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APPENDIX XIX

DECEMBER 10, 1971.

Memorandum to: John P. Constandy.

From: Stephen B. King.

Subject: Interview and affidavit of Henry Brown re Louis Ostrer.

The attached affidavit was taken by King and Ed Straub in our office on December 9, 1971.

While Brown cannot specifically recall to whom he gave cash regarding the cashing of a check for $50,000 issued by the Executive Life Insurance Company of New York to Cy R. Snyder he readily admits cashing checks made out to various Ostrer associates and/or organizations and giving cash to Ostrer.

COUNTY OF NEW YORK,

State of New York, ss:

I, Henry Brown, 2185 Valentine Avenue, the Bronx, New York, having been advised of my rights, make the following statements voluntarily and freely to Stephen B. King and Edward Straub who have identified themselves to me as investigators for the Permanent Subcommittee on Investigations of the United States Senate Government Operations Committee. No coercion or intimidation have been made to me.

For the past 40 years I have been in the factoring business in New York City. For 35 years I owned and operated Midtown Commercial Corp. at 301 W. 39th Street, New York City. As a factor I have known Louis Ostrer for approximately 15 years. I would estimate that in the past 3 years I have cashed $1,000,000 worth of checks for Louis Ostrer. I am sure that I am the only factor with which Ostrer deals. Louis Ostrer currently owes me about $260,000 through loans and other dealings. I expect to collect this money.

I know Louis Ostrer to have many business operations, the principal one being insurance. Until he got in trouble he was an outstanding insurance salesman. Now that his license to sell insurance has been revoked, I know him to be associated with or employ the following individuals or organizations:

Dina Gelman, Seymour Greenfield, Cy Reeves Snyder, William Kilroy, Julius November, Esq., Ben Wolf, CPA.

Fringe Programs, Inc., Sutter Agency, Inc., Modern Agency, Inc., Viscount Agency, Inc., Cy Reeves Snyder Agency, Dina Gelman Agency.

Ostrer has developed a program for unions which he administers by the way Fringe Programs, Inc. Insurance policies on individual union members is the main feature of the program. Ostrer expects to make a lot of money from this plan for which I am hopeful because it means I will get the money he owes me.

Regarding the plan for unions, Ostrer has brought to me on occasions checks for cashing. Most of these checks were in the name of the above-mentioned individuals and/or organizations. I would never cash any checks for these people unless Louis Ostrer had approved the transaction. Many times Ostrer, accompanied by one or two of these people would come to my office where I would cash the checks. If they were for large amounts I would have to go to my bank, the National Bank of North America, located at 7th Avenue and 38th Street, New York City. My account number is 112 7473. Ostrer would either take the money and put it in his pockets or stuff it in his bosom, or divide it up among his associate/s with instructions for the dissemination of it. Kilroy, who often accompanied Ostrer, acted as a bodyguard; he carries a gun for which I believe he has a permit.

I remember cashing a check for Ostrer on about January 25, 1971 for $50,000. I remember the check being made out to Cy R. Snyder and endorsed with that signature. Cy R. Snyder is known to me as Cy Reeves, a comedian who resides in Miami, Florida. I do not recall who brought the check, or to whom I gave the money or in what amounts. It is unlikely I gave the whole $50,000. It may have been spread over a couple of days, or Ostrer's obligations to me reduced by a certain amount. I keep no records and therefore am unable to specifically recall the details of this transaction.

When in business (I have been retired for the past 5 years) my charge to Ostrer was one point or percent for check cashing and two percent per month on the outstanding balance of his obligations to me.

I specifically remember Östrer bringing me a cashier's check on the Kings Lafayette Bank, New York, for $25,000 on about January 27, 1971. I retained this money and reduced Ostrer's obligation to me by that amount.

Ostrer now takes most of his checks to Rego Trading Corporation, located at 301 W. 39th Street, New York City, which succeeded Midtown Commercial. I still see Ostrer often and occasionally still cash checks and loan him money. The above statements are true and correct to the best of my knowledge.

