Document date: 04/17/2018
Document type: PAPER-TEXTUAL DOCUMENT

## Page 1

FEDER

_REFORTING OFFICE

NEW ORLEANS

TITLE OF CASE

CARLOS MARCELLO, aka

BUREAU OF IN

ESTIGATION

OFFICE OF ORIGIN

NEW'ORLEANS

DATE ..

4/9/69

INVESTIGATIVE PERIOD

10/29/68-3/28/69

REPORT MADE BY

-I:"

SA JOHN C. MC CURNIN, II

CHARACTER OF CASE

AR

TYPE!

m

REFERENCE:

New Orleans report of SA JOHN C. MC CURNIN, II,

11/25/68.

INFORMANTS:

Identity of Source

NO T-3 is NO 1434-C-TE

cards

CON VIC.

AUTO.

,NO T-9 is NO 1232-C-TE

ACCOMPLISHMENTS CLAIMED

•FÜG.

FINES

SAVINGS

SPECIAL AGENT

APPROVED

IN CHARGE

PIES MADE:

- Bureau

(92-2713)Rm)

-USA, New Orleans

1

- Departmental Attorney OWEN NEFF,

New Orleans

- Jackson

Memphis

(INFO)

- Mobile

2

- Houston

10 - New Orleans (92-36)

Dissemination Record of Attached Report

Agency

CC. AAG, Criminal Division,

Request Recd.

Date Ewd.

How Fwd.

By i

Organized Crime and Racketeering

Section, Room

2574

4 APR2 3 1969

DocId: 32577900 Page 1

Contacting Agent

SA THOMAS L COLARELLI;

SA JACK EVANS MEHL

SA REED W. JENSEN

[X] NONE

RECOVERIES

ACQUIT-

TALS

CASE HAS BEEN:

PENDING OVER ONE YEAR

XYES LINI

PENDING PROSECUTION

OVER SIX MONTHS

"YES DINS

DO NOT WRITE IN SPACES BELOW

92-2713

1-516

REC 27

3

APR 14 1969

Notations

TAKE

STE: SEET,

COVER PAGE

104823-69

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## Page 2

NO 92-36

JCM - SMJ

INFORMANTS (CONTINUED) :

Identity of Source

NO

• T-18 is Detective JERRY

WILLIAMSON, Jefferson

Parish Sheriff's Office

(By Request)

NO T-20 is PCI CAROLYN KAY

MORRIS

NO T-21 is NO 1697-PC

NO I-27 is NO 1594-PC

NO T-28 is Detective ASHTON

Jefferson Parish

(By Request)

NO T-29 is Captain FRED ROTH,

Jelierson Parish Sheriff's

Office Intelligence

(By Request)

NO T-36 is New Orleans Police

Department Detective

CHARLES PARKS (By Request)

NO T-38 iS PCI JANICE GROSS

NO T-40 is Former NO 1715-PC

NO I-41 is NO 1561-PC

NO T-42 is NO 1499-C

Location of Information

SA JOHN C. MC CURNIN, II

SA PATRICK I. COLLINS, JR.

SA JOHN C. MC CURNIN, JR.

SA TROY H. GIST

SA JOHN C. MC CURNIN, II

SA JOHN C. MC CURNIN, II

SA JOHN C. MC CURNIN, II

SA JAMES W. SMITH

SA. THOMAS L. COLARELLI

SA JOHN C. MC CURNIN, II

SA TROY H. GIST

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NO 92-36

JCM - Smy

INFORMANTS (CONTINUED) :

Identity of Source

NO T-43 is SA 775-C-TE

NO I-44 is NO 1712-PC

NO I-45 is NO 1635-R (PROB)

NO T-46 is NO 1435-C-TE

NO T-47 IS DAVE LETTERAL,

Jefferson Parish Sheriff's

Office Intelligence

(By Request)

NO

• T-48 is Mr. BILL GREEN,

Manager, Bourbon Orleans

Hotel

NO I-49 is NO 1748-PC

NO I-50 is Officer BILL

BARFIELD, Long Beach,

California Police

Department Intelligence

NO T-51 is NO 1487-C

NO I-52 is NO 1734-PC

NO T-53

is Mr. HENRY THOELE,

Small Business Administration

Employee

Location of Information

San Antonio Agent

SA PATRICK J. COLLINS, JR.

SA NATHAN O. BROWN

SA THOMAS I. COLARELLI

SA JOHN C. MC CURNIN, II

SA JAMES W. HARDISON

SA JAMES W. HARDISON

Los Angeles Agent

SA JAMES FRANCIS WRIGHT

SA JOHN C. MC CURNIN, II;

SA THOMAS

L. COLARELLI

SÀ JOHN C. MC CURNIN, II

C

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NO 92-36

JCM - SMJ

LEADS:

HOUSTON

check and it Hot cow, Texas

AT HOUSTON, TEXAS. I) Will report results of indices

credit check concerning BERNARD GERSZON.

subject.

2) Will maintain contact with HO 1293-PC concerning

3) Will, if feasible, interview PHILLIP YAMIN,

Pepperoni Pizza VIllage, and determine if he knows MARCELLO

JACKSON

AT BILOXI, MISSISSIPPI. Will check with established

sources

at the Broadwater Beach Hotel re MARCELLO and his

relatives visiting this area of Mississippi.

'AT GULFPORT, MISSISSIPPI. I) Will determine if an

individual by

the name of GUISSIPPI or COSANDRA is known to

authorities of that area and if he is associated with MARCELLO.

2, If the identity of such

an individual is

established, will attempt to determine if he has recently

been in Vicksburg, Mississippi for the purpose of establishing

prostitution and

gambling.

BIERMAN and VICK APART, IST,

1) Will interview BERNIE

Manager, Magnolia Manufa-turing

Company, re their association with CARLOS MARCELLO. It being

noted that BIERMAN listed as

staying with JACK KENT. in

adjoining room, Bourbon Orleans Hotel,

"tO CARLOS MARCELLO

and other New Orleans hoodlums over Mardi Gras period.

2) Will interview JOHN M. KENT, Post Office Box 127,

re his association with MARCELLO.

Determine if he owns

aircraft and if he has ever flown MARCELLO between New Orleans

D

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NO 92-36

JCM - Smj

and Mississippi. Determine if he is related to DICK KENT,

who formerly ran the Speakeasy Lounge, which

was a gambling

casino located outside Lafayette, Louisiana.

MOBILE

AT MOBILE, ALABANA. Will interview KENNETH O'DAY,

and determine if be is acquainted with CARLOS MARCELLO. Will

determine if he received financial help from MARCELLO when

purchasing Blue

Lake Manor

as President of Gulf Coast Technical

Institute for

• $21,000,000.00 at Pascagoula, Mississippi.

Mobile note that PCI WAYNE HOUSER, of unknown

reliability, advised MARCELLO, in the past, had made an

attempt to take over FHA housing project in Pascagoula,

Mississippi.

NEW ORLEANS

AT BATON ROUGE, LOUISIANA. Will do credit and

criminal investigation and obtain Dun and Bradstreet report

on Bagwell Neal Contractors.

AT COVINGTON, LOUISIANA.

1) Will conduct credit

and criminal investigation re LEON POIRIER, 408 East Thomas

Street.

2) Will review property records, st. lammany

Parish, to determine if LEON POIRIER Or LUCILLE MICELI have

purchased or sold property in the parish.

AT DES ALLEMANDS, LOUISIANA.

Will conduct credit

and criminal investigation re ROOSEVELT DUFRENE, BoX 193.

AT DESTREHAN; LOUISIANA.

Will conduct credit and

criminal investigation re HARRY O. DOLSEN, General Manager,

Bunge Corporation.

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NO 92-36

JCM - sm.J

NO 1734-PC made available the following information

concerning real estate transactions involving MARCELLO and

corporations controlled

by him.

This information contained in the files of MARCELLO

at his office at the Town and Country Motel, Airline Highway,

Metairie, Louisiana:

An agreement to purchase 1,785 acres of land,

St. Charles Parish, belonging to the Highway Land Company,

Inc. ;

An agreement to purchase Sections 4, 39, and 40 in

Jefferson Parish from the Highway Land Company, Inc., dated

9/1/68; total purchase price for land located in st. Charles

and Jefferson

Parishes $1,000,000.00.

This agreement signed by JOSEPH C. MARCELLO, the

son of CARLOS MARCELLO, President of Gems, Inc., which

is owned by MARCELLO.

Contact being maintained with NO 1734-PC re full

details of this purchase and particularly for what purpose

this land is to be used by MARCELLO.

NO 1734-PC made available contracts of sales of

lots located on Lapalco Boulevard, Jefferson Parish, which

reflect certain corporations, owned by MARCELLO, have sold

the above lots located on Lapalco Boulevard to either

members of the

MARCELLO family or close associates.

Plot E-6

Vendor - Garnet Lands, Inc. and Emerald Lands, Inc.

212,585 square feet.

Sale

price

- $120,000.00, payable in three annual

installments beginning: 4/8/69

Vendee: -JB. C. Company, a business partnership

composed of JOSEPH C. MARCELLO, JOSEPH A.

MATASSA, and JOE SALADINO;

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NO 92-36

JCM - smj

Plot E-2-A

Vendor - Garnet Lands, Inc. and Emerald Lands, Inc.

105,842 square feet

Price - $79,395.00,

payable in three annual

installments beginning 3/21/69

Vendee - ERNEST BARRIOS, husband of JOYCELYN TRACEY;

Plot B-1

Vendor - Gems, Inc., Garnet Lands, Inc. and Sapphire

Lands, Inc.

81,800 square feet

Price - $61,425.00, payable in three annual

installments beginning 8/18/68

Vendee - JOHN E. BURGA, divorced husband of BEVERLY

CLAIRE CARTER;

Plot E-5

Vendor - Garnet Lands, Inc. and Emerald Lands, Inc.

106,295 square feet

Price - $72,746.00, payable in three annual

installments beginning 3/1/69

Vendee - EDWARD E. CRUMPLER, husband of SARAH

SILVESTRI;

Plots D and E, Tract 9, Section C

Vendor - Sapphire Lands, Inc.

Price - $55,527.75

Vendee

SIMON SHLENKER, III and HERMAN E. FREITAG

NO 1734-PC made available the following information

concerning CARLOS MARCELLO and his associates:

N

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NO 92-36

JCM - smj

NO 1734-PC telephonically contacted agents late

evening of 11/21/68, requesting a recontact on early AM

of 11/22/68. Contact made, and NO 1734-PC advised that,

after considerable wrestling with his conscience during the

night, he had

come to the conclusion that he would cooperate

without reservation. He stated he would do so only with

complete assurances that his identity would never be revealed

outside the Bureau.

