, North Carolina,

Police, one WILLIAM SOWERS, JR. #40010,

for auto theii.

6/23/51, SOWERS bound

Over

to Superior Court

•8/24/61

INS, Miami, arrested GUILLERMO SOWERS fOr

violation of the Immigration Laws. No

disposition

2/31/67:

Miami Public Safety Department arrested

GUILLERMO SOWERS for assault with intent to

commit first degree murder.

Also charged

with failure to support a minor child.

Both

counts dismissed for lack of prosecution.

• 10/18/68

WILLIAM SILBESTER SOWERS applied for a permit

from the Miami State Beverage Department.

LULA MOTLEY, Correspondence Clerk, Immigration and Naturaliza-

tion Service, 20 West Broadway, New York, New York, advised that

letters had been mailed to SOWERS, calling him in for citizenship

processing. On December 1, 1972, a letter was sent to 1283 New YOrK

Avenue, Brooklyn, New York, calling him to

appear on December 29, 1972.

Another letier was sent on January 17, 1973, to 1287 New York Avenue

requiring him to appear

on January 31, 1973.

Since these kiters

were never delivered to SOWERS, they were ieturned and are in the

files. SOWERS is still eligible for his citizenship processing.

40

t. -68262-Doclo:32989576 Page.117.

.110??

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## Page 118

INVESTIGATION CONDUCTED TO DETERMINE

WHETHER OR NOT THE FBI UTILIZED AN

EMERY FREIGHT TRUCK DURING SUMMER OF

1972 FOR ANY PURPOSES WHATSOEVER.

41

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---

## Page 119

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription.

May 6,

1975

Records maintained by the FBI's Voucher-Statistical Section,

Computer Systems Division, reflecting details of utilization of rental

"vehicles by the New York FBI Office were reviewed covering a period

from January 6, 1972, to September, 1974.

There is no indication in these records that a three quarter

truck, white in color, bearing blue lettering "Emery Air Freight,"

was used by our New York Office. Similarly, there is no record re-

flecting usage of a black telephone company repair truck.

Interviewed on May 6, 1975

_ Washington, D. C.

_File #

by

Special Agent Edward D. Hegarty:bhg

_Date dictaled

May 6, 1975

This document contains neither recommendations nor conclusions ol the FBi. Il is the property of the FBl and is loaned to your agency;

il and

its

contents are not lo be

distributed oviside your ogency.

42

NW 68262 Docld:32989576 Page 119

---

## Page 120

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/13/75

ALFRED J. LUCCHI, District Manager, Emery Air Freight,

Kennedy- International

Airport, Jamaica, New York, advised that

he Mas been District Manager for Emery Air Freight since 1970.

He stated that curing this period, his company had never loaned

any of its trucks to any law enforcement agency for any reason

whatsoever.

He said this information definitely would have come

to his attention in his present position and he assured that

it could not have happened without his knowledge. He advised that

several years ago, his company had been requested to paint numbers

on the top of their trucks by the New York Port Authority Police

as an aid for surveillance purposes should any of their trucks

become involved in a hijacking situation. LUCCHI advised that

"the company leased their trucks from Hertz Rental, 16301 Rockaway

Boulevard, Jamaica, New York, for a six-nonths period and that he

has known

from past experience, after returning the leased trucks,

Hertz apparently has had occasion shortly thereafter to rent the

trucks still bearing the Emery designation to other customers.

Interviewed on

5/12/75

Jamaica, New York

_Files #-

58-1854

Supervisors DONALD E.

HARINETT K

and RICHARD F. KEEFE

bY DEH: DJG

—_Date dictated

5/13/75

This document contains

neither recommendations nor conclusions of the FBl. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency

43

NW 68252 Docld:32989576. Page 120

113

---

## Page 121

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription-

5/16/75

JOSEPH LEMMO, District Comptroller for Hertz Corporation,*

163-01 Rockaway Boulevard, Queens, New York, stated he has been

employed in his present capacity for the company for a lengthy

period of time and is responsible for handling the rental

agreement between Emery Alr Freight and Hertz Corporation In the

New York City area.

He stated that Hertz Corporation leases

trucks to Emery Air Freight operating in the City of New York

and after a period of time these trucks are turned back to

Hertz Corporation by Emery Freight under the terms of their agree-

ment. He related that when these trucks are returned by Emery Air

Freight to Hertz Corporation that they are repainted and no longer

bear any of the colors or identification associated with Emery

• Air Freight trucks. He advised he is absolutely confident that

, no one in Hertz Corporation temporarily loaned or rented these trucks

at any time to any police agency while these trucks still bore

the blue and white paint and name of Emery Air Freight.

this by stating that the leasing agreement between Emery Air

Freight and Hertz Corporation is the largest contract hela by

Hertz Corporation and under no consideration would Hertz loan

any trucks bearing the Emery Air Freight designation since this

might possibly cause the contract to be terminated if any untoward

incident occurred in relation to an Emery Air Freight truck!

Interviewed on

5/13/75

_at

Queens, New York

FileS#.

58-1854

Supervisors Richard F.

by -

and Donald E. Hartnett u

Kpoten

. =

_Date dictated.-

5/16/75

REK: DJG

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency

44

_NVV 68262 Docid:32989576 Page 121

1id /

---

## Page 122

INVESTIGATION CONDUCTED IN EFFORT TO

DETERMINE WHETHER OR NOT THERE WAS ANY

ASSOCIATION WHATSOEVER BETWEEN JAMES

NAGI, WHO WAS MURDERED ON JUNE 17, 1974,

AND(SPECTAT AGENT JOSERH STABILE)

45

NW 68262 Docld:32989576. Page 122

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## Page 123

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dale of transcripiion

May 5, 1975

1

A review of the notations of names, addresses, telephone numbers

contained in the personal papers of James Nagi which were made available for

review by Deputy Inspector John Nevins disclosed no identifiable references to SA

Joseph Stabile by name, address or telephone number. (Stabile's telephone

number 661-3898, 14 Plymouth Street, Cambridge, Massachusetts; Baston Office

telephone number 742-5533; 516-864-1348 changed to 516-543-5422 in November,

1972, 66 Roxbury Drive, Commack, Long Island, New York; and confidential

«New York Office, telephone numbers were compared to Nagi documents with negative

results.. Telephone number 535-7700 is the published number of the Federal

Bureau of Investigation, U. S. Department of Justice, 201&. 69th Street, New

York, New York. - Telephone number 535-7700 was found on a piece of white

lined paper 8'' x 10 1/2"' and it was photocopied. This piece of paper also bears

the written inscription:

"U.S.: Department of Justice

Federal Bureau of Investigation

301 E. 59th St.

N. Y. C. NY 10021"

To the left of the inscription appears the word "seal, " The

inscription appears to have been copied from FBI letterhead stationery, which

bears the FBI seal.

.

Interviewed on_

May 2, 1975/

_o1_

Brooklyn, New York

Inspector Clark F. Brown and

by Supervisor Edward D. Megarty: wmj

____ Date dicrated.

File #

May 5, 1975

This document contains neither recommendations nor conclusions of the FBl. Il is the property of the Fel and is looned to your agency.

il and ils contents

ore

nol lo be distribuled oulside your ogene.

46

NW 68262 Docld:32989576 Page 123

two we

---

## Page 124

FD-302 (Rew. 11-27-70) •

FEDERAL BUREAU OF INVESTIGATION

Date of transcription.

May 13, 1975

Detective GEORGE COUTSAKIS, New York City Police

Department, was interviewed in an office located on the premises of

the, 13th Precinct, New York City Police Department, Manhattan, New

York.

Prior to

_the interview EDWARD D. HEGARTY and CLARK E. BROWN

identified themselves as representatives of the FBI Inspection Division,

Washington, D. C.

Detective COUTSAKIS was asked i during his investiga-

tion of the murder of JAMES NAGI he had received any information

indicating that anyone was in the possession of information alleging

improper conduct and/or unlawful activity on the part of any member

"of any Federal Law Enforcement Agency, including the FBI, and he

replied no. He was asked if during his conversations with GUILLERMO

SOWERS he received

any statement or indication from SOWERS alleging

improper conduct and/or unlawful activity on the part of any member

of any Federal Law Enforcement Agency, including the FBI, and he

replied no.

Detective COUTSAKIS said he was assigned

as the

investigating homicide detective when JAMES NAGI's body was recovered

on June 25, 1974.

During the course of his investigation he had

occasion to interview a number of NAGI's associates! including GUILLERMO

SOWERS. He spoke with SOWERS on two or three occasions and SOWERS

was uncooperative with him.. Based on his, Detective COUTSAKIS', inter-

views of SOWERs, he described SOWERS as a

"fantastic liar"

• He said

that subsequent to his interviews of SOWERS, he learned that SOWERS

has been and is now cooperating with the Prosecutor's Office, Brooklyn,

New. York, regarding the NAGI murder and other matters. During the

early stages of the murder investigation conducted by Detective

COUTSAKIS, Special Agents of the FBI, BRUCE, BROTMAN and JOHN GOOD,

contacted him and furnished him with information regarding NAGI'S

associates. It was his impression that NAGI had been an informant for

the FBI and probably for other law enforcement agencies, federal and

He stated hedid not have any definitive information as to what

specific law enforcement personnel were utilizing NAGI as an informant,

but he believes that possibly NAGI was an informant for the Drug

Enforcement Agency (DEA). He could not recall the specifics which led

him to believe that NAGI may have been an iformant for DEA. He also

believed that NAGI was possibly an informant for Detective

PHILIP SHEVLIN

5/12/75

New York, New York

NY 58-1854

- Interviewed on

INSPECTOR CLARK

F.

SUPERVISOR EDWARD

File #

D.

BROWN

and

HEGARTY - EDH/mgh°

5/13/75

by

_ Date dictated

This document contains neither recommendations nor conclusiors of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

47

NW 68262 Docld:32989576 Page 124

---

## Page 125

NY 58-1854

Sixth Precinct, New York City Police Department, who at one time had

arrested NAGI in a stolen art case.

~

During the course of Detective COUTSAKIS' investigation

he learned that New York State Parole Officer RICK GOLDSTEIN, telephone

• number 594-5800, Extension 248, was serving as NAGI's parole officer and

was in frequent contact with NAGI prior to NAGI's death.

He was asked if at any time during the course of his

investigation he came across a person named "ADAMS" Or "STEVE ADAMS"

and he said he did not.

He denied knowing former New York City Police Officers

EUGENE STATILE Or JOSEPH SCHIAFFINO.

Detective COUTSAKIS furnished a machine copy of a

NW 68262 Docld:32989576 Page 125

18

---

## Page 126

FD-302 (REV. 11-21-107

¿DERAL BUREAU OF INVESTIGATION

Date of transcription.

May 6, 1975

Special Agent John F. Good was interviewed in Room 602, Westbury

Hotel, 69th Street and Madison Avenue, New York, New York.

Prior to

& the interview Edward D. Hegarty and Clark F. Brown identified them-

selves as representatives of the FBI Inspection Division. Special Agent

Good was advised purpose of the interview related to whether or not

(Special Agent Joseph Stabile) or any other FBI employee, had violated

the Bribery Statute. He was questioned specifically regarding his associa-

tion with Ahmad Nagi, also James Nagi who was murdered on June 17,

1974. Special Agent Good furnished the following information:

Good began handling Nagi as a potential criminal informant as a

result of a contact with Nagi on October 1, 1970, subsequent to Nagi's

arrest August 31, 1970, by the Jersey City Police Departnent. Nagi

was cooperative and he furnished information regarding an armed

hijacking which occurred August 31, 1970. As a result of Nagi's coopera-

tion the shipment was recovered and an arrest was made.

Nagi continued to provide information of value on other cases leading

to the recovery of substantial amounts of stolen proporty and more ther

ten arrests in Theft from Interstate Shipment cases. Among the persons

arrested were Henry Serrapica, Frank Lisi, Joseph Lisi, Anthony

Annichiarico, Louis Felice, Harry I, Brown, Lennice Delain, Arthur

Hubbard, Johnny Lawrence, Charles Wharton and fugitive Ralph Guarino.

Facts regarding Nagi's cooperation were made known to Assistant

District Attorney Barry Freidman in connection with a planned hijacking

in July, 1971. Information furnished by Nagi was disseminated prior to

the proposed hijacking and subsequently Nagi was arrested. The charges

were dismissed. Subsequently Nagi furnished very little information of

value and he became unreliable and unstable. Nagi was "closed" as an

informant in July, 1972. He was later reopened as a potential criminal

informant in January, 1973, until April, 1973, during which period he

furnished no information of value.

Interviewed on May 1, 2, 1975

Brooklyn, New York

Inspector Clark F

Brown and

by-

Special Agent Edward D. Hegarty:bhg

Files#.

_ Date dictated

May 5, 1975

This

document contoins neither

recommendations nor

conclusions of the FBl, It is the property of the F8l and is loaned to your agency;

it and its contents are

nor lo be distribuled outside your ogency.

49

NW 68262 Docld:32989576 Page 126

119!

---

## Page 127

2

Nagi continued to contact SA Good from time to time but did note

furnish any information of value. He usually called when he had been

arrested by local authorities and was seeking assistance. On these

, occásions Good explained to him that there was nothing that the FBI

could do to assist him. He requested assistance in connection with an

• arrest for a supermarket robbery in the Bronx. He explained that the

stick-up had been set up by. George Tropiano and Tropiano's associates

which included the manager of the supermarket.

On May 2, 1975, SA Good advised that a short time prior to Nagi's

murder, a three-month period, he contacted sA Good by telephone and

advised that his parole officer was contemplating revocation of his parole

because of arrests. Nagi said he told the parole officer that he had an

incurable disease, and had less than a year to live. The parole officer,

according to Nagi, said he was still going to revoke his parole unless he

received a letter of confirmation from a doctor to the effect that he had

an incurable disease.

Nagi further advised that he had contacted a doctor and had told the

doctor that he was doing some work for the FBI and had to use the excuse

that he had an incurable disease as a cover story and requested the

doctor to give him a letter indicating this. Nagi said the doctor refused

to do this unless he, the doctor, received a letter from the FBI requesting

Nagi requested a letter from SA Good which was denied. Good

told Nagi he shoulan't have told the doctor that he was doing a job for

the FBI since he, Nagi, knew this not to be true.

SA Good further advised that a few days later Nagi came to the New

York Office to see SA Good who was not in. While in the office he may

have observed a sample of FBI letterhead stationery. Several days later

a telephone call was received possibly by Complaint Clerk Joan Wild,

from a U. S. Government Agency believed to be GSA, advising that a

person named James Nagi was attempting to pick up some FBI letter-

head stationery.

On May I and 2, 1975, SA Good advised that he never contacted

Nagi in the company of SA Joseph Stabile; he never discussed Nagi with

50

NW 68262 Docld:32989576 Page 127

15°

---

## Page 128

3

(Stabile;)he has no reason whatsoever to believe that SA Stabile) ever

Knew of or was interested in Nagi; he never discussed SA Stabile with

• Nagi; Nagi never indicated to him that he knew or head of (SA Stabile;)

and Nagi never mentioned(SA Stabile) at any time.

-NW- 68262-Docld:32989576 Page 128

52

---

## Page 129

FD-302 (REV, 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcriplion.

May 5, 1975

Virs. Linda Nagi, nee Migliaccio, 140 Luqueer Street, Brooklyn, New

York, telephone 625-0782, was interviewed on the premises, rear room, of the

James-Lynn Coiffure Shor, 520 Clinton Street, Brooklyn, New York, telephone

numker 852-9619. Prior to the interview Edward D. Hegarty and Clark F. Brown

identified themsleves as employees of the FBI.

Mrs. Nagi was told the purpose of the interview was to determine

whether or not she has any knowledge indicating that her late husband, James Nagi,

had a corrupt association with any member of a Federal law enforcement agency.

She said she never had any reason to believe that her husband had a corr-

upt relationship with any law enforcement officer. She recalled that her husband was

friendly with an FBI Agent named "John Good." She did not know if her husband was

acquainted with any other Agents. The only Agent she ever heard her husband

mention was John Good.

She was asked if she still had any of her husband's possessions such

as adress books and notations of names and telephone numbers and she said that she

had turned these over to the Brooklyn District Attorney's Office. She said she had

some telephone bills finm her apartment which she would losate and make available

for review.

She advised tha t while she was married to James Nagi he had a girl

friend for about one year prior to his death, Susan Friedman, 3004 Avenue V,

Apt. 1#, Brooklyn, New York, telephone number 648-5291. Among her husband's

best friends she named Anthony Tanani, Junior Calisi and Pete Sowers.

She recalled that her husband, prior to his disappearance ana deato,

had a problem with George Tropiano and Bill Cutolo and on Sunday, June 16,

1974, he told her that he was working vith a Mr. White from Nadjari's office and

that he, James Nagi, her, Mir's. Nagi, and their five-year-old child were going to

be relocated and given a new identity by Nadjari's office.

Mrs. Nagi said that she never heard her husband saying that he had

or wanted to have any FBI or New York City Police Department Detective badges.

She said she never observed articles of this type in her husband's possession.

Interviewed on

May 1, 2, 1975

Inspector Clark E. Brown and

b Supervisor Edward D. Hegarty wmj

Brooklyn, New York

_File #.

NY 58-1854

_ Date dictaled.

May 5, 1975

This document conloins neither recommendations nor conclusions of the FBl. Il is the properly of the FBl and is looned to your agency;

Il and ils conients are not la be distributed oulside your agency.

52

NW 68262 Docld:32989576 Page 129

12Y:

---

## Page 130

NY 58-1854

on May 2, 1975, Mrs. Nagi made available.for review her telephone

bills covering the period March, 1973, to April, 1975, for telephone number

212-625-0782, located at her residence. All of the toll calls were to numbers

familiar to her except one, namely a call on 6/24/74 (after her husband's death)

to 516-821-1514 aE l1:59 AM, charge $L. 52, toll ticket 28RB75508610. This call

appeared on the July, 1974

i, bill.

There were 8 other toll calls on the July statement

to 516-281-1514 which is the telephone number of her mother, Mary Miglaccio,

21l Laurelton Drive, Nastic, New York,

She said she had located the following additional notations made

, by her husband:

•. Eric Crawley

624-6443

Tom or Helan

518-946-2488

Bob

Frank Del Sole

Avis Rent A Car

E 43 Street

875-0560

McCory's Dept. Store

Fulton Street; Brooklyn, N. Y..

Ask for Smitty

UL 5-6570

Frankie

Harry Baya

914-478-0331

381 Broadway

Hastings on Hudson

Mike

477-7648

;

John Matos

• 81 Silver

Meriden, Conn.

Tel. 235-7526

Ask for Danny Shep

OR 5-2268

• Prouenzano

NW 68262 Docld:32989576. Page 130

1.123

---

## Page 131

FD-302 (Rev. 11-27-70) °

FEUC

IL BUREAU OF INVESTIGATION

Date of transcription

May 20, 1975

MIS. LINDA NAGI, 140 Luqueer Street, Brooklyn,

New York, was telephonically contacted, telephone

number 625-0782,

which phone is located at her residence.

-Prior to interview, EDWARD D. HEGARTY identified

himself as a representative of the FBI Inspection Division who had

spoken with her on previous occasion. Mrs. NAGI was asked if she

had any knowledge as to whether or not her late husband JAMES had

any magnetic yoice tape recordings of conversations he may have had

with other persons. She said she never knew her husband to have

any tape recordings of any conversations he or other persons had.

tarnished the

She furnished the residence telephone of her sister-in-law RAE NAGI

as 241-0655:

Interviewed on -

5/20/75

.at .

(Telephonic)

New York, New York

_File #_NY 58-1854

SUPERVISOR EDWARD D. HEGARTY/mgh

5/20/75

by

-

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBl and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

54

NW 68262 Docld:32989576 Page 131

---

## Page 132

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription.

May 5, 1975

Vr. Mohammed Nagi, 60 Woodruft Avenue, Brooklyn, New York,

telejahone number 693-1050, was interviewed on the premises of the brooklyn

Union Gas Company, 195 Montague Avenue, Brooklyn, New York. Prior to the

interview Edward D. Hegarty and Clark F.

Brown identified themselves as

employees of the FBI. It was explained to Mr. Nagi that the FBI was interested

in learning any knowledge he might have regarding whether or not his late brother,

James Nagi, had any contaçts, corrupt or legitimate, with members of law

enforcement agencies.

Mr. Nagi said that his brother had been a "paid informant" for the

"FBI and was close to an Agent named "John Good." He knew of no other FBI employees

or employees of any other Federal law enforcement agency who were associated

With his brother.

He said he never saw in his brother's possession an FBI badge

and was never told by his brother or by anyone else that his brother possessed

such a badge.

A group of eleven photographs, including-one of Srecial Agent Joseph

stahile, was shown to him and he did not identily any of the potos.

Interviewed on

May 1, 1975

Inspector Clark F. Brown and

by Supervisor Edward D. Hegarty:wmj

Brooklyn, New York

Filer#

_Date dictoted

May 5, 1975

This document consoins neither recommendations nor conclusions of the FBl. It is the property of the FBl and is loaned to your agency:

il and ils contents ore not to be distributed outside your agency.

55

NW 68252 Docld:32989576 Page 132

---

## Page 133

EDERAL BUREAU OF INVESTIGATIOTS

Date of transcription.

May 5, 1975

Miss Susan Friedman, Apt. lE, 3004 Avenue V, Brooklyn, New

York, telephone number 648-5291 was interviewed in her apartment. Prior to the

interview Edward D. Hegarty and Clark F. Brown identified themselves as employees

of the FBI. It was explained to Miss Friedman that the FBI was interested in learning

any knowledge she might have regarding whether or not James Nagi had any contacts,

corrupt.or legitimate, with members of law enforcement agencies.

She advised that she dated Nagi for about one year prior to his

death in June of 1974. She said she never was given any indication by Nagi that he,

Nag, had any corrupt or friendly relationships with any member of law enforcément..

She said she did not know if Nagi was acquainted with anyone in the FBI.

She denied knowing the names of any of Nagi's friends and denied

that Nagi had ever given her any personal papers to keep for him such as address

books or notations of names and telephone numbers.

Interviewed on.

May 1, 1975

=a1.

Inspector Clark F.

Brown and

by Supervisor Edward D. Hegarty wmj

Brooklyn, New York

File #

_ Date dictoted.

May 5, 1975

This document conloins neither recommendations nor conclusions of the FBl.'Il is the properly of the FBI and is loaned to your agency:

il and ils

contents

ore.

not to be

distributed outside your agency.

56

NW 68262 Docld:32989576 Page 133

---

## Page 134

FEDERAL BUREAU OF INVESTIGATIOI

.. Date of transcription 5/21/75

MiSS C: RASEH NAGI, 105-84 Flatland 8th, Brooklyn, New York,

telephone 241-0655, advised that she is the sister of JIMMY NAGI.

She said she is Supervisor of Health and Drug Education and Health

Services, Community School District 19, 2057 Linden Boulevard,

Brooklyn, N. Y. 11207, telephone numbers 257-8619 and 257-5900.

MiSS NAGI advised that for a period of approximately three

weeks prior to her brother's murder, he had lived with her, having

separated from his wife.

She said her brother had always been very

kind to her but. she felt that he was trying to overcome the other

side of his personality and his involvement with the criminal element.

