Agency: FBI
Originator: DEPT. OF JUSTICE
From: DOJ/CRIM
To: HQ
Document date: 10/15/1962
Document type: PAPER, TEXTUAL DOCUMENT

## Page 1

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hotel.

DATE: 11-14-2017

JFK Assassination System

Date:

5/4/2015

Identification Form

Agency Information

AGENCY:

FBI

RECORD NUMBER:

124-90087-10019

RECORD SERIES: HQ

AGENCY FILE NUMBER: CR 63-7893-3

Document Information

ORIGINATOR: DEPT. OF JUSTICE

FROM: DOJ/CRIM

TO: HQ

TITLE :

DATE: 10/15/1962

PAGES:

55

SUBJECTS :

IR WIN SIDNEY. WEINER

JAMES RIDDLE HOFFA

DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT

CLASSIFICATION: Unclassified

RESTRICTIONS: Consulted

CURRENT STATUS : Withhold

DATE OF LAST REVIEW: 07/14/1998

OPENING CRITERIA: APPROVAL OF DOJ

COMMENTS: MEMO, REFERRED TO DOJ, INC APPENDIX A,B,C

v9.1

DocId: 32329636

Page 1

---

## Page 2

Released undef the John F. Kennedy Assassination Records Collection Aet of 1992 711 U5C

DATE: 11-14-2017

•CANDARD FORM NO. 64•* '

Office Memo andum. • UNITED SE TES GOVERAMENT

TO

Director

DATE:

Federal Bureau of Investigation

October 15, 1962

FROM

Herbert J. Miller, JI.

Vistant Attorney General, Criminal Division

SUBJECT

International Brotherhood of Teamsters,

RECY 28

OCT

Chauffeurs, Warehousemen and

Helpers of America

Bonding Program

Copied for H.S.C.A

James Riddle Hoffa

2/27/78 -REH

Paul L. Dorfman

p. 1-4, ef, 3-12,14.16,28, 32,

1462

Allen M. Dorfman

34,36,38,39

Hotel.

PRO

Allegations have been received that Paul and Allen

Dorfman are and have been the liaison between Tcamster officials

and Chicago racketeers.

Reports have been received alleging that

Allen Dorfman has supplied subject Hoffa with large sums of money

One of the areas in which misapplication of moneys has been

alleged is the Teamster Bonding Program.

After passage of the Landrum-Griffin Bill in September,

and Surety Compagy of Akron, Ohio, a subsidiary of the/Illinois,

open (E

nd

Dorfman, and Irwin Weiner, a business associate of Chicago racketeers

Obbie frabotta,

Investigation in the Organized Crime Program)

- When the McClellan

Committee released a letter publicizing the Dorfman and mob control

of the Teamster bond commissions, the Illinois Reserve Insurance

Company withdrew its subsidiary, sumit, from the program.

The Teamsters then searched for another vehicle for their

bonding program. Through Sol Scawartz and San Francisco criminal

lawyer Jake thrlich, Stewart Hopps, reinsurance expert and alleged

swindler,

(See Appendix A) was contacted. Hopps, a former associate

of Lowell Birrell, has been under indictment in Baltimore and New

"York and has a reputation of gaining control of companies to siphon

off good securities while replacing them with worthless ones. Hopps

contacted several companies but was unable himself to put the deal

together. He did introduce a young insurance man, Charles W. Bray,

to Schwartz, Weiner and Dorfman; Bray in the latter part of 1959

succeeded in establishing a program.

REG- 18

7823

ST-120

9

OCT

61962

ENCLOSURE

Bertel

10

DocId: 32329636

Page 2

---

## Page 3

Released under the John'T. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hatef

DATE: 11-14-2017

Bray, who inherited an insurance business from his father,

had a small company in Illinois called Central Casualty Company,

the former LaSalle Insurance Company. He also had an agency, Homer

Bray Services, Inc.. Central Casualty was unable to be the prime

underwriter because it lacked the Treasury list certification required

Bray arranged for United Benefit Fire Insurance Company

of Cmaha to be the underwriter. Bray's contact in United Benefit

was a man named Earl ECefry, a vice-president and a director of the

company.

Bray then arranged for reinsurance up to the first $100,000

with the following companies: ri-State Insurance of lulsa._ Oklahoma

(30%) \United Bonding of Indianapolis, Indiana

Fire and casualty

2 Fort Worth, Texas (15%). United Benefit was to

Keep 25% and Central Casualty, Bray's company, was to take 20%.

The excess over $100,000 up to $500,000 was to

be reinsured with

Lloyds of London.

Bray's agency, Homer Bray Services, Inc., was designated

the general agency for the bonding. Bray also set up a local agency,

Inc., incorporated in Illinois in December, 1959, and

Homer Bray Services (Canada), Ita. Schwartz and Weiner gave Bray

the applications that Summit had received before it pulled out.

These applications reportedly represented approximately 80% of

Teamster locals throughout the country and an estimated $1, 000,000

in commissions over a three year period.

Bray arranged a reinsurance treaty for Central with

There have been conflicting reports as to the percentage

shares of the participants but apparently Schwartz and Weiner were

to receive 20% of business they brought. Bray was to get 25% as

general agent out of which he would pay his sub agents, and United

Benefit was to get 37herom the other companies for the reinsurance.

Angelo J. Bianchi, former President of Summit Fidelity,

joined Central to supervise bail bond activities which Central was

also assuming along with the Teamster bonding business. It has been

alleged that this was done in order to give Weiner's agency, the

merican Beil Bond Company, nationwide coverage through Central

Casualty and United Benefit.

The business which should have been a highly profitable

one crashed in approximately two years. Various reasons have been

assigned for the failure - (1) that Bray, relying on Dorfman's

-2 -

DocId: 32329636 Page 3

---

## Page 4

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE: 11-14-2017

promises to send Central Teamster A & H & Health & Welfare

business, as well as various types of insurance related to loans

from the leamsters Pension Fund, overextended himself in

anticipation of the added business which never came; (2) that,

although the Teamster and bail bonds were highly profitable,

Central wrote high risk auto and taxicab insurance which resulted

in heavy losses; (3) that money was diverted from the company to

Schwartz, Weiner and Dorfman.

In November, 1960, Oxford which had been in Bray's name,

was taken over by Schwartz and Weiner and a special account opene

at the Exchange Bank in Chicago - with which bank Dorfman and the

racketeers have frequently dealt.

In 1961, United Benefit was denied a license in the

District of Columbia reportedly because of a false filing. United

Benefit was shaky and the decision was made to replace it as primary

carrier.

Bray contacted/Resolute Insurance Company of Providence,

Rhode Island, whose president Is Lewie vorganstern:

"to become the underwriter.

In September, 1961, Central Casualty and

United Bonding were canceled as reinsuring companies retroactive

to July 15 and, in November, Houston Fire and Casualty was canceled

and Resolute became the only carrier of the first $100,000.

The agency for the insurance was

,changed also from Oxford

to

Titan Management Corporation - an Iryn Weiner Company.

In December, the state insurance director, Joseph Gerber

(of whom there have been reports of collusion with Dorfman and

Hopps) investigated Bray's firm, Central Casualty. In January,

1962, Gerber announced that the firm was short one and one-half

million dollars and shortly thereafter the firm was liquidated.

According to an anonymous letter to the Department (See

Appendix B for copy), in early 1962, Bray was summoned to the offices

of Bieber and Brodkin, attorneys who frequently represent racketeers,

add was confronted by Phil Alderisio who told Bray that he, Alderisio,

was interested in seeing Bray pay his debts and that Alderisio dia

nöt go to court to enforce them. Alderjelo told Bray that he expected

Bray to pay off debts to the Weiner group, the R.. O. R. agency

(partners are Don Roth 'and Cozie Rothfield) and the Guaranty Bank

the old Southmoor bank) in that order.

Colorado, an associate of Bray's who is now in business with Sam.

Kaye of Miami, was also visited, three days later, in Miami by Santos

aficante who

, had a similar message for him.

CA

- 3 -

DocId: 32329636

Page 4

---

## Page 5

Released under the John F. Kennedy Assassination Records COllection Aet of 1992 (14 USe 2107 Mote).

DATE: 11-14-2017

Toll call studies have revealed that the Dorfmans played

a prominent role in the Bonding Program though nominally not officers

of the companies.

It is requested that Charles Bray and James Eagan be

interviewed and an investigation be instituted to trace the money

that went from the Teamster Locals for bonding premiums through the

various companies in order to determine whether or not the funds

may have been diverted to Chicago racketeers or Teamsters officials.

This investigation should include a determination of the amount of

commissions received by Weiner, Schwartz and Bray - and the identity

of the bonding agents.

The investigation should also determine the recipients

of the profits of the bail bond business since this is alleged to

be in the control, of the racketeers. In that connection, it should I ly

be noted that the Cosmopolitan Company-of. Chicago took over Central's

bail bond businéss

in early 1962 and has since acquired control of

United Benefit Fire of Omaha.

Cosmopolitan officers and directors

Include the names of Volin and Bergman. Determination should be

made if the Volin is the same person who was in the Weiner-Volin

agency and if the Bergman is related to the Bergman-Lefkow agency

frequently used by Dorfman.

Perhaps significant is the fact that Irving Be

Benjamine

the

Illinois state insurance investigator in charge of the Central

Casualty review, has since taken a position with Cosmopolitan.

Toll call records are available in many instances relevant

to the proposed examination.

A chronology of known events in the

bonding scheme is attached (Appendix C).

Potential violation include $ 13(c) of the Welfare and

Pension Plans Disclosure Act, violation of 18 U.S.C. 1001 in connection

with filings required by Treasury and Interstate Commerce Cormission,

and other Government agencies, tax evasions, mail fraud and interstate

transportation of stolen property.

Attachments

-4 -

DocId: 32329636

Page 5

---

## Page 6

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE: 11-14-2017-

APPENDIX A

BACKGROUND INFORMATION ON STEWART HOPPS

Stewart Hopps is an international highbinder of the

Lowell Birrelf ilk. Allegedly he at one time had some connection

with lloyds of London, and he may be British born.

The State

Insurance Commissioner of Idaho lists Hopps' associates as:

Lowell Birrell, Carl Betts, P. R. Cairns, Roy H. Callahan,

0. B. Calloway, Virgil Dardi, G. I. Gotz, Louis B. Nagi, Mrs. M.

Birrell Pryor, Walter Ricker, Paul M. Roca, Mrs. B. E. Shoglund,

and Robert F. Six.

And companies as:

American Leduc Petrol Ltd.

Arizona West Insurance Co.

Bonami Co. (N. I.)

Cent Standard Insurance Co. (S. D.)

Doeskin Products (N. Y.)

Greater New York Industries (N. I.)

Guardian Insurance Co. (S. D.)

Inland Empire Insurance Co. (Boise, Idaho) in Utah and Arizona

Louisville Fire Marine Co. (Ky.)

Pioneer Equitable Insurance Co.

Rhode Island Insurance Co. (Providence)

Royal American Insurance Co. (Ala.)

Swan Finch Oil Corp. (N. Y.)

Irans-Pacific Insurance Co.. (Ariz.

United Dye and Chemical Co.

(N. Y.)

William Penn Fire Insurance Co. (Pa.)

Practically all have since been liquidated.

Others who have been associated with Hopps are Robert

Hopps, Geraldine Hopps (Stewart's wife), Nadine Offenbach, Ida

Strombach, Robert Gotz,.J. W. Ehrlich, Harold C. Ridlick, ani

Stanley Borgenight. Hopps has allegedly used the alias of

Van Galder in running the International Guarantee and Insurance

Company.

Many of the Hopps' companies have similar names; the last

named company is believed to be identical with the International

Guarantee and Irust Company of Tangiers, a company in which Hopps

and Fhrlich were officers and the assets of which were seized by

California.

It appears that several companies connected with Hopps

and/or figuring in the bonding situation were incorporated in

ENCLOCURE

63-7893-3

DocId: 32329636 Page 6

---

## Page 7

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USe 2107 Hote).

DATE: 11-14-2017

k:

- 2 -

Panama. It has been reported that the reason Panama is used for

these purposes is that in Panama the day of incorporation can be

backdated to any date the incorporator desires.

Among companies with which Hopps has had some connection

and which are not described in the chronology of IBT Bonding, are:

Draftsmen Underwriters Agency: a personal service corpora-

tion to give advice and act as insurance broker.

The company was

going to move to California in 1960.

Exchange Cabush Underwriters, Brotherhood Building,

Kansas City: & small concern in which Hopps in May 1960 is

Iiquidating his interest.

Exchange Casualty and Surety Company: Hopps had an arrange-

ment with them in an advisory capacity and, although Exchange wanted

to pay him directly, Hopps wanted to receive the fees through

Affiliated Brokers,

Inc. because of income tax difficulties.

Tropical Holdings, Inc.: Hopps said he had no interest

in this company but had borrowed money from it to purchase a house.

The mortgage was held by Republic National Bank and Hopps paid the

company back through the U. S. Marine Company, 44 Wall Street.

(Although Charles Bray had admitted having a 75% interest in this

company, Hopps maintained that Bray did not have any interest in

the company and felt sure that he, Hopps, would know if Bray did

have.)

Hopps has listed his bank accounts as follows:

Manufacturers Trust Company, New York, N. Y. (checking)

First National Bank, San Raphael, California (wife's checking)

No other accounts and no safety deposit boxes.

Stewart Hopps (1960 address: 2 Cliff Road, Belvedere,

California, GE 5-4889; office:

c/o Ehrlich, 333 Montgomery Street,

San Francisco, California,

GA 1-4530;

44 Wall Street, New York City,

but not after May 31, 1960). In May 1960 Hopps said he first met

Charley Bray (in June 1960 Hopps said he had known Bray for sometime).

Hopps had known Bray's father.

Hopps contacted Bray soliciting

2

DocId: 32329636

Page 7

---

## Page 8

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107 Note).

