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Strange Bedfellows by Howard Kohn 40
T
il HE HUGHES-NIXON-LANSKY CONNECTION: The
Secret Alliances of the CIA" is one of the most ambitious
and intricate pieces we have ever attempted. Howard Kohn
began work on it nearly a year ago, when all he had to look
at was the emerging connection between the Miami-based
Cuban exiles and the CIA. Early on he discovered new details about
the CIA's contracts with the Mafia to assassinate Castro. but the
then-exclusive information was revealed a few months later by the
Senate select committee headed by Frank Church.
We have put together a narrative of these "strange bedfellows," based
entirely on factual information; compelling patterns have emerged
which point to a reading of postwar history that foreshadows recent
revelations about the "intelligence community."
As details about the CIA were released piecemeal during the year
by the Senate committee and various investigative reporters, most
notably the New York Times staff and CBS correspondent Daniel
Schorrso the shape and scope of our story changed almost weekly.
Webs of circumstance and coincidence were investigated for con-
nective details that have turned up a large and concrete pattern of
alliances. These suppressed connections help to account for many of
the aberrations that have pockmarked the domestic and international
record of the United States since World War II.
At several points in the narrative, it was tempting to include inter-
pretations and conclusions. But no matter how inescapable certain
theories appeared, we tried to limit the report to the facts.
We did assess motives in cases where two or three sources, who
would all have reason for different points of view, could at least agree
on what were major matters of policy. Where the evidence was too con-
flicting and could not be resolved, we left the matter hanging.
The trickiest area, of course, is the assassinations of the Kennedy
brothers. So far, no. direct participant has been willing or able to talk.
But we have filled in the CIA and Syndicate connections that surround
this whole area and let the reader evaluate the grim possibilities.
So here it is: 30 years of domestic subversion, bribery and murder
.for the first time, the whole poisoned enchilada, the whole ball of
wax, the whole Bay of Pigs. J.W .
Ror.i.r.va SPA t. WAY
Strange Bedfellows
MEYER LANSKY
Lansky built the Melia into
itkmding multinational corn
porutinn by Immersing it in
banking, real estate, rourism
and gambling. With rulgen-
el* nalista's help. he was
able in open push new
casinos in Cuba.
et51.1./NO .77115rs, y 1:0
42
mums,. A- few months litter, according to CIA tourcies, CIA Rata EYER LANSKY FIRST VISITED CUBA IN
aim OleAtl avert Meet& gtherreehrtuisi enngeeeemanto theevidetice the fail of 1933 an a search for molasses to use
that eventually ecervteled Hiss. in mak= rum. But the island was brimming with
Tee -wine:tat erten Nixon a -national teem/store In 1950 Nikon left other uppers unitles.Lansky befriended Fuigencio
the House to run far the Senate .aentrist the popular Helen Douglas. Batiste, it chubby exeirmy serpent Who hod test
Nem labeled her the "Pink Ude" and his rempnign Jitenatire &- ordained himself dictator. With Batista'e stinc-
len hed leer as a fellow trestle, of communists. Murray Chotiner, non, Lansky opened several new casinos, the
Nixun's campaign meaner and Ms test "dirty tncks" specialist, genesis of the Melee. international gambling
wrote the moor pamphlets. FM I. &cording to CIA sources. Chotiner network.
reteived Most of his infrinnution about Douglas from CIA film thou Richurd Nixon's first lemma trip to Cuba came in 1940. Roulette
the ratency provided. wheels were spinning 24 hours a day, tourists lammed the country.
Nixon won cosily war Douglas and took his seat in the"saute, He was Utin vacation horn his yob as prosecutor in Whittier, Cali-
drunks to the assiet from the CIAnod to =tether from the Syridiente. fornia, According to Earl Maze, Nixon's biographer, the young
RICHARD DANNER
In keeping with Matte tradition, Leneky invested money el the lawyer eagerly explored Cuba and entertained "the possibilities of Siformer F131 agent. Danner
campaigns of politicians et ell levels of goveremete. Mickey Cohen, establishing law mar business connections in Havana." introduced Nixon to Reborn.
the. Syndicate's Southern California gambling chief in the Forties. Whatever Nixon had in mind was Interrupted by World Weir II He was known in the For-
later admitted to helping firtimice the early steps of Nixon's career. The tourists stopped coming, and Lansky shut down. the Cuban ties as a guide to Lansicy's
Accardine to Cohen, the transaction were handled by Chotiner, gambling spas. "Gold Coast," and later
who remained a Nixon edema through his later ascent to the presi- With the Cuban economy Batista encountered political worked for Hughes.
dency. Columnist Drew Pearson reported that, in exchange for the turmoil. To stay in power he timid to make cuncesseme that extended
Syndicate contributions, Chiseller used his influence to keep hook- communist influence. U.S, corporations feared their Callen invest-
ninkem out of jail in Los .Angeles. ments ought be natiennlized. So in 1944, Naval Intelligence asked
In 1952, after only she years in politics, Richard Nixon beceme Lansky to pressure Hatt-stet into stepping down to keep out the
eieue.president. His nomination was shepherded through by Deevey's eonunutusts.
butekrocan maneuvering. Neville abandoned his own presidential Lansky, a staunch anticce-ranuntsi, prevailed upon the dictator;
embitione Dewey threw hi; support to Dwight Eisenhower. Then. et elections weer held, a pro-American candidate skein. and Batista left
Dewee's request, Eisenhower picked Nixon as his running mats. Cube for eight seam of exile in southern Florida.
Allen Dulles, who had become CIA deputy director in 1951, or- Southern Florida was Meyer Lanky 's headquarters in the Portion.
ranged for CIA backing of uhe Euvelhower-Nixtm Ticket. Politim1 He hnd transferred his Cuban crainu business to hotel suites- and
intelligence.--reports of Kaman War mistakes ernberrass* to the restaurant buck rooms along the Miami bleach "Gold Coast," The
outgoing Truman adminisitationwexe leaked to the melte. And 1950 Kefatevcr Senate committee dieeovered shut n major gambling
agency male.; was slipped in the campaign Through CIA front groups. center was headquartered at the Watford Hotel. a Miami Beach
Immeduttely after the election Dulles wee promoted ro the CIA hotel run by Tatum "Chubby" WelTerd. Dne of Wolfrierle yachting
directorship nod his brusher was named secretary of slate. eel-ripen:ems during this time was Richard Nixon. MICKEY COHEN
With Nixon as vice-meettiera and Dallas as CIA deeetur, leutelty When the war began Nixon lied gone to work in Washington Cohen headed the Syndi-
ens imm-arie from federal laws. in 195:1 the J wtich Detainment de nv it government lawyer, Mtn joined the Nave and shipped out 4] cate's Southern California
ceded not to prosecute hen seven though Len IRS intelligence division Green Island in this Pacific. where he built a jungle.shieek, stocked it gambling operations in the
found he was exuding taxa, and in 1957 the Justice Department with booze and ran poker games for the other sailors. He left the Forties and admitted to
Veiled to carry through ell
en attempt by immigration authorities to Navy with tt 51h,U01r beneroll to invest in his new political career. helping finance the early
deport km- On Capitol. Hill the In:Altman. Nixon was befriended by. fellow stages of Nixon's career.
Throughout the Fifties the esteem . of Richard Nixon. Meyer congreesmen George Smathers, a'Minmi playboy -who introduced
Lanske and Allen Dudes prospered. Their femme =treed unlimited, tern to Richard Danner, Smuthers's twee campaign rnannger. Dan-
But then the affairs of a little island in Me Carebbien changed than nee a former FBI agent, had been fired as Miami's city ninneger in
outlook and model malty bOUnd up the collective forturies of the CIA. 1949 after the city eouncil accused him of "playing both eidee against
[he Syndicate and the White House, the middle" in 11 gengtand dispute aver control of the city police
When Pearson Hsu aired Mesa charges In 1519, Chanters de:herniae, a department. Litter, _Danner went to work for Howard Hughes, rte
retracuon. But after Cohen carted to empty dee& Chotiner dropped his Hughes's liaison Io Nixon. and became a pivotal character in Water-
demand. Laver Cohen goq. 'a formal suitemoni It it deputy attorney general or gate, but in the late Reties he was best known Lisa guide to Latisky'e
California, Cohen acid that Ctottner and Nikon tint approgeted him tor uun. "Gold Coast."
reign fun& Ito t4A6, end repeated the Icemen to ash. Ma I Oa or
paten. "During that moose I out ruttnirtg ZOSt of the tunneling and bookmaking Nixon begun socializing with southern Florida's fast-buck entre-
in Lao .angels County," Conon mid. "I romierved are banquet room in the preneurs. Among them wes Churls "Bete"' Rehozo. Danner said he
Hollywood Kruckerhooker Hotel on her Street In Hollywood roe a dinner introduced Nixon to Rehozo m lege, when lite congressman yore-
meeting_ to which I invited approximately 110 aereuro who were coining ends
tee Sr the Iaanthltng intternot . Haney C7rtnrr mill Tee 1 thou/A have a quota
tioned in Miami an "the verge of it physeed breakdown" after weeks
of S2.".000 Cos 1}14 campaign. During the worse of t he evening Ithxontpokeibr of tenet= to the Hiss tine.
anorogtmntely ten miuuttatChothurr voice about hat; an bays. At this mooing Rehoeu, o CubareAmericen, had attended elementary school with
my peep etreeee beesree111010 mut 515.000 but MU did nut meet the quota
Smothers and, like Nixon. had made entire big money during World
tor by Ninon and Chminet and the group wax Wormed they would base to soy
toil the mum sae mt:L" War Rebozo had-ctIrnered the wartime marker for recapped tires
aetWLVIS 1444 and 1952, Pennon repartee, Chormor and limo brother, both in southern Florida, then had lent that money to poor families at
lawyers, repnalentod. Naha unetorlings in let cane and turzeetied ill keeping high interest ralea. Both RehOZO and Smotherswho became pan-
newly nociy client nut of lad. to 195] when Chtuinee ealled befooe the nets in several eaestionable real estate venue-esshared Nixon's
hfcCelleaSenace committee then inVellWilting influence peddling, Nixon inter-
vetted with %mann troenb NteCartby to aanyseni the Imre:04.1ml. accenting earlier fascination with Cuba.
tu rumen. In Meech 1,952 Belisle returned from exile and resurrected his
BATISTA, Cuban president Castillo and Nixon during RICHARD NIXON AND THOMAS DEWEY in 1953.
is Nixon visit no Havana in 1955, The governor was Nixon's first political patron,
"BEBE- REBOZO
Nixon's hest friend made
his first big money by
cornering the wartime mar-
ket for recapped tires, then
lending the money to poor
families at high interest
rates.
