During these conversations Bouchard introduced Peroff to a man Bouchard identified as Tom Solarik.

Mid-January 1973.-Peroff met in Rome with the man identified by Bouchard as Tom Solarik and another man Solarik identified as being named Mike Silverman. Solarik and Silverman agreed to enter into an arrangement with Peroff in which Peroff would sell for them a half-million dollars in counterfeit $100 and $50 bills.

January 21, 1973.-Peroff, calling from Rome, telephoned the Secret Service office in Paris to say he had $500,000 in counterfeit money and he was trying to obtain $2 million more. The call was taken by Frank Leyva.

January 22, 1973.-Peroff, still in Rome, called Leyva again. Leyva told Peroff to contact Customs Attache Mario Cozzi at the American Embassy in Rome. Peroff told Cozzi about the counterfeit money and about other illicit activities including procedures followed by persons who were able to obtain fraudulent Panamanian and Canadian passports. Cozzi had Peroff fly to London to gather more information on the passport question. Then Peroff was directed to fly to Paris where he checked into a hotel near the American Embassy Annex, D Building.

January 25, 1973.-Peroff turned over to Cozzi $438,750 in bogus $100 and $50 bills. Peroff indicated that the counterfeit money had been given to him on a "consignment basis" by Solarik and Silverman.

February 1, 1973.-Customs Attache Mario Cozzi sent a wire to the Paris offices of the Secret Service and the BNDD in which he reported the existence of two warrants on Frank Peroff issued in Florida on bad check charges. Copies of the wire were also sent to the Washington offices of Customs, BNDD and the Secret Service. Cozzi also notified Antonio Delfino, Assistant Chief of the Rome office of Interpol, of the two warrants on Peroff.

February of 1973.-Peroff met with Leyva and Vernon Pitsker and George Corcoran of the Customs Service and with agents of the Bureau of Narcotics and Dangerous Drugs. The talks went on for the next two days. The agents informed Peroff that Solarik and Silverman had come to Europe primarily to buy narcotics and that passing counterfeit currency was a secondary goal. The agents enlisted Peroff as an informant and asked him to try and penetrate the alleged drug conspiracy. Peroff became actively involved in the drug conspiracy, reporting regularly to federal drug agents.

February 6, 1973.-Frank Leyva of the Secret Service learned of the existence of the outstanding warrants on Peroff from Florida in. connection with two bad checks. Leyva raised the subject of warrants with Peroff but he did not tell Peroff that he knew of the two Florida warrants. Peroff denied any warrants were outstanding on him but later acknowledged that if such warrants were outstanding they were based on a "misunderstanding" and that Peroff had already "straightened that out."

February 8, 1973.-French police, working with U.S. Customs and BNDD agents and using information supplied by Frank Peroff, seized 10 kilograms of heroin and arrested Thomas Solarik, Nikolaye (Mike) Silbermann and Werner (the Kraut) Patek in a raid on Solarik's room in the Hotel Rome at 18 Rue de Constantinople, Paris. Also ar

rested in connection with the heroin seizure was a Hungarian woman, Julia Kovacz Szige, who was identified by officials as being Silbermann's girlfriend. Another man, Kalev Amon, a Turk traveling under a Canadian passport, was also suspected of being part of the heroin plot and was believed to have returned to Montreal.

February 9, 1973.-A cable was sent from the American Embassy in Paris to the Washington headquarters of BNDD and U.S. Customs in which a summary of the previous day's heroin arrest was given and in which it was stated that Peroff, under the code name SXA-30004, would receive a reward for his role in the heroin seizures of $3,000 from BNDD and $3,000 from Customs. A Secret Service check for $1,623 was sent to Frank Leyva to be given to Frank Peroff as a reward for working on the Solarik-Silverman counterfeit case. This sum, together with the $3,000 each given to Peroff by Customs and BNDD, brought his total reward money for this case to $7,623.

February 14, 1973.-Richard A. Falanga, a Bureau of Narcotics and Dangerous Drugs agent, wrote an account of the Solarik-Silverman heroin case in which he attributed considerable credit for the narcotics arrest to the undercover informant work of Frank Peroff. BNDD agent Falanga identified Peroff in his report as "SXA-3-0004."

February 1973.-Peroff met with Cozzi, John J. Molittieri and Vernon Pitsker, all of Customs, and Richard Falanga of BNDD in Rome. The agents enlisted Peroff in another drug inquiry. This inquiry would require Peroff to travel to Montreal, meet with the Canadian racketeer, Conrad Bouchard, and seek to find out from him if the Solarik-Silverman narcotics seizure in Paris had wiped out the entire shipment. If there was more heroin than that which was seized, the agents wanted Peroff to find out about it. The agents also coordinated Peroff's activities in Montreal with the Royal Canadian Mounted Police.

February 15, 1973.-Peroff, under orders from federal drug agents, flew from Rome to Montreal.

February 15-27, 1973.-Peroff was in Montreal meeting with Conrad Bouchard and others concerning a plan to have Peroff in his private jet. fly into Marseilles, France, visit a secret heroin laboratory, pick up a shipment of the drug and smuggle it into the United States or Canada.

