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CHURCH COMMITTEE REPORTS
HEARINGS EXHIBITS'
EXHIBIT 1
~N:'CIAT. Xtn\'J('E ~TAFF: h ... (Inl(jT~, ~hf'filON AfIOll Pon:NrJA.J.
1·1t~:J·AIU:1l IIY ACT!":t' :~!' rOil lIu:rOi/AI. Mn~rn;11 uF HU1W:O;AI. (.'O:-'UIUiKWl'ft:Q AT
CllAULOnt;.tSV11.J,t:, \lKUIi'ilA l'\O\o'~;"lllt:l\ 1 Ar.;U ::, Ill.::
«('Ol\.'IIII;:;;'rIAI.1
J. 11Ifl"fulllrlirJl!
H""o:.:ni7.illl! thl' l'iL."hl III h'~:llir 111141 Ilt'IH't'rlllly IJI'fllt'~t, :l~!'-=I'lIIhlt·. 11l1l1114.·liliull
/Ill' t.:'ffl(·('II/1wnl j", ;Illwn'/I' ill III(' ffl'I'flfllll fIr /':11'1, dli;wlI. ,\",. ;t""~f' lit t1w..;c
richls l',·rh'{'h a I'1lil1pillj.! lIwar III rllllllllllU'ul:11 Ilrilll'iph'~ t'l·~;lI·;lillJ.: I'i;.:hl,.;. (not'·
110111:-:. al,,1 n',ln':"s II' Cl'il·\·alll,(,~. Tlll'r.. lIt'I' llln!"!> wlltl rl'lillilr 1'111l1ll'1Il11 111lr Ilft'!'l'nt
1:1\: !")':-;11'11I :llld ""111,1 11',\1' it tlown if Iltl'y '·Huhl. l'llfl'uxflllaltl,· ch'IIl:1nl!!'
nrl' b('illl: 111"1"'1'1'1111'11 10 all ·!t"·I'ls lI( L::1I\'1T1IIIIl'III a!oi wl'll ll!'l III pril'a14' hIlNilu'"",.
'·"Iil,; .. Ill" \'jllli'llI'" alill rill]" Ilf lill' "i'II'·... III" ('arl," ",'\"'lIlil's 11:1\"1' (0('\1",'1\
1111 a IIl'1rl' Illrl'atl'llill:': 1'1I111hiuatitlll IIf pl"lll" .. I-.: alld I'n~hlt'lII" whit'll a~(' ,.:nrl' III
('arry 11.0; wl,ll illfll fill' lP('\"l'lIlh's--·lild·'r I'sl':llaliu:: ill inl.·lIsifr IIl1d fn'flw'llfT.
\\,,,11 nr~alliz,'il jlrolp.. l ~rllllJl" 1111\'(' Illl"1wd tlll'lr alli'ulilllt ~Way fnlill th(' wllld·
illl-'l1u\\'l1 \'idll:1I11 W:lI·jl'·'OIII'S, •
'fn.I;,.\" Ihl',\" ;11"1' ,'IIIWf'rll"I) "'ilh r.. tllrl' .. 11·:III'J:il·!o1 .lin·d"'1 :II Ih,' 1·,'nnulllir
1'11"1ldl1r" ,I( Illi:'" 1·1I111lIr.\· wilh II:Irlil'lllar '·I.II,II:ll'i:", l'I"':lr,'" 1111' 1IIII't'll:11 HI'\··
"'1111' ~l'nin', i.I'., 1lIi'llllllls IIr fllllllplill:! 1:1\1'.": illl" 1I11111'1I:llj,p (IlIld,o; lll''''phullt!
QIIO 1Il1'OUU' [ax lluHIIOl)'l'f1'l fe«'1 il Ih'l'irolhl(' II) ha\'I' a " t ·i\'ililln flllld". a "ltt';ll'l'
fllllll" tlr ··"ltl'1"lIltlhl' hllul" iUlu whit-II Itl·""h· l'ulllll JII:II'I' lht'il' !l1'hl·h;l(·k 1:lX
Illflllit·S; lI"w I" l"l'lwl til IH.~ IIrIK'I'dnn':'" (ltrt'ak d""" lilt' l'I,dnul l;lx l'olll'I:li(l1l
l.lIadlill('I·y Illlll ('111"111':-.11)" "4,Jifoil tlllll'r~ 111 J,du ill 1114' dr,lrtt: allll, 1'lIlh,rsillJ:
It':'i~l,,t;ull trld,'" \11'/1/1/ II';':;llil.(· "c·U/l."W·;C·1l11111l... 'il.\ lIj,jt'dur ,.1"'11..... "
1 tal\l':-' I'o\l:"'icit'rahlt' llahl'lt' ""1 In l'I'l.·o;.wi"l.t· Ihal WI' lin' "ollfn'lIlt'l1 wilh
hl;:hly ul"J,:alli,.,I'd :11111 wPlI 1i1l;11l"I',1 J:1"1I11(ls hl'lIl CIII tlt·xll·".\ ilt~ 11111' Ihnll Ilr ~/I\'.
l·nllll~I'f. IIl1d lin·)' llrl' Illll\"iJl~ n'ry I'ard'ull>', :-It'I' II)' :-l11'1', [1,11,1\\"111;': wl·ll Inill
1,lullS.
!'mhnhly, IlJl'ir nllllll'1,:I" (Inr'~ a"ul ~Il lJ..Li.~ IIU!nl is .lcJ crUIll', illIll "\'l'lIttlilllr
d(,~trllr. Hill" ('IIUn' Ill:\. S>·~II·III. - .-
/I. nurl..·fl,.,II111" tlu/O/'''HlIi(JIl (fl/ll mi...llirlH"l lilltTiul l'il'r/:;cr- ,"iI"U
}llfUl'Illlil iUll tll'\l'h'II('ll lillfill;': lilt' Ilt'arill;':s Hr I hI' J'''U:llt· ('Ollllllillt'I' lIlI (,iu\"('
rll 11II'1l I t'I'I'l'lIliIlIlS I11Irilli! .\II/.:U!"\ I:I{,!I 1'~lahli'''llI'd Ilial \':II'joU'" 1'lllllrll\'I'I'~jal
IIr;'::lldzlllioIlS pn·....I·ult·11 11l'lllth'lllS I" IIII' 1IIII'rllai !t1'\"lIl1l' X'·fri':I'. TIt"!'I' ur:!aIIb.
alilllls l·nlt·J,.:flri:t.I'" a .. t':\ln'IIII:--I:-o fill Iht' ri:~lil ot· h·fI WI'I'I' III1I ill 1'''l1l1lliall''''
willI I,II\'I'llill HI'\I'IIIII' 1;1 WI', J1I1'1I1'UI/ll i"l1 \\ "I ... ,,1 ..11 III '\'l'i"1'1"I 1 I h:11 illdi\ idll:ll.>t
ill 'hi' f'lrl'lPIlJl "r flll, ..t· .,r;:allir.:r'ioll:-- lilt·" fa:\, rdunll' fl""'dill;:" IlPfffjUd! ill1'
IlllIl', 1'1' Ilhl 1101 lilc at all, ;l1thull~h lhl',r \\I'k't, 1l1t\'j"lIsl~ l·:\.JIl·IlIIiIlJ.: :--lllt:--lilUlial
UlIlilllllls Ill' fll1llls.
·i'lit'....,. IIt'al'itl;':", dt'llrl.\" iudkall'd :J llt'I'11 1,,1' IIII' 11l11'rllal HI'\'I·IIIIt· XI'nit'"
10 1I1'li\'l'ly "llll'I' illill a nlllllilialu'l' I,r',!-:ralll ,lin'I'led llluani Ilw"I' (·\lnmli ... 1
j:rUlllJ:'" alit! 1I1t'il· I,rilldlllll~. wllo, iI." IllI'il' :",lilll'll aUilllCh's ullil ;lC'lioll~, "unltl
he (·XIICI·lt·tlIH iJ.:llon'llr willfully \ifll:IIt' FI't1l'nll In:\ .. Ialllll''' .
. .1'·UIlt:1 iOlli/ll.: 111111('1' 1111' ..b~hlalll \ '''UIlIIls:-;iIlHt'l" {( "'llIjlliall1'1", a "111'1'lal rulnphalli'"
.L:rllull \\11:'" l'slallll:-.IlI·" III .\II:.: lI!"l I:Hill I" \"t'c"'hl' allil 1111011\":1:,' :111 lI\":lil"
hll' illf"I"H1;llillll IIr IlI":!lI11i"':lliulllo; lIllll i1ltli\'idll:ll ... 1'1'1I11101ill;':: 1':\I'rt~'lli"'l 'il·\\ ....
'UUlJ JllIilll....lIl'lIlj·.... 'J'Jw i,lt'lI'ilu':III"1I "I' 'IJ·;:;llli,I,;IJi"" ... "",1 iJII!i,idlwl, illl'IUl"'"
. ill I)u' Iln'::l'alli W1l:<: ",;11"1111 1"1':':'''1"11 10 tlu' 1,llilu.... 'I'''>· 1'1" p..lili'·a] 1",:",1111"1' ill
\oln'll: I"UIIII'I", il_~\:I~ lIiIT'-'k!\ III 1111' ll"lotl·il'1.\' ,1I1~ 111,· iudh';dllal ,'I' IIriii!lliz;.llioll
Illlli Ul.!· 'll""I,';IIo;lil)" 111;-,1 11l1Itlil"iI' 1I1i::111 n'~llll ir"lll Illt'i,· :It'li,ilij'~ :tllli Ihl;
lil,;t'lihCllld I/lal I hi:'" 1l111~lril'I~- \\"\lI~.f 11';141 III illljlliril':'" l'c';':;lnlill;: _1111"11' 1:1:\ ... Ialll:"':
AllollIl.')' Illlpurl:IIlI.I'lll1.. ilh·l':lllllll W;lS Ihl' ,11';:1"1'" Hf"iil'ohahiIiIY Ilml lI11;"Jn:'
• dh_Hljwl'O ~ld...~hl IIt'Il\'('Tilh'l.\" il\"oill 1Iil'ir I:lX n"lIo11 .. il,llilll·... - .. -- ~ •
l.illl:""111 was t'sf:t',li:odl,'I' \\'i'Il"Y'I""I";11 illn':o;'i).:;III\C· :,,"1 '"\\' '·I.rllf't-'·IIIl'flf H~I'fldl''
1 1~lll"h :1:'" FBI; :'C'CTI" :'1·1·\'i!'I·•.\1'111,\", :\"a\",\", :\Iililal"~' Illlt·lIia.:I'IWI·, lllUI
111'11:11'1 II Il'II1 or .11I~lkt·1 alltl \\il" :-\,'11;111' :11111 IIonlsI' 11I\l';"I1~aljH~= (·II11llllill ..I·....
Jty IlJliI' III II~f'IIlJIIlI.nll!oi lIllll "lin'II" JIII\I'S. fllllil'lJl. Jlilll'\·l'l"..;jn', illlllt'\lrt'llIi'l Jlll1lIkalillll:-
l Wl'n' 1"111''''''l'illl'll It I allll UI"::alli/.ali'lllS jl,jlll'tl :I~ il ~'"lln1.' Ilr :"'l','nrill:':
inrlll'lllaljllll fill Illalll'r:-: 11I\"1I1\·illa.: la~illtll' illl'1I11l(' Hr illllhitllllll", 1II"1hilh·:-: or
UI'J:illIil.;lllflIlS ha\ill:: HI' ."I'l·kill:: 1;1:" \'X"IUl't "'1I11l~. 'lIlll·idl'lllil.\· Ilf indi\'illtllll:'"
or I'XI'IlI!,1 ur:::llli:t.alll'll:'" prll\'i,lill:': li'Hllll·iill ~IIPI'ClrI III :... li\'i"l ;:1"111/1 .....
1\" illlllllll'f Illajnr pilrl HI' it:-: Ill'li\-il~, till':'" :~n' n',·il·\\I·d :11111 iufllnll:llioll rill'lli:",
hl'll 1111 111';':i1l1i/.aliull.. 1I111111lt·ir IH'illl'ill;ll~ wlt"I"\' 1'\"1111': Ilr::allinilillll.lWlilllIS
/tn' I/i·/I/Iilll!. 1.i";.""11 wil" T/'l"!IIlif":11 '",lp..... III "I/"U/1' lll:1I /111 '·''''''IlI·>tlll'' 11·,·h·
lIit'al ad"II'1' IIr rllliul-:s :11'1' i:"'''lIl'd dill' 1"la('1.: ur iuflll'lU:llillll.
J,iai"l1l1 \\:1": abn I""labli:-:III'II I" n'I'I·i\"l· ;11111/"1" cli"~"lllill:llc' illrlll"llialillll \\1111
1"i1'l·:lrlll:-:. 1IlII'IIi;':I'III·I'. IlIlt'rnal ~t"'llrit y, ~l'n i,'1' ,"'llll'I':-:, lllli.·I· Ill" 11Ih'ru:lliullal
01l1'ruliol1:"'. ~alitlllal .'11111]1\111'1' ('.'IIIt·I'. I'll ItIi " luf"l"lIllllillll, :11111 till' ,\IltHI :11111
"(~Ul!.!J~-,---- __ . _
1 Under criteria determined by the Committee in consultation with the Internal Revenue
Service and the Federal Bureau of Investigation, certain materials have been deleted from
these exhibits, some of which were previously classified to maintain the integrity of the
internal operating procedures of the agencles inVOlved, and to protect intelligence sources
and methods. Further deletions were made with respect to protecting the privacy of certain
individuals and groups. These deletions do not change the material content of these
exhibits.
(39)
40
1"1:. 1'1 ill~ wit II 77 lill·~. iell'1I1 i fil'd 1,,\' lit,' ('OII~I·I,:",..;j"'1:l1 I', Ifllilli 111'1', wi! llill It·."~
111nll lilli' ,1"1'" r 11 r'1i'f I hi ... ('Olllj,1i:IIH'I' (; "oUJl \\";1:-: ,' .. 1:11,IL"!Il'd. i lIf"l"Il,:ll in1l had
111'1'1\ IIlilll\l;llly !'lll11piktl ;nll\ l'''ll:""did:llt'd inlu 1,r":~1 l'r:"::lni/:lli"ll:lI :\lld .1:\\1\\
!lltliyidll:ll till' .... "IIlTI'lirly. 1IIl' (,!'tolll' 11111\\ liPII\\1l ;1.... : ~1U',·i:11 :-;'-1"\1"\' ~l:ln .
.\C1'S:C::-:~) Iln:-. 11,f1HlJ !ill'S (S,lIon illlliridllOiI-: :11111 :1,1I1l11 "t"l.:;II!iZ:I'illll<,;1 III
lit!, '"lllpO:-ililill IIf II"·:",, Iih·:-! ill'l' l;!,lIIIO da ... ··;jri'·tI 11<1"111111'111:-, III addilinll 111
f',lnldi":lI ..d IiII''''; 111\- Xl:lff h:I." ar:lihl.ilit.\' III ;1 "1I111l.1I1,'rizl'l1 prill!1I111 rllnli .. JlI·1!
h.r ;111111\11'1" ;'~"lll'Y. 'J'lti" li ..1iIl:! or 0:1111'· ... "r indj\ idll;ll" :ttld :,:ll'III'" \1 lin I"' .... '
1\ 111 ... ·;'1 III lIlt' ""I·lldl.\· IIr Ihi~ ""111111",1 ('III'n'ldly id'·1I1i!i.·:-; :1111'1111'1' 14:,1100 I'll·
lith,s 1111.'11' I:,,, \jol:ltinll:-; \\""llld :11'1"':11' prldl;lh1l'
{Inti! lh,' :-:l'('d:d ~t'nl('(' t'1:IIT \\;1" rlll'l\l:tliIJ'ol I"r'hlll:lI'\' 11, 1!17:..'. H~ :ldh'i!r
WIl-.; l'"",,itl"I"l'd ~"Ild·:·...('r'" :llld :II'I':ln'lllly ollr' 1"'''111•. ill III., Ji,'lrl \\1'1'" Itld
kllllwli"It:"·:II.I" llr Il~ IlIi<,;... jllll 1I1HI nlt.il'r·lin·s. Ill\I·... ,iL::llj'\· 111'1'''''11111'1 p:lrlkll'
\j'~lrll'l(~r111'\'\ ::I!\',_,'11,ltl\l; ... ~:~lli:)'.~·I\: ~~i':I,) ~'~~:;~l ~~~' I~:~. i:~;'II~;:i\I;;'ll,'t~: 1~1/1\~:i:,\,I.\" ;'~ t;IIII~.i I~\::I"
l"II'I;IIII't· llf lill' i-Ill·(·.... l i,L;';1t in' jlll'unn:di'JII fllrlli~IH'll 1',1' till' .... tail 10 di,.. lrid
11111,'('."
1'1:111', ;tr,' ill IIII' ll1ill 111 illlph'IIIl'll1 ('I'rlaill J't'(·"IIIIIIl'lld:lli,lIl .... flf a 1.""'lll
1·"IIIJIIII"t'i/.allnll fl·~l."'jhilily sI1ll1.\, ~lllll(' t11'~~I"I' 1,( 11ll'1·!t:lllll'.;di"ll ;11'1'1';]1' ... 11(·(·'· ... ·
S;ll.\' 1" 1'''111' \\'illl Iii.. :l('I'1I111111:tli'1I1 :llld qlLllllil,\ .,1' tLI!a l't'l"'in'd hy lIlt, ;-;Iarr
frllill ~"lIn'I'" I\ilhin :lllti n1l1~it11' Ill,' ~"I\'kl',
TIll' ~t;dt' ;\dill~ :l~ :, ('I'Ull;l! illl,'l1i;:I'w'I' ~;lllJ,'rillC: h,'lIlt\' (',011 .. "litl:l('·... d:I!:1
:1\:lil:!l,I" "ilhin 11i.~ ;Illd :111.\ nldaill:d'll' f1"1I1111'11I,'1' ill\'I",li,.::I'I\1' ,q' 1:11\ "IlI"I"",
Huon 1 lIC"lIt'i,':,. '\'·\·III1II1IaI,·1I dala ill Iltt' lil,',,,: :-.Ilj..;t::","!:-. 111l')".' :11'1' 1",,, 111:1)"1' .'al,··
':"l'il'''- "1 "lj.;;IPi'l:)\i"ll" ;llll\ illolhidll:d:-. id,'lllll\"d :,'-' \il.,.j~ \" In' \i"\;llill:: ,,'1·1\.
1'1:11 ... 1:11111.· .. ilWllltlilJ:.:' III!' 1:1 \ jillll:': al1l1 ILl.' illl.: 1,,·ql!iII'lllI"lll ... ,,1' II ... I HI'
T)p''',· "lJ.:':llli/,:lli"ll~ ;llId illdi\'jdll;rJ~ 1';111 1", 1-.:1'111'1';111,\ c;l!';'':'>li/,'d a~ (II \'1'1
lpnl 1;'"111',., 111",,1' \\llll ad\"lwal" ;Ill'\ 1'1";11'111'" ;/1'·"11. lin',l'"lll1,ill;': :l11l\,\I',lnlO"
I jnll of I'l"lwrl.': II";" I',,,·r,.i,,,, I Ii 1'1';1 d:o; fOlI' (111101:-. lltrnll:.:11 I '.~, l·o .... lal t'1'1"\ i."';
tn;II,l' Iltl'l'al ..... :1j..;;lill,,1 J',tI,Ji,' Idll"i:lls; 1'!:lll :Illd 1I1':'::llliz.· l'ri""ll rillls: (·II;::Il.:'I'
ill :l"lil'ilit,,<,; ill\'nh'iIiC il]l'l'.;I! ;1fTll1lllll:tljOtl n[ lirl':IJ'tll'" alit! :llllllltllli!iflll: /1;1'1'
1""'11 id"llIili"d :1" ,oI:lllllillJ: :ll1d .';lrl.l'ltlJ.: 1'111 ,,,I,.\j:Il'l.;illt:; a'lld. llt",,1' "'Ii" prillt
1"1,1 di"ll'ilt\l(" p\tl.li,·~"i"\IS :ltl\'I""llill;!: r,'\"lllli"lt 1l1'.:lill,1 lil,' l-:,,\'\'I"lltlll'lll tlf
llii" I'nllll! ".\'. 1.1 l'al,·j.;'1l"y (:!) l!tl'r" j ... ;11111011' ('1 id"lI",· "I' ;11'1 il'il i,·:· ill\'II!\'illC: .;"
·:tllt·d ,\,,,"·\·j,,I"111 l;r'~llIIS. wit" II." :l11";';"d III'a""(lIl r1.'Il11'II.... lr:lliHII', ,In.-uti,,I.·S
11.lih'·Lll"h inili;llt' \lnjl'IWp lln'l .!t, .. lylll'lil1n 111"\\11\1'1\ ;II'" lh"~" \\\1'1 1'111,Ii,I.\~
~:;:~:,1":;; ::1//:I,~: ~;;IiiI~~/.':I .~;:t'/1 r;l ::~'\ .1,\::II;: ::; ~ ;~';'II; 'i'::/I~:' .~ '~/~'I\:;.~:, ";~1::1:' .::;.; :~;:':11:
'II ~l:;l:IIJ,~,'~:
11\,:lh \\Ilil'll :lflr:1l'1 .'''"l1l :11101 11:11"01,,,... , ;lid ill 11i1IdlllL: ~:III' .,f 111'1':11111-': III Il'j"h
1I~'I."I'li":I,11 .\ 1111.'.•\ r;llt I "lr''!I ... 1", _."', I r:II"~ I" \ ',dOd., .. ' 1:"'1"1:1 ;1"d~ ","I III
\11'111:11,11 J/l dl'Ji;III~I' "I' ,· ... 1.. 1111:." :,-1;.11111':,- II,hln,J.: I" ." .. 01111"11'" ;11";-1, lIWlllllL:
'·I11111."oIi"lI alld n·"jsl:IlI".' In :,uIIIUlil,1 11.\ "IlI'flllr:t;.:jllL: 1["(.','1"1":--" ill lilt' .\IIII,·1!
