Agency: FBI
Originator: FBI
From: SAC, MI
To: DIRECTOR, FBI
Document date: 03/24/1962
Document type: PAPER-TEXTUAL DOCUMENT

## Page 1

JFK Assassination System

Identification Form

Agency Information

Date:

5/29/201

AGENCY: FBI

RECORD NUMBER :

124-10206-10310

RECORD SERIES: HQ

AGENCY FILE NUMBER :

92-2713-299

Document Information

ORIGINATOR: FBI

FROM: SAC, MI

TO: DIRECTOR, FBI

TITLE:

DATE: 03/24/1962

PAGES:

7

SUBJECTS :

CM, THP, REL, DEPORTATION, ASSOC, CONTACTS

DOCUMENT TYPE: PAPER, TEXTUAL DOCUMENT

CLASSIFICATION: Unclassified

RESTRICTIONS: 4

CURRENT STATUS : Redact

DATE OF LAST REVIEW: 11/21/1997

OPENING CRITERIA: INDEFINITE

COMMENTS: INC A/T

N9.1

8

---

## Page 2

3/28/62

parter

+60 092-2713-299

.401

SACs. Milwaukee (92-247)

New Orleans

(92-36)

Washington Field - Enc.

From: Director, FBI

CARLOS MARCELLO

AR

00: NEW ORLEANS

Tolson

Belmont

Mohr .

Callahan -

Conrad -

DeLoach -

Evans.

Malone -

Rosen

Sullivan

Tavel

Trotter

‹Tele. Room.

'olmes

idy

Enclosed to

Washington Field is one copy of Milwaukee

letter to the Director 3/24/62, which is self-explanatory.

In view of the allegations made by PCI Frank Russell

as

set forth in above letter, all offices should attempt to

obtain verification of same through various sources and contacts.

Milwaukee should furnish more information concerning

the background of PCI Russell and specifically should advise

of his reliability with respect to information furnished in the

You should also make dvery effort to verily that he made

telephone calls to the Marcello group in New Orleans on 3/20/62,

and that he was in contact by long-distance telephone 3/22/62

with bonohue, apparently of Washington, D. &.

You should also

attempt to determine the date,

as possible, and place

that Marcello, Pet russell and bonghue met general

Trujillo,

former dictator of the

Pomadçat sepublic, in Washington, D. C.

malwaukee should-furningue Bureau and New OrLeans

all details concerning, postly

pigt contacts and the relation

ship between Frank Balustriest

and carlos marcello in order

TLG : asg

PCI Frank Angell, Milwaukee DiViSiOn,

(8)

claimsumeland:

Donohue, & Washington lobbyist

who is

well acquainted with the President and the

Attorney

Genetal,caltided to attempt to make money

CAPR 1 019621

by makit attengements to keep Marcello from being

(note continued on Page 3)

MAILED A

MAIL ROOM

TELETYPE UNIT

MAR2 & 1962.

coMM-Fas

---

## Page 3

Airtel to Milwaukee

RE: CARLOS MARCELLO

that a better evaluation can be made concerning the reported

friendship between these two individuals.

You should recontact

Russell and attempt to obtain more specific information as to

the times, dates and places that the various incidents occurred;

which are described in your letter in order that effort can be

made to verify

intormation furnished by him prior to dissemi-

nation of same.

You should obtain more details concerning the

identity of Donohue and Duffy and furnish same to Washington

Field in order that an effort can be made to further identify

and

develop information concerning these individuals. It is

investigator for the McClellan Committee.

New Orleans, through established contacts in the

telephone company, should review appropriate records in an

effort to determine if the Marcello group has been in

telephonic contact with PCI Russell in Milwaukee. New Orleans

also advise of any information in

its possession which may

be of

significance to the information furnished by Milwaukee.

Alter receipt of desired data from Milwaukee, Washington

Field should discreetly handle logical investigations which would

assist in verifying any allegations made by PCI Russell.

This matter must

be handled promptly and results

furnished to the Bureau.

Milwaukee and New Orleans should handle this matter

promptly and furnish results to Washington Field, in order

that logical

1 Investigation can be conducted by them.

---

## Page 4

NOTE continued: deported from the United States.

Marcello is a

notorious New Orleans hoodlum on whom four Federal indictments

are presently outstanding.

Russell claims he was placed in

contact with Marcello by Frank Balistrieri, Milwaukee hoodlum.

Russell claims Marcello will give a million dollars to anyone

who can make arrangements for avoiding his deportation.

Russell

plans to make arrangements for same and act as a go-between with

the Marcello group,

while Donohue

will act as a go-between with

"high" Government officials.

One of Donohue's reported contacts

is one Laverne Duffy, who informant described as an Assistant

Attorney General. There is no one in the Department by that name.

However, there is an individual by same name who in the past has

been an

investigator with the McClellan Committee. One of the

schemes involved in this matter would be to arrange to have

Marcello make witnesses available in the Hoffa case, since the

the totarcase,

Government is having considerable difficulty in developing witnesses

who can assist in the prosecution of him.

After details were

worked out between Russell and Donohue, Russell contacted Sam

Marcello and was informed that there was no need for further

action.

"Everything is taken care of."

Russell believes the

Marcellos have already made arrangments to avoid his deportation

by distributing the million dollars in high Government circles.

This airtel is being forwarded in an effort to prove or disprove

allegations made by Russell.

-

3

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## Page 5

- що.

OPTIONAL FORM NO. 10.

5010-104.

