Page:Summary Report of Al Capone for the Bureau of Internal Revenue.djvu/27

From Wikisource
Jump to navigation Jump to search
This page has been proofread, but needs to be validated.

that the three other leaders of the Capone syndicate with whom the taxpayer was constantly associated during these years were Jack Guzik, Frank Nitto and Ralph Capone. The taxpayer stated to J. K. Brower that Jack Guzik was acting as financial secretary and taking care of his finances (See Exhibit No. 16). During this investigation it became necessary to secure evidence against the other principals in the Capone organization and Jack Guzik was convicted of tax evasion and sentenced to five years at Leavenworth Penitentiary. Guzik was next in command to Al Capone in the organization and he handled the syndicate's activities in prostitution and gambling. He was also regarded as the political fixer for the organization. Ralph Capone is an older brother of the taxpayer and was closely associated with him in all his activities. He has been convicted of evasion of income taxes and sentenced to three years in the Federal Penitentiary at Leavenworth, Kansas. He is now serving his sentence and was transferred to the Federal Penitentiary at McNeil's Island. Ralph Capone handled the activities of the syndicate in operating breweries and the sale of beer. Frank Nitto was the other principal in the Capone syndicate and he handled the activities of the organization in whiskey and alcohol, Nitto pleaded guilty to tax evasion and served a sentence of eighteen months in the Federal Penitentiary at Leavenworth. There is submitted herewith as Exhibit No. 20, a rough draft of a letter written by Attorney L. P. Mattingly in which he fixes the income of Al Capone at $2,000.00 per month for the year 1929 and this letter has been used as the basis for the taxable income of the taxpayer for that year. On account of the widespread publicity since 1928 to the effect that the government was checking the income of Alphonse Capone and the members of his organization, it is believed that they did not place their funds in banks or invest them in tangible assets or leave other leads relating to their financial transactions as the newspapers warned them that investigation would be made in financial institutions to establish their income. From that time on their income was carefully hidden from the government and the above letter together with the letter of Mr. Mattingly dated September 20, 1930, are the most definite evidences of the taxpayer's income for the year 1929.

- 26 -