Page  [unnumbered] FEDERAL BUREAU OF INVESTIGATION REPORTING OFFICE OFFICE OF ORIGIN DATE INVESTIGATIVE PERIOD __________________________ /18,l9;10/2;9 NEWYORK REE* lE4,2,, TITLE. OF CASE R 41 jpTYPEDY EWARD J3, DEVTNS i1 CHARACTER OF CASE HORCE ILLAM CHMHLWas* RGIzSTRAT ION. ACT; INTERNAL SECURITY DOMINICAN REPUBLIC SYNOPSIS: JACOB SPOt1ANSKY, Private Investigator, advised that during a conversation with JOHN G. BROAD)Y, a convicted NY wire,. arid LOU RUSSELL the nanie of JOHN FRANK camne up ae an employee of ROBERT MAI-EU and that during the course of' the discussion on' FRANK, 1VAHEU'xS name was mentioned as being associated with. the GALINDEZ case,4 SPOLANSKY further stated that he hladc been retained by HENRY DRESSEL, who is employed extensively as an investigator by "Time, " "Life, I and "Sports Illustrated" magazines. SPOMNSIY stated that he was retained by DRESSEL to conduct some investigations relating to the GALINDEZMURPHY case arid that after the appearance of HORACE W.- SCH1VAHL before a Federal Grand Jury in Washington, D.C., S OLANSKY was retained by DRESSEL to o nduci ' investigations relating to SCHiMAHL. SOLANSKC3 stated that" the results of his investigations ld him to 'conclude that + IM.:r~uil ri i11 4 ry b Maxi "w. * I APPROVED SPECIAL AGENT C O P I E S M A D E:' o u e u ( 7 - k 2 ) ( M -m Mami(9734125r) ( I 1 Newark (97Th176) (Inf~o) (RNi) 1I 'Washington Field (97h97l) (Ins 6 New Yrk(97-l4l4) (1-9.l83(M 1- 79131 )(GALINDEZ ) (1 -139-10G)BROADY) DO NOT WRITE IN SPACES BELOW PROP ERTY OF FBI-This report is loaned to you by the FBI, and neither it nor its contents are ti AAOt whichlond

Page  1a NY 97-.L4lL SYNOPSIS (CONTINUED) SCHMAHL was definitely involved in the disappearance of GALINDEZ and that although JOHN FRANK may have set this abduction up, SCHMAHL also was deeply involved. SPOLANSKY stated that all of his information linking SCHMAHL to the GALINDEZ ease was given to him by JOHN BROADY who furnished him information to the effect that SCHMAHL maintained. s irveillances on GALINDEZ with the use of several station wagons and several of his employees and that GALINDEZ was surveilled up until the moment the plane took off from Zahn Airport in Amityville, Long Island WILLIAM M. CHIARIELLO, the President of a firm of private investigators, advised that JOHN G. BROADY told him that he had heard from SCOHAHL that JOHN FRANK was retained by Generalissimo RAFAEL TRUJILLO to conduct a surveillance on JESUS GALIINDEZ and that SCHNAHL also told BROADY both he and FRANK were retained by TRUJILLO. To the best of CHIARIELLO'S recollection, BROADY told him that SCHMAHL told BROADY that GALINDEZ was struck on the head and kidnapped,on,Morningside Heights, NYC, by two men who belonged to the Spanish-speaking community of NYC and both of whom are hired by the Dominican Republic on a continuing basis. GALIXNDEZ was immediately placed in an ambulance, bound, and gagged and driven in the ambulance from Morningside Heights south through YC, through Brooklyn, and out the Sunrise iLh ay to Zahdis Airport, AmityVille, NY, whe e he was placed in a waiting plane pilote4 by GERAD ~STER MURPHY. The only t;, p rsons in the plane - ", UEGU.SSFIED, Y IARA Dat......