ROLLING STONE MAT 70, fire
threw Jake in jail for 25 days and. by 1960, had deported all Syndicate Cuban contacts to supply the CIA with scouring reports on C115111)*.i
members, padlocked the amusement parlors, razed the slope labs troop and naval Positions.. Richard Cain, a policeman on the Syndi-
and cape:mauled all other American business holdings. cate payroll, alto helped recruit Spanish-speaking mercenaries for
At CIA headquarters in Langley, Virginia. rrearrwhile. the agency the CIA army.
began lambing a plan to retake Cuba. The Syndicate's primary representative in the Bay of Pigs prepara-
Under Allen Duller's leadership, the CIA had become the strategic tions was Santo Trafficante, a Florida businessman who had be-
arm of his brother's foreign policy at the State Departmentpro- longed to the ruling circle that administered 'tumbling and narcotics
moting U.S. investments abroad and stopping the spread of com- in Culia..-Trafficante had risen to that position partially because of
munism. In 1954, for example., the CIA helped overthrow a corn. power struggle between Lansky and "Fat Albert" Anestitain, known
mumst-lenning Guatemalan government that had expropriated as the Lord High Executioner of Murder Incorporated. Anastasia
225,000 acres from United Frau, a U.S company with tics to the had lased in 1957 to recruit Trafficante into a scheme to undercut
Rockefeller fain ily. Lansky's control of the Cuban operations. Instead, according to is E. HOWARD RUNT
Castro's lovemment in Cuba piqued the CIA for several reasons. Justice Department account, Trafficante 'betrayed Fnt Albert to The Bay of Pigs operations
The CIA's Soviet counterpart, the KGB, could use Cuba to launch Lansky's hitmen; Anastasia was shot fhe times as Ile at dawn fur officer for the CIA, Hunt
revolutions in Central and South America against, U.S. interests a hatreut. reported that Nixon was the
there. Dulles Wail Street friends already had suffered huge reverses Trafficanit's contact in the Bay of Pigs operation was Frank invasion's "secret action
on Cuba: Castro had confatatted the Freeport Nickel mine, affiliated Sturgis, thgo known as Frank 6-torah. Sturgis was an American officer" in the White House.
with the Rockefellers, and a score of lesser industries, soldier offortune who had enlisted with Castro in the Sierra Maestro,
There also was the loss of the Syndicate's casinos. The casinos smuggled guns for Castro, paraded with him into Havana and, for
had been an open-ended money funnel for both the Syndicate and it short time, served as Castro' a supervisor of gambling.
the CIA. Lanky had masterminded a system that allowed the When Castro decided to eliminate the casinos, Sturgis defected
Syndicate to skim winnings, evade taxes and launder illicit funds at and claimed he had been working undercover against Castro all the
the ennung tables. The CIA. according to agency sources, had been tune... The CIA quickly recruited Sturgis. He led several small pre-
using the same system and the same casinos to hide its payments to Invasion raids agent Castro end, according to his own account,
the underworld figures it sometimes employed. joined the Operation Forty assassination, squad, a special CIA unit
Su the CIA planned to supple Castro with a surpass invasion. set up to assassinate Castro loyalists- in post-invasion Cube.
About 1200 Cuban exiles would land at the Bay of Pigs, nail through Richard Whattley, u fellow mercenary hired for the invasion, later
the jungle and establish a renegade government, thus providing et recalled that Sturgis had several visits from Trufficanteo "Tralman te
ruse for u full U.S. military assault against the Castro regime. The would order .Sturgis to move his men and he'd do it. Our ultimate
invasion plan was developed almost entirely behind President Eisen- conclusion was that Trufficante was our backer. He was our money
hower's back. according to author Haynes Johnson, who wrote it man." According to sources in Miami, Trailicante also infiltrated
definitive inside account of the operation. Colonel L. Fletcher Operation Forty with Syndicate money and henchmen." ROBERT MAHEU
Prouty, an Air Force liaison to the CIA between 1955 and 1963, As the invasion neared, work began on a plot to denoraitze After it career as a "fix-it"
reached the same conclusion. "Eisenhower had never ever contem- Castro's forces by killing their leader. Among those involved in this expert who helped arrange
plated on invasion," Prouty said m a recent interview. "We had pretty plot were Trafficante, Sturgis, Hunt and Robert Maheu. a Howard CIA-Syndicate murder plots
specific instruction from Eisenhower on the limits of our authority, Hughes operative. and Howard Hughes's
What we were allowed to do was land live or six people on it beach
The CIA eventually tried several Limes to murder Castro. President takeover in Las Vegas,
and have them blow up s sugar refinery, stuff like that."
Johnson later discovered that "we're running a damn Murder Incor- Mnheu's tiring led to
But four days before the 1960 presidential election, according to porated in the Caribbean." Lansky had been the first to propose the Watergate.
Johnson, the CIA circulated a memo saying the invasion was going idea when he placed a $1 million price on Castro's life in 1959.
ahead. Two days later, Prouty recalled, "We were told to get 13-26 Sturgis was still Castro's gambling-supervisor when he heard about
bombers ready and to get transport aircraft reedy." According to the bounty from Hyman Levine. Lansky's manager at the Cornodoro
Prouty, npproval for the moves came from Vice President Nixon. Casino. Sturgis win he missed the word along to his CIA contacts.
Nixon was then head of the 54(12 Group, a National Security Hunt, as the Bay of Pigs operations officer, added his personal
Council subgroup that supervised covert actlyttio, E, Howard recommendation in n memo-sent to his CIA supervisors in the spring
Hunt, the CIA agent who recruited Cuban exiles for the invasion, of 1960. That summer the Castro assassination conspiracy began.
later reported that Nixon was the Has of Pigs "secret action officer"
in the White House. Allen Dulles and his deputies decided in August 1960 to subcontract
the job. They enlisted. help from Robert Mallets. an C%-FBI agent
Hunt had been the CIA'scluet political action officer during its
who had worked for the CIA under a special retainer since 1954.1'
successful coup in Guatemala. At every opportunity he promoted
Meheu. an engaging, 5month-talking operator. had qua the FBI in
the same tactics for Cuba.' Through the long fall of 1960 Hunt mus-
the early Fifties to open a private detective agency in Washington,
tered a secret army of exiles. They were run through makeshift boot
camps and shaped into a strike force. Secret I rammg sites were set up 1. Hughes's fascination with sApire..-r, dated lock to the Thirties and Fasten,
in the Florida Everglades, on the Louisiana della and in the Carib- when ha its a firillyssond tonvamiciliteer 1:1911 he filmed Scorrhie , trcrrnt
eased an At Cepone'n exploits Ha mare launched the rimers of George Raft, SANTO TRAFFICANTE
bean. The CIA-installed government in Guaterrudis also provided a tater one of lAttiakv'r anittnitour eviler) front men. 'and of .Jann Harlow, whn
surreptitious guerrilla base. One of the ruling circle that
became the girlfriend of the Syndleater, top non an the West (Oast, Congn
Linkman, administered gambling and
Another was on Cm: Sal, a rocky outcropping off Florida owned
s. These tear had a vasvilie reason for helping. They had buried 5750,0110 narcotics in Cuba. Traffi-
by Howard Hughes. Not only had Hughes given the CIA temporary
custody of the island, but. according to one former CIA operative, an the Island below being evicted, and the CIA. piondved the), mold recesses the cante was the Syndicate's
he'd furnished the guerrillas with an alibi: if discovered. they could cash unhindered afterahe invasion. The intern:alien dies metaled however. primary representative its
vas exaggeoded to make Castro appear %teak, amt they dun heenlesay eneour the flay of Plgs.
say they were rehearsing for is Hughes movie Gerry Hemming, a Agee a CIA proetivIry far overconfidence.
hulking ex-Marine 'w ho conducted drills at one of the training sites, 9 Atcofding to Alfred .MriCratis InVetilt011011 for Thr rattan of Heroin.
later recalled that he helped unload motes lubeled "Tooled" then TreiScamo had detalaSeti some responsibilities 10 Ins ion, Santo Ir. A. Hu
the name of Hughee's parent compeny. Inside the crates were camp father's firdneial repreveniative, and ultimata, Meyer Luilaky's, Santo In con
gear and machinery for the invasion. trolled much-te Havana's to-arise Industry," McCoy wrote. -Marcover it was
re:angrily his rearronsihility in rceuive Milk shipments of heroin from Europa
Hughes !Wad purpose for his patriotism. According to a former And forward theta thoingis Florida to Na,, Y Ink,"
aide. Hughes intended to rush into Cuba once Castro fell and de-
velop a series of resort parks on the beach front, build his ownrumbo HI The passport office had trouble belicsong Sturgis sass double agent and
stripped him arta, eiricnship, II. leak .porannl intervention from Smashers,
airport and buy up a block or two of casinos and set himself up as -the senator from Cabe, 'is memo the deCiodil.
a tourism magnate. Because of the manipulative qualities of casino I I. By lair 19fi0 Sturgis hart become a leader in the ineenastoeiti amens..
accounting, the aide said, Hughes hoped to turn the entire venture ammo armed, flags. Accenting is Flare Turner. en Ernahlunnn who also
into an enormous tax dodge that would banish tax hills forever served with and-Costro group. the I AR tyas"pronably hithriced br despensessed
Hughes apparently expected to reach an necommodation with the hold Lind gambling-thorn Queers Min arargted under Budd."
Syndicate. "Hughes had a lia of tweet for the Mob, especially II. One member of Operation Faro.. Pearl Cernx Restoy, ass chaired In 196 5
Lansky." the aide recalled.' "My guess is that he hoped to form some v,irh book a ringleader 40 0 narcotieq orieratian dad the
dawned wait rcepeosible fee orruggling IS% of all heroin and 15% of all cocaine BUGSY SIEGEL
sort of partnership with Lansky." min de But Pointy Nail totecuteil Wont he enure 10 trialamid specula-
For Lansky and the Syndicate. the Bay of Pigs plan held far tion he intended to Implknic the CIA In the dope opacities. Siegel, junior partner to
grenter significance. Four ex-casino horsesRussell %Aline,. James A popular thoary ttl Miami's.Cuban-Amacian community is that Remy Lansky and Luciano, helped
Plumeri, George Levine and Selvatore Goulette used trusted was leithin by u Eglicial CIA unit tat up is assassinate suspected MOM agents build the Las Vegas Strip
ar othera around.- In n ravish New YorA rimer Mimic; Howard
O. Haut nein a personally attached lb ilia anti-Castro mac. He !Act me dose Hunt conflonod that lie first heard of web xn tnartulnation squad in the mid- and pioneered the concept
friends nilanuel Auntie. the CIA.designaied replemneni for Castro, and Fifties. The Senate CIA committee Found some evidence that a CIA operative of the hotel-casinos.