Thereafter, NO 1734-PC furnished the

following information:

CARLOS MARCELLO is extremely upset with PHILLIP

SMITH because MARCELLO'S SOn, JOSEPH C. MARCELLO, is a possible

target of a Federal Grand Jury subpoena for having witnessed

the bill of sale between SMITH and CHARLES EVANS, the latter

representing himself as LEONARD CUNNING, who was killed in

gangland fashion in Kansas City on 10/1/68.

NO 1734-PC stated that MARCELLO has ordered PHILLIP

SMITH to sell off real estate investments which would

normally be held for long term speculative investments

because MARCELLO is in dire need of ready cash. NO 1734-PC

stated that PHILLIP SMITH has been associated with MARCELLO

since 1950 and, outside the immediate family, is the most

trusted confidant MARCELLO has, handling all bis real estate

transactions and advising him on a daily basis regarding his

investments.

NO 1734-PC stated that GIUSEPPE GAGLIANO (former

under boss in New Orleans) met with MARCELLO in his office

at the motel yesterday for unknown reason. NO 1734-PC

home and was turned down by MARCELLO. NO 1734-PC

stated MARCELLO offered to lend GAGLIANO the $300 closing costs

but no more.

NO 1734-PC stated that an individual, known to him as

DI. FRANK (RAGANO), attorney for SANTO TRAFFICANTE, was in town

approximately a month ago and met surreptitiously with MARCELLO

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NO 92-36

JCH - smj

and other unknown individuals. Dr. FRANK stayed at the

Bourbon Orleans while in town. NO 1734-PC stated that

MARCELLO ordered him to send

to Dr. FRANK on 11/21/68, a

package containing the complete deposition given by MARCELLO

to Life Magazine recently.

NO 1734-PC advised that the reason for the coolness

between JOSEPH PORETTO, suspected LCN member, and MARCELLO

is that PORETTO allowed a sewerage bill in excess of $10,000

to accumulate on the Town and Country Restaurant and Lounge,

which was billed to the motel. PORETTO refused payment of this

bill, and NO 1734-PC advised MARCELLO that, inasmuch as

PORETTO's lease option had expired, to put him on a month-to-

month rental basis, which was done. Therefore, PORETTO has

nothing to sell if he wants to get out of the restaurant,

except his fixtures and goodwill.

NO 1734-PC advised that CARLOS MARCELLO Can read

words in English but has difficulty in putting phrases and

sentences together and, therefore, relies entirely on PHILLIP

SMITH for direction and guidance.

MARCELLO has recently

instructed SMITH to tutor JOE C. MARCELLO in the handling of

real estate matters, but JOE C. MARCELLO is not overly

intelligent and probably, in NO 1734-PC's opinion, will not

be able to grasp the intricacies of real estate transactions.

NO 1734-PC advised that JOE C. MARCELLO has PHILLIP

SMITH's telephone tapped, as well as JOE C. MARCELLO'S wife's

telephone tapped. NO. 1734-PC advised that BILLY GAUTREAU,

former administrative assistant in the Jefferson Parish

Coroner's Office, was one of the individuals utilized by

MARCELLO to tap telephones.

GAUTREAU was recently sentenced

to eighteen months in Angola for obtaining funds fraudulently

from the Coroner's Office.

NO 1734-PC advised that an individual known to him

only as TEX, who is presently incarcerated in a prison in

Texas, was another individual utilized by MARCELLO to tap

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NO 92-36

JCH - smJ

phones. NO 1734-PC advised that JOE C. MARCELLO maintains

a locked cabinet in his office where he stores tapes from the

taped conversations, and NO 1734-PC has heard PHILLIP SMITH'S

voice on one of these tapes.

NO 1734-PC advised that, whenever

CARLOS MARCELLO

has to appear in court or any type of hearing, he empties

the contents of his wallet and gives it to PHILLIP SMITH to

place in an envelope until he returns.

NO 1734-PC advised that MARCELLO is an unscrupulous

and vicious-type individual whenever he comes upon information

which can be used to blackmail people for his services.

He

advised that his (MARCELLO's) long-time secretary, DOROTHY

CROWDER, could be cited as a typical example, inasmuch as

MARCELLO holds the mortgage on her home and the fact that she

needs money in order to support her sick mother.

NO 1734-PC advised that JIMMY ARNONE, the night clerk

at the Town and Country for the past three years,

and his

brother, JOE ARNONE, recently discharged from the military and

now chauffeuring MARCELLO, are related to MARCELLO on MARCELLO'S

wife's side of the family.

NO 1734-PC advised that MARCELLO for a long time

has suspected a source among his employees at the Town and:

Country, and NO 1734-PC has assisted him in setting traps to

reveal

the identity of this source.

NO 1734-PC advised that MARCELLO has many contacts

throughout the state

and, therefore, NO 1734-PC is extremely

concerned regarding his own identity as a source.

NO 1734-PC

refused to go into specifics because of the circumstances of

the contact and the limited time of the contact, but this will

be pursued with him in the future

among the numerous other

aspects of the MARCELLO operation

Q

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NO 92-36

JCM

~ smj

NO 1734-PC was contacted 12/3/68, telephonically,

on 12/5/68, personally, and on 12/6/68, telephonically.

On 12/3/68, PC advised that CARLOS MARCELLO met

with GIUSEPPE GAGLIANO again and also

with ANTHONY CAROLLO.

He advised that, because of the "heat" being placed on the

Town and Country Motel office complex, MARCELLO

was

taking

the precaution of leaving the area when someone came to talk

to him about something important, and he did not wish law

enforcement to be

aware of their

presence.

He noted that, for example, when CAROLLO came to

meet him, they left almost immediately in CAROLLO's car, either

to drive around or to drive to another location, and he does

not know the topic of their discussion. In the case of

GAGLIANO, he stayed only a few minutes and departed and left

a newspaper for CARLOS MARCELLO to read, which MARCELLO put

NO 1734-PC noted that in the case of the recent

meetings between

MARCELLO, GAGLIANO, and CAROLLO, it is the

first such activity that he has noted since the LaStella

Restaurant meeting in 1966. NO 1734-PC advised there is

definitely something "in the wind" which is prompting these

meetings, but to date he does not know the reason therefor,

other than the fact that "Dr." FRANK RAGANO (TRAFFICANTE' S

attorney) called CARLOS MARCELLO on 12/3/68, 'and there very

probably is a connection between this telephone call and these

recent meetings.

On 12/5/68, NO 1734-PC advised that GIUSEPPE GAGLIANO

again met with MARCELLO very briefly on the AM of 12/4/68.

He

further advised that Dr. FRANK had tried to reach MARCELLO

today from Miami, but MARCELLO was unavailable, and MARCELLO's

secretary advised RAGANO that he would not be back in town

until late evening and to place the call tomorrow.

NO 1734-PC

advised that normally either himself and/or DOROTHY CROWDER

R

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NO 92-36

JCM - smj

know MARCELLO's whereabouts at

any given moment but that

today he left unaccompanied, driving his own personal car,

and NO 1734-PC speculates that more than likely he drove to

Baton Rouge, Louisiana to see his girl

friend, GLORIA DE SANTOS;

otherwise, he would have utilized a chauffeur.

NO 1734-PC stated that CARLOS MARCELLO had earlier

called CROWDER long distance, place unknown, and informed

her

• that he would be back that evening.

NO.1734-PC stated

that be overheard MARCELLO tell his brother, JOSEPH, that

he should be ready to make a trip to Miami

next week or the

week after.

NO 1734-PC speculates that this is probably a

result of the meetings between MARCELLO, CAROLLO, and GAGLIANO.

NO 1734-PC advised that he will follow this matter closely

and immediately advise when he determines exactly how and

when JOE MARCELLO departs.

NO 1734-PC advised that an individual by the name

Of (FNU) SIMON was to meet with CARLOS MARCELLO today concerning

the prospective purchase of Churchill Farm Estate. At this

point, NO 1734-PC knows only that SIMON represents Brown and

Root in a proposed offer to purchase this property.

NO 1734-PC

noted that this property is estimated to be worth $18,000,000,

and CARLOS MARCELLO's net worth is approximately $30,000,000.

NO 1734-PC advised that, as of a year ago, he has

complete and sole authority to write checks on every corporate

entity in which CARLOS MARCELLO is involved. He noted that

yesterday for the very first time CARLOS MARCELLO asked him

for the figures on the balance of each corporate bank account.

He does not know the reason

for this.

NO 1734-PC noted that he has copies of all the

balance sheets and will make these available. He further

noted that he has convinced MARCELLO for the need of a copy

machine in the office and will utilize same this coming.

Saturday when he is alone and can

work unencumbered by the

S

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NO 92-36

JCM - SMj

presence of others to copy all documents in MARCELLO'S

financial empire and other related documents of possible

He noted that this task will take some time,

as

are many variables involved concerning his access to

them,

and he will have to work at it piecemeal.

NO 1734-PC advised that CARLOS MARCELLO has essentially

four large tracts of land; 1) Churchill Farm Estate; 2) Cyprus

Gardens, which is a piece of property of approximately 150-170

acres in size, which is located between the Woodland West

Subdivision and the Timberlane Country Club on the west

bank of the Mississippi River in the Harvey-Gretna, Louisiana

area; 3) the piece of property on Veterans Memorial Highway

across from Dorignac's Super Market, approximately 50 acres

in size, valued

at $1,250,000; and 4) a piece of property in

St. Charles Parish on

90 West, which presently houses

a marina known as Al and Maria's on the road to Thibodaux,

Louisiana.

This piece of property is 500 acres in size,

consisting mostly of swamp

land and is owned in the name

Of JOSEPH BALESTRE (phonetic), son of deceased Captain JOHN

BALESTRE, long-time associate

of MARCELLO from Morgan City,

Louisiana.

JOSEPH, as JOHN's heir, inherited one-half

interest,

and MARCELLO owns one-half interest. JOSEPH

BALESTRE is an engineer currently working and

residing in the

Detroit area at a legitimate job..

NO 1734-PC noted that, in relation to the property

across from Dorignac's, that CARLOS MARCELLO had sent him

to the City Council meeting this afternoon in Gretna,

Louisiana to have this piece of property sub-divided, inasmuch

as it was too large for ready sale, and they have found

a purchaser for half the property at $600,000.