Page  1b NY 97-141l4 were GAINEZand 'MURPH'Y and the plane took off' ostensibly for 'the Dorninio-an Republic. CHIARIELtLO went on.to say that BROADbel eve s that?A NI(.iBa victim of' circumustances and that neither IRNK nor HC iAHL were act umally involved in the alleged "abdtcton...lb - TDECLASSFEO 'Ily MONARA DatA. 4j

Page  2 NlY 97..1LIi4k NY 97.1369 ~AILS: O 0 October 9,, 1958.t JACOB S?O LANSKY",a Private investigator who is a partner in the Borger Ass~ciat Ic., 60 East 42nd Street, New York City, was interviewed by SAS THOMAS 0G SPENCER and1 EDWAIRD J. DEVINS and advised 6s ~ follows:; SLAS sadththis coeascae FLOU RUSSELL, ' both having been investigators ffor the Houise nAM~V11 - A ~wTT. A~- A f r! I r1tI'4Yi 1 NR1' AArOwfl l 1 &i

Page  3 NY 97-1414 NY 97-1369 way involved with the GALINDEZ matter, but had no recollection of any conversation concerning a wire tap involving ONASSIS. SPOLANSKY emphasized, however, that a conversation concerning ONASSIS could have occurred inasmuch as he, SPOLANSKY, was not paying a great deal of attention to the conversation. Regarding the conversation concerning GALINDEZ, SPOLANSKY recalls that thename of JOHN FRANK came up in the conversation as an employee of MAHEU and that during the. course of the discussion on FRANK, MAHEU'S name was mentioned as being associated with the GALINDEZ case. SPOLANSKY remarked that BROADY monopolized the conversation and that to the best of his recollection most of the remarks concerning FRANK and MAHEU were made by BROADY. SPOLANSKY stated that BROADY could have inquited as to the identity of the persons who instituted technical surveillances on ONASSIS and possibly GALINDEZ, but that he has no precise recollection concerning a conversation along these lines. With regard to wire tapping in general, SPOLANSKY stated that information had come to his attention that an individual named MURPHY, who was an employee of MAHEU, was familiar with wire tapping techniques. SPOLANSKY was asked whether or not in connection with his private detective work he had come across any information relating to the GALINDEZ or MURPHY cases. He volunteered that he has been employed on numerous occasions by HENRY DRESSEL, an attorney at 150 Broadway, New York City, who is employed extensively as an investigator by "Time," "Life," and "Sports Illustrated" magazines, SPOLANSIKY explained that "Time", "Life", and "Sports Illustrated" are represented by the law firm of Cravath, Swain and Moore, New York City, who in turn retained DRESSEL for investigative wor in connection with these magazines. SPOLANSKY stated that prior to the time that the piece on GERALD LESTER MURPHY was- published in "Life" magazine in approximately February, 1957, he was retained by DRESSEL to conduct some investigations with respect to the article that was to be published. He stated that he prepared memoranda as the resUlt of his. investigative efforts and turned them over to DRESSEL, but did not -etain DE!ASS\RIED......

Page  4 NY 97-1)4I1I NY 97-1369 a copy of these memoranda for his own file. SPOLANSKY further related that after the appearance of HORACE W. SCHVAHL before the Federal Grand Jury in Washington, D.C. in approximately December, 1957, which appearance received some publicity in the newspapers he, SPOLANSKY, was again retained by DRESSEL to conduct certain investigations relating to SCHMAHL. At this point SPOLANSKY stated that the results of his investigation lead him to conclude that SCIAHL was definitely involved in the disappearance of GALINDEZ. SPOIANS" further explained that although JOHN FRANK may have set this abduction up that SCH4AHL also was deeply involved. SPOLANSKY was immediately questioned as to the basis for these statements and replied that practically all of his information linking SCHMAHtL to the GALINDEZ case was given to him by JOHN BROADY. SPOLANSKY recalled that BROADY furnished him information to the effect that SCHMANL maintained surveillances on GALINDEZ with the use of several station wagons and several of his employees and that GALINDEZ was surveilled up until the moment the plane took off from Zahn'.s Airport, in Amityville, Long Island. SPOLANSKY also stated that BROADY informed him that he, BROADY, had been approached by SCHMAHL in connection with the GALINDEZ matter. SPOLANSKY was asked if he knew the identity of the source of BROADY'S information linking SCHMAHL to the GALINDEZ-MURPHY case. He replied that he did not know definitely the identity of BROADY'S source, however, he remarked that BROAD).knew a great many of SCHIAHL'S employees as well as SCHMAIHL himself and that possibly the source of BROADYtS information could be anyone of these employees or even SCIE.AL. SPOLANSKYU also remarked that SCHMAHL had worked for BROADY or about five or six years at a salary of $125.30 a wee.: a-d thiat when SCIT4AHL asked for a raise to $150.00 a week IOCADY refused to give him the money and SCHNAHL quit at wh'ch time he formed his own business.