She said that they had always been very close and he frequently

'confided in her.

Approximately three or four years ago, her brother had

told her that he was working for the FBI and specifically mentioned

an agent. by the name of John Good as his contact in the FBI.

She

further recalled that on one occasion when her brother had gotten

in trouble he tried to get a statement from his family doctor to

the effect that he had Leukemia and the doctor at the time mentioned

to her that JIMMY had told him how he was working for the FBI and

that she should see if there was any substance to this. She said

the doctor was reluctant to furnish such an untruthtul statement

unless the FBI

was willing to substantiate JIMMY's involvement

with the agency. Miss NAGI said she never did contact the FBI

concerning this matter.

• She further stated that in 1973 JIMMY had served a nine

months sentence for extortion and had asked her to contact Aget Good

to try and get him out of jail.

She said she never did contact

Agent Good nor did her brother ever mention any other FBI contacts

he might have who would help him in this matter.

She said that in addition to his contact with Agent Good

in the FBI, NAGI used to brag about numerous contacts in the

New York City Police Department and had a tendency to brag about

having inside information.

she said frequently her brother would

be reading a newspaper account of a police investigation and would

comment to her that he knew about that matter many months ago

through his contacts in the Police Department.

Interviewed on

5/20/75

_at

Brooklyn, N. Y.

_File #-

58-1854

supervisors Donald I. Hartnett Dr

by -

and Richard F. Keefe

_Date dictated

5/21/75

DEH: DJG

This document contains neither recommendations

nor conclusions of the FBI. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

57

NW 68262 Docld:32989576 Page 134

12%:

---

## Page 135

She stated that she has never heard of the names STABILES)

MORESCO Or STATILE but did recall her brother talking about BILLY

CUTOLO, and possibly GEORGE TROPIANO, although she never met

either of these latter individuals.

She also recalled her

brother mentioning that he used to

have license numbers of police

cars but she never heard him discuss any knowledge he may have

about Emery Air Freight trucks being used by the Police Department.

She also stated she had no. knowledge. whatsoever that her brother

JIMMY ever had any radios in his possession capable of monitoring

police broadcasts, nor had he ever mentioned this to her.

She

did recall her brother coming to her the Saturday before he was

murdered and described him as being very upset.

He told her that

he had been picked up by the Nadjari Commission the previous day

'and hag been questioned into the early morning hours of that

Saturday and had been threatened

in an effort to obtain his

cooperation.

She said her brother did not tell her whether he

did in fact cooperate with them or not.

58

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## Page 136

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dato of transcription.....

5/21/75

Miss C. RASEH NAGI, 105-84 Flatland 8th, Brooklyn, New York,

telephone 241-0655, advised that she is the sister of JIMMY NAGI.

She said she is Supervisor of Health and Drug Education and Health

Services, Community School District 19, 2057 Linden Boulevard,

Brooklyn, N. Y.= 11207, telephone numbers 257-8619 and 257-6900.

Miss NAGI made available effects she had in her possession,

which her brother had left at her house prior to his murder.

These papers contained various telephone numbers and notations

set forth as follows:

.438-5846

237-2558

855-6423

(Lee)

438-2032

(Poncho-84 Lawrence Avenue, Brooklyn)

649-7512

or 13 (Ask for Florence)

257-8619

559-3506

(Mr. Davis)

531-7674

875-8952

875-1770

852-5189

497-2724

852-9619

(2)

(2)

788-8979

2-839-3007

875-3727 (2)

874-8-6863

852-8554

852-4753

855-8483

438-4960

(Bill)

257-8619

101673 MV 78B

U F

61 #

5607

76 Pct

Interviewed.on

5/20/75

_at_

Brooklyn, N.Y.

Supervisors Donald I. Hartnett Hy

by -

and Richard F. Keefey

_File # 58-1854

_Date dictated

5/21/75

DEH: DJG

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBl and is loaned to your agency;

•It and its contents are- not to be distribuled outside your agency.

59

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121!

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## Page 137

Miss NAGI advised that she did not know the significance

of any of these numpers.

She also stated, however, that during

the time that her brother JIMMY had frequently stayed at her

apartment her telephone bill took a noticeable increase, which

raused her to have the phone company check on all outgoing calls

made during Masch 1974.

She said the phone company had furnished

her a list of these calls and advised that three of the calls

made during that period were to people unknown to her.

She

furnished these numbers from the phone company report as follows:

• 327-8378 (MORRIS GORDON)

858-4587 (MISS E. HOFF)

251-6752 (IRVING

GOTTLIEB)

She said she had no idea whether her brother JIMMY had called

these

individuals but had always suspected that he had been

using the phone frequently and not admitting it to her.

NW 68262 Docld:32989576 Page 137

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## Page 138

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/22/75

.. Date of transcription

A review of notations of names, addresses, telephone

numbers, contained in personal papers of JAMES NAGI turned over to

Supervisors Donald E. Hartnett and Richard F. Keefe on May 20, 1975

by Miss C. RASEH NAGI, 105-84 Flatland 8th Brooklyn, New York,

telephone

241-0405, as personal effects of her brother, was made.

No identifiable reference to (Special Agent Joseph Stabile)by name,

address of telephone number was located. (stabile's telephone

number 661-3898. 14 Plymouth Street, Cambridge, Massachusetts;

Boston Office telephone number 742-5533; 516-864-1348)changed to

516-543-5422 in 'November, 1972,

66 Roxbury Drive, Commack, Long

Island, New York; and

confidential New York Office telephone numbers

were compared to NAGI'S documents with negative results. Telephone

number 535-7700 is the published number of the Federal Bureau of

"Investigation, U. S. Department of Justice, 201 E. 69th Street,

New York, New York.

None of Stabile's telephone numbers were

found listed in the documents turned over by Miss C. RASEH NAGI.

Interviewed on -

May 22, 1975

_at.

New York

File #_58-1854

by _

Supervisor J. Robert Pearcel

_Dato dicrated 5/22/75

JRP: DJG

This document.contains neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned to your agency;

• it and its contents are not to be distributed outside your agency.

61

• .

NW 68262 Docld:32989576 Page 138

131:

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## Page 139

FD-302 (Rov. 11-21-101 .

FEL

L BUREAU OF INVESTIGATIOI

• Date of transcription ..

May 21, 1975

Deputy Inspector JAMES NEVINS, Kings County

Prosecutor's Office, Borough Hall, Brooklyn, New York, made

available xerox copies of personal papers of JAMES A. NAGI.

These papers-had been removed from 105-84 Flatlands

Avenue,

Brooklyn, New York, on July 4, 1974, by officers of the kings

County Prosecutor's Office.

:

Interviewed on

5/20/75

at

SA KLAUS C. ROHR/mgh

Brooklyn, New York

File #

NY 58-1854

5/21/75

by

Date dictated

his document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned 1

our agency; it and its contents are not to be distributed outside your agenc

62

-NWL68262Docld:32989576 Page 139

-137!

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## Page 140

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/13/75

ROBERT VILLEROEL, 210 7th Street, Brooklyn, New York,

SO 8-9673, advised that he is presently self-employed in the

construction business,

Mr. VILLEROEL said that his son ANTHONY VILLEROEL, date

of birth 12/30/55, was arrested in May, 1972, with PETE SOWERS

and JIM NAGI for an armed holdup of a Cooperative City chain

store in the Bronx, New York.

He stated all three were arrested

7/31/72 by the New York City Police Department and

that his son

subsequently pled guilty in September 1974, receiving a sentence

constock,

"New York, where he is presently incarcerated.

MX. VILLEROEL said that his son, who was only 16 years old

at the time of his arrest, had been running around with NAGI and

SOWERS for some time and that he had met both of these individuals

at the Burger Prince Restaurant, Brooklyn, New York. He recalled

tha& SOWERS had visited his apartment on one occasion but that

he was never too friendly with either SOWERS or NAGI but recognized

them as "bad poopic". He said he had warnea his son to stay

away from the two of them to no avail.

VILLERGEL advised that he

also frequented the Burger Prince Restaurant, which he said was

owned by BILLY CUTOLO and JOE "MONK", whose last name he did not

He also advised that he was acquainted with GEORGE TROPIANO,

who also hung around the Burger. Prince as did FREDDIE INU, who

VILLEROEL described as an old man.

VILLEROEL said that in connec-

tion with his previous employment for the Elzee Medical Products

Company, 8th Avenue and 39th Street, Brooklyn, New York, where he

had worked for 193 years prior to his son's' arrest, that he had

frequent business stops next door to the Burger Prince Restaurant

and as a result used to drop in the restaurant. VILLEROEL Stated

that in his acquaintanceship with SOWERS, NAGI, CUTOLO and TROPIANO,

which he described as casual in nature, he had never learned of any.

information relative to what they were involved with or any deal-

ings with law enforcement officers. He also denied having any

knowledge of NAGI having been previously arrested or being concerned

about any trouble with the law.

VILLEROEL also stated his son

ANTHONY had never discussed with him any problems that NAGI Or SOWERS

Interviewed on _

5/12/75

at Brooklyn, N.

_Filé #_58-1854

Supervisors DONALD E. HARINETIREY

. =

and RICHARD I. KEEFE

by —

__Date dictated

5/13/75

DEH: DJG

This document contains neither recommendations nor

conclusions of the FBl. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

63

NW 68262 Docld:32989576 Page 140

133

---

## Page 141

had had with

law enforcement nor did he ever mention the fact

that they may have any contacts with any law enforcement agency.

• VILLEROEL stated that he has been a law abiding citizen

all his life, having never been arrested and once again stated

that he only casually knew the above-named individuals through

his son's

association with SOWERS and NAGI and his stops at the

Burger Prince Restaurant.

He stated that he had only visited

his son ANTHONY at Comstock Prison the day before and felt that

his son would straighten out and in all likelihood would cooperate

with any law enforcement agency concerning any information he may

have in his possession.

6

4

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## Page 142

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription.

5/16/75

AL PARRY, Chief Clerk at Great Meadow Prison, Comstock,

New York furnished the following information relating to the

file,maintained at that institution for ANTHONY VILLEROEL, #33161:

VILLEROEL was born 12/30/55 in New York City, is 5'10"

and weighs 160 pounds.

He is assigned FBI #877952J7 and New York

State Identification #3423765M.

A reviar of this file revealed

several probation reports prepared in relation to cases involving

VILLEROEL and adjudicated in New York State Courts.

These proba-

tion reports feferred to VILLEROEL as

"given to verbalizing" and

in essence referring to the inmate as "egocentric, immature and

undisciplined individual of impulsive bent".

In August 1972, while incarcerated at Rikers Island severErOEL

attempted suicide by hanging and was determined to have

character disorder with dangerous impulses", as well as being

referred to as immature, callous and an individual who showed

little

remorse or guilt feelings.

The file further revealeâ that

at the age of 16, he had used both Heroin and Cocaine for a.

perzod of several months but was. not at the time addicted.

Following is a list of individuals on record at the Great

Meadow Prison as sither friends oi cousins of VILLEROEL, all ve

which names were recorded on or prior to May 15, 1975:

Miss

Sandy Cinque, 333 Washington Avenue, Brooklyn (friend)

Miss Nancy Corsa,

' 119 Columbus Drive, Tenafly, New Jersey (friend)

Joe Cacciatore, 1796 Oakland Avenue, Wantagh, N. Y. (frien)

Dianna Domino,

434 4th Avenue, Brooklyn (friend)

Miss Marie Cona, 278 7th Street, Brooklyn (friend)

Miss Carol

Petillo, 212 7th Street, Brooklyn (cousin)

MISS Lorraine Miniero, 212 7th Street, Brooklyn (cousin)

Mr. Toni Stanzione, 1938 82nd Street, Brooklyn (friend)

Paula Flumauno, 321 Smith Street, Brooklyn (girlfriend)

Melissa Acosta, 1316 Halsey Street, Brooklyn (friend)

Miss Cris Daspro, -241 45th Street,

Brooklyn (friend)

Rose and Chalatta Calese, 70 Lancaster Avenue, Brooklyn (friends)

Interviewed on _ 5/15/75

_at.

Comstock, New. York

_File #_ 58-1851 .

Supervisors RICHARD F. KEEFE

by -

and DONALD E. HARINATE SU

_Date dictated..

5/5/75

RFK: DJG

This document contains

neither recommendations nos conclusions of the FBI. It is the property of the FBi and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

55

NW 68262 Docld:32989576 Page 142

35

---

## Page 143

(REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/16/75

ANTHONY VILLEROEL, #33161, an inmate at the Great Meadow M

Correctional' Institute, advised that he is presently serving a

prison sentence of three and one-half to ten years for an armed

holdup in Bronx, New York, in 1972. He stated that he was

acquainted with JAMES NAGI for many years and that he and NAGI

began to pull scores during the Spring of 1972 and that they

worked together through 1974 until NAGI was murdered. He said

that he and NAGI, as well as another accomplish on these scores,

PETE SOWERS, hung around the Burger Prince Restaurant, 66th

Street and 8th Avenue, Brooklyn, N. Y., during this period.

VILLEROEL recalled that in the Spring of 1972, JIMMY NAGI

- was driving him around in a "hot car" on which NAGI had changed

, the VIN.

They were stopped by two police officers, who subsequently

took them to the 66th Precinct, New York City Police Department,

New York, for questioning.

He recalled one of the officers

was named BROCKMAN (phonetic).

said when they got to the

precinct, NAGI asked for and was allowed to make a telephone

call and that after talking on the phone for several minutes, he

turned the phone over to one of the police officers,

who had

brought them in.

Following a short conversation, this police

officer said that they had to meet with someone and would be

back shortly.

During

their absence, NAGI told VILLEROEL that

he had called his contact in the New

York City Police Department,

Detective EDDIE CARROLL, who said he

would handle the matter.

Approximately a half hour later the two police officers returned

and said that NAGI was free to go but that VILLEROEL was being

charged with grand larceny-auto.

VILLEROEL said that NAGI had

Irequently told him about his contact in the New York Police

Department EDDIE CARROLL, and that NAGI

• had to make payments to

CARROLL for protection purposes.

He said that he himself had

Frequentzy

frequently received telephone calls from CARROLI at his residence,

when CARROLL was attempting to locate NAGI. He said that he

knew the caller was CARROLL because the latter had so identified

himself on at least one occasion.

VILLEROEL believed that

CARROLE was presently serving as

an aide to a Deputy Inspector

in the New York City Police Department, and that NAGI frequently

furnished information concerning various activities of people he

knew to CARROLL.

He said it was common street talk that NAGI was

a police informant. He advised that on several occasions NAGI had

interviewed on _5/15/75

Supervisors DONALD E.

and RICHARD F. KEEFE

_at-

-Comstock, New York

_Filé # 58-1854

__Date dictated

5/16/75

by -

DEH: DJG

This document contains, neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

66

NW 68262 Docld:32989576 Page 143

B6!

---

## Page 144

warned him after receiving infimation from CARROLL that the

"heat was on" VILLEROEL's house and that he was to be careful!

VII,I.EROEL advised that CARROLL never tried to put the "squeeze"

on him for information.

VILLEROEL also volunteered that NAGI frequently mentioned

to him that he had a contact in the FBI, who was the agent who had

arrested NAGI on a hijack case in New Jersey a few years ago.

He said that NAGI never expressed any concern to him nor did

he seem to

worry about any possible charges or trial taking place

In connection with the hijacking charge aganst him. VILLEROLL

also recalled that in connection with this hijacking that NAGI

told him he had been caught with the driver of the hijacked

• truck in his cas.

VILLEROEI, continued that about January 1973, he and NAGI

opened up a body and fender shop at 435 2na Avenue, Brooklyn,

New York, and that they dealt in hot cars.

He recalled on one

occasion, while leaving this location two individuals, who from

appearance were apparently police officers, arrived at the shop

to talk with NAGI.

He said NAGI later told him that these were

men but did not state whether either one of them was the

individual NAGI haâ described as his FBI contact.

In this

regarh: VILLERoEL said thi he balieves possibly the name of NAgI's

FBI contact had been HOFFMAN but couldn't be sure of this.

VILLEROEL stated that NAGI had a telephone number in his possession

by which he could check out registration data for license numbers

of suspected police cars by calling the telephone and pretending

he was a cop.

He said also that NAGI had shown him a list of

license numbers, which he said were FBI cars, and that these

numbers had been furnished him by his police contact.

VILLEROEL

said that he was guite sure that NAGI had

told him lt was a police

contact that had furnished him this list rather than his FBI

contact. In response to whether VILLEROEL had any other knowledge

of police cars that might be interested in either NAGI or his

activities, he volunteered that it was common knowledge around

the Burger

Prince that Enery Air Freight trucks were being used

by the police. He said this was because the same Emery Air

Freight truck would frequently come to the Burger Prince and the

two occupants would sit around the Burger Prince for several

hours over one cup of coffee and gave every indication of being

connected with law enforcement.

He recalled asking NAGI one time

to ask who these people were and NAGI subsequently told. him that

they were the FBI.

67

NW 68262 Docld:32989576. Page 144

13'

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## Page 145

VILLERDEL stated that during the Spring of 1973, he recalled

that NAGI had told him that he needed $1,000.00 for his FBI con-

tact, who would supply him with crystals for FBI radio frequencies.

He said he told NAGI that this was too much money and never did

know whether NAGI obtained such crystals. He did say that NACI

had a radio in his possession, which they used to plug into the

cigarette lighter of NAGI's car, which was capable of monitoring

the various police frequencies in Brooklyn, and that they would

use this while casing or pulling scores.

He also recalled on

one occasion that NAGI asked him for and he gave him a portion of

one of his scores for the purpose of, according to NAGI, paying

He further recalled that NAGI never

mentioned his FBI contact to him after approximately the miadie

: of 1973.

VILLEROEL said that in connection with his appeal on the robbery

charges,

for which he was incarcerated, he had obtained a copy

of a police report of the investigation, which reflected that an

FBI Agent had apparently also looked into the matter.

He said

that" he could not recall the agent's name but that he did have

it in his possession in his cell. At the conclusion of the inter-

view, VILLEROEL said he would get the name of the agent from

report and furnish it to one of the guards who took him to his

cell, who could then relay it to the interviewing agents.

and co the inde

thA

The

guard subsequently furnished the name he had obtained fron

VILLEROEL aS being HONFMAN.

• VILLEROEL continued that in 1972, he had met PETE SOWERS

through NAGI at the Burger Prince and

they had gone on many scores

until VILLEROEL was incarcerated in September 1974. He describeâ

SOWERS as a very stupid individual, who had been the managei: of

the store he and NAGI held up in the Bronx, for which he, VILLEROEL,

was presently in jail. He said SOWERS had

actually set up the

score for them and was charged with the crime.

He said

that

NAGI and SOWERS, as well as himself, were acquainted with BILLY

CUTOLO and GEORGE TROPIANO. VILLEROEL pointed out that he was

employed at the Burger Prince during this period of time by

CUTOLO.

He said NAGI and SOWERS both told him that CUTOLO and

TROPIANO were very important guys but that neither of them had

ever confided in him about whatever they were doing. He did

recall that CUTOLO used to warn him by saying that he should

stay

away from NAGI and SOWERS because they were "bad news"

• не

pointed out that neither CUTOLO nOr TROPIANO had ever told him

of any contacts they had with law enforcement nor had he ever

heard any street talk that they had such contacts. He further

advised that he really did not know 'any close contacts other than

himself of NAGI OF SOWERS and that he did not think that these

two individuals were very close to CUTOLO or TROPIANO. He said

68

NW 68262 Docld:32989576 Page 145

138:

---

## Page 146

the street talk was that NAGI was killed over a million dollar

art score of a doctor's apartment at the Goläen Gate Hotel. He

could furnish no fusther details in this regard. VILLEROEL

denied ever hearing of JOE STOPS Or STABBS or the names (STABILE

having been contacted by or having had any association with FBI

Agents. He said in connection with his incarceration he had been

sent to Elmira Reformatory, where he got the reputaton

of being a wise guy and that he had been examined by a doctor

there, who said he was crazy, because he gave "goofy answers"

He said he was subsequently transferred to-Mattewan State Hospital

for psychiatric examination, where he stayed for a short period,

and then was sent back to Elmira and subsequently to Great Meadow.

He advised that he would be willing to subject himself to a lie

detector test concerning the above facts but would only do so

with the consent of his attorney JOHN DOCKERY, 26 Court Street,

Brooklyn, New York.

69

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139

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## Page 147

FEL

L BUREAU OF INVESTIGATION

Date of transcription -

May 22, 1975

SA HOMER P. HOFFMAN was interviewed on the premises

of the New York FBI Office, 201 East 69th Street, New York City,

New York.

Prior to the interview EDWARD D. HEGARTY identified

himsélf as a representative of the FBI Inspection Division,

• Washington, D. C.

SA HOFFMAN was asked if the names of JAMES AHMED NAGI

or GUILLERMO SOWERS were known to him and he replied that they

were not. Background information regarding Mr. NAGI was furnished

to him for purposes of refreshing his recollection and he

categorically denied ever having met or having any knowledge of

such a person. An FD 302 reporting an interview with ANTHONY

VILLEROEL May 15, 1975, was shown to SA HOFFMAN and he read the

makes reference to an FBI agent named

HOFFMAN. After reviewing the Interview Report, he said he never

had any contact whatsoever with anyone named JAMES NAGI and he was

• at a complete loss to explain how VILLEROEL could be of the belief

that NAGI had been in contact with him, SA HOFFMAN.

SA HOFFMAN advised that he has been assigned to the New

York FBI Office for the past six years and his primary investigative

assignments relate to bank robbery investigations.

He speculated

that

• it is quite possible a New York City police officer may have

made inquiry of him, some time in the past, regarding VILLEROEL,

and that he may have told him that he knew nothing about VILLEROEL,

which might havresulted in a notation being placed in a police

file indicating contact with him.

5/21/75°

Interviewed on

at .

New York, New York

_ File #

NY 58-1854

5/22/75

by

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

70

-NW-68262- Docld:32989576:-Page 147

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## Page 148

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/13/75

2022

Mr. ROBERT JAMES MARIIN, inmate at the Atlantic Avenue

Jail, Brooklyn, New York, was interviewed on these premises.

Mr. MARTIN advised that he is currently serving a one-year sentence

for Conspiracy to Commit Armed Robbery. He also advised that he is

Prior to being arrested Mr. MARTIN advised he resided ati

27 lloyd street, Brooklyn, New Tork.

At this time SA ROHR told Mr. MARTIN that the Agents

desired to interview him regarding his possible association with

JAMES NAGI, WILLIAM CUTOLO and GEORGE TROPIANO.

SA rOMR also told

MARTIN that he did not have to talk to the Agents, and that anything

he does say could and would be used against him later in a court

Further, that he has a right to consult with his attorney,

MARLIN advised that he understood his rights as explained

to him by sA ROHR.

He also advised that he would like to speak to

the Agents at this time becauce since being incarcerated he has

re-discovered the religious upbringing of his youth and intends

in the future to devote his time as

a minister, guiding other

people in trouble.

MARTIN said that from 1969 to 1973 he was on a voluntary

basis doing makeup work for officers of the New York City Police

Department Tactical Patrol Force. Additionally, he advised he was.

a Sergeant in the auxiliary Police of the 12th Division, New York

• City Police Department, from 1965 to 19?4f.