Artimu basins gneiparent In one of fient's children. Anima Sao knows Bette in Lain Americo sag kilted his the am, Ina Inc tried to Wickman the agency.
Plehoor, Arldrues partner mo. a =RI camping EdgardO Suann, is n business Aecertilma to his sone, icssirrieey. atetwu also hellion the CIA .thn-
pertain. of Rollo:de. lege n mid-Fifties shipping drat that would have given the late 1Canm. as 471
ROLLING STONE PAY AI 1570 47
a firm that specialized to solving problems outside the normal chats- the New Frontier by heaping guilt on the CIA." Allen Dunes was
oda At the CIA he was considered a consummate "fisni" mart. similarly outraged.
Tim CIA officinistisked Malice to enlist Syndicate meet for the Kennedy's appraisal was significantly different He saw himself
Castro Minder, according to the 1975 Church Serwle committee, victimized by the CIA's reckless underestimation of Cestro's strength.
and authorized bon to pay $150,t1W for the hit, Maheu told the He felt the CIA had misled tint and exploited his lack of executive
Chown committee helisiewied inJuully because he feared the project experience. JFK. told an aide he wanted to "splinter 1tic CIA into to
might interfere with his work. for Howard Regan.. who also had re- thousand pieces and scatter it to the winds."
tained Mulfeu'a services. But Mullen said he agreed to the assign- For nearly a decade Allen Dulles had been running the CIA. The
ment after inforrrung Hughes of the murder plottold. according to Bay of Pigs invasion had boar the agency's most umbitioua project
one source, gaining the nilhonnire's approval. ever. Dulles himself had aupereised the agency's end-Castre alliance
For the prejtet Muheu millet on John Rosen, Sam Giancann and with the Syndicate. Ail memos aboul the Castro asmasinatian plot,
Santa 'Truffle:unto. Row:lli and Giuncana, lilts Tratficante, were according to CIA deputy director Richard Bissell, hod gone only to JOHN ROSELLI
rneenhers of the Syndieate's ruling ellte. RoseIles home territory was Dulles. Thomas Dewey also had taken time out from his Wall Street
has vegan and Oicoffnrua's was Chicagohut they had helped itdmin- Rosen', II Syndicate leader,
law practice. according to CIA sources, to help set up front group was hired by the CIA to kill
istratt the Syndicate's Cohan opendinns, in funnel funds to the CIA army. Cuba wan to have been the CIA's
The CIA. wanted Castro'a murderers to be subtle, The CIA's first Castro and Later helped
finest hour. Howard Hughes in Vegas.
propped Neuman, according to the Church committer. was n box When Kennedy eritichand the CIA for the Bay of Pigs failure, lie
of Caatto's nivel ice cigars euntaminated with it botulinern toxin "so was adding insult to humiliation. But his threats to abolish the agency
potent Ono a person would die after euttine one in his month.' But were not taken seriously, The CIA was still a !acted institution with
after Malice's discussants with the Syndicate leaders, the CIA opted away carefully cultivated friends. Kennedy backed down. The
for a plan to spike Castro's food with poison pills that would leave agency stayed. But he did force out Allen Della in the fall of Mil.
no trace in an autopsy, Tral licante found a Cuban emigre' who claimed To replace the longtime director. Kennedy appointed in compromise
to know a waiter at-a reatnerent where Came frequently dined. In selection, Wall Street lawyer John McCune. Dinkins htm-ever, left
early l961, according to Senate testimony, Malley delivered' the behind his master student, Richard Helms, as CIA deputy director
poimia pills and. SI 0,00b in CIA money to Syndicate men in a rendez- of plans. Since MeCone WO a newciamer, he allowed Helms to keep
vous at Miami's Founuairielaheau lintel," his job, which gave Helms jurisdiction over the CIA's "dirty tricks"
When newspaper headlines reported soon afterward dint Castro division end other deep-cover covert activities. Helms immediately
was. sick, Mabee. allegedly phoned a Syndicate contact and exulted, resumed the CIA's private war against Castro.
"Did you see the paper? Castro's ill. Wow, we got him." Btu Castro's Kennedy, miffed at Castro for the intertuttional embarrassment,
illness was not related to the CIA-Syndicate ex...situation attempt; did authorize Some further CIA activities against the Castro govern-
the pills apparently never reached his table. The CIA blamed the ment. But he apparently wanted theist limited to the anall-scale
failure on a Castro whim to stop eating at thedesignnted restaurant, r JAMES HOFFA
The fulled wssusainithon was nut the only setback in the grandiose
tot-and-run raids Eisenhower bud alowed" Undeterred, the ciA Despite intervention from
ignored those limits and returned to its conspiracy to assassinate
plan to retake Cuba. Richard Nixon hod been defeated in the 1960 Castro," CIA officials began discussing plans that called for planting Nixon, Teitinster president
presidential race, a turn that seemed to imperil the entire acheme. a bomb-laden seashell cm the ocean floor where Castro liked to go Hoffa was jailed by' Attorney
According to Colonel Prouty, the CIA had delayed the Bay of Pigs scuba diving or giving Castro a diving suit smeared with a deadly General Robert Kennedy,
invasion because it expected a Nixon administration to approve any fungicide. The CIA alto reoctivnted plans for hiring Syndicate ante- who discovered Htilfa's ties
aid-Castro plan re-gereffiesa of intertnitionel rep-wet:snow. Instead, sins. CIA officials appurently tried to win Kertnedy"s approval but, to the Syndicate.
the CIA now had to obtain John Kennedy'ssuppere a..1 rat as the Church committee could determine, the agency's "dirty
Kennedy was presented the Bay of Pigs plan us u fait accompli. hicks" division carried out these murder plots without JFK's sane-
When Kennedy became president," Prouty explained, "he was mid- nem."
daily told the Bay of Pigs was going to involve an invasion. He had The elnirnenns tension between Kennedy and the CIA flared op
no choice but to gin along." CIA director Allen Dulles warned the in October 1162 during the Cuban missile crisis. top CIA officials
young president that if he tolled off the elan, these would be a -dis- viewed the crisis es a prelude to a second Cuban invasion and alerted
posal prnblem" with the CIA's 1200-calk soldiers, "We caret have the surviving Bay of Pigs army to stand ready. But Kennedy's nego-
them moldering around the country telling everyone what they've tiations with the Sonnet Union produced an opposite result. The
been doing," Dulles told Kennedy. Soviet Union agreed to withdraw its missiles from Cuba, and Ken-
On April 17th, 19bl three months after Kennedy took office-- nedy promised to end the U.S.'s undercover war against Castro.
the CIA army stormed the beach at the Bay of Pigs. The American Kennedy promptly ordered theCIA to stop organirang anti-Castro
people were led to believe the invasion was a righteous attempt by raids and to observescrupulnusly the new truce. By the fall of 1965
celled Cubans to reclaim their lionseland. Hut, tinder the friendly Kennedy was reaching for it formal detente with communist Cuba.
escort of a CIA man, four of Lansky'a casino operators waited in a
boat a few yards offshore. And poised in the Bahamas wills enough SAM GIANCANA
gold to reopen the Havana tables was a Trafeautte lieutenant. The head of the Chicago
Unexpectedly, Castro's patrols spotted the invaders and attacked HE KENNEDY ADMINISTRATION'S FAILURE Syndicate, Giaricana was
T
With devastating firepower. TheCIA army, accustomed only to mock to restore Cuba's pre-Castro heyday also had in- investigated by Robert
hoot-camp battles, scattered in dismay Into swamp and jungle. CIA furiated Richard Nixon, who publicly upbraided the Kennedy, who was furious
officials informed Kennedy that, if the invasion plan was to be sale y ping nresiden t for hang soft on Castro. The former vice- to learn of the mobster's
urged. Air Force bombers would have to fly in with air cover for the president had hoped to reverse the new Cuban policy by than to the CIA.
CIA soldiers. But it was is need nal watt unmet. Castro had alerted ousting Kennedy- from the White House in 1964. But
the Soviet Union. Under that eirculnylcuien, Kennedy leered that a Kennedy's SOcffint,I popularity and Nikon's embnottasing
U.S. air attack on Cuba would be blatant provocation. He refused loss ; n the 1962 California gobermortairaee drove Nixon
to send in the planes and the CIA many fled Ingloriously into Castro's into unexpected political seelusiondashing the hopes of
prisoner-ofsuer tannia. the CIA, the Syndicate. liovnird Hughes and all others who had
invested in him.
No event since the communizetion of China in 1949 has had such
a profound effect on the United Stales and its allies as arm defied of Nixons demise seemed to assure that JFK would be president
the U S.-entitled Cuban invasicrn brigade at the Bayer Pigs," Howard through 1905, After that, Kennedy's younger brother Robert stood
Hunt Inter wrote, Hunt blamed Kennedy's "hetrayat" of the CIA. an excellent chance of MI-writing the presidency for eight more years.
and felt JFK's.subsequent investigation was intended "to whitewash ity that lime it might heir late to undo till the Kennedy policies.