Page  5 NY 97-.1414 NY 97-1369 SPOLANSKY stated that he prepared detailed memoranda concerning SCHMAHLtS connection with this case, however, he did not retain any copies of the memoranda. The originals are in the possession of DRESSEL and SPOLANSKY stated that DRESSEL is presently in Oklahoma and not expected to return until the middle part of the week of October 12, 1958. SPOLANSKY Was questioned as to whether or not he knew the identity of any other person having knowledge of the GALINDEZ case and he stated that one DOLORES SCOTTI, who was formerly employed by the House Committee on Un-American Activities would possibly have some information regarding this matter, He stated, however, that this woman is presently employed with MORRIS ERNST in connection with their investigation of the GALINDEZ matter. SPOLANSKY was asked whether or not the SCOTTI woman was still employed with ERNST inasmuch as they had published their report in the GALINDEZ matter and SPOLANSKY stated that the ERNST investigators are still working on this case, but that he has no knowledge of whtat angles they are presently pursuing. SPOLANSKY was asked if he knew IRVING LIEBERMAN and he immediately replied that LIEBERMAN, a "New York Post" reporter, was a very close friend of JOHN BROADY and that during a visit SPOLANSKY made to BROADY'S office, BROADY telephonically contacted LIEBEEMAN with regard to the GALINDEZ-MURPHY ease. SPOLANSKY' could not recall the nature of BROADY'S conversation at that time. With regard to SCHIAHL, SPOLANSKY stated that he personally knows SCHMAHL, but has no regard for SCHMAIH'S integrity and, in fact, described him as a "liar" and somebody who would do anythirng for a dollar, SPOLANSKY stated that BROADY told him that SCHMAEI:L made a great deal of money for his part in the GALINDEZ case. SPOLANSKY related that prior to SC-IHNAHL'S Grand Jury appearance, SCHMAHL had bet'ween twenty-five to thirty men in his employ, however, since the adverse publicity 5ETj ASS\ED -AUt.f Y p_

Page  6 NY 97.-1414 NY 97-1369 he received in connection with that appearance SCHYAHL has lost a great many of his clients and has been forced to close all of his branch offices. To the best of SPOLANSKY''S knowledge, SCHMAHL now employs about six or seven men, all of whom have been with him a long time. SPOLANSK stated that the names ROBERT S, GILSON and JAMES A. MC CALL, JR., are familiar to him as employees of SCHMAHL, but he did not recogni.ze the names ROBERT VAN NORDEN or JOSEPH BRUEN. -6 - DECLtASS~EI

Page  9 NY 97-1414 he was being "shadowed" by the "Small Agency," and that ORNES was interested in exposing the GALINDEZ matter. CHIARIELLO explained that he was in no sense retained by ANDERSON, and that he did not accept or expect any fee for his inquiry in this regard. He stated he had never heard of the "Small Agency." On the following day, CHIARIELLO contacted JOHN G. BROADY, a convicted wire tapper, in connection with this inquiry. CHIARIELLO stated that he had met BROADY through JACOB SPOLANSKY, another private investigator about three years ago. CHIARIELLO also stated that BROADY has a high-type clientele, and is considered to be quite ethical in his dealings with clients and other private investigators. He thought that possibly BROADY would be able to furnish information concerning the "Small Agency." BROADY informed him that the agency in question was owned by HORACE W. SCHMAHL. CHIARIELLO stated that he had never heard of SCHMAH1 and BROADY proceeded to furnish him the following information: To BROADY's knowledge, SCHMAHL was a former Nazi or Nazi sympathizer who came to the United States in the 1930's. During World War II, SCHMAHL was inducted into the Army and was assigned to the Office of Strategic Services(OSS). Some information about SCHMAHL, the nature of which BROADY did not reveal to CHIARIELLO, came to the attention of OSS authorities and SCHMAHL was relieved of his assignment with OSS. After the war, BROADY hired SCHMAHL as an investigator and SCHMAHL worked for BROADY for a few years. BROADY fired SCHM IAHL when he discovered that SCHMAHL was overcharging him for various puchae on a continuing basis. SCHMAHL then ASSI "1D '" '..".. ~ 7AD