NO 1734-PC noted that WARREN DAY, formerly closely

associated with CARLOS MARCELLO regarding real estate matters,

has

arranged

Ior a buyer for this parcel of land and will

T

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NO 92-36

JCM - Smj

receive

a 6% commission on its sale. He noted, nowever,

that WARREN DAY is no longer in good graces with CARLOS

MARCELLO for several reasons. He stated that DAY is a

braggadocio-type individual, drinks heavily, and on one

occasion struck NO 1734-PC when he would not divulge to hin

CARLOS MARCELLO's whereabouts.

long-time associate and chauffeur of MARCELLO, was present

at the time and ejected DAY from the office.

When MARCELLO

found out about this specific incident, he severed his close

NO 1734-PC will follow this situation and advise as

to the purchaser and other pertinent details.

NO 1734-PC advised that CARLOS MARCELLO also owns

one-half interest in the Holiday Motel on Highway 90 West,

but it is in JOSEPH MARCELLO'S (JR. '5) name,

and they are.

selling this tomorrow 12/6/68) to the party who owns the

other half interest,

named STANDRIDGE, fOr & pIeCe OI

$105,000.

NO 1734-PC advised that CARLOS MARCELLO owns

several other pieces of land in lot size

scattered throughout

the parish, of which he can report later in detail, as well

as the corporations which control this property.

No 1734-PC was questioned as to the ownership of

the property which houses the club known as Soul City.

NO 1734-PC advised that this is owned by JoE C. MArCELLo, the

SO, and JOR MARCELLO, JR. CRAPPAN INO (phonetic.

but is in the name

of an attorney named A. J.

In this

regard, PC advised that, before the MARCELLOs opened Soul

city.

CARLOS MARCELLO had been approached by EMILE

IACOPANELLI and Jefferson Parish District Attorney FRANK

LANGRIDGE to build an apartment complex on the property

adjacent to Soul City, which formerly housed O'Shaunnessey's

Bowling Alley, and utilizing both properties for this complex.

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NO 92-36

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NO 1734-PC advised that CARLOS liked the idea and agreed,

but in the negotiations

thereafter LANGRIDGE and IACOPANELLI

left CARLOS MARCELLO's name out and, therefore, CARLOS did

not go through with it.

NO 1734-PC advised that JOSEPH PORETTO sent word

back to CARLOS on 11/27/68, that he was

being interviewed

by two FBI agents,

and they were on the way back to interview

him when they finished there. Later, PORETTO came to MARCELLO'S

office immediately after agents' departure, to report to him.

At that point, CARLOS had a visitor in his

office which he

sent into NO 1734-PC's office, instructing NO 1734-PC to lock

the door and give him coffee.

NO 1734-PC does not know the identity of this

individual and, when the FBI did not show up, he went back

into MARCELLO's office.

When MARCELLO found out froM PORETTO

that ANGELO PALMISANO had been arrested, he instructed

NO 1734-PC to arrange bond for him, which NO 1734-PC declined

to do, telling CARLOS he had too many other important things

to do

and to have G. WRAY GILL Or A. J. Bonding Company make

the arrangements, which was done.

NO 1734-PC was queried as to whether or not CARLOS

MARCELLO

made an attempt to bribe any of the jurors at his

recent trial in Laredo, Texas, to which NO 1734-PC responded

по .

NO 1734-PC noted

that he

feels that, if such an attempt

had been made, he would have had knowledge of it.

The same question was posed to NO 1734-PC concerning

CARLOS MARCELLO'S

trial in 1963, with JOSEPH "BABY" MATASSA

on charges of obstruction of justice and jury tampering.

NO 1734-PC adwised that, although one juror claimed he had

been approached,

NO 1734-PC does not feel that MARCELLO

instigated this

but rather MATASSA, possibly at MARCELLO'S

instructions without NO 1734-PC's knowledge, had made the

approach to the juror, it being noted that both MARCELL

and MATASSA were

acquitted by a trial jury concerning the

alleged bribery attempt.

2

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NO 92-36

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NO 1734-PC noted that MARCELLO 15

in almost daily

contact telephonically with MATASSA concerning the operation

of Pelican Tomato. Company and that the reason that MIKE

DE MARCO WaS

recently hired by Pelican Tomato Company was tbat

the volume of business had increased to the extent that

MATASSA and JOE SALADINO could not handle it.

NO 1734-PC was questioned as to MARCELLO'S

relationship to State Senator JOHN SCHWEGMANN, whose chain

of

supermarkets is one of Pelican Tomato Company's largest

customers. He advised that JOHN. SCHWEGMANN and CARLOS

MARCELLO are close friends, and he believes that MARCELLO

loaned SCHWEGMANN money when he first began expanding his

supermarket chain.

NO 1734-PC was questioned as to MARCELLO's exact

relationship with Jefferson Parish District Attorney FRANK

LANGRIDGE •

He advised that they are just close friends and

have been

for many years, having grown up in the same area.

He stated this was also true regarding MARCELLO's relationship

with BEAUREGARD MILLER, Chief of Police of Gretna, Louisiana.

MILLER,

NO 1734-PC advised that MARCELLO exercises no particular

control over either of these individuals as

such.

NO 1734-PC was questioned as to what, if any,

relationship MARCELLO has with State Attorney

General

JACK P. F. GREMILLION and the exact purpose of telephone

calls made to the state capitod, Iron stevle motel, 100,

telephone numbers in 1966.

NO 1734-PC responded

great many of the calls

Were

made by himself to Assistants

in

the Attorney General's Office with whom he had become

friendly during his years

as

Parish Attorney of Jefferson

Parish, wherein he would

request legal opinions concerning

servitude and other questions of realty law.

Aide to the Governor, was a contact of MARCELLO in

NO 1734-PC acknowledged that AUBREY YOUNG former

Governor's Office and frequented the Town and Country Motel

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NO 92-36

JCM - SIj

repeatedly until MARCELLO ordered him to stay away because

of his drinking problem.

NO 1734-PC advised

that he does not know off-hand

specific amounts of money or individuals to whom it was

contributed, but he

knows that MARCELLO contributes heavily

individual political campaign funds for

numerous politicians

throughout the state at their request and does so by writing

checks on

his personal account at the Merchants Trust and

Savings Bank in Kenner, Louisiana.

He stated that he would

obtain this information in the future and, if possible,

obtain copies of the cancelled checks.

NO 1734-PC was queried as to whether or not MARCELLO

has any Swiss bank

accounts or investments outside the

continental United States.

NO 1734-PC stated emphatically

that he

knows personally that MARCELLO has no Swiss bank

accounts.

Further, he knows that MARCELLo has no investments

in Mexico or any other foreign country.

In this regard, NO 1734-PC noted that, during the

time CARLOS MARCELLO WAS

having his deportation

problens,

he had decided

that he liked Guatemala and would remain

there;

however, his wife, JACKIE, would not leave the country.

Further, in order

for him

to obtain permanent resident

status,

he would have had to pay the then President of Guatemala

$250,000.

MARCELLO asked NO 1734-PC's advice concerning

this, and NO 1734-PC advised against it. Later, the President

was assassinated,

and he pointed out to

MARCELLO that he

saved him $250,000,

as the successor would have eitber thrown

him out or demanded a like amount.

NO 1734-PC stated that

he does not know how MARCELLo returned surreptitiously to

this country

from

Guatemala and has never made an effort to

determine this.

NO 1734-PC was asked if he ever accompanied MARCELLO

on out of town trips, to which

he responded he had

traveled

to New York and Washington, D. C. with MARCELLO ON several

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NO 92-36

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occasions.

He noted the trip to Washington, D. C. was in

response to a subpoena concerning VINCENT MARCELLO'S

difficulty with Federal Communications Commission in the

illegal use of broadcasting on radios utilized by the Jefferson

Music Company in their vehicles utilized on routes.

The trips to New York were in conjunction with

MARCELLO's proposed deportation to Italy, where they met with

JACK WASSERMAN and DI. ROSSI, a former Italian Consul in New

Orleans many years

ago.

ROSSI WAS MARCELLO's representative

and Italían lawyer in Rome in regard to his deportation to

Italy.

NO 1734-PC knows that money was paid to RossI, and

he believes that he can find

i the exact amount in the form

of

a cancelled check.

NO 1734-PC was questioned specifically about

MARCELLO's influence or control over the mayor of Kenner,

Louisiana;

EDDIE D'GEROLAMO, to which he responded they

are

merely close friends, and EDDIE D'GEROLAMO takes orders from

no one, except his uncle, VIC CORONA, former city marshal

of Kenner®

He stated at one time CORONA and

MARCELLO Were

very close, but that is no longer the case.

NO 1734-PC was questioned

as to DONALD STONE's present

relationship with MARCELLO.

He stated that at the present

MARCELLO has

dropped STONE

¡ because of STONE's drinking problem

but that STONE has received financial assistance from VINCENT

MARCELLO to open up

a lounge in the Fountainhead Apartments

on Lake Villa Drive in Metairie, Louisiana and requested

NO 1734-PC's assistance in obtaining the necessary licenses

for this endeavor.

On 12/6/68, NO 1734-PC was telephonically contacted

and advised that the

sale of the Holiday Motel was

going into

closing at 11:00 AM, 12/6/68, and

was being handled by A.".

GRAFFAGNINO in his offices.

NO 1734-PC further

advised that Mr. (FNU) SIMON is

MOISE SIMON, attorney for Brown and Root Construction Company,

and is from Bay City, Texas. Nothing definite was decided

Y

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NO 92-36

SCM - SM]

concerning SIMON's proposal concerning Churchill Farm,

and he

returned to Texas.

NO 1734-PC will follow this matter

advise.

NO 1734-PC was contacted on 12/16,27, 28, 30/68, and

1/2/69, and the following is

a summary of the

information

furnished on those dates:

On 12/16/68, NO 1734-PC advised that CARLOS MARCELLO

left today in his personally owned automobile, being chauffeured

by SAL BOEMIA en route to Bay City, Texas for

unknown reason.

NO 1734-PC does know that CARLOS MARCELLO Contacted FRANK

GAGLIANO telephonically, requesting FRANK to tell his father,

GIUSEPPE, tO

"pack a tooth brush" and meet CARLOS MARCELLO

at his home to

accompany bim.

NO 1734-PC also knows that

CARLOS MARCELLO planned to

pick up PICOU (MILTON PONTIER),

long-time Lafayette, Louisiana associate of CARLOS MARCELLO.

NO 1734-PC advised that DI. FRANK RAGÁNO, TRAFFICANTE'S

attorney, was in telephonic contact with

CARLOS MARCELLO

that morning and

Bay

was planning to meet with CARLOS MARCELLO in

City, Texas: NO 1734-PC knows that CARLOS MARCELLO had

in his briefcase

a transcript of the Laredo trial and also

a map of the Waterford Oil Company property located adjacent

to Churchill Farm

Estate.

