Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/37

SI-7085-F Avenue, Chicago, Illinois. Penovich telephoned from her house to a friend, stating that the Government was trying to serve him with a subpoena to testify in the Capone case; that it was too hot for him in Chicago and that he was leaving early the next morning for Canada in order to keep under cover until the Capone tax case was disposed of. We overheard the phone conversations and served him with a subpoena that night. He was then kept under subpoena until the case was tried. In the meantime we learned that Penovioh conferred with Capone at the Lexington Hotel on frequent occasions immediately after he had been questioned by Government attorneys before the Grand Jury; that he also was receiving presents from Capone and making statements to other witnesses to the effect that the Government would never get evidence to convict Capone of tax evasion. The tactics used by Penovich were used by other witneeses employed around the gambling houses in their attempts to shield the leader of their organization, and on account of their antagonistic attitude the United States Attorney decided it would be inadvisable to use Peter Penovich, Frank Pope, Ben Pope, Robert Barton or Louis La Cava as government witnesses at the trial of Capone.

There is submitted herewith an Exhibit No. 86, a schedule showing Western Union wire transfers of money amounting to $72,320.00 sent by or for the taxpayer. These Western Union money orders were sent to the taxpayer or his agents at his winter homes in Miami, Florida, by members of his organization, Sam Guzik, Rocco Fischetti and Bobby Barton. Barton was chauffeur and messenger for Jack Guzik and was the representative of the syndicate to whom Fred Ries turned over a number of cashier's checks from the Pinkert State Bank covering the profits of the Hawthorne Smoke Shop. In an interview with States Attorney Vernon Hawthorne at Miami, Florida, Al Capone stated that he was in the gambling business and receiving funds from that business by wire from Chicago. He also stated that a large part of these funds were received by him under assumed names and that the name A. Costa was used frequently by him. A copy of a stenographic report covering the interview that States Attorney Hawthorne had with Capone is attached herewith as Exhibit No. 87. The fact that Capone used the name A. Costa and that the funds so received were income sent to Capone from Chicago was further established by Mr. Parker Henderson of Miami, Florida. A sworn statement made by Mr. Henderson is attached herewith as Exhibit No. 88. Mr. Henderson stated in part that he became acquainted with Al Capone at Miami in 1928; that Capone lived at the Ponce de Leon Hotel which was owned by him;that he frequently cashed Western Union money orders for from $1000.00 to $5000.00 for Al Capone; that he conducted the negotiations for the purchase of a home on Palm Island at Miami Beach for Al Capone at a price of $40,000.00; that as a favor for Al Capone he took title to the property and later transferred it to Mae Capone, wife of Al Capone; that Al Capone said Jack Guzik was his partner; that Al Capone said - 36 -