Page  10 NY 97-1414 investigative agency and attempted to "steal" some of BROADY's clients, including a member of the famous ASTOR family. SCHMAHL also lined up several railroads as clients, set up a number of offices in various cities and called his organization the National Railways Security Bureau, Incorporated. CHIARIELLO stated that BROADY related the following information, all of which he heard from SCHMAHL himself, concerning the GALINDEZ-MURPHY case. BROADY had heard from SCI1AHLE that JOHN FRANK was retained by GENERALISSIMO RAFAEL TRUJILLO to conduct a surveillance on JESUS DE GALINDEZ, inasmuch as TRUJILLO wanted to be kept advised of all the activities of this "potential political enermy." FRANK sought out SCHMAHL and entered into an arrangement with SCIMAHL whereby RANK used the facilities of SCHMAHL's organization to conduct a surveillance and investigation on GALINDEZ. SCHMAHL, and SCHMAHL alone, not FRANK, sought out BROADY and inquired as to whether or not BROADY would be interested in working on this job, inasmuch. as the fee was very lucrative and that other jobs could be expected from TRUJILLO. SCIHMAHL also said that both he and FRANK were retained by TRUJILLO. BROADY turned him down. To the best of CIIIARIELLO's recollection, BROADY told him that SCHMAHL told BROADY that GALINDEZ was struck on the head and kidnapped on Morningside Heights, New York City, by two men who belong to the Spanish speaking community of New York City, and both of whom are hired by the Dominican Republic on a continuing basis. GALINDEZ was immediately placed in an ambulance, bound and gagged and driven in the ambulance from Morningside Heights, south through New York City, through Brooklyn and out,tm - Highway to Zahns Airport, Amityville, DEGCASSI\V-D Authe iy u-i-' LARA Dal4e t

Page  11 NY 97-1414 he was placed in a waiting plane, piloted by GERALD LESTER MURPHY. The only two persons in the plane were GALINDEZ and MURPHY, and the plane took off, ostensibl~ for the Dominican Republic. CHIARIELLO was unable to furnish any more specific details concerning this alleged abduction, stating that BROADY did not furnish the names of the two men or how the ambulance was obtained. He does not know whether or not BROADY is &~are of the details. CHIARIELLO went on to say that BROADY believes FRANK is a victim of circumstances and that neither FRANK nor SCHMAHL were actually involved in the alleged.bduction. CHIARIELLO said that BROADY told him that the kidnapping actually came as a shock to FRANK and that FRANK did not anticipate that GALINDEZ would be abducted. CHIARIELLO received the impression from BROADY that SCHMAHL is the type of person who would not undertake anything without knowing the full story, and that possibly SCHMAWHL knew that GALINDEZ was to be kidnapped. BROADY described SCHMAHL to CHIARIELLO as a person "entirely devoid of scruples," a "liar?" a thief and a 'cheat," and a "dirty operator" who would stoop to anything to make a dollar." CHIARIELLO said that BROADY informed him that if a raid were conducted on S~HMAHL's offices, enough evidence could be found in SCHMAHL's files to put SCHMAHL away for life. BROADY said that if enough pressure were put on SOHMAHL, SCH4AHL would "crack," and that if a highly placed client hired him (BROADY) he could probably produce documentary evidence that SCHMAHL had GALINDEZ under surveillance. D ESS D a

Page  12 NY 97-142++~ DRQADY. also infCormed CHIARIELO that he did not wish to become involved with the authorities in this matater', and that if' any authorities inter" viewed him once 'ning it, he would deny that he ever niade any such statements. BROADY also informed CHIARIELLO that SdHMAHIS is "so low" that aft ''AFRANK was indicted by a Federal Grand Jury for violation of the Foreign Agents Registration Act, he (soiiMiit) gloated to BROADY that he (SGH'JA}fl) now had TRUJILLO as a client without '.aving to sfiare the lucrative fees with FANK. BROADY also told CHIARIELLO that SOHIVIHL is relying on his colostomy operation as a hedge against any prosecution. CHHIARIELo does not. recall BROADY mentioning the names or any of SCIINAJIL s employees being on. the GAUWNDEZ survell.ance, CWIARIFLLo also stated that he has' never met SCHDMAHL. personally. DEU\SSEIfl