The Syndicate, in particular, wax suffering under the new adotinistra-
caw. Pow, Ill atittolle Ohomis u monopoly an oil shipments from Saudi nen. JFK had appointed his brother attorney general. Bobby had
Arabia sal:louge included i7uayfhe Chassis's zoom and planting raises/maxi been an investigator and Jack hod been it senator on the McClellan
,,duet him in n CIA-smiled newspaper. In ether ,worn totamony hilehee Lona
admin.t to I,irhaR u bbiLaisso tor wt nridt.lutsed Mil "sensitive" CFA assitin- Senate committee what it declared-a war on organized crime in the
mem_ And itecintilind la the 1976-House CIA Ronan, lee CIA oisad Mnhcu ICI ROBERT F. KENNEDY
pratide Jordmi's Kina tizoisom end other rotator 'Cadets with "famie own- 16. Amnia Oman involved in them -minions were Botrnre Baker. Euacilin Kennedy quadrupled the
pitmen," Martinez and Frank Sturaisnd at whorri later became Watagae rangier, size of the Justice Depart-
14. The assassination planned was eitenarned at one paint when Ginn.na
sulocosal illst his uttillictutPhyiliat McGuire of she 140.3aire Sisters, was having 17.During the early glares. oecordine to tic Owed, committee. the CIA ment's organized crime and
miuntanC4 a secret "Execution Action droop" tot up, in the worda vi onc
us affair with VP,I,C,S1.11 134n Rut, an. Aceur4ag in she Church atimmitioa, racketeering division and
official, to develop "methods for the recitisval of unfriendly leaders,"
Mclicaelred a nrbew Owenta in hug flaswaris hotel roam-ln Ins Vapor, But compiled a "hit list" of
nte private OVA/. caught and the CIA had in ea reek on rho FBI to cover up 18. Et November iatit Kennedy artatided to New Fork Time, moaner fad
theincident. mitt that he cis under pressure Own the illuallannee CalnktIlillty to order
43041 Syndicate ridges-
II. Frank Siergls Iwo Yoe !Jaw Fork Daffy Now n - ,1401Uir different account Caterols assasarrostma. According to svoie, lilt sent he opposed the Idea
of Chu inurdet attempt. Snouts said that 11 elloonInte melt, frit whith Castro find mums he fen the should norm ha patty to a pnitti.ti swateinounn Sg...cpr
I s miming fondness, was spiked with the poisors Bat when Use waiter delivered Smother. oo fried or Castro, saw he had (told s simile conversation dutios
;ha mutt his bands shout. so herd that Castro Oriaine muspiciow and had the alety 1462 in which Kennedy 'was array antitankcn saainot tatting that Lasowrt
drink atietrecn nation) Ilse."
k-DIJJAW STONE, MAY 311, 1975 19
lute Fifties. In 1961 the Kennedy adntinistrittion picked up where the been used as it patsy by anti-Castro The motive of this
McClellan left afar would, of course, be the expectation that after the president wits
Robert Kennedy quadrupled the size of the Justice Department's killed. Oswald would be caught or at least his identity ascertained,
orgentzed crime end racketeering division and compiled a "bit list' the law enforcement authorities end the public would Ebel{ Rome the
of 43nO Syndicate targets. Near the top of the tiff were Chicago den assessination on the Castro government, end the call for its forceful
fainGlarratill. New Grimes drat Chios Marcella and a business overthrow would be inenetiNe," the lawyers wrote in a meinci, "A
partner of theirs Teamster president Jimmy Hat it, RFK had dis- second Bay of Pigs invasion would begin, t his time, hopefully, to
covered Hol's brake to the Syndicate while on the McClellan com- end successfully."
mittee, and his pursuit 'of lire Teurnster bass lied developed into a Although Oswald was never officially identified as a CIA agent,
public vendetta. Haat reuilinted fay cempiagning for Nixon in 1960. his Life Watery showed a remarkable similarity to the behavior of
Nixon, in turn. intervened at the Justice Department to hold up low-level intelligence operative, AS a CS. Marine in theiats Fifties
Hot% indictment for muse of fLerh. he had bean given a top security clearance to a CIA.kponsored LEE HARVEY OSWALD
Bet once RFK ioakatmmand of thelusuce Department, he moved base in. Jamul. Shortly thereafter, Oswald defected to the Sevier
quickly ugeinet Haifa, leveling charges of tiny tampering, kickbacks Union, somehow paying u 51500 travel fire even though his blink Although officially pegged
and a 52 million penmen fund swindle, The young attorney general account held only $2113. He churned to he a Marxist and stud he as it self-styled pen-Castro
ates mitsatcd deportation procesdinipt against. Carlos Marcella. planned to give military secrets to the Soviets. But the U,S.S.R., zealot, he may have been sit
When he began investigating Sam CO-ennuis_ however, he found the according to a former Soviet agent, was convinced that Otevald was unwitting pawn in a con-
inotmer involved In a disconcerting Owl with the CIA. a double agent for the CIA. Two years later, in 1%2, he returned to spiracy to frame Castro for
The CIA, he learned, was a partner with aincenaM .the Castro the U.S. and, despite his prior admissions of treason, was headed Kennedy's murder.
murder plot. RFK was furious, but not shacked. During Ms Mc- back his citizenship papers.
Clellee committee renure he had tried unsuccessfully. to subpoena Then, in the summer of 1963, Ouvadd surfaced in New Orleans us
Les Vegas mebster on the CIA's protected liet, "You can't touch Site organizer of a pro-Castro group, with himself asks only member,
me," the mobster had boasted. "I've got immunity," He spent the summer in tits eye of the local media, as if Ile warded in
As attorney general, however, RFK did not evens as intimidated be remembered far Ms prreCeutrn antics. He distributed pro-CaStro
by Syndicate 101_lit from the CTA. in the summer of 1963 Janice leaflets and picked lights withanri-Custroites. Oswald's pro-Castro
Department invesugetors shadowed Gieneunu at tenaciously that leaflets seemed suspect because they were stamped with the address
the-mobster usksel fOrjudicial relief so he could play golf ivitbnui an of a building used by n CIA front group the end-Cuero Cuban
audience; _RFK later had him booked briefly on contempt charges, Revolutionary Council that Howard Hunt had helped set up donne
the liesttinit untie 1942 that Giuncatm had seen a prison cell. In the the Buy of Pigs openttion. Piles -of .the same literature were found
fella I RFK announced he was taking his hest come lighters to later in the possession of Guy Bannister. a former FBI agent with
Las Vegas, the Syndicate's biggest domestic gambling center and the corinewuns to Robert Mantle, New Orleans don Carlos Marcella
home turf of 'atm Roselh , unother Of the CIA'a partners in crime. and Hunt..
At the same time John Kennedy begnn enforcing in ban tin and- This circumstantial evidence seemed to support the theory of the
Coop activates., a policy that promised to end any chance for a two commission lawyers that Oswald was an unwitting pawn in is CARLOS MARCELLO
Syndicate return to Cubit. In the summer of 1%3 FBI agent; were conspiracy to frame Castro fur Kennedy's murder. But the theory New Orleans don Marcell
sent to the Louisiwaa delta where tthey broke up en anti-Catgut camp still lacked proof. Then New Orleans district attorney Ian Garrison was a prime target of RFK's
and seized El terrorist arsenaldynamite, bomb ...singe striker as- ennotuteed mu 1967 that he tied secured the proof. He named Clay deporention efforts. hiarcello
semblies, primer cord and blasting caps. The camp bud huh run by a Shaw, David Verne. and Edgar Eugene Bradley as members of the begged the Syndicate for
CIA front group mid had been reined by the brother of in former oanspirucy. Garrison's investigation Was burdened with several un- revenge against the
Cuban casino owner. In September the Kennedy government issued reltuble witinies, however, and soon floundered. Shaw was acquitted. Kennedy's.
tough-minded warmem to set and-Casten Pertisam; ernang them Fame died arid Bradley was shown to be the victim of a missekeli
was Fauns Sturgis, then minting B-52 raids against Castro. identification. But G urn eon's probed hip rod lice some new enidenen.
Castro responded with it message, watt through diplemetie chan- Richard Helms, whit had been promoted to the CIA directorship
nels, asking Kennedy for a personal audience to discuss improving in 1966, apparently took Garrison sertausly. During Garrison's
relations between the two governments_ Kennedy teemed willing. prosecution of Shaw, a New Orleans businessman, Helms besiame
He authorized a French journalist In serve us his personal emissary especially anxious, Victor Marchetti, a nutetulter for CIA stoutmeet-
in sounding out Castro's ideas, ings at the time, lutes minded that Helms repeatedly risked his depu-
Castro feu Kennedy was sincere in this overture, In en interview ties: "Are we giving Shaw all the help we can?"
after Kennedy's death, Castro had this rieserstent of the American Garrison claimed he bed lost his case the day David Ferrie died.
president: "He took many measure, against us. Eta I speak to you in Garrison had counted on Ririe to I um state's evidence, On February
all sincerity end try to Alec you the opinion L have of Kennedy. T say Lgth, 1967, Garrison had revealed lam us a member of the alleged
that truly he was one of the few men who had enough courage to assassination plot. Four days later Ferric was found dead of a
quesuon it policy and change it." mrieve brain hemorrhage..
But as Kennedy moved closer to a (,1,g.-Cetut rapprochement, be Ferric bed a curious background that included work for both the
came further in context with the CIA's unforgiving anti-Castroism. CIA and the Syndicate. The CIA had used him during the Bay of DAVID FERRIE
Dulles's protFages remained so unyielding in their resistance to Castro Pigs preparatione to train pilots for the invasion, and he had showed
Ferric, a dedicated anti-
that Kennedy told friench ire feared the agency had become Ion up again In 1962 at an instructor in an anti-Castro Pump -outside Cass-Emile, worked For the
autonomous. He felt that the CIA's "dirty bricks" die:stem partiee- New deans, At the stone time he was serving as a pilot and legal CIA and the Syndicate in
holy was not responding to presidential orders. John McCune, as investigator for Carlos Marcella. a Syndieate:leader with a personal Cults-related fobs. lie once
Kennedy's CIA director, seemed unwilling C1T unable to overcame the stake In Cubs. Ott the day Kennedy died, Ferric end Marcella hed said that JFK "ought to be
independent nature of the CIA's old-time covert operators, Finally, been together in a New _Orleans courtroom attending Marcellu'. shot" For his flay of Pigs
in mid-November 1%3, Kennedy ordered his aides to get ready for trial on charges that grew tee of leFle's attempt to deport the New rule.
more thoreugh housteleiming at the agency. Orleans don, Ferric was n dedicated eno-Castroite, At one point he
"The CIA will levee to be dealt with," he told aides shortly before groused aloud that Kennedy "ought to be .shot" fat his role in the
traveling to Dallas for it November 22nd motorcade. On that same BayOf Pigs. Rut Garrison found several seemingly rredible witnesses
day Kennedy's ernmary opened talks with Castro in Havana. And who testified that Feint bad been seen eonferring privately with Lee
according to the Church eosin-sitter-, the CIA also chose November Harvey Oswald in late summer 1963, a anie when Oswald was
Maud to begin yet mother plot to nesussitune Castroin continuing making public claims of pre-Cestrnisrn.
defiance of Kennedy's new also in lute summer 1963, Verne =lied the Chicago phone number
But by the end of the day Kennedy's plans were dead with their
pauon in Dallas. rat matien tird_workast odder tianinem when ants woroagents in tilt FBI's
Clamgia bureau &Max World- War &mender later 'Smartie a prime unveil-
The Warren Commieenn imesugated the Kennedy aseassioution pine and trattli nut hi. steals to Marcella. But flannisier's major ppoecuption
end, after len menthe attributed it ea the personal derangement of was minting commit., let the Ali114:01Prialetha LalterC of
Lee Hurray Oswald, whom they aeaCribini ItS a pro-Castro zealot. die Caribbean, which took part in urn Guatemalan coup Xe-tat that Haat
tiered el-theorem fel till' CIA.
