Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/45

SI-7085-F been Capone's guests on a boat trip to Bimini; that all the expenses of the persons on that trip were paid by Capone and that Capone's bodyguard, Phillip D'Andrea, had accompanied them on that trip.

There is submitted herewith as Exhibit No. 112, the sworn statement of Russell Garnett of Miami, Florida, dated September 10, 1931, in which he states:

"I was in the real estate business in Miami and Miami Beach, Florida, in 1927 and 1928. The latter part of 1927 I was made acquainted with Mr. Alphonse Capone. I showed him several furnished houses at Miami Beach, as he desired to rent the home for the season, and he also informed me that he was seriously considering the purchase of a home. I finally showed him a furnished house at 3605 Indian Creek Drive, Miami Beach, owned by a Mrs. Sterns. The rent of the property for the season was $2500. Mr. Capone agreed to rent this property and made me a down payment of either eight or nine-hundred dollars, all of which was in $100 bills. I suggested that I give him a receipt but he said that he did not need one. The next day he paid me the balance of the rental for the season in $100 dollar bills. The property was rented for a period of six months. During the time that Mr. Capone occupied the property, I visited his home upon several occasions, and I also accompanied him and other friends of his to various night clubs in and around Miami. Mr. Capone entertained at the house extensively, and had a great number of guests there. He also entertained extensively at the night clubs, and would have a large number of guests in his party, upon each occasion that he visited the night clubs. Mr. Capone always paid the entire bill for the food and entertainment, and also upon paying the bill would give the waiter a large tip. I have frequently seen him give the waiter a $20 bill as a tip."

In order to show intent to evade by the fact that the defendant's attention had been officially called to his responsibility to file income tax returns and that he had failed to do so, the Government produced a revenue agent, Mr. E. P. Waters, and his testimony is submitted herewith as Exhibit No. 113. Mr. Waters stated that several years ago he called at the Hawthorn Smoke Shop in Cicero, Illinois and asked for Al Brown; that there was a barroom on the first floor and that gambling was then being conducted on the second floor where an employee took him to look for Al Capone (Brown being his nickname); that Capone was not located and Waters called again in a few days; that he then saw Al Capone, showing him his official credentials; - 44 -