1'''1'1'''''' I .. "111,'1' illln jllliH!Jf'.'" In "'llh\,j'rl Illi .. ll;llj"lI, :llld IJI'TI' i'" l'rirl~'Itl't· fr"lll
.-In ...!-di,·d d""Hllll'l\l", 11I;1! (1':11\,,(\',· "f !:t1'L:" :\\II"UI\\" 11( \1\"\\(0.\ I,. ;lilt! (r"tII
III,' l·s.\ ;11'.· lll'illl.: 11""11 In l'slal";~11 alld fll"J.::tlliz.. J:r,,"l'," willi lit,' "i.'\\' .If
'1\"'1 I Ill'''\\' (,f Ihi ... I-:'O"P l'IJl Il\'11 I ,
III, ('lIl'/r'/1( 'l/'I("'''")'I''~ '·lIl/il,l.'Ird '1.:111,,· '....11"'.;,,( ,';"'IT;l'(' (,'/'InT/'
(·lInl'IIII~·. ;1:; illr"llll:rli"l1 i~ n·I·I,ll·pd. iI i., !""\'il'\\l'(1 r"r indi(':lli"IIS nr lI11n·
\·\lllll'lialH.". sllt'll :I:.; I'rrJ'I\l't>\h 1');(lllplitllls. ,1I11'l"l"\llil'"~ lr) 1l1l'llJ:J\ili"11 In:::lllil:1
li'IIIS, Ihl' dl:llllWlilll..: "I funds I,.\" "\"111111 "l'J.:alli1.ali"l1l' Itl /1"11'('\"1\11" "IT:lld/.;I.
litlll~. Ill' ill'Ill." fir 1l111'1'!"Il'II',j i'l"lIl'I"; "1"'r;llilllt .... HIlI."j".· "r iI, Pll:lrl,·!, 10.1 1:1\
1'\\'1111'1 nrl..:;llliz:llillll": alld 1111' f:iillll"l' 10 Iii". :lIr,)itll' 1';_1,\' jl~""~IH" I.:ifl. and "Ill·
1,1".\1111'111 1:1\,,,.;. l'lIll1i":rli(lll~ :11111 I!IWllllll'llls <11'1' IT\jl'\\I't1 r"r illltJrlll:'i!illll"j' la\
....Inhl' Ill' It, ... j:-.I:IIII·P Ilil'I'PlIlI'llls.
\rli"11 ;111,\ Ilr Iltl' allll\'I' judi"alir'II" art' 1'1'1''-''111, Iii .. ,"I'arl"lll·,';. wll"n' I,,,~.... ild,·,
111'1' jlliliall'\l 1'1 :'-1'I,;r ITIIII'lI." art· lilt'll :1I1d 1:1\,·... 1';lid III ;IPI'I',,!'ri:lk j':J~j'~, ~ ...
,i:1I ~""lldl~' l'!u·t'!,s an' 111:1\1\' (\II' \In,,!'il,\(' \1111('\<1.\"1\'11 ~"\l\"<'('~ 'If W;\I.':\·s ~\\\I\
1';1 I'Ili 11:'::'-.
If Ih,· !"I'I·i.'w :Inti \'\':llllalinll ."" \\arra1l1 .... , 1,,·,lill"lIl lin:IIll'i:.l :Inti 1:1\ t!:II:1 jl'
Ir:Ill'·lI\ill"1\ 1'1 1111' 1\islri,'l .\lltlil. Illll'lli~'·lI'·I·. tI.·· 1'"ll,',li"n Iljl" ... i.'11, ~irll"l'
11" ... 11 (,I' III.' jUfll l'IIl:lliOill is t·la,..... i1it'd, if 1':11111'" 1'1; rt'jlr"dlll't'd Ill' 1rall"'JIIill"d i.,
11.1' r"'-111 n·'·I'i\'j'd. :llId, fir IH·\·t'~"il~'. lilt!.... I II" "S"IT"I,," ;'I1t1 1·:II':'-l1liz'·11. Th,'~'"
l't,r,'n:l!-.: 111:l~ I"l'lak III Slll'dlll"' indi\'idu:lb, or,L;':lldz:llilllls. or /.:1'0111',<'; or
illrli\ idll:l1~
:--:lIoulll IIIIH'r :1/..:"11I'11's "I'sin' informalioll n'l:llh·,· 10 lax ..I'lurn ... Ill' ill\·{'sliC:;I.
'illll-':, 111I'y 11l'1~1 1'I"11I('s( il IllrollJ:11 flUidal f'!l;llllll'ls nll~l'r\'jlll: Ihl' .JiSf'!"slll'l'
"1"",·... 1111'1''''
III :UI.litl"H, il1r"nll:lliol\ :ltl\lln'IH!S I'll la~ qrik\· :11\11 n'~i~t:II"'\' 11\'l\"'1Ilf'l\1" i!'
""'111 I" di-.:ll'il'ls anl','Il'cl, ('lId"r 1'1·.·...\,111 l,r'I(·.'tlll""S. /111' ""(',·i\·illl.: distrids c!1'1"r.
1I1i1l.· ... Itl \\Iwl I'XIl'1I1 1111' illrnrlll:tlilill is lIsl'd.
'1'1\1' ~':I{r :,\"'" illl"rlHs 111I' ;'\;llinll;II '11"1"" i'rob'din' !'n'L:I;llIlS l\r:llw!l ,.r
J-':wilitil's ~JaIl:lC'·IIll'I.r ;11 .. 1 lil .. :"alinll:ll 1111;1'(' C'ooroliu:ll'Il' ill Ill,' Inldli/.:',·rlf·.'
Ilid~illll \\11"11 /111'1'., :11'1' illllil'aijoll" .. r I'rnl"sls til' .11·lllllll,":lr:lli"ll~ \\hkll \\"fluld
l't· :1 1I, ...·al 10 11I'.'rll:11 H,·\.'IIIII' i'1t'lui!'"s.
)-;":11111,1,'" III' ..t'\·"faJ 1."Il1's I,r :--:1"'I·j;rl ~,'n i,'" ~1:lrr r"f.'l"I':t1s 1t;1\'" I t'll ,'lI/I.
d"II""'d :Illt! il1I'lntll'II :IS 1':\llilJil<,; ill :1 p:ld,:u:.· "r :11l:rdI1l1l'uls. 'I'h,'"p ho\\, 1111'
1'1'\1'1111" I"I-.::--ihilili ...... Iltal ,·"i."t ill 1.. ,111 /111' :llIdii allt! l'olll'l'lj"ll lidds. illl'lllt\.
ill/..: illl'urill', /..:iH :llltl f'lIlJllnrUll'llt laxI's. {l';,,!Iihil l~l.
41
1'111' p:Il'l,,'! ;1\.'-11 1'0111:1111" :-;:llll)ll\·" Ill' 11\;\I,'ri;l!" \'1I1di"lil'iI :111l] 1'11"11l:\1,',j 1',1
mf'llil",r ..., ,,[ till' 1:1\ ~lril,I' :11111 \,1·"j"1:11I1"l' 1I10\I'/l11'11!,,_ '1'" :-:\1"\\ 11,,· Ik::I'I'I' lOr
~"I'lii:-lil-.lti"ll 111""" 11I"ll'lll"llI" 11;[\" r':Il"lH'iI. till' Iii-I (·,llil,il ill Ihi'-- 1':1<,1.:11:"
i" a ""III',,,I;I<"('d J"111 "II n 11:l!i""1:1! <I'[IYI'llji"rl 1'1" ;1,livj"t", r"I"'11i 111·\<1
III .\jl~II"1 :11 J\.:III .... :I..; \\jlll Jlltl'I'II:t! HI'\'I'111I1' ~('t"I ill' :IS 1111'ir ]11'1111
p[ al1"Jllj"'l
ll',!'II(tJili'l/ !I,I"/""'/IIIII/I'(II!'lllifil/'f!/:':/)","!n/,";f'Ti,'/' ,.....'Iorr
TlIl' 1111'~ of 1111' :-:I'I'I'jl't' :-:1;11"1" ('1'1l1:1ill \',1,,1 :111:1>1111(:-: of ill["rlll;ll it Ill'
!11'll:lillilll: t" 1.\1"'<; i)llli\idll:Jls :111,] 1'I';"::luiz;lli'0I1"'d' ITil".;! , TI,i .... 111:lll'ri:il is
!I"'I'h'I'd 1111 :t d;I.I'I',\',]:I.1 h:l:-i" ;llld it 11;1 .... hl"l'll il'li,,'~"iI,II' 1,,1' lb,' ~I;JJI' I" 1;""1'
pan' ",illl Illis ;":1'11",1 Ill, .\-; :1 1"",1111. alllil'IIl-,:1l lil,'" 11:1\ I' 1'1'1'11 1,·.1 ;!l,ii"ll1l1, 1]Il'J"I' is
a )-:1"1':lf 11Jo:ll lIe 111:ltl'l"i:11 wlddL lias !Lui Ill'l'll ,'\':l!ll:lll'(1, :11111 "IIII.""·qlll·tLll.\' Ila:-, 11 III
1>('1'11 J"l'fl'l"l"l'd I .. 111'1,1,,]li('I''''
Tlib 1,I:l!I'l'i:l! i ... :1\;li!:II,J1' III r1'\'I'IIlII' ;1L:,'1l1s, ."1'(" i:11 :1;':1'111-;, :11101 n'\"'llll!' "Ilj·
I'el'" \1'III'I,illl-:" II)) il:di\idtl:ll" lOr ()1';::llIil.:lli'>I1~ illl"d"'d III) I!il,,,,']l'il nr l'iL:lil \l'illl:
ItlU\'\'llll'II1S, lllll' I,r 1111' 1'l"l'ldt'111S 11:1-; 1"'('11 11,:11 1':\;III,illill:': 1"'1'''''11110'1 :1)'1' llid
;111 an' Ilf t II" ~tarr. il" Illis"i"'1 III" "1"':',11 i'"l, .\ .... "1;11. Ii 1"'f"I"', Illl' I ill'" 11:1" 11"\1
1"'11il' I\'l"'ll Ii. ,I,) 1','r."""lil) .... ll'lllId Ill' Jlill,\ ild''1'lllI'd lo!' 1111' 1';I,i ... I,'111·1' ,,( 111(' ~lall
:lll'l 1111' lYI'" l't' 1111,,1111:lt j"t1 :I\':\il:l-ldl'.
:'11'I\lld :111 :1;'::"111 ,,)" 1"1'\'I'Jl\lI' ,oflin'j" III' :1 ..."il:IWd :1 1':1,.,' 1':i11ill:': illll' "III' "I IIIl'
l":l"'~I'ri,',,; di,I;"\l,~,,;,'d. III' .... 11 .. ,1111 1""1'\ [rt ... I .. IIll't"'1 ;111 il"I'lirl I" 1111' :-"'1\
ill> :-:1:1f!" I'l -""1' if r]II'I"" i" :1I1\" iJif,-rI11dl illil ",\ lil,' "I" r 11:11 l"lild I" 111:11
\\11111,] ;Iid ill Illl'il' ill\'I':--til::I!'ill!1. '1111' 111(' "l'llld· 1'''111:lin lill:"l"i:1I ill:"l"lIl:l!i'lll I"
:1 ... "i.,1. ill :111 :llIdil "I" jl ('''Hid 1", ;1 1'1111'1'111 :11).11"'"'' 1" :I'."i·.t III ,'1"";111-:;1
'1'11,\ III" Till. 11l'llliril'~ 4':111 l,y 111:li] "I" 11']"1'1'''"1' :Illd <li'T' ll',j ! .. 1)11'
"ddr,'""" "I' (,·It'plt""I' Inllnlll'!' SIII.\\,11 (Ill 111,- Ir:lm::llil!:ll Idlt'l" (:-0"1' )';\)Iiliil #,1
in :1(lal"l,IJlf'lIl I,
:'Ibn\' pC III.· lill- .... :11'1' l'xlrf'l1W)\' \'(l!\llllitlIOilS 1'1ItLl:lilli'H: Ij,-I:lih'" lill:llll'jn) illfl'r,
lll:llilOl;, In SIW]1 ill..;I:lIlI'.'s it Illa'y III' l,rt'll'l":ddi' I" ]':1\1' 11('lil 1"'r,""'lll('1 ('t'lIl!' ill
:\1111 f'.'\!l·:ld lli'l'lilll'lll d:lla (l""lll 111,' (':1 ....1· liI,'. Inll'I'\'I'I", dill' In 111" 11:1"""li,'d
1I:11l1r,' II( lJI(' Ii],''', il \\'011111 1", Ilt'l'\''''':lry to nlol:lil' :I~l·,'rd ,"lllll"il.\ ,'14':11':1111'(' fql
":1(,11 ('11Ilol"yl'(' d(·"irill:':; I" 111:1\;1' .... \Ii'li ;111 i)1"llI,,'1 il'll. ~illl t' .... "111'· Ilf Ill" lill·s :11"1'
Tnp ~"I'rd alld tlll' d"gol'l'I' (If 1'1(':11':1111'(':'; s]j(1)!ld I", I,,'pt at :1 1l1il1i1l11l111. '~l:llr
Illf'1Ll1ll't'S Willi '1'''1' ~I'I'I'''L 1'!t':ll'i\Jl('P l'an 1''\lr:1l'1 :llId 1':II,"ll1iz" :111,\' l"'l'lilll'lll d:II:1
IIf Ihis Ilal lIn' ir 1lf'l'lli'd,
',"Ilill' lip' Slll'('i:ll :-;"1'\'if'I' ~ln(r is 1''''';('lllinny :111 illr,lrtll:lli'ltl l-::lllll'IilL~ :l1ld
di"'-:1'11Iill:llillll il "llllllld 11101 il.. "IIII"idl'I"'d ;1 11111'-11':1'\ ~11'I·('r, I,'idd
l'j'r"IOIIII,,1 I", :1l1\·i""l,d In ill' ;111'1'1 fpr Illt'''I'JII:I!i''ll :llld 11;11:( 1''''II'prllill:'::
IIH'~t' III:'::OII!iZ:llillll" alld illdi\'illll:ll" illdil':rlill:': lil!"\ l\illfllll.1 i::lllll"t' "I' \'ild:I!I'
1:1\ ..;I"rlll"". TId" :\11<11'11 n· .... lJIII"( I' \1'''11111 "]i('ll :111 i·II",'l il'I' 1\1",11:1.\' j"llIllllllIlIW;I'
liOH 1,11;11\111'1 \1 lli,.]l <':\11 Ii" 111l1"11 I" :1111' 11111'1'11,1\ 1i"I, (1Ill' :-\1'I'\'il'l' :It'lil,n,''
11"lnin'd, 'I'll;" i" l' .... pl",iall,\ "lwt'l' ':-11"11 i'II'''llll:lli''ll \lo1llil 1'1'1':-''' di,,-
ll'i.'t ILl" rI'L.:"it>ll:lllill'"" l"'rlldllilll: 1'(IU!'dill:1Ii"n \Iilll ,,11
"
'1' .oI:il'I'~
Furllll'I", lil'\d ]'/'1'''1111111'1 ,,11(llllci :11"" 1,(, :lh'rl 1" 1'1"1111;11:11 \ i"]:1I illlll; Il1lj1'l' lhall
l!ln",' il1nilrirll: IIII' 1:1\ .,,1:111111':-;, Tid,..; l'OII)d illl'\ll,h· ;1111' illl!i";IIi."1L "I' ;1"1" lOr
\ il,](')ll·P,· f:11"iril';lli'lll II( .ollil·i;'ll dO("lIIIIl'lll", I \ii":I!" :,;,::, ill";1 1;,,\ "rJllli,'111 ,.tlii·i:I]."
til' pllil'l'r", I,ll', Sll,·11 illfprlllali"'1 ..;ll'11J!d :1)"" 1,(' 1'],:11IIII,II'i! 101111' :-;':Irr "u till')'
I'all t'lIl1l'dlll:ll(' willl 1111' :lpproJll"i:d(' :1l.:I'I\I·,\,
\', ('t)Il('II/.~i(lli lIllI/ "i \'I'II~si()H
It Ii:l" IlO\\" hl'I'1L di"t'll""l',j ill Sl'llll' t!,'I:lil hOI\' 11I1" ~I'I'\ jl-(' ~1:Lrf :11'1 i\'il.\'
flllll'l i"ll", \\!I;ll il..; 1'111'1111'4' i". ;11"\ li"\\ l'III"'1 ill'ly lilt· ;11111 ":1.<;"'" it :'~I'lIl'r:!t" ..
;\14' 11Ii!ii',l'd 1,.\' Ill" :-;"I\'i,·c. '1'11(' 1l1;1;'::lIiII1lli' :tild IHdl'lJ1i;1I lOr llli" hl'ilil,\ i" illl'
!JI"!'''''II'I' .\ 1"4"'l'lll illll'rll:l\ ;Jlldil II( Ih,' :-01"'{"i:11 ;-;,'llil'I' ~1;ln (\111.1 ,"I1!'!"'I'(" Ill\'
1'''I1<]II"ioll Iha! thi" ('l1wlitlll Idll'l"S Jlil:1l Jlot"llll:11 :1":1 d.'ll'rrl'lll ill ,'I 'pill;': with
wid""pn':111 1:1\ ri(lliLlil'lI'i :->llIllL"'HTd ]I.\' oll·lili..;! l-:11>lll'"
1'I'I'I:!illh" Illtl'l'l1:il HI'\'I'1\III' ~,'ryjl'" "lli,'"I',~ ;1111\ :1:,Yld,,, Call Old,\' II" "01 111111'11
I'll tlwil' (>\1'11 ill 11',\ ill~ Itll'olll'd 1'1'0111. i'I\'l',-di:';;II,' Ill" 1':\:llIdll" 111l"'I' "ll.::rldz:"itoll~'
:10.1 illoli\'idll:d,", 111\11 th,·dll;.:h in ... idilill:-: 1l11'llI'Hi~ )1:\1[' l'"ll:rllllr:lh'd I" 1'111'111 :1
l"1'\"ldllli"II,IT'.1 (,q"'I', \\llkh \1' :1111'\\TI\ 111 d"ll'I'1J1 1:1';ldll:lll.\, \\ill ,1"'l'OIlll4' \\t'll
1',,1,,1,li"hl'l! hl'("I'I' l'I'("lllllillJ: :lppan'ILI
l'I'lll:1!!'; r]II' 0111.\' \\':1\ In ",;ltd':Ll :I !:,'\ rl'lll'l1i"1\ J.-:1'llwlh 01' t!llll'('1tlt'ld ill tlllr
"",'\1'1,\' j" fill" !III' !1l1i'l"11:d 1t"I' 11111' ~"I\i,'.'. \\ 1111'1\ 1I"1\ li:I'~ 'l,i ... ;-':'1"',i:l1 ~"n i"t,
<o..:':11y ;11'I'i''''''i In ri'\inl,!t· i'dl'lli;'I''''P illr"I"III:lli"Il, 10 1''"1'''''' 1110' I,:"" 1"'1"1' 1,,1,[11
:111.' rrilll:r- ,·tI"IIH'1I1 hI nnr n:dilln \\'llq :H\n..-:t!I' lr:n;n.L:' !l,1l\1\11\\1" prl'''I'nl ".\' .... 11'111
Tlii v l'l'I''''ufaliflll ~I(I'Illd l.:in' .\'Ill! ,""1111' :lddililll1;l\ i 11"; i;.:111 ;1110 1Ill' (lIl"1l1alioll
all,1 1',,1"1l1i:1I rill' :1 ('1'111r;11 ill!I,lli:':"III'I' I.::lliinilll:; (HI'ilil\' o( lid" llallln', IiOpl"
fllll.\. it li:l"; al"" I'll("nllr:tl-,:I'd .\IIIl In Illi'l!-; :i1'"llt "\\!L;ll i,,'11I hI' dlOlll"~"
,\ 1l1"1lC:: I Ill' ;11t.'l'll;1 I i I"('S 1n h" t'lln..;id,'r.'d :1 LH111i~"ll"~PII
l' ... illl: II .. , ~I-*d:,~ s.'rlj"" :-:1:11"( ;1<.; :1 Il",'I"'lII";. 1I"'llld il 1,1' 1\1':1,'11.·;,1 1,\
...."1.'.'" :1 lind Ii-<l':':I'Mot'.'" :IPltrI1al·!t II."illl.: "I lil,I' (1'~I'4' ""IlI'l'ld ," \\ illl '-1'1'I'i:ll
t'I",'h:l~is ,* nill1iual null' pnt:-:I'I'lWittH"i llll1ln 'I'llit' 11'.. ill cqrrPl:II i"ll wilh
Tlll!' :!Ii
42
EXHIBIT 2
" ."