DATE: 41-14-2017

APPENDIX B

Copy of anonymous letter to this Department, postmarked

Chicago, Illinois, April 30, 1962, 2 P.M., with return address

Moore, Case, Lyman and Hubbard, 175 West Jackson Boulevard,

Chicago, Illinois.

The Irwin Weiner-American Bonding Agency-

Teamsters Bond-Guaranty Bank-Bray-Central

Casualty-Crime Syndicate tieups

In 1959 the Bond required of the Teamsters Union officials and

employees under the terms of the Magnum-Griffin act was written

by the Summitt Insurance Company•

The broker of record was the American Bonding Agency of Chicago

which is headed by Irwin Weiner.

The Chicago Tribune and other papers claimed that Weiner was a

well known partner and associate of gangsters and insinuated

that Allen Dorfman, Hoffa's favorite broker, and perhaps Hoffa

himself were sharing in commissions estimated at close to

$1,000,000.

The "heat" on the Summitt Insurance Company was too great for

that company's owners to stand. (The Allen Blank-Reserve

Insurance Company group). They cancelled the Teamsters bond

and cancelled the "General Agency" authority which Weiner-

American Bonding Agency held for the writing of bail bonds

nationwide.

Weiner and his associates were desperate for a market.

Charles W. Bray, President of Central Casualty Company of Illinois,

President of Homer Bray Service Inc. (a General Agency) and President

of Oxford Agency, Inc. (a local agency) developed a market via the

United Benefit Fire Insurance Company of Omaha, Nebraska.

Bray's company, the Central, took heavy reinsurance but it could

not "front" the Teamsters Bond because it was not on the U.S.

Treasury Approved List.

The deal that Weiner and his associates made with Bray was that

Bray's Oxford Agency would get the entire commission on the

Teamsters Bond but that Bray would secure for Weiner-American

Bonding Agency a nationwide Bail Bond General Agency for both

United Benefit and Central Casualty at extraordinarily high

commissions (60% on the published basic 2% rate and the right

to keep 100% of anything above the published rate that they

could gouge out of customers).

3-7893-3

ENOLOSORIG

3

DocId: 32329636 Page 8

---

## Page 9

Released under the John F. Kennedy Assassination Records Collection Act of 1992 441 USC 2107 Note).

DATE: 11-14-2017

- 2 -

Bray to have no interest in the Bail Bond General Agency.

Things went as planned and Bray, quite truthfully, testified

before Examiners of the McClellan Committee that he and his

family were the sole owners of Oxford Agency and that Oxford

Agency was the sole

broker on the Teamsters Bond.

The loss record on the Teamsters Bond was excellent and the loss

record on the Bail Bond business was even better.

United Benefit, Central Casualty, Oxford Agency, American Bonding

Agency, Bray and Weiner were all

doing well and 1960 saw a great

intimacy growing up between the Bray and Weiner groups and insur-

ance activities between them expanded to Taxicabs, Financial Guar-

antee Bonds, Mortgage Guarantees, Contractors Completion Bonds, etc.

Central Casualty and the Bray interests needed more capital to

handle these lines and so did United Benefit, whose then President,

Parl Cefry, was an intimate friend of Bray.

Weiner arranged for a $200,000 loan to the Bray group from the

ixchange National Bank of Chicago secured by a Guaranty Bond o

nited Benefit and then later for a $150,000 loan from th

Southmoor Bank (now Guaranty Bank) of Chicago secured by the

pledge of Central Casualty stock..

Bray's Vice President Jim Egan also negotiated a $150,000 loan

from the Pan American Bank of Miami, which loan was also secured

by Guaranty Bond of United Benefit.

The capital of both Central Casualty and United Benefit was

increased, Central's largely by indirect subscriptions from

those who

method.

did the borrowing and United's in part from this

In 1961 things began to go bad.

The Teamsters Bond and the Bail

Bond business remained very profitable from an underwriting stand-

point but the orthodox agents of both Central and United Benefit

began drawing away from these carriers because of the "gangster

types" with whom they were forced to deal.

The loss record on the taxicab business was horrible and the

claims under financial guarantee and contractors bonds, tremendous.

The Chicago Tribune and other papers started a campaign against

Irwin Weiner as being the front for Crime Syndicate ownership of

a Chicago Lard Processing firm "Twin Foods of Illinois".

Court action over the licensing of Twin Foods ensued and the courts

held that "unsavory ownership and affiliations" had been proved.

4

DocId: 32329636

Page 9

---

## Page 10

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (41 USC 2107 Note).

DATE: 11-14-2017

- 3 -

The Company's license was refused and the papers shrieked about

Weiner and his Crime Syndicate pals--Sam (Tootsie) Bataglia;

Milwaukee Phil Alderesio, Joey Acaro, etc. They tied in the

American Bonding Agency and rehashed

the leamsters Bond situation.

This was too much for the British controlling stockholders of

United Benefit.

In May 1961 they fired the company's President,

Karl Cefry, and cancelled all contracts with the Bray, Central

Casualty, Oxford Agency, American Bonding Agency group.

Bray was able to replace the Teamsters Bond with the Resolute

Insurance Company of Rhode Island, through that Company's

President (Morganstern of Hartford) and to once again get heavy

reinsurance back for Central Casualty Insurance Company.

The United Benefit gave an extension of six months for the Bray-

Weiner group to get a new market on Bail Bonds and meanwhile

Bray's Central Casualty Insurance Company granted 100% to United

Benefit.

All other classes were cancelled by United Benefit.

Without United Benefit's help the Bray group simply did not have

enough resources to weather the storm caused by loss of agency

plant, terrific losses on taxicab fleets, financial guarantee

bonds, contractors bonds, etc. and they rapidly approached

insolvency.

Weiner and his associates saw "the handwriting on the wall" and

began to make moves to protect themselves.

Charles Bray was ordered to appear at a meeting which was Chairmaned

by Milwaukee Phil Alderesio, flanked by several sinister "guards"

(sic!).

At this meeting Bray was instructed to sign his Oxford Agency

stock in blank and turn same over to Irwin Weiner.

There was a considerable display of 48's and a very blood curdling

discussion as to what would happen to Bray and his family if he did

not obey.

Bray signed and at a later meeting held in the offices of Harris &

Burnham, control of the Oxford Agency was turned over to Weiner and

his associates (i.e. control and ownership of the commissions on

the Teamsters Bonds) •

A little later Bray was instructed to appear at another meeting

and this time he was ordered to have the Central Casualty Company.

5

DocId: 32329636 Page 10

---

## Page 11

Released under the John F. Kennedy Assassination Records Collection Aot of 1992 (44 USC 2107 Note).

DATE: 11-14-2017

- 4-

cancel its very profitable reinsurance of the Resolute on the

Teamsters Bond. (This so that Weiner-Oxford et al would get

more cormission by replacing the reinsurance elsewhere).

Bray, frightened to death, obeyed.

Thus, Weiner and his associates became the sole owners of the

Oxford Agency and the huge commissions on the Teamsters Bond.

Later, fearing an investigation of Oxford, Weiner arranged for

Morganstern of the Resolute to transfer the brokerage to a new

corporation owned by Weiner et al--The Titan Agency.

In December 1961 the Illinois Insurance Department took protective

custody of Central Casualty Insurance Company. In February 1962

Central Casualty Company was put into liquidation.

Bray and his various companies literally "owed everybody" and his

biggest source of income, the Teamsters Bond, had been taken away

at gun point.

Again Weiner called Bray to a conference. Again Milwaukee Phil

Alderisio was the spokesman.

(Bray states that at the meeting there were also present four

elder statesmen of the Crime Syndicate, but he will only divulge

the names to those from whom he feels he may get protection.)

At this meeting Bray was told that Weiner was "stuck" for the

return premiums and outstanding losses on the taxicab lines

placed with the defunct Central Casualty Company as well as for

the return premium on the Teamsters Bond reinsurance (which had

not been paid by the time the Illinois Department stepped in).

Bray protested that the Teamsters Bond commission he had assigned

to Weiner far exceeded the sums under discussion but Alderisio

remained adamant and Bray was told that they didn't dare where or

how he raised the money. The Weiner group must get theirs first-

and soon-or else!!!

They then added that the R.O.R. Agency of Chicago was also stuck

Bray was told that R.O.R. and Guaranty Bank must be number 2 and

number 3 on the payments list, any laws of receivership to the

contrary.

DocId: 32329636 Page 11

---

## Page 12

Released under the. John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE: 11-14-2017

- 5-

About a week later, former Vice President Jim Egan of Central

Casualty, who was

in Miami, (where he has a local agency) got

a call from Milwaukee Phil Alderesio.

Alderesio called on Egan and told him that he knew that Egan,

Bray and a man named Sam Kay owned a firm speculating in foreign

currency•

He repeated the instructions given to Bray by "the Mob" and told

Egan that if he wanted to live, all money must go first to Weiner

et al, then R.O.R. and the Guaranty Bank. To Hell with what was

due to the Pan American Bank or anyone else.

Later the reputed big time mobster, Santos Traficante called on

Egan and repeated the warning.

Both Bray and Egan are terrified but they will not rush in and

volunteer information as they are afraid of being tailed; in

fact Bray was very cautious and not at all helpful when the

F.B.I. interviewed him.

Now, however, he realizes that his only

safety lies with the U. S. Government

and if proper government

authorities call they will give all possible help.

Bray's home address is 820 North Glenayre Road, Glenview, Illinois.

Egan's home is in Denver but he is staying in Miami at the Wautilus

Hotel and works out of Sam Kay's office, Miami, Jefferson 1-0408.

As to the Teamsters Bond. Two different companies have offered

to write same at a saving of over $200,000 but it remains with

the Resolute because that company has agreed to pay 85% profit

commission to Weiner's Titan Agency and Titan has informed

Morganstern of the Resolute that they are in a position to see

that no losses will be reported to him company.

DocId: 32329636

Page 12

---

## Page 13

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107 kote).

DATE: 11-14-2017

- 6 -

WETNER-AMERICAN BONDING-ET AL

With further reference to the American Bonding Agency-Irwin

Weiner United States-wide bail bond operations:

Pretty generally all state insurance department officials and

United

• States Governmental department officials with whom I

have talked are thoroughly aware of the fact that the control

of Bail Bond facilities is an absolute essential to the rackets

and to organized crime.

An idea of how important this is may be gained from the facts

which show that to get bail bond facilities Weiner, et al

originally gave up the huge commission on the Teamsters Magnum

From what Weiner and others have stated it seems that the

Treasury Department and the F.B.I. have both extensively inves-

tigated his organization without being able to discover the facts.

The reason for this probably lies in the very nature of the bail

bond business which is quite unlike any other form of insurance

activity.

On bail bonds the published tariff rate differs by state but is

on average $2.00 per $100 of bond granted.

Commissions paid to a bail bond agent vary from 25% to 60% of

this basic tariff premium (depending upon volume, past loss

record, etc.).

Generally speaking the books of both the insurance company and

the bail bond agent clearly reflect these figures, and taxes

are properly paid on same.

As different from any other form of insurance coverage, the bail

ond business is, however, allowed to charge a policy fee o1

service fee and this fee runs anywhere from $8.00 to as high ai

$20.00 per hundred of bail bond coverage.

In some states, such as California, it is mandatory that this

service fee show on the face of the policy but the majority of

states are pretty liberal in allowing the "fee" to be a personal

transaction between a bail bond agent and his client.

Since the insurance company gets no part of this fee, it isn't

very curious and is not interested in the bookkeeping. .

DocId: 32329636

Page 13

---

## Page 14

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107-Hote).

DATE: 11-14-2017

-7.-

In many instances the fee or a portion of same is paid in cash and

for a big agency, such as Weiner's, the cash transactions are in

very large figures indeed.

In addition to the premium and the policy fee most clients have

to put up collateral and here again is a field where the bail

bond agent has many possibilities of making money.

frequently, for a hard pressed client, the bail bond agent will

demand an interest in the man's business, a share in the ownership

of his real property, etc.; or else let him go to jail.

The biggest volume of bail bond business is, however, definitely

directed by those who control organized crime. When organized

crime guarantees one of its minions no collateral is taken by

the bail bond agent and on top of that he splits his policy fee

with the organization directing business to him.

Generally, speaking, each major segment of organized crime has its

own major

bail bond connection and these are usually rather loose

partnerships which are very difficult to trace because what is due

from one partner to another is often settled through some apparently

unrelated business transaction.

(For example, Weiner has boasted, and those who were in the know in

Cuba have confirmed, that for his services to Phil Alderisio--Santos

Iraticante, etc. he

was given a substantial interest in the Deauville

Gambling Casino and the Capri Gambling Casino in Havana. When Weiner

last talked about this he was crying about his loss of a vast fortune

occasioned by Castro.)

The lara business in Chicago, which had such unusual methods of

forcing sales on restaurants, was apparently & similar payoff.

There certainly seem to be tie-ins of importance to the Kefauver

Committee, the McClellan Committee, the Department of Justice and

the Treasury Department.

9

DocId: 32329636

Page 14

---

## Page 15

/ Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE: 11-14-2017

APPENDIX C

CHRONOLOGY OF IBT BONDING

May 7, 1957

Anglo Canadian Underwriters, Ltd. opened account at

President John D. Corbett, Vice President John D. Guiness.

Signators included Harry R. Hayes and Henry A. McCarthy.

Hopps said that this company was a brokerage firm and that

he was Chairman of the Board in 1959.

September 1, 1958

September 1958

Pacific is sold to Commerical Standard. Service

This company had been used

as the general agent for Homer Bray Services, Inc. when

Charles Bray's father, Homer, was alive. Pacific holds

title to a building in Alburquerque, New Mexico which may

be worth from $15-40,000. (See value given it Nov. 2, 1959.)

Homer Bray Services at or prior to this date received

$50,000 unsecured loan from Evanston Bank. The loan was repaid

sometime between September 1958 and September 1960 (See Dec. 14,

1959).

May 1959

Charles Bray met Stuart Hopps. Hopps had previously

known Bray's father.

August 20, 1959.