On 12/27/68, NO 1734-PC advised that CARLOS MARCELLO

made arrangements to purchase a tract of land, 1,785 acres in total

located

on U.S. Highway 90 West, from the Waterford Oil Company

Located in Houston, Texas. The

act of sale is not final;

however, CARLOS MARCELLO bas put down $50,000

earnest money

and is to come up with another $150, 000 in thirty days and

the

balance to be paid in four years at six percent.

Total

purchase

price was approximately $1,000, 000 or

per acre.

This property adjoins

Churchill Farm

roughly $526

Estate

was bought by CARLOS MARCELLO primarily for the

and

reason that

the Dixie Freeway, as proposed, will pass through both this

property and Churchill Farm Estate.

The property will probably

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NO 92-36

JCM - SMi

be placed in CARLOS MARCELLO's son's name.

Partners in this

endeavor are LOUIS ROUSSEL, JOSEPH MATASSA; and his brother,

JOHN MATASSA.

In addition, CARLOS MARCELLO purchased 100 acres with

frontage on U.S. Highway 90 West in order to have access to

the

Waterford Oil Company property and had to pay $3, 300 per

acre for this property.

NO 1734-PC stated that CARLOS MARCELLO

utilized $50,000 of the $105,000 realized from the sale of the

Holiday Motel.

NO 1734-PC advised

that the Cypress Gardens tract

of land previously mentioned is owned by Gems, Inc, which

was recently reorganized, and JAMES I. CULOTTA was

removed

as President. NO 1734-PC stated that actually Gems, Inc.

comprises nine separate sub-corporations, each named after

a precious jewel, suchas sapphire, inc, etc, and the.

original 180 acres was divided into nine twenty-acre parcels,

each under a separate corporate name.

NO 1734-PC advised that this tract of land was

purchased by CARLOS MARCELLO a number of years ago in his

father's name for $28, 500, and last year alone they sold off

subdirided

properties amounting to over $1,000,000. He

stated

that the

new officers of Gems,

Ine.

are JEFF HAMPTON,

CARLOS MARCELLO'S SON-in-law,

; as President; JOE C. MARCELLO,

CARLOS MARCELLO'S

CARLOS MARCELLO SOD, Secretary-Treasurer; MIKE MAROUN,

attorney, Associate.

1734-PC advised

that MIKE MAROUN has a one-fourth interest in the corporation.

He also advised that WARREN DAY received

a 10% commission on

all sales of the corporation.

NO 1734-PC advised that PHIL RIZLUTO stopped to

See CARLOS MARCELLO today and conversed behind locked doors.

ANGELO PALMISANO WAS With CARLOS MARCELLO PriOr tO RIZZUTO'S

appearance and was

asked to leave the room by CARLOS MARCELLO.

NO IT3A-PC does not know the reason for the meeting but

remarked it seemed unusual because CARLOS MARCELLO

regards

RIZZUTO

as being "punch drunk."

AA

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NO 92-36

JCM - SMy

NO 1734-PC advised that CARLOS MARCELLO gave his

son his new Lincoln for Christmas and is purchasing another

new Lincoln for himself from JACK DE SALVO fOr $8,900 plus,

to be delivered in a few weeks.

NO 1734-PC advised that CARLO MONTALBANO stopped

by 12/21/68, to See CARLOS MARCELLO, but he was out, and

MONTALBANO has made frequent attempts in the past week to

meet with CARLOS MARCELLO without success for unknown reasons.

NO 1734-PC advised that WARREN DAY has an apartment

in the Imperial House on Causeway Boulevard.

On 12/23/68, NO 1734-PC had advised that the funeral.

of the mother of CARLOS MARCELLO's long-time girl friend,

LUCIA MICELI,

was to take place that day.

on 12/26/60,

NO 1734-PC advised

that CARLOS MARCELLO himself did not attend

the funeral but sent his personal secretary, DOROTHY CROWDER;

his chauffeur, JOE

ARNONE, and his brother, PAs MARCELIO.

NO 1734-PC explained that CARLOS MARCELLO could not send his

SOn, JOE C. MARCELLO, becauSe JOE C. MARCELLO would have told

JACKIE,

that CARLOS MARCELLO's relationship with

LUCIA MICELI continues.

NO 1734-PC advised that the same

thing applies to JEFF HAMPTON, who would also go straight

tO CARLOS MARCELLO'S wife if he knew the relationship continues.

NO 1734-PC advised that on 12/23/68, CARLOS MARCELLO

had

a party at the Town and Country Motel attended by A. J.

GRAFFIGNINO, WARREN DAY and girl friend, I. FOLSE ROY and wife,

CARLOS MARCELLO'S SON, JOHN HATTAWAY, (ENU) COMO Of COmO

Realty with offices in the Imperial House, and Mrs. ARLENE

SWING.

NO 1134-PC did not know her address but stated that

her husband is aware of the relationship and is

satisfied

that CARLOS MARCELLO is paying the house mortgage.

NO 1734-PC identified

& photograph of FRANK CARACCI

the individual who is attempting to date CARLOS MARCELLO'S

private secretary, DOROTHY CROWDER, without success.

BB

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NO

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JCM - Snj

Concerning information developed by Houston that

CARLOS MARCELLO waS

attempting to purchase

a piece of property

known as the Golf Crest Country Club, this is not a venture

by CARLOS MARCELLO but rather by J. FOLSE ROY. Regarding

ROY, NO 1734-PC advised that he is

involved in a scheme

in Belize, British Honduras with an individual named TAYLOR,

first name believed to be HOWARD Or HAROLd.

He described

TAYLOR as short, beavy set, and a birthmark all over his face.

He stated that TAYLOR has

an apartment in Houston but is

originally from California.

NO 1734-PC advised that RoY attempted to interest

CARLOS MARCELLO in this deal, but CARLOS MARCELLO turned him

down.

The deal involves the

minting of money for the Government,

and

they have a bank set up already. They will mint coin for

the Government by contract but will

also mint gold coin, coat

it with some

type of

substance in order to ship it into this

country. NO 1734-PC had no further details concerning this

operation.

NO 1734-PC advised that FRANK CASONE Of Memphis,

Tennessee has made numerous trips to see CARLOS MARCELLO in

the past year, attempting to interest CARLOS MARCELLO in

investing in a motel that CASONE is building in the Bahamas,

but CARLOS MARCELLO has exhibited no interest in this venture.

NO 1734-PC stated that CASONE dates DOROTHY CROWDER when in

town and stays at the Town and Country Motel,

NO 1734-PC identified BOB ANDREWS as an attorney

associated with FRANK RAGANO. (Houston source had identified

BOB ANDREWS as a young attorney from Florida who was with

CARLOS MARCELLO in Bay City, Texas 12/17/68.8

NO 1734-PC advised that the meeting at Pedone's

Red Onion Restaurant

in Covington, Louisiana

between CARLOS

MARCELLO, his son,

and A. J. GRAFFIGNINO on the weekend of

12/15/68, concerned

the sale of the Holiday Motel and that

transaction has been completed.

CC

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NO 92-36

JCH - SIJ

**:

On 12/28/68, NO 1734-PC advised that CARLOS

MARCELLO had

reservations that date on Braniff Flight 256,

departing at

6:15 PM to Shreveport, Louisiana, returning on

Braniff Flight 235, departing 4:25 PM from Shreveport on

12/29/68.

The

purpose of visit known only to No 1734-PC

as to meet with ERNEST PALMISANO and others unknown.

NO 1734-PC exhibited a letter from MOISE H. SIMON,

attorney, 1514 Seventh Street, Bay City, Texas, enclosing

a petition for Executive Clemency for Commutation of Sentence,

requesting that CARLOS MARCELLO and PHIL SMITH read this

over,

fill it out, and send it back. The letter was signed

"JACK," believed to be an attorney

associate of SIMON.

NO 1734-PC advised that PHIL SMITH read his petition

and

advised CARLOS MARCELLO that it was not applicable until

his appeals were finalized.

NO 1734-PC advised that,

evidently, SIMON had convinced CARLOS MARCELLO that they

could present this petition to President JOHNSON before he

left office.

NO 1734-PC advised that PHIL SMITH was not

returning the petition.

NO 1734-PC advised

that CARLOS MARCELLO does not

plan to have his traditional New Years Eve party at his home

this year.

NO 1734-PC advised that PETE IMBORNONE is not being

financed in his present operation by any of the MARCELLOS

and, in fact, still owes VINCENT MARCELLO & Considerable sum

of money for

the operations of the Pla-Pen and Club Pisano

Lounges

On 12/30/68, NO 1734-PC advised that CARLOS MARCELLO

net Friday night, 12/27/68, with four Louisiana state

Representatives

at his offices at the Town and Country Motel

until 9:00.PM, discussing the -10% tunds that the state is

required to raise to match

the 90% already allocated by the

Federal Government for the construction of the Dixie Freeway.

DD

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NO 92-36

ICM - SMJ

The purpose of CARLOS MARCELLO's meeting with these

individuals was to insure that the state provides this 10%

because that freeway will pass through properties owned by

CARLOS MARCELLO.

NO 1734-PC identified HANK LAURICELLA, a

Mr. ULLO (believed to be a pseudonym for a representative

St. Charles Parish named BARKER OF BAKER), and

two others

unknown to NO 1734-PC. NO 1734-PC advised that CARLOS MARCELLO

had

2 1:00 PM appointment with LAURICELLA at Elmwood Plantation

Restaurant on 12/28/68, and did not go to Shreveport as planned.

PC advised that PHIL RIZZUTO met with CARLOS MARCELLO

twice on 12/30/68, behind closed doors, and on one occasion

CARLOS MARCELLO Called his son, JOE C. MARCELLO, into the

room. The purpose of the meeting is unknown to

• NO 1734-PC.

NO 1734-PC identified a safety deposit box in the

name of H. P. B. Company, Inc., located at the

Merchants

Trust and

Savings Bank, Kenner, Louisiana, which contains

daily diary maintained

by CARLOS MARCELLO's private secretary,

DOROTHY CROWDER, Concerning CARLOS MARCELLO'S daily activities

and whereabouts.

NO 1734-PC advised that this safety deposit

box also contains two letters, reflecting implied threats to

CARLOS MARCELLO. Both of these letters were delivered by

hand, unsigned, to CARLOS MARCELLO, approximately six to

eight months ago.

The first letter was delivered by FRANK RAGANO

fROM SANTO TRAFFICANTE and in essence tells CARLOS MARCELLO

that, if they cannot get together and settle their

differencies,

there will be

trouble for CARLOS MARCELLO.