Cl"':Plr:lo . "
.A~s rstant CO""';S$ ;0:1'2r '(CoClpliuncc)
InteT.oal ;:cvcnuc St~r.\'ice
.'
to:' Director, Fcdc.~l 1ureau of Invest1Eatlon
Dcpa:,tOlcn t: of JU5.Lic.c \ ~
Crom:
l~cct: ~~qucsC to be r},ac~J on Di~semi~ation LiGt
ALtcation: Special A[;c:nt Patrick D. r1Jtn~_rn
Par your in[on~~tion I !lavc formed 3 c0~~itl:cc of ~c~c of o~r
CO:llpli ,J.11CC p~ai'Jc La ...... ;:.,thQl· d"t ..... J.n~ r(,co;;"~":1c:rd act:o;lS to be: t.-,~;('n
'Tilhill the Iiltcrn<1.1 E~v(·r.uc Scrv~.cc rcl.,J.t:'nG to v2.riou:; (1:;:"':-1I1i.::::.t:icp.'s
of l'rcdc.;di1'1f1tl",; cl~~ ..>i.dcf'.t or cXl-;:'~f.~iGt n:1t.L:t"2 J,\.o!cr p~oplC' ~'::"::' li~0~;\,;ly
i.(.knti[j_cC: ~(h.l~h t:1(::,c 0;'·.~2n:_;.~tic,n~;.
Th~ r:rn,-'p J. 1",,-'.,;(: f(!J~;:,cd i!:.' n;:;.~~co the J.Ct:iV1.:::.t:: Orf,.Jnf7:t1U.C':l~
COiJ'..ld.lLcc .::n(~ L; llCJ~'" t\.\ll<':i:j~llin[; ".ri.rh Ur. PaLl). If. \;(it:~~:": ...::~ c;J:ll.:-:::"'::;I.
I ,~l.l:. ;,.;;]"';~Ci,:l.LC i...h:s L(',;~-:;itL''::~ .}JC'i~::; f,l;-lcc,j l';l YG\:~': ll;,f:;'~""l ;;~~i(n
llr,L fo; ;.l~fC>'o.-l:,;;.t:j,c'n ',';\:.:11 TCl..:t·~: ~o U1.C l:;p·:':; o:::~',i:~:;.~.\l. .:..r.-.:'.
r,H'ntio;).'ci ;l~'.r)\"(~ .lll<: ~;·~o~\l(. .:1:,[;oc.\;;lc~i ';ii.th t~lU:I~ /,1.:. llli.") t;.i:;" \,'e ;~ ~\::'rt
. f:ilc C;,:.l<l 0:'.1. :':hc o'_'L,".~Ii.~;1l.:.i(;;1S li:;t:~~ un the JcL':'.ci·,;;lcnt: to t:1~.s
l1~~ol:ilndum.
It. ir:: ~1'r'(J;:r.:n:.: '..·;~t ::-:!f11Li.:J,':."!1 re:c;;.:e:sts for ~!lf:on:,.~..:iC';1 OJ:
oIT':,1l:i.:'·;:ti0:)J .-:;~.:. ;;'·d(:-:"·,i.::i,;:tl:.,' \:ill b~ Ull;:lC (l!; ~h::';:; COr'~;I'-t.:~,~'~ p)".'OC(\~j:;
. vi.th itG Llssi~~ncllcnt:.
1 \-1J.J.1 .7.ppr('c~t~t~ :'':::'l1r [i.?~}ro'.'a1 of this hd ti.ai. t·(,CP~'~;':" ~'.\'.~: ..--;~;:~
thnt (.n)· r\:)l.:l tl-.:n~::,~.~'...:~,:l b~ d::::".:\'-:;rcd '':0 t:IC ,,\::tc:lti.(1;"\ ()-;: !;::~ \~~'~.r;:~L,
R00;n ~5GjJ I:);,:c!:1l0.1 1~':·vC.'ltl,~ Sc!.'v;.cc, 112.1 C.~};lsLi.tut:i(j4'" ........ c..n·.I(·.~ .".• 1,.,
lla~1d.l1[;ton, D. C. . ~
ts~i~tarit Co~~i~~ioner
(Compl i,.•,ee)
l~tt."H:·lln~~nt
Li.::;t of. OJ..·J,;,"m~~J.:i;ns
43
DATE:
:1
1
Jr •.d ?·
....-..J / "/l
Ere nnau J
I~:TL:':.:~r.L :'LY:-:~::.r:~ S;::::'VICl~ (If.S)
IEV;'~:;'l':C:.~;'flO;;:"; 0;,' FS'i7 L::';/T f~l\D E;:rfnL":.tI3T
O~G!,l~J.~.C~'iO::~ fll~D £r:DIVi:JUilLS
(","
.. ""'1 1''''
D. J.
".:: <.' ~ ,,';" ~< "
U~ITI:i 1 STxrES GO \ •. IZ~~I[:-;T
Jvlen7orandu7n
iO l:r.
In':O::L~~'.tioil h:1~; been received f:-o:n ;~r. P:lul II. ytrir-;h'i: 0
I!~S t!.;:·~ r:-:s, ::~ ~ rcsL:.lt of \,'11~tc UOl:se nn~ Congrc:Jsional p"~'C'-~:;ll'
1_~~ O)·ll)~.\-;:i!lG on ;1, prO~~l'::iJ loo:~j_ll!; 'l:07::1.l.4 c! t:'l.:-: :'..llc.i GUll In\'! viol~~\.:io
on tl;'~ ~):'_)': of l;O'\"! L-'.};--C, bl:.~i: C):·~~..cnist, ,.ad Yijlite c;~'t::'·cn:·,.i:-jt
Ol·G~-'.r:~.:':::-"':'::'O;lS =":11';; iac;i.v:;_(;~l<;,ls cO;l1iecl.:.cd thCl·C\"lit~l. htt;lC;~CU lc\.·~(
11'0:.:' 'C'.:~ tS:<~G'L~,n: COj:::'-lj";';::;ioncl~ D.)ilc:ld E:tccl1 l'{~(Il\Cst~J ti:~~\, i;(~' b(.;:
pL',c,_'< L':: :,'jj: c.1~.~·SC:::iL2.·"',;"Oll 101'_._" .nUl.liJc~· .o~ t~lC~~ Ci'b:'lni;'::ltio~;:J
Ur:i--:~).~ ::.j;vcSl:i[;~'.·i:.:i.on by U~.
1'.'I'i[';;~'~ r;.civisc:c1 tt~at ~\3 ~ rcsul~' of cori.SlcJc),·~blc lI:L'C;:i;;Ul"
f'~(.'!~ C!--)::'~,:e~,:::: ;:11\:; tlJ8" U'l)"LG EOl1::-;C. J:l~S lt~,s fO~~l0.cJ ;-l. CO"',:;lit\:r~c :~ ....
ll,.:j j;~-., tL-:~'tCJ::: 1:1;,0'\'/11 i;S tl1e J:c"~:;.IJ;:":jts ()J'r:~n::':~~\'~lol1~; C,,);;-:;;i.~,::;(,~7
'\,::C:::C '::::::,;.'.:i.cl1. .~,s to colJ.0ct ::ill n-::~'l.ijlcnt :'~;~:t:or;l~lt:;J)ll ;'-0 I.:;(:~"rl'-: "';.. ..
t;;>l',"L(;~,r,' ;:2':.' Lcr"~~J1d c;':~:::Cr:1iS't o::"Gt;nit;~t:icl:;';; ~.'J \','cl.{ ~'J ji:(;l·:;:.~!\~;
jr·c:'..:.jJ;:·:·~:::":: CCl;:~.:.~c::ec1 tl:cl'c\','itl1. :;nci tl~C}'';:':~1itc~' j.lli~:i.~:"~C i~"c.i(;
~.n'.'c~:-(~r·::"fio:-::j ~411(~ ;:,ucii-t~3 'of tl\C3C: p.-roups r:l~U ir.r.li.vi(;~\~:ls l()oj~,~,;',,~
t(J',.';~l·(i t.~;'J(:(l\'O::'.';,I~~ i.:~:-= vj.Ol:lt:LOll~;.. and viol:1~cions of ti~() Gun C~...J:1'L:"·V.
!~ct ci J.~--iG86 IE l~tt;;.cll(~d lcttc)~ B:~con rC\1t~csi-.:: th;:t il10 1.10 pl;~cl:(
O~l c;3,~~:::..::.;:~1l~,·~io:l. 10;; Ol~:' investj.~,:i.tJ.vo rCr()::.~~~s invol\.'i:~I~ "/'7. o:'t:,'1,;1'
z;:t~O:-:i. j;'::' r:_·;'T",(·~~ts t;(;":t St~2j1 ('i:::"":,('j'1~~ll~~tj.()il I)~ 1.';;'::'(;(' to 7.::;)
bC;':'(;"!:~'_::.:tC:::"':--j, ,.G" ::"~():j: ;·.·'~·~·u:,~·.:j.O!~ i.;l: • .!...'~~l~.l H. ".l.':'l.".,:~.
I~ r8\'~.c-';1 of tJ:.C list of OJ:r;.1lii7,;1,t:loi,ls cnclo';cci ',F'.- t:1
:3:~C(lr.l 1 ~ lct·t.C:1: i~~Li:~.C;:·L('~ tho Ol·f~~~niz~t:i..of;s arc l:l'ir,:::r 11:/ c:':: it
!~-,:,:".: j",:,:,::[.~. bJ.:-:ci: c;;t:;'.:c~... :;.:Jt or \"llite c:..:'ir(:;;~i!;t ll;:,:"~U:'~c. n~ny'of tL.J
o;::g;:-.!,~;_;.:;~~~~;lO~::; ~:::--5\;e(j nave not becn iavcCitibl:' tcd oy u'J;
A CO:lc~l:tr~tc:1 l'rG[:)'~la of ttl~ Jl~~;~~C, j,f p~opcl'l~'
i.::I)~ .::~~c\.:, :,:~:t:',.:.}(; (~,',' ...·,l ;; b:.'..(i'"J~~) <..lir;.::..;~.(;r·nt cl(,',:':ll-:~. Ti:~:.:
;~C';:~ (": ;.' :"(l:" v:~,'>'(:t:\;. 1.\) il~;I.·C ~L1~:i.,;~',I:)' (!~~~:;'jCi'lil':\~LCJ ·~o \..~~;::;
':·c;.':':"~":,:; :::1 ;',:::::: r.. ...' tr~(j (j;'.·f:;;r.~~::::,.t .. ~;::,:: l.:""~,:>tCll~ J.:.~ ic feLt "til:~l:
.~ -- ... Ir, -.""\J r- ';""'.','"4
;" ~:),:.
~, ". ,'-:-'
I, ...
1 - !,:r ~ c.r:.
1
1
, \. . ~ \. :' ::
1
~'~Cl~10r~ !!du~ D. J. BLenn~n,Jr.', to
1:1'. ',";. C. Sulliv:'!ll
RE: Il~T!:::!~;\~ r: L'/:c::U;, S:C;l~',rI CE (If.S)
n~n:.C;T:[G:'::;.'.'O:;S OF ].:"Ei7 LI.:71' /'.::D E}""TP.EJHST
OHG!,t:LZ::nOl,S U{D Il,DI VIDUJ\LS
.... ::.
I>CTro:r:
1. If :lp)Jroved it \':ill bo explained to 1'.s,;is1:ant
CO:::Jr.i~:"io:,c\· l'::COll Ly Li:;ison tbat sover:ll of tho or8":lni;:;:1cions
lle !l;;:; li::;ccc; ;;):0 llO~~ unC:cr inv,-,sti;:;atioll by us but tlJat \,:0
\'/ill ;.cec',',,;:: to l:j,," request in connection \'lith those listed
org;, :,i";;, c io:1.'; ~L2a t \'i<2 h2.vO curro nt ly under inves tiGJ. tiou.
-.
/
/
./ --/.'
2, Attacncd for cpproval is a letter tb all
,,~pecL;l l:Gcnt:; in Ci:~.l·GO alertiu;; them to tho IHS pro;:;ram.
***
45
EXHIBIT 3
U:\:r,r~RrT fROlI COtIHUNtC:\TION. 81 ~;rAL cAffi:NT IN ellA RGE ATlANTA TO
1) I [~ECTOH. i"r, I. DA'l'I':l) 1'. PRIL 14. 1964)
/\1' loo-G),~()-D
jU-j'llol1:
[Tax return~of and information 'from IRS]
investigative files were recently received and analyzed.
[Paraphrase
It 111 \'IJl1'eVC r l tllClt ,\o:\O!')) (lll(j c)'cd\ ~;o:':; of'
)1!'(;:;I'I1\' t',:I) 1":'''1''''',111; :II";";J roJ' (0
'
111\;"['-.1 IIt".l.ll' ,':1':';' ,1,'~\ 1·.. .L\,lu~' •
.!Il .'.',',:1,'1 V, I,II'C ,':W,Ol:: ,I,t ,1.11 ;jll",~IJ:;L('d ',Ii:,\, UlJ,I,,';l ,,1
::t.::l~;j(lJl'-'I':: ll""t'l;;'~ ~JJ(:n:1\ lll'(:, C{,~)_ll~:i or ',:III('ll :'1':' ;I\/;"I:.):':.'.e
tIl '",,' :,I;l:IJlI,:, (rl',{lcu nIH] \:,lll l:'_~ rl\),IlI:',IJl~': I,'., ::CI':'1.'111',l' ,:OIr:JI1UIll(;;,\,,
1':11 \;0 1,Ii'e r,;:;',::11I ];luc,r;ltnl''! I'll!' 1'(;1']':"il:':(:,\<"11 Ill::'O',"",':I,
1,(' II', \.Jl:·,l!'.! 11\ )'\'.'.1 ::111:: tile: dOIlOI':: tI,:1L lIlI;/c]'I1") ::';'J~)l':'J
~;Cl·':'l..(,;t_~ J;I (~\:i'l'J:jlt.;J '.r 1.;/:cc::J.n t ,; 1;:1;< l'(;C'::'l~\.i:; ('q' :~rl:1 ~-;t:1C'
·~J·,.~~\.ilJ'.ll l'.ll:;,;; !J]IUI\(~:,' e()l'l'C:ipnll(_ICll:~e ',:allt:,) t.el 'I(I\'~_~;~~ ~.h'J
(In:1CJ~ ,\.I\:')'l1',',:)"; LJ1,'I.L Jill l'ClJU1'l:ci.! -Jl.\~J i.:.:..i·!.... :~ ill ;ll:{';}l',j'~n"':(J \1.'.Ch
'J 1)1.el't)~l l j/~VCll'.t(.: l'L'(Ill.\l".::;r:l\l~~ ~}O t..i1:Li.; lJ{J -{,'tIl li(;t Ll:.'(~l-)i,;C
111V"J',",Ll 111:1 L:l ..: .11' .... '::;LJ:;~\\;loll. It j" h:1Jevl!,[ (;'1<:11 II JulL0]'
uJ' lllJ.:J t,/,)'r.:: 1').'(1:11 L1.1:1 C0U:':'C GC.lI1~;J<l(-';';lldc: C()"II~.~I_'r':l ;';1';
c,lJ.lllll;1\;C )'11 .... ':,·(: ';"\IL!'1.l'utl011:J. 1"1'0;;\ .'['/;'1,[,:')).1.(; j;,l',,;'::I:IL i 1m
Jt .1;, i'['I':'I'C::1L L1,:\I: 1.1'l:I,'f 01' (;110:,0 C()l\~I'\I"Jte:l'~1 .... 0 ,',)',"
[iU\II', i:l) 111 o)'de)' VJ reLdl!] lax lll~rJ\\C\.J(!II:', :'11'\ 111 o!',it,), CC'J 1.,~:
('_L.lf_~.iLll'" .t"Cil' ::11.:1) (~'->I\I:-:t..jO;I~j, tll(~ CUIltl'Jill1 0 .1.DH 1~~ 1....:.11~;: 1,l:ldu Lo
tiJ': [excised] CIII::·l:IJ. Illl\.ell jll tlll'll 1:1 j'C>l'ii:ll·,Jcll \'0
60-877 0 - 76 - 4
40
EXHIBIT 4
5U2..TECI'
1. 0:l1 :?eo::-,..nry 1907 I J2.e "'7r'it£. Th.:::l):=a~ T:;;-::=i. ~\.ssi.5~.
t~ ~e Cc==-:'s",loner, IRS to \,::-ie£ hi= 0;:], ~~ C"~rr~n!: ~!;..:2.t:.=of u;::
J'..:"'>..;·-:I:?A3.TS =:>J:tzr =it ~o 3~~ his coope=tlc:<:l.. ,Also pr~s=~·w~i-<::
."L;;;:cn G:i:"::e.n, .E::;ecu=:i~· A:3~i~' to tb.e ...L\.3rriS:'1!"'~ ·Co~!I1issio:c.e:: £~~
C8=nli=c~ and .Toh.::l P.a~b-a:!", Cbie.f of R~s, E;::=t Or[;d~~=
3~6... All thre~ offid:;J.b by", b<:en closely Gv6h~ mtb.,u:l k tb~
:-ec~ d;eyeloa.=.eclo:; a1::cui: USNs...~ ~tld-::. Ilia il2.Z"'d.cul;:..r... "., - ..
- ),0'!Jt2.",n...J ..,f...'J-: . '. -. ,;,-
. 2,' r told ::.h~ o::! &9 ;jJ:o~atin!:l2..nd ::-t-..--:::o:r5 ~~ h2.v~ "he2.rd.
. 2.Cccl R..<\?U?AP.T5' pro?'JSeG. e::o::?Os.bs -.;;ic~ p~rti~tiLJ.::: r~~r;;::e::e to •
" U',S?lSA :{d:Or~.:." I i=?re"s-=c 1.-?O~ tl1=-> tc<: Dlrecto:;-':; c:;~-::e~.=d
. ~Z-c9 s~ c~.:- c-e~'" i c:; tt:.:. th£~ I:: 2::1 :Lt:a2 O~ Cil ii3. ,?.?...::"t:'!::uii::-,' .
2-d tb..~ a~t.:rl.s;~tio::lbo" g~~, --;-.:bic.b. i:; :;::l~-r-cly 1!.S~'; lJ-:s?'is....~ 2..-~ .
. ~.:o..s tool~. To :2.C::.pba::,i~ethe n.at~o ox tho:! ?~pl=== i r::-.z..dto t.b.eo:::::!..
e;.:~.e2"?~3'irt.:r':!J. }..i!-'J N~ \r:::l~Qrc.nc.~ of 25 J2..:::?'-!~::':-715'67 :rel"~j~i
scz1:2.C:le1:;.:S al:ld 2.et:~ of RA.?...c?_~RTS aiii..-:i;J..1s in t,p.e p~ri~d .
22'-25 J~X7" ~i2 2l~ <lL:;cn3S-ed otb~~ pz..oC:2bl2. ~Otl::::~s o£ i~Cl;- ..
. ~2..~io::I b~..."2b C.3=:i 07- lL-·UliPAB.TS" i:w.clll',J\;~~ the T!~J le:!..C!.~ ~h.ici,; -:
~~·="'yo-';"""";""--'~_...:I L==~1-.a"":"'"""l...-- -. ...... ';:""';:;-rt-.,..)) ='·0- ---..::0 7~,::~__ · ,. ~ .. o.J L...:...L _ .... ~~'~ .. ~..:.... 100.- r...:..........~~ ..........;:>........ _-:' ..;a _ ... ~ J. ..__ .:-'~ .... .9l- .. 0
bi!i.=7 of lli.::::=y 01:J~~r oi P2.b·""'~~ ::r~ b..:lv1..:tZ ccop~r:a.::ed ,n~~ '0.· - ..
.Rc'\2;fPA}\J:'S W33 =~ciio~~. . , .;. ',' ,. '..
. ~.-:' ';"., ' ..~ /:':."~'';
, .. °0 • •
3. Barber adviaed t;,-,t tho IRS e.::::z..-"""=i~~= h2.~dli=g ~~~ ~s::;S_~
zC2.??li~~onfa'!: t2.3.-e3.~9~ ~f~_tu.3 has. jl!£ c~plct.ed nis 1:'=..Cl.:l3~_
Ee n;1.::3 ~e:::o~;n2nce-C Ga1: U.Si'I5A be g:-2:2!:C~ 1:a:::: ~~?ti()i2. l.::ld.;:-;:;--'
IRG Scc~ic::J. 501(c)(4} ':V::::i6 i.:J t.!:J.~ cl;:lssific;c.:lo!::. £0;;- "~od:::..l. '..;-:;I.b..-...:;:"
O;-;2-~z~~lai!3.. I!l tc.C' e-v-='--T2:~e::::-l S }--ie-.;.r D~.jS..Ao 1.3. C.i3S.\.8lU:i~c. fer
sa 1(c) (3) ~t~:~~ 2:J 2.. Joli.ti~2.1 ~c:la::l o=--:-2.=:::2.-:-:~::J.. II it :::; e..~:::7i.":)::
\.~.r!::c= so l(c)(~). c.!o~':~i023 to i~ 'Will Tlst~b", .J~J'~c:L~le:: b;, t.'::.~ ~i'::;:'l;r <).!:!..2
Dcc!a<;siiied by authority
1 October 19'1:'.
:'-. -~
"
\
..::.
47
... :~ "";\i(.u. ~~ ::..o:::e: ~:.£f!.c~ io~ i: to ;;~ d.o:-..2tio.:J,s ;'-:-~.i;-:l o;r;.J.-::.!..=~t-:.::J'~::;
vJ~~iC-.~ 2.;:-::: G.'.(~.?c I.:-':1.ci~.r- S~ci;~o.Q. SO} (c)(3).. I:: ~2.3: ~l~o ~c~=..::ed (;c2.
t~,-~ US0iSA ~ci bc:cc:::::::. ~ so ~C:o ;-ious ~ci tb.~ 5'..:~;ect oi ::0 "!:::..2S" ~uo:i.c
ccr:-;?~~J i:O I?S j"':.,-,l- i~ 2::.:-"Ll "b:;:::...'1 pct t:L6~= .2.::..:i~: :;.~-3. ~:'9t ~",-e b-.-....cl
i:3 50 1( c; (.3) e:::e..:::J~icn ::-c-...-ok=d ev~.:1 if i~ bz.d r:ct G-:::~.::l. =e~ci.:-c:l t~
ii.!;;:- .a.rl~ ~p.?lic.::.~::! £or ~~tio=:. h;.'" ""'~-:-=.~ oi it,;;; :;-eor:;~_:'_-'!:ic.:l..