Affiliated Brokers, Inc. opened account at Underwriters

Trust, New York City; Chairman of the Board, Stuart B. Hopps;

President Edwin J. Ryan.

September 14, 1959

Landrum - Griffin bill passed requiring bonds for

union officials who handle funds.

Early September 1959 Fidelity and Surety Company was contacted, but as required

by Landrum - Griffin Act.

September 18, 1959

Bray writes check for $1,687.50 to La Salle National Bank

as repayment of loan.

September -

October 1959

Bernard Linguist of Linguist and Burns, 141 W. Jackson

Street, Chicago, Illinois,

, Agent for Stuyvesant Insurance

Company of Pennsylvania solicited by non-Teamsters union re

insurance and also by Jinny James whom he turned down.

Linquist

said he also wrote for Reliance Insurance

Company of Philadelphia, that these companies were stringent

requiring detailed forms and credit reports and that the

Summit forms were a joke only requiring name and address.

63-78930

DocId: 32329636 Page 15

---

## Page 16

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Note) .

DATE :' 11-14-2017

.....

- 2 -

September -

October 1959

Allegation that during this period there was a

'friendly'

audit by Illinois state inspectors who suggested

a $52,000 transfer of funds from Homer Bray Services to

Central Casualty. The transfer was made and then, after the

audit was over, the funds were returned to Homer Bray Services.

October 1, 1959

Associated Insurers, Ltd. opened account in First

National Bank of Evanston with $10,000, c/o James Bray,

820 Gen Ayre, Evanston.

The $10,000 was the proceeds of

a loan Associated Insurers Ltd. received from the bank that

day, which loan renewed January 12, 1960.

October 5, 1959

Bray sent check for $5,000 to Affiliated

Brotbers, Inc., broker for Intercontinental, for reinsurance

deposit with Intercontinental. (Hopps said this check was for

his services.

Hopps also said that Intercontinental Insurance

and Surety Company paid $5,000 to Affiliated Brokers Inc.)

October 5, 1959

The IBT in a letter to the locals recommended Summit

Fidelity and Surety Company of Akron, Chio for bonding.

(Summit had Ireasury authorization up to $70,000 for any one

bond and needed reinsurance.) Up to $500,000 contacted for

reinsurance United Benefit Fire Insurance Company of Omaha

and Stuyvesant Insurance Company.

October 6, 1959

Illinois agency of Summit was incorporated with weiner

and Schwartz as signers for bank account along with Lucille

Ferkin (Allen Dorfman's secretary) and Myer Breen, a Dorfman

associate.

October 7, 1959

Associated Insurers Itd. check stub recording $3,000

to Bray to repay him for 1,500 shares of Universal Guarantee

and Trust Company stock.

(Hopps said in May 1960 that he has

no interest in Universal.)

October

- 1959

Menerovski with Lake-State Auto Association in Chicago,

Illinois, approached Frank Wright of United Bonding of Indiana-

polis about writing the IBT bond which business he said he had.

(Marty Silverman, Wright's Newark agent, received a similar

proposition from unknown man. )

About October, 1959

Summit's proposed reinsurance deal with Munich Rein

Company, New York City fell thru.

October, 1959

Bray check for $4,000 to HBS, Inc. for repayment of loan.

DocId: 32329636

Page 16

---

## Page 17

/Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Note) .

DATE:* 11-14-2017

•..

-3-

October, 1959

Bray advised ICC that he was abandoning old pool arrange-

ment in the West and entering new arrangement with Intercontinental

Insurance and Surety Company, which would reinsure 50%. Harold

Weingarden, accountant for HBS and associate of Charles Bray's

father, said Bray lost United States reinsuring arrangements

after

some heavy losses and so turned to Intercontinental of

Panama.

According to the report filed with the ICC, Inter-

continental retains 50% of a maximum individual loss of

$15,000 and does not cede any part of this. (But see Nov. 2,

1959; Underwriters Trust records in New York wherein it is

stated that Intercontinental cedes 50% of their part to

Mediterranean Insurance Company.) The information to the ICC

was that Intercontinental was the successor company to

La Estrella Steamship Navigation and Insurance Company of

Panama City; Bernardo Carames was president. A June 1959

financial statement of Intercontinental was attached showing

total assets of about $ 500, 000.

The ICC was also informed that CC would issue new stock

at three times par with 1/3 going to capital and 2/3 to paid in

surplus.

October 27, 1959

October, 1959

Linquist wrote Hoffa thru Stanley Green of the McClure

Agency in Pittsburgh expressing an interest in writing bonds

for Teamsters and quoting a 3 year premium of $16.87 per $1,000.

Allen Blank said that when publicity broke linking

Hoffa to bonding business of Summit and to Weiner, Blanchi

was called into Chicago and told Weiner should be fired.

Blanchi was reluctant and said that Weiner was a power in the

bonding business and, if fired, would take a large part of

Surmit's business with him.

October 1959

November 1959

with Munich had fallen down. Dorfman wanted Hopps' help

lining up reinsurance.

Hopps said he went to Chicago and met at 9 E. Huron

would help them they would see that it was made worth his

while.

DocId: 32329636 Page 17

---

## Page 18

Released under the John F. Kennedy Assassination Records Collection Aot of 1992 (44 USC 2107 Hote).

DATE: 11-14-2017

• 4=

November 1959

Hopps thought the best way to set up reinsurance for IBT

deal was to do it by going "joint account" with some broker or

agent. He called Godoy-Sayan in New York, the big shareholder

in American Security Co.; but the deal fell thru because Summit's

$6.25 per 1,000 rate was

too low. About this time, Schwartz called

him and told him to discontinue his efforts as Styvesant Insurance

Company and United Benefit Fire and Casualty of Omaha (öwned by

George Stewart of Stewart Snith Co.) would supply all the reinsurance

necessary.

November 2, 1959

Agreement between Intercontinental and Underwriters Trust

Company that Underwriters would be trustee of account in name of

Intercontinental; the account would be for the purpose of guaranteeing

payment to US or Canadian claimants for losses and would consist of

300,000;

100,000

in cahs, a check from either HBS or CC;

100,000 certificate of contribution by CC to HBS;

100,000 mortgage note on property in New Mexico owned by Pacific

Service, Inc.

Homer Bray Services (Can) Lta. would be agent per

the October 28th agreement between Intercontinental and HBS (Can)

Itã. HBS (Can Itd. was given power of attorney to issue insurance

on behalf of Intercontinental. Reportedly the $300,000 trust account

was set up in New York at the request of Gerber so that Intercontinental

would be authorized to do business in Illinois.

November 2, 1959

Commercial account opened at Underwriters in the name of

Intercontinental c/o Homer Bray Services (Can) Itd., c/o J. W. York,

56 Sparks, Ottawa, Canada. Initial deposit of $1,167.87. Signators

were James Warren York, Charles Bray, and David D. Whitesell.

Underwriters made cross reference to accounts of Intercontinental

Guaranty and Insurance Underwriters, Inc., 44 Wall Street (Corbett,

Lindhauer, Hopps)

and General Assurance Co., Ita., 44 Wall Street

(McCarthy, Guiness, A. English, et el.)

Armandy Lubaty, Vice President of Underwriters introduced

these accounts and Anglo Canadian Underwriters (May 7, 1957) and

Affiliated Brokers (August 20, 1959). Lubaty thought

it strange

that all companies had one address but never questioned it. Douglass

Winguist was another official who handled the accounts.

met Charles Bray, his attorney Gladstone, and David Whitesell. Bray

was introduced by Loretta Lindhauer, Hopps' secretary.

13.

DocId: 32329636

Page 18

---

## Page 19

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE: 11-14-2017

-5-

November 2, 1959

Intercontinental Insurance and Surety Company formed.

Officers are Carames, Hevias and Santamaria.

Signators are York,

Bray, Whitesell and Carames.

Hopps has said he had no interest in

Intercontinental and neither he nor anyone associated with him

including Lorreta Lindhaver had anything to do with setting up the

Trust Fund at Underwriters.

(In May 1960, Hopps described the Intercontinental Insurance

and Guarantee Company as a

"Pocket" company for a Cuban group, i. e

they do not do general business but function primarily to serve the

interests of Carlos Seguras. Luis Botifol is an attorney who

represents the principal stockholders, Carlos Seguara and Bernardo

Carames (of the Cuban Sugar Institute.)

(Hopps said Botifol had asked him to obtain figures

concerning a trust agreement which had been set up in New York City.)

(It is not known if the Intercontinental Insurance and

Guarantee Company and the Intercontinental Insurance and Surety Company

are one and the same.)

November 4, 1959

Check stub of Associated Insurers Ltd. recording $1,000 to

Louis J. Botifol for legal lees in setting ip Associated Insurers Lita.

Havana, Cuba. Botifoll of Mexico City was President of Mortgage

Corporation of America which was an agent for Intercontinental Guaranty

and Trust.

November 4, 1959

Check stub of Associated Insurers, Ltd. recording $1,500

to Royal Bank of Canada for services rendered re Associated Insurers.

November

4, 1959

Check stub of Associated Insurers, Lta. recording $5,000 to

Anglo Canadian Underwriters Ltd. for purchase of Mediterranean Insurance

Company, Corozal, South America.

November 12, 1959

Paul Dorfman called Jake Ehrlich.

November 13, 1959

I Bray check for $1,000 to Associated Insurers Ita. (first

endorsement: Associated; second:

James Bray; third:

First National).

November 1959

Associated Insurers deposits $1,000 (carried as loan from Bray.)

November 16, 1959

Publicity by McClellan Committee of Summit-Schwartz-Weiner

deal. Calls between Dorfman and Hoffa.

November 19, 1959

Joseph Gerber, Illinois Insurance Commissioner, told papers

his investigators found no connection between Weiner and Schwartz and

Dorfman operations.

DocId: 32329636

Page 19

---

## Page 20

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE : : 11-14-2017

- 6.

November 1959

'November 1959

November 1959

November 1959

Reserve, parent company of Sunmit, pulled Sunmit out of

IBI bonding, apparently because of the adverse publicity. Earl

Cefry, Vice

President of United Benefit Fire and Casualty of

Omaha said the reason was that Reserve had not been able to raise

sufficient capital through the FDC for insurance purposes.

Fraser Wilson of Stewart Smith in Chicago said that after

the Surmit deal folded, United Benefit was no longer using him nor

giving him any details.

Preston White, Manager New York branch Zurich Insurance

Company said that at this time Joseph Henning of Mitchell May Co.,

Inc. contacted him saying he could get Teamster bonding business.

Mr. Pilling, United States manager of Zurich in Chicago turned it down.

Hopps said Joseph Henning then with John C. Paige and Co.

had called Hopps about getting a pool together on labor-management

Hopps agreed to help and would split 50/50 the cormission,

Henning's firm would receive. Henning then called to say the

Summit deal for the IBI was off. (Hopps had heard that after the

publicity on the deal a banker, H. E. Becker, told Allen Blank,

President of Reserve, the parent of Summit, that he would not put

out certain stock desired by Blank if Summit wrote the IBT bonds.

Hopps also heard that Jake Gottlieb, owner of Western Transportation

Company and the Dunes Hotel in Las Vegas and allegedly a close

associate of Hoffa, was going to buy Summit and, if he did, it

would continue to write the Teamster bonds.)

Pursuant to Henning's call, Hopps went to Chicago where

he met with Weiner, Schwartz, Allen Dorfman, Henning: and Linquist

who represented Styvesant and Reliance.

The negotiations broke

down when

the IBT insisted on a $6.25 ceiling to the rate.

Henning and Hopps worked to arrange reinsurance for

Styvesant as direct carrier and contacted Bray and Central Casualty

(In January 1960 Hopps said he did not contact Central Casualty,

later he said he dia) and other companies including Cosmopolitan

Mutual of New York and Consolidated Mutual of New York, who soughi

to get Treasury listing. Thru the Gilbert Bartling and Sons Agenc

of Kansas City, the Pinkerton Agency of Omaha, and the Warner Agency

Of Des Moines, Hopps contacted Iri State Insurance of Tulsa and

Standard Insurance of Tulsa.

Then, Styvesant's home office raised

their commission demands to 422% and the other companies backed out.

DocId: 32329636

Page 20

---

## Page 21

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note) .

DATE: +11-14-2017

i .

=7=

November 1959

Then Hopps suggested United Benefit as prinary carrier and

contacted Bray who talked to United Benefit. Bray got UB in and got

his firm in as a broker.

(At one time Hopps also said that Schwartz

and Weiner were the ones who decided on Bray as broker after Hopps

had introduced Bray to them.

On another occasion in January 1960,

Hopps said he did not know who the broker was.) Bray agreed to

compensatesHopps and Henning. Bray then got reinsurance with Tri

State and Houston Fire and Casualty of Fort Worth. (Tri State,

said Hopps, was to give Hopps & of 5%.)

Linguist said about this time he asked Alvin Irenk of

Anka Agency in New Jersey, (Irenk is son-in-law of Abe Lew, deceased

former head of Retail Clerks local in New Jersey who embezzled several

hundred thousand dollars in union funds and was close associate of

Longie Zwillman), to see about reinsurance looking mainly to steel-

workers. Trenk contacted Henning who introduced him to Hopps

(Henning had been referring to Hopps as Mr. Stevens). Linguist met

with Henning and Bray and Hopps, who seemed to be interested only in

Teamster business.

Thru Hopps, Linquist had coffee with Weiner and

Schwartz who wanted to know the maximum commissions they could

receive as brokers. Linquist stated he told them that he wasn't

interested in the business; that, in accordance with underwriting

principles, the Surmit applications were worthless; that in any

event, the maximum brokerage commission would be 20%. He said that

Weiner and Schwartz would not have been satisfied with that figure.

Furthermore, Hopps and the others wanted the premiums paid in

advance and the companies Linquist represented were only willing to

pay commissions as earned.