The

second letter is from ANTHONY CAROLLO and

contains

the same type of threat.

The last letter was also

hand delivered,

but NO 1734-PC does not know who delivered

it.

NO 1.734-PC

advised that CARLOS MARCELLO had PHIL SMITH

block out certain portions of these letters, xerox them,

and furnished them to his attorney, NASSERMAN, for use if

anything happened to CARLOS MARCELLO. NO 1734-PC advised

he would obtain copies of these letters at an opportune time

in the future.

EE

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NO 92-36

JCM - smj

On 1/2/69, NO 1734-PC provided xerox copies of

papers relating to the recent purchase by CARLOS MARCELLO

of 1,785 acres off of U.

S. Highway 90 West and land transactions

engaged in by the Gems, Inc. company over the past year.

NO 1734-PC also advised that PHIL RIZZUTO: has been

calling CARLOS MARCELLO almost every day, and NO 1734-PC

learned that RIZZUTO is attempting to obtain financing for

a cousin in Kenner, Louisiana who is building duplexes.

(This individual is

believed by the New Orleans Office

LEONARD

FRANZONE, Chicago hoodlum who recently moved to

Louisiana as a

permanent resident.

FF

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NO 92-36

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On 1/8/69, NO 174 IC advised

that CARLOS MARCELLO

is very close to AL CHITTENDEN, President of the ILA Local,

and was introduced originally through G. WRAY GILL. Source

noted that, in fact, CHITTENDEN

utilized MARCELLO's Churchill

carm Estate for his,

CHITTENDEN's, wedding in the recent past.

NO I697-PC had furnished information concerning an individual

whom be observed enter and depart MARCELLO's residence.

On

this date NO 1734-PC Identified this individual

as JACK

LEOPARD, who is associated with G. WRAY GILL'S law firm and

who is working on MARCELLO's appeal on his recent

assault of

a Federal officer conviction.

Source also advised that

MURRAY SOLO, who owns and operates a couple of places in the

French Quarter, was trying to see CARLOS MARCELLO today

without success. Source advised that CARLOS MARCELLO is a

good friend of a lobbyist in Washington by the name of IRVIN

DAVIDSON, and DAVIDSON

in turn introduced MARCELLO tO JIMMY

In this regard he knows of one specific occasion

When HOFFA and CARLOS MARCELLO met, and he does not recall

the date

but it was when BARRY GOLDWATER was running for

President and came to New Orleans for a speech. NO 1734-PC

advised

that PHILLIP RIZZUTO is registered 'in room 10 of the

Town and

Country Motel, but NO 1734-PC does not know the reason

for this.

NO 1734-PC advised that DONALD STONE yesterday was

in the company of CARLOS MARCELLO's girl friend, GLORIA.

DE SANTOS, and her girl friend, BILLIE WATKINS, in the Town

and Country Lounge, and the girls stayed at the motel that

evening, returning

to Baton Rouge the

next day.

On 1/23/69, NO 1734-PC advised that CARLOS MARCELLO'S

balayette, louisiana

associate, MILTON PONTIER, aka PICOU,

was

coming

to New Orleans tomorrow with 1,000 crawfish heads

for a party at Churchill Farm Estate.

Source does not know

the reason for the party or who will be in attendance at this

time but would

determine it and advise.

CARLOS MARCELLO and his girl friend, GLORIA DE SANTOS, had

fight,

and be sent someone to Baton Rouge to pick up the car

he had been letting her utilize. NO 1734-PC advised that

Sheriff EDDIE ST. MARIE of Lafourche Parish was in the office

Of CARLOS MARCELLO at the Town and Country Motel yesterday and

LAEL

GG

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NO 92-36

JCM - Snij

signed over 1,000 plus shares in Tidewater Marine Corporation.

NO

1734-PC advised that

shares actually owned by MARCELLO

but purchased for him by ST. MARIE, and they are now maintained

safe-deposit box at the Merchants Bank

and Trust in

Kenner, Louisiana.

NO 1734-PC advised that ROCK HEBERT,

the

bondsman from Gretns, Louisiana, met with CARLOS yesterday

for unknown reason.

Source further

advised on this date

that

both JOSEPH and JIMMY ARNONE are quitting their employment

at the Town and. Country Motel. NO 1734-PC advised that both

SAMMY

and VINCENT MARCELLO, brOtherS Of CARLOS MARCELLO,

stopped by yesterday at MARCELLO's office and dropped off two

manila envelopes full of money. MARCELLO took some money from

one oi the envelopes and

told his secretary, DOTTIE CROWDER,

to place it in a small envelope for a Mrs. COCO, who is unknown

to NO 1734-P0.

NO 1734-PC advised

that MARCELLO has a hidden

interest

in the Merchants Bank and Trust, Kenner, Louisiana,

and he will attempt to determine who is fronting

for CARLOS

MARCELLO and the amount of the investment.

He slso noted that

CARLOS MARCELLO also maintains large accounts through his

various front companies with the First National Bank of

Jefferson and the Guaranty Bank. NO 1734-PC advised that

FRANK CASONE, & Memphis, Tennessee hoodlun now residing on

the Gulf Coast, came to

see CARLOS MARCELLO yesterday

with

two individuals

known only to the source as LEO (LNU)

and

PAUL (INU), who were temporarily staying at the Bourbon Orleans

Hotel.

NO

1734-pC advised that JOE NUCCIO came

see CARLOS

MARCELLO & lew days ago and attempted to influence MARCELLO

in having the southern lours Bus hine stop at

a new club he

was trying to open together with JOE JOSEPH. This new club

was

to

• located at PETE HERMAN's old place in the French

Quarter

and was to feature female impersonators fashioned

after the My Oly Club on the

Lakefront.

MARCELLO turned

NUCCIO down

and

later told No

1724-PC he did not want the

competition

with

My-O-My,

indicating

to

NO 1734-PC for the

first

time that

he had

some interest

in this club.

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NO 92-36

JCM - smj

On 1/27/69, NO 1734-PC advised that GLORIA DE SANTOS

called MARCELLO from

Baton Rouge complaining that she had been

interviewed by the FBI, and MARCELLO became infuriated.

On 1/28/69, NO 1734-PC advised the meeting that took

place at Churchill Farm Estate the previous Friday in which

MILTON

PONTIER supplied the crawfish was for the purpose of

discussing real estate and

actually two meetings took place.

The first meeting

was at 2:00 PM and was attended by real

estate people, including WILSON ABRAHAM. The second meeting

took place at 3:00 PM and was attended by JOSEPH MATASSA,

JOSEPH SALADINO, JOSEPH MARCELLO, JR., JOSEPH C. MARCELLO,

SANMY MARCELLO, and DONALD STONE did

the cooking. Subject

of discussion was the recent purchase of the 1,784 acres of

land

from the Waterford Oil Company of Houston, Texas,

previously mentioned by Nd 1734-PC,

decided that

they would attempt to borrow $1,000,000 from a Venezuelan

source through a law firm in New Orleans named Harris, Young,

and Rosenblum. NO 1734-PC noted that he himself was not in

attendance and, therefore, does not know the names of everyone

there.

NO 1734-PC advised that MOISE SIMON, attorney from.

Bay City, Texas, called CARLOS MARCELLO today stating that

he was sending an individual named NORRIS PIER and another

individual over to look at Churchill Farm Estate as prospective

purchasers. SIMON wanted CARLOS MARCELLO

to show the property

himself, but MARCELLO sent his son-in-law, JEFF HAMPTON, instead.

PIER was not satisfied with this arrangement and requested

to meet MARCELLO at the VIP Room, Delta Airlines, that

evening before returning to Houston. However, NO 1734-PC

1734-pC

advised MARCELLO told him he was on his way to Baton Rouge

with his real estate associates,

WARREN DAY and Mr. COMO, to

See GLORIA DE SANTOS.

Later that afternoon MARCELLO

telephonically contacted NO 1734-PC and in the interim NO 1734-PC

had been advised by LISA MOSCA that somebody from out of town

was

there and wanted to meet MARCELLO about an urgent matter.

NO 1734-PC conveyed this to MARCELLO, who said he would delay

his trip to Baton Rouge and proceed to MOSCA's.

II

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On 1/30/69, source advised that JACK KENT, SOn Of

RICHARD KENT, is married to MILTON PONTIER's daughter.

NO 1734-PC advised that JACK KENT and CARLOS MARCELLO

together in KENt's car this morning examining property on the

West Bank and, in particular,

the Woodland West

subdivision,

as KENt wanted to purchase some property in that area and

wanted MARCELLO's advice. NO 1734-PC advised that WILSON

ABRAHAM ANO JOSEPH C. MARCELLO Were requested by CARLOS MARCELLO

to meet FRANK RAGANO at the airport and take him to the

Elmwood

Plantation Restaurant between 12:00 and 1:00 PM for

a conference with MARCELLO, believed to be in reference to a

racetrack located someplace in Florida.

NO 1734-PC advised

that he attended the luncheon, but nothing pertinent was said

at the table, and MARCELLO and RAGANO talked in the car

outside prior to RAGANO's departure on a flight back to Miami

at 2:55 PM. NO 1734-PC advised that WILSON ABRAHAM. drove

RAGANO back to the airport.

On 2/5/69, source advised that FRANK RAGAND and

I LEE. BAILEY were staying at the Bourbon Orleans Hotel

yesterday and were

to meet today with CARLOS MARCELLO and

WILSON ABRAHAM for unknown reason at an unknown location.

On 2/7/69, NO 1734-PC advised

that f. LEE BAILEY

and MELVIN BELLI met with District Attorney JIM GARRISON

of Orleans

Parish for unknown reason.

On 4/23/69, NO 1734-P6 advised that, during Mardi

Gras

and the day before, CARLOS MARCELLO, NOFIO PECORA,

and

JOSEPH MATASSA all had adjoining suites at the Bourbon

HoteL.

JOE PORETTO had

a visitor from Detroit who was his

guest by the name of TONY (LNU), whom NO 1734-PC described

as short and bald.

On 2/27/69, NO 1734-P6 advised that CARLOS MARCELLO

is selling one-balf of his property located across the street

from Dorignac's Super Market on Veterans Highway with the

act of sale to be finalized on 2127/69. Property will be sold

J.J

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NO 92-36

JEM - SMI

tO

a JULIUS ROSENBLUM.

NO 1734-PC advised he will furnish

full

details in the form of xeroxed documents concerning this

sale at a later date.

NO 1734-PC advised that CARLOS MARCELLO

had reserved two rooms at the Town and Country Motel and told

NO 1734-PC these rooms would be utilized by a sheriff and

three deputies from the State of Florida.