~... •• I
~. I sugc:este.:=: tbt tb..:;: CO~D~e tz.:::: 3'"Ct-..:::-:i.3 of Ri1..?~l-DJ~R.TS.
be. be =--z..=~:::ed ?~ .t,~. =1 lea;' to po:;;,,~51c:,E=d.d S",??~=3
btl follow'e<:J. t? by =~';n~~Qn cl their i=.,ii"i;i=l t~ :::C==:i:!.,s. r~
is lln1:'l;;cly t.b.2.: :!u6 2-D ~j~~"'OI" v.:ill cevel.op =w±. V10r:b.-'i:>rele
iclo=.2.!:i~:r!an to tb.:e mzgz.zine'5 .;;;ourCl:: of £Ln.z..=-ci.:?.! st..tppart; bt.±. it
is ~ossibl.e t1J.at :l=C le::.d..3 vril! be ~vide.c.to The :;:et"i1=s' = beCcllc<.!
in ior n,view oy tile ASll;iS>".;:.;:,..t C==issior.er f:n: Co=:;:l1i=>ce m!l:..out
=:oling <=y parli=iz4' =t:i~e in ue :,cl!'pective 13..5 cist=iets. The: propo,;~
=;-"0= woul.d. b", =d" by biro Gre=. 'rl~O ",o~a. 2.dvis", 1':1<::
if tb"=e- ap?==d to b~ =7 ir:::::O=~10:lon t2::e re:i:'-:=s' ,,"crth iollo'ili:::;
lI?- T.::J.8 po].i::.ical 5<=.si:i....il:y 0'£ the case is qr:;,ch ~2.t :.i "e 2.=€: t.o EO
iu.... ......2:J.er t1::<lll ills. it "Will be =ce::ltlary ior the A,g<=cy i:a =al~e ~ ,
fQ~ ':r;equ.est ior tb.e ret=_s =d..;r a p=ce2=~ s<!t :fortb ~;:J. CG~e:=inc..::±.
~:::;;;·-~Qtio;:::,.s. 11 suc~;!.. rec:.i::.Est is I:3.2.G.e, ;.:~e Cor::::;.I=..i.33io~e= y::,ill ~ct.
be ~ a potl~tiOD to d=:r 0= i:::::ercst if q1.les~;:i.;:J;::.e,jzcr by "" ==:J~r c:'
Co:::.g:::e~s or ctl:e= c:o~ete=.t a~~~:J~ry.. .
5. :rb.i~ ~-~e:- c::r.::::.z~s U:e cl.e.::a~3 £0:: iJ~.liti~l =~e;;:C1lsoic:.:::~ -'"
, ::J.g;,.ln.s: ;:.he l:r!:c=u Re~;::,- Sc:=-.r.c,,", "-3 ';;leU 2." ill", Ag=C'/ 2.C:i~ ~.-'...:;:. Ter':'fie"
6.1s t~ "We C~ ::2J.~C ~ :=lO~ 'tl.:2..o.""i..l he.~. brie£~ tl:.e Cc==~is.3io::::.~Z"'.
T.a-e CoJ:."'-=:is:non"r'.!:;z.ci u:::=c.:r expr.cssed cO;:Jce= ~ye;:,,~u::ili.c; c=..7:e.:ti:
about USN0's t.a:;: ~~~i:ia::J.. e1""~ !:h~ugb.he k.::J.t:'"ri ~:=:;::!..S ~t tb.~ t~e
0; the Agen=:"lJ~ bvolv==:t 'Oi~ DSNS-.'\... ,Mr. Ter:;;:y ciD. b:::iei Ge
Co==i.:;sio=~:::-as ecox;; 2B posrible 2.=l.d cor:::.z~ ~'" ..a= ~~ i:l.z.s ::i?=c :;0.
, -
.~.
,.
cc:
,:ROM
St:?" "'-6 1975
C1A . i
· 48
EXHIBIT 5
t·'~~.r;-... ;:£\,J
/6// t/
6 ))occ:ober 1972
to; District Director
St. Louis District
Internal BeV0nue Service
from: Chic l' , In.J"elliG'"~lce JJivision
San Franci::::;co District.
!>ubject: Tax Protest l':ovcment
Attacl'i2d. hB7.·O~l.l 'th, for yuur i,~1folL'1at.ion, Jr: :l copy of a list
of \',,-=iov~ :;:<'::!i)2rS inYo1'.·cd in the t<:.,.x m..·otc:f,-~ r.,u'/eiL;c:lt. 'r.:~8se
inc1.i\'ituala i--'8.\t0 beef. idlJ!r~i_~iC!c. t:l1:~:\.':-:l imi:sti.(,(".U.or.s CO;tr.;·,1.Cted
in the' 02,n FJ~~;1Cicco Dict:r.h:t l'2J..0.tinp: to vClTious L~x protcr.t
G:~OUp3. It l.S rc:lie\'C?d that f.c:r.e LjcrlDer3 oJ.' thc:>c cr~UrJ3 ':-:.:'12
cup.:l.blc of violcr..cc Cl.{;ain::>t E/.S lJcn:;o~llwl.
Thio information is furnished fOJ: your ini'o:TI.J.tion oprl diBposi-Li.OH.
Name deleted
Chief, Intc:,llic'cn:::e Division
) 1 FZ
li\Jr::LLlC:CUCc u, ."
Ii:S c;r LO! "~. II/J
49
!i (Cont'd)
Hontoya, 'Joseph (Sen) lIeH !-lexico
'l'avernicr, I'lorida
1:ed Bluff, CA
Pal,er.TIO, CA
SoUl DielSo, C,\ 92116
BridG~ford, ConnGcticut
Names deleted
PasCic1cna, CA.
Il'UCOJii3_, \'lashington
Rcd llluff, Cl,
1''r05no, CA
Volley SprinCG, CA 95252
Hell'Cad, CA
Cincj.natti, Ohio 45205
Pip.cd;:,lc, CA
Berkeley, CA
FOlllcr, CA
30
. List of O~g3ni~~tiong
-\ .
The Stucent Non-violent Coordinating Corrmittee . " .... .'.:: ' ..
The,Student Voice, Inc.·,
" The Sojourner t~otor Fleet, Inc. '
.... "" ;,:
.. . ......
~ .. '"
The Southern EGUc;ltion nnci Kesearch Institute, Inc •
. The ConGrcss of Racial E'1.uali::y
~,e Students for a Democratic Society
'rhe 1Il(:c:<' Panther Party
The Revoluti.onary Acti.on Hovement'
, .'£he !)CZlcons for Defense und Justice ,:
.... ·f
'rile N<:iticn of Islam,
'.rile Ail:o-f.""crican P.ese.',l:ch Inr. \:i ttl te, .Tno •
. 'Jl!c ~Oi; therr, COrlference [cJucnt:ion Fund
Hosen l'u:,liohing COr.1pany
Trl-Line Offset Company, Inc.
.'. . ", ':~ .-
...:: ...~.:' "\
.,
liw llcdic;::l Co"",ittcc for I,um;m Rir.ht,~
The Fund [or Educaticll <::nd LeBal Dafc<lsc
The Hinutemen
The American lla;;i Party
The Unitcd Klans of A,-"cric<l, Inc.
nl(~ Hhitc Knibllts of the KKK
The Nation<ll St<ltcs RightD P<lrty
, ~.
.<.'
..'
hfro-Mcr ic.:m Sct
. I
~llLcd War Prisoncr~ Rcscuc Mission
31
Americans for Frced~ . ~...",
, .
" .
. Black United Youths
Brenkthrouch
Christi~n Beacon, Inc.
~.: .~
-'. . ~
.:.''''''~:'.>:' :.~ ;J..:~~ .
. ':',"' o,'a _. ". .... . ' .. '. " ..
", ":~:;.':'.
" .,'.~.
~ ~ 4.': -~"~: ...
"'<'.~.,
.:: ..;..
.' ';'-:" -..~' ..;..:~..~
Chris tinn Echoes tli1\5.~ try, Tm:.•
Church L~a8ue of "";led.ca .........;...
.Ci\:)"'ILde CLtizen~ Action Co=ittec
Civilian Resi3tancc Goromand
Comrr.anclos L
Cornm1Jni~t ParLy Youth Club
. ,'.,
.;", "~.'.- .....
': .-:
"DaytQn Alliance For n~ci~l Equality
Fair Play For Cuba Cu;,c"ittec
Free COepS
Frce Specch Hover,len t
Fund Lor The R?pu1.>lic, Inc.
. ,---- :'--"
.... ....
.: .:: ..... .... :. " ~~ , .
..0.
Group For Adv~nccd Lea~crshlp
In&titute for A~e~ican Democracy, Inc.
Institute' for the Study of illack Unity
International \1orl:ers OnJet'
I
52
Interreligious foundation fo:.: Cocr:nunity O,:;;clliz:l::icr., Inc. '- Life Line Foundi.ltions, Inc.
}~lcolm X Society
Medgar Evers Rifle Club
...:.::
~ ...•
" ~ ,,:,. ,~...
.. ......\.-."; ."
.... .. ":,, "'~ .. : .. ..~ ....
"....";.. '"' '.~., '.:.' ~.;;: ~.: -,": .'.". :.. . .)
" ','.
r : .':'
" ,
"
, "
Militant LalJor Fotur.l
, ~ ' ,.
..~:.-."
. 'Monroe Defense Co""nittce
HIlslim Hosque, i:nc.
... ; ......... :.
,',,,
.',
I Nation:Jl. Student .'tssociation
. (Formerly U. s. nationnj, Stuuel.t AssoeintJ.on)
Operation BrC::lkthrough
J
" '
!
11
'
OL"i~o.nizl\tion of A[ro-!J;1crican Unity, ·lnc.
"
Patriotic Party ... " , ~.
the reDee Foundation
" '-;., .,', , .' ,',
.~.( : .'
....... 'J.:'"
Republic of New hfrica
ProLcsl;1nts Gnu Other l.mcri.c,:ns United ;;or. Sepi1l:<.:'.:i.(!ll 0';: Churdl ::.r,d St;:Le
/ Louis 1-:. RabJ.lloHitz roundntl.on
•
, .
Gociuli3t WOi:kcrs Party
-' 'Soldiers of The Cross
" I £;outhcrn Student Crg.:lnizing COJ1fl\ittec
..'
" ..'
United Black Co~unity Organization
J,~. E. D~ Dubois' Club~' '" ":,'
...... ..0.-,.·: ._.._
','
: ...
~ar~crs ~orlcl r~rly
Youne Soci~list Alli~nc~
. '~"f \'. .
"
53
EXHIBIT 6
1/::;''::_.'1 ~n6'.r::::J;li):;:..;-~....:..J i/Il
Ju.l.y ~, 1974
t", S;,. 1 A"CD Lo
I( C:;:;o~'J)' J<"I::;.: HlV.Lllc DLGvrict
from:
subj~ct:
GrCt'iJ ~'.nC1Lcr
l.C':';:, (~l:(:\.'~
=::.~~~, '7~.:L~.. ~.
The Intcn1.:.1 Rc\'(:n'",;',:, ~'l.J.nu,ll, :3('ctions 37:., 9372 ...... nd Policy Stilt-.2;;"lcnt
P-9-3:1 (cOl)ics of \,:hich arc ;;tt'::'1chcJ) i.,(ovid(~s Cw':i<::ncc: for p.:lyrr:.cnt
to £0,.1';."0.:.:1 fur CCI1.Ld'::':ltidl J ;)for:Wiltion. These ill:;tructior..s ['urplem~nt
the lJictil>,:l <J;1d .1.,U~ prQvidc;d for your CV,-'1)'<.L:1Y guido.ncc.
6:'Pa)'l.~cnt:·r..Jiinfoi:·:~lt.iO:1,,'ill 1)(; J:lnlk only ~r;n the infouu<1t1on ia not7
"'avaiLl1<'..c. ot:b~~".:jL~2. I.ac:h o[ )\)U hD'.."C 1'.on--£>,Ji<1 sources. In those
Gituatio:1~; c.:lllin;; [or P':-.Yi:lr;n:.; [or cxp('r.:~e:; or :lncormC:ltion, our approach
will be CO:1:.:;ervoL:iv~'" LiD to .iJ'IOlj"tS p.:u.d but rrogre::.sivQ. at; to ceekin8
and ~eLt:i~ th~ l1t.::;2(l-.;:d in£oro'-4l:ion.
Ill.7fCr,L fund
propi.'l.' £t;l~U.
must be p.1iJ
fOt'ce. 'l;.len
P.:lYLi,-')lV; to conf..irJel.ltial GQUrCCH TlDJGt be paid from the
If t:w infonlJtlo:l obt;]incd 1·Cl.ale:8 to ~;TP, then the funoG
f::oJ1 !~T? £u!1ds~ The i3.:l~ n~lplics to the TPG or Strike
l."C.'1IE~~:t:;:ns:'funds". V1C~6(,_-£pecify' "thp: intended pro~r~.
LOC.JtlCi, of FunJs
Confic!~r:.;:-.L:ll fur.ds lor th~ IC~,R oper:~tion \d.l1 be. naintaincd in liiami
in t.he CI.:Gtody of the IG&r-.. Groul) Han,1E;('L". E:lc.h ICc,I'... aGent nt POD'a
Dutcil:' ~ of :,aiJt1:i liU 1 b..-:: .:lOV<:l;1scJ fl s;;-:,1:J.l fund. An tntedn rc(",ei:lt will
be signed for th~ <J.dV.::....lC.~. t::,p('llditllrc:- f\"orJ. tho" ildvuilccwill cot ba-~
~C:~.:"\dt]~C~r~J:.0.:;.~!';?P~()Y0l~-,9i;.tht~. ~y~uP.. :,j,,~l'~"l(;.,:r.~ ,
34
T_'."!_l1h--':~ of J',~y :•l'nt l\lJlLurl.~'.,~i.l ~ _
1',\j': :.cent n.l'.' he ;,uLhori zcd [or expe.ndi turiOS h'ol~ the coniideutial funds
fc-;;:;
(1) L'i,c'l',':e; for aI' in bdlJ.H of source.
(2) l:lLoc:.'Liol1,
(3) S",,:urlng cvidence.
'ly?e of ex;ocnSL':; incluuJbl" (<lCOll" oUlC:ne ) L.1Y be hotel roon or other
J~:ICC rental, ~u.to renL;ll, trav"l, fo-.lu and bevera;:;Cl, or utilities and
j1nol:e.
PCljT.:i:'nt \-lill "at bo C\\J;!orlzod for "f:ont" conc:y or a pro;;llse by the
\ ,-'of '1;curcc that he \.'ill ddiver J.n the ,future. In some circ' ~~t~nc:cG ..
... ml~l:r,d."atioa \;ill biO' cr,mt2d toaUV;'llCe cXI'0n:;e money.
. ' .... __.,_ ~ .. ".-. _ .. ~ ..... '--'_ ,.... ,~. J
I,zpc of InfoEutio:l 50u;;ht
Information ,,,;,:\(,h '''' sock cmd'l:or dl1c11 we \-lill rJake payrJent is contained
in Policy St:.tc:::.>nt P-9-36. He 1.1U'>L L"'1l'd <1i;<:linst usin~ the confidential
fund in any other ,",elY. P"YClCnt [O~ infoTl:1ution is made onl)' when the
infol"TJutiol\ is lln:lvc,iL,blc other-wi,>" ..for ex=pl,", pay=nt \1:..11 not be
nli1d(~ for ill, <:lues t report "lwn Swcll a rcvort i~ public record. t;eithcr
\-lill .. ,:> p"y <l GOurCC to (,,,,,~ch public l:ecords for UG or to do other tj-Pli:
inV:2g tiU<1t:!.vc "ork ,;
"E,lch-=pcncliLlll'<; frOi'l the cortfident1;::;l [wnd ",UJ. be approved by tho
··Cro\\;> l!an<l(;C'r before po1y"cnt is m<:ldc to the. source (infon-l<lnt) or Lefore';My
e;:pen;>er. al'e incurred by tho sou,-c<;. After the source has been
debriefed, the, r.peci<ll agcnt \¥ill wri U: a melJor<1ndulll to file of l.nfonnation
ob';<Jined 2nd/or expensc:~ incUrl-c:d. Thi,; tlclUorandulll ,lill he forwarded to
the Group N"nac;·~r for revie", The spcci<ll <lgcnt <lill <1tt.:lch to the
"":>Clor<:lnduJ:l ~ note reco:'l:o"ndJ'::b =ounL of p<:lyliJent and will alGo recotr.lcnd
distribution of the Ul('.';)OLJnC,Uul, After review, the Group }lanaGer "ill
Iluth'dze p,.y:~·cnL to the couree by t:", "cent <lnd Get the anount of
pay::Jcut. n.c G~011,) :·f"n;lL:cr Hill nOLify Lhe a~.cut of the amount approved.
AftllJ.' ~l'prov:'..I., Lhc a<:;"nt C,1n usc fuado on hand f.or payt:ent.
00
At tiJ~c of: i',lY"Dl~ntl tl." 3scnt ;rHI oLr,lJCl .1 lcceil't (St~ndQrd Fon~
1165) [::):\ thf' DOl': cr:. The r~cd;)L ",ill I)C fan,arrlccl, alar,,; Hith a
1J1[;;lcd "Co!,fidc"tlal b:pcndit\1rl~ [rom l ..,;)~,,~t Fund" fonl DI'" J 1:\1-52,
to the G;(Ol1'P l~an.J.Gl'r.
Grncr~ 1
Ul!.~e~_:n..Q.._~j!C~rnst;l}1C'-·:; \}il~."rcl~nlJ.r" P~I:.;;-~':r;ts 1)(~ T~.J(:C_~o ~ :.o.u:::,ce._
That 1~.-_~(~ have no ('nc.- on the p,"<:roJl. 1,,1(;. O~J.ly pay for infoTI::ltiotl
receiv_cd,.2.5 evalu:,tc,l and rcco..;"cnQcd by the spc:cia( .?£cnt 'an(~'"
.!:I'r!.~:r_c~.~)'_~?C_ ~oul' ::anascr .
. wch of UJ [',ust c};creL,~ care ill submittii\(; ~n'j vouchers or c13ir.s
for rci~~ursc~cnt when the special agent is involved in dining with
the "ource. In such a sitUation, payne:lt vlll only l>e IDi!cle for ex"enses
incurrcd by thc agent OVC1" and .1hovc what he "ould norm.:llly hcve 6pent
for.J. ,,"sal. All of us havc b"cn r;ivcn a bie res~onsibility in handling
imrrrest; funda. Hc lIluct use these funds carefully and fl:ugally.
In the event of any e;'1C:l"/;ency si tUdtion, plcasc call the Group }bnager
fo~ iufo~~tion and authori~y fo~ paYfficnt.
NAME DELETED
Attnchmcnts
cc; Chief, IntelliGence Div.
JJ.cf~oGvillc DiGtl:1c~
TNSTRt:CTIO::S TO GROUP
3G
Assistant Commissioner I
(Compliance)
Disclosure Staff
I
I
Administrative Office
Divisions:
AUdltCollection
Jnd
Taxpayer Service
Foreign Programs
and Research
Branches; Staffs
Chief Classifying
Officer
Conference Staff
Examination Branch
Field Branch I
Field Branch II
Foreign Programs
Branch
Office Branch
Research and
Technical Branch
Review Staff
Service Branch
Special Procedures
Staff
Office of
International Operations
I
I
Administrative Office
Staff Assistance
(Visitation)
Br':Jnches:
OperCltions
Program
Technical
Development
Intelligence Division
I
Audit Division
Office Services Staff
Branches:
Centralized Activities
Exempt Organization
Examination
Programs
Resources and
Analysis
I
Appellate Division
Coordination and
Management Staff
Branches:
Programs and
Procedures
Special Services
ooI
''""
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
,I
59
EXHIBIT 8
Internal Revenue ServIce
,,," G JLf:J 1974 1 ,,, """ ,.'" ,,' ____LrWL__
~ 11oIlorablc Donald C. Alexander
COinmissioncr of Internal Revenue
Washington, D. C.
Dear Commissioner Alex~nder:
This transmits a copy of our report of results of
the special on-line 2udit of narcotics termination
assessments.
Thc Service has made ~pproximately 3,500 narcotics
termination ~sscssments totaling $104 million since
August 1971. Thcsc assessments ha\'c gcncrall)' been
made under tight ti.me constraints b~sed on information
furnished by local law enforcement agencies with little
or no indcpen0ent investigation by the Service. The
information furnished is CenerAlly not sound evidence, .
but primarily consists of projections, opinions or conclusions
of the local l~w enforcement officers. The
investigations arc not of the same depth ~s normal
auclit CXJn:iJlations.
In these cases, ficld aGents InItiate immediate
assessments in order to sei:e ~ssets in custody of
loc~l ~uthorities before the assets are rcclnimed by
the tnxpuycrs or their attorneys. The individu~ls arrested
by loc~l pol icc ,,("lerally remnin in their
custody for Jcss than 2~ hours.
We found that procedures nnd practices used in
terminatinG the tax ye~Y5 v~ry notionally from district
to district, ,JI](1 ilS a rC~;lllt tilX ],n;s ~nd rer,uJ~tions
arc not applied cOllsistcntly and equit~hly to ~Il t~xpayers.