February 27, 1973.-Peroff returned to Rome. Peroff testified that federal agents were enthusiastic about the opportunity to find the secret heroin facility in Marseilles. In return for serving as an undercover agent in this proposed heroin plot, federal drug agents told Peroff he would receive a substantial reward. Peroff testified that the amount of the reward offered him was $250,000. Peroff testified that on the basis of that offer and because the agents threatened to expose him as the informant on the Solarik-Silverman counterfeit case, he was persuaded to enter into this new inquiry as an undercover agent.

March 16, 1973.-The Peroff family, following the directions of federal drug agents, flew from Rome to New York. Unknown to American officials were $10,000 in unpaid bills the Peroffs left behind in Rome.

March 16, 1973.-The Peroff family arrived in New York at the John F. Kennedy Airport where they were met by Customs agent

Richard Dos Santos. Dos Santos took the family to the Ramada Inn at JFK Airport, where they stayed until March 20, a Monday.

March 19, 1973.-Cozzi and Molittieri said, in a wire to Customs headquarters in Washington, that Frank Peroff and his family had departed Rome for the United States on March 16 aboard Pan American Airlines Flight 119. The report went on to state that the Peroff's were given $500 per diem expense money to cover the period March 1 through March 20. The cable said that Cozzi had paid Peroff "extra expenses" of $336 for costs incurred during Peroff's February 15 through February 27 visit to Canada for the cost of an "undercover rental car" which Peroff used in Rome. Another expense paid by Customs, the wire said, was $1,323.50, the cost of air transportation back to the United States for Mrs. Peroff and the five Peroff children. This payment, the cable disclosed, had to do with work Peroff "had accomplished for the Secret Service." Cozzi and Molittieri also warned in the cable that Peroff was the kind of informant who expected the government to pay him more expense money than he was entitled to and that, therefore, agents who dealt with Peroff in the future should be specific and precise about arrangements for payments to Peroff.

March 20, 1973.-Richard Dos Santos had the Peroffs check out of the Ramada Inn at the Kennedy Airport. He took them to a hotel in Brooklyn and told them this would be their quarters while the Bouchard heroin inquiry was conducted. Peroff objected to his family having to stay at this hotel. Peroff told Dos Santos he wanted his family to be lodged at the New York Hilton Hotel. Dos Santos took the Peroffs to the New York Hilton Hotel where they registered in a $66 a day suite. The suite was charged to Richard Dos Santos.

March 20, 1973.-Peroff, at the direction of Customs agents, flew aboard an Eastern Airline shuttle from LaGuardia Airport in New York to Washington, D.C. where he was met by Customs Agent Douglas McCombs. McCombs and Peroff left the main terminal at National Airport and walked to the adjacent General Aviation Terminal where private aircraft are serviced. They were joined by a man Peroff remembered as Bob and identified as being a Lear jet pilot who had just flown in from West Palm Beach, Fla. The pilot, Bob, was accompanied by a Customs agent from the Homestead Air Force Base in Dade County, Florida. It was agreed that Peroff would fly in the Lear jet to Montreal, with Bob piloting the aircraft and the Homestead Air Force Base Customs agent serving as copilot.

March 21, 1973.-Peroff had lunch at Moishe's Restaurant in Montreal with Giuseppe (Pepe) Cotroni, Conrad Bouchard, Claude Lemoyne and Dominic Torrente. Illicit drug transactions were discussed. Cotroni told Peroff he wanted to use the Lear jet to make a shipment of heroin to Windsor, Ontario. Cotroni questioned Peroff extensively to establish that Peroff was a person with connections in the underworld. Following the luncheon, Cotroni told Peroff that he liked him.

March 21, 1973.-Following the luncheon at Moishe's, Peroff, Lemoyne and Bouchard flew in the Lear jet to Quebec City, where Bouchard conducted a meeting with a restaurant owner. They returned to Montreal in the Lear jet that evening.

March 22, 1973.-Peroff provided the Lear jet to Conrad Bouchard, Claude Lemoyne and an associate of Cotroni named Louis Cote. The men flew to Windsor, Ontario, in the Lear jet flown by the pilot named Bob and the Customs agent from Homestead AFB. In Windsor, Cote, Lemoyne and Peroff went to a pizzeria and waited while Bouchard, carrying a briefcase, met in a private home occupied by a woman named Andrea Delisi. Also at the home of Miss Delisi was a Detroit racketeer and known drug dealer named John Fecarotta. Following the meeting Bouchard returned to the pizzeria, picked up Peroff, Cote and Lemoyne and the four men returned to the Windsor airport and the Lear jet flew back to Montreal. Customs agents believed a heroin transaction had taken place in which Fecarotta had bought $30,000 in heroin from Bouchard.

Spring of 1973.-Secret Service agents traced the counterfeit money Peroff had given them to a plant in Passaic, New Jersey. Agents learned that the counterfeit money was printed at the Passaic plant and then shipped to Montreal for distribution. The Passaic installation was "surpressed" by government agents.