Prior to his

incarceration, he was also employed as the Manager of the

Caribbean Room at 1082 Rogers Avenue, Brooklyn, New York.

MARTIN advised that he first met JAMES NAGI through

his brother-in-law, LESLIE GATHERER, Of Columbia Place, Brooklyn.

Heights, New York.

GATHERER, he stated, had brought NAGI and his

girl friend sUsaN to his house in the first week oi rebruary,

1974.

Subsequently, MARIIN advisea GATHERER also brought one of NAGI's

associates and introduced him.

This individual, he stated, was

named MICHAEL IOVINE.

. He was told by NAGI, GATHERER and IOVINE

that they could use him to do a couple of small jobs.

NAGI In

particular told him that he was working for some people in

Interviewed on _

5/12/75

Brooklyn, New York

NY 58-1854

_File #.

SA KLAUS C. ROHR and

by -

Supervisor J. ROBERT PEARCE/ rM

_Date dictated

5/13/75

This document contains neither recommendations nor, conclusions of the FBl. It is the property of the FBi and is loaned to your agensy;

it and its contents are not lo bu disiributed outside your agency.

-NW-68262-Docld:32989576_Page 148

71

1401

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## Page 149

-2-

NY 58-1854

&

Bayriage named Blut and GeorGe, and that he did trailer jobs

for them.

Naut also asked him 11 he could provide hin with

makeup for some of his other jobs..

Later in February, 1974 MARTIN stated GATHERER took

bim to the Franklin Arms Hotel in New York and introduced nim

to two black men naned STANLEY SIMMONS aka Fly and MELVIN

BARNES ala Cisco.

These mca were operating a prostitution ring

inside the hotel at thistime. After the first introduction, coti

Eul and CISCO, he stated, began coming to the Cariobean Roon Ber

where he, MARTIN, was working at the time.

At the Caribbean Bar FLY and CISCO met with NAGI and

IOVINE, as well as GATHERER and himscil, MARIIN advisea.

Together they talked about various jobs that they could pull.

One of the jobs that they discussed, he advised, was a jewel

robbery which was to be arranged by a jeweler named BILl.

CISCO and FLY also told thay that they had a connectivu

in the Bronx who could provide them with New York City detective

and police badges, as will as arrest and search warrants. CISCO

FLy intended toruse this paraphernalia to rob independent

numbers operators, loansharks and narcotics pushers.

said that CISCO requested he go along on these jobs and provide

then with makeup so that the victims would not be able to identify

them later.

MARTIN said that sometime in the spring of 1972 he,

CISCO, and a Spanish imerican named SPEEDY went to a Icstaurant

in the Bronx near Yankee Stadiun.

There they met with tho

unknown Negro males, who drove them to a very wealthy-looking

neighborhood in Manhattan.

The two unknown Negro males then

showed them an apartment house and gave then the apartment

number of a numbers operator who was living on the prenises.

MARTIN advised that they were all given New York City dotective.

badges, 8 calibre pistols, and an arrest warrant for the

numbers operator. With this paraphernalia they entered the

apartment house,

went to the designated apartment, and identifici

themselves as police officers. MARTIN advised that a women

answered the doorbell and told them that the numbers operator wo

72

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14'

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=3-

NX. 58-1854

they were looking for no longer resided at this address.

As a

result of this, all of the men left the building and returned

the police paraphernalia to the two unknown Negro males.

=

MARIIN advised that shortly after this incident he

participated in a similar operation with elsoo and ful.

This

robbery, he stated, took place in harlen and again they were all

armed with New Lork detective badges, pistols and an arrest

warrant. 'The victin at this time was a black female narcotics

pusher, who was supposed to have $40,000.00 on her person.

At

the time of the robbery, however, MARIIN stated she only had

$600.00; which they took.

MARIIN advised that NAGI did not participate in any of

robberies. The only criminal dealing that they had with NAGI

during the spring of 1974, MARTIN advised, was in trying to sell

* Some stolen art objects in the possession of JAMES NAGI. As faI

as he recalled MARIIN advised that sone people working for NAGI

had stolen these art objects valued at $250,000.00 Erow a

DI. SALERNO Of New lork City• NAGI, he advised, complained

that too many people knew about 'the

burglary and then asked hin

MARLIN, II he could Ilnd a buyer ior the art objects.

MARtIN

advised that he then got in touch with a SIDNeY SCHMALowInz, a

jeweler who specialized also In stolen jewelry and other art

• objects.

SCHMALOWITZ, MARTIN advised, was able to find a buyer

this time NAGI

had. told him that his people, Blub and

GOrGE, had taken the art objects from him anc. ne could not get

then back.

At this time MARTIN advised he found out about all

the problems that NAGI was having with his people in Bayridge.

MARTIN said that he had been told by one of NAGI's

other associates, ANTHONY

whose last name he did not recall,

that sometime in 1972 or 1973 NAGI, on the orders of his people

in Brooklyn, had pulled a supermarket robbery in Co-op City,

New York.

InIs roDDery, he was tola, netted NAGI $100, 000.00.

73

NW 68262 Docld:32989576 Page 150

111*

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## Page 151

- 4 -

NY 58-1854

Later, though, NAGI was arrested for this robbery because the

assistant manger of the supermarket, who was also involved.

In this robbery, ned contessed to the police..

Prior to his

arrest, though, vict had kopt a good part of the money he netted

in this robbery instead of turning it all over to BIli and

GEORGE in Brooklyn. In addition to this particular incident,

MARTIN stated he found out from NAGI and others that NAGI was

holding backs goods that he obtained through hijacking jobs that

he was doing for BILT and GHORGE in Brooklyn.

As a result,

BIlL and GEORGE but a lot of pressure on NAGI for their money.

MARTIN advised it got so bad that during a period of about one

month

he gave NAGI about $700.00 to repay BIlI and GIORGI.

Beginning approximately May, 1974, ELY, CISCO, NAGI

of his homu.

Int robbery was to be carried out by two New lork

Sty polIcemen,

who had been regularly shaking down CISCO and FLY

on their prostitution operation.

NAGI, early in the planning of

told them that he

ald not want any part of it,

although he did continue to participate in the planning of the

robbery.

:

On June 8, 1974, MARTIN stated CISCO and FLY told him

that the following Monday

they would be bringing the two policenen

over to him so he could nake them up with a suitable disguise for

the upcoming robbery. When CISCO brought the two policemen to

his house he recognized one of the policenen as VINCENT RIZZO.

The other policchan's name he stated was DINERO. The two policemen

asked him about his makeup work, and then he actually made up one

of the policonen.

As they had planned, the two policemen were to

return to his house on mursday, in order to be made up for the

robbery, which was to take place that Friday.

Aftca the two

policemen had left, FLY and CISCO told bim, MARIIN, that this

robbery was to be a frame job on the two policemen,

that is that

when the two policemen were in the house conducting the robbery,

CISCO and FLY would contact the Police Department and tell trem

that two men were robbing this particular City official. CISCO and

74

NW 68252 Docld:32989576 Page 151

"?!

---

## Page 152

-5.-

NY 58-1854

Ely said they wanted to do this in order to get rio of the

two policemen because they were shaking them down for too nuch

money on their prostitution operation.

MARTIN advised that on the morning of the robbery

which he recalls was Friday, June 14, 1974, he went to the

Caribbean Room, where he met JAMES NAGI and MIKE IOVINE. He

= asked both of them to return to his house with him, where they

spent nost of the day.

While in the apartment, MARTIN advised,

officers attached to the NiJARI Commission executed a warrant on

the place and arrested everyone there. MARTIN was told that he

was being arrested for homicide on a police oificer while NAcI

and IOVINE were picked up simply because they were on the premises.

MARTIN also advised that the officers found a number of guns in

his apartment, all of which belonged to bim.

Additionally, they

found several badges, one of which was an ambulance drivers badge

that he used when he haû bee driving an ampulance, and the obei

was an old auxiliary police badge.

MARTIN adyised that as far as he has been told the two

police officers that were to do the robbery were actually working

in an undercover capacity and he was later charged with

conspiracy to comnit arned robbery. After having pleaded guilty

to this charge, MARIIN stated he was sentenced to one year in

prison, and is currently serving this sentence.

MARIIN advised that since having met NAGI early in 1974

until NAGI's death in June of that year, he had a number of

discussions with NAGI and his associates.

At no time did NAGI

ever tell hin that he had a source or a friend in any part of the

Federal Law Enforcement Establishment.

The only connections

NAGI ever bragzed about were his people in baydanzin died

GEORGE, whose last names MARIIN could not recall.

stated

that the only police badges that he had ever had in his

possession were those furnished him by the two legro men working

with CISCO and FLI.

As he stated beiore, the badges found by the

police officers in his apartment were an ambulance driver's badge

and an auxiliary police badge, which were never used in any

75

NW 68252 Docld:32989576 Page 152

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## Page 153

- 6 -

NY 58-1854

• criminal activity. Mr. MAPTIN was now shown a f'ederal Bureau

of. Investigation badge.

After viewing this badge,

he stated

that neither NAGI noI CISCO, and FLY's associates in the Bronx,

had ever shown him a badge similar to the Federal Bureau of

Investigation badge he had just viewed. MARTIN again reiterated

that he had never been told by NAGI or any of his associates

76

NW 68262 Docld:32989576 Page 153

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## Page 154

FD-302 (Rov. 11-27-70) °

FEDERAL BUREAU OF INVESTIGATION

Date of transcription -

May 21, 1975

MI. LESLIE E. GATHERER, 51 Columbia Place, Brooklyn, New

York, telephone 858-5528, was interviewed at this location.

Ix. GATHERER advised that he has known JAMES NAGI very well since

1968 or 1969= Beginning in early 1974, he stated, he, NAGI, his

brother-in-law ROBERI MARTIN, as well as two other individuals

named STANLEY SIMMONS and MELVIN BARNES, started to meet regularly

at the Caribbean Room, a Cocktail Lounge, managed by MARTIN.

was during these meetings that NAGI involved them all in the sale

of some paintings which he and others apparently had stolen earlier.

NAGI tried to sell the paintings through ROBERI MARTIN, but was

unable to do so because he had given some of the paintings to

WILLIAM CUTOLO and GEORGE TROPIANO, who usually could be found at

* the Burger Prince Restaurant, 65th Street and Eighth Avenue, ;

Brooklyn, New York.

According to GATHERER, CUTOLO and TROPIANO

kept the paintings because NAGI owed them a great deal of money.

Up until the time NAGI was killed in June, 1974, he advised he

kept hearing from NAGI and others that he,was very deeply in debt

to CUTOLO and TROPIANO.

During the time he was associated with NAGI, GATHERER

stated he never heard him say anything about a connection he had

in Federal Law Enforcement.

GATHERER said that NAGI knew a lot

of people and talked freely about them to him, but he never told him

about any FBI agent or any other individual

representing law

enforcement on a local level. NAGI at no time ever told him that

he was paying any law enforcement official for help and/or

information.

Mr. GATHERER also advised that he had never heard any

discussion to the effect that NAGI was acting as an informant for

the FBI.

5/20/75

Brooklyn, New York

NY 58-1854

Interviewed on

_ at

FicK

SAS KLAUS C. ROHR' and FORD W. COLE *

by -

-KCR/ ngh

- File #

5/21/75

-

Date dictated

This document contains neither recominendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

77

NW 68262 Docld:32989576 Page 154

---

## Page 155

FD-302 (Rev. 11-27-70)

FEL-RAL BUREAU OF INVESTIGATION

Date of transcription May 13. 1975

Interviewed on

SA BRUCE, J. BROTMAN was interviewed in Room 1209,

Westbury Hotel, 69th Street and Madison Avenue, New York,

New York.

Prior to the interview, EDWARD D. HEGARTY identi-

fied himself as a representative of the FBI

Inspection Division,

Washington, D. C.

SA BROIMAN advised he entered on duty as a Special

Agent of the Federal Bureau of Investigation, December 1, 1969,

and has served in the New York Field Office during the past

four and one-half years.

SA BROTMAN was told the purpose of the interview

was to determine if he has any knowledge of any unlawful conâuct

on the part of(Special Agent JOSEPH STABILE) or any other Special

Agent or employee of the Federal Bureau of Investigation, or

knowledge of unlawful conduct on the part of any member of any

Federal Law Enforcement Agency. He advised that he is not

personally acquainted with (SA SIABILE) and never had occasion to

work with(SA STABILE. He said that he has no knowledge whatsoever

which would indicate

of suggest that (SA STABILE) or any other

employee of the FBi has engaged in any form of unlawful conduct.

SA BROTMAN was asked if he had furnished the New York

City Police Department with information regarding one ROBERT MARTIN,

27 Lloyd Street, Brooklyn, New York.

He replied that he developed

an informant in January, 1974, and

subsequently received from

: this informant information regarding the activities of ROBERT

MARTIN, JAMES NAGI, MIKE IOVINE, LESLIE GATHERER and other persons

involved in robbery and burglary activities.

Information obtained from the informant was passed

along to interested New York City Police Department officials.

At no time did SA BROTMAN's informant ever state or

indicate that he had any knowledge in his possession indicating

that any federal employee had comported himself in an unlawful

manner.

He said that ROBERT MARTIN was alleged to have had all

types of disguises and make-up equipment, including police badges.

However, at no time did the informant state that MARTIN had

5/9/75

_a New York, New York

File #

NY 58-1854

SUPERVISOR EDWARD D.

HEGARTY/mgh

5/12/75

by

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

78

NW 68262 Docld:32989576 Page 155

141

---

## Page 156

NY 58-1854

available any FBI badges.

SA BROTMAN furnished Supervisor HEGARTY for

review the FBI case file on his informant, described above, and

the entire file was read.

There is no statement or indication whatsoever in

SA BROTMAN's informant file indicating improper or unlawful conduct

on the part of any member of any Federal Law Enforcement Agency,

including the FBI.

79

-NW. 68262-Goald:32989576_Page 156

---

## Page 157

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/21/75

Date of transcription

Detective Edmund Carroll, 103rd Precinct, New York City

Police Department, advised that he had worked on the hijacking:

squad from 1967 until the latter part of 1972, at which time he

transferred to his present assignment.

course of his work with the hijacking squad he became acquainted.

with JIMMY NaGI, who at the time was dealing in hot cars, mainly

Cadillacs.

During this same period, Carroll stated that he

worked closely with various FBI Agents, including John Good, and

that both he and Good had been using NAGI as an informant.

FIe

described NAGI as being a braggart, who freguented both the 61st

and 62nd Precincts, New York City Police Department, located

in the Brooklyn area.

He said NAGI was always telling people

"about his inside contacts with the Police Department and how he

• could get things taken

care of.

In alition, he said NAGI talked

about having contacts in the Safe and Loft Squad ana used to

carry a list of license numbers, which he said were cars used

by the local

precincts.

Carroll said he never heard NAGI discuss

any contacts

he had with fBl agents, other than John Good, but

he did recall on two or three occasions seeing NAGI with Iony

Villano, whom he knew to be an FBI Agent. and with whom he had

worked

frequently. He recalled on one occasion that NAGI had called him

and asked him to meet in a restaurant.

When he arrived,

NAGI and Villano were together at the restaurant.

He said he

could not furnish any further details concerning the relationship

between Villano)ana NAGI, other than they were acquainted.

Carroll said to the best of his knowledge it was sometime prior

to the latter part of 1972, when he saw Villano) with NAGI, but

could not pinpoint the time more specifically.

He further described NAGI as the type of individual who

would tell his friends about his contacts in the Police Department

and to prove this would call a police officer on the telephone to

set up a meeting, while at the same time letting one of his friends

listen to the call to prove that he had such contacts. He said a

good example was several years ago during the course of an investiga-

tion they utilized a telephone intercept in which NAGI was overheard

telling a friend of his how he could get a case fixed because of his

acquaintanceship with a certain New York City Police Officer.

Interviewed on _

5/20/75

-at-

New York

_File #_

58-1854

Supervisors Donald E. Hartnett f

by and Richard F. Keefey

_Date dictated

5/21/75

DEH: DJG

• This document contains neither recommendatiods nor conclusions of the FBl. It is the properly of the FBI and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

80

NW 68262 Docld:32989576 Page 157

149

---

## Page 158

He said several months later NAGI. was brought in for questioning

and unbeknown to him, this. so-called contact of his in the New

Yorl: City Police Department was present during the interview.

During the course of '

questioning, NAGI

was asked about his

relationship with this so-called

contact in the Police Depart-

meit and NAGI said they

were good friends. He was then confronted

with the fact that this

so-called contact of his was

at the intexview and he had to admit that he had lied. his prasence

Detective CARROLL advised that his unit working hijacking

matters had never utilized any Enery Air Freight Trucks but knew

that the Safe and Loft Squad frequently borrowed vehicles for their

work but that he did not know whether they in fact had ever used

Emery Air Freight trucks. He advised that the mme JOE SIABBS. OL

* STOPS somehow sang a bell with him but he could not elaborate on.

this.

Ee said he had never heard the names MORESCO Or STATILE

before but did know a TONY StABILE, who was a hood, and

had a

brother JoE.

He also advised that during his dealings with NAGI,

he had never known NAGI to have any crystals or radio sets capable

of monitoring police radios.

Detective CARROIL reiterated the only two FBI Agents he hac

ever known to associate with nagi was John Good and Jony Villano.

and

had no information

that either of these had ever been Iurnish

ing NAGI with any confidential infontation concerning FBI investiga-

tions.

He said there was no doubt in his mind, however, that NAGI

had contacts in the New York City Police Department, espacially

in the Safe and Loft Squad in the Brooklyn area, and could well

have been receiving infornation from certain police officers

assigned to this squad.

1

NW 68262. .Docld:32989576 Page 158

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## Page 159

FEL

L BUREAU OF INVESTIGATION

Date of transcription

May 22, 1975

ANTHONY VILLANO, former FBI Special Agent, Retired!

was: interviewed in Room 1511, Westbury Hotel, East

69th Street,

and Madison Avenue, New York, New York. Prior to interview

NEDWARD D. HEGARTY identified himself as a representative of the

Inspection Division, Washington, D. C., and SA J. ROBERT PEARCE

identified himself as an FBI Supervisor, who was previously known

to Mr. VILLANO as an FBI Supervisor.

Mr. (VILIANO) was exhibited a photograph of JAMES NAGI,

Jersey

City

Police Department No. 32899,and he was asked if

he was ever in contact with this person and he was asked to

furnish any information that he might have concerning this

person.

MI- (VILIANO)said that he has no recollection whatsoever

ever having met or been in the company of JAMES NAGI and was at

a complete loss to explain how anyone could say they observed him

on two or three occasions in the company of Mr. NAGI... He was

then exhibited a photograph of GUILLERMO SOWERS, New York City

Police Department Number 3466574 and he said that he has no

recollection of having ever met the person depicted in the

@hotograph. He said that the name GUILLERMO SOWERS or alias PETE

SOWERS were not meaningful to him in any manner.

Interviewed on _ 5/21/75

_a New York, New York

SUPERVISOR EDWARD D. HEGARTY, Rud

SUPERVISOR J. ROBERT PEARCE

by

_EDH/mgh

- File #_ NY 58-1854

5/22/75

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned t

our agency; it and its contents are not to be distributed outside nur agency.

•82

-N. 68262-Docld:32989576 Page 159

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## Page 160

FD-302 (Rev. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

May 13, 1975

Date of transcription -

Mr. FREDRIC GOLDSTEIN, New York State Parole Officer,

was interviewed in his office, 314 West 40th Street, New York,

New

York.

Prior to interview EDWARD D. HEGARTY and CLARK E. BROWN

identified themselves as representatives of the FBI Inspection

Division, Washington, D. C.

It was explained to Mr. GOLDSTEIN that the purpose of

the interview was to determine whether or not JAMES NAGI had ever

stated or indicated to Mr. GOLDSTEIN that he had knowledge of

improper conduct or unlawful activity on the part of any member of

any Federal Law Enforcement Agency, including the FBI.

Mr.

GOLDSTEIN imnediately replied that he does not recall NAGI

ever stating

"ox indicating that he had such information or knowledge in his possession.

reviewed his agency's records relating to JAMES NAGI

and he did not locate any references in the agency's records indicating

NAGI had furnished any information regarding improper or unlawful

conduct on the part of any member of any Federal Law Enforcement Agency.

Mr. GOLDSTEIN said Mr. NAGI was on parole status since

his release from Rikers Island, July, 1973, where he was confined in

March, 1973.

Mr. GOLDSTEIN'S first

contact with him was on July 19,

1973, and

continuous contact was maintained with NAGI by him up antil

his, NAGI's, death.

Mr. GOLDSTEIN said that an approximate estimate

of the number of times that he spoke, personally or telephonically,

with NAGI Would be 200 times. He reiterated thât during the course

of these many contacts he never received any indication whatever that

NAGI had in his possession information alleging improper conduct or

unlawful activity on the part of any member of any Federal Law Enforce-

ment Agency, including the FBI..

Mr. GOLDSTEIN recalled and he refreshed his recollection

from a review of his agency's records that NAGI furnished organized

crime type intelligence intormation to him regaraing GEORGE IROPIANO,

WIlLIAM CUTOlO and others and he, Mr. GOLDSTEIN, in turn brought this

information to the attention of Senior Parole Officer New. York State

JOHN E. EVERSLEY who, he believed, passed the information on to the

New York City. Police

Department.

Interviewed on

5/13/75g Cat

New York, New York

INSPECTOR CLARK

• FI

BROWN and

by

SUPERVISOR EDWARD D. HEGARTY - EDH/mgh

_ File #

NY 58-1854

Date dictated/ 13/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outsido your agency.

NW 68262 Docld:32989576 Page 160

ão ,

---

## Page 161

NY 58-1854

MI. GOLDSTEIN, in the presence of Special Agents BROWN

and HEGARTY, inquired of Mr.. EVERSLEY, who was informed of the FBI's

interest in

what he did with

the information he obtained from NAGI,

and he replied that he furnished the information to New York City

Police Department Lieutenant WHITE at Brooklyn, New York. At first,

Mx. EVERSLEY stated he did not believe he told Lieutenant WHITE that

the information came from JAMES NAGI, but upon further reflection

he thought that possibly he did advise Lieutenant WHITE that the source,

of the information was JAMES NAGI.

Mr. GOLDSTEIN advised that he was informed by NAGI on

April 9, 1974, that he, NAGI, had been threatened by WILLIAM CUTOLO.

He said that about this time, believed to be April 12, 1974, NAGI

complained that he was suffering from leukemia.

Shortly thereafter,

MX. GOLDSTEIN contacted Dr. NICHOLAS LEONIA, who is associated with

the Long Island College Hospital, and learned from Dr. LEONIA that

NAGI was being treated by him for the disease leukemia. He recalled

further that NAGI, subsequent to his arrest on or about March 27, 1974,

was concerned that nis parvie mighi be revoked.

84

_NW-68262-Doeld:92989576-Page-161-

---

## Page 162

FD-302 (Rev. 11-27-70)

FEDURAL BUREAU OF INVESTIGATION

Date of transcription -

May 21c 1975

Detective PHILIP SHEVLIN; Sixth Precinct,

Investigation Division, New York City Police Departmeni, advised

detective assigned to the above Precinct.

th t bruly 197 he was assigned an investigation involving an

art theft that had

occurred in the Greenwich Village Section of

Manhattan, New York. As a result of his investigation, SHEVLIN

stated, he recovered approximately $150,000 worth of stolen art

and arrested, among others JAMES A. NAGI.