MARCELLO instructed

NO 1734-PC to register these rooms in MARCELLO's name.

NO 1734-PC advised that around noon on 2/26/69, JOHNNY

LA BRUZZO, a former chauffeur for MARCELLO, Visited MARCELLO

at the Town and

Country Motel office.

LA BRUZZO WAS

emotionally upset and was actually crying in the presence

of the source, but MARCELLO closed all the doors in his office

and turned up

the radio so that NO 1734-PC was unable to hear

what transpired between LA BRUZZO and MARCELLO. NO 1734-PC

speculated

that LA BRUZZO was upset because of the FBI's

investigation into LA BRUZZO's fraudulent dealings with

Small Business Administration.

On 3/5/69, NO 1734-PC advised he had been contacted

bY HENRY DI MICELI, who is the only heir of SAM DI MICELI,

and was requested by him to reopen the

succession of title

to the estate.

He noted that, when SYLVESTRO CAROLLO waS

picked up for

deportation the

second time;

he

was hiding

on SAM DI MICELI'S farm in Slidell. He stated that SAM

DI MICELI died in 1963, and he does not know why HEnRY now

contacts him but, if anything pertinent èvolves, he will

report it.

Concerning the recent expose in the local press

concerning the city official named Louls Gomer having met

with CARLOS MARCELLO regarding the Orleans Parish garbage

situation, he advised that a meeting did

take place on

10/3/68,

not attended by no 1734-PC,

but he knows that GoMer,

MARCELLO, CARLO MONTALBANO, RAY PATRON, NUNGLO SQUILANIE,

and

another unidentified individual from New York were in

attendance.

The topic of discussion was

the feasibility of

forming & company to obtain the Orleans Parish garbage contract

f the City Council decided to let private collection.

He

so stated that this was not the first time that GOMEZ met

with MARCELLO concerning this

situation, and MARCELLO has been

KK

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NO 92-36

ICM - smj

interested for some time in entering the garbage collection

field.

He stated

at first MARCELLO considered bidding on

the Orleans Parish contract through Louisiana Disposal

Company headed by JOHN HATTAWAY, who had the garbage contracts

for Harahan and Kenner, Louisiana until recently and was

financially backed by MARCELLO.

However, HATTAWAY lost both

these contracts and is now out of business. NO 1734-PC

advised that MARCELLO had decided to keep HATTAWAY on the

payroll and was sending him to Memphis, Tennessee to get

some prices on some equipment because DAN SILVERMAN 01

Jefferson Disposal Company is having financial difficulties

and wanted to sell his commercial pickups to MARCELLO for

a given

amount of

money plus some liabilities.

NO 1734-PC advised that CARLOS MARCELLO has

instructed him to form a new company, which will be a holding

company, and MARCELLO'S SOn,

JOE C.

MARCELLO, will be the

president, and NO 1734-PC will be chairman of the board.

NO 1734-PC is drawing up the

papers for this new company

and will advise at a later date its name, corporate make-up

and shareholders.

NO 1734-PC advised that the sheriff and

three deputies scheduled to stay at the Town and Country never

did show up and, therefore, he did not learn their identities.

NO 1734-PC stated that last Monday he passed an act of sale

for FRANK GAGLIANO On

the purchase of a house which MARCELLO

arranged through a friend so that GAGLIANO bad to have no

money down and no closing costs.

NO 1734-PC advised that

FRANK CASONE was in town one day last week but did not get

to see MARCELLO; however, he did call DOTTIE CROWDER, whom

he

dates occasionally when in town.

On 3/11/69, NO 1734-PC adwised that the name of the

new

company being formed

will be Marsh Lands,

and MARCELLO plans to retain 51% interest in

Incorporated,

this company,

selling shares

at $10,000

a piece to selected individuals,

complete list of which he will furnish after he has issued

the stock, but he recalls from memory that some of the

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NO 92-36

JCM • SHj

individuals will be JOSEPH and JOHN MATASSA (JOHN MATASSA

State Attorney General

JACK P. F. GREMILLION, all the MARCELLO

brothers, and

some of the MOSCA family, in addition to others

he cannot recall at this time. NO 1734-PC stated that another

purpose for forming this company was to give MARCELLO capital

in the amount of $1,000, 000 to pay for the Waterford Oil

Company property because they had decided against utilizing

the venezuelan source of money because of the high interest

rate attached to that source. No 1734-PC advised he would

furnish complete details on this company at a later date.

NO 1734-PC advised that last Sunday CARLOS MARCELLO, JACK P. F.

GREMILLION, and JACK WASSERMAN met at an unknown location

half-way between Baton Rouge and New Orleans, Louisiana.

NO 1734-PC advised that GREMILLION intends to utilize WASSERMAN

as his legal counsel in his indictment in the Louisiana Loan

and Thrift case.

NO 1734-PC advised that CARLOS MARCELLO

and

his brother, JOSEPH, JOE PORETTO, and ANTHONY CAROLLO met

today behind closed

doors for some unknown reason which he

will determine later.

On 3/12/69, NO 1734-PC advised that the meeting

between

attempt to take over the Town and Country Restaurant from

PORETTO, but no agreement was reached because CAROLIO wanted

to get in for nothing, and PORETTO wants too much money.

NO 1734-PC advised that A. I. GRAFFIGNINO received an urgent

call from U.S. Representative HALE BOGGS this afternoon

summoning him to Washington by airplane that afternoon:

NO 1734-PC did not know the reason for this meeting but would

attempt to determine.

NO 1734-PC advised that ED ROUSSEL is

sharing office space with A. J. GRAFFIGNINO and is "on our

payroll.".

It is noted

that roUSsel is the former head of IRs

intelligence in New Orleans and currently Chief Counsel to

the Governor's Labor Racket-Management Commission of Inquiry.

NO 1734-PC advised that PHIL RIZZUTO has room number 10

registered under his name at the Town and Country, as NO 1734-PC

the registration card this morning.

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NO 92-36

SCM • SUJ

On 3/17/69, NO 1734-PC advised that A. J. GRAFFIGNINO

did not go to Washington and, therefore, he did not determine

why he was summoned there by BOGGS. NO 1734-PC advised that

CARLOS MARCELLO lent BABES CUTRERA the money to get started in

business in his bar in Lafitte, Louisiana, but at the present

time they are not on speaking terms. He stated

that MARCELLO

has

no interest in a boat owned by CUTRERA and, to his

knowledge, never had any such interest in the past.

He

noted that CUTRERA used to hold a position on the

State Highway

Commission during

the LONG Administration, but he does not

know how MARCELLO first became

acquainted

with him or whether

BABES CUTRERA is related to JOSEPH CUTRERA, owner of the

Speedy Super Market on Chef Menteur Highway. NO 1734-PC

advised that WALTER SCHWARTZ, who was formerly with DAN SILVERMAN

the Jefferson Disposal Company for him, is now in

St. Petersburg, Elorid

and has advised MARCELLO that he

would run a garbage collection firm for him for a salary of

$20,000 a year if MARCELLO decides to get into that field.

NO 1734-PC advised, however, at this point MARCELLO bas

decided to pull back and not get involved in the garbage

industry, particularly in Orleans Parish.

He noted that

SCHWARTZ is anxious to come back to the

New Crleans area, as

he purchased

a marina near Lafitte, Louisiana, which his wife

is running, and he does not like his job in St. Petersburg.

For the information of the Bureau, CARLOS MARCELLO

submitted a life insurance policy to the Community National

Life

Insurance Company,

Tulsa, Oklahoma.

This policy was

SUbmITtEd bY DEXTER BUSH Of Lake Charles, Louisiana, who is

presently being contacted by SA JAMES

FRANCIS WRIGHT on a

confidential basis.

This life insurance policy listed as a

reference. Mayor VICTOR H. SCHIRO : Bush has not been

contacted concerning this policy, in view of Community

National Life Insurance

Company's position that this

information should remain completely confidential;

however,

it appears this policy

was filled in by BUSH and signed by

MARCELLO.

NN

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NO 92-36

DCM - SMJ

New Orleans requested Oklahoma City to contact

the Community National Life Insurance Company in an attempt.

to

determine if they

had contacted MARCELLO's references

listed

in this

policy.

The following investigation was conducted at

Oklahoma

City on 10/30/68:

I. G. ROGERS, Vice President, Community National

Life Insurance Company, Tulsa, Oklahona, advised SA THOMAS W..

MC LAIN that his records fail to reflect any interview of the

references given by MARCELLO. ROGERS advised these interviews

would have been made by Retail Credit Company and reported

in their inspection report. A review of this inspection

report,

a copy of which was previously furnished to New

Orleans, reflects MARCELLO has either obtained or attempted

to obtain

substantial anounts of insurance since 1962.

Therefore, it is assumed that Retail Credit Company has made

previous inquiries for other insurance companies and, in so

doing, may

have interviewed references

furnished

Mr. ROGERS

by Community National

has reiterated the fact this report was

and should be kept confidential.

The following investigation was conducted at

New

Orleans:

NO 1712-PC

advised that be recently determined

from I. FOLSE ROY that ROY and MARCELLO are involved in an

insurance company, Mayalan Insurance

Company.

NO 1712-PC

stated

that this

company was incorporated in

the free zone

of British Honduras in July, 1966.

The original incorporators

were

TAFT MOODY, who runs a small hotel in Beliza, British

Honduras and LAWRENCE LORD TAYLOR.

NO 1712-PC stated that

TAYIOR operates out of ROY's office at 915 Veterans

Highway,

Metairie, Louisiana.

00

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NO 92-36

JCH

- SIj

After incorporation, the company began writing

insurance in Texas

through

the Insurance Office of Pioneer

General Insurance Company in San Antonio, Texas.

the Texas

Insurance Department,

Austin, Texas caused Mayalan a lot

trouble because

they were

not paying off claims.

NO 1712-PC

stated that RoY indicated that a Mr. CLINES (phonetic) of the

Texas

Insurance

Department caused them the trouble.

ROY

indicated that they were collecting better than $200,000 a

month in premiums in Texas.

When pressed by the Texas Insurance Department to

file a record of American assets for claims purposes, ROY

claimed Churchill Farms,

Inc.

as principle asset. It is

noted that Churchill Farms is a 7,800 acre estate owned by

MARCELLO.

As a second asset ROY told NO 1712-PC he claimed

Pecos County Water Control and Improvement Bonds, amount

unstated, which were transferred from CARLOS MARCELLO tO &

Mr. CORBETT tO J. FOLSE ROY and then to Mayalan Insurance

Company.

