If you have issues viewing or accessing this file contact us at NCJRS.gov. 1·' 0 R G A N I ZED Ie RIM F~ -~ .. ",.-;~ SECURITIES:··THEFTS AND FRAUDS ". ", "- ........... (Second Series) " -. '" ----== ::.:=:::::::==='::::='==l\~' C~~~=;r;;JJ==R S '. ',! JUl 2919'17 HEARIN GS ACQUl$rrKOl\;~:' BIllFORE TErlll " • PERMANENT SUBCO}LV1I1TEE ON INVESTIGATIONS OF THE COMMITTEE ON ,', GOVERNMENT OPERATIONS' UNITED STATES SENA.TE NINETY-THIHD CONGRESS FIRST SESSION ,'',\)IT TO SEOTION 4, SENATE RESOLUTION 46, 9aD OONGRESS SEPTE1IiBER 18 l\.l;'D 19, 1973 PART 2 , ,r't: ,_:; ( fflr tbe use of the Committee on GovernmentOperutions,' ... ",.l , '" :', ~ , "It if ORGANIZED CRIME SECURITIES: THEFTS AND FRAUDS (Second Series) HEARINGS BEFORE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS Oli' TilE COlIMITTEE ON GOVERNMENT OPE~ATIONS UNITED STATES SENATE NINETY-THIRD CONGRESS FIRST SESSION PURSUANT TO SECTION 4, SENA.'.rE RESOLUTION 46, 93D CONGRESS SEPTmIBIflR 18 A~D 19, 1073 PART 2 Printed for the use of the Committee on Government Operations u.s. GOVERNMEN'r. PRINTING OFFICE 22-719 WASHINGTON: 1973 For sale by (lie Superintendent of Doct1J11~Ilt.s, U.S. Government Printing Olfice Wllshlngton, D.C. 20402 - Price $1.30 CONTENTS , SECURITIES: THEFTS AND FRAUDS TestimonyManuel, of- Philip R_____________________________________________ Page123 Mastriana, Louis _____________ . ______________________________ 136, 176 Slater, David W____________ ._____________________________ 195 COMMITTEE ON GOVERNMEN'I' OPERATIONS Wilson, Philip lVL____________ ________________________________ 225 SAM J. ERVIN. JR., North Carolina, Ohairmalt JOHN L. McCLELLAN, At'kansas CHARLES H. PERCY, Illlnois EXHIBITS HENRY M, JACKSON, Washington JACOB K. JAVITS, New York Intro­ EDMUND S. MUSKIE, Maine EDWARD J. GURNEY, Florida duced Appears on page on page ABRAHAM RIBICOFF, Connecticut WILLIAM B. SAXBE, Ohio 26. Chart entitled IITypes of Spurious Assets Placed in Fraudu~ LEE METCALF, Montanll WILLIAM V. ROTH, JR., Delawllre lent Financial Statements" ____ ____ _ _ _ ________________ 125 JAMES B. ALLEN, Alabama BILL BROCK, Tennessee 126 27. Chart entitled "Types of Verification and Validation of LAWTON CHILES, Florida Listed Assets in Fmudulent Financial Statements" __ __ __ _ 127 127 SAM NUNN, Gcorg~a WALTER D. HUDDLESTON, Kentucky- 28. Chart entitled "'1'),1)OS of Entitie,; Created by use of Fraudu- lent Financial Statement/l _________________ ~__________ 128 128 ROBERT BLA7:/D SMITH, Jr., Ollie! Oounse~ alld StafJ Director 29. Charttimized" entitled _____ "Types___ ___ _ _of____ Entities _ __ __ _ _____________ and Individuals _____ Vic- _ __ 129 129 30. Bank records, correspondence, and other documents relating to the placement of stolen or counterfeit securities as PEUMANEN1' SUBCOMMIT'l'EE ON INVES1'IGATIOl'iS described in the testimony of Philip R. Manuel (Sept. l~ 1973) _______________________________________ ~___ 133 llENRY·1l:'. JACKSON, Washington, Ohalrman (*) 31. Court order conferring immunity and compelling testimony JOHN L. MCCLELLAN, ArkansilS CHAllLES H. PERCY, IIl1nois of witness Louis P. Mastriana _______ ~_________________ 136 137 SAM J. ERVIN, JR., North CaNllna JACOB K. JAVITS, New York 32. Copy of the constitution of the International Amalgamated ABRAHAM RIBICOFF, Congecticut EDWARD J. GURNEY, Florlda Services Employees Union of North America____________ 150 (*) JAMES