The commiedores official report made no mention of a conspiracy
21, the-risen'. micautettion neenenev mistook Bradley for 'Eugene Halt
to kill Kennedy, even though two coottragems lawyers raised that Eroding. Arcoedica to Peter Noy., If prize-winning 1-1/5 Angeles newsrnui,
pewsibility during the inveittlention. According to a document de- Wading had n haw ariciums oglisc the .7e building and an the wee door
classified a decade later, the lawyers were warded that Oswald had as David Ferric. EratliUs and leak Ruby eine ...faired ilia same Dell= office the JIM GARRISON
day before tie JFK aeansalnatio', lannedleady after ithe avelainetton, /trailing New Orleans district attor-
1.9. The ponidaat'a inflamed fortune made him inmonimeraMe to day luihe ass ptacd sip we rite Keno bur wair releped when he rote le-Okt Lin WS an oil
offer Fran, the Syndicate. Bia in early 1961 Judah Eaner, a torlfrhard or Sam company reprennleillen, gramme. reel :oh, ...Omit m Naya% was farryma ney Oarrison said he found
Glenda-di and lobo ltutatill, coma bET r ery true Kennedy a preside tmet bed, a illicit money Far the Syndicate, Thu Warren CurroMpiOil. however, Learned none a conspiracy in the Kennedy
citcometenee that wad lone gips the Syndicate leverage truer the prom; or We itirorastainn. assassination, but claimed
peaietern There le no evidence, however, that ILK memmeit to any present. 21 E. del Vane, a good Mood of Ferriel who !sad taken part in anti-Camsn he last his case when Foyle
Aecording lu the Senate CIA ripen. Kennedy dropped Einar finm hie schedule rains with him. sou round oho; and Imatcheind to death on theserne day Ferris
immediately arler teeming of her ailderwOrld friendship, diet.
riled.
SO ROLLING, STONE, MAr JO. JOGS
of a young woman who, un the day before Kennedy's death. arrived not volunteer to brief the other corrusinsion members. Nor did he say
in Dallas in the company of a man who met twice that night with anything about the agency's various assassination plotswhich,
Dallas nightclub owner Jack Ruby. The next night, after OswaW's according to Frank Sturgis. had been expanded to include targets
capture, Ferric took a burned and unexplained IOW-mile car ride within the. U.S. after the Bay of Pigs. (In a 1075 interview. Steeps
through a ramsterm to a Houston ice rink, There be monopolized said that in the early Sixties he had been asked by a CIA agent to
a pay phone for several urgent calls. Hours later Ruby went to Dallas; take part in an unspecified "domestic" assassination.'
police headquarters and gunned down Oswald. FBI agents interviewed Sturgis shortly after the assassinau an rind,
Afterward. Ruby allegedly told has psychiatrist that he had been according to Sturgis, told him: "Frank, if there's anyone capable of
"part of a plot to kill Kennedy" and also said he had expected the killing the president of the United States, you're one guy that can
Kennedy assassination to lead to another Cuban invasion. But the do it." But the FBI's investigation of the murder was no mitre reveal-
Warren Commis:dun decided that Ruby had acted alone, out of a ing than the CIA's. FBI director Hoover harbored an abiding resent-
psychuttc patnotam, and discounted a memo prepared by two com- ment of the Kennedys. Hoover's oaten:11 posture was that the Syndi.
JACK RUBY care did not exist as the powerful organization portrayed by the Ken-
mission investlguturs that profiled Ruby es a lackey with Syndicate
Ruby, u Dallas nightclub eonnenions. nedys. And he had been embarrassed when Syndicate informant Joe
owner with Syndicate ties, At age 15. Ruby was running errands for Frank "The Enforcer" Yalachi testified in 1962 to a litany of Syndicate crimesbribes, exe-
killed Oswald and said he Nitty, heir to Al Capon's imago gangland empire. He became a cutions. narcotics deals. gambling skimsin nationally televised
expected the JFK assassina- small-time hustler, selling "tip sheers" at racetracks and peddling hearings arranged by RFKas Justice Department.
tion to lead to another sidewalk watches. In 1937 he obtained a top position m the Serail But, for the Warren Commission Report, it was the CIA and the
Cuban invasion. Iron and Junk Handlers Unionwhich one FBI report described as FBI who were doing the investigating, They were not being investi-
-largely a shakedown operation." Two years later the unions founder gated. The Warren Commission was mildly troubled by Dullts's
was inurchaed. Ruby was held briefly for questioning but was not admission that the two agenciesin keepmg with their secrecy stand-
charged in the case. ardsprobably would not tell the truth about any operatives in-
Robert Kaamealy later singled out that murder as a crucial step in volved in the assussination. But it suppressed its qualms and did not
the Syndicnte's takeover or the Chicago union. Paul Dorfman be- consider seriously the possibility that Syndicate leaders and anti-
earne union president and. according to RFK, quickly formed an Castro extremists within the CIA conspired to kill the president,
alliance with Jimmy Half& "Paul Dorfman and Jimmy Hotta arc as
ant." Kennedy wrote in Tae Enemy N'ithin. "Everywhere Hoffn
goes, Dorfman is close by." By 1963 Chicago don Sam Giancana and NCE FREE OF KENNEDY'S RESTRICTIONS
Carkn Marcella shared in his friendship.. The 1950 Kefauver com- Me CIA intensified its efforts to overthrow Castro.
mittee found Ruby had links to Dave Yaras, a merriber of the same Three months after JFK's death CIA agents were
Syndicain circle as .Dorfman and Haifa. already planning a second invasion 01' Cuba. Howard
Ruby went to Dallas in 1947 to open a nightclub. In 1956 the FBI Hunt was In charge of the plan, according to investi-
received a report "that Ruby is the (Syndicate) payoff man for the gative reporter Tad Saute As a prelude to the inva-
SIR STAFFORD SANDS Dallas police detertment." sion. the CIA equipped a human with an automatic
1-he telt-pound Bahamian In August 1959 Ruby visited Cuba at the invitation of Lewis 1. rifle to shoot Castro. But, according to Szulc, the
official was so blatant in his McWillic, a farmer World War II black marketeer and manager of CIA became discouraged when the assassin delayed
arrangements with the the Trope:tine Casinoa man Ruby said he "idolized."" At the lime the hit and tinally- was caught Ity Castro's men.
Syndicate that the locals Literacy still was hoping Castro might keep the casinos open and Most CIA officials began to concede Cuba to communism.
were angered and Lansky Ruby apparently was offered a casino job. Ruby stayed for eight days, Castro's instinct for survival was uncanny. And Vietnam 166.5 luring
was forced to oust him. then returned the next month fore two-day visit, He did not take a CIA "dirty !netters" to the other tide of the world. Through the mid.
Job but lie did contact Robert McKeown, a former gunrunner to Sixties there were more assassination attempts against Castro and
Cuba. According to McKeown, Ruby offered 515,B91) for help in more harasament raids to Culla. But by 1965 the CIA had abandoned
freeing three men being held in-Cuba. McKeown said Ruby told hum the second invasion plan.
someone in Las Vegas was financing the project. But the deal appar- By then the Syndicate also had Trust interest in Cuba Meyer Lansky
ently fell through. had found a new home for the Mob's offshore gambling empire in
In 1961 McWillie left Cuba for Nevada, where he took a Job at the &humus.
the Cal-Neva Lodge, a hotel ettilnom which Giancana allegedly held The Bahamas held some of the same attractions as Cabean easy
an Interest. By then both Ruby and McWillie were outspoken foes plane nap from the mainland, hick-and-seek tax laws, the warm
of the new Cuban regime; the Warren Report describes McWillie as a assurance of bemgn weather. There was no Batista. But there was
"violent anu-Castroite." According to several witnesses. Ruby went 30(6pound Sir Stafford Sands, the Minister of Finance and Tourism
to visit McWillie in Las Vegas in October 1963.. and a politician of porcine build and appetite. Sands was boss ota he
That tame month Ruby made several other calls to men with Bay Street Boys, the bloc of colonial merchants and politicians who
AbilikW ir
Syndicate connermana. Culls went to Paul Dorfman. Hotitis trusted ran the archipelago of palm trees and white sand.
4 confidant; Irwin Weiner, another Hoax adviser with connections to Sir Stafford later testified that Lansky had approached him in
the Syndicate's Chicago chapter; and Barney Baker, described by 1960 with a bribe el 52 million to he deposited in a Swiss bank ac-
G. GORDON LIDDY
Robert Kennedy as Holfa's "ambassador of violence." RFlea count in return for a Certificate of Exemption, it piece of legalese
In early 1912 Liddy was Justice Department had put Baker in jail but he was released shortly needed to operate a casino in the Bahamas. Sir Stafford claimed to
ordered to break Into before the assessination. have refused the offer. Instead he hired out his legal talents to Syndi-
Greenspun's safe after it Ruby did not explain why lie was talking to Hoffn's friends. But a cate front men: for this, Stafford collected 51.8 million in legal fees
New York Times' story re- major topic of conversation in the Hotta circle during 1962 and 1963 and Lansky's men got the Certificate of Exemption. The casinos
ea led the whereabouts of was the Kennedy administration. According to Edward Grady opened in 1964 to the ettendant buzz of the international jet set.
Some damaging Hughes Partin, a Baton Rouge Teamster official, Holla complained that
Memos, Bur Sir Stafford's arrangement with the Syndicate became so
"something has to be done about that little s. o.b.. Bobby Kennedy" blatant it angered local Bahamians. "The natives were restless,"
.and suggested blowing up the attorney general in his convertible. crime reporter Hank Messick wrote. "and Cuba had proved the clan-
Carats Marcello also had asked for revenge against the Kennedys. ger of betting everything on a man or a political party that 110 longer
according to a Marcella associate who talked to a government in- enjoyed popular support. If gambling was to survive in the Bahamas.
