FEB 1 0 1975 "limited" losses in the closures of two banks in Milan and Geneva that Mr. Sindona once NYTimes cotrolled. Pope Paul VI and his finan- cial advisers are known to have turned to Mr. Sindona in the SD DONA ACCUSED nineteen-sixties, when they de- cided to sell 'off some Vatican investments. These assets in- cluded a sizable interets in an OF ITALIAN BRIBES intennatioal real estate com- pany, Societa Generale Im- mobiliare, that owned the Milan Official Investigates Watergate complex in Wash- ington. Charges Financier Paid quit as Bank Director Politicians for Favors Mr. Sindona resigned as di- rector of the New York-based Franklin National Bank last By PAUL HOF1VIANN September when he was unable Special to The New York Times to fulfill a promise to supply up to $50-million to the ROME, Feb. 9—Judicial au- troubled institution. Franklin thorities have 'opened an in- National has since become the quiry into allegations that European American Bank. Michelle Sindona, the Sicilian- The Italian financier, who born financier who for some was the largest shareholder in time controlled the Franklin the parent company that owned Franklin National, is under in- National Bank, bribed Italian vestigation by the Internal politicians to obtain illegal Revenue Service for allegedly favors, Milan court sources said having offered $1-million to today. the re-election campaign of A deputy state prosecutor, President Nixon in 1972. Guido Viola, yesterday ques- The new inquiry into alleged corruption of politicians in Italy tioned a Milan lawyer, Raffaele was prompted by exposes in two magazines, L'Espresso of Rome and Panorama of Milan. The two publications said that Mr. Sindona had subsi- dized politicians of the Chris- tian Democratic party, Italy's largest party, in an effort to secure favorable administrative • rulings affecting his banking operations. Huge Bribes Charged According to L'Espresso, huge bribes were paid to politi cians in Italian currency and were not recorded in the books of any of the many companies that Mr. Sindona controlled. Panorma alleged that Mr. Sin- dona had regularly paid $1.2,- million to the Christian Demo- cratic party beginning in 1972. Two investigative reporters, Associated Press Eugenio Scalfaro of L'Espresso Michele Sindona and Paolo Panerai of Panorma, have been questioned by judi- cial officials. Scarpitti, about charges that he Deputy Premier Ugo La was a go-between for Mr. Sin- Malfa, leader of the small Re- dona and political figures. publican party, which is allied with the Christian Democrats Prominent politicians are ex- in the Government, has pub- pected to be summoned soon by licly stated that when he the Milan official to answer served as Treasury minister in questions about dealings with 1973 he was subjected to pres- Mr. Sindona in what seems to sures of "every kind" to favor the Sindona group. Mr. La be developing into Italy's latest Malfa said the group had also corruption • scandal. promised to "do fantastic The 54-year-old financier, things for my party." whose empire of interlocking It is thought that the Deputy companies was at one time Premier will be questioned by estimated to be worth $450- the Milan public prosecutor in the Sindona case. million, is wanted by Italy on two arrest warrants charging REMEMBER THE NEEDIEST: fraudulent bankruptcy and re- lated offenses. Now in New York Mr. Sindona is now in New York. [Mr. Sindona could not be reached immediately at his New York hotel for comment on the allegations.] A team of lawyers is repre- senting the financier, who car- ries an Italian passport, in his contacts with investigating magistrates and with former business associates. The Vatican stated 10 days ago that a Roman Catholic Church institution had suffered .