B. ALl,EN, A.1llbnm.:. WILLIA1tf B. SAXBE, Ohio 33. Photo of Louis Ma:ltriana with others __ ~_________________ 150 (*) W AHrER D. HUDDLESTON, Kentucky 34. Copy of i'ldictment-Criminal No. 483-62, filed October 24, HOWA.IlD J. FELDMAN, Ohief 001l1lSCZ 1962, in Newark, N.J________________________________ 150 (*) DORO'.cHY FOSDICK, ProJessi01lU." Sta·fJ Director 35. Letter dated August 8, 1968 from Social Security Adminis- STUART iiI. STATLER, Ohie! OOUlIscl to tile Minority tration, Baltimore, Md., to Louis P. Mastriana_________ 150 (*) RUTH YOUNO WAT1', OhieJ Olerk 36. LetterlVlarlowe________ dated March __10, _ _________ 1971, to Neil __ ___ SOllnett __ _________ from Dr. _ _ _C. ____ R. 150 ROLAND L. CRANDALl" Staff Editor (*) 37. Louis 1-Iastriana account with F. 1. duPont_______________ 150 (*) (II) 38. The Fmnk lL Petrucci papers___________________________ 150 (*) 39. Copy of indictment-No. 70-290-CH.-CF dated October 23, 1068, in the Southern District of Florida________________ 150 (*) 40. Princeton Propertie~ papers_____________________________ HiO (*) 4l. Business card of Richard J. Hazp.ll_______________________ 150 (*) 42. SixMastriana____________ Bank of Sark, Ltd., _____________________________checks made out to Louis P. 150 (*) 43. Throe documents: One check for $15,000 on Bank of Sark, Ltd. j one orip;inal international check on Bank of Sark in the amount of $2,000 made out to Louis P. Mastriano.j one internl1tional check on Bank of Sark ill blank_________ 150 (*) 44. Papers re Dn.llas Bank &; Trust swindle with Bank of Sark checks and First Liberty Fund shares__________________ 150 (*) 45. Documents received from the Fir~t National Bank, Dunco.n, Okb. re Louis P. :;'vlastriana___________________________ 150 (*) 46. 1Iaynard-}'o.ge, Inc. jewelry purchase by Louis P. Mastriana_ HiO (*) 47. Docllments received from tllC' Citizens Bank &Trust Co., Chicago, Ill. 1'0: Bank of Sark swindle__________________ 150 (*) &;lJay ue found In the files of the subcommittee. (Ill) r IV v EXIIIBIT::-i-Contillued EXHIBIT:,) -Coutinued hUm· dur.,d Apppars Intra· rluced Apn~~r,; 011 I>:l~e oll1"1ge ou page 011 Ihtgt l 4f;. l1,)eumellt~ recf'ived from the Four qu('ens lIotd & Casino, Gi'. Copy of minutes of n1('C'ting between the hoard of directonl La~ Y('gas Nt'v. re Blink of Hark swindlc ________________ 1;'0 ( *) ::Il,d shareholder!" of .TlIglar H.A. held on Al1gn"t ii, 1'J70, in 4!l. l)u('ulllCnts ;('cPiv('d from the Cniversity State Bunk, Dpnton, Panama, tl1P purpose (,f ,,"!JL'l, Wtt.o.; t:1C' dec1ioll of new Tex. 1'e Bank of ~urk flwindle __________________________ 1;'0 ( *) nH'rnbers of the boprd of directors and offirialtl of the 5U. DOCUJllC'nts received from First National Bank, Dalla,;, Tex., !'o1'l)(lrntinl1. namply, El'll\'~t HhinwC'll, Im'~idC'nt; .Tohn re unpaid drafts on Bank of Sark checks made out to \\,pste!ltt, vice president; Jan'eil ItogerR, 8e,~retary, Abo BruniIT Airway~ and othcr" ____________________________ l;;n (*) ('liPPf'f{ tn tl1P llJinlltc,; i~ signatare card showLng Shillwell, ;'1. Zurich Internati~malletLrr of erec1i1 in favor of lntercopa :-lA, H,,!!