After having taken NAGI

into custody, SHEVLIN stated, he was told by NAGI. that he, NAGI,

had been an informant for the FBI and that he had furnished the

FBI with Intormation on hijackina cases..

NAGI offered to furnish

good information to Detective SHEVLIN 1f SHEVLIN would inform the

Brooklyn District Attorney's Office about his cooperation.

In early June, 1974, SHEVLIN said he received a

call from NAGI who told him that he, NAGI, and several others were

going to rob a prominent politician. NAGI told him that they had

quas and badges for this job and that they were going to have the

assistance of two crooked policemen on this particular robbery.

Later SHEVLIN learned that the two policemen were undercover police-

men working for the NADIART Commission and NAGI was actually arrested

for his role in the robbery.

SHEVLIN advised

that he talked to NAGI for quite

sometime and intended to use him further as an informant. At no

time during his conversations SHEVLIN advised did NAGI ever tell

him that he was paying off police officers or members of the

Federal Law Enforcement establishment. The only mention of Federal

Can ya on on in han

Law Enforcement Office that NAGI ever

made, according to SHEVLIN,

was his statement that he was and had been furnishing good hijacking

information to the FBI in New York.

Interviewed on

5/21/75

-if New York, New York

SA KLAUS C. ROHR/mgh

File #

NY 58-1854

5/21/75

by.

Date dictated.

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

8,5

NW 68262 Docld:32989576 Page 162

---

## Page 163

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/12/75

Date of transcription

MC. MICHAPLE• LOVINE, 142 Luquer Street, BrookLyn,

New York, teLephone d,5-0153, was interviewed at his residence.

MI. IOVINE advised that he is currently unemployed but that he is

a member of Local 46, Wire and Reinforced Concrete Setters Union,

AFL-CIO. ME. IOVINE

stated that he has known JAMES NAGI, who

once lived next to him on Luguer Street, since 1970. Since that

time, he advised, he and NAGI have spent a good deal of time in

each others company, even to the point of having been in jail

together.

On June 14, 1974, IOVINE stated he and NAGI had gone

,to the apartment of BOBBY MARIIN, at 427 Iloyd Street, Brooklyn,

New York in order to visit with MARTIN. According to IOVINE,

"there were several other people in the

apartment, most of whom he

did not know.

While he was in the apartment, officers working

for the Special Prosecutor MAURICE NADJARI entered the premises

with an arrest warrant for MARTIN. As far as he recalled, IOVINE

stated all of the people in the apartment, including himself and

NAGI, were arrested and taken to NADJARI's office.

NADJARI's people,

he stated kept them there for 14 hours during which time NAGI

was questioned frequently. Prior to getting out of the custody

Of NADJARI's office, IOVINE advised NAGI had told him not to vorcy

bout this arrest because he's going to be able to get them both out.

IOVINE stated he did not know what NAGI had done

to get them out of jail but stated it was his opinion that NAGI

probably agreed to help NADJARI's investigators. IOVINE went

further to say that it was known to him and his associates that

NAGI had in the past been an informer for various law enforcement

agencies. IOVINE also stated that NAGI was prone to brag about

his connections but that he never bragged about having a connec-

tion or friend within the FBI or any other branch of the Federal

Law Enforcement.

IOVINE advised he recalls that NAGI had told him that

he and ANTHONY TONANI were arrested in New Jersey for hijacking

arrest did not particularly disturb NAGI and he did not act at all

se and he she not act at 211 :

worried about the disposition, if any, of this case. The only case,

according to IOVINE, that NAGI worried about was an arrest for using

Interviewed on.

5/9/75

_ BrOOklYn, Ne X.

KCK

Special Agent KLAUS C. ROHR and

by -

Supervisor J. ROBERT PEARCEN

KCR: DJG

File #

58-1854

_Date dictated._

5/12/75

•This documeni contains

neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned to your agency;

it and its contents are not to be distributed oulside your agency.

86

NW 68262 Docld:32989576 Page 163

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## Page 164

a fraudulent credit darlin 1974. In this case, he said

NAGI was identified by at least one of the victims and he

was very worried about being convicted in that case.

IOVINE also advised that he is familiar with two of

NAGI's associates WILLIAM CUTOLO and GEORGE TROPIANO. NAGI

would usually meet with CUTOLO and TROPIANO at the Burger

Prince located at 65th Street and 8th Avenue, Brooklyn, New

York.

IOVINE also stated that he was never allowed to go

into this place.

Mr. IOVINE again was asked if he had ever been told by

NAGI that he knew someone within the FBI.or any other branch

of Federal Law Enforcement, who was going to assist him in any

of his problems with the law. IOVINE answered that at no

time dia NAGI ever refer to any individual who might be a member

of the rbl or Federal Law Enforcement in general.

IOVINE WaS

also asked if he had ever heard of or been associated with a

New York City Police Officer named EUGENE STATILE. IOVINE

stated he never heard of or been an associate with STATILE.

Mr. IOVINE stated that when he was arrested in 1974,

at, the apartment of BOBBY MARTIN, he was aware of the fact

that the police officers seized a number of guns, as well as .

New York P.D. and Security Police type badges.

As far as

he could recall Mi. IOVINE stated there were no FBI Badges

in the apartment, nor had he ever seen any FBI badges in

MARTIN's possession.

AS tO BOBBY MARTIN, IOVINE Stated he is

currently incarcerated at the Atlantic Avenue Jail in Brooklyn.

IOVINE also stated he had been introduced to a man

named PETE or BILL SOWERS bY NAGI. However, their introduc-

tion and association was limited and he, IOVINE, never gotto

Know SOWERS very well.

Ms. IOVINE advised that during the time that he knew

NAGI he was married to a woman named LINDA NAGI, who resided

next door to him on Iuquer Street, Brooklyn, New York.

In

addition, NAGI spent a good deal of time with a girlfriend

named SUSAN FRIEDMAN, Who sesides at Sheepshead Bay, Brooklyn,

N. Y., telephone 648-5292.

He also advised that NAGI was

extremely close to a sister RESA, who resides at 108th and

Latlands Avenue, Brooklyn, N. Y.

According to IOVINE, NAGI

pent a good bit of time with these two women and most likely

would have confided in them.

87

NW 68262 Docld:32989576 Page 164

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## Page 165

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/16/75

Date of transcription -

NICHOLAS M. CAPUTO advised he resides at 88-85 19th

Avenue, Brooklyn, New York, with his

father and has recently become

the owner of a dairy products store, known as Milk and Honey

Farms, 4th Avenue and 92nd Street, Brooklyn, N. Y. Prior to this,

CAPUTO was delivering pies in the Wall Street area of Manhattan

in 1973 and 1974 for the Mrs. Smith's Pies Corporation.

He said

he did not work during 1971 and 1972 due to ill health associated

with Hepatitis:

CAPUTO stated he was born on June 12, 1938 in New York City,

and he furnished the following information relating to his associa-

tion with JAMES NAGI and other's:

CAPUTO Knew JAMES NAGI for many years inasmuch as they had

grown up in the same neighborhood in Brooklyn.

He was called

before the Kings County Grand Jury in relation to the murder of

NAGI, which occurred in June 1974, but was unable to identify

any of the individuals allegedly associated with JAMES NAGI.

CAPUTO stated that he has no recollection uf any individuals

named

GEORGE TROPIANO, PETE SOWERS OI WILLIAM CUTOLO bui advised he

maight recognize

• them if he were to see a photo of them.

He denied

frequenting the Burger Prince Restaurant in the recent past and

stated he had only been in the establishment two or three times

I not at any time in the last year or year and one-half.

He related that he recently learned of the indictment of

individuals named TRORIANO and CUTOLO for the murder of JAMES

NAGI but does not recall ever having heard of them. CAPUTO

did occasionally speak to JAMES NAGI in the past several years but

had no social or criminal contact with him and claims to have

actually disliked NAGI since he felt that NAGI was continually

attempting to encourage associates to become involved in criminal

activities.

Numerous times during the interview CAPUTO emphatically

denied knowing SOWERS, TROPIANO Or CUTOLO and stated he has

been involved in criminal activities and avoids any

association with individuals who are known or considered to

be hoodlums.

He did state that in 1956 or 1957, he was charged

with rape at the age of 18 but the charge was subsequently

dismissed.

he related when NAGI was killed, he did attend the

wake for NAGI but only because he had known him for years and not

Interviewed on _

5/14/75

_at.

Supervisors Richard F.

Keefe

and Donald E. Hartnett

_File # 58-1854

5/16/75

by -

_Date dictated

RFK: DJG

This document contains neither recommendations nor conclusions of the FEl. It is the property of the FBI and is loaned to your agency;

it and its contents are not la be distributed outside your agency Bo

NW 68262 Docld:32989576 Page 165

---

## Page 166

because of any close association between them.

CAPUTO was queried as to whether he would agree to submitting

to a polygraph examination but emphatically replied that under

no consideratien would he subject himself to a polygraph examina-

tion.

He stated that he had read

enough about polygraph examina-

tions to know that the facts can be twistad in such a fashion

that an innocent individual can become suspect in matters of

which he was not actually involved. Additionally, CAPUTO confided

that everything he had discussed during this interview was in

agreement with

testimony he had provided to the Kings County

Grand Jury auring the inquiry into the murder of JAMEs NAGI.

He emphasized that during the limited contacts he had with

" NAGI, no seference was ever made by NAGI to NAGI having a

source

in any law enforcement agency who gave him access to confidential

police information.

89

NW 68262 Docld:32989576 Page 166

---

## Page 167

FD-302 (P.EV. 11-27-70)

FEDERAL SUREAU OF INVESTICATION

Date of transcription -

5/21/75

NICHOLAS CAPUTO, 8885 19th Avenue, Brooklyn, New York,

was questioned regarding his alleged acquaintanceship with GEORGE

TROPIANO, BILLY CUTOLO and PETE SOWERS.

He repeatedly denied

being acquainted with any of these three individuals, stating that

if he did know them he had no reason to deny it.

A photograph

OF GEORGE TROPIANO was exhibited to CAPUTO and he again denied

knowing the name or recognizing the individual.

It was explained

to CAPUTO that a number of individuals have stated he is acquainte

with the above three individuals but CAPUTO stated this is not

true and he cannot imagine why anyone would make such

an allegation.

Interviewed on -

5/20/75

at Brooklyn. N. Y.

_FilE # 58-1854

supervisors Richard E. Keetek

and Donald E. Hartnett Din

_Date dictated

5/21/75

REK: DJG

This document contains neither recommendaiions nor conclusions of the FBI. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency

90

NWV 68252 Docld:32989576- Page 167

---

## Page 168

INVESTIGATION CONDUCTED TO DETERMINE

WHETHER OR NOI (SPECIAT. AGENT JOSEPH

STABILE WAS INVOLVED IN ANY MANNER

WHATSOEVER WITH REGARDS TO FBI CASE

"PHILLIP LEVINE; JAMES AHMAD NAGI AND

OTHERS; THEFT FROM INTERSTATE SHIPMENT;

ARMED HIJACKING, KIDNAPING" OR NEW

JERSEY STATE INVESTIGATIONS RELATING

TO THIS FBI CASE

NW 68262 Docld:32989576 Page 168

y

---

## Page 169

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/12/75

Date of transcription

Detective JOHN M. TOMASZEWSKI, Jersey City, N. J.,

Police Department, was interviewed at the 2nd Precinct, Jersey

City- Police Department.

TOMASZEWSKI advised that he was

currently assigned to the Homicide Unit but that in 1970,

he was working as a detective in the 2nd Precinct.

When

asked if he recalled a hijacking case involving JAMES NAGI

arrested by Jersey City Police in 1970, TOMASZEWSKI stated that

he vaguely could recall such a case.

TOMASZEWSKI then

reviewed the arrest record of his department and

Located a file number for this arrest, WhiCh took PLaCe

August 31, 1970. The Jersey City Police-Department file

number for this case is 121437: TOMASZENSKI advised that

he would obtain the complete file and refresh his memory

with that file and then make a copy of it available to

the FBI.

:

Interviewed on _ 5/7/75

SA KLAUS C. ROTINER

_at

and

by -

Supervisor J. ROBERI PEARCE,A

Jersey City, N. I.

_File # 58-1854

_Date dictated _ 5/12/75

KCR: DJG

This document contains. neither recommendations nor conclusions of the FBI. It is the property of the FBi and is loaned to your agency;

it and its contents are not to be distributed outside your agenru.

NW 68252 .Docld:32989576. Page 169

92

---

## Page 170

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription_ 5/12/75

MC. EDWARD B. ROSSITER, Deputy Chief, Hudson County

Prosecutor's Office, made available a copy of the Hidson County

Prosecutor's file #70-1528, State of New Jersey VS. JAMES A.

NAGI, ANTHONY PETER TONANI. A review of this file fails to

reflect any mention of FBI contact with anybody in regard

to either NAGI OF TONANI. The only reference to the FBI in

the file is the notation made on August 31, 1970, that FBI

Agent Charles Vaughan assisted in the interview of JAMES NAGI

gran aristen in

and ANTHONY TONANI.

Also on that same date, there is a

notation that FBI Agent Clark of the Newark Office was

notified as to the arrest of NAGI and 'fONANI by officers of the

Jersey City Police Department.

Interviewed on

•5/7/75

at Jersey City. N.J.

SA KLAUS C. ROHRa

by -

supervisor J. ROBERT PEARCEAS

KCR: DJG

_File #_

58-1854

_ Date dictaled _ 5/12/75

This document contains neither recommendations nor conclusions

of the FBl. It is the property of the FBl and is loaned to your agency;

it and its contents are not lo be distributed outside your agar-

NW-68262-Docld 32989576-Rage-170.

93

---

## Page 171

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/12/75

MY. EDWARD D. ROSSITER, Deputy Chief, Hudson County

Prosecutor's Office, made available Hudson County Prosecutor's

Office File 70-1528, State of New Jersey vs. JAMES A. NAGI and

ANTHONY P. TONANI.

The file reflects NAGI and TONANI were

arrested August 31, 1970, by officers of the Jersey City Police

Department and were then charged with armed robbery, assault,

kidnaping, threatening life, receiving stolen goods

and possession

of a deadly weapon.

The file further reflects that no action was

taken in this matter until 3/5/75 when the case was presented

to::a Hudson County Grand Jury and an indictment was returned

charging NAGI and TONANI with violating the above Statutes.

On 4/3/75, TONANI entered a plea of not guilty to the charges.

Mr. ROSSITER advised that he is not familiar with the

case and advised the delay between arrest and indictment is some-

what irregular.

He did state that it appears to him as though

someone nad pulled the file out of the mainstream of the administra~

tive handling and it was not until recently that the file had been

located again.

He stated he could not explain the reason for this

actaon. He did, however, say that as far as he knows neither

NAGI nOr TONANI were ever used as informants by the Hudson

County Prosecutor's Office.

He further advised that he does

not recall any member of the FBI inquiring about NAGI or

TONANI.

He did state he has not been in the Hudson County

Prosecutor's Office for too long and that it would be better to

contact the First Assstant Prosecutor, Mx. MEGILI, who had been

with the office about seven or eight years.

Interviewed on 5/7/75

JerSEy City, N. J.

_File #_ 58-1854

SA KLAUS C. ROHR PU

by -

& SUPERVISOR J. ROBERT PEARCERS

_Date dictated 5/12/75

KCR: DJG

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

94

-NW-68262-Docld:32989576_Page 171

---

## Page 172

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTICATION

Date of transcription -

5/12/75

Mr. EDWARD C. MEGILI, First Assistant Prosecutor,

Hudson County Prosecutor's Office, advised that he has been

with the Prosecutor's Office for the past seven years. During

that time he has always served as one of the prosecuting

attorneys.

ME.

MEGILL then reviewed the Hudson County

Prosecutor's file on the case of the State of New Jersey vs.

JAMES A. NAGI and ANTHONY P. TONANI. After reviewing the file,

Mr. MEGIlL stated that this case was not familiar to him ano

that he was surprised at the length of time between the arrest

in 1970 and

the indictment in 1975. Mr. MEGILI stated that

this is unusual because the Statute of Limitations had almost

• run in this case.

Mr. MEGILL stated that he was unable

to explain this delay other than to say. that the file had been

pulled from their mainstream administrative handling for some

reason, which was not noted in

the file.

The only reason he

could think of, Mr. MEGILI advised, was that one of the

individuals charged, either NAGI Or TONANI, might have been

cooperating with some law enforcement agency and, therefore,

charges against them were held in abeyance.

From the file

arone, however, he could not determine this with any amount oi

certainty.

He further advised that the only two people in the

prosecutor's office that might have some knowlcdae as to

whether TONANI Or NAGI gave information would be THOMAS ST.

PIERRE and MARTIN GREENBERG, who are now working for other

law enforcement agencies.

Interviewed on

5/7/75

_at Jersey City

Special Agent KLAUS C. ROEPPIR

by -

Supervisor J. ROBERT PEARCE,

_Fife #_ 58-1854

_Date dictared - 5/12/75

KCR: DJG

This document contains

neither recommendations nor conclusions

of the FBl. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

95

NW 68262 Docld:32989576 Page 172

---

## Page 173

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of trenscription

5/9/75

On May 8, 1975, Field Supervisor JOHN A. LELWICA

telephonically communicated with Major WILLIAN BAUM, Chief

of-the Criminal Division, New Jersey State Police,

•Trenton,

New Jersey. Major BAUM was supplied with the name of JAMES

32899; FBI Number 534276 E

and asked whether or not this

person had ever been operated

in an informant capacity by

any officer in the New Jersey State Police,

Arter consulting with his record bureau and inter

viewing the officers involved in the criminal investigation

Of. JAMES AFMAD NAGI in 1970,

Major BAUM stated that NAGI never

served in an informant capacity with the New Jersey State Police.

Major Bun identified

the two officers involved in this investi

gation by

the state Police in 1970 as one A. BUCHANAN, Who is

a detective assigned to the Turnpike Patrol

of the New Jersey

State Police and is stationed at

the Newarkc Barracks, and HENRY

WALKOWSKI, who works the Organized Crime Section out

«Little Falls Barracks of the New Jersey State Police.

Hajor. Ball added that although prosecution is still

pending in the matter, the entire case is

now being handica by

the locals, that is the Hudson County Prosecutor's Office.

Major BAUM

indicated he would make either of the above described

officers availabletfor interview at any time desired.

:

Interviewed on

5/8/75

at_ Newark, New Jersey

_File # Newark

Field Supervisor JOHN A. LELlICA / mjlDore dictated

5/9/75

This document contains neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned to your agency;

it and its conients are not to be distributed outside your agenc

96

NW 68262 Docld:32989576 Page 173

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## Page 174

FD-302 (REV, 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/12/75

Date of transcription

Detective JOHN M. TOMASZEWSKI, Homicide Unit, Jersey

City Police Department, furnished a copy of Jersey City

Police Department file #121437, reflecting the arrest of JAMES

NAGE and ANTHONY TONANI On 8/31/70.

Detective TOMASZEWSKI

advised that since reviewing this file, he has been able to

recall this particular case, which he investigated while a

detective in the 2nd Precinct. He stated that the investigation

in this case was conducted with a Newark FBI Agent named

CHARLES VAUGHAN, who regularly worked hijacking cases in

Jersey City, N. J. Other than this agent, TOMASZEWSKI advised

he did not recall ever speaking to any other FBI Agent regarding

this particular case.

TOMASZEWSKI advised that both NAGI and IONANI confessed

to the hijacking and furnished additional information about

other hijackings after their arrest; however, neither

NAGI NOI TONANI ever acted as informants for

the Jersey City

Police Department.

• Interviewed on

5/8/75

SA KIAUS E. ROSAR

by —

Supervisor J. ROBIRI PEARCELA

KCR: DJG

Jersey City, N. J.

_File #_

58-1854

. =

_Date dictated

5/12/75

This document contains reither recommendations nor

conclusions of the FBl. It is the property. of the FBl and is loaned to your agency;

it and its contents are not lo be distributed outside your agency

97

NW 68262 Docld:32989576 Page 174

---

## Page 175

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF LIVESTIGATION

Dato of transcription 5/12/75

On 5/9/75, I reviewed the file captioned, PHILLIP

• LEVINE, JAMES AHMAD NAGI etal; TFIS, Armed Hijacking,

Kidnaping, Newark'15-35089, New York 15-57839.

The closed

filé in Newark showed the case agent was CHARLES VAUGHAN.

Further, that Newark had requested

that New York be

designated as office of origin.

This file review was to

ascertain if the case was handled in other than routine

fashion and specifically if the file indicated(Special

Agent JOSEPH STABILE had indicated any interest in this

investigation.

There was no indication that this matter

had been handled other than in routine fashion.

All copies

of reports were designated for the New York Office. There

Interviewed on .

5/9/75

_at.

Newark, N. J

_File # 58-1854

by _

A 20 i MORE BARGAI

_Dite dictated _

-5/12/75

JRP: DJG

This document contains neither recommendations nor conclusions of the fBl. It is the property of the fil and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

98

"NW 68262-Docld:32989576-Page-175-

---

## Page 176

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dato of transcription.

5/12/75

MI. MARTIN GREENBERG, Director of Police, State of New :

Jerseyi Department of, Higher Education, Kean State College,

Union County, New Jersey, advised that

he had been Chief of

September, 1970*to December, 1974.

the Hudson County Prosecutor was GEOFFREY GAULKINS.

MI. GREENBERG

advised that he had never heard of an individual named ADMAD Of

JAMES NAGI

arrested in 1970 by the Jersey City Police Department

for hijacking and kidnaping. Further, he stated he does not

remember his office doing any type of investigation in this

matter.

He also stated that as far as he can recall nobody by

-the name of AHMAD OI JAMES NAGI ever acted as an informant for

'the Hudson County Prosecutor's Office, while he was working there.

Mr. GREENBERG advised that normally the local Municipal

Magistrates in Hudson County would forward criminal cases to the

prosecutor's office where they would be assigned to a prosecuting

attorney for an opinion. If the case warranted prosecution it

was brought before the Grand Jury for an indictment.

He did state

that the volume of cases referred to the prosecutor's office is

so great that the resulting backlog sometimes caused cases to

be delayed for years before being brought to the Grand Jury.

Mr. GREENBERG advised that THOMAS ST. PIERCE joined

the prosecutor's office in /February 1972 and then quit

approximately a year later.

GREENBERG advised that ST. PIERRE

would have had no reason to deal with the case involving JAMES

NAGI since this was not the type of work he handled.

5/9/75

Interviewed on

Lat

* KCR: DJG

•SA KLAUS C. ROHR

KeR

Newark, New Jersey

58-1854

. *

_Date dictated e

5/12/75

This document contains neither recommendations nor conclusions of the FBi. It is the property of the FS! and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

NW 68262 Docld:32989576 Page 176

2,9

---

## Page 177

FEDERAL BUREAU OF INVESTIGATIC:

5/16/75

Date of transcription.

Mr. Thonas V. St. Pierre, Investigator ior the U.s.