November 1959

Joseph Henning of Mitchell May said that about this time

he was contacted by an Alvin Irenk about the bonding; there was one

meeting with Trenk, Bray, Linquist and himself. Henning felt Hopps

had brought Bray in and it was Hopps who suggested Henning meet with

Dorfman, Weiner and Schwartz which, because of the bad publicity:

involved, Henning refused to do.

After the Chicago meeting Henning contacted Consolidated

Mutual and Cosmopolitan Mutual of New York re reinsurance, but

neither was on the Treasury list as an authorized surety company.

He went to D. C. to get certification but another plan went thru

first. Henning was to get some part of the brokerage fee for his

efforts; he understood he and Bray would divide 5% and that a

reputable brokerage firm would handle it. Henning felt that a

coverage could be had for 2.50 per 1,000 according to the American

Surety Association bulletin.

November 24, 1959

Joseph Henning of Mitchell May, JI. Company of New York

was contacted by Bray and went to Chicago.

November 28, 1959

Associated Insurers Ita. check stub recording $1,000 to Mars

and Cie, a Morrocan bank, for transfer and custodian cost of

Mediterranean Insurance Company holdings before the company moved to

Corozal, South Anerica.

DocId: 32329636 Page 21

---

## Page 22

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE : 11-14-2017

• *

- 8-

November 28, 1959

Associated Insurers Ltd. check stub recording $5,000 to

Anglo Canadian Underwriters, second payment on Mediterranean Insurance

Company purchase.

December 1959

Earl E. Cefry, Vice President and Director of United Benefit,

is first contacted re Teamster Bonds by Bray. Also William Collins,

Vice President of Stewart Smith and Company in New York called Cefry

to say he heard from Hopps who felt it would be good business.

Early December

.1959

December 1959

Ehnes, Vice President of Tri State, Tulsa, Ollahoma, contacted

by Joseph Henning about writing IBT bonds.

Ehnes told him that Tri

State might be interested in reinsurance.

Don Pletts in Miami told Wright (?) he ahd the Teanster

business.

December 7, 1959

Bray in D. C. with ICC and Treasury. Bray then goes to

New York and talks to Hopps who had been in contact with Dorfman agency.

December 8, 1959

Hopps goes to Chicago, contacts Ehnes, Vice President of

Tri State Insurance and Earl Cefry of United Benefit Fire and Casualty.

(Cefry and Ehnes have denied any contact with Hopps in this operation

and have denied knowing' him except by reputation.)

December 11, 1959

December 1959

Hopps made calls from Dorfman agency.

Linquist understood that a Major Riddle of Las Vegas had been

interested in buying summit, but that the deal fell through because

Reserve had listed Summit as an asset in a filing they had made and

if they sold the filing would be fraudulent. (Another reasons was that

Riddle couldn't raise the money.)

December 1959

Meeting in Tulsa with Henning, Bray, thnes and agents of

Standard Insurance of Tulsa.

Standard did not go into the deal

allegedly because they were dissatisfied with underwriting procedures.

Irl State took 30% (later received $29,500 of the deposit) and was

going to offer percentages to others.

There werw assurances that

noone connected with the IBI was connected with the program and Hopps

name was never mentioned according to Ehnes. C? was to participate

to 10-15% in view of Bray's efforts in getting business and the

general agent, getting 25% out of the 35% paid to United Benefit, were

to be HBS and Mitchell May, Jr. Company. The companies would share

in losses up to $100,000 with $400,000 reinsurance with Lloyds to be

paid out of premium income.

Ehnes thought the rate was $6.58 per $1, 000 or $16.78 for

3 years.

DocId: 32329636

Pave 22

---

## Page 23

Released under the. John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107 Note).

DATE: •11-14-2017

= 9 .

December 1959

Ehnes told Cefry he wanted a copy and accounting of the

Lloyds arrangement which was being worked out through Stewart Smith

Company and that a 72% figure was mentioned.

The $100,000 would be split among the companies (Iri State

received $29,500) with interest belonging to the companies and after

3 years, the sum was to be credited toward premium payments.

There

would be quarterly statements from United Benefit.

United Benefit requested $100,000 from IBI with bonds

effective 12/15. The deposit was made and the money divided among

the participating companies according to their percentage of

participation the deposit was to be held at least until the end of

the 3 year bonding period.

December 1959

Cefry and Wright reach agreement. Wright received $9,750

as United Bonding's share of the deposit less 22% premium tax.

Wright had agreed to 25%, but only got 108 because Cefry said: United

Bonding was the smallest. United Benefit was to get 35% commission

as earned; expected about 3 million over 3 years, 2 million to insure

losses and I million to be split among companies; all money received

by United Benefit to be divided immediately. (Last stipulation in

copy of letter

• from Tri State with copies directed to Bray, Henning

and David Ross.)

December 14, 1959

HBS, Inc. borrowed $150,000 from First National. Bank,

Evanston, paid $50,000 back on previous loan and deposited $100,000

in account of HBS Inc.

December 15, 1959

Vassen of Houston F & C, a long time friend of Charles

Bray's father, Homer, said he was contacted by Bray (his first

contact was fron j. Minton, a broker from Fort Worth) re reinsuring

agreement. Management called for each company to be liable up to $100,000

with excess up to $500,000 reinsured with Lloyds at a cost of 2% of the

total premiums. Vassen said he insisted that (1) application be

to be investigated; (3) the IBI would poice the program and remove

non-bondable officials; and (4) there would be a quarterly meeting

of representatives of all the companies to review the program.

December 15, 1959

Tri State letter to United Benefit acknowledging participation

by Tri State up to $200,000.

18

DocId: 32329636

Page 23

---

## Page 24

Released under the. John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE: -11-14-2017

-10 m

Darly December

1959

Hopps said he contacted Bray at the Castaways tyring to get

him to reinsure with La Metropolitana (a Cuban company with offices

on John Street, New York City, in a deal unrelated to the bonding.

Cefry of UB and Schwartz were also in Miami. Hopps said he met

Hoffa there, but didn't discuss bonding. (May 1960, Hopps said he

only met Hoffa once and that was in 1956 or 1957). Bray told Hopps

that Iri State took 30% reinsurance and that the syndicate of brokers

that got Iri State would get 5% on this 30%. Tri State agreed to

give 10% participation plus 5% cormission to Merchants Mutual Bonding

Company of Des Moines owned by the Warner Agency, but neither Hopps,

nor the Pinkerton Agency of Omaha, nor Bartling and Sons of Kansas City

Bray was making arrangements to get a $100,000 deposit from

the IBI which Hopps understood was a deposit on the premium for the

International and that the balance was to be paid within 30 days.

Re La Metropolitana, Hopps and Bray did go to Cuba and met

with Godoy's brother-in-law named Arnoldson.

Hopps said he believed Bray's companies have also had

reinsurance business with the Plymouth Insurance Company and

Muir-Bedell of Lloyds of London.

Hopps said that he, Hopps, was also in Florida trying to

get reinsurance from two Florida companies. Hopps said none of his

expenses re the IBI bonding were reinbusred but that usually his

trips were for other business on his own and not specifically in

connection with the IBI bonding.

December 1959

Bray said that Schwartz made Bray's proposal to the IBT

Executive Board in Miami; that the IBI insisted on December 15 date;

that it was Bray's idea to get the 100,000; that future deposits

would be coming from the IBI depending on the number of applications;

that he has not been asked to bond management and union officials undei

the health and welfare funds; that while in Miami, he stayed at the

Fontainebleau; that Hopps was there also and Bray talked to Hopps

about the Panamanian company.

December 16, 1959

United Benefit wire John English asking for $100,000 deposit,

stating that bond effective 12/15/59 and that Laundry Workers and

Electrical Workers would also be written by HBS Inc. and Mitchell

May, Jr. Company.

19

DocId: 32329636

Page 24

---

## Page 25

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Hote) .

DATE: 11-14-2017

-11 =

December 18, 1959

Letter from Cefry of United Benefit to Frank Wright of

United Bonding acknowledging the latter company's participation

for 25%.

December 20, 1959

Associated Insurers check stub recording $1,875 to Anglo-

Canadian Underwriters, 3rd payment on purchase of Mediterranean.

December 21, 1959

Letter from John English, IBT Treasurer to United Benefit,

c/o Bray transmitting check for $100,000 as a good faith deposit for

IBI bonds.

December 22, 1959

Letter from Cefry to English stating that applications on

Summit forms were O.K.

December 23, 1959

Vassen of Houston F & C called by Bray from Florida and

then sent telegram to United Benefit accepting, as of December 15,

1959, reinsurance for 15% or 100,000. He agreed to be listed as

contributing $150,000 toward Ireasury List and to pay a commission

to United Benefit of 372% which was to include all expenses including

taxes with the exception of 2% additional costs of reinsurance with

Lloyds of London.

December 24, 1959

Letter from Karl Vassen Houston Fire and Casualty Company

to Bray confirming acceptance of 15% and $150,000 limit according io

the Treasury Department list.

December 24, 1959

with Bray about this time included Marion Burks, Secretary of CC., Bill

Courtier, an accountant for CC., Bob Christopher, manager of Bray's

Chicago office, E. C. Jobe, Vice President in charge of Claims Depart-

ment, HBS, Denver, Colorado, Allen Harden, surplus line underwriter,

Harrold Weingarden, accountant for HBS, Inc., Deane D. Whitesell,

Vice President, Robert Wolff, account for Oxfora and CC.

Weiner was general agent, but had no apparent financial

interest or position in CC.

December 24, 1959 Homer Bray Services (Can) Ltd.,

a Canadian Corporation,

established.

(The money used to purchase the incorporating stock from

Oxford came from the Canadian Company.)

December 24, 1959

Bray issued check for $3,000 to Iropical Holdings, Inc.

(Bray said this was to purchase 75% of the total outstanding stock

in Universal Guarantee and Irust Company of Panama, believed to be a

Hopps company.)

20

DocId: 32329636 Page 25

---

## Page 26

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Hote) .

DATE: ' 11-14-2017

:.

-12 -

December 29, 1959

Letter from Bray to English acknowledging receipt of

$100,000 for deposit premiums.

December 29, 1959

December 1959

HBS (Can) check to Bray for $1,200 to repay loan.

Bray check for $10,100.83 to LaSalle National Bank as

repayment of loan.

December 1959

(same day as

above)

Bray (?) deposited $10,000, borrowed from HBS. Inc.

December 31, 1959

On this date, said Harold Weingarden (accountant for HBS

and associate of Charles Bray's father), HBS sold 50,000 shares oi

CC stock to Intercontinental.

(Later Bray bought out Weingarden's

shares.

Bray gave Weingarden a bad check and Weingarden had quite

a bit of trouble collecting.)

December 31, 1959

Oxford assumed all liabilities of Surmit in regard to the

Teamster Bonds.

December 31, 1959

Homer Bray Service paid checl of $154,000 to Central Casualty.

December 31, 1959

Central Casualty paid check of $154,000 to trust account of

Intercontinental Insurance and Security Company at the Underwriters

Trust Company in New York City. CC records indicated this covered

October-November reports and adjustments to losses and reinsurance

and unearned premiums.

December 31, 1959

Bray issued $150,000 check on behalf of Intercontinental

to Homer Bray Services for the purchase of 50,000 shares.

December 31, 1959

Intercontinental's account, c/o HBS (Can) in Underwriters

Trust has balance of $154,088.61.

. December 31, 1959

CC sent out bonds on applications previously sent to Summit.

December 31, 1959

CC deposited United Benefit check for $19,500 which was

CC's share of the $100,000 deposit forwarded to United Benefit by IBI.

December 31, 1959

Douglas Winquist of Underwriters Trust, New York City, said

that on this date James Bray, Charles' örother,

came to the bank with

a deposit of $100,000 to the Intercontinental Insurance and Security

Company account.

December ? 1959

After getting $19,000 shortly thereafter, he gave $10,000 to

set hit so d hoot 85, 0 to a dated Insurers ta,

2!.:

DocId: 32329636 Page 26

---

## Page 27

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107 Note).

DATE: 11-14-2017

- 13 -

Late December

1959

Joseph Henning, Mitchell May, Jr. and their staff ended

their connection with John C. Paige and Company and started direct

operations as Mitchell May, Jr. Company. They had Cosmopolitan

and Consolidated as reinsurers, but no leading carrier. Hopps

put them in contact with Bray who agreed as agent of UB to work

thru them on all labor bonds other than IBT.

Hopps was to share & of the May, Jr. Company's commission.

Hopps, trying to get business talked to Dave McDonald thru Phil

Regan, akbright of AlVA, Walsh of Theatrical, Miller of Bartenders,

Cross Of Bakers, and also with Regan's help Keenen of Electrical

and Kennedy of UMW.

Hopps met Gibbons visiting with McDonald at

Ryan's home; Gibbons said he'd try his best to get all Teamsters

under 1 master contract.

Hopps, US Life, UB, HBS were collaborating on bonds for

Bridges and ILWU thru Pinsky and Bercon's Union Insurance Consultants

Agency but UB had no California license so UB and Hopps were out with

no commissions.

December 1959--

January 1960

About this time, the Cincinnati locals got bonds from

Federal Deposit and Insurance Company of Maryland for $4 per $1,000 -

a $1 less than the national rate.

January 1, 1960

Associated Insurers Ltd. check stub recording $525 to

Bernardo Carames for keeping books for Intercontinental.

January 5, 1960

United Benefit sent standard reinsurance form to Houston

Fire and Casualty, which was executed.

January 5, 1960

Central Casualty (?) check for $150, 000 signed by Bray

payable to Homer Bray Services for 50,000 shares of stock in

Central Casualty Company. Check is deposited in Homer Bray Services

account. First National Bank Of Evanston, Illinois.

January 5, 1960

CC issued check for $100,000 to HBS (Can) Lta. in accordance

with agreement of January 1, 1960.

January 5, 1960

CC issued $100,000 check to HBS (Can) for advance

payments for stop losses per treaty of January 1.

January 5, 1960

HBS (Can) Itd. issued check for $5,000 to Associated

Insurers, Ltd.