',name:aut. Marcelo allegedly made a &email.: plea in n secret Syndi- it was necessary to turn control over to a government that offered
cate meeting: "Linuril nu perrerill hi sr:agar i'Take the stone out of stability."
my shoe") According to Messick. what followed was the slickest maneuver
At terse point the Warren Commission did seem interested in of Lansky's career* he engineered his own revolution against Sir
whether Ruby tit into the Syndicate feud with the Komedys. It asked Stafford by having un aide become a secret informant and leak cer.
Richard Helms to investigate ties between Ruby and "the Las Vegas tain information about the Syndicate deal with Sands. According
gambling uortuntinity." Eight months later Helms replied 'that tee to Messick, it gave the With Street bursa! a Pulitzer Prize and led to
CIA hod found "no information on Ruby or his activities." Sir Stafford's sudden retirement In 1967.
Allen Dulles presumably was the only Warren Commission mem- A new government headed by Bahamian-horn Lynden D. Pindling
ber who knew of the CIA's alliance with the Syndicate. But he did replaced the Bay Street Boys. Pindlmg looked as shining and clean
as the sun in the morning. But Messick discovered that Lansky
HANK GREENSPUN In 1967, ActOrttiit9 la UM matitame, Mimed* engineered as effnr; no
spring Haifa from tug federal prison cell. Along with other Syndicate chieftains. secretly had shoveled thousands of dollars into the campaign that put
'Las Vegas Sun' publisher .ncluillue Santa Trofflainte, Maredio offered a SI minion mix fat the ley Pindling in office.
Greensputi gathered a box- onveninuant Amen Iv recent his unttrenny against Holfo. Hut the warm To complete the housecleaning, Lansky's front men also
ful of Hughes's private dechtled. were removed. The new power in Bahamian gambling became
papers and information 24. le a March ifith. 1964, memo. lee Fin admitted it knew of
links To the Syndicate, "It would appear McW Illie solidified his Syndicate con-
the Mary Carter Paint Company. On the face of it there seemed no
about the S100,000 donation reason why an obscure paint company should venture into the
necnons through his insoclation in Havana. Cuba, with Santo Trellicente
to Nixon. Inaii Meyer and take Ladaity,- rambling businessor why the Bahamian government [Cant. on 77j
ROLLING 57050, MAY so, /1176 17
but Maloney cajoled and felt The gram and the magazine
op the old geezer, and tit last changed hands, and ,Sfaioney,
Sam was won over. after a hit of .mall talk, mid
A time was fixed for Snn la goodbye. Ormond and Mrs.
to rendezvnua at the Dixie and Wasserman made their way to
Maloney gist the gram. lie was
elated: thus first issue of
Sam Goody's. The line only
Look 50 minutes
Keep music simple.
Thumlr would be worth a Two hours later channel
boa of mints from the right was CAMing in as if the set had
dealer. Someday. he promised lust been born. Mrs. Wrater,
Sometimes under the barrage of audio
himself, he'd have his own cat- man was SU pleased Mai she specifications and claims you can forger the
alog and life would 1w simpler. offered w share her yogurt
Meanwhile he was learning the with 11)t-rnonil. He accepted. real function of audio components is to bring
trade. No money had changed music into your life.
Arriving hark at the oixio handt. and .so no crime had
they found Mrs. Winizerrnart been committed. Everything
reading the nirra for one of was strictly. hors di, rammer-re,
Bang & Olufsen, however, has not forgotten
Sialoney's colleagues- Ibis, it and everyone got what he this fact as we believe the Beosystem 3500 aptly
turned out. was the lady's pro- wanted. As the President had
fession, along with horoscopes put it in sine of his vary earliest. demonstrates. Here is a sophisticated
and palmistry, and that ex-
plained the giant plastic palm
poems, "Aren't you glad it's
legal at last to be alive:
automatic turntable, the Beogram 3000,
in her living roam. united with a critically acclaimed receiver, the
Beomaster 3000-2. When Bang & Olufsen's
TIE HUGHES-NIXON- new Phase-Linkr" speakers complete the system,
you create a remarkably simple way to bring
LANKY CONNECTION: the magic of the original performance into
TIE SECRET ALLIANCES your listening room.
If you really listen to music, but do not want
OF THE CIA FROM WORLD to be an audio engineer, in the process, you
WAR II TO WATERGATE
Wont, ,r rem, 501 should lei it. But Lansky skim." Busthen Lansky's
are probably ready for Bang & Olufsen.
A full color catalog of all our products is
One of Sir Stafford's final tramp men formally withdrew, leaving available upon request. Simply do so.
actions had been to give Mary the field to Resorts.
Carter Paint a Certificate or Resorts tned to appear sepa-
Exemption in exchange far 1240,- rate and distinct from [-milky,
f100 in legal fee. rigorously applauding itself as
Mary Carter Paint. according en alternative to Syndicate gam-
to CIA sources, was a CIA front bling. But Resorts had not
group. It Ind been set up by severed all Syndicate tics. As
Thonla5 Dewey and Allen Dilate, casino manager it had hired
In 1558 Dewey and some friends brother or a top
houghs connolling interest hi the Lonsky lieutenant who, accord-
Crosby Xliller Corporation with ins: to a ;.;entitc -investigation. in-
12' million in CIA money from tervened Al Resorts to get job,
Dulles, who was still CIA diree, for two friends. And according
'or. A year later the Crosby io swam testInanny from Syndi-
Miller Corporation merged with cate informant Vincent Tetaa,
the paint company. During the junketeers continued to need
Bay of Pigs operation in I 9N$ rind Lansky's parmiSsion lo book
Ighl, according to CIA sources, their tows into the Bahamas. A
Mary Carter laundered CFA disgruntled. Resorts stockholder,
payments to the Cuban exile supermarket heir Huntington
army. Hartford, later went to chit
In L963 the company became court because he believed the
part of a Florida. scandal after it Resorts profit COIL/MRS were he-
tanned SITIO,P311 to stock pro. ingluggled, a gold-plated clue to
minters with .,hest Syndicate hidden partners. Reporters in,
connections. But soon afterward vestigated and concluded that,
the company began buying land based on the circumstantial evi-
to the Bahamas, said its Mary dence, Li nsky was still a moving .01 " OW, Mji : i:%gri -17.2
Cuter paint divivon and ralbst farce in Bahamian gambling.
quently adopted a more convex-
hared Caribbean name: Resorts
At the same time. Mid miles INM
away in i.,.115 Vegas, the Syndicate
International.. was changing the face of its
Resorts entered the gambling domestic gambling empire.
business in 1%S, according. to In 1945 when Lansky's junior
CIA sources. to give the agency partner, Bum Siegel, arrived in
a conduit for hiding money it
sends to counterinsurgency
Vega. the town's future seemed
as cheerless as the rattlesnakes
Bang&Oluisen
groups in Central and South that stood sentry in iss vacant liras & 011iken ai Aiwata. hr
Americo. Resorts started as part- lots. Vegas clung tentatively to a 4171. Om, Arrnue
ners with two Syndicate from patch of desert, as close to ob- fIb Chrns, VI CiAte. ll1lnai 000117
men, a circumstance that per- livion as the next big duster. Then
suaded the Jusuct Department's Siegel brought m 52 million in
top organized crime tHildal to Synduatte money and began
write a worried menu): "The building the Strip.
atmosphere seems ripe for a But Siegel's [Cow. on 78]
Ll[y/Surrc
TM ROLUNG STONE, Me? 51. leer
8 MOTOROLA
and tiling eta; fewer court brief ri :ban
heron the assassination. muses as We-Si- Worm on 80]
SOME17-IING ELSE in sound' Oh wheels
ROLLING STOWS Mar M. lrat
BO
Warn. from Znclent was to fire The investigators did not peeve until the mortgnige was paid MT
Robert Morgenthau from the the bank was laundering money four years later.
U.S. attorney's job in New York. for Resorts. But they did learn As president. Nixon perfected
quid pro quo. When he took of-
When you join Morgenthuu, considered the that Crosby had given SI00.000
toughest prosecutor left in the to Nixon just before the 1968 fice, the major remaining symbol
Justice Department, had been in- New Hampshire primary, the of the Kentiedys' Syndicate-
vestigating the Syndicate's con- pivotal event in Nixon's come- busting legacy was on imprisoned
you're in good help from Thomas Dewey, he Cape Florida Development pension-fund fraud along with
also became a Wail Street lawyer Company had bought up SI 'na- Hotta. Eight days before the
with new contacts in the corpo- tion in prime waterfront lots on Kovens parole, former senator
rate nOahlishment. Key Biscayne. Rebozo had Smothers railed White House
(Cont. from 83) Resorts executives Hughes to the U.S. But their plan
during the previous year to dis- was foiled when Inter-Mrs Gold-
cuss the chance of buying up the en, along with a police squad,
Bahamian franchise. If he did rounded them up and had them
expand to the Caribbean, Hughes deported for "working without a
told Maheu In a taped conversa- permit." H ughta then telephoned
tion, "1 would expect you really Nevada governor Laxalt to say
to wrap that government up that he had not been kidnapped
down there to a point where it and that he had fired Maheu.
would bewella captive en- Maheu's historical significance
tity in every way." might have ended there. But
Chester Davis's proposed deal Richard Nixon came to view
with Intertel offered Hughes that Maheu as a threat because the
opportunity only if Maheu was ex-aide's loyalties had been cut
eliminated. But, according to adrift and because he knew too
CIA sources, the humid scenario muchas one White House
held an added incentive irresist- memo put it. "Maheu's tentacles
ible to Hughes. According to touch many extremely sensitive
the sources, Intertel officials areas of government. each of
broached the idea of a mammoth which is fraught with potential
CIA contract that would turn for Jack Anderson-type ex-
Hughes's parent company into posure."
the CIA's most valuable front. The White House Plumbers
The CIA would pay Hughes an were not yet operative. So the
estimated 5360 million to build IRS was asked to examine
the Glomar Explorer, a super- Maheu's bank account, to search
sophisticated rig to work in the for a heavy-handed tool of co-
ocean's depths. The CIA said it ercionan indictment. When
wanted the Glomar to retrieve Maheu suddenly found himself
military codes and nuclear war- under IRS scrutiny, he decided
heads from a Soviet submarine to confide in Hank Greenspan,
sunk three miles deep in the the highly independent publisher
Pacific." of the Las Vegas San.