Department of Agriculture, New York Region, advised that he was

an investigator a the Hudson County, New Jersey, Prosecutor's

Office from October 1971 to May 1973. During this time, he

investigated two hijacking cases, among other cases assigned

to him.

Neither of these cases

concerned themselves with a

JAMES NAGI Or ANTHONY TONANI.

St. Pierre advised that he had

never heard of either of these persons and is positive that

neither TONANI nOI NAGI ever acted as informants for the Hudson

County, New Jersey, Prosecutor's Office.

58-1854

Interviewed on -

5/16/75

_at

New Jersey

Kik

Special Agent Klaus C, Rohr

_File #

by -

_Date dictated

5/16/75

KCR: DJG

This document contains neither recommendations nor conclusions of the FBl. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

100

NW. 68262 Docld:32989576 Page 177

---

## Page 178

INTERVIEWS OF PERSONS ASSOCIATED WITH

NADJARI COMMISSION INTEREST IN JAMES

NAGI, JUNE 14, 15, 1974

TV 68262, Docld:32989576 Page 178

101

---

## Page 179

FEI

L BUREAU OF INVESTIGATIO

May 12, 1975

Date of transcription

• RICHARD A. NACHMAN, Attorney, Manhattan Bureau

Chief; Nadjari Commission, was interviewed in his office,

#2

World

Trade Center, 57th Floor, in the presence of Nadjari Commission

Supervisory Investigator JOSEPH TANGEL.

Prior to the interview

EDWARD HEGARTY and CLARK F. BROWN identified themselves as representa~

tives of the FBI Inspection Division, Washington, D. C.

Mr. NACHMAN was asked if during the Nadjari Commission

investigation of New York City Police Officer

EUGENE STATILE he had

occasion to speak with Mr. STATILE Or STATILE'S attorney. He replied

that Mr. STATILE is awaiting trial on charges of extortion and other

• related charges concerning STATILE's alleged shakedown of peddlers

, in Manhattan, New York, and that he has spoken concerning the

STATILE prosecution with both the defendant, Mr. STATILE, and his

attorney. Mr. NACHMAN was asked if, at any time, Mr. STATILE

directly or indirectly or through his attorney said or indicated

that he, Mr. STATILE, was in the possession of any information alleging

improper or unlawful conduct on the part of any member of any

Federal Law Enforcement Agency, including the FBI, and Mr. NACHMAN

said no such statements or indications were made to him or to anyone

associated with the STATILE investigation by either Mr. STATILE OI

his, STATILE's, attorney.

Interviewed on -

5/8/75

New York, New York

INSPECTOR CLARK I.

BROWN and

SUPERVISOR EDWARD

by

P. HEGARTY

- EDH/meh

_ File #

NY 58-1854

Date dictated

5/12/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

our agency; it and its contents are not to be distributed outside your agency

102

- NW 68262. Docld:32989576 Page 179

---

## Page 180

FD-302 (Rev. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

May 12, 1975

Date of transcription i

MARK FEDERMAN, Special Assistant Attorney General,

State-of New York, Nadjari

Commission, 57th Floor, #2 World Trade

Center, was interviewed in the presence of Nadjari Commission

Supervisory Investigator JOSEPH TANGEL. Prior to interview,

EDWARD D. HEGARTY and CLARK F. BROWN identified themselves as

representatives of the FBI Inspection Division, Washington, D. C.

Mr. FEDERMAN was requested to furnish to the FBI

any information he had in his possession regarding statements possibly

made bY JAMES NAGI alleging improper or unlawful conduct on the part

of any member of any Federal Law Enforcement Agency, Including the

FBI.

Mr. FEDERMAN said he was in charge of the inquiry

made concerning one ROBERT MARTIN, who was arrested by New York

City Police Department officers under the command of FRANK SMITH,

Deputy Inspector, New York City Police Department. Incidental to the

arrest of MARTIN, several other persons were held for questioning,

including JAMES NAGI. Some of the information which led to MARTIN's

arrest was furnished to the New York City Police Department by FBI

Special Agent BRUCE BROTMAN who obtained the information from an

informant.

MI. FEDERMAN®

said that at no time during the period

JAMES NAGI was questioned on June 14th and 15, 1974, did Mr. NAGI

state or indicate in any way that he had knowledge of improper or

unlawful activity on the part of any member of any Federal Law

Enforcement Agency, including the FBI.

Mr. FEDERMAN was asked if there were any written

reports covering the time NAGI was questioned, including the details

of what Mr. NAGI said, and he, Mr. FEDERMAN, replied that there are

no such reports in existence and there never have been.

5/8/75

Interviewed on

at a

New York; New York

_ File #

NY 58-1854

INSPECTOR CLARK

F.

by

SUPERVISOR EDWARD

BROWN and

HEGARTY. - EDH/Igh Date dictated -: 5/12/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

NW 68262 Docld:32989576 Page 180

"403

---

## Page 181

PD-302CR0x. 11-26-75

FEL

BUREAU OF INVESTIGATIOI

May 12, 1975

Date of transcription

• Deputy Inspector FRANK SMITH, New' York City Police

Department, was interviewed in his office, 12th Floor, 1 Police

Plaza, New York, New York, in the presence of Sergeant HENRY FLINTER,

New work City Police Department.

Prior to the interview, EDWARD D.

HEGARTY and CLARK F. BROWN identified themselves as

representatives

of the FBI Inspection Division, Washington, D. C.

Deputy Inspector SMITH was asked if he had in his

possession any address books or miscellaneous written notations, which

were removed from or copied from the person of JAMES NAGI during the

time he was being questioned by the New York City Police Department

and the Nadjari Commission on June 14 and 15, 1974. He turned over.

for review xerox copies of notations said

have been in an address

book and on miscellaneous pieces of paper found on the person of

JAMES NAGI. These documents were copied at the time NAGI was

questioned. Deputy Inspector SMITH caused a machine copy to be made

of his machine copy which he turned over to the FBI for permanent

retention.

Deputy Inspector SMITH was asked if he has any knowledge

regarding whether or not JAMES NAGI indicated or stated that he, NAGI,

had any information alleging improper conduct or unlawful conduct. on

the part of any employee of any Federal Law Enforcement Agency,

including the FBI, and he replied that he has no knowledge either direct

or indirect of any such statements or indications made at any time

"by JAMES NAGI.

He said the New York City Police Department arrested

ROBERT MARTIN, date of birth October 21, 1944, NYSI&IS #1613974L, at

#8, on June 14, 1974.

On the occasion of MARIIN's arrest, the New

142 Luqueer Street, Brooklyn, New York, date of birth June 27, 1953,

and JAMES NAGI.

The New York City Police Department believes

that on

this occasion IOVINE and NAGI were returning to MARTIN's apartment,

after having committed an armed robbery.

Neither IOVINE nor NAGI

has been charged with the armed robbery it is believed they committed

on June 14, 1974.

NAGI, when interviewed, indicated a willingness

to cooperate but he provided no information regarding corruption on the pai

of any employee of any Federal Law Enforcement Agency, including the FBI.

5/8/75°

New York, New York

NY 58-1854

Interviewed on -

at

_ File #

INSPECTOR CLARK F. BROWN and

by SUPERVISOR EDWARD D.

/ HECARTY

- EDH/mgh: Date dictated

5/12/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

104

-WW 68262 .Docld:32989576. Page 181

---

## Page 182

NY 58-1854

• Deputy Inspector SMITH further advised that during

the search of MARTIN's apartment,

a number of law enforcement type

badges were found, but none of these were FBI badges.

Inspector

SMITH stated if he or any of his men ever uncover an FBI badge,

they would immediately notify the New York Office of the FBI.

Deputy Inspector SMITH said that some of the information

in his files regarding BOBBY MARTIN and MARTIN's associates was

furnished to the New York City Police Department. by SA BRUCE

BROTMAN of the FBI.

105

_ NW 68262 Docld:32989576 Page 182

---

## Page 183

FD-302 (Rev. 11-27-76

FEL

L BUREAU OF INVESTIGATION

May 12, 1975

• Date of transcription.

• Sergeant HENRY FLINTER, New York City Police

Department, was interviewed in the office of his superior, Deputy.

CLARK F. BROWN identified themselves as representatives of the

FBI Inspection Staff, Washington, D. C.

Sergeant FLINTER was asked if at any time on June

14th and 15, 1974, when he, Sergeant FLINTER, was involved in the

questioning of JAMES NAGI, he received any indication whatsoever

• that JAMES NAGI had information indicating improper or unlawful

conduct on the part of any member of any Federal Law Enforcement

Agency, including the FBI:

Sergeant FLINTER replied that he did

not receive any such indication nor was he, sergeant FLINTER,

ever told by anyone that NAGI had stated or had indicated he

possessed this type of knowledge.

5/8/75

New York, New York

Interviewed on

at

INSPECTOR CLARK

/BROWN

and

SUPERVISOR EDWARD

D. HEGARTY

-EDH/mgh

_ File #

NY 58-1854

5/12/75

by

Date dictated

his document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned t

our agency; it and its contents are not to be distributed outside your agency

106

NV 68262 Docld:32989576_ Page 183

---

## Page 184

• .

INVESTIGATION CONDUCTED TO DETERMINE

WHETHER OR NOT PAUL DE PALO HAD A

CORRUPT RELATIONSHIP WITH (SPECIAL AGENT

JOSEPH STABILE)

107

NW 68262 Docld:32989576 Page 184

---

## Page 185

EDERAL BUREAU OF INVESTIGATIONN

Date of transcription -

5/12/75

Mx. RICHARD SHANLEY, Assistant Chief Attorney, Easterh

District of New York Strike Force, U. S. Department of Justice,

advised that the indiges of his office reflect that in October,

1972, a file was opened on the arrest of four individuals for

violation of Title 18, U.S. Code, Section 472, 371 and 372, Counterfeiting

The four defendants in this case

are listed as VINCENT SINATRA;

PAUL DE PALO, JOSEPH VICTOR MELE and CHARLES ZUMO. All Of the

above defendants were arraigned before U. S. Magistrate CATOGGIO

on October 7, 1972. The Special Strike Force Attorney handling

this case was DAVID RITCHIE. The case wasclosed on 3/14/73.

Mr. SHANLEY advised thac he has no personal knowledge

as to the facts in this case because the case was handled by

another attorney, DAVID RITCHIE. He did, however, make available

"at this time a copy of the entire Strike Fosce file in this matter.

Mr. SHANLEY advised that as far as further records

at the Strike Force reflect, PAUL DE PALO was never used as

an informant by the Strike Force. Additionally, he has no

informacion that another individual by the name of AHMAD NAGI also

knows

as JAMES NAGI had ever been an informant of the Brooklyn, New

York, Strike Force.

Interviewed on

5/8/75

.at.

Brooklyn,

-N.Y.

_File #

58-1854

by SA KLAUS C. ROHDHPR

Sit.

ROBERT. PEARCE

_Date dictated

5/12/75

KCR: DJG

Supervisor

This document contains neither recommendations nor conclusions of the

Pet, It is the property of the FBI and is loaned to your agency;

it and its contents are not to be distributed outside your agency

108

• NW 68262 Docld:32989576 Page 185

---

## Page 186

FD-302 (REV, 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/12/75

Date of transcription

A seview of the Eastern District of New York Strike.

Force file in the case of U. S. VS. PAUL DE PALO and JOSEPH

VICIOR MELE reflects that there were no notations or written

documents relating to any contact between

any Strike Force

Attorney and Special Agent JOSEPH STABILE,)

Federal Bureau of

Investigation, New York.

Interviewed on

5/8/75

BrOOKlYn, New York

_File # 58-1854

by -

SA KLAUS C. ROHR

SUPERVISOR J. ROBERT PEARCENE

_Doie dictated

5/12/75-

KCR: DJG

This document contains neither recommendations nor conclusions

of the FBi. It is the property of the FBi and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

109

NW 68262 Docld:32989576. Page 186

---

## Page 187

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Data of transcripsion.

5/12/75

MI. JOHN DE PALO was interviewed at his home 970 E. 1rà

Street, Brooklyn, New YOrk. Ms. DE PALO advised that he is the

father Of PAUL DE PAID, who resides at 1125

63xd Street, Brooklyn,

New York, Apartment A9.

Mr. DE PALO stated that his son

lives on 63rd Street with his wife BARBARA, whom he married in

September 1974, = after his divorce from his

first wife YVONNE

DE LOUISE. His sons two children, PAUL and

ROBERT, Currently

stay with him, lix. DE PALO stated.

MI. DE PALO advised that at the present time he did

not know where his son was but that he would relay a message

to him and have him call the New York Office of the Federal Bureau

OI Investigation (FBI) •

Mr. DE PALO also stated that his telephone

‚number at 970 E.

43rd Street is

252-9369.

Interviewed on _

5/8/75

Brooklyn, New York.

File, #

58-1854

HeR

bY SA KLAUS C. BOHR & SUPERVISOR

.. Date dictated -

5/12/75

J. ROBERT PEARCE&

KCR: DJG

This document contains neither recommendations nor conclusions of the FBi.

it is the property of the FBl and is loaned to your agency:

it and its contents are not to be distribuled outside your agency. 11.0

NW 68262 Docld:32989576 Page 187

---

## Page 188

FD-302 (REV. 11-27-70)

•

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/12/75

MI. DAVID J. RIICHIE, Attorney for the Eastern Distrikt

of New York Strike Force, U. S.

Department of Justice, advised

that he was the attorney assigned to the case entitled, U. S. vs.

PAUL DE PALO, JOSEPH VICTOR MELE, in Which DE PALO and MELE were

charged with violation of Title 18, U. S. Code, Sections 472,

371 and 372. Aceording to RITCHIE, four people were arrested in

this case but two of the individuals VINCENT SINATRA and CHARLES

ZUMO were actually Secret Service undercover agents. Mr. RITCHIE

advised further that the Secret Service Agent handling this case

was Special Agent ALBERT P. ANGELONE. The arrest stemmed out of

a buy made by ANGELONE and Special Agent LOUIS J. TRAVAGLINO in

October, 1972, at the TWA Terminal, JFK Airport, New York.

agents at that time bought almost $500,000.00 worth of counter-

feit currency from DE PALO and MELE.

RITCHIE advised that the U. S. Grand Jury in the Eastern

District of New York listened to evidence furnished by the Secret

Service Agents in regard to this case on 10/25/72.

Subsequently,

he stated in a letter dated February 7, 1973, addressed to KURT

MUELLENBERG, Deputy Chief, Organized Crime Section, U.S. Depart-

menteol. Justice, he, RITCHIE, recommended that DE PALO and MELE

be prosecuted for violation of Title 18, U.J. Code, Sections 472,

377

and 372. Subsequent to sending this letter, RITCHIE stated

he was approached by the Secret Service andasked not to pursue this

case any further because prosecution of DE PALO and MELE would

endanger a very important informant working for the Federal Bureau

of Investigation.

As a yesult of this request, which he

recalls

was made by Secret Service Agent ANGELONE he,

RITCHIE, closed the

file on 3/14/73, without ever prosecuting DE

PALO Or MELE.

Mr. RITCHIE advised that early in 1973, he was contacted

by two agents of the fBI, who asked if he had any objections to their

speaking to Mr. DE PALO in order to obtain information on crimina

activities in the New York area from him. RITCHIE advised that he

does not recall who the two agents were.

He did say he told them

to go ahead and talk to DE PALO since it did not appear that the

case would be prosecuted.

Other than the two agents who requested

to spoak with DE PALO in 1973, no other representative of the Federal

Bureau of Investigation ever contacted him regarding the case on PAUL

DE PALO.

Interviewed on - 5/8/75

_at Brooklyn, N.

File # 58-1854

SA KLAUS C. ROHRACT

by _

SUPERVISOR J. ROBERT PEARCE

_Date dictated

5/12/75

KCR: DJG

This document contains neither recommendations nor conclusions of the FBI. Il is the properly of the FBI and is loaned to your agency;

it and its contents are nol to be distributed outside your agenc

111

NW 68262 Docld:32989576 Page 188

---

## Page 189

FD-302 (REV. 11-27-70)

FEDERAL BURSAU O: INVESTIGATION

5/12/75

Date of transcription

On May 8, 1975, Mr. Richard Shanley, Assistant Chief

Attorney, Eastern District of New York Striie Force,

volunteered that he personally would make inquiry among

other government agencies to ascertain if AHMAD Or JAMES

NAGI

haâ been used as a confidential source of information by

any other government agency.

On May 12, 1975, Shanley stated that he had ascertained

from DEA and IRS that

they had no indication that NAGI

had been a source of information for their agencies.

was told by U.

S. Customs that they could not ascertain from

their records if NAGI had been

a source of information to

their agency.

He also volunteered that he had not asked

Immigration and Naturalization Service because he did not

feel it warranted

and ald not ask. U.s. Secret service 1I

they used NAGI as a source of information.

Interviewed. on

5/8/75

_at Brooklyn, N. Y.

File # 58-1854

by -

- superior i diet Desert

____Date dictated _ 5/12/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to your agency;

it and ils contents are not to be distribuled outside your agency.

112

NW 68262 Docld:32989576 Page 189

---

## Page 190

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/12/75

Dato of transcription.

MI. PAUL DE PALO was interviewed at the home of his

parents, lo bast surd street, Brooklyn, New YOrk. ME. DE PALO

advised

that his current residence is 1125 63rd Street, Apt. A9,

Brooklyn, New York.

Hie further advised that his telephone number

at this address is 837-1862.

Mr. DE PALO stated he lives at 1125

63Id Street with his wife BARBARA DE PALO, neE CUTOLO. His two

children ROBERT and PAUL 'DE

PALO, however, reside with his parents

JOHN and TERESA DE PALO. This is due to the fact that his wife

BARBARA is emotionally disturbed ana not able to handle the

children at this time. DE PALO advised that both of the children

were from his previous marriage, which had been to YVONNE DE LOUISE.

• He did not marry his present wife until September, 1974. DE PALO

said that he vas introduced to his current wife by her brother

WILLIAM CUTOLO, whom he has known since 1970 to 1971. At the

time that he first met CUTOLO, he said he also met CUTOLO's

associate, GEORGE TROPIANO.

At this time SA ROHR told Mr. DE PALO that the purpose

of the interview was to determine the extent of his association

with CUTOLO and TROPIANO, as well as some information relating

to his arrest for possession of counterfeit money in 1972. SA ROHR

also tola De PAiD that she agents wished to know if either

CUTOLO OF TROPIANO had

a source within the federal Government

Law entorcement establishment and, if so, did this source furnish

him any information legarding his counterfeiting case.

Before receiving an answer SA ROHR told Mr. DE PALO

that he did not have to talk to the agents at this time and that

he had a right to remain silent; however, if he did talk to

the agents, anything he said could and would be used against

him in a court of law. He was also tola that he could consult

with an attorney of his choice and that if he could not afford

an attorney one would be appointed for him, free of charge, by

a judge of the U. S. District Court. Mr. DE PALO stated that

he has an attorney, Mr. Albert C. Aronne,

Suite 1010, 136

Joralemon Street,

Brooklyn, New York, telephone IR 5-1903.

Mr. DE PALO stated that he

would at this time answer as many

questions as he could.

Intervievred on

5/9/75

_at.

Brooklyn, New York

by.

SAS KLAUS C. ROHR

& J. ROBERT PEARCEL

_Date dictated

Supervisor

KCR: DJG

This document contains neither recommendations nor conclusions of the FBI. It is the property of the f:

it and its contents are not to be distributed outside your agency.

113

NW 68262 Docld:32989576 Page 190

_File‹ 7

58-1854

5/12/75

od is loaned to your agency;

---

## Page 191

After his arrest by the Secret Service in October 1972

he, DE PALO, did discuss this arrest with WILLIAM CUTOLO.

CUTOLO, however, did not give him any help or advice on the case.

It was CUTOLo's sister, BARBARA, who directed him to his present

attorney, Mr. ALBERT ARRONE.

After he had engaged ARRONE as

his attorney,

#DE PALO stated he dealt only with him on all

matters relating to his counterfeit case.

DE PALO Stated at

no time did CUTOLo or his associate GEORGE TROPIANO ever furnish

him with any inside information regarding the counterfeit money

case.

Further, neither CUTOLO nOr TROPIANO ever tolâ him or

in any way indicated that they had a source within the Federal

Law Enforcement Establishment.

At this time, SA PEARCE asked

• Mr. DE PALO that as a supposition, if CUTOLO had a source within

• Federal Law Enforcement and had tola him, DE PALO, about it,

would be now furnish this information to the Federal Bureau

Investigation (FRI). MI. DE PALO advised that he could not be

sure if he would furnish

such informacion, but that the whole

question and supposition is irrelevant because CUTOLO never

told him about any. source he had in the Federal Law Enforcement

Establishment.

DE. PALO advised that when he first met CUTOLO in 1970

or 1971 choy were just close social acquaintances but that since

he, DE PALO, had married CUTOLO's sister they have become much

closer to one another.

DE PALO stated he had

less contact with him and had seldom ever

spoken to him because he described TROPIANO as a very taciturn

individual.

DE PALO was now asked if he knew a New York City

Policeman named STATILE, and he advised that he did not.

DE PALO stated that he met DENIS DILLON, the Government

• Attorney prosecuting his counterfeit case only once, when he

was arrested in October, 1972. Since then he has never again

had a meeting with DILLON. DE PALO stated that since his arrest

he has had no contact with the U. S. Department of Justice Office

prosecuting his case and that any and all contacts there have

DE PALO stated that his only other contact with Federal

law enforcement officials was early in 1973 when two agents

of the Federal Bureau of Investigation (FBI) came to see him

at his apactment on 63rd Street, Brooklyn, N. Y.

The two agents

• at that time asked if he could furnish the FBI with information

on criminal activities in the Brooklyn area.

DE PALO stated

that he could not furnish such information and the agents never

again contacted him. DE PALO also stated that he cannot recall

the names of the two agents who contacted him.

114.

NW 68262_Docld:32989576 Page 191

---

## Page 192

•

DE PALO now furnished the following background on himself:

Name

Date of Birth

Place of Birth

Residence

PAUL DE PALO

11/16/39

Brooklyn, N. %.

1125 63xd Street, Apt.

Brooklyn, N. Y.

A9,

Employment

Independent routeman for

Fran Tone Cleaners,

72nd Street and Fort Hamilton

Parkway, Brooklyn, N. Y.

680-7272

Military Service

Education

U. S. Marine Corps, 1957-59

11n years; school oF

Industrial Arts,

Manhattan, New York

Wife

Former wife

BARBARA DE PALO, nEE CUTOLO

YVONNE DE LOUISE, CUrrEnt

address unknown

CHILDREN

ROBERT DE PALO, anã

PAUL DE PALO, JR.

115

NW 68262 Docld:32989576 Page 192

---

## Page 193

FD-302 (REV, 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/16/75

Date of transcription

Special Agent Raymond J. Tallia was interviewed at the

New York Office of the Federal Bureau of Investigation, 201

East 69th Street, New York, N. Y. 10021. Tallia advised that in

October of 1972, a confidential informant told him that two

Brooklyn men JOSEPH MELE and PAUL (last name unknown) were in

possession of a large quantity of counterfeit $20 bills for

which they were hoping to find a buyer.

Special Agent Tallia

stated that he disseminated this information to Special Agent

Albert Angellone of the Secret Service.