The terminations arc usually llIilde on the basis that
the t~X1':j)'l>r's jJJcr:~1 Tlal'cotics invo]n'llIcnt constitutes
a "prima facie" C'l'ie. \\'ith fel' exceptions, there is no
other h"rd l'vi,ic/icC that incor:le Llxes arc due or thot
collect .IOfi oc t"xes :ne in jeo]!anly.
/'
60
Commissioner Alexander
Since the Service docs not issue SUltiltory r;ot ices
of Dcfici cncy in these cases tile Ll):payers llo nut have
the ad::linistrative "ppeal riJ;llts C1Uordcd to taxpayers
subj ected to jeopardy asseSSlients or tax de fj ciencies
<IrisinI' [rom nOTlial audit procedures. This fact coupled
with the fact tilat the najority of the termination
asseSSl:lents are not supported by ildrd documented evidence
gives rise to the di~;tinct possibility thClt: (a)
irrcparilble harm IDa)' be suffarec! by some of the taxpayers;
and (lJ) the Service may be accusecl of assessinr. tax
1 i a b j 1 i t j c s I,' i tho u t due pro c e s s 0 f 1aIV •
The weaknesses in the termination assessments are
illustrated by the results of full year follow-up examinations
';hich often result in sub,:tantial reductions
and refunds to the taxpayers ,,'hen det<1i I cd examina ti ons
arc mOl c1 e . In ot her i ns tar~ ce s ',,'here the t axpa),er s do not
file full y~ar returns, quality examinations arc often
not conducted. In tJ1Cse cases, the full year liability
generally approximates the sJlort period liability.
In order to gain more time to conduct an investigation,
one district issues a SUlllmons to local police for
assets in possession of the narcotics law violator at
the time of arrest. The local police hold the property
for up to ten days while the Sen-icc conducts an investigation.
II similar practice' in another district was
discontinued in late 1973 after Hq;ional Counsel rendered
an opinion that this practice ,,'us an ir:lpro\1l'r usc of a
Summons.
Due to the common characteristics of these ternination
asse,;sr;lents, one adverse Suprellie (ourt decision
could affect hundreds of C<1ses. For instance, if the
Sllprene Court sliOu] cl affial a l'ecent clccisj on ],)' the 6th
eil-cuit Court of /\rpeals rCCluiLing the issuance of a
St;3tutory i';otic(' of !Jeficicncy h'ithin (,(1 cl:I)'5 of ,1 termination
assessment, all termination assessments may be
rendered invalic1. The Service h[\5 received other <ldverse
decisions on termination assessments in lowor courts,
nn~l has compromised -other cases after the taxpayers filed
SUlt.
61
Commissioner Alexander
Copies of the report have been transmitted to the
Assistant Commissioner (Compliance) and the Assistant
Commissioner (ACTS).
We will be pleased to discuss the report with you
if you wish.
Sincerely,
Name deleted
~Assistant Commissioner
(Inspection)
Attachment
60-877 0 - 76 - 5
62
Internal Audit Report
on (h~
On-Line Audit of ~rcotics Troffickers
--f'l'O;',)-~~!:, - ';"·l;rr.~~ 11;:llon l\.';SC~;~::.:('nt.'J
Introduction nnd Scone of Audit
This report summarizes results of a special on-line
Ruelit rcquC'.,;tcc1 by tl~e COI:1missioner .. The audit objectives
were to determine whether Service policies, procedures,
and practices used in terminating the tax years of narcotics
subj ects arc in accorcLcnce \\'i th incon:e tax 1.:1\0/S and
rceulations and ~lether these policies, practices, and
procedures are applied consistently and equitably in
arriving at factually supported tax determinations.
Reviews were macle in the Los Angeles and San Francisco
Districts in the Western Region, in the Chicago and St.
Louis Districts in the Hio\vest Re[;ion, and the Jacksonville
and Columbia Districts in the Southeast Region. This report
consolidotes the findings resulting from these reviews
as well as findings resulting from other recent audits.
SUJTlJnClry of Results of RevieIV
We found that procedures and practices for terminating
tax years of narcotics law violators vary nationally from
district to district, and that as a result, tax laws and
reGulations are not applied consistently and equitably to
all taxpayers. For instance, all six districts inclu~ed in
the reviev7 generally set a minimum value of assets seized
ranging from $500 to $2, 000 in determininG ,,'hether a case
should be considered for termination action. Also, the
employees responsible for prepnring termination rc'ports
(reven~e officers, revenue aGents, or special agents)
vary from district to district.
Five of the six districts rely primarily upon information
furnbltec1 by other 1,\\; enforcement ngcncies ,md
informants in making terminatic.n assessnlents. The information
is gellcrill1y received telephonically, and is often
bilGed on personal opinions, projections, conclusions or
hearsay evidence rnther than specific documented facts
63
concerning the subj ect. In some cases otber rdnimal
independent investi~ations arc made by the Service;
bOVlever, they are not of the saf,e depth as normal audit
examinations.
The sixth district, Jacksonville, issues a summons to
local police for assets in the possession of a narcotics
subject at the tillie of arrest. The police then hold the
taxpayer's property for up to ten days while the Service
conducts an investigation. A similar practice in one
district in the Soutl~]est Region was discontinued in 1973
after Regional Counsel rendered an opinion that tbis
practice \'Jas an improper use of a SUITtlTlOns.
Generally, all six districts terminate the tax years
of narcotics iaw violators on the basis that the taxpayer's
illegal narcotics involverr;ent constitutes a "prir.la facie"
case in \·]h1ch termination assessr.lents should be made (IRH
4585.3). With few exceptions, there is no other hard evidence
that income taxes arc due or that the collection of
such taxes are in jeopardy in these cases.
Although the burden is upon the Government in proving
taxable income in these cases, the tax assess~cnts are
generally based upon taxable income estimated by a variety
of methods. Due to the limited inforT.wtion available,
these methods are generally not effective in determining a
factually ciocu'TIented taxable income. For eX<lmple, \olhen the
net worth <lnd c>:penditures method is used, the taxpayer I s
net worth at the beginning and the end of the tax period is
generally unknOl"n. In addition, estimated costs of living
expenses, ~'Jhich 2re often included in the net ~·!Orth and
expenditure computations, are generally not supported by
facts in the case file. Other methods arc usually equally
ineffective in arriving ilt <l factually documented taxable
income due to the lack of detailed information.
The weaknesses in the termination tax assessments are
further illw;Lr"tC'cJ by the filCt that the full ye.:lr follO\;-up
of these examination cases often results in subst.:lnt1al
reductions in the Un: assessments and refICnc1s to tbe taxpayers.
For instance, the full year examination of 24
64
termination assessment cases in the ChicaGo District resulted
in recor:,~,enc!iltions that the termination tax
assessments L~ r~c!uccd in all 24 cases. It was
recocI::cnded tlwt "SS~~;';;lcnts totC/ling $910,200 be reduced
by $772,500 to $137,700. If the cases arc settled on
this basis, the t2xpayers will be due refunds totaling
appro~irnate1y $136,000. Conversely, in the Los Angeles
District tLe J'e;vici of 55 cases d1e;rc the substitute for
return procel;,:re I:as used disclosed that the substitute
returns \lere c:.sed prjI:~"rily on the same information used
to cor~pute the tcrmina.tion pf'riod income. As a result
there ,:ere 30 C2ses \Ihere the full year income \-.'as the
same> as the tCl1:1ination period inco.-:1e. In the remaining
25 cases the incone \-;2S more or less than the tennination
period income, however, facts to support the changes were
not fully documented in the file.
Due to the common characteristics of these termination
assessmccnts, one adve;rse Supreme Court decision could affect
hundreds of C2ses. For instance, if the Suprene Court should
affirm a rec0nt decision by the 6th Circuit Court of Appeals
requiring the; issu~nce of a Statutory Notice of Deficiency
\o1ithin 60 days of a termination assessment, all termination
assessments may be rendered invalid. The Service has received
other adverse decisions on terminCltion Clssessments in
10\o1er courts, and has compromised other cases after the taxpayers
filed suit.
On June 17, 1971, the President announced the Administration's
expanded effort to combat drug abuse. Included in the
Presidential ~essase was a charge to the Internal Revenue
Service to conduct systematic tax investigations of middle
and upper echelon narcotics traffickers.
Generally, the inte;rpretation of the Service policies
and procedures by tho field has been to terminate an individual
\'lith a hi.story .'md background of i11e13al activities
coupled \lith a eurrpnt arrest for narcotics violations.
The field agents of the Service have been faced \o1ith a
requirement to make ill~lllCdiate assessment to prevent
dissipation of the as;;ets seized by local authorities at the
time of arre:.; t. Usua lly it Leco.:1Cs Cl r ac e wi th the taxpayer
and/or his attorney. The majority of these assess~ents
aye Lased prir~l;1rily on the infonlotion' [rol;] the ilrresting
officers becau:;e of the ~;hort riric prCSSllce foctor. The
individuals arrested usuillly h;1ve liquid assets only and
remain in the custody of police less than 21+ hours.
During the review, a District Director stated thilt
there is not sufficient time to perfect a case to the
extent that it would hold up in Court.
Appendb: A sunm'ilrizes the number and 2QOunts of termination
assessrncnts made in the six districts tested and
United States totals by Region for fiscal years 1972, 1973,
and the first three quarters of 1974.
-I )/7 "/-:' ~'-v /,~.{c/ C/t:U?-<-~
~v W. C. Rankin, Jr.
Director, Internal
Audit Division
GG
Detnils of ncsults of neview
General Procedures
We found that th~ procedures and practices for
terminatin~ tax years vary fro~ rezion to re~ion and
within the rczions fren district to district. As a
result, tax 12~s and re~ulations arc not applied consistently
to all taxpayers. For example, all six
districts included in this special review generally
set a rni.nic,ul value of assets seized in dererIT,ining
\lhether a case should be considered for termination
ac tion. The Co 1u;11bia Dis tr ic t r eoquires a miniDuo of
$500 cash seized for a termination action \lhile the
Jacksonville District requires $2,000 in total assets
seized.
In Los Angeles termination assessments were made
against tilxpilycrs \:ho had been arrested for E.Q..Ssession
and or sille of narcotics with cash or readily iuentitiable
assets I"l'le-::ccss of $1,000. In San Francisco tel-mination
assessments \lcre lncde against ta;:payers \-:ho had been arrestcd
on chi-'rr:;es of 53.1e of narcotics \-,'here there is
informa tion to s 1',01.' tEa t inco",c has bcen eelrr. cd fror:1 tha t
activity and that the taxpay~rs had cash or readily identifiable
assets of at least $1,000.
In the St_ Louis and Chicago Districts generally only
those ta):pilyers ~,;lIo lind at leil5t $1,000 in thcir possession
at the ti.me of the' arrest ,-H,re terminated.
Internal Revcnue Code Section 6851; Policy Statement
P-4-B9; and Internal Revenue Manual Section 4585, eenerally
set forth specific circumstances and/or action by taxpayers
that \-:ould j eop2rclize eoll('cti::n of taxes \-;h('n subsequcntly
due, and llWl'eforc provide a basis for tax year termination,
asscsSL,cnt, and collection of taxes not othenlise due.
The specific c 2ditions and circn~stances for tax year
tend.nQtion ,In assessr_1cnt uncer II~C Section 6851 are summarized
in Pol ey Statement P-4-89 (Approved 10-2-70) as
follo\\'s:
67
"Termin::ltion of tilzZlble period tind assessment
should he used sparin~ly tind care should be
tal"en to ovoid u'.cessive tmd unreasonable
ilSSCSSIr:ents. They should be limited to
amounts ,'lhich reusonably can be expected to
equal the ultimate tax liability for the
tenr.ino rc,d pcrioc. foch terrni.notion of taxable
period 2nd assess~cnt must receive the
pcrsonill approval of the District Director or
the Director of International Operations.
'~ termination of taxable period and assessment
will not be made without the existence of at
least one of the three following conditions,
unless prior opproval is obtained from the
Director, Audit Division:
(1) The taxpayer is or appears to be designing
quickly to depart from the United States
or to conceal himself.
(2) The taxpayer is or appeors to be designing
quickly to place his property beyond the
reach of the Govcrnnent either by removing
it from the United States, or by concealing
it, or by transferring it to other persons,
or by dissipating it.,
(3) The taxpayer's financial solvency is or appears
to be i8pcriled. (This does not
include cases '.'here the taxpayer becomes
insolvent by virtue of the accrual of the
proposed assessment of tax, penalty and
interest.)"
Internal Revenue Manual Section 4585 and Section 3(11)4
of the Techniques Hanc.!bool: for In-Depth Audit Investigations,
110\ ~235, provic.!e require~ents and specific guidelines for
tax year tcn;1n;ltion~; and docu~.1C'ntation required, to the
extent practic:Jblc, for tenninCltion investigations, and
reconunendatiollS LlDd approval of tcrn:inLll:ion .:lcrions. The
required docufdentarion, to the extent practicable, inelndes:
68
(1) The nar[,e, oclc1ress, ond filin~ history of
the taxpayer.
(2) Tax and penalty to be assessed by periods.
(3) The nature of the taxpayer's business or
activity; tl:e taxpayer's financial condition;
inforDntion regarding the taxpayer's
activity ~iving rise to the termination
recoi1<fnenc12tion, such as transferri.n~
assets l!iLl'out consideration or atter.1pts
to hiue assc-ts, etc.; inforTTlation regarding
business losses; the nature and
location of the taxpayer's assets and
sources of income; and the taxpayer's
record of resistir.g payment of taxes in
the past.
(4) Any other information regarding the
taxpayer's finuncial condition, prospects
for future losses, etc.
Reviel.' of recent termination recoJ1:mendation reports
and case files in the six districts showed that the files
and reports ".'ere generally not documented with facts to
ShOlv specific cirnu:lst2nces or acts by the taxpayers that
,lQuld [,lui:e collection of the taxes, Ivhen due, ineffective.
Instead, the districts generally terminated the tax years
on the b.:Jsis thc.t the t<:1:~paycr's illegal narcotics involvement
constituted a "pri[~a filcie" C<:1se in ,,'hich termination
assessr.lcnts should be maue (IlU'l 4585.3).
JlOIveVe'r, IrJ.l 1,585.3 specifically requires that "prima
facie''' tilX year tc~nlinations for taxpayers ilrrested on
charges of possession and/or s<:11e of narcotics should be
suppportcd hy doctw.cntecl informilticn to est<lblisb a factual
founl];1t i,on to s hOl-7 tha t r,ubs equen t collecb on of the taxes,
not yet due, was in jeopilrcly, and tbat the tcrmin.:Jtion
actions ,:erc, ,:i thin the s to. tu tory pl:ovis ions of IRe Sec tion
6851.
69
Operating personnel stated that assessments must
be made ir;-:~.ediately in order to prevent the til:,payers
from assi~ning their liquid assets to attorneys or other
persons \·;j.t:l the effect of p12cir'0 theL1 beyond tl1C re2ch
of the Service and that it is generally not possible to
obtain specific fcctual docu:centati.on in the tiDe available.
In the Jacksonville District the revicw indicates
that the probleI'. of ir:mediatc Clssi[IlI<lcnt of nsscts to
others hilS been circl:L1vented, ilt least tcr'Jporar.i.ly by
the iI'"l'cdiate issuance of an IRS su;c:nons to thc ilrresting
officers. On receipt of the su~~ons, local police retain
possession of the ta::poyer's "property", including cash,
for 10 days. lihile having no legal effect on the ability
of a narcotics vio12tor to ussien £tIlay his liquid assets.
it has been effective in preventinG the dissipation of
his assets in this manner and has 2l10lled the examining
agent additional time for case preparation.
However, 2 recent revi~w in the Oklahorra City District
shOl-Jecl thot surr:rr:onses have been used in that district also.
In ~ay 1973, Regional Counsel interpreted the issuance of a
surrmlons for tllis purpose as an improper applicaticn of the
provisions of Il(C Section 7602 and recon:!l?nded discontinuance
of the practice.
Differences were noted also in the placement of
responsibility for prepilration of terrnin2.tion documents.
In Los Angeles termination reports ilre prepared by revenue
officers in the Offc-c-in-Coq;romise Group I-7hi1e in Siln
Francisco the reports arc prepared by revenue aGcnts in the
Narcotics Group.
In the ChicQiSO District the special agent assigned to
the teClln "Iill initially be ilclvised of the referrill and
in-turn will contact the revenue aRent and revenue officer.
The rcvenue aEent has the responsibility of prcparin~ all
document" nec0~"ary for a valicl assc,,~;\:'ent UDon aPFroval
of the tCi:~l leClder. The special af~ent hClS the prime
res pons i.ll i li ly for the coordi.IJ.J tion \·,'i th 0 ther agenc ies
and the control of any criminal aspects of the case.
70
In the St. Louis District any division may oriGinate
the rec~m~endntion for a ter~in~tion nsseSSDent althou~h
the Intclligence Division is generally the initial contact
point [or the other law en[orceDent agencies.
In the Jacksonville District the revenue agent initiates
the terr.,in'Hion action, ,·.'hile in the Colur.lbia District
the special aGent Las pri~ary responsibility.
In four rlistd cts in the Central Re[;ion the use of
termination asseSSDcnts has been restricted because of a
recent dccision by the 6th Circuit Court of Appeals requir-.
inG issuance of statutory notices of deficiency.
Instructions in the North-Atlantic Region require
that Regional Counsel be consulted in each case where a
tax yecr tenJination asseSSDent is being considered.
Examination Procedurcs - Short Y~ar Terminations
The burden is on the Service to prove the existence of
taxable income in terminLltien actions. }]oHcver, '·7e found
that generally these AsseSSDents were based on income estimated
by a variety of n~cthods '.'hich have for the most part
proven ineffective in factually determining taxable income.
The following assumptions were usually necessary in the
income dcteJT,in"tio['s: that incor,e \'.'as eCtrned during the
period terminated; that funds on hand or used to purchase
the drugs \:ore fl·OD taxable sources; and thClt the funds
were taxable to the individual in possession of the cash
and/or narcotics.
In the Los Angeles and San Francisco Districts computations
of taxable income were based primarily on information
provided by laH enforcement officers regarding the
circllly!stances or the arrest for sale or possession of
narcotics.
In 14 of 19 recent termination assessment cases reviewed
in Los Angeles, the net worth and expenditures method was
used in computin~ taxable income. In 4 of the 14 cases a
71
cost of livin~ esti~at~ was not includ~d in the income
COlT,putaticJl1. In th~ uth"r 10 cases cost of livin[;
estimates ran~cd from S400 to $1,500 per month, but
the files were not doc~~cnted with specific facts to
support the cstic~tcs. For 11 of t~e 14 cases, the
taxpayers' F.ari.tol status \.'as not dctcrmin~cl. In one
case, the taxpay~r was allowed a dcduction for dcpendents,
but the files in the other 13 cases did not
establish 1~lcther the taxpayers were entitled to
deductions for dependents.
The ('stir-,ated gross sales method \oJas used to compute
terninotion inco:oe in the rcrdainini3 five cas <:os.
In four of the five cases the taxpayers were allowed
d<:od\Jctions fror.1 [;ross sales for the cost of narcotics
sold. In the other case the taxpayer was not allowed
the deduction. Also, the case files showed that three
of the five taxpayers were married; ho~evcr, the termination
incor'lc \,'2S assessed 3goinst th9 toxpayer only
and was not divided between the taxpayer and spouse in
accordance \';:l th community property provisions.
In 2lf of 26 recent terminotion assessmC'nt cases
revie\'1ed in the San Francisco District, the net \>'Orth
and expenditures r.1ethod was usC'd in co~puting taxable
income. In these 24 cases, cost of living estimates
ranged from $500 to $1,500 per month. In 20 of the 24
cases, the estimates were not supportC'd by spC'cific
facts or information in the case file. For oIl 24
cases, the investiGotions included a dC'tcrmination of
the taxpayer's carital status. For the cases liliere
the taxpayer was married, the termination inco~e was
divided in [lccorcbncc \-lith COTr",;unity property nnd income
provisions. Also, wherC' it was determined that
the taxpayC!rs "Iere entitled to deductions for depenc1ents.
those deductions were allowed.
In the remaining two cases, termination income was
computed hy the estil'.\ate.d [',1'oss sales method. The
taxpayers were married and the incone w s divided in
acC'.ordancc \o'1th ccmmunity incun:e provis ons. Th(' projected
[;ross sales were based on specif c admissions by
the taxp(lycr.
In Chiea~o the net worth and expenditures method
was used in eOGputin~ income in 13 of 18 recent termination
2sc;eS~:111C:nts revic'.-Jcd. In the 13 cases, cost of
livinG ec;tj~utcs ril~~cd [rom $50.00 per week to $40.00
a day. None of the estimctes were supported by specific
facts in the filos. .
In the other five cases the income \·,as cooputed by
the cstir.':ll:C"cJ l:ross sales methoc.:. In one of the cases,
estir,2tod sales \:ere bilsed on hearsay ",vidence fro;;1 an
in[on~2nl. In the oth",r four cases, the assessn'ents
were based on specific information rcgardin~ periods of
surveillance, "controlled" pU1:chases, and statements
from infon':ants.
In 19 of the 25 recent teroination assessment cases
reviewed in the Jacksonville District the computations
of incoi:1(, \,8re bosed on a projection of so.les over the
terminated period. In 10 of the 19 cases the files did
not clearly show the basis for the figures used for
estim2ted \7C'c1\ly sales. In IWSt instunees, the tax liability
determined was closely related to the ~ssets
seized. In this rer,ard, the Group l-lanager explained
thilt in c'.eterl1"lining the arr:ount to be ilssessed, the
amount expecte~ to be realized from proceeds of the
seizure Rnd sale of taxpayer's assets is taken into consideration;
that making a large assessment based on
information from informants or police estimates would
probably leave the Service in an indefensible position
in Court if the Service could not show that the taxpayer
h<ld assets to support the inco;TJe estimates.