January 7, 1960

Account opened for HBS (Can) Ita. of Canada at First

National Bank, Evanston with $10,000 deposit.

January 1960

Check from Intercontinental for purchase of stock of CC.

22

DocId: 32329636 Page 27

---

## Page 28

(Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE: 11-14-2017

- 14 -

January 7, 1960

Letter from United Benefit to Bray enclosing Illinois'

agent's license

for Bray.

January 7, 1960

Letter from Cefry of United Benefit to Charles R. Marks,

215 Southern Building, Washington, D. C. enclosing bonds for IBI

to be countersigned and returned.

(Bray said that Marks was

representative of United Benefit.)

January 8, 1960

Letter from United Benefit to George Stewart of Stewart

Smith Company advising of the decision of United Benefit and Homer

Bray Service, Inc., that their contract would be for union bonds

only and that premiums were to be paid to United Benefit at once;

that. 25% cormission would be paid to HBS, Inc., and that strict

observance would be had concerning Ch 4 §.23 of the Act.

January 11, 1960

no 2p dece

company writing the bond for the entire union would have a $5 rate.

See the Surety Association for confirmation of this.)

January 12, 1960

Associated Insurers Ita. renews $10,000 loan at First National

of Evanston.

January 15, 1960

Central Casualty (?) check for $5,450.02 signed by Bray

payable to Affiliated Brokers Ita. Deposited in Underwriters to an

illegible account.

January 19, 1960

Associated Insurers check stub recording $1,000 to Bray

to repay loan of November 6, 1959.

January 19, 1960

Associated Insurers, Itd. withdrew $1,000 from their account

(same as above?) •

January 19 OR

20, 1960

Oxford Agency, Inc. opened account with $1,000. (Bray had

said the $1,000 came from HBS (Can)) .

January 23, 1960

Bray advised that they had already ordered 100,000,000

reinsurance with Lloyds and would get more as needed.

DocId: 32329636

Page 28

---

## Page 29

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107 Note).

DATE: <11-14-2017

January 1960

? 1960

January 1960

January 1960

January 1960

-15 -

About this time, said Allen Blank (KC, FBI report

approximately November 1960), Bianchi resigned and joined CC.

When Reserve failed to sell Summit, they decided to let

it die and only left a few employees to take care of previously

incurred obligations.

Reportedly, Reserve made a deal with Bray to take over

existing bonding without Bray paying Reserve any money for the

business.

Illinois State Insurance Department authorized CC to .

issue an additional 100,000 shares of stock to be solf for

$300,000; the understanding was that Bray would acquire this

stock in a closed sale.

Earl Cefry of United Benefit said that UB was writing

bonds through HBS Inc. of ivanston, Illinois: that UB followed

American Security Association rates: that 25% broker'e

commission would be paid to Bray as it was earned, (Cefry had

had advised it would be split by Bray and Henning as brokers

of record.) and that Bray would pay his brokers 15-20% out of

this; that UB was doing all the underwriting and ordering reports

on all Teamster officials who would be bonded 15,000 or more.

(Peter Zimmerman of the Surety Association of America, 60 John

Street, New York City, WH 3 - 0803 said that a company should

not write a bond totaling $500, 000 without first submitting it

tothe Association and that to do so would be a violation of the

insurance laws; Bray denied that this is so.)

Joseph Henning said he understood that 20% would be

paid to a broker who was not yet named and 5% would be split

three ways among Hopps, Bray and Henning.

At this time Hopps had received no commission for his

part in the IBI bonding (nor had he as of 5/60). He would think

that since he introduced Tri State, Iri State would pay him a fee

with permission to reduce the amount paid to UB. Hopps understood

that UB had done extensive investigating on the bonding and that

some underwriters had flown over from Lloyds. If UB backs out,

(Hopps thought the deal will still break down and he would handle

it.) he had a big New York mutual ready; Hopps had two big companies

applying for Treasury listing. Hopps had no insurance company of

his own, but was a shareholder not a Board member, in many small

companies; be was a reinsurance broker.

DocId: 32329636

Page 29

---

## Page 30

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Hote).

DATE: 11-14-2017

- 16-

January 1960

January 1960

Bray in an interview, said that he had first been

contacted in October by Henning who wanted his help in getting

Cosmopolitan and Consolidated on Treasury list; that he read

about Allen Dorfman having the Surmit applications and went

down on his own; that he felt confident he'd get the business but

for no particular reason; that he had met Hopps some time ago

in San Francisco, but didn't know him; that he met Hopps in

Chicago with Henning; that he didn't know Dorfman's connection

and that Dorfman played practically no part in setting this up; that

he didn't know what part Hopps had played; that he thought he

could have gotten the lusiness without Schwartz, but Schwartz got

part of it. (Bray later, June 1960, admitted the above version is

not correct and that he was contacted by Hopps.)

Bray also said that Schwartz and Weiner wanted 20% of

all business they submitted and thatthey turned over several

hundred Summit applications to him.

Bray said that the reinsuring companies were paying

United Benefit 372% and that United Benefit was paying Bray

25%; payments to be made to HBS Inc., which would pay Oxford

Agency Inc. 20% and Oxford would pay

the brokers. Schwartz and

Weiner would probably receive 20% brokers fees for the business

they furnished.

Mitchell May, Jr. Company would receive

approximately 2'% out of the top 5% to HBS Inc. Nothing would go

to the Dorfmans or to the Illinois agency of Summit.

Other brokers were Stewart Smith Company, (this company

owns United Benefit and was counting on getting Joint Council 25

in Chicago), Bud Barnes of Omaha and perhaps Martin Seigal.

Bray stated that the $19,000, CO's share of the IBT

deposit, would not be disbursed.

(But see late December 1959.)

Bray interpreted the law to mean that the bonding

companies had to have a combined Ireasury rating up to $500,000,

but that no one company had to accept up to its maximum rating.

Bray gave the following figures:

DocId: 32329636

Page 30

---

## Page 31

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE: *11-14-2017

- 17 -

Company

Treasury Listing

United Benefit

100,000

United Bonding™

50,000

Houston Fire and Casualty150, 000 (See Dec. 23,

1959)

Percentage of First

$100,000 Accepted

25%

1.0%

Iri State

200,000

Central Casualty

Not listed

15%

30%

20%

(Bray maintained that a reinsurer did not have to

have Treasury listing.)

Lloyds would reinsure the excess with all companies

sharing cost which Bray estimated at 2-4%.

(Does the above scheme fulfill the requirements

of the law?)

Bray said that United Benefit would run credit

to apply for their criteria for bondability. Though

there is nothing in writing bonds, Bray said the

Teamsters had agreed that if a person is not bondable

he would be relieved of his duties.

Bray mentioned that he had one girl working in

office space provided by Teamsters for which he pay $123

rent per month.

26

DocId: 32329636

Page 31

---

## Page 32

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Hote).

DATE: 11-14-2017

-18 -

January-February

1960

January-February

1960

January-February

1960

February 1960

= 1960

February 1960

Hopps said he met Gibbons on behalf of the bonding

company complaining because the premiums were not being

paid and all the Teamster locals were not participating.

Gibbons said they do not have control over the locals

that people think but they would do what they could.

Bray called Leonard Schloer, Chief of Section of

Insurance, ICC, trying to make arrangements for the

Cosmopolitan Insurance Company of New York to get

Treasury listing.

1959 statement of central Casualty filed with

the ICC showed that Central Casualty had assumed $214,831.93

reinsurance business and had ceded half.

Bray said that Homer Bray Service, Inc. held stock

in Oxford; that Underwriters Irust Co. of New York had

recently purchased stock in Homer Bray Service, Inc., for

$100,000. Homer Bray Service had been selling accounts

receivable to banks for the purpose of making loans. The

$100,000 was to repay loans which had been used to pay

premiums to Iloyds of London.

Central Casualty paid Homer Bray Service $55,000

for purchase of equipment; Central Casualty then sold it

to United States Leasing Corporation; 580 California

Street, San Francisco, California; United States Leasing

then leased it back to Homer Bray Service for $5,000 a

month.

Teamster locals received a letter announcing lowel

rates from Thomas J. Leahy, Leahy and Associates, 6 North

Hanlin Avenue, Chicago, Illinois. (Moil has been received

for Thomas J. Leaby in care of Plasticians Inc., 208 LaSalle

Street-same address as Central Casualty. Leahy said he

was a broker in getting bonds for Joint Council 25 and some

locals that he had dealt with Fraser Wilson of Stewart

Smith Co., and Linguist and Burnes of the Styvesant Co.

Leahy stated he heard about the bonding, contacted Sol

Schwartz and reached an agreement whereby leahy would be

Smith Co. and the bonding of trustees with Styvesant.

Reportedly, Stewart Smith is affiliated with an agent

of Lloyds of London.

27

DocId: 32329636

Page 32

---

## Page 33

Released under the. John F. Kennedy Assassination Records Collection Act of 1992 (14 USC 2107

Hote).

DATE : : 11-14-2017

February 1, 1960

March 1960

March 1960

; March 1960

March 1960

April 25, 1960

April 1960

April 25, 1960

-19 -

Previous Central Casualty (3) check overdrew

account so $500 deposited leaving balance of $306.46.

According to Associated Insurers check stubs,

balance of account is $87.50.

Hopps's company Intercontinental Guaranty and

Trust Company (name changed to Universal Fidelity and

Security Company then to Financial Guaranty and Trust

Company) under investigation in New York, Baltimore

and San Francisco.

(From page 19 FBI report, Agent John Roberts,

Chicago, November 11, 1961)

United Public Insurance Company of Indiana was

subject of attempted takeover by Cleveland hoodlums,

among whom were Dominick Bartone, Lou Brady, Dom

Lonardo and Don Plitzer. Trans American Security,

their 'front' agency, defaulted in March 1960 and

went out of business.

United Public Insurance

Company assumed the obligations until arrangements

could be made. Allegedly, the Cleveland group was

told by San "Mooney" Giancana to stay out of Chicago

bail business, that it was his territory.

Chicago

bail bondsmen who do approximately 90% of the business

are Ed Morris, Tony Horton and Irv Weiner. Pat Cerone

is a well-known agent of Weiner.

Weiner allegedly is also a jewelry fence. Ed

Morris is tied in with Cosmopolitan Insurance Company

and Bill Rose (associate of Mickey Cohen).

There also appears to be a leak between these

bondsmen and the law firm of Bieber and Brodkins,

reputed ito becattorneys for the racketeers.

Individual bondsmen are forced to work with

them because if one tries to disassociate, defaults

of that bondsmen which had been taken care of "through

contacts" are reviewed.

Bray goes to ICC. New stock issued by Central

Casualty had been completed that week.

Bray told ICC

that it was to private individuals, one to man in oil

business named Ryan.

In order to keep United Benefits 'A' rating

with Best's, Cefry says he solicited 35 agents and

got $126,000 cash representing sale of 12,600 shares

of United Benefit at $10.

Anglo Canadian Underwriters, Itd., closed account

at Underwriters Trust, New York City (see May 7, 1957).

DocId: 32329636 Page 33

---

## Page 34

Released under the. John F. Kennedy Assassination Records Collection Aot of 1992 (44 USC 2107 Note).

DATE: •11-14-2017

May 26, 1960

..:

- 20 ..

Hopps said he had no stock interest in

Affiliated Brokers (see August 20, 1959) but had

placed business with them.

Stockholders are

Edwin J. Ryan, Mexico City, John Kearney, Mexico

City and Luis

Botifol, Havana, Cuba. Hopps be-

lieved his secretary Loretto Lindhauser had put

Ryan and others in touch with attorneys to in

corporate the company in Delaware.

The company

was replacing Anglo-Canadian Underwriters, Lta.

Hopps said he was trying to work out a

deal with Affiliated Brokers whereby he would get

a monthly advisory fee of 51,000; he has receiver

between $2,000 and $3,000 from the company in th

past year.

Hopps acknowledged that he can sign checks

without restriction on the Affiliated Brokers

Account at Underwriters Trust, New York City,

(Most of the checks written by Hopps, amounting

to several thousand dollars, had either himself

or his wife as payee.) He said the principal

account for Affiliated Brokers was in Mexico

and that Messrs, Ryan, Kearney, and Botifol had

authority to sign checks.

Hopps said that the only money he had

received from Bray or Bray's companies, was a.

few hundred dollars to refund his expenses after

the trip to cuba. He said that this money was

not paid directly to him, but was paid by Bray

or one of his companies to Affiliated Brokers.

Hopps said that he had not received any other

money from Bray or his companies. (See October

Affiliated Brokers.

prior to Hopps December 1959 trip to Cuba.)

Hopps also said he has not received any

money from Intercontinental Insurance and Surety

Company.

Hopps said that Bray had been going to buy

stock in the Mediterranean Insurance Company, but

did not. (See December 20, 1959) Hopps then stated

that Bray did buy stock in the Mediterranean Insurance

Company, but got out of that company with the agree-

ment of Dr. Botifol. Hopps said that he has no

09

DocId: 32329636

Page 34

---

## Page 35

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE:; 11-14-2017

i.

May 1960

June 1960

June 1960

June (3) 1960

June 1960

- 21 -

interest in the Mediterranean Insurance Company and

has not received any money from that company in the

last two years. He said that Bray bought stock in

this company at his suggestion and got out of the

company because most of the assets of the company

are frozen by the Castro Government with the

exception of the stock of seguras.

Trust account at Underwriters is supposed

to be $300,000 but still has not received the $100, 000

in mortgages and the Homer Bray Service, Inc. note

for $100,000.

Gerber says that the money that went into

Central Casualty came from Mrs. Bray.

About this time, Central Casualty and United

Benefit made agreement to share all bail bond

business 50/50. United Benefit had more licenses

and also could write bonds on Federal courts,

Central Casualty could not do.

which

(so why 50/502)

Only the 50/50 agreement was in writing. All else

was oral. Bianchi was to head both departments,

to keep records; to give United Benefit a monthly

statement. Agents posting bonds were to pay

Bianchi

3% of the total amount of the bond. Fund

an ascrow account in event of defaults.)

