100%

Scanned image of the page. Keyboard directions: use + to zoom in, - to zoom out, arrow keys to pan inside the viewer.

Page Options

Download this Issue

Share

Something wrong?

Something wrong with this page? Report problem.

Rights / Permissions

This collection, digitized in collaboration with the Michigan Daily and the Board for Student Publications, contains materials that are protected by copyright law. Access to these materials is provided for non-profit educational and research purposes. If you use an item from this collection, it is your responsibility to consider the work's copyright status and obtain any required permission.

August 09, 1973 - Image 8

Resource type:
Text
Publication:
Michigan Daily, 1973-08-09

Disclaimer: Computer generated plain text may have errors. Read more about this.

Page Eight

THE SUMMER DAILY

Thnursdoy, August 9, 197.

Officials disclaim informer

By BRIAN B. KING
Associated Press Writer
WASHINGTON (A) - G e r a I d
Martin Zelmanowitz says that
three years ago he spent almost
two months here in a "safe
-house" as the Justice Depart-
ment supposedly rebuilt his back-
ground into a safe "cover" for
his future.
Zelmanowitz was back in Wash-
ington recently, hiding out in a
motel with his wife and her par-
ents becsuse, he says, the cover-
turned out to be "nothing more
than a typed sheet of paper."
The Justice Department appar-
ently keeps him at arm's length,
and refuses comment on his
case. But he has found friends'
among the staff of the Senate
permanent investigations s u b-
committee, which is drawing
from his knowledge of organiz-
ed-crime figures and operations
in the late 1960s.
THE COMMITTEE arranged
recently to have his U.S. marshal
bodyguard restored four days af-
ter he testified at its public
hearings. The Justice Depart-
ment had pulled off the guard a
couple of weeks earlier.
The department, he says, has
cautioned him that it feels his
testifying publicly - as he did
July 13 - could harm its in-
formers' program. He doesn't
want to do that but he's had a
bad experience with it and so
makes no secret of it.
Zelmanowitz, during his career
in the '60s as a courier and se-
curities dealer for organized
crime, was convicted three times
on charges related to stolen or
fraudulent stocks and bonds. His
final arrest, in 1968 in Miami,
-began the process of turning him
into an informer.
IN 1970, he was the main gov-

ernment witness in New Jersey
at the extortion trial of Angelo
"Gyp" DeCarlo, a reputed lead-
er of a Mafia crime family. The
trial brought out the briefly no-
torious "DeCarlo tapes," hours of
wiretapped conversations b e -
tween crime figures and others,
discussing past murders, beatings
and other crimes. DeCarlo re-
cently was paroled.
Zelmanowitz has told the com-
mittee - which is attempting to
corroborate his testimony - that
U.S. attorneys promised him re-
location in a place of his choice,
new identifications for him and
his family, and a new past his-
tory and subsistence, "since I
would not be working but spend-
ing all of my productive tsme"
with federal agents.
Immunity from prosecution for
other admitted offenses also was
promised, he said. He also ex-
pected a pending case against
the Internal Revenue Service to
be resolved, freeing him from
a lien and the IRS from his suit.
HE SAID he decided to testify,
"relying on the government pro-
mise."
After indictments were hand-
ed down against DeCarlo and
others in the extortion case, Zel-
manowitz said, a man from the
Justice Department's unit for re-
location of informers sat down
to prepare the list that outlined
this cover:
A birth certificate would be
created and placed in the city
hall of records of a place t h e
department chose. His real
school records would be collect-
ed, from the first grade in Brook-
lyn through two years at C i t y
College of New York, and be
converted into new records with
his cover name and replaced in
different schools.

AN EMPLOYMENT history Oth-
er than "brief jobs and organ-
ized crime" and a military back-
ground other than "undesirable
discharge, U.S. Marine Corps"
would be fabricated. New Social
Security and military-identifica-
tion cards, driver's license, pass-
port and other papers would be
made up.
Meanwhile, his meetings with
the IRS turned into more inter-
rogations and no settlement, he
said.
Fir six months, his family "liv-
ed on the road in motels around
the country and I was living in
a U.S. Post Office building in
Newark" until the move to the
so-called safe house here. He
said he was told no future tax
assessments would be levied
against him.
HE LEFT Washington with a
new Social Security card, a new
driver's license, an Army Re-
serve ID card, no resolution of
his tax case and the name "Pau
Maris" to take with him to San
Francisco.
Zelmanowitz said he was not
given the promised help in find-
ing a job - or a resume to take
to "40 different companies and
employment agencies in the Bair
area" he went to, seeking work..
All he had in his typed-out back-
ground was "13 years as a cryp-
tographer cryptanalyst" - an in-
telligence codes, analyst.
Eventually he found a job with
an insurance company and then
joined a garment-manufacturing
firm on the financial skids. He
said he began at no pay and
within six months purchased a
50 per cent interest in it or
$5,000.
In the proces of finding specu-
lative capital for the business, he
linked up with Creative Capital
Cosp. of New York City, headed
by Milton Stewart. Creative Cap-
ital ended up making large in-
vestments and temporary loans
to the then Alvin Duskin Co., bur-
dened with its $1.3 million in in-
herited debt.