UNITED STATES GOV

ERNMENT

Memorandum

•TO

DIRECTOR, FBI:

DATE:

3/24/62

SAC, MILWAUKEE (92-247:)

SUBjECT:

CARLOS MARCELLO,

AR

00: NEW ORLEANS

Re Milwaukee tel 1/29/62 and Milwaukee airtel to Bureau

3/23/62 captioned

"CRIMINAL INTELLIGENCE PROGRAM,

7

MILWAUKEE DIVISION, Weekly Summary, Bufile 62-9-30.""

The following information was obtained from PCI FRANK

RUSSELL on 3/22 and 23/62:

De

Approximately a year ago RUSSELL in a conversation with

one JIM/DONOHUE, whom he described as a washington

lobbyist who has represented among others the, Dominican

Republic and who is well acquainted with both the President

and the Attorney General since they initially came to

washington, D.C., were discussing the possibility of

making some money since DONOHUE had heard that "someone

high in Government circles" would be available to assist

in arranging for making it impossible to deport CARLOS

MARCELLO.

PCI contacted MARCELLO by long distance telephone from

Milwaukee to New Orleans and introduced himself and.

arranged a subsequent telephone conversation whereby

he could be identified to MARCELLO by FRANK BALISTRIERI,

top hoodlum in Milwaukee Division. Thereafter, another

call was made to MARCELLO.

.. BALISTRIERI was put on the line

and obviously highly recommended PCI to MARCELLO, though

Pop do

capsti

he talked in' Italian and the details of the introduction

were unknown to PCI.

Following this introduction, MARCELLO

agreed to meet PCI

and DONOHUE,

and they met in a washington

hotel where it was

learned that the "high Government official'

was not an U.S. official, but General TRUJILLO, Dictator of

the Dominican Republic.

REC: 40/2

=21/3-299-8

2 Bureau, (RM)

New Orleans (RM)

18 APR

3

1962

3

Milwaukee (92-247)

(1-137

PCI FRANK RUSSELL)

(1-94-316)

JAH: bS

(7)

Aited t me, No,

WFo

---

## Page 6

MI 92-247

PCI explained that the Government had for years been

endeavoring to deport MARCELLO, who was born in

Tunisia, but because of MARCELLO's payoffs in Government

circles

in Tunisia, Italy and France, none of those

countries would receive him.

The current attempt was

to have a phony birth certificate prepared in

the

Dominican Republic for MARCELLO and leak back information

whereby the Government of the U.s. could discover the

existence of this birth certificate and deport MARCELLO:

to the Dominican Republic rather than to a European or

an African country.

•TRUJILLO was to get $200,000 1f

this plan went through, and PlI was to hold the money

in escrow for this purpose.

Before the plans could be completed for this, MARCELLO

was "grabbed and hustled to Guadamala by Army airplane"

and what his attorney described as a kidnaping by the

Government of the U.S. while his deportation case was

still under

appeal.

PCI thereafter furnished through MARCELLO's brother;

SAM, two names of Guadamalan officials--one being the

head of the Guadamalan

Air Force and the other being

an individual who at the present time is Guadamalan

representative to the United Nations, name unrecalled.

Within a very short time after this, PCI heard that

MARCELLO was back in the U.S., and as recently as six

months ago in talking to MARCELLO's brother, SAM, by

telephone, PCI learned

that the MARCELLO family was

willing to spend a million dollars, if necessary, to

keep MARCELLO in the country so he could spend the

rest of his life with his family.

PCI had further discussions

with DONOHUE relative to

this matter and learned that MARCELLO was Number 1 on

the list to be deported and that although the Attorney

General was personally very Interested in getting

MARCELLO deported, this interest was second to his

interest in getting JAMES R. HOFFA In jail, which he has

been unable to accomplish for lack of witnesses whoi will

stand up in Court.

-2-

---

## Page 7

MI. 92-247

PCI and DONOHUE believed that through LAVERNE DUFFY,

U.S. pI

whom PCI described as an Assistant Attorney General?

they could make arrangements to have MARCELLO furnish

to the Department of Justice witnesses against HOFFA

who would stand up in Court in return for which the

Government would give MARCELLO a clean bill on his

deportation proceedings. Informant and DONOHUE be-

lieved that they could

make a sizable amount of money

"legally" by setting up such arrangements with DONOHUE

making the Government contacts and PCI making the

MARCELLO contacts.

on 3/20/62, PCI telephonically contacted SAM MARCELLO

from Milwaukee to the Jefferson Music Company, Gretna,

La., in order to determine whether or not SAM and his

family were still willing to pay for arrangements to

get the deportation proceedings killed. At this time

SAM told informant,

"Don't spend a buck on it.

Every-

thing is taken care of."

Informant then contacted

DONOHUE by long distance telephone on 3/22/62 and

advised him of this information, whereupon DONOHUE said

that it was still his best information that MARCELLO was

number

I to be deported.

e deporte st information

of the two, informant is more inclined to believe

that MARCELLO knows what the actual facts are,

, and

Informant further believes that because of his current

attitude as contrasted with his attitude of six months

ago, that the MARCELLOs have "spread the million

have he pread the®

dollars around in high Government circles" whereby

MARCELLO need no longer worry about deportation.

PCI has advised that he has discussed MARCELLO's status

further, after these

conversations, with FRANK PETER

BALISTRIERI, and the latter has said that he will try

to find out

MARCELLO's status. DONOHUE likewise will

keep PCI informed, and PCI has promised to keep this

office informed.

As indicated, Milwaukee is unable to evaluate the above

information for lack of knowledge as to MARCELLO'S

current status.

-3-

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