Additionally, Tallia

said he introduced Angellone to the informant and then arranged

for the informánt to introduce Angellone to the two men in

possession oi the counterteit money.

Tallia said that this was

million dollars worth of counterfeit $20 bills.

Special Agent Tallia advised that prior to introducing

Special Agent Angellone to the informant, Angellone had told

him that the informant would never be needed to testify in this

case,and that the Secret Service would make several buys and

introduce someone else into the picture in order to completely

sever the informant from the case.

As best as he can recall,

Pallia advisod the case against the two anbjects in this case

has never been prosecuted by the Brooklyn Strike Force because

to do so would endanger the identity' of the informant.

5/13/75

New York

Interviewed on

at

special Agent Rlaus C. Rohy HeR

„Fild #

58-1854

5/16/75

by

_Dote dictated

• KCR: DJG

This document contains neither recommendations nor conclusions of the FBl. Is is the properly of the FBl and is loaned to your agency;

it and its contents are nor to be distributed outsida your agency.

NW 68262 Docld:32989576 Page 193

116

...

---

## Page 194

FD-302 (REV. 11-27-70)

....

FEDERAL BUREAU OF LIVESTIGATION

Dato of transcription

5/15/75

Interviewed on

On May 9, 1975, during interview of PaUl dE PALO

DY SAS J. ROBERT PEARCE and KLAUS C. ROHR, DE PALO waS

asked if he would consent to an interview using the Polygraph.

He was advised by the interviewing Agents that the Polygraph

examination would deal specifically with whether or not he

• had knowledge of his brother-in-law, bille curules naving an

alleged contact in the Federal Government.

DE PALO advised

that he would consult with his attorney and would fumish an

answer at the beginning of the next week. On May 14, 1975

DE PALO attempted to telephonically contact SA ROHR. with

negative results. On May 14, 1975, SA ROHR telephonically

Left a message at both PAUL DE PALO's residence and at the

residence of his father, don di fAl, requesting that

PAUL DE PALO COntaCt the New LOrk OfiiCe.

On the morning of May 15, 1975 PAUL DE PALO

telephonically advised SA PEARCE of the following:

Since the previous interview he has left a message

with his attorney to ask his attorney's opinion of DE PALo

consenting to a Polygraph examination. His attorney has not

returned the call.

He said sinue the previous talk wie the

Agents on his own without consulting his attorney he had

decided against the Polygraph examination.

He said his

a machine,

could work against hin.

stated

that he did not make a nasty decision and nad thought 1u

over and had finally made up his mina that he would say

• "no"

on the previous day, May 14, 1975. He said the request in

a sense was insulting. •

SA PEARCE told him that in the previous interview

he had indicated that he was not certain that he would admit

whether or not his brother-in-law had a connection in the

Federal Government or in the Federal Bureau of Investigation

if he knew this to be a fact.

that he did not have

his brother-in-law had any such connection. SA PEARCE tolà•

5/15/75

New Yock, New York

NY 58-1854

at

File #.

Supervisor J. ROBERT PEARCE,

5/15/75

by

_Date dictated

This document contains neither recommendations nor conclusions of the FBl. It is the property of the Bl and is loaned to your agency;

it and its contents are not to be distributed cutside your agency.

.117

-NV-68262 Docld:32989576 Page 194

---

## Page 195

2

: NY 58-1854

opi

DE PATO because of his cxpressed uncertainty as to

whether he would infomon this specific matter if he

had knowleage of it created an area of doubt, and it was

for this reason that the Polygraph was considered. DE PAIO

was advised that the Polygraph would in no way jeopardize

his case.

Further, that his case was not even within the

jurisdiction of the federal Bureau of Investigation as 1t

Involved a counterielt mauter.

DE PALO said he realized.

this situation, but was still of the opinion chai ine

rolygraph examination may nurt bam, and also he still

considered it insulting.

He stated that what he had told

the Agents previously was "the truth".

DE PATO indicated that he had no free time for the

balance of the week, but would consent to an additional

interview at the first part of the next week and arrangements

could be nade by contacting his residence telephonically.

118

_NW 68262 Docld:32989576 Page 195

---

## Page 196

INVESTIGATION CONDUCTED TO DETERMINE

WHETHER OR NOT THERE EXISTED A CORRUPT

ASSOCIATION BETWEEN JOSEPH GENTILE AND

(SPECTAT AGENT JOSEPH STABILE)

. .

119

NW 68262 Docld:32989576 Page 196

---

## Page 197

FD-302 (Rev. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

May 14, 1975

A review of the New York FBI Office case file

captioned JOSEPH GENTILE, and others; Illegal Gambling Business,

indicates this

investigative matter was never assigned to(SA

JOSEPH STABILE.)

An investigative report dated June 1, 1973,

prepared by SA RICHARD A. GENOVA, captioned JOSEPH GENTILE, and

others, Illegal Gambling Business, reflects that on May 23, 1973,

Special Attorney FRED BARLOW, Strike Force, Eastern DistrICt OI

New York, rurnished advice to the FBI to the effect that sealed

indictments had been handed down by the Federal Grand Jury sitting

in the Eastern District of New York, charging numerous subjects,

including JOSEPH GENTILE, with violations of Title l8, Sections

1955,

371 and 2.

Page 9 Of SA GENOVA's report, cited above, sets forth

infornation regarding the arrest of JOSEPH

GENTILE on May 25, 1973,

DY SAS JAMES I. MAHER and THOMAS

A. VINTON.

A review of evidence maintained with the GENTILE

case file reflects that on October 17, 1972, a search warrant, issued

in the fastern District of New York, for the person of Joseen ceiline,

was executed by SAS THOMAS A. VINTON and R. LINDLEY DE VECCHIO Or

October 17, 1972. Among the iens seized, pursuant to the authority

of the search warrant; was an address book which contains numerous

names and telephone numbers.

On May 14, 1975, the address book was

there are no indications that

the name (JOSEPH STABILE, STABILE'S residence telephone number, the

New YOrk FBI Office published telephone number or the New York FBI

Office contidential telephone numbers were contained therein.

5/14/75

Interviewed an

at

New York, New York

SUPERVISOR EDWARD D. HEGARTY/mgh

_ File #

NX 58-1854

5/14/75

by

-

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned t

your agency; it and its contents are not to be distributed outside your agency.

720

NW 68262 Docld:32989576 Page 197

---

## Page 198

FD-302 (Rev. 11-27-70) •

FEDL

L BUREAU OF INVESTIGATION

MaY 15, 1975

Date of transcription

On May 14, 1975, Supervisor EDWARD D.

HEGARTY reviewed a transcript of a conversation recorded pursuant

, tomnibus Crime Control & Safe Streets Act of 1968 authorized

Title III,

designated

•as EDNY 147, for September 19, 1912.

reading of this transcript reflects that the name (JOSEPH STABILE)

name phonetically similar to JOSEPH STABILE)ãoes not

appear. in the transcript.. In addition, a

duplicate copy of the

original tape recording labelled, "EDNY 147, 9/19/72, Reel #1,

daplicate"

was listened to and the name JOSEPH STABILE or any

name phonetically similar to JOSEPH SIABILE is not contained

among the magnetic voice recordings of conversations between

ERNIE LA PONZINA and JOSEPH GENTILE, also known as JOE LANE.

In addition, a filter copy of the above-

described magnetic voice recording tape was listened to and the

name. (JOSEPH STABILE or any name bearing phonetic similarity

to the name (JOSEPH STABILE) is not contained in the magnetic voice

recording.

There is absolutely nothing whatsoever in the

transcript above or in the magnetic voice recording tapes, cited

above,

by which Supervisor HEGARTY couid reasonably infei that

LA PONZINA OI GENTILE are making reference

"to (SA JOSEPH STABILE

or any other employee of the Federal Bureau of Investigation.

5/14/75

Interviewed on -

.at

New York, New York

_ File #

NY 58-1854

5/15/75

• SUPERVISOR EDWARD D. HEGARTY/mgh

by

Date dictated

Tie agore it cond is mather recond a one not conclusion the Fi, " is the property of the FBl and is loaned lo

1.21

NW 68262 Docld:32989576 Page 198

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## Page 199

FD-302 (Rev. 11-27-70) •

FEI

L BUREAU OF INVESTIGATION.

Date of transcription

May 16, 1975

SA RICHARD A. GENOVA was interviewed on the

premises of the FBI,Office, 201 East 69th Street, New York, New

York. Supervisor HEGARTY was previously known to SA GENOVA as

an FBI. Supervisor assigned to FBIHQ Staff. SA GENOVA was advised

that an allegation had

been received indicating the possibility

that SA JOSEPH STABILE had an improper relationship with JOSEPH

GENTILE, also known as

JOE LANE, and possibly was furnishing him

patton the pen boat

information in an unauthorized manner.

In response to specific questions, SA GENOVA

advised that he was the case agent of the FBI investigation captioned

• "JOSEPH GENTILE and others, ILLEGAL GAMBLING BUSINESS."

, and that he,

• SA GENOVA, had developed excellent informant sources privy to the

activities of JOSEPH GENTILE and others allied with GENTILE'S un~

•lawful activities.

None of these sources ever furnished SA GENOVA

any information whatsoever indicating or suggesting that there was

any relationship whatsoever between SA STABILE and JOSEPH GENTILE

or any improper relationship whatsoever between JOSEPH GENTILE and

any employee of the Federal Bureau of

Investigation.

SA GENOVA advised that during the course of his

investigation of TOSEPH GENTILE: the following electronic surveillance

coverage of GENTILE's activities took place, as indicated by tha

following schema, and all of this coverage was pursuant to authority

of the Omnibus Crime Control & Safe Streets Act of 1968:

EDNY

COURT ORDER

INSTALLATION

TERMINATION

127

128

•129

138

139

139

140

141

142

143

144

5/2/72

5/2/72

5/2/72

7/7/72

7/7/72

8/31/72

7/7/72

7/7/72

8/31/72

8/31/72

8/31/72

5/3/72

5/3/72

5/5/72

7/7/72

7/7/72

8/31/72

7/7/72

7/8/72

8/31/72

8/31/72

8/31/72

5/7/72

5/18/72

5/18/72

7/13/72

8/5/72

9/6/72

8/5/72

7/22/72

9/12/72

9/12/72

9/6/72

5/15/75

New York, New York

NY 58-1854

Interviewed on

at

_ File #

by

SUPERVISOR EDWARD

D.

HEGARTY/mgh

. =

5/15/75

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned lo

your agency; it and its contents are not to be distributed outside your agency.

12.2

• NVL68262- Docld:32989576 Page 199

•-- ..

---

## Page 200

NY 58-1854 •

EDNY -

COURT' ORDER

INSTALLATION

TERMINATION

146

147

=9/8/72

9/8/72

9/12/72

9/19/72

9/19/72

10/19/72

SA GENOVA said that he reviewed all of the trans-

cripts associated with the above-described electronic surveillance

coverage and, 'in addition, he personally listened to a significantly

large sampling of conversations recorded uring the course of the

.

above surveillanceson magnetic voice recording tape. SA GENOVA

reviewed and exhibited to Supervisor HEGARTY administrative records

" reflecting the assignment of personnel involved in the monitoring

of the above electronic surveillances and there was no indication

SA STABILE was directly involved:

He recalled, however, that during

the course of some of the above electronic surveillances directed

against JOSEPH GENTILE, an unrelated electronic surveillance, EDNY

erectronic surveillances. EDNY 145

was monitored in the same room, as were the GENtluE case

resulted from the FBI's invasti-

gation of the case captioned "WORKMEN'S MOBILE LUNCH ASSOCIATION,

INC.; PHILIP RASTELII; und others; ANTI-RACKETEEPING - HOBBS ACT;

RACKETEER INVLUENCED

& CORRUPT ORGANIZATIONS, CONSPIRACY", and

ran from August 31, 1972, until September 14, 1972. SA GENOVA rE-

called thatSA STABILE was present during some of

the monitoring

connected with the GENTILE case.

SA GENOVA exhibited FBI records

relating to the monitoring of EDNY 145, which records indicated

that JOSEPH STABILE was present in the

Monitoring Room on September 8th,

September 11, 12, and September 13, 1972.

SA GENOVA said that the electronic surveillance coverage

in the GENTILE case was highly successful, particularly the micro-

phone coverage afforded GENTILE's residence, in terms of the amount

of significant evidence accumulated. As a result of the GENTILE

investigation, an indictment was returned on May 23, 1973, which

charged JOSEPH GENTILE and numerous other persons with violations

of Title 18, United States Code, Sections 1955, 371 and 2.

On January 18, 1974, Attorney-In-Charge DENIS E.

DILLON, Eastern District of New York Strike Force, Brooklyn, New

York, advised that the indictment returned on May 23, 1973, against

all subjects of the GENTILE investigation would be dismissed.

The

reason for the dismissal, according to Strike Force Attorney DILLON,

as narrated by SA GENOVA, was that there was a fatal flaw in the

123

NW 68262 Docld:32989576 Page 200

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## Page 201

NY 53-1854

harkiling of the magnetic voice recording tapes obtained during the

above-described electronic surveillances. DILLON advised that Strike

Force Attorney FRED BARLOW had failed to cause the sealing of the

tapes by a United States District Court Judge pursuant to the

provisions of Title III, and that the tapes

had rémained in Strike

Force Attorney BARLOW's office for nine months. On January 18, 1974,

Attorney-in-Charge DILLON advised that after consultation with

the Acting United States Attorney, for the Eastern District of New

, York, and his.Depaxtment of Justice superiors, the indictments would

be dismissed because the provisions of the Statute had not been

* complied with.

SA GENOVA said he personally reviewed the physical

evidence seized at various times, as a result of investigative activity

in the GENTILE case, and that from his review of the material seized,

he is confident there are no indications whatsoever of any connection

whatsoever between (Sa SIABILE.)and JOSEPH GENTILE.

SA GENOVA Said that SA JOSEPH STATIE had asolutely

nothing to do with the Strike Force's failure to insure compliance

with the provisions of Title III.

124

-NW 68262-Docld:32989576-Page 201.

---

## Page 202

2%:

• .

INTERVIEWS OF WILLIAM CUTOLO AND HIS

CLOSE ASSOCIATES

= =

. =

NW 68262 Docld:32989576 Page 202

125

---

## Page 203

FD 302 (Rev. 11-27-76. •

FEL

BUREAU OF INVESTIGATION

Date of transcription -

May 21, 1975

Mr. ALFRED SALVIDEO was interviewed at his

residénce, Second Floor, 1274 Tabor Court, Brooklyn, New York.

Mr SALVIDEO advised he is currently very

ill and he does not get

out of the house very much. He stated his usual routine is to

leave his home for a walk about 9:30 in the morning and return by

early afternoon in order to rest.

He did say that in the past,

he had been a close friend of CARMINE CUTOLO, who died about ten

years ago.

He also stated that he has been a very close friend of

GEORGE TROPIANO who was recently arrested fo murder.

ME. SALVIDEO

went on to say that he was also friendly with CARMINE CUTOLO's son,

WILLIAM CUTOLO, but he has not seen either WILLIAM CUTOLO Or GEORGE

TROPIANO for the past fifteen months. The last time he saw these

two individuals was at the Burger Prince Restaurant, 65th Street

and Eighth Avenue, Brooklyn, New York.

Mr. SALVIDEO stated that he had never heard either

TROPIANO Or CUTOLO mention to him or anyone else that they had

contact within the Federal Law Enforcement establishment.

SALVIDEO

adried that he has been around long enough that if such

a conversa-

tion did take place, he would walk away, because he learned from

experience not to listen

to such conversations.

SALVIDEO stated that in the päst he had been arrested

for bookmaking and operating a numbers office.

His last arrest, he

stated was approximately five or six years ago when he worked in a

Brooklyn numbers office with two. other men.

5/20/75

Interviewed on -

Brooklyn, New York

SAS KLaUS C. ROLAfO

and FORD W. COLE -Wl

KCR/mgh

_ File #

NY 58-1854

5/21/75

by

Date dictated

This document contains neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned lo

your agency; it and its contents are not to be distributed out cire your ugency.

126

_ NW-68262-Docld:32989576 Page 203

mortise the tens ax

---

## Page 204

FEl

L BUREAU OF INVESTIGATION

May 21, 1975

Date of transcription

Mr. WILLIAM CUTOLO was interviewed at a picnic

table sitting under an awning in front of the Burger Prince Restaurant,

6521 Eighth Avenue, Brooklyn, New York. At the outset of the inter-

view, SAS KLAUS C.

RQHR and FORD W. COLE identified themselves to

CUTOLO by displaying their credentials. Subsequent to this, SA ROHR

told Mr. CUTOLO that he wished to interview him regarding CUTOLO's

possible connection with some member of the Federal Law Enforcement

establishment. SA ROHR also told CUTOLO that this interview had

nothing to do with his involvement with local authorities.

At this

time, SA ROHR furnished CUTOLO with an "Interrogation; Advice of

Rights" form and asked him to read same. Mr. CUTOLO read this form

and stated that he understood his rights, a's set out therein.

He

advised that he did not want to sign this form, but wouid answer

• questions asked of him.

SA ROHR then asked CUTOLO if he had ever told anyone

that he had a contact within the Federal Law Enforcement establishment,

including the FBI.

Mr. CUTOLO advised that he definitely did not

have any contact with anyone in the Federal Law Enforcement establish-

ment. SA ROHR then asked CUTOLO if he had ever paid money to any

member of the Federal Law Enforcement establishment for information

or help in any enterprise in which he, CUTOLO, may have been engaged.

CUTOLO again emphatically denied ever having done such a thing.

Mr. CUTOLO was next askeú if he ever received any information irom

anyone in Federal Law Enforcement, including the FBI, relating to

the arrest of his brother-in-law PAUL DE PALO for possession of

counterfeit money in 1972.

Mr. CUTOLO answered that he had never

received any information

from anyone connected with Federal Law

Enforcement regarding this case. The only connection he had withthe

case, CUTOLO stated, was that he assisted DE PALO in obtaining an

attorney to represent him in that case.

The attorney he reconnended,

CUTOLO stated, was ALBERT ARRONE, who is currently representing him,

CUTOLO.

Mr. CUTOLO advised that questions asked of him by

SA kOHk a1d not come as a surprise because he had been told by his

brother-in-law, PAUL DE PALO, as well as his cousin, MARK PALUMBO,, that

the FBI had been to see them

asking similar questions.

It was also noted that PAUL DE PALO was on the premises

of Burger Prince working behind the counter at the time of interview.

Interviewed on - 5/20/75

Brooklyn, New York

SAS KLAUS C. ROHR and FORD W. COLE TWE

by KCB ugh

_ File #

NY 58-1854

Date dictated

5/21/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not lo be distributed outside your agency.

127

NW 68262 Docid:32989576 Page 204

---

## Page 205

KCR: mgh

-1-

NY 58-1854

=

On May 20,. 1975, SAS KLAUS C. ROHR and FORD W.

COLE went to the home of WILLIAM CUTOLO at 1584 East 48th Street,

Brooklyn, New York.

After knocking at the door of this residence,

the door was answered by a white female, who identified herself

as Mrs. CUTOLO. SA ROHR asked her if her husband, WILLIAM CUTOLO,

was home. Mrs. CUTOLO advised that he was not home and she did not

know where she could reach him at this time. SA ROHR then left a

• written message with her requesting that Mr. CUTOLO contact him at

the New York office of the FBI as soon as possible.

At 12:38 p.m., Mr. CUTOLO called the New York Office

of the FBI and spoke to SA J. ROBERT PEARCE. At this time, CUTOLO

told SA PEARCE that he had received a message to call SA ROHR and

ifmSÄ. ROHR wanted to speak to him, ROHR could contact him at 745-9300,

where he would be until 2:00 p.m.

SA PEARCE related this message to SA ROIIR and SA

ROHR then called CUTOLO at 745-9300. CUTOLO advised that he was

presently at the Burger Prince Restaurant, 6521 Eighth Avenue,

Brooklyn, New York, and that he would be glad to talk to Agent ROHP.

and would wait for

him at the Burger Prince.

128

MW 68262. Docld:32989576 Page 205

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## Page 206

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

5/16/75

Date, of transcription

JOSEPH SANDBERG, age 70, Apartment 15, 35 Seacoast Terrace,

Brooklyn, New York, advised he is part owner of the Burger Prince

Restaurant, 66th Street and 8th Avenue, Brooklyn, New York, and

furnished

the following information:

SANDBERG has owned the Burger Prince Restaurant for twenty years,

originally in partnership with CARMINE CUTOLO. CARMINE CUTOLO

died approximately three years ago and his interest in the

restaurant was, inherited by CARMINE CUTOLO'S SOn WILLIAM CUTOLO.

WILLIAM CUTOLO actually works at the restaurant each day with

SANDBERG and has frequented the place often for a number of years

Over the past few

years SANDBERG has observed that WILLIAM

CUTOLO was very closely associated with GEORGE TROPIANO, JIMMY

NAGI. and an individual named PETE, who occasionally arives a

taxi.

SANDBERG believes that this individual is identical with

PETE SOWERS. SANDBERG referred to all. of these individuals as

being "bad guys" but stated he has no information as to any

criminal activities they may have been engaged in although he is

aware that TROPIANO and WILLIAM CUTOLO have recently been indicied

for the murder of TIMuy NaCI, which occurred in June, 1974.

SANDBERG stated that he testified before a County Grand

Jury In kings County regarding the alleged murder of JIMMY NAGI

by TROPIANO and CUTOLO and was only able to state that a day or

two before NAGI's body was discovered, SANDBERG had departed from

the Burger Prince and when he returned the following day,

determined that the glass in the front door had been smashed

through and there was indication that this

possibly related to

the incident involving the killing of NAGI.

He reiterated a number of times that the above-named

individuals never confided in him and were particularly careful

to avoid saying anything within earshot that might relate to

criminal activities. He did advise that ANTHONY VILLEROLL waS a

teen-aged youngstet, who hung out in the Burger Prince and also

worked there at times.: He said this individual was acquainted

with all of the above individuals but never discussed any of his

possible criminal activities with SANDBERG, although SANDBERG iS

Interviewed on

5/14/75

__at

Brooklyn, N. Y.

_File # 58-1854

Supervisors RICHARD F. KEEFE

by and DONALD E. HARINETT

_Date dictated _ 5/16/75

REK: DJG

This document contains neither recommendations nor conclusions

of the FBl. It is the property of the FBl and is loaned to your agendyi

it and its contents are not to be distributed outside your agency.

NW 68262 Docld:32989576: Page 206

129

---

## Page 207

now aware that VILLErOEL is incarcerated in a New York State a

Prison.

SANDBERG stated

that at no time did he hear it stated

or' implied by any of the above-mentioned individuals that they

had any contacts within any law enforcement agencies, whey

they could obtain confidential police information.

130-

NW 68262 Docld:32989576 Page 207

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## Page 208

INTERVIEW OF GEORGE TROPIANO, ALLEGED

CORRUPT ASSOCIATE OF SECTAT AGENT

JOSEPH STABILE)

131

NW 68262 Docld:32989576 Page 208

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## Page 209

FD-302 (Rev. 11-27-70.

io..=

FED-

BUREAU OF INVESTIGATIOIN

May 21, 1975

Date of transcription

MK. MARK A. PALUMBO was interviewed on the patio

at the rear of his residence, 176 Auburn Avenue, Staten Island, New

York.