Weiner

was to be General Agent for Chicago and I. S. "Bob'"

Cornett for the states went of the Mississippi.

In some states Cornett had sub-agents; sometimes

one under United Benefit and another under Central

Casualty competing with one another. (See Kansas

City FBI report of November 1960 or later.

Bianchi brought in Hillary Volin as his

• assistant; and Yvonne Decker is Bianchi's secretary.

Joseph Gerber, Director of Insurance, State

of Illinois, who had approved Intercontinental

Guaranty and Insurance Company of Tangiers, Morocco,

testified before the Senate Subcommittee on Antitrust

and Monopoly.

associates, Robert Leonhardt and William (?) D.

Corbett, that Gerber while State Director owned

Mercury Mutual Insurance Company in Illinois, and

in Illinois. Allegedly in 1957, Spike McAdams and

DocId: 32329636

Page 35

---

## Page 36

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE: 11-14-2017

June 30, 1960

July 1960

- 22 -

Von Wagner, Chicago agents of Intercontinental and also

owners of City Savings and Loan Association, had $200,000

Gerber.

Gerber denied the above and stated that Inter-

continental Guaranty was granted approval March 5, 1958

after certain American citizens filed certified balance

sheets.

(Intercontinental Guaranty's predecessor company

was West Indische Heverzekering Maalschappi], S. A.)

Intercontinental Guaranty was put out of business in

Illinois within three weeks after notice of its dif-

ficulties in California.

Gerber said he had been connected with Mercury

Mutual Insurance Company and Mercury Management Company,

Inc., of Chicago but had severed his connections with

these companies after assuming his position as State

Director of Insurance (any connection between these

companies and Dorfman's Mercury Investment Corporation?)

Financial Statement in Guaranty Bank's files:

Central Casualty Company, 1633 Central Street, Evanston,

Illinois - June 30, 1960

Assets

Liabilities

Cash

-$137,800

Claimed defaults pay. - $

25,100

Us bonds

- 446,000

Res. for loss etc.-

416,700

Other bonds

- 10,000

Res. unearned prem.

Stocks

91,000

Due on reinsurance

314,300

Expense unpaid

25,800

Real Estate

90,000

10,200

Due from agents -

- 393,800

Premium tax pay.

21,100

Due from Rein. Cos.

- 255,400

Other LiabilIty

35,000

Deposits with Rein. Cos.-

25,000

Total liability

838, 200

Other deposits -

- 207,600

Cap. stock

500,000

Accrued Interest

3,000

Surplus ----

322, 600

Total

-I, 660,800 Total Liab. & Cap.----

$1, 660,800

Stotts of United Bonding asked Keith Pyle why United

Bonding was continually being charged for "excess of loss

premium due". Pyle told him that represented refunds of

premiums to locals caused by a competitive reduced rate

which they thought would be overcome by an increased volume

of premiums on new business. Wright could not understand

the delay in returning this money. Bray told Tri State

the same thing about new business offsetting this. Wright

is constantly required to pay back premiums.

31

DocId: 32329636 Page 36

---

## Page 37

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (14 U3e 2107 Hote).

DATE:. 11-14-2017

- 23 -

October -November

1960

November 4, 1960

November 7, 1960

November 1960 (?)

Bray went to Puerto Rico to see Alex Gonzalez,

attorney for Atlantic Insurers Underwriters of San Juan,

Inc. and Manuel Font, General Manager of the firm and a

general agent for Central Casualty. Allen Dorfman, whom

Gonzalez believed was a representative of the Teamsters,

a gent ver con

and others were present.

the proposal was that Atlantic

Insurers Underwriters would coinsure with Central Casualty,

Teamsters Local 901, San Juan. (Letterhead Bureau memo,

March 23, 1962, San Juan.)

Bray writes letter to Sax of Exchange National Bank

directing that a check (commission check payable to Homer

Bray Service, Inc.) sent to Exchange on October 29, 1960

by United Benefit for $32,305.68 was to be divided with

20% being placed in the Special Account for Homer Bray

Service, Inc. and the balance in the special account

for Oxford Agency Inc. Bray also stated that all other

checks from United Benefit are to be divided similarly.

Oxford Agency Inc. account opened at Exchange

with Sol C. Schwartz, Edward R. Stroming, Irwin S.

Weiner officers. (Bray said he was paid about $8,000

some in cash the rest in cancellation of indebtedness

by them, for Oxford; the anonymous letter said Bray

was forced to sign over Oxford.)

Exchange records list the following affiliated

accounts:

Auto-Mat Manufacturing Company

Continental Processing Company

P&S By-Products Inc.

Irwin S. or Lilyan Weiner

ISP Sales, Inc. 1019 S. State Bldg.

Leo Rugendorf or Irwin Weiner, Spec. Acct.

Weiner-Volin Insurance Agency Inc.

John Carson

Lodge Smith

Thomas E. Fleming, Jr. jumped bond in Kansas City.

Owen Larson, bondsman filed power of attorney for the

surety bond, United Benefit, but had executed the appli-

cation for bond form from Fleming on a Summit Fidelity

and Security Company form and paid the forfeiture by a

check on Central Casualty®

Larson said this check was

in the form of a personal loan to him from Bianchi of

Central Casualty and that he, larson, was not affiliated

with Central Casualty. Larson was in the process of

transferring business

from Summit to United Benefit.

3%

DocId: 32329636 Page 37

---

## Page 38

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 210T Hote) .

DATE: '11-14-2017

December 1960

December 1960

December 1960

December 1960

December 22, 1960

- 24 -

Charles R. Leck, formerly officer in Summit, now

in Security Service Corporation, the bail bond portion oi

the Resolute Insurance Company of R. I. Lieck's addres

is P.O. 5185, Akron, Ohio, but he lives in Medina.

(From a Kansas City FBI report)

Stock control of Guaranty National Bank,

6760 Stoney Island Avenue, Chicago (formerly Southmoor

warrants) was purchased by Don Ross (of Ross & Rothfield)

Norman Schlossberg. (See November 1961) from Dalton.

Finance Inc., Mt. Ranier, Maryland.

Ehle, employer trustee of Cleveland IBI Local 436,

Welfare Fund, said that in late 1960 Babe Triscaro was

pushing to O.K. a loan of $600,000 to get majority con-

trol of a Chicago bank, belleved to be the Guaranty.

Apparently Don Ross and 2 others (one possibly Corrington)

appeared before the Board.

The loan application was re-

jected principally since it was for out of state interests.

Financial statement of Don Ross (from examination

of FDIC re Guaranty; other FDIC examination papers in

Chicago and D. C. Offices including statement on Mid West

Triumph):

Cash

Investments

CV-ine.

GRG ---

Rothfield & Ross ---

Income tax refund --

$

4,700-23,000 NP bonds

225,000

8,600

40,000

10,000

2,900-268, 200 NW

$291, 200 291,200

Investments

49% (249 shares) Midwest Iriumph

163,000

(Hal Opper reportedly owns other

51%)

1500 Beshoff Chemical®

6,600

1500 Standard Iriumph Motors

2,500

45 ? Investments

50,000

Intercontinental

45 Ror Inc.

1,000

223, 100*

Intercontinental Insurance Company account opened

c/o M. Breen at Dorfman's address.

Signators were Caranes,

Botifol, A. Rivero, John M. Kearney, John Ruady.

Bray agreed to take over

United Mutual Life Insurance

Co., of Fort Wayne, Indiana, no money involved. Company was

insolvent; had assets of $163,000 and worthless surplus

certificates of $774,800. (See January 26, 1962)

33.

DocId: 32329636 Page 38

---

## Page 39

Released under the, John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote) .

DATE: * 11-14-2017

December 31, 1960

December 31, 1960

December 31, 1960

February 2, 1961

= 25 =

Cefry says he got $200,000 more extra capital

thru soliciting 30 agents. (See April 1960).

Central Casualty's annual statement disclosed an

advance $392,725 from Central Casualty to Homer Bray

Bervice.

Gerber insisted it be returned (See September

19, 1961).

Financial statements in Guaranty Bank's files:

Bray - December 31, 1960

Assets

Cash

$

2,300

Investments -

295,800

Real Estate -

68,000

Car -

1,500

Pers. Prop.

16,000

Liabilities

Notes Payable - $ 16,300

Acc't Payable -

150,000

Mortgage =

40,000

New Worth

177, 300

$ 303,600

$383, 600

Homer Bray Services, Inc. - December 31, 1960

Assets

Cash

A/R -

Deposits

Stocks & Bonds

Due from Cert. of

Contribution

Leasehold improvements -

Good Will -..

Liabilities

- $ 18,100

497,200

4,500

= 804,300

100,000

800

5,000

$1,429,900

Accts. pay. - $ 129,800

Notes pay.

1044

249,900

Dits. pay.-

166,700

? Desposits -

518,900

Acct. taxes =

18,800

Com. Cap.

25,000

Pfd. Cap.

200,000

Surplus

120,800

$I, 429,900

Income $184,200

Not Operating Loss $29,100

Twin Food Products closed by City of Chicago. Firm

had failed to get permit; had been operating since 1957

without a license. City Collector William C. Prendergast

said $900 application fee from the firm was received in

1958, 1959 and 1960 but the records only show such fee in

1960. There is no provision for keeping the fee money if

the application was not approved. Prendergast said his

office did not have manpower to check on licenses but

there are 61 investigators on the payroll.

Health department had closed the firm for one month

in 1959. Samuel Andelman is city health commission. Leo

Rugendorf is president of the firm which employs as 'salesmen'

Battaglia, Frabbotta and Alderisio. Weiner believed to be

connected with firm.

DocId: 32329636

Page 39

---

## Page 40

Released under the John F. Kennedy

Assassination Records Collection Act of 1992 (11 USC 2107 Note) .

DATE: 11-14-2017

- 26 -

February 6, 1961

IBs Inc. note signed by Charles W. Bray, director

for $150,000 from Guaranty Bank and Irust, 6760 Stoney Island Ave.,

Chicago (formerly the Southmoor bank; this is the bank where

Orville Hodges cashed his state warrants). Secured by 206,000

shares CC stock. Due August 5, 1961.

February 1961 (?)

Best's shows CC sustained losses in 1958, 1959 and 1960

with the 1960 losses exceeding those in 1958 and 1959. Expenses

were 110.3% of premiums received. Report shows about $467,000 in

uncollected premiums from agents while CC reports about $350,000

in premiums due.

shows additional $300, 000 put into the business

in 1960; assets increased $90,000 with an office building in

Alburquerque, New Mexico. (Previous Labor investigation shows

only $15,000 value for building. (Wright had said co salaries

out of line.)

April 1, 1961

Summit Fidelity and Surety Company is sold to Milwaukee

group for mortgage guarantee.

May 1, 1961

Jordan, District of Columbia Superintendent of Insurance

did not renew United Benefit's license. UB had an underwriting

Loss of $260,103 in 1960 and losses in each 5 previous years of

more than $150,000. D. C. Ielt

this made the company insecure.

Also the account "Surplus Notes" in UB's statement, according

to D. C. law should be listed as a liability and this would reduce

UB's surplus from $401,585 to $151,585. Other things noted by the

D. C. department were that UB was under reserve in one area, and

that the value of acquired stock was unable to be détermined by D. C.

May 1961

June 1961

June 1961.

Earl E. Cefry is fired from United Benefit. Cefry later

wrote BLMR explaining that he was hired by George Stewart for UB

in 1953 and at that time did not realize that Hopps dominated UB.

He stated he subsequently learned that 90% quota reinsurance was

written thru Leadenhall, Itd., owned by Hopps and that two of UB's

largest agencies, Heidelberg in San Francisco and Hooper in Los

Angeles were controlled by Hopps.

Bray said UB was happy until summer of 1961 when expressed

dissatisfaction with CC because of U. S. Government pressure.

Wright and James I. Burch of United Bonding say that Cefry

contacted them about taking over as primary surety on the Teamster

bonding, and that Cefry said he was acting for Bray. The proposal

was that 10% of premiums received would go to HBS as brokerage

fee and 25% to HBS as agent with Lloyds insuring losses between

$100,000 and $400,000.

DocId: 32329636

Page 40

---

## Page 41

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Rote).

DATE : 11-14-2017

June 29, 1961

June 30, 1961

- 27-

Letter from United Benefit to United Bonding with

statement of account for May 1961 showing United Benefit

got 25% commission and 10% override on earned premiums:

Override is usually paid to originator of business.

United

Benefit and Bray controlled the entire operation and gave

reinsurers little or no information. (source:

Frank Wright).

Breakdown of 10% Reinsurance Accepted

by United Bonding from United Benefit

Thru June 30, 1961

$56,103.46

Excess of loss dep. prem. 60

Excess of loss dep. prem.

61

Total

22% tax retained

5000

2500

7500

1402.50

2,902.59

$47,200.87

Premiums earned thru 6/30/61

25% commission

10% override

Claim adjustment expense

Loss paid

Balance

Received from United Benefit

Refunds already paid

$27,369.05

6,842.26

2,736.91

43-38

42.32

$ 2,579.17

$37, 621. 70

June 30, 1961

July 6, 1961

85•70

$37,536.00

$56,336.00

15,952.09

740, 383.91

2,847•92 (?)

$37,535.99

Notes of Bank Examiner in Guaranty NationalIBank reveal

"Time C/D 6/30/61-12/30/61-no interest.

Resolute Credit Life

Insurance said to be compensating balance for above Ioan."

($150,000 loan to HBS Inc. - see 2/6/61) "Amount of certificate

not shown.

Neither is maturity year shown."

Titan Company incorporated by Albert Marks, Robert S. Blatt

and Michael Freeman; 11 S. La Salle Street, (Weiner, President).

Officers of Titan became Weiner, Pearls, Slickenmeyer and P. J. Nolen.

? July 1961

Central Guarantee Insurance Company formed by Bray and

Weiner. Oxford had written group HI & W on Central Guaranty forms.