The income in the other six eo.ses Has computed on
either the cost of drugs or cost of habit method o.nd the
support was considered adequate.
In the St. Louis District taxable income was computed
by the estil;l:ltcd r.ross sales method in 1:\'.'0 of three terl'lino.
t:ion OSSCSSiilC'nl.S rcvic'I.'ed. The incol"(' COIEpuCltions Here
not supported by ~ocumcnted facts in the cose file. The
inco:ne cOL:putation in the third C,lse vcas based on a
specific income item. In all three cases information that
the ta::payers Here t::nrriccl \),15 not usC'cl, and in tHO cases
infonnJtioll that the t:Clxp~;yers had clepcndcnl~ ilDS not used.
The computiltiollS of inco:ne in the eir,ht cases H'vievled in
the Coh,~,Li;] j)j,;lrict ',Jere ba,;ccl on ;] projecLion of e,;tip,'ilLed
sale,; CiVCr Lhe Lc l"~'illaLcJ pc-ioel. J:o',:evc'r, in l'.·!O of the
ei~ht cases, the cnse files either did not clearly show the
basis for the csti~aLed weekly sales fir,ures that were used or
the file did not cleilrly sho'.l thilt the lellGth of time the taxp;]
yer ked been sellin8 norcotics had been established.
A recent oil-line audit report showed that in six of the
ten most recent ter;,ir;c:tion cases in the Austin District, the
files clid not cu:,Lain substantiiltion for one or ~ore statements
~ade by narcotics e~perts v~ich were used in computing
taxable inco~e. In one Cilse the file did not substantiate the
sales volur.0 of 50 1:il05 per m!ek or the cost price of $80 per
kilo. In another case, the file did not substantiate the
source or basis of the cost price of seized heroin, nor did
the case file include substantiation for estbnated living expenses
of $13 per day.
Another recent revicu in Atlanta shm}ed that the case
files rlid not contain prescribed support for the basis used
in estil::atinG' receipts from sales of narcotics in 2L, of the
29 cases tested. ,;0 info~;:ration v):1s shm.n regarding the
length of time taxpayer vas in the narcotics business and no
support \·:"s shm-:TI for tbe basis used in estiT::iltil:[; gross
so. les except tha t: the es ti r.',a te s \·l(~re rhos e of a nareo tics
expert. In five of the Cil.ses the 2ssessments ,,,ere supported
by doc~nented facts.
Examination Procec:ures - Full Ye2r Tax Returns
Full year tax returns of narcotics violators previously
termin:lted are subject to an audit examination ,·!hether the
taxpayer has voluntarily filed a return or not. If tbe taxpayer
has not filed a full year return, substitute for
return procedures are followed.
In the Los AnGeles District 61 full year 1972 examinations
(63 teJTlin.:ltior:s) '.·.-ere revie\·.'ed. Tn six cases ",here the taxpayers
\:11() filed full ye,:]' L.::: returns, the examinations '.-lere
of nucqll(ltc score ;?l:d Gepth. In five cases, tIle C'xnminations
rer.ultC'd in siGnificant reductions to the short period tax
liaLility while the sixth case resulted iri no change to the
short period liability.
74
In th~ rp~ni~in~ 55 cases substitute for return
procedure;; \:erc: u: cd. Vc found tl'.J tin-depth eJ:.lrninJtion
procedures \':l'rc not c;rD]oyl'c! to inc1ucJe: (a) attcmpts to
cont2ct LJ):p:lyc'r,; or other third p:lrties \-lho \-:ould have
kno\oll(·di~~ o[ the LtJ:p::ycrs' incor:l(~ prouucing activities,
(b) specific steps to i~cntify chan~cs during the year in
the u:;·:p::)'crs I Eet '.·.·orth by rcvie\!inL; bank Clccounts, (c)
Cltte~pts to i~cntifv .lSEets acauired or sold, and (d)
attc~pts to ~ctcr~inc the taxpcyers' style of living. The
CJ:,n;;inCltions pri.;::n:ily relicli upon information developed
by the tcr~in.ltion investi~ation. The full year income
computa1.iol':: ,·:ere the SL:L'e as the termination period
ine~~e crn~putation in 27 cases and were the same as the
termin il Li Or'. per ioel incoi".e aclj us ted for annual iza t ion of
the estiuated cost of living rate in three cases. In the
other 25 cases the full year inco~e computations were more
or less them the ter!:,ination period income; hOl.'ever, facts
to support the in income ~ere not fully documented
in the case file. ineteen of the 30 exarninotions \'lhere
the full Y02r il,C01"(, \·:os the same as the termination
period inC01"e involvl?d cases \'Ihere termination period income
computations ~cre not supported by specific facts.
In San Francisco 12 full year 1972 examinations were
revie\'led. In four cases, the taxpayers had filed
full year returns .:md in the other eight, substitute for
return procedures were used. We found that in-depth examihation
procedures, to the extent pr~ctieal, were used in
all 12 ca,;es.
The full ye2r examination of 24 termination assessment
cases revicwed in the Chieilgo District resulted in
recoll'l;lendations for rC'ductions in the termination to.X in
all 24 cases. It 1-:.:18 reco1T!!I~C'nclcd that .:1ssessrnC'nts
totaling $910,200 be reduced by $772,500 to $137,700. If
the e~ses arc settled on this basis, the taxpayers will
be due refunds totaling ~pproxirnately $136,000.
In the St. Louis District four full year examinations
had ],ecn closed 1·.'i th rccor!ll:cnded asse~,Slllcnts of $19,727. /16.
Termination Cisse~;:;l'ICl1ts [or these casC's originally totalled
$83,190.15. There'foro, full year eX':1Jninatiolls resulted in
reductions totnlin~ $63,462.69.
73
The full year exanination of
CilSCS revic\:ed in tLe J~Lcb;o!J'/ilJ
tcnnin~tion nssc~;[;rncnts totalin~
$329,~06 to $338,844. Most of th
oble to seven Cilses.
29 terriniltion a~scssment
Di~trict resulted in
668,250 bein~ reduced by
s difference was attribut-
In Coluwbia the ful.l yeilr exaMination of 12 coses
resulted in reeo~~c!Jdaticns to reduce termination tilK assessments
[rom $634,253 to $28,701.
Contested Cases
Reviews were conducted in the Son Francisco, Los Angeles.
and JocLsonville Districts to deten,ine the Service's experience
in defending termination assessment cases in court, with
particular erphasis on reasons for the Service having lost any
contested Cilses.
Reviews of the Regionill Counsel Gencral Litigation files
for Los hlgeles and San Frilncisco District cases disclosed
that tk·re have been six eor;testee! l'arcoties cases since
June' 30, 1972. T1'o'O cases \Jere in the Los Angeles District
and four cases we'rc in the San Francisco District. Five of
these cases were re'vi~wcd to deteDnine why the taxpayers had
initiated liti[j2tion to enjoin the Service from assessnlCnt or
collection actions. In these cases ReGional Counsel identified
potential weaknesses in the Service's position &5 follows: (1)
ternination incoc:e nne! tax cor.:putntion 110re not fully supported
by specific facts (3 cases); (2) taxpayer had not received il
Statuto;:)' l;otice of Deficiency for the termination aSSeSSf'lent
(1 case); Hnd (3) collection action had been initiated before
the taxpil)'er could have received the termination letter (1
cilse) .
In two cases the co~plilints were dismissed by the taxpayers
based on thc Service's agreement to compromise the
liability. In the third eilSO the tilxpnyer's suit was dismissed
on the basis that the Cou;:t lelcked jurisdiction to
enjoin the aSSOf,Slil'nt and collection of Fec]ernl tm:cs. In
tJl0 fourth C<1SC Lhe judi~c cOl:tinucd the case in 0pl"n status
vii th proccedin~;s s uspenc.icd, penu inG set t 1cl11on t of appeals on
similar cases involv1.n[; issu,Il1Cc:s of Statutory Notic(>s of
DE'fieienc)' for telX yl'ill' tcrejn:.;t:ions. The fifth CilSC "'il5 clo:;
od \·:hon the full )'e21' 0::'I1:,1.1131:1.0n shifted substantially
all of the terlilin3tion 1.nco:;,e to prior tax yc'ar.
iCi
R~views of 11 contested cases in the Jacksonville District
disclo:;ed Lh2t tlt(~ Covern.'cnt' s poo,i tion had heen u)!hcld in
seven cases, the Gover!1l .. c·nt Lad lost one ca,:c in District
Court, and three cases were still pending in District Court. In
the casc the Govcrn:~ent Jost, Chief Counsel recQi',,',cndeG that tbe
Goverr,,,cnt appcal the decision. Tn this case, the Goverm.lcnt
Vias enjoi.llC,d fro',: collection of the aSS2Si;mcnt and \,'as ordered
to return the noncyo, seL·,cd. The tCl::pi1ycr h2d allef,ed that the
District: Director's fincli.r,es 1-7ere made \.'ithout sufficient investiGation
to support his conclusions and without any true
facts to reilsonably support the issu:mce of the tcrr.,ination
letter; that the District Director had not issued a notice of
dcficiency; and that the ten'iination \-Jas nadcc at the request of
the local law enforceDent officials to barass, annoy, and punish
the taxpayer and was not do~e in order to protect the revenue
and collect 2 tax that secsed to he in jeopardy. The taxpayer
further alleGed tr.ilt unless the District Director 17as restrained,
the taxpayer would be irreparably injured, inconvenienced, and
damaged a.r.u his propcrty liould be tuken from him in violation of
due process and ccqual protcction cluuses of the Constitution of
the United States.
In addition, the St. Louis District fOr1:arded seven temination
files to P,e0io;~al COl..'nscl in J:.'"luary 197L~ requesting advisory
opinions as to 1·.[wLhcr the cases \;oule: be upheld in Court if the
tm:payei: protestcd 1:he 3ssessments. The responses from RC[;ionCll
Counsel shOlled that five of tbe cases I·lere I·:eal: from the standpoint
of litigation and indicated little probability of success
should the cases GO to trial.
In the Central Region a decision by the 6th Circuit Court
of Appeals on Fehruary 12, 1974, (Charles R. Rambo v. Unitcd
States, ct . .11.) held that notices of deficiency ~ust be
issued within GO ~nys after ~nking tennination assessnents
under Section 6851. However, the Service position is that such
notices arc not required until a full year return has been
filed. Due to the !1.2mbo decision, rtcGional Counscl sUGgested
that termination assessments be restri.cted und that jeopardy
asses,;r,;ents under Section 6861 be used 'dhen possiblcc .. Regio1l3l
Connsel also s1.:U',estcc1 lh;1t \)hen lerninntion asseSSDcnts are
mnde th:lt property be protected by filing ,:', notice of lien or
hatice of levy in order to freeze the funds or property rather
tban to seize and sell.
Al'l'ENDIX-A
m 0,
00
~
~
0 SUMMARY OF TERMIN~TION ASSESSMENTS
~m
Number of Termination _Total Dollars Assessed Average Dollar Amount
Assessments of Assessment
Fiscal Year Fiscal Year Fiscal Year
9 Mos. 9 Mos. 9 Mos.
1972 1973 1974 1972 1973 1974 1972 1973 1974
Six Test Districts
Columbia 6 29 17 $ 24,563 $ 240,479 $ 75,385 $ 4,093 $ 8,292 $ 4,434
Jacksonville 9 128 100 166,562 2,842,626 1,356,985 18,506 22,208 13,569 -,
Chicago 28 116 91 584,526 3,997,378 13,928,487 20,875 34,460 153,0"60 -,
St. Louis 3 24 16 11,730 807,275 218,953 3,910 33,636 13,684
Los Angeles 72 273 188 5,119,267 9,564,026 6,343,312 71,100 35,033 33,741
San Francisco 37 109 115 2,251,063 1,053,864 902,913 60,839 9,668 7,851
•
Regional Totals
~orth Atlantic 110 179 48 $6,626,955 $9,498,634 $ 1,129,044 $60,245 $53,064 $23,521
Mid-Atlantic 44 106 47 1,380,959 3,331,251 755,427 31,385 31,426 16,072
Southeast 76 283 207 1,424,068 4,750,542 2,247,444 18,737 16,786 10,857
Central 43 161 114 2,458,891 2,124,753 1,561,355 57,183 13,197 13,696
Midwest 59 205 174 1,423,068 6,723,714 15,746,075 24,119 32,798 90,494
Southwest 65 308 184 1,125,315 4,983,487 4,991,736 17,312 16,180 27,129
Western 145 538 375 8,054,995 15,480,964 8,543,360 55,551 28,775 22,782
United States Total
542 1,780 1,149 $22,494,000 $46,893,000 $34,974,441 $41,501 $26,344 $30,439
i8
EXHIBIT 9
1 S :)73
C:lic.f, l'ulUi'; Di·n. ::JiOD
Caicago, rllhoi3
C~icr, IIo~llizer.cc Dl·r.Lsion I:1C2
(luc.'P,o, illinois
deleted
1:c recently att..c:lllcd a public :::..."'C\;ing of -~he Illi.-l0is T:'A l'cbellion
Co;n:tttee in an :..~nG.erccv-er c~pacit:r. rll'n.i:; ':)r~t,.:).niz.e.tion ~u.vor...;).tc~ non
Cf)::pu<'llCC 1rith the i..;S 1mi:!, Gr.u '.>0 1J"ve ~'~crcfcl'o besun to T1Onitor
their \.~~tlos::: c~:u.l Ot:1Cl- ~lated Uct.i4Jit:l~~. i7·:? i~:).ve ;'ounll ·:':'l;~lt :'he
c~~ni~tion i:; .J<Cr'J zu::;piciou3 of' IE:G pt:r~cnn·-.;l :-~tter.dinG ·~~hesc
!,~1)lic ~eti~~, nnd ,,:X! relle"'lc that if ;). ~~J.lc ...·;ere to ('..cco:~!p.n.tl.y
t~~c c?1cial ~..f;c.nt lC5-'J 2.ttentlon t\1.)tl1d l~e (}~l·I',"l to llL~, t.her..:cy
l'::!)rD"'rirl1 hi~ c':JVer. ~hG In'~llit~en.ce D:!.TI:1iDO i!\ }~I)~ ~'\n;elC3,
C;llil"r:li!l., 1,~lch succ~ccfuJ.l.:r ini'iltr~,t~'<1 tb.ia Ol'G:J,!1i.z;~tion in
C0-l.ii':Jrnia, ccr.Deuted t!1at ti18Y '.:culd :mve been vr.:D.blc: to do t.his
'.iituout the u:;c oi' :1'=\10 llcr:;oflllel.
,',c~ow,tin'3 Ckrk cMlleted [-:;.13 l',:"oistell t~ Intellisence
r,ivL:;icn in 0. v3rl.e~J' cf cL-;rlcal n=.sic,l'....iCnts i~ t~12 lY.:\st, m'.d tiO
~cl1eYa that C;1.;l ~:Duld l:c [',n c..v~llent :;clcctiDu to Ccccr.'lpnr'0' the
[;~')Cc,t:il :\!}cnt in the o.ttc~'.innC'e or these ~~ct:!.t:..s;J. ~1!~ £w.s 1ndicnt..cd
to kS iniD~J t~~t ~hc WjUld be ~vailablc to nS$i~t in this
c;;s~:JCnt, anu ".'C rc~e:rt. your approval.
Name deleted
79
EXHIBIT 10
I!xcerJ*tfrca a 1974 lIS IaterDal Audit Report
Thi$ ~itIJi1tio;~ i"'iC)1'1r.d ,lction~ of 3 n~1trnl,t~1 crf~~~(: ~jri(;~rC(l'I"I~
OFC'I~I:~.i'/0:. ':$C'(~ tc sc:un~ if;:or:;l,-:~i~.ln rclilliv2 tn ~;1': ti~;\ ~;:-"'(.)-
tc ':,~clr r",'.,,~,,-,:-:-,,~,,"'t i:, U~0 Lo~ Anr;e:1es (;rcc~. Thi~ o~(~r;),li\'C' ~!~".'j ',:""~-<:('d
hiri"':ci,~· ~~i~':' 2; ;)o~.i~ic:1 of Ju:hcr1 ty \'.'itl, tLc ~T_::.~.~·':',;,7':-:.:~·. __ .~':~"":.~:'.~:" ...~::..~
~::t:::" ..7:".~~'i'~~.~
:~ (j"JCt~r;l'~r;t (P!",?pf1rcr un~(no·..m), sr~cu(r.d by J~jtcn~tli /',';ci: lit tl;~
:~'Jti(\:l."d ,Cfi:icc, !i1t,~~11iqCI:':c D·;vi~ir.~l, rr!~)(1:·ttd :-;:1 t:,: Jr.:t~::::::.
or r~:r undl.~!·cov\:!· Oi:l.'I?~i\';.' 'I':ltil/~ in the L~s r.n~~~~lc::. ~L~,"'.. Inl~
dr::f.\·nt I~C:.2) t;jJt, "Sr·:·'.t~t1·:1'.~ in l:l0. L::ttC't :;',;1":' cf 1~;.::.), ~:"_~
.(\;n~r\~;'!.1'1·'~ ("':'~~';i~~i~(: ir~fc;r>l.l~,~~-rn lhl-oilr;:"i ,·,·-i\'-.:te (~):·CL.·~Si,"\,i-~ .... ~:::;:
L~i~':' L:~ ..: ;'rot!~s:C.·lA b':"~i,~(: tried ,1111; ~\,,") or !~i:: ~:.:.r:::~,~t(::;] :'c~:l:i'/':.
to th~ cr'ir:llr:J1 l1t~\~;~::on 0:1 [t;IC tll:-: lJ~"l\t(~st('t·.I. ;;Ul"irlr, :,:'I'~~:'~
(:~('".r:::~.r;ion5, t;~r. C[·d~1~,:\:.i'/0 (L,tC;""':I;~71':(~ trl,1t lu;(: ~,:.:,; f,r~,;.,'\.~:C;·.: ""'~.'~
r;d:~q to b.i~,(~ Iii~~ (L~fc'~::c IJP:"irJ tile ;S~l:':' of l~!i; ·..·{;·:Jl :';.':;1:'/. 1':I~
~;; ;:(J:.i\'~ (),!!tJ~:i;2d ~\ CC;),;.' ;i,~ Ull~ hrit::~ pr(~;;Jrc:: by ·Li~r: ~I~);''''(! t~;:·('e
i'illi'~it.!u:~15. fot use ~;j ,1 :'iJtion to d~s ..,~i~,s ')ne of ,~l;~ Co"n~j ~,(
[~,":-~ ~t1.Y r.:'"I;t,,~:-:t~rl~J ~f~(~ictl1v,!~t ;'.n.:f ,)(>:nrd:~,::1J' thf~ I:"tJ~~I~~:r~~::>~
tli\'i~i,:\n '~,:iJ l~!;:r to r~o~~iry tile L'.S. j\t~J~"lli_'i' ':1:~d c:i~') ~~~) f"1,C:~;::'1~~r,,~1
rl'''f~dt~~h i:1 OfrJr'lr' fer" U~~l u.:;. /\~Lnl'ncj to ;)'1'0,;'':''':/' (1;;5',':::;- :,;~s
r:-;(_,tin;"l. The: i:'Jtlon h;;S f~il~11y filed in IJorl'Ja:", 1-;//1, ·~.'~l~~l:- ':)lP
Ir.~clli{!'?ncr. Oi'/)si0~1 i~Jd ~~:i:: iljrOt'i:l~tiol1 J'.'JilJblc tn it ~{~\/,~rl11
r;cr",tl:$ b2forc ~:IC: "c~lI,ll fjlin'1 c,l~e."
T;~o UC:L';-.'::nt .11so rlCl~cd 4J~Jt, "T~lQ L!nt.!·~rC(';'/c:r ("Ir'c'...\;~i·,'.~ h:1S :t1~,~'1':0d
hi~ ':O,'1~,:ct!.; 'ditll ~tl:tcr~l~r.ls felJtin~ to i:itcnt llnd fU~L're Gl~f.'r·l-·'CS
of t~',r fJI1Ci\,.'lnq ~fr~ivL!~lw1$ cl/:'r(~:1tiy or rrcvic1(;:;1y ~,;~\:~!~ 1:;,,"C'~,ti0il
Ucn ~y ~i":c ;:ltelli~:u,cc: fJ~vi~,jon lthc doc:JI:;2nt jist: t:1C ,;l;C'/2
so
si:.- nt!t,'r i r.r!1 '.'1 j-,
L./ l~' tc;, ~~~':':; t. ','r I
,"s:C''''j'li z::. l ",\,
ce>,'(:(S ",,' :.1: ".
I": "~-t',""r.~~:','e
,<, r ;-G'
I' ')~- ~.~Y.
81
"I~\·' \':- hl~ :'c'!;,r~ r,:: 'irtlv'; Lc~ n!" ~;:~ (i,' ~';"C~'/-.;:--- t,: ~ 5
Slli::if C ,',S :i) >2 f...:ct l:I'J:' !!t:ii..' Oi'l:r,;l ','l? (,:':;':~(\~"'J (J (, -'J of
t:12 l,r ~f :"J ~~',L; i::·,v'.'l: ":..hrr::c: i'~ I·:\'~''';~·:s. . ;',.:vr.;
b'-.':::; iJ:·.;:~)lc ~CC,1t.f! t.IlJ: b(icf. GL:r :,\~\:iL'''. cr ;>,~s ~',,-;·':'~'~1-.
clrnt"] 'd1t:': ct:'icr :~)tt~rs r"C?lJt;v~ to th."! till prctc~t·:~· i::::CrJ
all0vc, ~r~ CC~ti:l~inq.