IN A YEAR, the firm had $6.5
million in sales, Zelmanowitz
says, and had gained a good re-
putation as a source of junior
sportswear, with more and more
money flowing in from Stewart,
now chairman of the firm and
leader of a six-man Creative Cap-
ital Corp. contingent on its sev-
en-man board.
Zelmanowitz said he eventually
erased all the debt of what be-
came, when Duskin left, the Paul
Maris Co.
This spring, Stewart fired Zel-
manowitz as president of Paul
Maris Co., claiming financial ir-
responsibility, Zelmanowitz saidl
the reason was greed as the
firm turned over a volime if
$10 million.
HE TESTIFIED that his stock
was taken by Creative Capital to
repay old debts, auctioned and
bought by it, to produce 100 per
cent ownership of Paul Maris
Co.
Zelmanowitz sued for breach of
contract. Stewart hired a private
detective to research Zelmano-
witz's background.
The detective, Zelmanowitz
said, found no birth records; no
high school or college records
where they were supposed to be.
and no service records.
"Paul Maris, 37, born in Phil.
adelphia, a student at Baldwtn
Wallace College, Army, Reserve"
- that Justice Departnnt cov-
er existed only in department fil-
es. "There was absolutely no{
back-up to these records," Zel-
manowitz told the committee.
THEN, ACCORDING to Zel-
manowitz, who had told the Jus-
tice Department about the detec-
tive, Stewart contatced a former
FBI agent-friend and asked him
for aid in finding out who "Paul'
Maris" realy was. The unname.
former agent blew Zelmanowitz'
cover, he said, and a No.v Jer-
sey police department clinched i
by matching photographs of Zel-
manowitz and "Maris."
The detective already had founl
a crack in the blank wall - the

four new Social Security numb-
ers given as part of the cover
ran consecutively for 37-year-
old Zelmanowitz, his wife and her
parents, who are in their mid-
60s.
"I could have claimed I went
to Harvard, was a general in the
Army and vice president of Gen-
eral Motors, for the validity of
all of these records," Zelmano-
witz said.
STEWART FILED with the
California courts what he found,
as part of his response to Zel-
manowitz's suit. A newspaper
picked it up from the public re-
cord. And Zelmanowitz was rip-
ped out of his life as "a decent
and respected member of t h e
community .. . a clean, healthy
and happy life . . . in a state of
minimum fear of disclosure."
The Justice Department t o I d
Zelmanowitz,. he says, that it
would ask Stewart not to disclose
his identity and allow him a
chance to relocate. Zelmanowitz
says this was never done.
His cover blown, he found the
IRS back on his doorstep, pro-
ceeding to enforce the original
1969 lien.
"They seized my home in Son-
oma, Calif., and my apartment in
San Francisco; told my wife and
I that we could not enter these
places any longer; took all of
our furniture and possessions and
virtually left us penniless."
The IRS called him in for talks
to resolve the case. He says he
found that three IRS agents ne
claims to have bribed in New
Jersey in the 1960s had been as-
signed to review and resolve the
lien. Three years before, he had
told IRS internal investigators
and the Justice Department
about his bribes of men he calls
"friends or organized crime a
New Jersey."
He would not publicly identify
the men but told the committee.
AN INTERNAL Revenie Serv-
ice spokesman confirmed t h a t
Zelmonawitz told its investigators
in 1969-70 that he had bribed IRS
agents. A subsequent investiga-
tion did not turn up sufficient
evidence to support the allega-
tions, the spokesman said.
Zelmanowitz's statement that
the agents he allegedly bribed
were asigned to handle his re-
opened lien case "came as news
to us and we are looking into
that," the spokesman said.
Subcommittee counsel Howard
Feldman, meanwhile, says the
panel probably will hold hearings
next month on the results of its
investigation of Zelmanowitz's
stories.
Asked it the prime source was
still in the motel: Feldman would
only say he is "accesible" and
"in the country."
HE SAID his top interest is
the disclosures of bank involve-
ment in foreign manipulation of
stolen securities, rather than the
allegation of bribing IRS agents.

ORIENTATION
STUDENTS!
AVOID LONG LINES
THIS FALL!
A $1.00 deposit with Ann Arbor Bank will open a
checking or savings account for you NOW.
PLAN AHEAD:
A few minutes spent NOW will help you avoid the
mob scene created by 5000 new students hitting
campus (and the banks) in September.
Ann Arbor Bank offers
0 The most campus locations (4).
* Extended hours: 9 'til 6 p.m. weekdays, until
noon on Saturdays.
* MONEY MACHINE-a way to get cash at ANY-
T I M E! And ANYONE qualifies to use M o n e y
Machine.
DROP INTO ANY ANN ARBOR BANK LOCATION
TODAY-or mail in our coupon:
--------------------
Yes, I want to open an Ann Arbor Bank
* checking and/or Q savings account.
" NAME__ ___ ___ _ _
MR I IO:QikSart
S ADDRESS. -__
+r Ann Arbor Bank.
Ann Arbor, Mi 48107
U .I®r~ r+ ~r ~ e araw a

'U' offers first class
in teachers' u nions

The University is offering what
is believed to be the first course
in the country dealing with the
unionization of teachers this fall.
According to the School of Educa-
tion the program offers master's,
educational specialist, doctor of
education and doctor of philos-
ophy degrees.
The curriculum was designed
at the request of and in con-
sultation with several existing
teacher organizations. It is aimed
at "developing greater skills and
understanding of the process and
content of collective negotiations
in education; the educational
process and the organization, ad-

ministration and financing of
school systems; the role of teach-
er organizations and teacher
leaders in the processes of edu-
cational change."
The courses will also focus on
organizational behavior, group
dynamics, interpersonal behavior,
and industrial relations.
Further information about the
new degree program may be
obtained from the advisors, Prof.
Hyman Kornbluh and Associate
Dean Frederick Bertolaet. They
also serve as co-directors of the
School of Education's National
Study of Collective Negotiations
in Education.

CORECTION
The ad which appeared in yesterday's Daily for Univer-
sity Musical Society was in error.
The Viola Farber Dance Company performance will be
held Thursday, August 16, not Tonight.
T1he Dailty regrets the error

Back to Top

© 2020 Regents of the University of Michigan