Memorandum

To SAC, San Francisco ((Q(,J}-SF-Cf1}S"5)(P) DQt~ 3/8/92

From
s~ I b7C

Subject Connie Chip Armstrong, et al

dba, Hamilton Taft and Company, et al
San Francisco, Ca.
FBW (B); Mail Fraud, Bankruptcy Fraud, (A);
OO:SF

On the afternoon of March 5, 1992 a meeting was held at

the office of AUSA Michael Yamaguchi to discuss prosecru~t~i~o_n __
strategy in the above referenced matter. Present were~I====~~==~=
712 ESQ. representing the bankruptcy trustee. Also present was Mr.
Ronald Smetana, Deputy Attorney General, Major Fraud unit of the
california state Attorney General's office. SA's will Hatcher and
re resented the FBI.

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On February 27, 1992 the accountant for the trustee

finished his second interim report for the bankruptcy which
includes among other thing a tracing of over $4,000,000 directly
into the pockets of Armstrong himself. The report cites payments
by Armstrong using Hamilton Taft funds to a stripper' and the use
of over $225,000 to purchase Dallas Cowboy "skyboxes lt •
The next investigative step is to apply for an ex parte
order for Armstrong's personal tax returns for 1988, 1989, and
1990. Also several interviews of former Armstrong associates will
be conducted in Texas.
Finally due to the continuing effort being expended by
SA Will Hatcher and his anticipated involvement in this matter it
is requested that he be designated co-case agent for the
remainder of the investigation of this case.