DocId: 32329636

Page 41

---

## Page 42

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Hote) .

DATE: 11-14-2017

? July 1961

July 15, 1961

April 5, 1961

August 1961

August 1961

- 28 -

Oxford shows $3, 460 in trust account at Guaranty Bank

and $5,502 on deposit in commercial account at same bank.

Bonds rewritten into Resolute Insurance Company. (Charles

Lieck, formerly associated with Bianchi in Surmit now in Resolute.)

Best's 1961 gives Resolute Insurance Company of Providence,

Rhode Island an At policy holders rating and a financial rating

Of AAA; firm is principally engaged in financing auto loans and

home loans which it insures. Chairnan of the Board is Lewis

Morganstern; President is Edward K. Scribner.

Houston Fire and Casualty (30%) United Bonding (25%)

CC (45%) carry primary reinsurance up to $100, 000 with Iloyas

handling the excess.

Provision for 10% override to United

Bonding on earned premium. Bray is getting 25% commission and

10% override. Cefry employed by Bray in HBS. Schwartz and

Weiner still in picture (getting kickbacks?) • Also reported

that Oxford is to get 25% on earned premiums (one report

indicates the percentage on the reinsurance to be: 50% CC,

25% each United Bonding and Houston Fire.)

HBS Inc., note to Guaranty of February 6, 1961 due this

date is extended in new note due February 1, 1962.

(see September 11,

1961.)

Gerber ordered CC to stop soliciting business for a

bonding plan for Teamster Union officials.

The plan would

have covered litigation fees for union officers - which is

illegal.

Wright said Cefry was let go by United Benefit because

of large losses UB sustained on construction bonds written

One bond of $100,000 Cefry failed to

reinsure and UB suffered the whole loss. Wright often asked

for list of locals anadetails of premium processing, but never

got them. Bray told Wright Bray would get West Coast bonding.

Wright said Bray had a company on the West Coast named Sunshine.

DocId: 32329636

Page 42

---

## Page 43

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Note).

DATE : 11-14-2017

August 23, 1961

September 1961

September 1961

September 8, 1961

September 11, 1961

September 19, 1961

September 20, 1961

September 29, 1961

Bray wrote Wright confirming that Resolute

was going to "front" the IBT bonds. Attached was

an offer fron Resolute for United Bonding to parti-

cipate in 25% of the reinsuring and that others

would be Houston Fire and Central Casualty with

"premium to be determined." This same provision appears

in agreement with United Benefit and gives just-

ification to underwriter to delay excess premiums.

Bray's letter states that Central Casualty will

handle

all of the reinsurance money claims, etc.

Central Casualty and United Bonding are

cancelled by Resolute for reinsurance retroactive

to July 15, 1961. (the date Resolute came in).

Resolute transfers agency from Oxford to

Titan (Schwartz, Oxford Pres.; Weiner, Titan Pres.)

Hopps and Birrell indicted in New York with

Louis Kovel, Lorretto Chooljian, aka Lindhauser, for

evading personal and corporation taxes in regar

to operations of Leduc Petroleum, Ltr., Doeskir

and Atlantic Brokerage Coro. of

Products, Hoops hail been indicted in baltimore.

2 32, 50 bone on too rest not to a mata roto

It is not known whether

it was in relation to this charge.)

Bank examiner at Guaranty National notes that

Central Casualty stock, collateral for $150,000 loan

Homer Bray Service, Inc., has book value of $1.64

and that "company account here, balance $1,811.74;"

"have also secured a $100,000 C/D for us.

Funds to

pay off $150,000 at First National Bank and Trust

of Evanston." "Purpose of loan to purchase stock

in Central Casualty."

Another note of examiner states:

draft on his (Bray's) account in which there is no

oxaminer stenten there t

"Bank pays

balance, then notifies him and he deposits enough

to clear out drafts. Has personal account $1,800."

Bray gave Gerber check for $392,725 made out

to Central Casualty which Gerber deposited.

(see

December 31, 1960)

$390,000 was withdrawn from Central Casualty

and put into Homer Bray Service, Inc.,

Hopps surrenders in Chicago on New York indict-

ment charging evasion of $1,423,906 in taxes.

DocId: 32329636 Page 43

---

## Page 44

Released under the. John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 late) .

DATE: 11-14-2017

October 1961

October 25, 1961

October 61,

November

November 1, 1961

November 1, 1961

November ? 1961

November 1961

Novemoer 1961

- 30. =

Hillary Volin, son of Louis Volin, said Weiner

spends most of his time in business deals with the

racketeers.

On petition by S.E.C., Federal Judge Miner

enjoined Central Casualty from taking control of

Professional Life and Casualty Company through

an exchange of stock.

Harold J. Craig, salesman

for Professional, Charles Bray, James Bray and

Homer Bray Service, Inc., planned to acquire Profes-

sional in an exchange of 3 shares of Central Casualty

for one Professional. Craig induced Professional

shareholders to put their shares in an escrow acoount

at Guaranty.

Homer Bray Service, Inc. would then

match each Professional share with 3 Central Casualty.

In this manner, Central Casualty got 50% of Professional

but Professional's management refused to transfer

the stock. Central Casualty did not register with

the S.E.C. and the S.a.C. said the transaction was

an "offering" and needed registration. Judge Miner

agreed. Professional's management complained

that the exchange was not a fair one and that manage-

ment had no knowledge of it. Bray filed statement

that his group was abandoning their attempt.

Tolls calls show: Weiner was in contact with

Lou Morganstern of Hartford (Resolute Insurance Co.);

Sammy Kaye in Miami and Rio de Janeiro; Bray in contact

with Fidelity Bakers Life Insurance of Richmond, Va.

Houston Fire cancelled as reinsurer or the

Teamster Bonds.

Resolute becomes the only cazrier of the first

$100,000 and the reinsurers on the excess $667,000

through Stewart Smith, New York City are:

73%

Lloyds of London

5%

London and Edinburgh Insurance Co., Montreal

4%

3%

15%

United Benefit, Omaha

Pat Nolen resigned at Oxford; Stroming no

longer with Oxford.

Bianchi allegedly ill and away from Central

Casualty; due back first week in December.

Guber ordered Bray to sell within 60 days

real estate owned by Homer Bray Service, Inc. in

Alberquergue, New Mexico; the proceeds were to be

-----

3,9

DocId: 32329636 Page 44

---

## Page 45

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hote).

DATE; 11-14-2017

November 1961

November 1961

November 1961

- 31 m

used to reture certain insurance contracts Gerber

thought questionable but the order was not complied

with.

Berber thereafter ordered Central Casualty

to cease operations.

Keith Pyle, Vice President and Director of United

Bonding, advised that Homer Bray owns 1500 shares

of United Benefit, Central Casualty owns 3000 shares.

United Bonding's total shares are 220,000.

In bonding, each agent must submit weekly

Buildup Fund (an escrow account of 1% of the total

amount of the bond) and the Premium Fund (2% of the

bond amount).

These must be paid by an agent to

Central Casualty at the time he advises the office

that he has written a bail bond.

-yle said (Omaha FBI report to KC, USA.

Jnited Bonding has been displeased with its surety

bond operation and is taking steps to sever all

connections with Central Casualty Company and any

business relating to security bondss

United Bonding

had set August 1, 1961 as the date they would cease

but Central Casualty had been unable to get another

company to take United Bonding's place and the date

had been extended to January 1, 1962.

There was

an agreement that Central Casualty would have 100%

liability on all bonds dated after July 1, 1961

and United Bonding would get a percentage

(Evaluate this in light of sub-

sequent events!) His agents are not allowed to

write bonds for more than $10,000. United Bonding

can write bonds up to $66,000. Pyle believed that

some agents did have blank powers of attorney.

(From FBI bonding report to Organized Crime)

run in th

apolis by the Cleveland mob who used the Trans

American Agency.

Schloss, president of United

Public Insurance Company, hired an ex-FBI man named

Miller to investigate and, when the hoodlum intlu-

ence was discovered, sold the company. United

Bonding reinsured United Public Insurance Company

reliability on existing business so the company

could end.

Grant heard that Summit had been set up by

Guzik (then mob treasurer) money from the racketeers.

Reserve bought Summit about 1956 and hired Bianchi.

DocId: 32329636

Page 45

---

## Page 46

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (11 USC 2107 Hote) .

DATE : 11-14-2017

November 1961

December 21, 1961

December 1961

_December 31, 1961

- 32 -

Harvey Rubenstein worked under Bianchi, then went

to Stuyvesant as Vice President.

Bianchi allegedly

went to Rubenstein for a job after Summit folded

but Rubenstein would not hire him because he was

suspicious of the hoodlum ties about which he

(Rubenstein) had heard when he was at Summit.

Grant also said that some bondsmen were

writing in

the amounts on United Benefit forms which is

unheard of since the amount is usually printed on

it by the company.

Grant said the sources of his information were

Harvey Rubenstein, George Miller, Frank Wright and

Robert Smith.

smith, now with LaSalle Casualty Co.,

Chicago, told Grant that when he worked with Summit

his home was burned down and his children threatened

as a result of his not cooperating with the hoodlums

Ross et al sold their interests (acquired 12/60)

in Guaranty National Bank to Dee Jay Stores, a sub-

sidiary of United Star Companies, Inc., an interest

of Mike Goldgar of Atlanta, Georgia.

Goldgar through

another subsidiary, Caribbean and Southeastern

Development Corporation,

controls the Bank of Miami

Beach, Miami Beach, Florida. President of Guaranty

Is Louis corrington who is also a director in the

Bank of Miami Beach. Minority stockholder is King

Korn Stamp Co.

Purchase price was $798,000 representing 14,000

shares (51%) at $57 per share.

American National

Bank and Trust Company of Chicago holds the 14,000

shares as collateral for a loan to Dee Jay, balance

$177,750 due 4/10/62. Present status of loan not

known.

(While Ross in control Joey Glinco had

$252,000 IBI account - account now closed. Ross once

had given Glimco dealers discount in Jacguar for

Glimco's daughter.)

Oxford Agency (Schwartz, Stroming, Weiner)

and Homer Bray Service, Inc. closed their account

at Exchange National Bank.

Burks eesigned as chairman of Central Casualty.

Oxford shows surplus of $52,476.10 but

$49,834.61 is pledged to Exchange

and was applied

DocId: 32329636 Page 46

---

## Page 47

Released under the John F: Kennedy Assassination Records Collection Act of 1992 (14 USC 2107 Nete).

DATE: 11-14-2017

December 31, 1961(?)

?

January 1962

January 26, 1962

January 31, 1962

February 1, 1962

February 1962

February 1, 1962

033.

to offset loan on 12/21/61.

Bray borrowed $200,000 from Exchange and

pledged commissions due Oxford from United Benefit.

Also posted with Exchange a $100,000 bond of central

Casualty and a $100,000 bond of United Bonding.

oxford paid $48,862.75 to Titan. Titan

had loaned Central Casualty $50,000 for which Central

Casualty had assigned to Titan cettain receivable

among which was this sum from Oxford.

Marion Burks, candidate for Republican con-

gressional nomination and officer of Central Casualty,

stated that he helped organize Central Casualty in

1955 and received 1/2% of stock as fee. Later he

invested $5,000 in company. Bray invested $115,000

then later put up $400,000. Burks estimated Bray

and his family own 94 1/2% of Central Casualty.

Burks helped to obtain licenses to do business

in 33 states. Burks received $15,000 a year salary

from January 1, 1956 to November 1961. Bray says

Burks handled a deal involving reinsurance in which

$378,000 is owed to Central Casualty by Nassau

Surety Company.

• Indiana liquidated United Mutual Life Insurance

Company.

(see December 22, 1960)

Gerber starts investigation of Central Cas-

ualty and Homer Bray Service, Inc. which shows

that while IBT and bail bonding business was profit-

able, there were heavy losses on high risk auto,

taxicab and truck casualty insurance it had written.

Losses estimated at $2,000,000.

Reportedly crime syndicate members had been

insuring theirscars with Central Casualty.

Illinois Attorney General Clark says audit

of Central Casualty shos shortage of $1,557,050.

Burks says that Bray and Bray's immediate

family own 95% of stock of Central Casualty.

Burks

owns 1/2 of 1% for which he paid $5,000; the rest

is owned by Bray's relatives and close friends.

Oxford Agency is halted from doing business

by Illinois. 33 bondsmen of the company were suspended

in criminal court.

Company's operations in Michigan

also halted.

DocId: 32329636 Paye 47

---

## Page 48

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Note).

DATE :, 11-14-2017

-34 -

February 1962

February 1962

February 1962

February 1962

February 1962

: =Et dinn

Oxford issued 582 bond certificates with total

premiums of $490,861.86. Bonds were written on

United Benefit as of January 1, 1960. Oxford received

20% commission.

Oxford accounts receivable include:

Barbe Brothers

*G. Bartling and Sons, Kansas City, Missouri

Belmont Agency •

Bernardo, James

*Boardman Hamilton Company

*Delaware Valley Underwriters, Inc.,

Philadelphia, Pennsylvania

Industrial Clearing House

Kitzer, Phil

Levine, Sam

*Nash Insurance Service, Inc., Chicago

Sol Shakawitz=

Erwin Shepherd

*1960-1961 one commission check to each * above

The $1,000,000 in losses said Gerber, consisted

of the $392,775 advanced to Homer Bray Service

(see September 19, 1961), an earlier $300,000 non

existent reinsurance credits, and certain business

Gerber says that $100,000 in funds placed in

escrow by bail bondsmen have been withdrawn with no

accounting. Such funds are not supposed to be taken

from escrow.

$5,300 in bond forfeitures were due January 26,

1962 but were not paid.

Gerber also said there are insurance company

complaints that Homer Bray Service failed to remit

premiums it collected for them.

Report that reinsurance collected by Homer

Bray Service, Inc. but not forwarded to Central

Casualty totaled more than $1,000,000.