At midnight on Thanksgiving By 1971 Greenspan had gath-
eve 1970, Intertel agents carried ered a boxful of Hughes's private
Hughes down a back stairs at the papers and information about
Desert Inn and through the only the SI00,000 donation to Nixon.
door that wasn't monitored by The material had come through
Maheu's closed-circuit TV sys- sources within the Hughes or-
tem. A decoy caravan of black ganization, much of it presum-
sedans was dispatched to the ably from Maheu. Greenspun
civil airport while Intertel ferried revealed this information to Jack
Hughes to an Air Force base and Anderson over dinner in Wash-
loaded him aboard a Lockheed ington. Greenspan had known
JetStar bound for the Bahamas. the columnist since the early
According to one account, Fifties when both had brawled
Hughes was met there by James editorially against Senator
Golden, the Imertel executive Joseph McCarthy.
and Nixon friend. On August 6th, 1971, ten
Maheu, who usually communi- months before the Watergate
ailed with his employer only burglary, Anderson's column
through handwritten notes, did described the bare details of the
not learn of the mysterious de- 5100,000 transaction.
parture until two weeks later. On September 26th, 1971,
At first Maheu could not believe Hank Greenspan trekked to
he'd been replaced. More likely, Portland, Oregon, where Nixon
he thought, Intend had kid- was intervening in it longshore-
napped Hughes for some unde- men's strike. Nixon knew G reen-
fined purpose of its own. spun as an idealistic newspaper-
So Vinheti sent a team of men man, is Hughes eritic and a
to the Bahamas. They located Nixon friend for many years, in
Hughes's new aerie atop the Bri- approximately that order. The
tannia Beach Hotel and camped MO posed for the usual gaggle of
a floor below. Then they ob- photographers. Then Greenspun
Mined a search warrant to break cornered Nixon confidant Herb
into the penthouse; they had a Klein and, according to Green-
boat standing by to return spun's notes of the meeting,
warned Klein that the SMARM
32. Many CIA experts believe the nizn, potentially could "sink
Russian sub story was actually a cover
since the codes were outdated and the
L
value of the ether information wits
About two weeks later. on
Onc possibility is that the October 12th, Greenspan re-
CIA, warned about the growing trend ceived a visit from Herb Kalm-
of Third World cartels demanding bach, the Nixon lawyer. Accord-
Welter prices fur minerals, awarded
Hughes the 5350 million to develop
ing to Greenspan, Kalmbach
an advanced technology fur under- spent two hours scribbling on
water miningthereby giving Hughes yellow legal pads, taking down
a head start toward a bonanza with Greenspun's answers to ques-
more potential than oil while helping
protect U.S. hegemony over the
dons about his knowledge of the
world's mineral trade. Another theory 5100,000.
is that the CIA, In conjunction with In late December the White
the U.S.
/ Navy, used rho Glomar to House Plumbers unit discussed a
sut up undetected missile sites on the
ocean floor as a way pi eticating any
plan. which apparently was never
arena limitation treaty with the Soviet attempted, to assassinate Jack
Union. Anderson by coating his car's
steermg wheel with a poison that "we have evidence" that money
would be absorbed through his had been illicitly funneled
skin. According to Anderson, through Rebozo. The White
the Plumbers hoped to obtain House earlier had heard rumors
the poison from the CIA.. that Maheu had squirreled away
Then in early 1972, McGraw- hundreds of Hughes's handwrit-
Hill Publishing Company an- ten communications. Were they
nounced it was about to release the evidence? If so, where were
the inside story of Howard those papers?
Hughes's real-life shenanigans. That answer was supplied- a
in front-page articles on January week tater, on February 3rd,
16th and January 17th, the New 1972. A Nov York Times head-
York Tunes q noted excerpts from line reported that "hundreds of
the McGraw-Hill book that copies of Hughes memos are
charged Nixon with being a readily available in Las Vegas."
political fixer for Hughes. The Times reporter Wallace Turner
book, authored by freelancer had discovered their hiding
Clifford Irving, purported to be place: a boxy Meilink safe stuck
based on his interviews with in a corner of Greenspun's office,
Hughes. The Hughes organiza- ironically under an autographed
tion knew that to be false. But picture of Nixon posing with
the book did contatn a disturbing Greenspun in Portland. "Wally
plethora of details. According to Turner is an old friend of mine,"
several sources, both Hughes and Greenspun explained matter-of-
the White House feared that factly. "He came to my office
looking fora story and I couldn't
send him away empty-handed.
So I told him about the Hughes
papers." Greenspun had not
told Turner exactly what the
papers said, just that he had them
secreted m his sae.
The next day there was a
secret meeting at the Justice
Department offices in Washing-
ton. G. Gordon Liddy, an ex-
district attorney, had spent the
past several weeks trying to sell a
political espionage plan to
JOHN MITCHELL Mitchell. It had been turned
When Mitchell was attorney down as expensive, risky and in-
general in 19711. Hughes effective. But on February 41h,
wanted antitrust laws 1972, with Turner's story only a
waived so he could buy the day old, Liddy was given a go-
Dunes Hotel. Mitchell ahead. Campaign director John
eventually approved. Mitchell, according to deputy
director kb Magruder, ordered
Maher was Irving's ghostwriter, Liddy to scout prospects for
using the book to tattle on breaking into Greenspun's safe,
Hughes and Nixon.' According to an unpublished
section of the Watergate com-
McGraw-Hill had decided Irv-
mittee report, "Mitchell not only
ing's book was authentic. Then
brought up the Greenspun entry
in a theatrical phone call from
operation but also urged Liddy
his Bahamas penthouse, Hughes
to consider it as more pressing
stopped McGraw-Hill's presses
and important than the other
by denouncing both Irving and
targets discussed."31
Mabel' as frauds. But check-
mating Irving's bookto which (Mitchell allegedly told Liddy
Maheu upparently contributed that Greenspun's safe contained
nothingdid not prevent a new
documents linking Democratic
candidate Edmund Muskie to
move from Greenspan and An-
derson. the Mafia. But Watergate burglar
James McCord assumed this was
On January 24th Anderson's
a pretext. McCord testified that
column again mentioned the
he believed Mitchell and Nixon
$100,000 and added a proviso:
were afraid Greenspun had "ma-
terial which would presumably
33. The .1-1.1ndosi Stnuluy Times team incriminate the president and his
that investigated the Irving boss did
find a curious piece of evidence sug- friends ." )
gesting the Idea did originate with According to the unpublished
Maheu or his allies. In late November Watergate report, Liddy referred
1970, the same time Maheu was fired,
the Greenspun job to Howard
Irving's wife told friends that her hus-
band was contemplating "a proposi- Hunt, the ex-CIA operations of-
tion" worth 550%000 from men -who ficer at the Bay of Pigs who
would stop at nothing to achieve their recently had taken a new job as
own ends--even murder." The Sunday
Times reporters felt that this 'proms.
the "dirty tricks" expert for the
salon" involved the Hughes biog- White House Plumbers. Hunt
raphy. (The book also disturbed old met with Ralph Winte, a Hughes
ghosts. A New York Timex investiga- security director, (Cont. on 1361
tion, apparently prompted by the
book, revealed on January 23rd, 1972,
that the Kennedy administration had 34. The Senate committees investi-
seriously considered banging influ- gation of the Greenspun burglary was
ence-selling charges against Nixon for deleted from the lima report. Rouirrio
his role in Hughes's 1956 loan to STONE has obtained a copy of the un-
Nixon'( brother.) published section.
1'576
EAR-AIC
Helms belonged to the old-boy peared to me that the White
espionage school that Allen House had for some time been
Dulles had headmustered. He
had served with Dulles in the OSS
during World War II and had
become the most powerful of
trying to get political control over
the CIA assessments and esti-
mates in order to make them con-
form to 'White House policy,' "
n
I want fast relief,
so here's my $1
Dulles's proteges at the CIA. McCord said, adding that he felt for both your 96- na
Early in his administration, Nixon had prevented the CIA page color catalog
according to Watergate investi- from conducting its "business and the Music Ma-
gators, Nixon had tried to enlist with complete integrity and hon- chine Almanac VIA
the CIA as a special arm of the ad
esty in the national interest." FIRST CLASS MAIL
White House. Helms balked, But then the arrest of the
and Nixon began to resent the Watergate burglars placed the
agency's independent nature. At CIA in a devilishly awkward Just send me the
the same time. Helms suspected spot. The men behind bars had free catalog alone
that the Nixon palace guard, es- demonstrable CIA backgrounds. via third class mail.
pecially John Ehrlichman, was Even more embarrassing was cit
trying to ease the agency out of the CIA's careless (Cont. on 98]
WAREHOUSE SOUND CC
MEN g
ROLLING STONE, MAY 10, 1976
[Cont. from 87] outfitting of the Reelection of the President). CIA infiltration of the White
Plumbers with agency equip- Only two young We shingron House, Bennett was acting on
ment: disguises, voice-altering Post reporters, Bob Woodward orders from CIA higher-ups in
devices, a Uher Sono tape re- and Carl Bernstein, continued to talking to Woodward. Bennett,
corder disguised in a typewriter dog the Watergate story. Their who still enjoyed access to the
Cage, LI camera hidden in a to- persistence began to unnerve the White House, passed along
bacco pouch, a wig the color or CIA. So Bennett approached everything he learned of the
a butcher's apron and all manner Woodward well an offering of White House coverup to Wood-
of forged identification. information. As a Colson confi- ward, the ex-CIA operative said.
dant, Bennett had been privy to Eventually, according to the
Most of the documentation several White House "dirty operative, Bennett assumed the
that could have linked the CLA tricks" that were only tangential code name "Deep Throat" and
with the Plumbers was destroyed to the Watergate burglary. In became the enduring catalyst for
soon after the burglary. Mc- exchange for a promise of ano- the Post's Watergate investiga-
Cord's papers were burned in his nymity, Bennett supplied Wood- tion. Chuck Colson, who claimed
fireplace. Helms disposed of all ward with a cataloger such White to have seen some CIA tiles on
his taped conversations relating House wrongdoing. The Water- Watergate, said he believed that
to Watergate. But when prying gate committee's CIA memo, an the CIA "can show how every
reporters discovered that Hunt's internal CIA document presum- story that Woodward won the
confiscated paraphernalia con- ably intended for Helms, de- Pulitzer Prize for was fed to him
tained CIA gadgetry, media sus- scribed Bennett's modus ope- by the CIA."
picion about the CIA's role in the Bennett briefly expanded his
burglary leaped into headlines. schedule to include other media.