EXHIBIT 11
Deleted
/\ ~ S 1:.., t ';: 1t u. '-, . .I; : '~\/
;~('(;:;l '~~<l/j': U,~:. (. '11'::~L'u:":t'~
31;~ "G. r l
L1.1~ /\11 ~~;_' 1r:r; , j -i f ., d: L)
NaIIIe deleted
r.'J ."\.'ClL.!~-;tr.c:. _>.(:t~~;t~·ic~~ ',,~r\; CC;:'i~·il (! \':>-jL:'~illr: ~'r; f",~:'j'!~l',,-~ -:_\i fi1c
(2c' lise :i;'>I~') c: F)':~,_: : ~)1·:~llIl t<t::,\ 'iIV': :?', (:SC 7:.1.1.,\ ~Ii\,,-~\"Li:; ;·il.ii~
((.:.-~r.;:_·(L2l~ ~J.Y l.!",,: Los /\:1 1.:,);,;:.;. l;j.st~·lc 1.~.S. Ir~V·\;lir.':'~(" !J;\'is;~:n. "1"1:-:
II(;~.,l :';,,:;; ....\~:;.,··(i l/l.:';v'," \,'.~;~.~ CC '!'i'ic t~lrfHI~lil i.,1 CI:(jI~':-:~l ci' 1~I;C (:"~C
in\'::!j~('l'i;'":Is (~--{'1':~'; .:.../~) r':)(! otn r=;' dor~iJ::;~nt5 l::)i!icjil~(~(; i.:V :"'~' l:l-~':'i -ii. :iIC~.'
:Ji'ris-i01l f"u!~1 'l~ii'1 io ~;L:: !":·2~~I2r:i:. i;'!:-' 'il-I\<~:;ti\~:,L'icr;s, ~,.11;iJ~;1 f;',ay nl~ I';y
nCJ~ ;'\()\/,::: cl,l:,:ilJ.:t:(.:u 'in il (~~(.n;;;,',~.~il(;Ji":~J:; f:,(' :l\(':~(;(1I~1rf: I, i"';>~ t('1 LI,C
1:1/0 tilrow.Jll ·l'.:i3 tJX J;;"'\~r:;. 1~;~~ f':.11r-,.-ii19 "IS G SLI;;"I:_~ry tJl- i.lil: \i:;,~l.v';i:.;;
{",..x l)P(f(,-"~;.I':)'"". T;I',",·s~_~r.:;t2t.: :D;~ ~':~~-:'.:~~:~ -~G ~.;':;. ~·/;\<:l I~,!
P\~r\:;:llti1r·:~ of F~ilur~' ~o ~·;l,.~ l_J:'..<,,:;:~-;rd',- ;U~lr:; \7.~J:~;
Ii1\\J~ v;;',q Ti,;: ;):·,,_'-~_':<,·:.:2:"'': •••••••••••• , ••••••••••••••.•••• _. 3':J:_~
Totul Fdl~~ ~·Ji~;:~:(jl,-.:·~·~(; St::i.;~:~·:n\"'; In\I~:jI.1':i, ~.·iui'.:; (--iL'];)) ••••• ~fr
Tax Pr'ot:~str::rs Iil'y'(~s~~ q~'tec\ 10~ ra l~c Iii U~:l~J ,l;i::rj
Stai~1li2r:t: (7?JS) 2,1
Psrccllt(1(:~~ of F~l~r~ ::-j ~i-,hnli_;ill'l C;"·.Jt~il;_:n'~s II1,,·'.~'st..i llJi-iO:1S
In'.'olv{flJ Tax Prot;';S'u.:i''S ... ~ .....•.••..•....•.. : ..•.....•.• l~)(f~
-G>}~U"]'~~~I¢ "['I' ",~
-\ \1 i ''';,Hl~ ,. , d; )'.' ,':;
Intci ii~'cilC~ lJi Vi,,;;'il
Attaclii'L~nts
83
YEA],
1~!71 $ 70. S9
lS'7/. 1,3':(,,05
1972·7]
J.,) 7)_ - n. (O:h~ c (''':1 t
\)-(:)
1971 (O~0 count
;)-i'J)
1971
197]. $
19:L39
[;91.YJ
9)0.23
~ECO:';-'.'~!:D.\TIcrJ(:; i\C\j~:2' S IJ;_:-P11(;SL_"~I>i~~D
Tl\}: I'; J/.I'!·_':":'_i';,::<,~ l\_i;:~ ct'~\ ~ 1:-:'l'Fl~:~;'.L
nYj.~J!.'i_~;~'2J~:' OF 1'J'j!:, n. . '.---------
T/'.': Dl}J~
.-------~-
1970
1911
1{)72
$ 523.72 $ S)(~).~S
577.92 9,JdO,()C)
187.19 9,7G5.21
19"10
19;' J
J.97?
1972 .
1972
1n3
1972
lY73
1971
19'11
1972
1970
1971
1970
1971
1970
1971
.')23.73
5// ,,:,,:
J.87.:-'-O
3G5, G'f
3,OS'c.,i)!
96r,i()
1,4 /:1'. (iO
9S0.23
70, (V:
1,3!~!;.O~i
193.39
Sn.59
6,725.39
3,9l2,37
2,GUG.50
75,OJ
l, 98'1 • ~'/,
1,71: r,.I: 5
8 , I: ~~ :! . .r:, ~~J
':1 ~ 1..'.:0 5
("()
I), i0:'.a
7, Oil/... [;2
4,67G.'J~~
15, ':61, 0l.
9 ,!'7(-,. (',)
9, (,('l.. 00
7,(,1:1..61.
12 ~ ~:!C, ~ :1].
12 ;, ~~ (~l e G/1"
6 ,t:l 'i, 3D
6,7GO.70
If7,32S,GE.
7S, iUG. J.L:
(, '7 , (.")2 ,Ill)
J.6, [;>3 ,17
}L.}, <)~/. (}/~
~21, 1:;5. 1./
YEi::
]sn
19iZ
S4
'j .\ \ 1~,~ ,
G,. ~·i··~,;'17.~G
:J'::<J() U.:,,:./3
l~FCO~~~,~~l;n/.,TI()~i~ ~\G'. r.;:~,T (]:::~ \;;,:.~ ,', '.,
l:Ur ;"'(;',,,: (,:'. j;L:T,j;;'.';:) 'rc ,.. ~o> ' ,
'JliC 0]((::,::1 I;::]) 'L\\: F;,C;':C::'iJ '. '::': ,c JU,(-
!;IJ/I1~T '/0 .I~:c;~T',}~_~~,~> ,__,c"o..:..,._c.c__;_
onU3
Q~.Sf.. If..L:.0.. (fl,.'>: Dne C1~"(;:_~ <: '1:7C O>~t: .-.~~ ---~ _.__......... __ .. --_._.' .
1970 :; 6:10,1;1) ~i2}_ J ~1(>!;,. 09
1970 18 , I, P. , i: c; 1;.];'/ :'(1. C'O
19J1 2~n'SS?~(I~j l7 , (1/ :, • .j 7
1970 2.,09/.'10\ 23,1',1.52
1970 {1l3 .1:0 17 ~~~)J. i..:.,S
1970 );C' ~: Co:",~,,~ ,.I-.:r::'} '?J Li- . ??J 7 r ~i 1
1,))J. " " 3:1. ~ ~:~}() ...-'_~
1972. H tl 3::; ;.?~) ~ 13
1970 !lot CO;:'l:;uL:c,l 2C ~ ~~%2. , .)9
19i'O %/:.G3 12,01.8.15
1971. 2, 3G7. • c;;. 19,2(;0.71,
1972 l,t:i'J.G'1 15,17'::.68
1970 J.,J.73.00 7,!~I/I..(j\)
19'1l 242.00 3,3U3.00
1970 2 ,Ii 1.1; .I: f) 19,5SS.86
1971 2,52). n 18~S'33.82
1971 3,S'G7.H\ li.l,573.43
1970 lG,GJ.7.% 34,698.89
1971 9,237.04 34,946.52
J.970 1, (/' ('I. GO 1:2 ~/.~;7 •.3G
1971 [J(-.).C;J • .cJU" 9,].1:').50
1970 119,00 4 .OjD.OO
1971 707.82 7;769.75
1971 l.OU,G) G,897.GC)
1972 . 611.D', $ 5> it, 1. 6£,
C!\.~O)::.:
OF JUT
CL\LlHI
ll!11) L: P
f.lW n
CASE
85
~,,:;'::<:T; TU TJ1L: e;.:~\ .. ' ,.': T.'~T (I>
L C{LJ,:: ,:-,,~ 1:;:']-::)' .'\L ;;;':,Ij .:;
, ~ ;' ;' ~ , I, , I ] J r I :
i,:,:!~~.\:;'!' 'LU l' ";:::.' \~f
" Fa:Z Til::·
lU'~CC~: 'i'~;!}".'i-':,C'~~:: rl~;),C;n.\::'T
Pi/V)' I er" 1<1.1 ~;i.')
C/.. J:'.:·~ J_~~'\/ln,'v~j~ 1I'L., ,:':)'1
, ,;' '/: :,.: 01.' ; (: ).~
L(j,(~ ... ""J~~.],
Ie:,; \: _"J
§§n "i
",,~ ,'\, l ,
Tt,.1-:. II: 7,r(;'_.i/Flj __..... _ ........ ~._ -... • __ '_.0'-
19/2 (D~~ cuunt W-4) 1971
0.\.'0 U~~II,CS 1,'-1,0
jU.OO
19/2
1972
1972
:L97?
1972
1972-73
1972-73
1972-73
1972-73
19/2- i'3
1971 3 , :L2 3 J, :;
1971 1,;'88.85
j97l 1.,871.G1.
l:Jn l,i'OG.rJO
1971 1,1]72.00
1971 )71.8~
1971 1,('73.00
1972 Ih1 ::cco:cd
19,1 ::'"17.')2
1972. 187.19
J.971 .577. S!.
J.972 187.1~1
1.971 ';9/,.3;
1972 633.9:-
1~l ~l2 365. Gi,
1.9'J '. ( 7i\. t')
ln2 SGO.?
19:'3 i ,!:.', ...j. G
Augusta
Portsll;outh
Burlin&lon
Bo:=;t0n
Providrnce
H;>,rtfo::d
Brooklyn
H<111hatlt:n
Alb.lny
Buffalo
Ne\·.'<1rlPhiL'c"
1:,;-1)'-'
Pitt:;b~lr~]:
Cincin:dLi
CIC'vC'lolrd
InJ.idl~.lfJli:~
Chic,q~"
Spi·~_n,J L' 1ti
Det::(' ;.c
}lil~".:::ll:>'-··
Des :!')].:l(
HichiLI
HiJ ." i 1:;; Lt):l
}~:) J l j ,',,; l:
RJcIi"·c",J
P<:lrh·l:,,;l\lf~.
Grccnsborcl
Colll:.th La
At l.JntJ.
Jacb:,()!1VlJ 1('
Loui~ville
Nashvil~c
Birmi.nGh.J.1tl
Littlo Rock
New Orleans
Ok1ahma City
Austill
Dallas
Denver
Albuqucrgue
Phoenix .
Reno
Portland
San Franc is co
Los Angeles
TOTAL
86
EXHIBIT 12
Number of Entities
(Names)
1-15-75
955
961
574
1421
3511
298
8561
8918
1684
278
6720
6218
3773
14996
29431
4403
891,17
5907
33489
6626
2680
4539
n5
872
460
lit 01.
1072
26
2R67
17224
4788
552
3414
1420
1298
6654
8868
4407
33921
3768
8944
18118
15062
8997
85387
465108
Intelligence Division
Investigations Initiated
7-1-73 thru 12-31-74
2
20
27
45
12
6
5
7
64
28
1
8
51
5
2
1
1
3
3
5
97
28
5
~
350
87
EXHIBIT 13
r:~fJ
lifL.\i;)
August 24, 1971
District Directors
to Hlcl~est Region
ATIENTION: Chief, Intelligence Division
from ARC·Intelll~,ence
Hidwest Region
SlIlJJccl Operation Mercury
Transmitted herewith for your information and utilization arC' detniled
listings with respect to tile captioned subject. I alza am forwarding
to you a copy of a letter dated AugusL 11, 1971, received from Actitlg
Director, Intelligence, regarding the listings.
Attachment Name deleted
88
to: Regional Commissioner, ~lidwest Region
Attn: ARC-Intelligence
from: Intolligence Division
Washington, D. C. CP:I:P
subject: Operation Mercury
As you "ill recall, the National Office requested each region to
make arraneern0nt...s for transcribing six rolls of microfill7l ,.;hich contained
information relative to the transmission of money orders, in
excess of $1000, during the year 1966. This phase of the operation
was completed and punch cards wel'e prepared from the transcriptio:1
sheets.
The enclosed listings were processed. The information is arr~lged
by state, and payee names are in alpha order by city. The data
elements arc: payee, to city, state, sender or purchaser, from city,
state, amcuntJ date, and reel number.
TIw source of this information i.s conficJr:mtial. Tho documents
wer·e-mir1e-·nVilll~·ll.ile·l,o-u"·'rit1ilJio-UllaGr's"lGll0.rnG"J,l9.J;.t>rj.9io~JiQ·"tisQd
"thcm··for -invc3~J:f,a1.iv:e-purpos-c3-\·icst?r~Ur~ion·~"ould bo served with _a
--swnmon5, j 1l·USUD1"form;dcscrib-i.ng tho .'g"ociinJoiits.'nccdo{l. "~Thijiji.r.Q.-"
cedure m\l';1. bo folla;:,od and is referonced. in ll'U1dbook. Soctio.n .2]].•9.
\'Ie are mailili1;tfitlmlcrofiiJii i'-or" tho' yoar 1966 to the Chiof at St. Paul,
Minnesota.
We realize that the statute for the year 1966 Hill ~oon expiro and
that the tax year is closed for civil purpoDos. Therefore, the Chief3
ohould mako overy effort to utilize this infor:nation in such.a fashion
as to achiove ma;rJ.m\lI:l benefits. We sUGgest that this informCition be
matched against opon caoo files, and thoso namos showing substantial
a~~vity should' be' matched--ur;ainst baclcgroWld files.
'me strike force representatives nhoulrl be alerted ''"'' .~hoJ·a5't
that this.inforlll'ltionia. aVailaplo.. il,:_thtL:d;(;jtriC:ti..'-·
Deleted
Acting Dirocto,
Attachments
EXHIBIT 14
N~cmber 5, 1970
All District Directors 900
Sou.tbeast: Region
ARC (Intelligence) I
Southeast R.egional Office
Operation Bird Dog
Attached is a copy of a memorandum to the Director. Intelligence
Division. dated this date, which ill self-explanatory.
The list of e%pCnsive automobiles fr(>m your state observed in
Atlanta during the recent prize fight is also attached for your
use as leads to possible income tax violations.
Deleted
-Acting
Attachments
DD-Atlanta
DO-:Bind.nghalll
~1umbia
DD-Greensbo1:o
DD-Jac:k.sOtl
DP-Jack.sotlville
DD~'l.ashville
90
November 5, 1970
Director, Jntelligence Division CP:!
National Office
ARC (Intelligence) I
Southeast Regional Office
Operation Bird Dog
The Roaring 20'8 returned to Atlanta, Geofgja, on October 7.4-28,
1910. l'eople came in aleek limousines, cust.Omized automobiles,
mink and flamboyant dress for the Muhammad Ali-Jerry Quary fight
on Monday 01ght, October 26. Thc Iltyl"a! of the, 20'1' pnwalled
with _les challenging the fEmlal.es for tbe cXlUroe in d)'css and
the brill1tu>ce of colora, wearing wide brSlllDled hats, doublebreasted
jackets, two-pieca suHs with «>&ts to the knees and
some with full length mink coats.
After obsening eX}'ensive custom built ant=biles at the Regency
Byatt Bouse, Atlanta's swankieat hotel, aYrange1llents ",ere made
for the Atlanta District to conduct s~ old-fashioned bird
dogging; tbat i". tbe taking of license nU1l,b'l\'s of. tbc most ''l'l'cnaive
looking automobiles. The agents yeported that the wearing
apparel and tbe i1utQlllObilcli were t"il&l'.stitc yi1l. lI\Ilny of t.he
automobiles in tbe $20,000 to $25,000 cost range.
Attached are lhts by states (oth"r tLan Southeast; Region) of
tbe more expensive automobiles, with their respective license
numbers, tnat vere in At)Anta fOT th~~ o~C8P1on, The li~t ~as
compiled fxOllI autOlllObiles observed at the better bote Is and
IPOtels wbeye fight fans we-re 10<1g1"18 '>,I.e!. in and IIIound the
Municipal ~uditoI1um, the site of ~he fIght.
Also attached are seven copies each of three newspaper arricles
relative to a robbery of after-fi0.t partygoeI9. Writ\en invitations
were sent out to a large number Qf persons for the afterfight
party at the bome of Name deleted II. local.
racketeer who hilS been engaged in the nu1Ubcfli racket. 't is
reported that guests were robbed of from $100.000 to $200.000
in currency. jewelry and cIc,thillg. It sk'llld be lH,tccl. howcver,
that only the following six of tbe victims were wilUng to give
~heir aames and file complaints w~th the Atlanta Police DepArtment:
91
Director, Intelligence Division CP:I
Name deleted
[New York City, H.Y.
Name deleted
Rev 'LorIt City, N.Y.
Name deleted
- New York City Detective
He said he lost $485 in cash, a $175 watch, a
$5,600 solitary diamond ring and his police
badge, number 359.
Name deleted
At lAnts, -Georgia
They lost about $1,000 in l:;lsh and jewelry.
Name deleted
Cleveland, Ohio
He said he lost $3,250 in cash and jewelry.
Name deleted
Atunta, Georgia
He was stripped of $348.
The police reported that several of the oation'n top racketeer.s
were among the victims of the holdup and that it was felt that
these racketeer. would be out searching for the robbers alao.
This information is beiag furnished you for possible distribution
to the othar regions, or whatever disposition you deem appropriate.
Name deleted
Acting
At taclm>ents
JEM/cj
92
to: RcgionaJ. COrL.'"1issioncr, Hid',':cst Hecion
Attention: ATIC-lntelliger.ce
from: Director, Intelliger:cc Division
Washington, D. C. C?:I:O
subject: Birddogging Operation
Involving: J·I'l.haJT,nad Ali-Jerq Quarry FiGht
Attache3. is C1 copy of a r:C'~lOrD.ndu..'"1 cbLc.d l:ovcr~bcr ), 1970, fron
Deleted f.otinG, ARC-I, SouthC.1C;L Region, tOGether with the
rH~vj::,papel{ clippings and lists of C1u:LorT;obile license nun"l>..:.'l'c referred
to there:in.
This infor~1J.tion is fon,IElY'ded for snch actlon J'OU d,;:;cr. appropriat~.
Pl(!a,S0 ,tel HSC US ;';~<.J.t d:i::;r:::::;j,-:':;"or. ~:L1C ~J..dc of this ;,S'f8~:r<l1 o!'
resu.lts oDtcllneci iroil any invc:J'LJig~i'lJ..lUli.
:/(,' ): /'.., (
, R. K. Lund
Attachments
, .•.•• <,
NOV 2:31870
INTW.lGf:NC[ DIVISION
IiiS· ST. LOUIS, MO. ,
I .. :.
93
FORM HI37-A (4-59) (CARDON ....TTA.CHEO VERSION OF FORM 'P37)
November 8, 1971
Regional Corcniooioncr, Hidl1cCt Region
Attention: ARC-Intelli{;Cillc0
Chief, Intulli~cnce Dl,~oion
St. Louie District
Opcr~t1on D~Jd Dog
Invo1vl.:!:;: !ciJHAHilAD ALI - JNillY QIJIJUiY riGht
rINAL REPOIr!'
Rcfcrcr.eo i0 rad~ to yot'.r n:eor8,no'c," di'.tcd !'"vc.reber l7, 1970 ''ith
c.'~.t!" cL::.cnt oJ.' r':-:·:<):r'Z'.:1(~1.'_~l d:..-t.,::j j :uvc;,~)>:;!" 5, 1<;'(0 (;f the Dl::::'cL t cr,
IntGlli;~(ncu Divi~',~(.:l., to 'r:llich H:lS c"'(.td.CtlCJ a. uhect lintitlG fivo
l:ic:::ouri. J.1.CC'1ee m..~·::;bc~·3 noted em (~:;"'venoivc [lutor:.obj~os nt the
AM-r.;UATUlY f5.::ht :iJl AtJp.nta, Gcoq;i:l on October 26, 1970.
J,nquiry rC!3,W~~ll\~ tl1c id2:1t1ty of the ind5.vJ.cl:'.lo th'o.t '1,'1'0 cited
ill l:y 0t~tm.. HC~'0rt of r.:'rch 5, 1971 resulted In t.he l'(!qt~i:;:~.Lion
of their 1;63 i:nd :t~.~69 ~1Ce;.::~ t;-.x rcturrw. 'i.'he 5J·!\'(':.>ti~~~~i.:.i(ln rc-
•.. (c.Jec ~":'!l~.:" ~,,'-;C r':7.r·'..:.ic~ r(~'rCl~tc,:t cu~.'.f':.C'5.(~lt. iJ"1t:\,,;',"\z;\"'J r,'"~O:C! :.'.nt
t.heir t,rj~l~l to tltJ "11-(,')'1 ;','1d <:~J:-:'J ~r~d5.(';::,.t(~d (.':"'.,tJ thd ~ o('c't'~' ''-",iO:1~
Here f.U~)l tbJ.t the::.!' t.rir~; \:er[~ LCJl'e likely 1.0 b~ 01' c. 11l.."c.:i.n<.:tlO
r~thcr th"!.:l of u PC:l"~o:l:;.l ;,att:.-~:.