NO 1712-PC stated that he is slightly acquainted

with LAWRENCE LORD TAYLOR and believed him to have served

time in the past for mail fraud in insurance cases.

NO 1712-PC

stated that, from his conversation with ROY, he believed that

this whole operation was a device to transfer money of CARLOS

MARCELLO Out Of the United States and that, while bandling

this transfer of funds out of the United States, ROY has

engaged in some type of insurance fraud in Texas.

Investigation concerning this matter

is being

handled under case captioned

"JOSEPH FOLSE ROY, aka, AR,"

New Orleans file 92-559.

LV 303-C-TE advised he has received no additional

information

concerning the subject.

PP

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NO

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JCH = SMT

NO 1734-PC advised on 12/16/68, that MARCELLO iS

being driven by SAL BOEMIA to Bay City, Texas in CARLOS

MARCELLO'S black Lincoln Continental, 1968-1969 LouISIana

license 320B871.

MARCELLO is to pick up "PICOU," Lafayette, Louisiana

associate of MARCELLO.

MARCELLO is transporting transcript

of his trial at Laredo, Texas and is to meet with Dr. FRANK

RAGANO, attorney for LCN bOSs SANTO TRAFFICANTE Of Tampa,

Florida.

NO 1734-PC also advised GUISEPPE GAGLIANO, former

under boss of LCN in New Orleans is to be in attendance.

The purpose of the meeting is unknown to source, and MARCELLO

is to return on Wednesday, 12/18/68.

SAM HANNA (protect identity at his request), Editor,

The

Concordia Sentinel, weekly newspaper, Ferriday, Louisiana,

advised SA JOHN A. PFEIFER of the following information on

12/12/68:

While be was

attending Louisiana

State

University (LSU)

at Baton Rouge, Louisiana from 1951-1955, NORMAN M. MAGEE,

who was from Port ALlen, Louisiana, a1S0

was a student in

his

class

and was a

fairly

talented

basketball player.

After

graduation,

MAGEE

entered the military service then returned

to Lsu to obtain

law

degree.

He

was affiliated with a

Baton Rouge law firn alter

his graduation and

in about 1960 or

1961 was sent by that firm to open a branch office in ferriday

to help PERRY CORBET get the Delta Security

and Trust

Company of Ferriday oft the ground.

He set

up his office

in a

building near

the Ferriday City Hall.

He shared this

buIlding WIth JAMES "RED" MC NEW, & member of the Ferriday

Town Council and and accountant,

and with

CLYDE WEBBER, JR.,

who was running an insurance agency at

that time.

MC NEW and

WEBBER, doing business as Colony Realty, owned this office

building.

QQ

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NO 92-36

SCH - SIJ

except for the incident following PERRY CORBET'S death,

at

which time it was reported that CARLOS MARCELLO had sent a

wreath with his card to CORBET's funeral and may have stopped

at the funeral bome on the day of the funeral. NORMAN MAGEE,

of course, was CORBET's personal attorney and the one handling

his

estate.

However, he has learned that Mrs. CORBET has

been

supervising MAGEE very closely in disposition of this

estate.:

His personal opinion of Mrs. CORBET is that

she is

an honest, moral person.

On 12/17/68, SA JOHN C. MC CURNIN, II advised that

MARCELLO, accompanied by SAL BOEMIA and GIUSEPPE GAGLIANO Of

New Orleans area, had departed New Orleans on 12/16/68, with

a transcript of

the Laredo, Texas trial in hand and were

scheduled to travel to Lafayette, Louisiana to pick up MILTON

"PICOU" PONTIER and then continue on

to Bay City, Texas to

meet with SAM TRAFFICANTE's attorney.

At approximately 12:55 PM PONTIER'S house at 505

St. Camille Street, Lafayette, Louisiana was observed, and

parked in the driveway

was a white 1969 Pontiac Grand Prix

bearing 1968 Louisiana

license 471718, registered to MILTON

PONTIER at this address.

At approximately 1:00 PM

a telephone call to

PONTIER's number, 235-4427, determined from the woman answering

thatl PONTIER was

not home and was not expected until the

evening of 12/17/68.

HO 1293-PC, contacted 12/17/68,

furnished the

at Bay City, Texas,

following information:

This source

advised she had originally been placed

in contact with CARLOS MARCELLO by

one JACK HALFEN, Collegeport,

Texas, in connection with MARCELLO's attempt to buy the Oasis

Motel

at

Bay City.

HO 1293-PC advised

that MARCELLO reportedly

made

two or

three attempts to purchase the motel and used MOISE E.

TT

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NO 92-36

JCM - smJ

SIMON, a Bay City attorney, in these attempts.

unsuccessful, HALFEN reportedly furnished HO 1293-PC's name

to MARCELLO as being the one who could effect the sale.

HO 1293-PC stated she was contacted from New Orleans by

persons representing themselves

to be connected with the

Holiday Inn Motel chain and went to that city with that

understanding.

HO 1293-PC met MARCELLO and his attorney, BOB

ANDREWS, & young white male attorney from Florida.

MARCELLO

claimed he was investing Teamsters Union funds and made an

offer of $850,000 for the motel, furnishing her with $100,000

earnest money

which she brought

back to the owner at Bay City.

At this point, the owner decided he did not desire to sell

the motel and

refused to discuss any of the terms with her.

HO 1293-PC stated

that, while in New Orleans, she

stayed at the Town and Country Motel and was taken to

Lafayette, Louisiana by MARCELLO to meet a realtor who was

supposed to handle future dealings the two would have. This

Lafayette realtor was unavailable,

and HO 1293-PC does. not

recall his name or the location of his office, which she

described as a small "two by four rathole."

HO 1293-PC has

no further information regarding the possible sale of the

Oasis

and refused to deal with the owner in view of his past

activities.

HO 1293-PC further stated that CARLOS MARCELLO iS

attempting to negotiate for the purchase of 116 acre parcel

of

land in Houston, Texas, commonly known as Golfcrest Country

club,

and recently

contacted HO 1293-PC through HALFEN in

regara

to the purchase of a

16 acre parcel of land in Friendswood,

Texas,

a suburb of Houston.

HO 1293-PC was requested to

attend a meeting at

Orange,

Texas on 12/17/68,

at which the above

two prospective

sales

were to be discussed.

HO 1293-PC advised that MOISE

UU

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NO 92-36

JCM - SuJ

SIMON was supposed to attend the meeting; however, as of noon,

12/17/68, he was still in Bay City, Texas.

HALFEN did travel

to Orange to attend

the meeting.

HO 1293=PC had no knowledge

of the location of the meeting or who would be in attendance;

however, HALFEN did tell her that he would see her on 12/23/68.

By communication dated 12/31/68, the Jackson Division

furnished the following information:

On 12/22/88, and 12/24/68, Attorney FRANK E.

SHANAHAN, JR., Vicksburg, Mississippi (who requested that

his identity

be protected), advised SA JACK G. WILSON that

he had heard from a source, who is in á position to be

knowledgeable concerning such matters, that one of CARLOS

MARCELLO's lieutenants from the Gulf Coast of Mississippi,

probably Gulfport,

Mississippi, had been

"in Vicksburg,

Mississippi on 12/19/68

and 12/20/68, attempting to arrange

things so the town could be opened up to prostitution and

extensive gambling

activities

Attorney SHANAHAN was unable

to

find out what this individual's nane was, other than

possibly GUISSIPPI (phonetic) or COSANDRA (phonetic).

MARCELIO's lieutenant is supposed to have arranged

through doiNe. chuls, recently elected District Attorney,

Sheriff PAUL L. BARRETT Of Warren County, Mississippi, Chief

of Police MARION BROWN, and Detective Captain ROY REDDITT

of the Vicksburg, Mississippi Police Department, to place

prostitutes at the Holiday Inn, the Magnolia Motel, and the

Downtowner, all of vicksours would be given permission

In addition, T. D. FARRIS,

T. D. 'S

Place, China Street,

and

the backing to operate a numbers, game

at his lounge.

BERNIE BIERMAN

was

allegedly offered

the job of strongarm

man to keep any

dissenting elements in line;

however, BIERMAN

allegedly refused the offer.

BIERMAN was to have his existing

debts

liquidated, which

amounted to approximately $200,000,

in return for his

services.

VV

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NO 92-36

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Approximately two months ago,

an unidentified

gambler from the Gulf Coast is supposed

to have offered

an ex-gambler, who now resides in Vicksburg, Mississippi,

$10,000 if the Vicksburg man would go into business with

him

and

set up a layoff operation for the Gull Coast gamblers.

The Vicksburg man is supposed

to have turned down the offer,

claiming that he is now too old to get involved in this.

type of an operation.

Attorney SHANAHAN also advised that he has been

told that JOHN ELLIS and other members of his family, also

attorneys, represent a financial syndicate that is backed

by unknown persons in Cleveland, Ohio, whose principal

interest is in real estate.

SHANAHAN

advised

that he

considered it strange

that a financial syndicate would

operate through young lawyers with limited experience since

graduating from law school, rather than through one of the

established and legitimate banks.

Attorney SHANAHAN

information to been supported in pete been les

learned of the above, he talked

to one KAY KING who

is now

a clerk at the Downtowner Motel. KING indicated that she

was going to leave town,

taking a two-week vacation to

Acapulco, Mexico and that she was thereafter going to New

Orleans, Louisiana, where she was going to get a setup at

an unspecified lounge

where she anticipated making $400 per

week.

SHANAHAN was of the opinion that KING would be

involved in gambling and or prostitution.

The Houston Division

advised

maintaining contact with HO 1293-PC in

identify the location of the

alleged

MARCELLO ON 12/17/68.

on 1/15/69, they were

further

attempt

to

meeting

attended by

WW

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NO 92-36

JCH - Smj

and that New Orleans has information that @ DÂy was making

contacts reportedly to obtain financing for this purchase

through CARLOS MARCELLO.

Mr. POL advised that, according to his source

o information, the motton or 1/20 was at lie take tanor.

for discussion of the reconstruction

Lake Manor.

Mr POL advised that Delta-Wye Corporation; 858

Market Street, Pascagoula, Mississippi, is doing the

drafting work

for the reconstruction job.

he said that

Delta-Wye lists A: JOHN OLINGER,/ P. E:;

and PHILLIP M.

HUMBER, Pa Le, as

its engineers;

He said that Associated

Reality

is one and

Company; 858 Market Street, broker-KELLIS MADISON,

the

same organization as Delta-Wye Corporation:

He said

that he does not know what activities Associated

Reality Company is dealing in.