('r~, ,resH'ot!, and Nhltt'r'" lI~lllC~ and iliglll'turp~_ ____ 211i ('<) Panama, with backup dncumr::nthtion and other letters of 09. ("jlY (If Tl,lex duted September 22, 10iO, ::lent by :;!atl'r'::l , f erpdiL _________ - __ ---------- --------------- ---- - -- -- 150 dirpct-kn j.:,. P1'ret, :::::J lal!l")'o of Banco Extl'l'i,,", l)allrtTnll. to 52. Copies of bills of exchange from Panmrul, Timber Hnd Inter- B,UII,'" Extprinr, .:'.Iudl'ir], allthorizin,2; thr tran"fp" of titles copa SA with backup dOculllentaticJIl ______ ---------- ---- l;iO (* ) "f n~"Pt~ of PnuHllla Plv1v()od Corp. e1; 111., t.hrough IIan>1 33. Blank' Bm{Jt of iSark cll"ck made out in the anlOunt of ~'iO!OOO; lord in t'xchall!!p for the lotter,; of crpdit. PAA 7 allli PAA 8. Bank of Hark check for :jilii,OOO and one blank InternatIOnal A:taehpd {<, tile T<,lex is a copy of a Jettpr datN{ Septetn­ Ballk of bark check ________________________ ----------- 150 ( *) l)('r 3, 1~l70, frftm Dr. Hans Frei to PprC'z Suian;(>l'f) of 54. Zurich lnternationalll'tter of credit in favor of lntercopa SA, IblH'() Exterior _., ________________ .. _________________ .__ 216 (*) Panama with harimp dOcHrnentation _________ ----------- 1;;0 l *) 70. C(Jp~- of !!linutp" of lllC(eting of board of dirl'ctor~ of Intprcopa, Document~ re L. & ::.\1. Assllciates and Diversified MineraL-; ,",.A. held Oil :::)c'JitemiJel' 2:3, l!l70 _______________ ._______ 21G t*) 55. l.jO ( *,1 Corp. loan iran~aetion~_ --- -- ------------- - - - --- - ----- 71. Copy of minutes of the ;;('con<1 meeting of the board of 5G. Ilec('ipt of HEA Air Expr(,8~ showing Rhipmcmi going fl:mn d ~'ector" of IIlt('rc"p~L (Protzman, Rogers, and f\later), L,p, ::'.Iastriaua, Dallas, Tex" to Harold Hothman, New d Itrd i')eptrmllf'l' 21), 1!l70, resnlvlng; io tr:msfer tq the York City________ ------------------------- ------- - -- 1ilO (*) .Jlglar S.A. account at the li'orrign Trade Bank. Panama 57, Loan COlll"litment from Harold Audsley, F~. Lauderd,ule $;iOO.OOO or any balallce frpm the Ipttcrs of credit PAA 7 Firwncial Inc., til ,JalllPs Decker, InternatlOnal Holdmg and 8, which resulted after making payments of ~.).5 million 150 .. *) to Hmnmac ________________________________________ ~ 216 (*) 58. Z\l;~~,Jfil~t-r~';;ati(~~:~( fptt(:;~- ~f ~~edit -iu-fu,:;;;;i Int~rn~ti;)u;'l 72. Cop~' of a prupo!'al by David W. Slatcr to Ernest and .Tim IIolding Corp,/Lnuis P.1Iastriana _____________________,- 150 ( *) IHhinwell and Hogrrs) dated 8eptmnber 25, H170 ontlining Autographed photo from Elliott Roo,evelt to LO\ll~ ;,\la~.er's plans and ideas relative to the Shinwell acqui- 59. Ill:1 (*) "iti.:!WL _ _ _ _ ____ __ __ _ _ ______ ___ _ _ _ _ _ _ ___ _ ____ ___ __ _ _ _ 216 (*) ::'.Ia,tl'inlUL-- -- _- ------ ------ -- - -- --- ---,-- --- -- - ~ -,- -- .\'ir GO. Copv of a check drawn on the Bank of Nova l:)cotia to, Elhott 73. Copy ,)f Telt,x from Weqtcott and Slater refer,; to two ranch Ifo!l~rve1t, signed by M. lVicLaney and cndor~ed, ' Pay to prorerties and acqui:<Wons by Bhinwell grollV aud also to the order of Louis )'In~trinnn." - - ---- ---- - ---- - -- --c ---.- 194: (*) the1laymcnt to Banco Ext('rior. Attached also are hand- 01. L(~ttcr dated May 21, 19G5, from Elliott Roosevelt to Loms writ\'~n notes by Slater relative to the ranch properties_ _ _ 216 (*) ::'.Iastriuna _____ -- _-- ------ ------------- ------- -.-- - -:-- 194: (*) 74. Copy c".' minute~ of meeting (written in Spanish with tran;;- (") Dasid Slater's handwritten not"s of contractual rc:latIOnshlp latior,\) of board of directors of Intercopn. S.A. on Octo- '-. bl'twecll himsC'lf and the t:lhinwell group (umngned and ber 2,1970__________________________________________ 216 (*) dutrd ~rpL.