Mr. PALUMBO advised that he is the son-in-law or GEORGE

IROP-ANO and that he has been married to Mr. TROPIANO's daughter

CAROL for fifteen years.

Mr. PALUMBO also stated that during this

time he has visited an establishment known as the Burger Prince

in Brooklyn, New York, on several occasions, and has talked to

both

his father-in-law GEÖRGE TROPIANO and one of his father-in-law's

associates; WILLIAM CUTOLO. During all conversations he has had

with his father-in-law, Mr. TROPIANO, as well as Mr. CUTOLO, he

advised that neither one ever told him that-they had a connection

in Federal Law Enforcement.

As a matter of

fact, PALUMBO stated,

neither men talked much about their business and they never mentioned

any connection that they might have with any person involved in

" law enforcement, either loçal or federal.

Mr. PALUMBO advised that he is currently part owner

of the Fireplace Store, 2655 Richmond Avenue, Staten Island, New York.

He advised that this store sells fireplace accessories.

Prior to

operating a fireplace store, which he has done for at least four years,

he was employed as a sales

representative for RCA Global Communications.

Mr. PALUMBO stated that he heid this position for thirteen years.

PALUMBO also aâvised that he has never resided in Brooklyn, New York :

and that he is originally from New Jersey.

At the time of interview, Mr. PALUMBO's wife CAROL

was also present.

Mrs PALUMBO advised that her father had been a

gambler all his life and he had never told her that he had any

connection or source in any branch of law enforcement.

5/19/75

Interviewed on

Staten Island, New York

_ File #

NY 58-1854

SAS KLAUS C. ROHR and RICIARD E. KEEFE

5/21/75

by

• KCR/ngh

Date dictated

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside your agency.

132

NW 68262 Docld:32989576. Page 209

i

---

## Page 210

FD-302 (REV. 11-27-73)

FEDERAL BUREAU OF INVESTIGATION

Date, of transcription

5/21/75

GEORGE TROPIANO, & Tuttle Street, Staten Island, New York,

was 'read an Advice of Rights form but declined to sign

this form.

However, he stated he had no objection to being interviewed.

TROPIANO Stated he was acquainted with BILLY CUTOLO and PETE

SOWERS, however, he stated he was not well acquainted with JIMMY

NAGI and personally disliked this individual.

TROPIANO related

that he did occasionally frequent the Burger Prince Restaurant,

66th Street and 8th Avenue, Brooklyn, N. Y., where he associated

wich the above-named individuals.

TROPIANO related that although he frequently met and spoke

with CUTOLO and SOWERS he was certain that neither of these

• individuals nor any of their associates, who were occasionally

present during conversations, ever made any diract or implied

reference to having "a connection" with any Federal law enforcentent

officer, which allowed for the obtaining of confidential information.

He emphatically stated on several occasions that he has never

heard of such

"a connection" being referred to by any indiviquals

with thom he has associated.

TROPIANO also stated that he never

heard.

any of the above individuals or their associates make any

reference to having made a pay-off to any Federal law enforcement

officer for intormation or assistance.

TROPIANO advised he has never seen any of the above individuals

in possession of a list of

vehicles used by law enforcement

officers, nor has he ever heard any of these individuals discuss

having access to any such information. He also denied ever

hearing any discussion or reference to an attempt by any of the

above individuals or their associates to obtain radio crystals

to arrange for monitoring of radio frequencies utilized by any

law enforcement agency.

Interviewed on : 5/20/75

_at_ Staten Island, N. Y.

_File #_

58-1854

Supervisors Richard F. Keefek

and Donald E. Hartnett gy

_Date dictated

5/21/75

REK: DJG

This document contains neither recommendations nor conclusions of the FBl. It is the property of the FBI and is loaned to your egency;

it and its contents are not to be distributed ouiside your agener

133

-NW 68262 Docid 32989576 Page 210

---

## Page 211

:

INTERVIEW OF CHARLES PANARELIA,

AN ALLEGED CORRUPT ASSOCIATE OF

(SPECIAL AGENT JOSEPH STABILE)

134

: NW 68262 Docld:32989576 Page 211

---

## Page 212

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Dote of transcription.

5/21/75

CHARLES PANARELLA, who is also known as "The Moose", was

contacted in a coffee

shack at Gate 4 of the Castagna Construction

Company, Richmond Terrace, Staten Island, New York, but refused

to be intervieved, stating that should we have any questions

to ask of him they

should be directed to his lawyer.

Fie refused

to have any further conversation and the interview was terminated.

Interviewed on -

5/20/75

_at.

Staten Island, N.Y.

_File #.

58-1854

supervisors Richard F. Reatef

by -

and Donald E. Hartnett illa

_Date dictated .

5/21/75

RFK: DJG

•This document contains neither recommendations nor conclusions of the FBl. It is the property of the FBl and is loaned to your agency;

it and its contents are not to be distributed outside your agency.

135

NW 68262 Docld:32989576. Page 212

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## Page 213

INTERVIEW OF ANTHONY TUZIO, ALSO KNOWN AS

DUTCHY, AN ALLEGED CORRUPT ASSOCIATE OF

(SPECTAT, AGENT JOSEPH STABILE)

. A

136•

NW 68262 Docld:32989576 Page 213

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## Page 214

FE.

AL BUREAU OF INVESTIGATIC:

Dore of transcription — May 21, 1975

MI. ANTHONY TUZIO, 1778 79th Street, Brooklyn,

New. Yock, was interviewed at his place of business, 6602 14th Avenue,

Brooklyn, New YOrk.

'At the outset of the interview SA KLAUS C. ROER

and SA FORD W. COLE identified themselves as Special Agents or che

FBI. SA ROIR told Mr. TUZIO that he had several questions he wished

to ask him

at this time.

fir. TuzIo told the agents that he is very

hard of hearing and that he is afraid to answer questions because

he may not understand the questions that were asked of him.

SA ROER

then told Mr: TUZIO that he would make the questions as clear as

possible. At this time, SA ROHR also furnished Mr. TUZIO with an

"Interrogation; Advice of Rights" form and asked him to read same.

- After having read this form, Mr. TUZIO advised that he understood his

rights, as set out in the form, but that he did not want to sign

*this form. At this time, Mr.

TUZIO again stated that he was very hard

of hearing and was afraid that any oral questions would confuse hin

and the then asked the agents to submit their questions to him in

writing:

Acting on this request, SA ROHR wrote out the

fohlowing question for Mr. TUZIO:

Did you ever pay any money to any police officer.

federal agent or any other member of the recedal overnment fui any

information or help from such a persón? Mr. TUZIO read the question

and then stated emphatically that he had never done any such thing.

He also said that in ten years he has spoken to one FBI agent, whöse

name he could not recall. At the same time he advised that he has been

contacied about ten times by local enforcement officers. for various

reasons.

At no time, Mr. TUZIO repeated, did he ever receive any

help or information

him.

from any law enforcement officers who contacted

ME. TUZIO also told the agents that he was quite ill.

* at this time and that he was experiencing a lot of pain as a result

of an automobile accident six months ago.

Subsequent to this conversation, the interview was

terminated and the agents left the premises.

Intervicwed of -

5/20/75

ot

SAS KLAUS C. ROHR and

*y

FORD W. COLE - KCR/mgh

Brooklyn, New York

- File #

NY 58-1854

- Dare dictared

5/21/75

This document contains neither recommendations nor conclusions of the fBl. It is the property of the ribl and is loaned to

your agency; it and its contents me not to be distributed outsido

NW 68262 Docld:32989576 Page 214

137

---

## Page 215

INVESTIGATION CONDUCTED REGARDING

ALLEGED ASSOCIATE OF GUILLERMO SOWERS

KNOWN AS "ROBERT NORDORFF"

- -

138.

NW 68262 Docld:32989576 Page 215

---

## Page 216

EDH : mgh

-1-

NY 58-1854

=

On March 11, 1975, SA FORD W. COLE was furnished

the following information by GUILLERMO SOWERS regarding one "ROBERT

NORDORFF" :

• SOWERS advised that NORDORFF is head of security

, for all of the Shop-Rite Stores and stated that he was a retired

Special Agent of the FBI.

While SOWERS was employed by Shop-Rite,

hat, he vas a

" NORDORFF advised him that if SOWERS did not pay NORDORFF $5,000.00,

he would have SOWERS fired. SOWERS had lied in his application for

employment that he had never been arrested, but he had. NORDORFE

found this out, and threatened to have SOWERS fired for this if he

did not pay.

Shortly after this, SOWERS was contacted by a CHARLIE

(LNU), and "T.T. (LNU)", who advised him that they would kill him

if SOWERS dia

not pay the money to NORDORFF. SOWERS went to TROPIANO

and GEORGE TROPIANO, BILL CUTOLO and SOWERS had a "sitdown" in

Astoria, Queens, with "CHARLIE" and "T.T."

• TROPIANO advised these

two individuals that SOWERS worked for him, and got things cleared

up.

Since that time, SOWERS has determined that NORDORFF was involved.

in numerous transactions with TROPIANO and is closely associated

with organized crime figures.

SOWERS further advised that NORDORFF had advised him

that his son was also presently employed by the FBI.

• 139 .

NW 68262 Docld:32989576 Page 216

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## Page 217

FD-302 (Rev. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription.

May 20, 1975

Supervisor JOHN A. LELWICA was telephonically

'contacted by Supervisor EDWARD D. HEGARTY and was requested

to determine through inquiry or some other means whether or

" not any person named "ROBERT NORDORFF" was employed as a

Security Agent, possibly Head Security Agent, by Shop-Rite

Supermarkets Executive Offices, telephone 201-462-4700.

Supervisor JOHN CONNORS, Newark Division,

subsequently telephonically advised Inspector BROWN and

Supervisor HEGARTY that Shop-Rite Supermarkets has in their

employ in their Security Department one ROBERT NOTHDURET, WhO

is said to have a son employed as a Special Agent for the

FBI at FBIHQ.

NOTHDUFT is said to be employed by Shop-Rite

supermarkets in the long Island, New York, area.

Interviewed on

by

(Telephonic)

5/20/75

_at New York, New York

File #

INSPECTOR CLARK F

BROWN and

SUPERVISOR EDWARD D. CARTY - Bm

• Date dictated

NY 58-1854

5/20/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the F'Bl and is loaned t

your agency; it and its contents are not to be distribuled outside •

agency.

140

NW 68262 Docld:32989576 Page 217

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## Page 218

FD-302 (Rev. 11-27-71

FE

BUREAU OF INVESTIGATIO:.

May 20, 1975

Date of transcription

•

A review of FBI Headquarters Telephone

Directory, dated April 8, 1975, reflects one ROBERT H.

& NOTHDURET is employed in the Laboratory Division, Extension

3303, Room 101.

Interviewed on

5/20/75

SUPERVISOR EDWARD D

New York, New York

HEGARTY/mgh

File #

NY 58-1854

5/20/75.

by

Date dictated

This doeument contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is louned in

your agency; it and its contents are not. to be distributed nutside your agency.

141

NW 68262 Docld:32989576 Page 218

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## Page 219

FE

L BUREAU OF INVESTIGATIC:

May 21, 1975

Datc of transcription -

•ROBERT NOTHDURFT, SR. was interviewed in the parking

lot-at the Shop-Rite Supermarket, 3100 Ocean Avenue, Brooklyn,

New York. NOTHDURET advised that his son was an agent stationed

in Washington, D. C., however he was not aware of what his son

did. He advised that his son worked in Top Secret work and was

extremely close mouthed. He said his son never told him about the

nature of his work.

At the outset of the interview, NOTHDURFT volunteered

that we probably wanted to talk to him about WILLIAM SOWERS. When

asked why, he said because he was the worst apple he knew.

Fie

advised that BILL SOWERS had worked for him as Night Manager of

a Shop-Rite store; but did not know where he could be found now.

He said SOWERS had

resided at one time at 175 Webster and at

another time somewhere on Newkirk Avenue, both in Brooklyn, New

York. He advised that SOWERS had a brother PETE SOWERS and would

often use his name.

He advised that PETE" SOWERS worked in the

Bronx in a supermarket, but he did not know where he lived or

exactly where he worked. He advised that CHARLIE SPEROZA was an

Essociate of BILL SOWERS and that an attorney by the name of LEONE

(phonetic), telephone 544-8484, 125-10 Queens Boulevard, Queens,

New York, would know now to get

in touch with SPEROzA.

NOTHDURFI advised that when SOWERS worked for him he had

stolen $3,000.00. He said that in an effort to collect #3,000 for

the company he had threatened to have a guy work SOWERs over.

commented "anything for the company - you know". Following this,

he said that SOWERS came by with two other people.

He described

one of them as an older man with wavy grey hair, whom he described

as the brains.

He, described the other as a young man who was cocky.

He said that they threatened him if he didn't stop trying to collect

the $3,000.00. Following this confrontation, he said he drove off

and had gone only a short distance when he had to stop and he

vomited.

He said he knew then

that they had gotten to him. He

never collected the $3, 000.00.

NOTHDURFT advised that he did not know BILLY CUTOLO Or

GEORGE TROPIANO.

He failed to identify a photograph of either CUTOLO

or TROPIANO at first, however later on he asked to lock at the photo-

5/21/75

Brooklyn, New York

NY 58-1854

Interviewed on -

_ at

File #

Inspector CLARK F

BROWN and

by

supervisor RICHARD E: KEEPE, - CFB/gh

Date dictated

5/22/75

This document contains neither recommendations nor conclusions of the FBI. It is the property of the FBI and is loaned to

your agency; it and its contents are not to be distributed outside vour agency.

142

NW 68262 Docld:32989576 Page 219

---

## Page 220

NY 58-1854

graph of CUTOLe again, at which time he identified it as the

younger of the two people who had come with SOWERS to threaten him.

He again reiterated that this was the only time he had ever met

CUTOLO.

NOTHDURFT advised that he had never told SOWERS Or

the two, mentioned above, that he had any connections whatsoever

with the FBI. He said however, that when the three of them confronted'

him they knew his son was in the FBl and that they accused him of

being a retired FBI agent. He denied that he had ever indicated to

anyone that he could obtain FBI information and, in fact, he could

not obtain FBI information. He stated that he was willing to take

a polygraph examination concerning this or any other information

he had provided.

He advised that he had recently received a telephone

call from the police concerning SOWERS being involved in a murder.

He did not know the name of the victim or the other subjects involved.

He advised

the ndie NAGI meant nothing to him anc denied that he

knew him.

NOTHURFT Stated that other than his son he did not know

any FBI agents and in his work as. Chief of Security he did not come

in. contact with FBI agents.

He advised what limited contacts he

had with law enforcement were with the officers at the 6lst Precinct.

He denied knowing anyone by the name of(STABILe.)or having ever heard

NOTHDURFT stated he is aware that some years ago Hill

Brothers Stores in Brooklyn, New York, made a deal with some highly placed

hoodlums, whereby burglaries of these stores would cease for a speci-

fied payoff.

NOTHURFT was not aware of the amount of money these

hoodlums received from Hill Brothers Stores, but understands it was

a substantial amount.

In addition, he advised that Hill Brothers

Stores were not burglarized for a five-year period, which he,

NOTHURFT understands was the agreed upon number of years during which

time the store would suffer no burglaries.

1.43

NW 68262 Docld:32989576 Page 220

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## Page 221

INVESTIGATION CONDUCTED

STEVE ADAMS

TO IDENTIFY ONE

то.

NW 68262 Docld:32989576 Page 221

144

---

## Page 222

EDH: mgh

-1-

NY 58-1854

On May 16, 1975, Supervisor FREDERICK LONERGAN,

Albany Division, Federal Bureau of Investigation, caused a check

to be made of the New York State Department of Audits, in an

effort to detetmine if New York State has an employee named STEVE

ADAMS working in the New York City area.

It was determined no

, one named "ADAMS" is employed by the State of New York in New York

City. •

Supervisor EDWARD D. HEGARTY caused inquiries to be

made through FBIHQ Liaison Personnel of the United "States Secret

Service, Alconol Tobacco & Firearms Bureau, United States Customs

Service and the Internal Revenue Service, in an effort to determine

if any of these four agencies have an employee named STEVE ADAMS

in the New York City area.

It was determined that none of these

agencies have an employee

assigned to the New York City area named

STEVE ADAMS.

NW 68262 Docld:32989576 Page 222

145.

---

## Page 223

Supervisor Edward D. Hegarty caused a search

to bé made of FBI Headquarters records in an effort to

determine whether or not there is an employee of the New York

office by the name of "ADAMS" and whether or not there has

been any FBI employee at New York City by the name of ADAMS

since January 1, 1970. FBI Headquarters records reflect

that there is currently no employee of the New York Office

by the name of ADAMS.

Since January 1, 1970 through date

of record review April 29, 1975, there were two persons

bearing the surname "ADAMS" employed in the New York Division,

namely:

JOYCE E. ADAMS:

MISS ADAMS was born January 26, 1952, at Newark,

New Jersey.

She entered on duty at New York as a clerk-typist

July 6, 1970, and was promoted to clerk-stenographer November 28,

1971, at New

York. On March 20, 1972, she was transferred Iron

the New York Office to the Newark Office from where she

resigned on August 18, 1972.

Her reason for leaving was to

obtain employment with an employer located closer to her

residence.

A review of Miss ADAMS personnel records reflects

she was a

satisfactory employee.

DONALD HALL ADAMS:

Mr. ADAMS was born December 11, 1913, at Johnstown,

Pennsylvania, and was graduated from Penn State, State College,

Pennsylvania, in 1938.

He entered on duty as an FBI employee

April 26, 1943, and was assigned to the New York Division on

• August 9, 1945, where he remained until his retirement on

June 30, 1972. A review of his personnel records indicates

he was-almost exclusively assigned to non-criminal type

investigations.

There is no indication in his personnel records

that he was ever involved in investigations

organized crime figures.

146

NW 68262 Docld:32989576 Page 223

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## Page 224

MISCELLANEOUS

147

NW 68262 Docld:32989576 Page 224

---

## Page 225

The following information is contained on FBI

Identification Division Record #524276F, dated May 5, 1975,

regarding JAMES NAGI:

Contributor of

Fingerprints

PD NY NY

PD NY NỴ

PD NY NY

PD NY NY

Crim Crt

City of NT.

NY NY

Elmira Rec Center

Elmira NY

Name and

Number

-James Nagi

#B630702

James Ahmed

Nagi

*#630702

James A. Nagi

#630702

• James Ahmed Nagi

#630702

James Nagi

#1172 & 1571

& 2667 Kings

James Nagi

#33236

Arrested or

• Received

12/19/65

2/16/66

3/3/66

4/9/66

4/28/66

5/3/66

PD NY NY

James Nagi

#630702

2/16/70

A Jersey City

sPol Brunswick

New Brunswick

ITJ

James Ahmed Nagi 8/30/70

#328991

James Ahmed Nagi 8/31/70

#D0370259-1

Charge

GL & false

police report

GI auto

Disposition

GI auto

unlic opr

GI auto

(3)..$

• .

PL 3 ots

3-0-0 ea. ct.

Conc JT:

das

34

P1 155.30-5 EE

CL

PL 165.50 D F

Crim post stin

prop

Poss Dang Weapons

(guns)

rob 2A:141 1 NJS

aslt 2A: 90 3

• NJS

kid 2A:118 1 NJS

148

NW 68262 Docld:32989576 Page 225

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## Page 226

Crntributor of

ingerprints

So Jersey City NJ

Name and

Number

James Nagi

#67819

Arrested or

Received

9/2/70

PD NY NY

James Nagi

#630702

7/15/75

PD NY NY

PD NY NY

PD NY NY

Suffolk Co PD

Hauppauge NY

NYC Recep &

Class Ctr

East Elmhurst

NY

James Nagi

#630702

James NagI

#630702

SID 11697300

James Nagi

#630702

SID 1169730Q

James Ahmed

Nagi

#30306

James Nagi

773 954

2/16/72

4/15/72

7/30/72

7/30/72

3/21/73

Charge

Robbery

kidnapping

' Aslt.with Dang

Weapon

Rec Stin Motor

Vehicle

Carry Firearms,

In Motor Veh

1. Pl 105.10 00

E E O Consp to C

Com Hi Jack 2nd

2. PL 160.15.02

BE A Att Rob

lst

3. PL 155.35 00

BE A Att

Gr

Larc 2nd

4. PL 120.10 01

CFF A Att Fel

Asslt P-0-1st

Arrest # 1544

68. Pet

Warrant

PL 155.35-00 D

fel GLA

PL 165.00 A mis

misapp prop

160.15 PL Robb

265.05 PL Poss

Weap

155.35 PL JL

robbery Ist

degree

PL

Disposition

9 mo

149

NW 68262- Docld:32989576 Page 226

---

## Page 227

а лего педі.

Contributor of

Fingerprints

PD

NY NY

Name and

Number

James Nagi

630702

SID 1169730Q

=

PO NY NY

•

PD NY NY

James Nagi

630702

SID 1169730Q

James Nagi

630702

SID 1169730Q

Arrested or

Received

-

12/14/73

12/19/73

3/26/74

Charge

• PL 165.40 2nd

degree crim

poss stin

credit card

PL 155.25 00

PL

PL 165.15-01

theft of

services

1-PL170.10-04-

2na degree forg

Z-PL155.25-00-

petit larc

PL 165.50 CPSP

Ist degree

PL 265.05

Loaded Revolver

PL 170.70

Altered vin #

2nd degree

Disposition

Missing Persons

Unit PD NY NY

James Nagi. DECEASED

TY 1754

6/25/74

nidex 6-58.

Compt 116 ME

. *

NW 68262 Docld:32989576 Page 227

ii.

150

---

## Page 228

FD-302 (REV. 11-27-70)

FEDERAL BUREAU OF INVESTIGATION

Date of transcription

5/14/75.

Recoras of the Imployment Division, New York

City Police Department, reflect that Sergeant aUGENE SIATILE,

during his career in the New York City folice department,

was never assigned to a Brooklyn Command.

111 of Sergeant STATILE's assignments were cither

in the Borough of Manhattan or Staten Island.

Interviewed on

5/12/75

New. York, New York

at

NY 58-1854

_FilE #

SA AUGUSIN

MICEK/rm

5/14/75

by -

_Date dictated

This document contains neither recommendations nor conclusions of the FBl. It is the properly of the FBI and is loaned 1o your agency;

it and its conterrts are riot to be distributed outside your agency.

NW 68262 Docld:32989576 Page 228

i.

151

---

## Page 229

FD-350 (Rev. 7-16-63)

"(Mount Clipping in Space Belovi)

Halt of

FBi probe

denied

WASHINGTON (AP) - A

Justice Deparimoni official

•denied a published report

Friday

night that

FBI

Dirccior Clarcace M. Kelley

had tried to

stop

an

investigation into

the

alleged bribing ni an FBI.

• agent by a repuled member

of the Mafia.

The

Washingion Post

reported that Kolley twice

made unsuccessful attempts

to

stop

the

Justice

Department

prove.

The

newspaper said

the depart-

ment's

investigation

had

been started alici an initial

FBI inquiry intr the bribe

allegation

turned

up

10

evidence against Yew York

FBl agent Joseph Stabile

However,

Justice

Department

spokesman

Rovcri Havel said

he had

examined

official

mem-

• oranda between ciley and

Justice officials on the case

• and said:

""I just can't

interpret

them

as

an

attempt by Kelley to try to

turn off this investization.