April 4, 1973.-Richard Dos Santos wrote a memorandum for his superiors in which he asserted that Peroff was becoming "increasingly disenchanted" and highly critical of the way Federal agencies were treating him. Dos Santos reported that Peroff felt that he had been. enticed into the new investigation on the promise of receiving a big reward but that now the reward offer had been withdrawn and that Peroff felt that the Government owed him "iron clad guaranties" that he be rewarded for his contributions to the investigation. Peroff was complaining that the Government's interest in the heroin case. no longer centered on the location of the clandestine heroin laboratory in Marseilles and that instead government agents now were primarily concerned with gathering evidence against Giuseppe (Pepe) Cotroni. Dos Santos, in his memorandum, said that Peroff now claimed to have been in recent contact with three men-Conrad Bouchard, the racketeer: Vernon D. Acree, the U.S. Commissioner of Customs; and Jack Anderson, the syndicated Washington columnist, Dos Santos said Peroff threatened to take his complaints to the New York news media. and the White House.

April 6, 1973.-Frank Peroff flew to Washington and met with Vernon Acree, the Commissioner of Customs, at which time he complained about money owed him by the Customs Service and about the treatment he had received from Customs Agents.

April 11, 1973.-A 20-point agreement was drawn up at the Customs Service for the purpose of "clarifying several points of misunderstanding regarding the conditions" of Peroff's service to the gov ernment. In the agreement, written up in an April 16, 1973 memorandum by Assistant Customs Commissioner Harold F. Smith, it was asserted that certain expenses of Peroff's would be paid by the Customs Service and that he would continue to work in an undercover capacity on the Conrad Bouchard heroin inquiry. It was also stipulated that Peroff's control agent would be Richard Dos Santos. In addition, the Customs agreement asserted that Judy Peroff and the children would be moved from New York to Puerto Rico.

April 12, 1973.-Customs officials paid Peroff $7,900 in twenty $20 bills, fourteen $50 bills and sixty-eight $100 bills. In addition, Cus

toms officials paid a $2,847 bill the Peroff family had run up at the New York Hilton Hotel.

April 13, 1973.-Judy Peroff and the five Peroff children left New York and flew to San Juan, Puerto Rico where they were met at the airport by Customs agent Octavio Pinol. Peroff himself remained in New York and registered at the International Hotel at the JFK Airport. In San Juan, Pinol took Judy Peroff and the children to quarters in the Villa Cristobal Apartments. Judy Peroff protested that the quarters were inadequate to her family's needs. A dispute broke out, Pinol called Richard Dos Santos and Dos Santos persuaded Judy Peroff to stay at the Villa Cristobal for a few days until better quarters could be found.

April 16, 1973.-Peroff informed Richard Dos Santos that he, Peroff, had obtained improved housing for his family in Puerto Rico, having worked out an arrangement with a condominium owner whose apartment was in Isla Verde, a suburb of San Juan. Then Frank Peroff left New York and flew to San Juan to join his family.

April 25-28, 1973.-Frank Peroff was in Montreal where he worked in an undercover capacity for the U.S. Customs Service on the heroin inquiry involving Conrad Bouchard.

May 2 and 3, 1973.-Frank Peroff met in New York with U.S. Customs officials and described his April 25 to April 28 visit to Montreal. Peroff told Customs officials that Bouchard was planning to use the Peroff executive jet in a 100 kilogram heroin smuggling effort that would require Peroff to fly to Marseilles or Nice, France, pick up the drugs and fly into either Canada or the United States. Peroff told Customs officials that if Conrad Bouchard went to jail Giuseppe Cotroni or John Fecarotta would step in and run the 100 kilogram transaction.

May 3, 1973.-Customs agents John Verklan and Gary Liming, assigned to the Detroit Organized Crime Strike Force, interrogated Peroff at the Statler Hilton Hotel in New York for about two hours in connection with Peroff's knowledge of criminal activities in the Detroit area, in the Bahamas, and with the airplane ride Peroff had provided Conrad Bouchard to Windsor, Ontario the previous March. It was during this interview with Verklan and Liming that Peroff referred to Robert Vesco as a powerful figure in the Bahamas and a person with organized crime connections. Peroff also explained to the agents the techniques he would employ to smuggle into the United States large quantities of heroin aboard an executive jet. Peroff told the agents that the heroin transaction being planned by Cotroni and Bouchard called for a shipment of 100 to 150 kilograms of heroin. The heroin would be purchased at the price of $3,000 a kilogram. Peroff said Mafia operatives in Detroit would manage the heroin once it arrived in the U.S. and that proceeds would be divided three ways between Italian crime families in Detroit, New York and Chicago. Peroff said Bouchard did not prefer to do business with Cotroni but that Cotroni had the resources to finance the transaction and that "Cotroni needs Bouchard for the French connection." Peroff said a gangland war could break out in Montreal because of disputes over how to handle proceeds from drug sales and other matters.