Mr: Por further advised that Bagwell Neal' Contractors

Baton Rouge, Louisiana, is making

a very strong effort to obtain

the painting contract

for the new

Ingalls,Shipbuilding

Corporation under construction at Pascagoula; Mississippi:

said that he suspects that this company may have hoodium

connections but that he has no proof of this:

He Said that

his

company would be very destrous of avoiding awarding a

contract to any organization that is involved with the hoodium

element:

By communication dated 2/3/69, the New York Diviston

advised as follows:

On 1/29/69,

Former PCI MICHAEL RAYMOND and Chicago

PCI LEO NETZEL furnished the following information concerning

their trip to tbe New Orleans area:

They

advised they departed o'Hire Airport, Chicago,

10: 40 AM ön 1/22/69; aboard belta right 765. After one stop

in St. Louis; they arrived in New Orleans shortiy after 2:00 PM.

There they

were met by FRANK CASONE:

RAYoND was introduced as

PAUL ROGO:

ÂẦA

COVIOR PAG

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NO 92-36

JCM • smi

CASONE drove them directly to the

lown and Country

Motel in New Orleans and there left them in the automobile

and entered the motel. Shortly thereafter, CASONE Came back

to the car and told them they had an appointment with CARLOS

MARCELLO for the next afternoon.

They then had lunch in the

New Orleans area and then drove to Gulfport, Mississippi,

where CASONE Checked them into the Admiral Benbow Motor

Inn.

CASONE stayed with them the rest of the evening, which

included the "Trophy Room" of the Broadwater Hotel, which

RAYMOND advised CASONE seemed to be quite well known at.

During the course of the evening, RAYMOND gradually

built a cover story for himself with CASONE indicating to

CASONE

that he was a wealthy fi

nancier currently out of

Chicago who had excellent banking connections in Miami, Nassau,

Bahamas, Switzerland, and Montreal.

In turn, CASONE advised

that he was the former "boss" of Memphis and

was very strong

in the Gulfport and New Orleans areas, as well as being a

"dear friend" of CARLOS MARCELLO, Both RAYMOND and NETZEL

that, at all times, CASONE carried a gun with

bim.

discussion, he continually mentioned various

political figures he was acquainted with and indicated he was

currently operating in real estate.

Specitically, RAYMOND

indicated to CASONE

that his intention in meeting MARCELLO

was that he desired to put up a major resort hotel in Nassau,

Bahamas similar to Paradise Island.

advised that he

specifically wanted MARCELLO's cooperation in handling the

gambling casino at this proposed hotel. In this connection,

RAYMOND indicated

to CASONE that he had an "in" with the

Bahamian Government to obtain a license for gambling.

During the discussion concerning financing for

this project, RAYMOND indicated that major loans would have

to be made and that some collateral might be needed to finance

these loans. CASONE indicated to RAYMOND and NETZEL that this

would

be no problem at all, that he or MARCELLo would have

BBB

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NO 92-36

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access to any type of collateral necessary.

The inference

was

clear to both NETZEL and RAYMOND that CASONE

was referring

tO

iliegal collateral, either spurious or stolen.

The

following morning CASONE woke them early at

7:00 AM.

They then had breakfast and then drove to friends

of CASONE's named BETTY and BILL FLANAGAN, Who are in the

real

estate

business in Gulfport.

They then drove to New

Orleans

and the Town and Country Motel.

They went directly

to the rear office of CARLOS MARCELLO but, after waiting

few moments, decided to have lunch.

While they were eating

lunch, the

telephone rang in the restaurant summoning them

to MARCELLO's office.

As they entered MARCELLO's office,

they noted that he was seated

behind & large desk which had

the initials CH.

CASONE immediately became very subservient and

sat on the edge of his chair throughout the discussion.

RAYMOND WAS

innediately introduced by CASONE as

ROGO, and MARCELLO advised RAYMOND to call him CARLOS.

RAYMOND then proceeded for

about 20 minutes to lay out

plans for a proposed resort hotel in the Bahamas.

his

Near the

end of his discussion, he indicated that he intended to have

the gambling casino on the top of the hotel, which would

afford a panoramic view.

At this point, MARCELLO jumped

into the conversation and advised that this would not be a

workable /plan.

He advised that the casino must be on the

ground floor, as the wives returning in the evening with

their husbands would

never let then get up to the gambling

casino.

how

He advised they would

also have to consider carefully

many stories the

casino would have depending on building

costs in the Bahamas.

He stated it would also be more

profitable to increase the number

of rooms that RAYMOND

intended from 250 to 400 or 500.

MARCELLO pointed out that he has approximately

100 rooms at his motel

and could almost run the motel as

cheaply with double that

number.

MARCELLO also disagreed

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NO 92-36

JCM - Smj

with

RAYMOND's theory of financing concerning a lease back,

as

they would have to have the control over the hotel firmly

in their hands.

MARCELLO then went into the ganbling end and

advised

he

would completely handle

all arrangements, including

obtaining and financing the gambling equipment and all of the

gambling personnel needed.

He advised that he had access to

lists of gamblers throughout the country, could immediately

check on their credit with one phone call, and could arrange

needed

gambling junkets. He asked RAYMOND whether or not he

had the land available, and

RAYMOND indicated he did. He also

asked RAYMOND whether or not he could obtain adequate financing,

and again RAYMOND indicated he probably could.

MARCELLO advised that the next thing he desired

in connection with this transaction was to have one of his

men go with RAYMOND to the Bahamas so that they could "clock".

the take at Paradise Island.

He indicated he would like to

have this done in the next week or two

After about 45 minutes of discussion, the conference

ended, and RAYMOND

and NETZEL left the office, CASONE staying

for a few minutes.

When CASONE came out, he seemed to NETZEL

and RAYMOND "on top of the world." They had noted that, prior

to going into the office, he was somewhat uneasy.

It was NETZEL's opinion that RAYMOND had completely

impressed

both CASONE and MARCELLO with his ability to perform.

That evening CASONE, NETZEL, RAYMOND, and three girls

went out.

One of their dates

was MARCELLO's secretary, DOttY.

RAYMOND continued with his cover as that of a big

tinancier

and spender and

after they had been drinking for

some time, invited them

all to go to Nassau that night.

The

following morning be did, in fact, fly them to Nassau, where

they stayed several days

at Paradise Island. During the course

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of this

stay, CASONE spoke with the "pit boss" and several

Officials of the casino.

He then told RAYMOND that the

casino

was netting $30,000,000 a year, of which $10,000,000 was

being "skimmed."

RAYMOND then flew the party by chartered airplane

to the Florida Keys, where he advised them his yacht would

pick them up.

RAYMOND advised he actually does have a yacht

but

that the water was too rough for the vessel to come from

Miami to the Keys.

RAYMOND stated there they parted, CASONE

returning to

the New Orleans area, and he and NETZEL flying

to New York.

While NETZEL and RAYMOND were being interviewed in

New York, CASONE telephoned them and advised on his return

he had gone to see MARCELLO again and told him what he had

found out about the take in Paradise Island.

They advised

that CASONE was most intent on progressing the "deal."

RAYMOND

advised that, in regards to his taking a

MARCELLO representative to the Bahamas

to "clock" the count,

he thought he would

advise MARCELLO and CASONE that he was too

tied

up in financial affairs and would request MARCELLO tO

send his own man over alone. .

NETZEL advised he would have to immediately return

to

Chicago, as he was

advised by his wife that his daughter

had

fallen

and suffered a concussion.

Both RAYMOND and NETZEL were questioned concerning

a possible violation in this scheme:

and they both indicated

that they were sure that MARCELLO or CAsONE of together would

offer

fraudulent securities it and when the

finance the hotel.

NETZEL again reiterated the fact that RAYMOND was

"solid" with both CASONE and MARCELLO as a result of their

trip.

ÈEE

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physically observed on 2/4/69

2/5/69, by SA JOHN A.

AMBLER in Tampa, and TP 120-C has

that TRAFFICANTE

and his wife departed

Tampa during the afternoon of 2/5/69,

travelling via automobile to Miami.

GGG

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DAB: das

ADMINISTRATIVE

The following investigation was conducted by SA

DAVID A. BARCLAY:

On January 21, 1969, SA 775-C-TE advised SA DAVID A.

BARCLAY that he asked MORRIS JAFFE approximately two months

ago how he was getting along with the

"Mafia"' in New Orleans.

Informant said JAFFE told him that nothing further had been

developed regarding the shopping center he was planning to

build in the New Orleans area.

Informant said he doubted

very much if the

• "Mob" would

confide very much with MORRIS

JAFFE as JAFFE is too talkative.

Informant said he will pro-

bably see JAfFE at dinner on Thursday of this week and if

the opportunity presents itself, he will ask JAFFE if any-

thing further has developed in regard to his contacts with

CARLOS MARCELLO regarding the building of the shopping center

On February I1, 1969, SA 775-C-TE advised SA DAVID A.

BARCLAY he has not haû à chance as yet to talk to MORRIS JAffE

regarding his interest and/or association with CARLOS MARCELLO

Informant stated he is attending a dinner

this Saturday night, February 15, 1969, and possibly JArtE

will be at the dinner at wnich time he will iry to talk to

him about his association with CARLOS MARCELLO.

On March 6, 1969, SA 775-C-TE advised he has not

a chance to talk

tO MORRIS JAFFE rEgarding CARLOS MARCELLO;

however, he doubts if JAFFE has anything going with MARCELLO

at the present time, as darte is busy with MicKer MANtlE

his chain of restaurants and also is busy with the lexaco 011

Corporation regarding

the installation of food service with

new

service stations in the Texaco Oil Corporation chain of

stations. Informant advised. when the opportunity presents

itself, he will talk to JAFFE about MARCELLO and advise Special

Agent BARCLAY.

HHH

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On January 16, 1969, JK 108-C was contacted by

SA ORVILLE R. SHOOK and advised he had no information that

CARLOS MARCELLO had been making trips to Pensacola, Florida,

and he did not know BERNIE BIERMAN.

By communication dated 3/18/69, the Houston Division

advised as follows:

HO 1293-PC advised on 3/11/69, that no further

action has been taken concerning MARCELLO's efforts to purchase

a motel in Bay City, Texas, nor has any attempt been made

through HO 1293-PC to purchase the 66 acre parcel of land

in Friendswood, Texas, in which MARCELLO had indicated a

prior interest.

HO 1293-PC advised that information had been received

IrOM JACK HALFEN, who resides at collegeport, Texas, that

MARCELLO iS indebted to HALFEN for some past

favor.

HO 1293-PС

stated that HALFEN spends a great deal of time in HO 1293-PC's

place of business and has indicated a desire to share a part

of the office.

11J

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