Havel added that in the ex-

change of memoranda last

December,

Kelley said that

whatever the FBI might do

administratively in the case

should have no influence on •

the subsequent investigation

by the Criminal Division of

Justice.

The

Justice spokesman i

said Stabile is still with the

FBI and currently assigned

to

the bureau's

Boston

oftice.

(Indicate page, nome of

newspaper, city and state.)

The Journal News

Page 8-A

(Suffern, N.Y.)

saturday,

Date:

• March 29, 1975

Edition:

Author:

Editor:

Title: "Halt of FBI

Probe Denied"

Character:

or

Classiflection:

submiting Office:

Being investigated

152€

NW 66262 Docld:32989576 Page 229

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## Page 230

In Reply, Please Refer to

File No.

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

New York, N.

Y.

May 22, 1975

John Caputo and others;

Bribery; Perjury

On May 20, 1915, Confidential Iniormant NO. I,

who is a member of the La Cosa Nostra

• (LCN) Family

identified as the Joseph Colombo "family" was questioned

regarding any information he might have indicative of

corruption on the part of any employee of the Federal

Bureau of Investigation (FBI). He advised that he has

no specific information whatsoever indicative of bribery

activity on the part of any fBI employee.

Confidential Informant No. 2, who had provided

information in 1972, which resulted in the arrest of Paul

De Palo and others by the U. S. Secret. Service on counter-

feiting charges, was questioned as to whether he has any

information or knowleâge indicative of corruption on the

part of any FBI employee, on May 19, 1975, and he had none.

He did say, however, that George Tropiano has always

claimea to

have a

connection "with the Feds"

This source

had no additional information regarding Tropiano's claim.

Confidential Informant No. 3., who is not a

member of ICN. but is a close associate of certain members

of the Joseph Colombo ICN "family", was questioned on

May 20, 1975, regarding whether of

not he has any informa-

tion or reason to believe that George Tropiano, William

Cutolo, Gregory Scarpa, Joseph Gentile, Anthony Tuzio

or James Nagi had an improper or corrupt relationship with

any member of any Federal law enforcement agency, including

FBI, and he advised that he does not.

EXCiSioNS MADE FOR REASONSOF PRiVACY

NW 68262 Docld:32989576 Page 230

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## Page 231

Confidential Informant No. 4 was interviewed on

May 20, 1915, and this Intormant Is

a member of the Joseph

Colombo ICN "family". He advised that he never heard of

any of his associates having a contact with any FBI employee.

He said that among La Cosa Nostra members, contacts are not

generally disclosed by name. LCN member contacts

are known

by description as a person who could handle a specific

request.

This informant stated that if there was a

contact with any FBI employee, it would be known only

to the boss or underboss in the ICN family. He said that

ICN members would spend any amount of money to. establish

a contact within the FBI but that he never heard that

anyone did in fact have an FBI contact.

This informant

said if there was such a contact he believes he would know

of it, if it exists now, or if it existed back in 1972.

Confidential Informant No. 5, a member of the

Joseph Colombo "family" ICN was interviewed on Mav 9,

1975, and again on May 12, 1975, regarding whether or not

he has

any knowledge or has received any indication that

there is a leak in the New York office of the FBI or elsa-

where in the FBI and he said he has no such information

knowledge.

Confidential Informant No. 6, who is not a member

Of ICN, advised on May 20, 1975, that he spoke with an

associate of WILLIAM CUTOLO On

• May 17, 1975; and that this

associate of CUTOLO said, "Billy said

he has a guy in the

FBI who said he (Billy) is being watched and they

have a

beeper on his car.

The FBI is now on the

source sald he was not present when Billy allegedly made

this statement but he, the confidential informant, believes

his associate received this information from Billy. Cutolo.

This confidential informant said that he never received

any indication prior to this one case

indicating that anyone

had a source: within the FBI.

-2-

NW 68262 Docld:32989576 Page 231

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## Page 232

In Reply, Please Refer to

File No.

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INTESTIGATION

New York, New York.

May 19, 1975

John Caputo;

Et • Al

Bribery; Perjury

New York File 58-1854

On May 14,

and May 15, 1975, Guillermo Sowers,

who is also known by other names, after voluntarily signing

a waiver consenting to a Polygraph examination, was afforded

a Polygraph examination in the New Iork Office

by Supervisor

Ja Robert Pearce, and assisted by Special Agent Klaus G. Rohr.

The purpose of the Polygraph examination of

Guillermo Sowers, also known as, was to determine the truth

statements he had made to the fedcral Bureau

.o1 investigation in which allegations were nade that Billy

Cutolo, George Tropiano and James Nagi, from 1972 until Nagi's.

murder in 1971, at certain periods of time directly told

Sowers or that Sowers was part of a conversation in which

these three individuals alleged that they had a connection

within the Federal Government.

Sowers claimed, among other

things, that this alleged contact was paid money in return.

for information.

The contact was called "Joe the Fed, Our

erlend; The fed, doe. Stubs (per Sowers 'like a theatre ticket

stu'b')".

That on one occasion Cutolo in Sowers presence in

1972 gave Jimmy Nagi a slip of paper with the name(Joe Stabile)

or a

similar-sounding name on it as a person who would help

Nagi

New Jersey. Sowers believed, he stated, that this name

was the contact.

Another point made by Sowers was that

Cutolo, in 1974, had indicated a desire to travel to

Connecticut with Sowers as Outolo was going to visit. "Joe

the Fed", who was. thrn in Boston, Massachusetts.

This document contains neither recommendations nor conclusions

of the FBI.

It is the property of the FBl and is loaned to

your agency; it and its contents are not to be distributed

outside your agency.

NW 68262 Docld:32989576 Page 232

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## Page 233

Interpretation of chartered responses in the

Polygraph examination take into consideration the facts

disclosed by. sowers, such as:

1:.

Sowers has had approximately fifteen Polygraph

interviews and has no belief in them.

?: One commercial Polygraph examination of him

in connection with employment, according to sowers, showed

he was telling the truth when

he lied and showed he was lying

when he was telling the truth.

Sowers,

he "thinks in somersh"

; even though fluent in English, stated

, thereby causing. delays in answers

and which in itself registers on the Folygraph chart and

makes chart interpretation accordingly nore difficult.

4. Sowers at the present time is furnishing informa-

tion involving alleged murders,

including

the murder of Jimmy

Nagi, and the: subject matter at hand creates a situation in

which it is difficult to place sowers under the proper amount

of stress:

A complete set of questions, including relevant

irrelevant, control or guilt complex questions, are included

as an addendum to this memorandum,

in pre ana post-Polygraph interviews.

furnished no additional information. He enlarged on previous

information provided the Federal bureau of Investigation. He

indicated he had no present health problems, no high or low

blood pressure, no respiration problems, was not on medication

ana claimed that he was rested.

The first series of questions, May 14, 1975,

showed routine nervousness. at the beginning of examinations

and questions I and 2. At the iirst relevant question,

Question #3; "Have you deliberately given the FBI any false

information

followed by a relief combined with a change of breathing

pattern..

It is pointed out that chartered reactions at the

first relevant question are not unusual but are indicative

of stress and not necessarily a response showing deception.

- 20.

NW 68262 Docld:32989576 Page 233

---

## Page 234

The strongest emotional response in Series I

was to Question #?, "During the summer of 1972 did you

see Bill Cutolo give Nagi a slip ofpaper with the name

@ee Stabile)on it?"

, answer "Yes":

Additionally, thore is an emotional response to an

answer "No". In the chart

interpretation comparison was made to the responses chartered

"Did you ever deliberately frame

, and to & guilt complex question,

Question #9;. "Were you in any way involved in the Lopensin

murder?", answer "No".

In the control type questions and guilt complex

question, emotional responses were less than the pertinent

question, i?, and particularly to a lesser degree question,

In an effort to place Sowers at the proper stress

level and to chart responses to a known lie, he was requested

to choose a number between 3 and 8, and thereafter, in Series

2, when asked to answer No to such

questions, i.e., "Did you

choose #1; Did you choose #2", etc.

The known lie was recorded at Question 15, and

shows changing in breathing pattern, a readily noticeable

rise in the Galvonic skin response,

with a slignt increase

in blood pressure, followed by a more routine rhythmatic

breathing pattern, and less body movement or deep sighs being

noticeable.

Immediately at the completion of Series 2,

Sowers was advised that the exact same questions asked in

Series I be repeated in the order they were asked in Saries 1.

The chartered responses in Series 3 were again of

similar severity with the most noticeable being a response to

Question #7, dealing with an alleged slip of paper with the .

nane Joe Stabile on it, and to a lesser degree question #3:

directed towards ascertaining if Sowors had deliberately given

the Federal Bureau of Investigation false information about

"Joe the Fed".

-3=

NW 68262 Docld:32989576 Page 234

---

## Page 235

It is the opinion of the Polygraph operator

that Sowers.has furnished some false information to tha;

Federal Bureau of Investigation (Question #3) and has

not told: the complete truth in response to Question it?.

At this point Sowers was questioned in regards to the

emotional responses chartered and made the point that he

believed

told him,

reiterated that most of the information he know came

from Cutolo in regards to "Joe the Fed". Sowers continued

to maintain that he was being truthful, as to what he had

been told personally; but made the point that he had caught

Cutolo in several lies.

however.,

that he believed some of the information that Cutolo had

told him about

"Joe the Fed" because of the facts of the

situation involved, such as being given a list d automobiles

and trucks by description and license numbers allegedly being

used by the Federal

Bureau of Investigation Agents in 1972.

In Series 4, Question. #3, dealing with a list of

cars given Sowers. by Cutolo shows no emotional responsas

indicative of deception, nor is there an erotional response

to Question #5, dealing with the point whether or not Cutolo,.

in Sowers presence,

gave Nagi instructions to set up an

appointment with "Joe Stubs"

There is a chartered resyonse

to control queenion, "Have you ever committed a crine

you have not

', answer "Yes"..

There is

greater response to question #y,

"Did you hear Cutolo say he

paId $5,000.00 for good information?"

, answer "Yes".

It is the opinion of the Polygraph examiner that

Sowers has not told the complete truth in regards to this

particular point. It is noted, however,.

the response could

possibly be one of confusion as Sowers had told varying

accounts of this, and at first indicated that this conversa-

tion pertained to another "Fed"

, possibly naned Adams. • The

point.of Adams was cleared up during interview and it is

probable that if thore was an additional contact named

the contact was with the New York State authorities

investigating liquor and cigarette tax matters as Adams

allegedly furnished information in regaras to these activities.

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## Page 236

Question number 7, dealing with the statement that

An Imery Air Freight truck was alleged to be on the list

of cars being used by Federal Bureau of Investigation agents in

1972.

The responses do not necessarily indicate deception.

Series 5 was at the end of the day and because of the

fatigue factor, no interoretation is being made of any of the

questions involved.

Pertinent points of relevant questions

were repeated on May 15, 1975.

There were no significant emotional responses

chartered in Series 7:

In Series 8 the most reaction was to Question #9,

an irrelevant question, "were you in the Marines'"

, which indicates

Answer

that sowers probadly nas not told the

•complete truth about his service in the United States Marines.

The possibility exists that the response may have been in

connection with activity legal or illegal while sowars was

in the Marines..

To the control question, "Have you ever smoked

pot in your life?"

Answer - "Yes", there is also a significant

emotional response.

These responses were greater than to any

of the relevant questions.

There was a slightly severe response

to Question #8, answer

noted that Sowers smiled when being asked this question, and

muscular movement of the smile was chartered and it is noted

in pointing.!

out that the response is probably not one of

deception.

series #9 shows a noticeable response to question ivo".

"Did you lie to any of my questions yesterday? Answer -

1o control Question 15; "Did you ever commit a crime in

Florida you have not confessed to?" shows a less severe

emotional response.

sowers said the crime was failure to pay

alimony.

Series #i0 shows no severe emotional responses.

-5-

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## Page 237

Series #1l, almost direct interrogation, was

airected towards ascertaining if Sowers was truth telling

when le stated that "Joe the Fed" originally was a contact

for Joe Gentile, also known as Joe Lane,

Scarpa) and Dutchy, whose complete identity is unknown to

Sowers. Additionally, efforts were made to ascertain if

Sowers knew any of scveral other people. There was no

strong emotional response indicated to

any of the questions.

There was; however, beginning at Question #6, chartered

reactions caused by Sowers swallowing.

There was no conclusion

that there was a deceptive answer to any of these questions.

The final series was a repeat of Series #1. There.

was similar chartered reactions to both question #3 and

Question #? of this series, which again indicates that Sowors

is not telling the complete truth to the Federal Bureau of

Investigation and has not told the complete truth in regards.

to his statement that he has seen the name (Joseph Stabile)

or a similar sounding name on a piece of paper in 1972.

In the post-Polygraph interview, Sowers was'

questioned

as to now ne coula recall a name on a piece of paper in 1972

and had never had the name repeated to him since that date.

He said he had a photographic memory. It is indicated that-

the possibility exists that Sowers did see a name being written

on a piece of paper, but is at this date reluctant to change

his story and perhaps admit that he cannot recall specifically

what the name is on the paper.

The conclusions

made by Polygraph examiner are made

with limitations and considerations as set forth above.

- 6-

NW 68262 Docld:32989576 Page 237

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## Page 238

GUILTERMO SOWERS

NX 58-1854

May 14, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER.

SERIES I

I. Is your last name SOWERS. Answer - Yes.

2. Are you called PETE. Answer - Yes.

• 3.

Have you deliberatily given the FBI any false information

about JOE the FED. Answer - No.

• 4.

Do you drive a car. Answer - Yes.

5.

Lid anyone

ever instruct you to give false information

to the FBI. Answer - No.

6... Did you ever deliberately lie to frame someone. Answer - No.

7°

During the summer 1972 did you see BILL CUTOLO give

NAGI a slip of paper with the name (DOF STABILE)on it.

Yes.

8.

Did you ever do anything you are ashamed of. Answer - les.

9. Were you in any way involved in the IOPENSIN murder. Ans. - lio.

10. Have you lied to at least one question in this test. Ans. - No

NWV 68262 Docld:32989576 Page 238

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## Page 239

GUILLERMO SOWERS

NY 58-1854

May 14, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES II

1. Did you choose

number l. Answer - No.

2. Did you choose number 2. Answer - No.

3. Did you choose number 3. Answer - No.

4.

Did you choose number. 4. Answer - No.

5: Did you choose number 5. Answer - No.

6.. Did you choose number 6. Answer - No.

7. Did you choose number ?. Answer. - No.

8. Did you choose number 8. Answer - No.

9. Did you choose number 9. Answer -No.

• 10. Are you sitting on aumber 5.

Answer - Yes.

NW 68262 Docld:32989576 Page 239

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## Page 240

GUILLERMO SOWERS

NY 58-1854

MAY 14, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES III

1o. Is your last name SOWERS. Answer - Yes.

2.. Are jou called PEIE. Answer - Yes. .

3. Have you deliberately given the FBI any false information

about JOE the FED. Answer - No.

4. Do you drive à car. Answer - Yes.

5. Did anyone ever instruct you to give false information

to the FBl.. Answer. - No. .

6. Did you ever deliberately lie to frame someone. Answer - No.

Tid the a did you see i us it was. te

8. Did you ever do anything you are ashamed of. Answer - Yes.

9. Were you in any way involved in the LOPENSIN murder. Ans. - a

10. Have you lied to at least one question in this test. Ans.

NW 68262 Docld:32989576 Page 240

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## Page 241

GUITTERMO SOWERS

• NX. 58-1854

MAY 14, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES IV

1. Were you born in Cuba.

Answer - Yes.

2. Were you born in January. Answer - Yes.

3. In the summer of 1972 dia CUTOLO tell. you he got a

list of cars from "his friend the Fed.". . Answer -. Yes.

4. Are you married. Answer - No.

5. In 1972 did you hear CUTOLO tell JIMMY NAGI to set up

an appointment with "JỌE STUBS!. Answer - Yes.

6. Have you ever committed a crime you have not confessed.

7. Did you ever see any inery Air Freight truck at the

Burger Prince. Answer - Yes.

8. Did you like to read.

Answer - No.

9.

Did you hear CUTOLO say he paid JOE the Fed up to

#5,000.00 for good information. Answer - Yes.

10. Did you answer questions in this test truthfully.

4775. w

Yes.

Ans.

- Y€

NW 68262 Docld:32989576 Page 241

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## Page 242

GUILLERMO SOWERS

NY 58-1854

MAY 14, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES V

•1.

Do you

watch TV.

Answer - Yes.

2. Are you wearing a blue shirt. . Answer - Yes.

3. In 1974 dia CUTOLO tell you that JOE the Fed was in

Boston.

• Answer - Yes.

4.. Are you also known as BILl. Auswer - Yes.

5. Has anyone other than CUTOLO, GEORGE and JAMES NAGI •

ever told you about "JOE STUBS".

Answer - No.

6. Other. than your wife, did you ever shoot anyone during

the commission of a crime.

ARSwer - No,

7. Did you ever tell us (FBI) a lie about JOE the Fed. Ans.

8. In 1974 dia CUTOLO tell you "JOE STUBS" was going to

WOrK fOr WHITEY TROPIANO's men.

Answer. - Yés..

9. Did you ever live in florida.. Answer - Yes.

10.

Did you answer all the questions in this test

truthfully. Answer - Yes.

- No:

Question 8 was admitted.

At #s the question :asked

was, "Did you answer that last question truthfully."

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## Page 243

•GUILHERMO SOWERS

NY 58-1854

MAY 14, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERTES VI

I. Are you called PElE.

Answer - Yes.

•2. Did you ever meet "JOE STUBS".

Answer -Ño.

3. Are your eyes brown. Answer - Yes.

4. Did you ever bribe a cop.

Answer - No.

5o Are your shoes black.

Answer - Yes.

6. Did the badges you saw have United States Department

of Justice on them.

Answer - Yes.

7. Did you lie about not recognizing any person in the

photographs I showed you today.

Answer - No.

4

8. Are you married: . Answer - Yes.

9. Did you lie to any. of my questions in this test. Answer -Ño.

NW 68262 Docld:32989576 Page 243

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## Page 244

GUILLERMO SOWERS

NY File. 58-1854

MAY 15, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES 7

1. Were you born in Cuba.

Answei - Yes.

2. Do you live in the USA.

Answer - Yes.

Did you hear anyone other than CUTOLO say JOE the

Fed was in Boston, Massachusetts.

Answer - No.

4. Do you like sports.

Answer - No..

5. Did you ever read the name (JOE STABIL)in the newspapers. Ans.

6.. Did you ever pull. the trigger during a holdup. Answer - No:

until today, has anyone told you about reading

the name JOE STABILEgin the newspapers.

Answer - No.

8. Are your eyes brown.

Answer - Yes.

9. Have you lied to any questions in this test.

Answer - No.

NW 68262 Docld:32989576 Page 244

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## Page 245

GUILLERMO SOWERS

NY File 58-1854

MAY 15, 1975

J. ROBERI PEARCE

POLYGRAPH EXAMINER

SERIES 8

I. Are your shoes black. Answer - Yes.

2. Are you now in New York. Oity..

Answer - Yes.

3. Were you born in Cuba. Answer - Yes.

4. Did NAGI ever teli you he was an informant for the

FBI. Answer - No.

5. Is your shirt blue..

Answer - Yes.

6. Did you ever meet a friend of GRaGORY's called NINO. Ans. - Iù

7. Have you ever smoked pot in your lafe.

Answer - Yes.

8.

Do you believe you will be rewarded for telling the

FBI about JOE the Fed.

Answer - No.

9. Were you in the Marines.

Answer - Yes.

10.

Did NAGI ever tell you the name of any fBI Agent he

knew.

Answer - No.

Il.

Did you answer all the questions in this test truthfully.

Answer - Yes.

NW 68262 Docld:32989576 Page 245

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## Page 246

GUILTERMO SOWERS

NY File

58-1854.

May 15g

1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES 9

I. Do you. like IV.

Answer - Yes.

2. Are you married..

Answer - Yes..

30. Do you speak Spanish.

Answer - Yes.

4. Did you lie to any of my questions yesterday.

Answer

5. Did you ever commit a crime in Florida you have not .

confessed to.. Answer - Ies.

Б.

Did NAGI ever tell you he got a list of FBI cars from

a COp. : Answer - No.

7.. Are you in New York.

Answer - Yes.

8.

Did you ever hear anyone say they wanted to frame an

FBI Agent.

Answer - No.

9. Is your hair brown. Answer - Yes.

10.

Do you know for sure if VILLEROEl knew about JOE the

Fed.:

Ariswer - No.

il. Have you lied to any questions in this test. Answer - No. ?

NWV 68262 Docld:32989576 Page 246

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## Page 247

GUILLERMO SOWERS

NY File 58-1854

May 15, 1975

J. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES 10

1. Are you in New York.

Answer - Yes..

2. Have you ever been in Canada,

Answer No:

3. Dia PAUL DE PALO ever tell you he knew about Jol the fed.

Ans

No.

4. Is your shirt blue.

Answer - Yes.

5. Dia you ever hear VILEROEL say he knew JOE the Fed. Ans. - Id

6. Are you afraid to admit to any crimes you committed while

in the Marines.

Answer - No.

7. Dia ANGELO TONO ever discuss the name JOE STABILE with

you.

Answer - No.

8. Are your eyes brown. Answer --Yes. ::

9..

Before this week did Detective JACK NULTY ever discuss

the name

. JOE STABILE with you... Answer - No.

10. Did you lie to at least one question in this test. Ans: - No.

NW 68262 Docld:32989576 Page 247

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## Page 248

GUILLERMO SOWERS

NI FILE. S8-104

May: 15, 1975

j. ROBERT PEARCE

POLYGRAPH EXAMINER

SERIES 11

1.

Did you go to college.

Answer - Yes..

2. In the Marines, were you in Camp LeJune.

Answer - Yes.

3. Did BILL CUTOLO ever tell you JOE the Fed was a

: connection for JoE LANE.

Answer " Yes.

4 Are you in the USA..

Answer - Yes.

•5.

Did BILI CUTOLO Or GEORGE tell you JOE the Fed was

a contact of GREG.

Answer - Yes.

6.

Did you ever steal money from a friend.

Answer - Ies.

Did BIII CUTOLO tell you JOE the Fed was a contact

Of DUTCHY.

Answer - Yes.

8. Are you in New Jork.. Answer - Yés.

9. Do you know anyone named (PONY VILIANO)

Answer - No.

10.. Do you know anyone in New Iork named GENE SiABIlE, Answer - Io.

11. Do you know a detective named CARROlt.. Answer - No.

12. Do you know anyone named JOSEPH SCHIAFFINA. Answer - No.

13. Do you know anyone named GENE STArILE.

Answer - No.

NW 68262 Docld:32989576 Page 248

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## Page 249

GUILTERMO SOWERS

NY File 58-1854

May 15; 1975

J... ROBERT PEARCE

POLYGRAPH. EXAMINER

SERIES 12

Series. 12 was

a re-run. of the identical questions

used in Series 3 on May. 14, 1975.

Answers same as Series 1 and Series 2o

NW 68262 Docld:32989576 Page 249

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