Teo r-cLw'fj:J of these :Ul:livJdlX':"lr.;, ~'ji.th tho 0):Ccpt:ton of
Deleted lnve b(,:(:l1 .r','::'l'.:cn::d to i:,1w r~icl_~;c.:;t Scrv:·r.cc
Center. It.:o bclir..;-;cd t..~'ct t11::o i'-;~~(;:-lt rl.turi1~ or Li'. Tleleted
a pi·cfcF~dcT'..:~l \'!l'c~Ll('::i.~, \;,::rr:.:.nt fo:r:rl.rrijr:;.'3 to the k1dit L'::.,v5,:;ion
for. pS~:EJi1)J.u ('X2Db-:].tic.H in th:'..t their 11l~P8cti<"n illJ:;.ca.tcd :uw.dequ~\'
o t::~•.x.i.:.l.Jle lll':07,'.C.
Name deleted
Di9VrJ.bt,t:!C?l :
Oric;~ e: 1 cc: Af(C-I J rrid',;cst Lc::ion
1 cc: St. 1<... :.:.L~: Fi1c~
60-877 0 - 76 - 7
94
EXHIBIT 15
Fon~ 1937.'" 14.59) lCARBON ATT'-'CI·H::O VERSION 0. r-CRM 1937)
OctobQr 1, 1971 DIrr:STL:I-3 - ~J:em
SprinGfield FoJ.ice De~·!J.rl~cnt
Sprinctiold ~ !-1issoul"i 65804
P.o
~pr l.ngficld, noocuri 6 ~f'G4
1.1'1 cO!'l.ncctiO!1 \·:lth nn c,fficilll h1'.-,(r,L~L:-::j,tim\, it 1_~ rC(Jl'0~.lt..(:,J
tll:.t rOll chcd~ :rcvr rcc(:>;rc]u to dcl(:1'i,\ln6 if UP) r.bOVl:-nn.L"lt';d
j.ndividml b, h'ld r.n:; "rrest" by ;,':"n' CCP).t'1.0'T(.,
A :Jclf.....~d.'jr<.:'8(;:l ~nyelopz l;oequirins no pv!.• tt'~;(J ~.~ cncl(}:.~J
for ;your conv(-mJ.cmco.
Name deleted
95
Pol ice Headquoners
32J Eo:;t Chestnul E"pre5SWQY
Springfield, MiBOU.i 65802
Phone 862·3551
orcc'.~l "C,C:1'_ Deleted
Inte~~:L-:;-,~!:CE:; :r:\~~'~~'l
lntcrn:::.l )~e"SL'';_C -lCl";~
p, C. :'ox l~\IC) ~lc:~,',::;:1
St. Loui.s, :.is:,VJ.L (-2;
De3.r 3i:--:
1:-1 re~)J:.,.- to ~:c\.J.r lcJ~ 'J:T rpr',,'c" "'c "(;1"',,::',," en C:'. C,,';E:'
-::1 c.c~,~ :.;.~' Co',:; ,r,',lc~:-:
cf tl,c ~;re''';;lC Ce'un::' :.):;cr~:~f"s CL~-'cc, '..;r..; ',rere U::_~>.:.C -t:l " (~
cr:':""',=.;n~ 1.'~:.C ":::'1 -:..h::" 5L:·:)~;:;CJ,-.
Name deleted
Name deleted
EXHIBIT 16
F.JcaJIples of Bi-Weekly Reports of Special Service Staff
• j~·::c'_ ' .:r .1., };'r.J
Three OrgaIUzations
Deleted
!~r';'/J.,:,;·,r ~:,_'~:J J-,-:;.riD of' f.:l-lc~ (';} ~:J~')~;'J C'l'l..>·IIL·.'~l,,:2.G:t~ ill Ll:COlU;;.
LC'2. '.7.L\:.h l-'.."'0C,..>.\<.r~ fC:"~'..".J.i:':'..il j.:\ tll-) 7.:~.", Il"t CJ..'~:_\il.1.~.~ticn
)),'''11c11, T~c1~lic:»., - (O-?, rev. JJ, 1;~6'). lSIl.1,].' tU:J )TOC0_
1;~1'C', t1:'~ CC,-':"lU:..t:,~ 13 lji...,...;n ':In o~·:-<'~1.I1...:n:U,y Lo ::;r.,;cJ .:tU 01."Y11
Tcchl~l<:.~·.l C:,:;;J l'j~c:} l';Jl*t.;ii!~~:l':'; to ~~,.:~i-\~.L~t 01·L~lliv~I.Lici1~.
T!:10 r,.~lt~J.l:) i.::'l~tl_::.~lly ,;,:.r1v·;:~nt::S~oil:J initt:-J. _iJlfc~" \.L.~~ca
c:·:cl);~l-"":'~:J \'-:~<~r~~/cr c~,:,~:~:'t orC·.l):\::~'.t~O:1 ;:.C~5.CI\;J ;'11".) r:--:iyljll':':
on ~lli cl!t.i~~y l:lH.:rc co::~~t..t,~i) iil'] (.Lit,~ );.~:; 1,.,\..:211 <2.C<:t~~tr.:d~
Three Organizations
Deleted
'iYr0u-:.:h lbison c.:~t:~ull::;:~cd lilth l:Dit.';.:d :~t·:'.t:~.:J .i\ir fC';.'co
JnL'J.Ui[;,-:ncc th:; co;.:c:itkQ 1•• 3 l':;CC'i,vc-J Jnf('l~ \ I tiC'Jl tLc. t tLC;)::l
Oi'~"l1i~:,tio;]::; ~:l'O 1;olidL.u10 i'J.i1cb to hoI!", cli'J.ft ls·:.ilc3 :In
C;..rt...n_J. ;;.rid. S'l;C:}011, Dl.":':,.t3 c.r6 h-~lr0 rc\.·,l·~~tC".t to Li~;c fij):..r.r:iJl
2.:::.,J.~t.;:,r;CQ to dl'7_~ft o·,-.:J':,r3 2lrl;~{ly 1n t}lC3\-~ CC::l1~tl~i':"3 \'ul1 b:/
Lv.Jl'~L!;J3 1J'~in:; c',i~trilJ;\LC'd in (;~I\lJLiLy (,1 CO)1"l:C ('.).'irU:JC3 in
t.!:0 tl1l.i.lc..l 3t.:~tr~:J, :.;Lwlcnto CorD l>,)i.n~ {Jnc(J~ll·"':'::':l".:d to L:;cv_i.~
Ul'..lft eVJ.uors.
97
A black militant organization and leader deleted
l·'J~_:-·:-,(:,0.':: l~i:>.:;·,~:.;::>i(:t~~J ·\;'::1~0 Lc1d ·,:it.b off.~(·,1."1,1_8 oJ:
S.'.n Fl.', ,l;'<~';\'r) f)J:~~l'j~cL j,,'~<L.'.i~i\'o to :!:l.~_t,,j.,:.t~~~: ;·.(;t.ir;~~'J (:~
• ";~\ . ~Cl c~:.ll!.;;_,l .en Ie/O CC:.;1itt,,·:: l·~C(i":";):,L.-
tfC03 of Cc~c~~r'~O, 1;G7.
Names of a husband and wife deleted
Co·...Leo of ;:;\.l~:;lLi·~f":: 'c-'::':J,j 1"S: Ol"c.;J :-':~\.') b·_':n rccIJivl:.-t
;:':'~',llc~\t.inj~ .l\·~\'lit ~·.{l C()lJ.'~ctic·:l D).\'l:::.~C'n:J Gr,;t,.1C'r,3 (~l'J l.'Jrl.:)r1/
1.Y Lo l;r.!\~Gt. <.'11 ol",t:;:<Lr i.li::~·.c::.ill.icn of U.. 'J cl~s;,r..~~rv:i~j1{,;
cluflci:;;;,;y :n f·~ctcl·"l i:1:(<;o 0'",.:::1 ly I,ll ",' [deleted by sseI]
98
l·.:':"':.i~_·-,~~,)~t Cc:. ·;-:-<',.i.('iL:r
(Go: ..;'lLl:'; J)
Three Organizations deleted
r.i..~::;]_i;xi.:t:J.l:r r~:v;tv,r L:.~j 1..:c:::n 11:.1:: or (:'.", :·~~.: ... l.:,,~,:) (l_-;.~a.
,'·.CG1r.~.~lJ_;,-~r.<d t.Q d.~~to. (;.1 t;IJ :""H~:fL\C-3 :;_t c·IT':,:d"J ..:~.~.:;h
orc.! ','1.':.:. i;!,O:l :>,'cc~l<l l;" cl.,,:;,;Jy C::';~ d.': ',vl) 1.0:::··.·J.'
~.L:.U.tic:)"\l inf01~~·:ticll \/Ll.l bll l1';C0:)[.'::ly l;ufor,) n~C::f~~lldc.-
tionJ C::"n .~)J r:1ri;~. '.,
J\~,.. " .~ ,:, '.:.;:.ij((Ii:'\~
(C'~'·:":"~"" ,)
99
T' '.' 1, j'~CJ')
In r'''\-:~~Ci:~O to J'ul,J,\' c'.·'-.-::'.~~t.j ~':l t,o j~~·.. ~,~:·,J.r~/'.t.'J
LL.1 r~~!:~l.l'~.J..L.~~y of Q. C(l:.~~:l,lt(~r 1"1'(;::',..:'".1 to ('.~.~,tl..l..l"')
~~l~\ 1"":'.'l.t::'C:1 C'n the::.;''') iJ;:1.Lyj.'.1~1"'J..1 (,\.r~;.t Cl'':;~ :~.~.;~).:1 ... :~'J.
t1""t ,": rCl or ~.;!rI8~"(,;:.it t? Cr:-~':')J~:;:c~.. V.i'j,t~::) l~~~'O r:::'::'.l)
to ('If.i'1~(.',1 n(' tho 1.1 0 s. ;:::t;~·,--:t S.Ji"l.f .lc) .:-~"1 Dcr,;.rt ...
r::nt of In.'Jt,:i.C04 r.:.~:.:h cf. U1:';.~J Pf~~nc.iJ."'J l"~J n.
CC"~ltCl" Fr:"l~~n r.~(l i'l. L":~8\' t'Tr) £11.) til::.!:. i:) cc::l1c',
::,i.bl() ,;i1..l\~illO cc::::'!,tc'r:J 01.' InLtl'.:<1 r::J'I.:mlO.
!,c~ic1. iu rl'r)~c;~it.ly hJiJ"-3 t ...'J~·:·n to 11~~"t:') (\ rr(":~l~\l"l
..dtten for \1:;:) by Co.,ll)JJ.;'.'lC~ l,r.~ to ::~CQ:;v tlv;>
r-.},'j~(n· t~.y:'J f.ilcJ of {J.Q Ul) :> J ~;')(;;"(..:~ SC:l,·...lcJ 2!:'t
DCl~:~l.~~:.-.r;i~L of ...T·L~.st:tC() iJ:~,~ lri.JJ. :·,Cl-/'.J ~o o:i~.,-:,.hJj.Gh
Q. 1...<',,11c £,U'J fc,r Itl'~(:~'11'}.l r::r.!'::1i.l~0 CCL·'.w·j,f;(~"
D~:,;tr~,d. oHic') inrCl~'::,ttC:l i:J J;',',/ 1.;'JJ.n3 l"C'CO:i.\'\.'4
C'<l t!:o Ji~:t (J£ ?..?. o.r,)nJ~)t1.r:-::'J 0:JtH:;~.j 1:1 ~',):""
L:::''ilW,rl'IJ1 of lOjFj6<j to ::-.1..1. f-:-.:;'.c:-.:-.l C(;·~lit!:JJo:,':)!'3.
D~b b;.I'~ nC·J.t·vc;i ~') 1!1 c'~:::,':,-l: :;':;i-n 'kbll .:.::.1 In
n~'H'ly CVi;(';f ~112bnc':l ('.'~'H.t.tc:'~1 N·C,tll.),:·,c'.t,1on 1'M1.'1'):)
{,1'<J bil1~ tJ\lt~':t~tC(t no b?~r::; l'clc',-Jr,t to thin
cc:.,~lt~o,~fn Ofl'l';:lticl::J. 'l'o}q!',,:::o (li,::;c:vj:Jioll:J liith
D!.ott'lct oUicblo ~'~Ll';~''',~) t,),,') l' ~l; 01' ol'C"ni::'\·~~c.r:o
a:-.'.l to tl:()C)o C.'l~co C',:l,":;,.,:y intt:L,tcd l,y i;!,., C0:,,::.'J.ttC()
1'1)',.::::1 Uat f:tQH offJc~n ll.l'O '('JI"! 1'1c,(\01 thb
CC1::::J.tteo 10 in e.'<iuttmco.
'IlI':»'o "'B,:,:'.r'3 to b":l hi:;h ",;cl:~_tl1 t:C'.,t tho C!l.ll'tor
of t:ll0 co,,·!"~i.i,.tC(l \r.IJ_l J.c~'.l to cnf(,l'c~"":I1~ ~'.d,:t("lO
lK~ ,)';'1 to k'ln t;Gi!tral UI )}':;:liUC\::) th:'~.'.t t,o t1Jo
~_\it"l'.nl ::;:Cil;.tty oi: thia C(""'-lY. c!'·...Lu"Jy 1;'J ~!ll1.
:rccolV0 t~:'{c(,llcnt [101<1 C':')lX~r';).~·.l(n ~t'::.(,t c.~·ulot:n:co
nO',r tlut our L'd.Of.licn ~,!3 11.n1cl';,;tooi.
j'j[,ll'lCht: ern 12-1~9
100
Lli-\:cc1:1y l\cpor~ (Oct. 19-30, 19iO)
Black Militant Organization deleted
Durin,::; t.:hi~ rcp0l'l~i;~g ~)cJ.~iod ;1 I.-.c;~lLcr of the
Spcei:11 SC'i..-YiCQ Croup vic'heel tb::- cfJ:ieQ of 'i:he Cllief
Invc::/cJs",tor of the llou0c 1nt.crn:ll c('curi'L:y CO,'li:littcc
to inc-fleet deleted rccol'ds. TIle COI""i ttec h,',d
5uupocned v.1d ous b.:lll.1z rcco,.-J::; ill LI;c S;:n Frenci::;eo
.--'.re<1. An:':111sel:1ents 1:.1vc occ:n Il~~de to rcprccuce certC'tin
;:>::::1'<::> of the: 'i..'ceo).'il~ "nd ,.-c ,.-i,ll forTCll'd th::,m
to th~ Snn Fr.1!1cisco Disl.:xict for ;:l:isist,~ncc to the
_l'cvcnce Cl,f·.cnt Dnd :::])2ci.:11, .--,:~(lnt Cl~;c;iLr:::d to the
ODa C<1ses.
TWo Organizations deleted
1rc l1:''-'JC obtC'tincd ('(ldi tl0D<l1 5ilrO;l~;"1U,On on
both these orr;2nizo.Uons :.;ince ':0 5niti.:ll:cd field
e;·:ilI;;inations.
The reVC'l,UC uGcnt (\:Qshinston field Orfiee)
h':Uldlin~ the c::{~cr.\J.I1i1tions ,.-as cunt2.ctcd and he hilS
rcvici.-cd, at our Su[;~cstion, the volulTJInous info1:".nUon
1101-1 in our files. lIe ~ l.-l tcs our nddi tional
rUe dC'lta l:ill Dutcri211y ;l::;:;ist hi!:l In bOlh thc::;e
c;:cI'lillC'ltiollS.
101
(Cc:
Organization deleted
1:1'J:"C2()~)it:s O[ l,1_:":~CU;3 C.::,~)~;'~ :'~lr, .. ~lcd
'Lj ,l"~j.:;Cl:0, l~.:_~:c~ l;C.Cj1 . _ _cc1s,-(~ ~-"L~' _'ii;~
l"~":] c'".,'cd C\L: t:d.~ -:":'11.2 to 'l'ctJ'l ;,1 L~ :; f r~.::! d ,~(.~l~~ (,·:1:::;
T~'~Y 11c ";~,'-l·i:-:!l{J'(1.. :LULUCD[l': c:':. of ~) it 7_:'_~'. ~·,_·..::::::~s
filed L,)' cCll{l,in sJ-L.)~'.tL·1:_-2J.;~ j~i·2. .:1::-0 ~;.:-·j_ll,:;
rcvic1;cd.
1'1«> Individuals deleted
lclc~:<H:~ C·Jl1L~'.Ct.J i',-:j.C l-.~(\~ ,;j1:h t"~~2 L·.:;~
/.11:.~lc3 Pi;r1 T:\:LJ:0it DisL1:icl:s LO i""f.:~~);.-t in ~J.o;;inG
t!~-2~-,~ C;_"~L3 l)1"C.2vjciJ~ly :illitit1t~(l l)j' ti',~ ~':')r:ci~l S2tvicc
.C:c\.'Ju;->.
Leftist Individual deleted
Five j 1j(12\'l(!'-1~1.1 c~.....[C [11('~ (l:c:~~; (\::.;
1.;-2n:~ clo::r.:J o.~ h:.:.ving no' r(:\'(',,:",:c rotcnLi~,l'.·
1'1«> Individuals and One Organization deleted
inc ret-roj t DL~..;Lrict h.'~.f; ! l:i,':-:i ttc'J :: ;.~: :or,~I~(!':f2
l"c:~~ort :~l:..::(lJl3 chey h~'..\·~ r~vic:·.,cJ tL~ iJlron'.~'.t1()i1 ::"1..:8hiLtcJ
to t!J'C..l in cur IlrO;,o~:ll for ro~~iblc !'\J,;it
['.ctian, t,ut b,J.\.'~ COi"iclt:c1cd tL2t c!~forcc::::pt ~'.cL:ion ,~il1
'noi: result in ccdition,~l tCi;: lL:bilily of "L::yLericl
cOL'~lic,ncc CCi1~c(~t:c.ncc." 'lids i::; one of Lb~ 'Very fc."
102
C'Cr:l::'l1:,'L-lC::S 1:~ hi.lvC received 011 SpeciQl ~c;;\,:Ic,:c G~'0UP
Cll;.jC3.
,~c ~rQ nul:. (~llCStiol1~.1"0 LhQ D_;_:_"L~-lcL c~ccj ~don or It:.s
l'J<'!lt to r"<'::c th2. <..~ccJ sJon t
(:~ OU1." '~:c_:::orl ;11 l(~L:IL~~1.~S
( :·~c CO"'.' .ct;l;cc11'2J) lc.~\'e br.02J 01)~ion. Ii')'.:c'.'c;.·, the ~ ~. '"
ipJ:crr::"..tiOll (\vt't~_l.:lblc il1dicl1.'Lc~~ iJ1G 5.11l11 \' .~.(:l!:1.l.s i nvolved
r"elf be unc1er-repol'l:infj thei): 1ncol"c Ccnd lhcy
Qrc notorlou:J C2J.1pUS and r.nti-Ji:el[t 2c'..:1vi:;t:o l1:'v1n15.
[\1'1'251,: record::; under anti -riol LlI:". 111C:Y n;:,e the
princip[11 officers 1n tho· deleted
nn o[f.:;hoot of ,:he Students fOJ: DCI:'OCJ:ntic Soeir"CY,
end hove been i<1cnlificd 113 l~cr,;bers of cCli..,>:i.n Cc;'::..u;li::;t
front orCcmizQtions.
1h1.S nxclcr is ciled ill this reDO,:;: only [0,: U1C
pU1ToSO of :;'u:~l;estinG that \;;111e J:CVCll~lC poc.c;ldnl r,11g~it
not bc 1.:"l:1~CI~ in ::;Oil;Q C[l.~:;(,.3 .. thc;J~c .:-'.J:C in~;~~~_nc00 ,.-hc'i~c
U
C!n[orcc';'C:l1t <\13(\] ll~;t fl"[;j:.~,nt L~"!' vJ.QICl~ors ,:-otl!.r.1 have
:::;OL:C :::;olul:C'i.y effect l.ll thi::> o'ler~nll b,Al:le (lcalnst
pCl:'::>Ql1G Lent all c1eGtnlction of tIlls GOVCl.-,~1.'2nt.
----._-----
~--'
Attnc11r.1Cllt (our standard lC!ltcr to !mdi t or Collection)
PllHright :crn 11-2-70
103
EXHIBIT 17
FEDERAL AGENCY REQUESTS FOR TAX INFO&M~TION
CY 74
InC(.me Tax Information Requested by Federal Agencies
Which was Authorized Under 26 CFR 30l.6l03(a)-l
Federal Agency
Department of Agriculture
No. of
Requests
No. of
Taxpayers
14
No. of
Returns
48
2 2
7 13
2 2
3 12
14 16
S'O" 178
2
1
1
1
2
U. s. Customs Service
Bureau of Alcohol, Tobacco
and Firearms
Department of Commerce
Comptroller of the
Currency
Federal Deposit Insurance
Corporation
FederaiHome LOal''l Bank Board" .. ' -" '5
, .........
Comptroller General (GAO) 3-" - . '1;406 "1,406*
Interstate Commerce i .. -9: . '4.5 ...
Commission ~. ~ ~.- _ .. -.-'-
... "~, ;-.10
Department of Justice 384 3,228. 10,446
(other than u.s. Attorneys)
United States Attorneys 1,594 4,448 • 18,0,62
Department of Labor 1 2 6
Securities and Exchange .19 95 . 389
Commission
Renegotiation Board .---.! 11 21
TOTALS 2,020 9,291 30,646
* Returns of 710 taxpayers were not furnished but selected
information was extracted from the returns by IRS and
furnished to GAO.

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