Reporters began pestering At one point his tipstering helped
Hunt and the other Plumbers convince Newsweek to print is
with unsettling questions. The story entitled "Whispers about
burglar munaged to maintain a Colson." According to the CIA
professional silence. But the re- memo, "Bennett took relish in
porters were not satisfied until implicating Colson ... while pro-
Robert Bennett began holding tecting the agency at the same
audiences with' a few of the me- lime."
dia's most influential newsmen. When Colson discovered Ben-
According to a CIA memo un- nett's subterfuge, he was in-
earthed by the Watergate com- furiated. Along with Senator
mittee, Bennett flew from Wash- Howard Baker of the Watergate
ington to Los Angeles to spend CHARLES COLSON committee, Colson raised an
four hours convincing a News- A Nixon trouble-shooter alarm about CIA manipulation
week reporter that. the CIA had who felt the CIA used in the case. In the CBS news-
not been involved in the burglary. Howard Hunt to spy on room, a television team put to-
Then he persuaded a Time inves- Nixon, Colson said Nixon gether a story listing many of the
tigative reporter that the maga- resigned because he was accusations against Bennett.
zine "was beating a dead horse" afraid of the CIA and Then it was read to hint over the
to pursue a CIA link to Water- Hughes. phone. "It was terrible," Ben-
side. nett later testified. "The insinu-
The two newsweeklies which randi this way: "[Bennett] has ations and implications put me
had yet to learn of Bennett's ties been feeding stories to Bob smack in the middle of the whole
to the CIAseemed to accept his Woodward with the understand- Watergate conspiracy and the
word. They began appraising the ing there would be no attribution hush money and the Hughes
burglary as the dementia of anti- to Bennett. Woodward is suitably matter," But, Bennett said, he
Castro partisans or, at worst, the grateful for the fine stories and protested and the CBS reporters
result of some unspecified polit- bylines he gets and protects toned down the story.
ical hijinka. Bennett." ley that time, moreover, other
According to the CIA memo Bennett later corroborated this CIA loyalists had joined Bennett
obtained by the Watergate com- role when he was forced to testify in destroying Nixon's ill-fated
mittee, Bennett also esta Wished a about the memo before a House coverup. The .Vern York Times
"back-door entry" to the law, subcommittee. "Bob Woodward had obtained Frank Sturgis's ac-
firm representing the Democratic interviewed me on numerous oc- count of White House culpa-
party in a civil suit against the casions," Bennett testified. "I bility. Then James McCord an-
Plumbers, an opportunity he have told Woodward everything nounced similar revelations pub-
used to steer the Democratic in- I know about the Watergate case, licly in John Strica's federal
viestigution away from the CIA. except the Mullen company's courtroom. McCord said he had
And Bennett asked a mutual tie to the CIA. I never mentioned spoken up because he believed
friend to but onholeSenator Sam that to him. It has never appeared the White House was trying to
Ervin. chairman of the Watergate in any Washington Post story." use the CIA as a scapegoat. "The
committee. The friend, a North Bennett also scrupulously shel- White House is bent on having
Carolina lawyer, cornered Ervin tered the Hughes organization the CIA take the blame for
during a chartered plane trip, from Post scrutiny. Woodward Watergate," he wrote in a letter
astthen reported back to Bennett and Bernstein never learned of to a friend three months prior to
eithan he was confident "Ervin ac- the plan to burglarize Green- his court declaration. "The way
cepted [my) comments and will spun's safe, nor were they told to head this of is to flood the
not attempt to further involve the the circumstances of the 5100,000 newspapers with leaks and anon-
[CIA]." transaction from Hughes. Those ymous letters. . . This is of
Even Earl Silbert, the Justice two crucial episodes did not be- immediate importance."
Department's Watergate prose- come part of their understanding Nixon was besieged. Howard
cutor, helped protect the CIA. of Watergate. Woodward de- Hunt was demanding up to SI
Bennett told a House committee veloped a "special relationship" million in White House money
in 1974 that he didn't have "any with Bennett, according to a for his silence, Alexander Butter-
misgivings about sharing with Watergate committee investiga- field, who had once headed a
Earl from the beginning the full tor who was also a source for Bay of Pigs rehabilitation pro-
details of the CIA situation." Woodward. "A lot of the Post gram reportedly financed by the
Silbert later admitted that he stories in the summer and fall of CIA, disclosed to the Watergate
changed a critical court docu- 1972 came in part from Ben- committee that Nixon had taped
ment in the Watergate case so nett," the investigator said. all his Oval Office conversations
that the initials CIA incorrectly According to an ex-CIA oper- a turning point in the scandal.
read CRP (Committee for the ative familiar with Bennett and Public opinion [Corn. on 90]
mark Supreme Court decision early Seventies.
that delivered the crucial White At the time of his death Hughes
ROLLING STONE, MAY 20, 1976 House tape recordings and pro- was earning $1.7 million each
duced incontrovertible evidence
that Nixon had ordered that 37. One man who played a key role
[Coil:. from 88] insisted that coverup. Faced with certain im- in convincing Nixon to resign, ac-
Nixon appoint a special prose- peachment, Nixon resigned. 37 cording to Woodward and Bernstein
cutor to investigate Watergate. in The Final Days, was Alexander
A few months later Archibald Haig, who had replaced Bob Halde-
EPILOGUE man as Nixon's top White House
Cox's office was zeroing in on adviser. Haig also had a CIA connec-
Rebozo's handling of the John Foster Dulles died in tion. In the early Sixties he ran a
$100,000 from Hughes. Nixon 1959 after six years of directing CIA-financed Bay of Pigs rehabilita-
relayed a message to Cox through tion program, preceding Alexander
U.S. foreign policy as Dwight Butterfield in the job. According to
Attorney General Elliott Rich- Eisenhower's secretary of state. Chuck Colson, it was Haig who con-
ardson. In a subsequent Senate Allen Dulles died ten years later, vinced Nixon not to expose the CIA's
appearance Richardson testified having spent his last years extoll- role in Watergate. "Al Haig prevailed
that Nixon "didn't see what Mr. on Nixon's better instincts," Colson
ing the CIA in two books, The said in May 1974, "not to take down
Cox's charter had to do with the Craft of Intelligence and The the whole intelligence establishment
activities of Mr. Rebozo." When Secret Surrender. Thomas Dewey of the U.S. in order to save himself
Cox refused to desist, Nixon from impeachment."
elected to fire him in the "Satur- 38. Hughes encountered competi-
tion from Robert Vesco, who also
day Night Massacre." died in 1971, his age and health wanted to buy Resorts. Vesco was a
Nixon already had shunted off having kept him from accepting lavish Nixon contributor, later pro-
CIA director Helms as ambassa- the Supreme Court's chief jus- viding part of the money for the
dor to Iran and had appointed Plumbers, and he was friendly with
ticeship offered by Richard. Nix- the CIA; once when Vesco landed in
his own man, James Schlesinger, on in 1969. a Switzerland jail a CIA agent had
to head the agency. Schlesinger helped get him out. Vesco outma-
tried to purge the CIA old guard, Bebe Rebozo escaped indict- neuvered Hughes by persuading a
firing or forcing out nearly ten Bahamian immigration official to de-
ment in Watergate despite strong mand Hughes apply for a visa, a
percent of the agency's 16,000 circumstantial evidence of tax procedure requiring a recent photo-
employees. But "animosity to- evasion and bribe taking. One graph. Affronted, Hughes packed and
ward Schlesinger grew so strong reason, according to CIA sourc- flew off to Nicaragua and London
that his personal bodyguard was before returning to the Bahamas. By
es, is that CIA officials sanctioned then Vesco was out of the picture.
increased to prevent violent con- his plea of "national security" having been charged with influence
frontations with disgruntled when the special prosecutor's of- peddling for his contributions to
agency employees," veteran fice began investigating Rebozo's Nixon. But Hughes apparently did
Washington journalist Juan not renew his efforts to purchase
links to Resorts. George Smath- Resorts.
Cameron reported. Schlesinger ers, retired from the Senate, is
doubled his security at home, in- prospering in Florida. Their old
stalled a special guardroom out- crony, Richard Danner, still
side his office and took along an works for the Hughes organiza- day from U.S. government con-
extra bodyguard in addition to tion. tracts. Eighty percent had been
his pistol-packing chauffeur. awarded without competitive
But after a few months Nixon Howard Hughes died at age bidding. Thirty-two were from
had to relieve Schlesinger and 70 on April 5th, 1976, from the CIA, the most held by any
promote William Colby, a former chronic kidney disease. Hughes single contractor.
chief of the CIA's Phoenix pro- had been living in the penthouse
gram responsible for the murder at the Xanadu Princess Hotel in
of an estimated 20,000 Viet- Because Robert Bennett's CIA
the Bahamas. His negotiations ties were exposed by the Water-
namese. to buy up the Bahamian gam-
Nixon also encountered esca- gate scandal, he has closed down
bling franchise from the CIA the Mullen Agency. He now
lating trouble from special prose- front group, Resorts Interna-
cutor Leon Jaworski. A decade works for the Hughes organiza-
tional, had fallen through. 3t But tion as a vice-president and CIA
before, Jaworski had been a the Resorts subsidiary, Intend,
special counsel to the Warren liaison.
continued to administer day-to-
Commission and a director of a day security at the Hughes casi-
private foundation that laun- Meyer Lansky today lives un-
nos in Las Vegas. And Hughes
dered funds for the CIA. disturbed in Miami Beach. Now
had maintained his close ties to
Under Jaworski's jurisdiction, 72, he spends his time walking
the CIA. In early 1975, according
the special prosecutor's office to the New York Times, the CIA his dog and visiting with old
found no criminality in the friends. Surrogates handle most
intervened to help squelch a Se-
$100,000 payment or in the Syndicate affairs. After more
curities and Exchange Commis-
Greenspun plot. Nor did it un- than 50 years in the Syndicate,
sion investigation of Hughes. A
cover any other illegalities in- . Lansky has served less than two
1975 deposition filed by an al-
volving the Hughes organization years in prison.
leged CIA agent in a Las Vegas
or the CIA. In December 1974 the New
court case involving an ex-
But Jaworski's Office did indict York Times printed a little-
Hughes aide revealed that the
Haldeman, Ehrlichman, Mitch- ' noticed story about Lansky. It
CIA supplied agents to monitor
ell and others for their roles in the said that the federal government,
Hughes's enemies during the
White House coverup. And the in effect. has abandoned the
special prosecutor won a land-
effort begun by the Kennedys to
put Lansky behind bars.