Box 12, Folder 29, Document 60

Box 12, Folder 29, Document 60

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

In Reply, Please Refer to

File No.

Houston, Texas
October 19, 1967

Re: FRANK BARKMAN WATERS,
also known as
Frank B. Waters



On April 18, 1961, a review of the military service
record of FRANK BARKMAN WATERS at the Military Personnel Records
Center, St. Louis, Missouri, disclosed that he enlisted in the
United States Army Air Corps on March 17, 1941, and was honor-
ably discharged on August 4, 1941, due to flying deficiency.

He re-enlisted on November 21, 1941, and was honorably dis-
charged on May 15, 1942, as an Aviation Cadet to accept a com-
mission. He was appointed Second Lieutenant, May 16, 1942,

and was honorably released from active duty on November 3, 1945,
by reason of demobilization. His physical doscription was shown

as follows:

Namo

Date of‘ Birth
Place of Birth
Height

Weight

Race

Hair

Eyes

Education

a.

FRANK BARIQAN WATERS
3/15/18

Electra, Texas

5fg"

198 lbs.

White

Brown

“Blue

3 years college;
Hardin — Simmons
University,
Abilene, Texas



This document contains heither recommendations hor conclusions
of the FBI. It is the property of the FBI and is loaned to
your agency; it and its contents are not to be distributed

outside your agency.

5


Re: FRANK BARKMAN WATERS

Marital Status - Married
. Wife - ELOISE R. WATERS
Houston, Texas
Residence 22i3 Del Monte
Houston, Texas

On March 27, 1959, an individual employed by
WATERS, upon interview, advised as follows:

WATERS, while in the United States Air Force,
met and married his present wife, formerly Mrs. ELOISE
CANTER, nee Eloise Roberts, who was very wealthy, in her
own right.

WATERS is well-known in Las Vegas, Nevada, and
has the reputation among the pambling element as being a
very big loser. WATERS retains on his pay roll, at a
salary of $1,000.00 a month, a public relations man, one
JOE LUCIA, who is a well-known gamblex in the Houston,
Texas, area, ,

On May 13, 1958, WATERS received a letter from
PHILIP FRANK KASTEL, well-known hoodlum of New Orleans,
Louisiana, and operator of the Beverly Country Club in that
city. In this letter KASTEL attempted to persuade WATERS
to purchase the Beverly Country Club. On January 4, 1959, WATERS
is said to have made a $25,000.00 loan to KASTEL for six
months at five per cent interest,

According to this source, gamblers constantly
call WATERS on the private line in his office. Two of
the individuals who call frequently are LEO ROSENBERG and
one "JOE" from Las Vegas, Nevada. PHILIP FRANK KASTEL has
called on various occasions. MARION R, ASKIN, Comptroller
of the Frank Waters Oil Company, is reported to have given
instructions that when a call is received from KASTEL, KASTEL's
hame is never to be mentioned and that he is to be advised
that there is a long distance call from New Orlenas and he will
take the call on the private telephone,

oe
Re: FRANK BARKHAN WATERS



; Information was received on August 19, 1959,
from a reliable source, that PHILIP FRANK KASTEL was
‘planning to re-open the Beverly Country Club two weeks
before Thanksgiving and that there would be gambling
at the Club when it re-opened, The sale of the
Beverly Country Club in July 1959 was reported to have
been a paper transaction with no change in the nanagement.
The officers of the new corporation, Progressive :
Properties, Inc., were given as HARION R. ASKIN,
Comptroller of WATERS and THEODORE H, RIGGS, legal
counsel for WATERS,

It was further reported by this source that
KASTEL's partner in the operation of the club was FRANK
WATERS and that no one else had an interest in this
club.

On March 29, 1960, this same source reported
that the Beverly Country Club in New Orleans was re-
opened on December 26, 1959, and that the gambling
casino of the club was ready to commence operation.

Information was received that gambling commenced
at the Beverly Country Club on January 11, 1960.

PHILIP FRANK KASTIEL was formerly an associate of
well-known racketeer, FRANK COSTELLO, and has been publicly
identified by COSTELLO as his partner and New Orleans
associate. KASTEL was also associated with COSTELLO and
reported La Cesa Nostra menber CARLOS MARCELLO in the
operation of the Beverly Country Club in Jefferson Parish,
Louisiana, during the 1940's.

On October 6, 1951, FRANK BARKMAN WATERS was
interviewed by representatives of the FBI, Houston, Texas,
at which time he advised as follows: :

WATERS stated he first met AL SMILEY 10 or 11
years previous, in Los Angeles,. California. SMILEY
possessed, at that time, a .12500 interest in an oil well
located approximately 60 miles south of Odessa, Texas.

2a
RE; FRANK BARKMAN WATERS

JOE LUCIA also possessed an interest in this same well.
SMILEY, during nner aig 1961, utilized a suite maintained
by WATERS at the Sun Valley Motel, Houston, Texas.

On September 20, 1961, Captain W. W. STEPHENSON,
Houston, Texas, Police Department, advised he had arrested
AARON SMEHOFF, also known as Al Smiley, on September 18,
1961, at the Sun Valley Motel, Houston, Texas. One PETER
EDWIN GEBHARD was arrested with SMEHOFF. Captain STEPHENSON
advised these two individuals were arrested for bookmaking -
investigation, both were released on September 19, 1961, and
both were told to leave the City of Houston immediately.

On September 18, 1964, the Federal Grand Jury,
Houston, Texas, indicted JOSEPH P. LUCIA and 11 other
individuals for violation of the Internal Revenue Code in
connection with bookmaking activities. LUCIA entered a |
plea of "guilty" to two counts of this indictment, and on
February 1, 1965, he was sentenced to a term of six months
imprisonment and given a $10,000.00 fine.

On February 21, 1963, Lt. W. T. HIGGINS, in
charge of the Vice Squad, Houston Police ‘Department, advised
he had been informed FRANK ERICKSON, a well-known gambler
and bookmaker from New York City, was registered at the Shan-
rock Hilton Hotel, Houston, Texas. HIGGINS advised that later
on that day, he and another officer had personally called on
FRANK ERICKSON, at the latter's suite at the Shamrock Hilton
Hotel. HIGGINS advised ERICKSON explained to him he was in
Houston, Texas, strictly for social reasons and that he was
in Houst on to visit his good friend, FRANK WATERS, whom he
‘had known for a long time ERICKSON stated he and WATERS
intended to play golf during his stay in Houston and that he
planned to return to New York City on February 24, 1963.

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a eee

RE: FRANK BARKMAN WATERS

On February 27, 1963,-ROXIE SIMMONS, Security Officer,
Shamrock Hilton Hotel, advised FRANK ERICKSON checked ~
into the hotel on February 18, 1963, and departed on.
February 24, 1963. Reservations for ERICKSON at the
Shamrock Hilton Hotel were made by the Auditor of the-
Frank Waters Oil Company, Houston, Texas. -

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