The Illinois State Insurance Commission announcec

that the Intercontinental Insurance and surety Co.

in Nassau, Bahamas, owed Central Casualty $378,616

DocId: 32329636 Page 48

---

## Page 49

Reteased under the John F. Kennedy Assassination Records COLlection dot

DATE: 11-14-2017

note).

February, 1962

February 13, 1962

February 1962

February 1962

-35 -

on a reinsurance deal. The Chicago Tribune of

February 10 reported that the principals of the

company included: Bernardo Carames, President

(former Minister of Justice under Batista), Luis J.

Botifoll, a stockholder, (a lawyer and former editor of

and now publicity man for the anti-Castro Cuban

Revolutionary Council), Carlos Prio, a stockholder,

(former President of Cuba üntil ousted in 1952

by Batista) and Amadeo Barletta, (a wealthy Italian,.

owner of El Mundo whose extensive Cuban holdings

were seized by Castro).

According to Chicago newspapers, John M.

Kearney, Vice President of Intercontinental Insurance

and Surety Co., stated that his firm had severed

relations with Central Casualty on July 1960 and

that "full and complete settlement between the com-

panies had been effected in 1961". Kearney said that

some of Intercontinental's records were in Havana,

Mexico City and Panama.

Kearney denied that Botifol,

Prio and Barletta had any connection with his firm.

Liquidation of Central Casualty sought.

Gerber says Bray transferred to Homer Bray Service, Inc.

$700,000 of insurance funds that cannot be accounted

for.

Bray also posted unauthorized insurance company

stock for loans from bonds and ther have been some

defaults.

Bray told Chicago News that Central Casualty

wrote individual A & H policies worth $60,624 in

premiums from members of the Teamsters and other unions.

Also wrote group policies worth $129,703 mostly with

the Teamsters. Also handled bonds for officials of

the Teamsters and five other international unions that

would have amounted to $600,000 in business over

3 years; but this business was cancelled after 18

months and the big insurance companies took it over.

Bray said that Central Casualty in 1962 had anticipated

53,500,000 total sales as opposed to $2,500,000 in

1961.

Bray said Oxford has not paid commissions to

its agents including Weiner and Schwartz for IBI

health

and welfare insurance.

Further, he said the

proceeds from the Exchange Bank loan did not go to

Oxford nor to the Dorfmans nor to any official. No

longer on speaking terms with the Dorfmans.

DocId: 32329636 Page 49

---

## Page 50

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Hete).

DATE : 11-14-2017

February 1962

February 19, 1962

February 19, 1962

February 21, 1962

= 36 -

FDIC examiner's notes reflect a write-off

of Homer Bray Service, Inc. loan by Guaranty

as follows:

Homer Bray Services, Inc.

102,500

2,295

due 2/1/52

overdraft

Note signed by Charles W. Bray as a director

of the corporation and also individually.

Collateralled by 206,000 shares of Central

Casualty Co. of Chicago. Stock believed worth-

less and company reportedly in liquidation.

Bray, president of the company, reportedly

misappropriated funds. Attorney advises

no equity left for stockholders of Central

Casualty.

Overdraft charged off during exam-

ination.

Loan to be charged off within 90

days.

Loss 102,500 (LOSS)

Guaranty National records (FDIC exam)

show Don Ross owed $20,435.50 (Ross had guaran-

teed a $9,000 plus loan to Bartone, and had

reportedly guaranteed a $15,000 "Indirect"

loan to Naiman Corporation.

On 8/29/60,

Ross guaranteed a $4,000 loan to Max Rothfield.)

FDIC examination shows following in Guaranty

National Bank's files:

Letter 2/19/62 from E. A. Wallon, member of

Avey legal firm states

There is absolutely

no equity left for the stockholders of

Central Casualty - it appears we should proceed

to obtain a confession judgement on the note."

"Central Casualty in liquidation."

"'Feel Bray may have some money some place

We will prosecute against Bray for fraud.

Note in process of reducing to judgement."

Scribner of Resolute said that because

of the happenings at Central Casualty and

Oxford and because of the uncollected premiums

on IBT bonds (about 50,000); certain changes

were made. Resolute anticipated that Oxford

would not get a new license and transferre

to Titan in September 1961. In regard to the

unpaid premiums, Resolute credited Oxford's

earned commission to them. (what pappened to

the premiums?)

DocId: 32329636

Page 50

---

## Page 51

Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 Mote).

DATE: 011-14-2017

February 1962

February 1962

February 1962

February 1962

- 37-

In Chicago's Criminal Court, Joseph

Drucker authorized the Cosmopolitan Surety

Company to back bonds written in court by

Central Casualty. Cosmoplitan has taken on

24 of 33 former Central Casualty agents writing

bonds there.

A: J. Bianchi was Central's

Vice President in charge of bail bonds.

Cosmopolitan Insurance Company has offices

at 4620 Sheridan Road.

Bianchi serves ties with Central Casualty

and joins Cosmopolitan which is handling same

business under same arrangements with United

Bonding.

Pyle said that United Benefit and Cos-

get on the Treasury list as soon as possible.

One provision being discussed is that United

Bonding stay in business with Xosmopolitan for

License for Federal Courts and gets necessary

contacts with arents. Illinois State Commissior

A mail cover showed Charles Bray in receipt

of mail from the following:

Alburquerque National Bank

Arvey-Hodges and Montyband, Chicago

Central Claims Service, Dallas (Bray Co.?)

Davis 509 S. Albert Chicago

Feak and Shaffer, Alburquerque, New Mex.

First National Bank, Evansion,

I11.

(addressed to Assoc. Insurers, Itd.)

Fox Lake Hills Water, Wilwood, I11.

Franklin, J. I., Champaign

General Accident Group, Chicago

Homer Bray Services, Ltd. (Can) P. 0. Box 1535

Nassau

Insurers Security Corp. 175 W. Jackson

John Philips, Ltd., P/ O. Box 1535, Nassau

(Hopps? )

P. 0. Box 722, Chicago

Potomac Insurance Co. 12 Cooper Ave. NW

Alburquerque, New Mexico

Potomac Insurance Co., W. Jackson, Chicago

Savage & Sganzini, Simms Bldg.

Albuquerque, New Mexico

Stanley, Roberr, Rock Island

DocId: 32329636

Page 51

---

## Page 52

(Released under the John F. Kennedy Assassination Records Collection Act of 1992 (44 USC 2107 lote) .

DATE : 11-14-2017

in".

c

February, 1962

March 1, 1962

March 12, 1962

March 13g 1962

March 20, 1962

- 38-

An article in the Chicago Tribune men-

tioned that several years ago Central and Oxford

were ordered by Gerber to stop soliciting

union business and return all premiums already

paid. It is believed that the companies

had proposed selling a bond which would in

indemnify union officers for costs of defending

criminal suits against them, which is illegal..

Central Casualty liquidated by court

order. Bail bond records were not seized

by the state but were taken prior to this date

by Cosmopolitan. (Is Gerber in league with

Cosmopolitan).

Unsigned undated letter to ICT from

oxford Agency, Inc. Board of Trade Building,

111 W. Jackson Blvd., Chicago, advising

renewal rates on the bond at the expiration

consolidated bond is approved by the Labor

Department.

Irving Benjamin, state auditor, says

Nassau assets of Central Casualty are worth-

less stock.

FBI reviewing IBT Local 901's files found

a file marked Central Casualty containing

a letter (date of letter not set forth b

Bureau in letterhead memo March 23, 1962,

Dear Frank:

Central Casualty Co. has been on

the risk for your group insurance program

since December 1, 1960. To date, there

have been no premium payments.

In checking our records, we find

that seven claims have been paid on

members of your local.

In talking with Mr. Kavner we were

Under the impression that six weeks ago

DocId: 32329636

Page 52

---

## Page 53

Released under the John F.' Kennedy Assassination Records collection Act of 1992 (14 USe 210% Hote).

DATE: -11-14-2017

-39 -

March 28, 1962

March 30, 1962

Yours very truly,

Allen

A note typed on plain white paper clipped to

the above stated:

Frank - If I do not hear from you within

the next two weeks, you leave me no altemative

but to discuss this with the Intemational

Office.

Allen

(This correspondence indicates that Central

Casualty was handling some general insurance

for the IBI as well as the bonding.)

A. J. Bianchi listed as Vice President

Cosmopolitan Insurance

December 1961. There has been no relationship

between Central Casualty and United Bonding

on bail since about January 1962. General

agents and individuals agents are required to

post in escrow with Cosmopolitan about 1%

Bianchi denied knowing the

Dorfmans. Bianchi said that he had beer

president of Summit for 15 years and that

Weiner was Bianchi's general agent at Summit.

Letter to ICT from National Oxford Agency,

Inc. 1223 LaSalle Street, Chicago, advises that

effective April 10, 1962, it will service the

Faithful Performance bonds issued by Resolute.

(A similar letter was found in the files of

the Southern Conference of Teamsters.

DocId: 32329636

Page 53

---

## Page 54

Released under the John I. Kennedy Assassination Records Collection Act of 1992 (11 i5€-21

# Hote).

DATE: $11-14-2017

April 1, 1962

April, 1962

April 8, 1962

April, 1962

May, 1962

-40 -

Mid Continent Underwriters Agency Corporation,

nom 1100, 100 deficers areve., Elgia, Illinois is

incorporated.

President: Harry L. Walsh, Jx., East Dundee, Ill.

Vice-Pres.: Mathew W. Agner

Secretary: Arthur W. Baum, Chicago, Ill.

Walsh had been associated with the Madison Acceptance

Guaranteed Insurance Co., Madison, Wisconsin.

(See June 3, 1962)

Gerber says that Central Casualty issued 11, 655

shares of unauthorized stock. Mentions two loans: one

for $102,000 from the Guaranty Bond (the bank where Orville

Hodges cashed his state warrants) to Bray; the other for

an undisclosed amount from the Pan American Bank in Miami

to Eagan. The 11,55 shares were given to Champaign,

Illinois bank as security for a loan to Craig.

This was

as part of the proposed merger with Professional Life and

the shares were to be given for 3,835 shares of Professional

Life.

However the S.E.C. stepped in and Bray withdrew

the deal. The shares were returned and never appeared on

the books.

Three certificates for 50,000 shares each were

given to Pan American Bank. (Burks said his signature was

forged.)

Gerber said Bray defaulted on a loan from another

Chicago Bank for which he put up 250,000 shares, and a

bonding Company was forced to make it good.

A spokesman for Central Casualty said Bray lost

$500,000 after Gerber

announced his investigation.

Gerber said he saved Central Casualty $150,000 to

$200,000 in losses by selling the lease to the building

that housed Central Casualty and Homer Bray Service, Inc,

disposing of litigation and with funds from the bail bond

escrow account.

Illinois Insurance Commissioner's Office examina-

tion Central Casualty and Homer Bray Services Inc. has

not shown any connection with Allen Dorfman.

The Chicago Tribume reported that Central Casualty

issued more than 300,000 unauthorized shares and that two

sets of books were used. One set showed three stock cer-

tificates were issued in 1960 for 50,000 shares each; the

other set showed stock certificates with the same numbers

were issued in 1961 for 350 shares each.

The 150,000 shares

put up by Egan in Miami as collateral were not owned by him.

DocId: 32329636

Page 54

---

## Page 55

Released under the dohn F. Kennedy Assassination Records coffection Att of 1992 711-150

DATE: 11-14-2017°

Hote).

- 41 -

May, 1962

May, 1962

May, 1962

June, 1962

July 5, 1962

July 13, 1962

Investigators said that management intended to cancel

the excess stock but this was never done.

Scribner told Wright that Weiner and Schwartz

are getting 85% cut.

Resolute has not received any

premiums yet from United Benefit. Wright said Morganstein

runs company like a dictator and Scribner is treated as

a lackey.

United Benefit is still in bail bond business

underwritten by Cosmopolitan Company in Chicago. Officers

are:

President:

Vice-Pres:

Irving R. Sylvern

Jerome Stein

Vice-Pres: John A. Pennish

Vice-Pres:

Martin L. Shape

Vice-Pres:

John Clifford

Secretary:

Robert Jackson

Treasurer:

Board:

Peter Bergman

Arnold Kruger

Board:

Allen Kopler

Titan has offices at 1019 South State St., Chicago.

Charles Bray is working for Mid-Continental

Underwriters Agency Corporation, Telephones: 695-0700,

MA 6-5035) • (See April 1, 1962)

Charles Bray and James Egan, former vice

president of Central Casualty, were in Miami with

Sam Kaye. Allegedly, Bray, Egan and Kaye are

associated in a business deal involving exchange

of foreign currency, possibly in Rio de Janiero.

It was reported that Egan sufferedaa heart attack

while in Miami and was hospitalized at a Jewish

Hospital in Miami; his condition is unknown.

(Bill Kenny in Miami reported that Kaye and

Santos. Traficante are on good terms, that Traficante

assisted Kaye in some South American deal.)

Sid Cox of Treasury reported that Bianchi

went with Cosmopolitan after Central folded. United

Benefit had been owed $90,000 by Central Casualty

which debt Cosmopolitan paid in order to get the

bail bond business. Recently Cosmopolitan bought

out United Benefit. FNU Volin is a director in

Cosmopolitan.

Cosmopolitan has a lot of new money

coming into it; has also gained control of a

High Point, North Carolina firm.

United Benefit

had been writing Cosmopolitan bail business since they

have Treasury listing.

When that was about to be

withdrawn because United Benefit was shaky, Cosmopolitan

pledged $400,000 to cover it. The Illinois State

insurance examiner in charge of the Central Casualty

DocId: 32329636

Paie 55

---

## Page 56

Released under the Jahn F. Kennedy Assassination Records Collection Aet 01 1992 111 USC

2107 Note).

DATE: 11-14-2017

September, 1962

- 42 -

review, (Irving?) Benjamin, has taken a position

with Cosmopolitan.

Hopps is scheduled to be tried in Baltimore,

Maryland for mail fraud.

DocId: 32329636

Paye 56

---