Sworn to before me this 9th day of December, 1971:

HENRY BROWN. MOLLY E. BROWN,

Notary Public State of New York.

Qualified in New York County, Commission Expires March 30, 1971.

COUNTY OF NEW YORK,

State of New York, ss:

I, Henry Brown, 2185 Valentine Avenue, Bronx, New York, having been advised of my rights, make the following statements voluntarily and freely to John Tschirhart and Michael Cesario who have identified themselves to me as investigators for the Permanent Subcommittee on Investigations of the United States Senate Government Operations Committee. I have not been coerced or intimidated in any way.

For the past 40 years I have been in the factoring business in New York City. For 35 years I owned and operated Midtown Commercial Corporation at 301 West 39th Street, New York City. I no longer operate as Midtown Commercial Corporation, having retired from this capacity five years ago.

As a factor I have known Louis C. Ostrer for approximately 15 years and have cashed approximately $1,000,000 in checks for him during the past three years. At the present time, I still have considerable dealings with Mr. Ostrer. In fact, Mr. Ostrer currently owes me about $250,000.

Because I keep no records, I cannot recall the details of specific transactions I have had with Mr. Ostrer. However, in general, Mr. Louis C. Ostrer or Mr. Seymour Greenfield would contact me concerning the cashing of a check they had in their possession or the advancing of funds on a check which they expected to receive in the near future. I would cash the check in question or advance the money on the expected check, giving the money to Mr. Ostrer or Mr. Greenfield or one of their associates-either a Mr. William Kilroy, Mr. William Felner, or Mr. Sonny Ratoff who is my nephew. Mr. S. Ratoff is no longer employed as an associate of Mr. Ostrer or Mr. Greenfield. However, I would only cash checks or advance money at either Mr. Ostrer's or Mr. Greenfield's direction. For these services, I would charge only a nominal fee-such as $50.00 or $100.00 depending upon the amount of the check.

With regard to the attached checks:

(1) Check # 6944 from Executive Life Insurance Company of New York dated 1/25/71, payable to Cy R. Snyder for $50,000 (attachment #1)

I cashed this check for either Mr. Ostrer or Mr. Greenfield and deposited the check in my account. As I stated previously, either Messrs. Ostrer, Greenfield, or one of their associates (Messrs. Kilroy, Felner, or Ratoff) was given the $50,000 in cash. I did not give the cash to Mr. Cy Reeves Snyder, the payee of the check. From previous conversation I had with Mr. Snyder, however, I knew he approved of the transactions. In fact, he told me that Messrs. Ostrer and Greenfield had a Power of Attorney to use his signature.

(2) Check #6945 from Executive Life Insurance Company of New York dated 1/25/71, payable to Cy R. Snyder Agency, Inc., for $35,000 (attachment #2)— I cashed this check for Mr. Ostrer or Mr. Greenfield, giving them or their associates a total of $35,000 in cash. As with the preceding check, Mr. Snyder approved of this transaction.

(3) Check #20523 from Trans World Life Insurance Company, dated 9/22/71, payable to Viscount Agency, Inc., for $25,000 (attachment #3)

I cashed this check for Mr. Greenfield giving him or his associates (Mr. Kilroy, Mr. Felner, or Mr. Ratoff) $25,000 in cash.

(4) Check # 21145 from Trans World Life Insurance Company, dated 10/18/71, payable to Viscount Agency, Inc., for $20,000 (attachment # 4)

I cashed this check for Mr. Greenfield giving him, or his associates, $20,000 in cash.

Some of the cash given on the above four (4) checks may have been advanced up to several weeks before I was actually presented with the checks. In such cases, upon receipt of the check I would merely offset against the face amount of the check the monies advanced against it and give Messrs. Ostrer, Greenfield or their associates, only the remaining amount due on the check. However, in any event, I gave cash for the full face amount of these checks either before or after I received them.

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