Page:Letter from Hodgins, Westrich, Clagett to IRS Agent in Charge regarding Al Capone, 1931.djvu/3

 help was solicited wherever possible, the United States District Attorney's Office was used when advantageous, witnesses were brought to Chicago and kept under guard, raids were made, telephone wires tapped, hundreds of witnesses were interviewed, all with the object in view, not so much to develop a tax case but to sustain a criminal prosecution against Al Capone, thereby restoring to a degree the respect for Federal Laws that has not been in evidence among the gangster class during the past few years.

That agents have been successful is borne out by the fact that Ralph Capone was found guilty and is now under a three-year sentence in Leavenworth, Kansas, and is now out, pending a decision of an appeal. Jack Quizik was indicted, tried, found guilty, and sentenced to five years in Leavenworth, Kansas. He is also at liberty on an appeal.

Frank Nitto was indicted, pleaded guilty, and is no serving an eighteen month's sentence in Leavenworth, Kansas. Sam Guzik was indicted, pleaded guilty, and is now serving a one-year sentence in Leavenworth, Kansas. Louis Lipschmitz was indicted and is waiting trial. Al Capone was indicited on various counts covering the years 1924 to 1929, inclusive, and on June 18, 1931, pleaded guilty to all counts in the indictments, and is now waitng to be sentenced. See Exhibt T.

On may 1, 1924, a gambling establishment was commenced in Cicaro under the name of Hawthorne Smoke shop. During the years 1924, 1925, 1926,1927 and 1928, this gambling establishment was raided from time to time and discontinued for short periods, and moved from one place of business to another in the immediate neighborhood, but was the same business operated by the same people. The Government has a book record made by one of the managing operators, Peter Penovich, during the year 1924, and covering its transactions during that year, and by a bookkeeper, L. A. Shumway, during the year 1925 and until April 25, 1925, (the death of States Attorney McSwiggan). The book record shows net profits for the year 1924 of approximately $330,000.00 for the year 1925, of approximately $117,000, and for the four months of January, February, March and April, of 1925 of $170,000. See Exhbit A. - 3 -