LETTER TO SAm J. PAPICH FROM SHERFIELD RE RESULTS OF INVESTIGATIONS

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005382737
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: June 23, 2015
• Document Release Date: September 25, 2009
• Case Number: F-2009-00807
• Publication Date: May 24, 1955

WASHI4GTON 25, D. C.
Director, Federal Bureau of Investigation
U. S. Department of Justice
10th and Pennsylvania Avenue, N. W.
Washington, D. C.
Dear Sir: ecG1 N\11wP2 Ca ~"7?~~l-fir
ter. r~
Reference is j~iade to your letters dated 28 November 1952,
3 23 November 1933 and 30 MarcW-1954 to this Agency, captioned
V "Frank G. Wisner, Miscellaneous - Information Concerning";
reference is also made to our letters to your Bureau concerning
Mr. Wisner, dated 22 December 1952 and 19 April 1954.
Office covering the allegations against Mr. Wisner, including
those in the above references, as well as those received from
other sources,
The attached report contains all of the allegations,' and the
results of our investigation. This investigation indicates that
the allegations are based on fabrication, dis or ion of fact any
Rumanianxeugee gossip
Since it is possible that the circulation of these allegations may
6 Q JUN 131955
Mr.krolsan_.
irr. Boardman-
Mr. Nichols-
Mr. Sizoo-
Mr. W terrowd_
Tele. Room---
APPROVED FOR
RELEASED DATE:
22-Sep-2009
 This memorandum represents a study and research and investigation
made of 21 allegations which have been made in the past against the char-
acter and loyalty of Frank Wisner. The purpose of the research was
to determine what factual basis there may be to the allegations if any.
The allegations which have been made against Mr. Wisner's
character and loyalty are 21 in number; however, they fall into the
following 1Z general categories:.
1. Allegations of the Subject's association and intimate relhtion-
shipwith Tanda Caragea, an alleged Soviet espionage agent whom
Subject knew in Bucharest, Rumania in 1944-
2. An allegation that the Subject had a part in the profits from
the sale of medical supplies to the Russians while in Rumania.
3. Allegations of the Subject's associations, business relation-
ships with, and activities in behalf of Max Ausnit, a wealthy Rumanian;
now in the United States and against whose moral character allegations
have been made.
4. An allegation that Subject profited from a CIA operation in-
volving ships in Turkey owned surreptitiously by CIA.
5. Allegations that NCFE and RFE are covers for Subject's
private dealings and that they are populated by "cronies" of the Subject.
6. Allegations that the Subject prevents entry into the United
States of Rumanians who are not in sympathy with the Rumanian.
National Committee.
7. An allegation that Subject's name was found in the telephone
book of a Jelke vice case "call girl".
S. Allegations that Subject is being blackmailed by two Rumanians
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 I
who had knowledge of an alleged affair between Wisner and a woman from
the Soviet Legation in Bucharest, Rumania while Subject was there.
9. An allegation that Subject made it possible for an alleged British
agent to get information out of Rumania into Italy in an OSS pouch in
1944-45.
10. An allegation that Subject set up a short-wave "radio station
in Tanda Caragea's home in Bucharest in 1944 to put out pro-Russian
11. An allegation that Subject knew Nadia Gray, an alleged Soviet
espionage agent in Rumania, and that he was interviewed concerning
her in connection with her application for a visa to enter the United
States.
Pa. An allegation that Subject is not "sufficiently anti-Communist"
because he backed a Third Force program in China.
Of the 21 allegations which have been made against M Wisner,
15 can be reasonably assumed to have come from Nicola e,7 alaxa, or
his associates.
Of the remaining six allegations, two, have been known to have, come
from an investigator with a Senate investigating subcommittee, who has
been attempting to build a case for Congressional hearings on CIA opera-
tions.
Of the remaining four allegations, one is reported to have originated
with a former member of the American Military Unit who was in Bucharest
at the same time Wisner was there and who was the subject of a proposed
court-martial action for his conduct while in Rumania. (Major Robert
Bishop).
Of the remaining three allegations, two originated with a Rumanian
emigre who attempted to enter the United States in 1950 and was refused
entrance on loyalty and character grounds (Nadia Gray).
The remaining allegation possibly came from Malaxa or his associates;
however, the indications of this are not as strong on this one as they are on
the other 15, which can reasonably be attributed to Malaxa and his associates.
In addition to the above, it is noteworthy that Major Robert Bishop,
a former OSS employee who served in Rumania from September 1944
until the Spring of 1945, has written a book published in 1948 entitled
"Russia Astride the Balkans". In the book Bishop makes certain
 statements which it is believed have been the subject of distortion and
embellishment by the above named sources to form some of the allega-
tions which have been circulated about Mr. Wisner.
The following background information is being set forth about the
activities of the OSS Mission in Bucharest during 1944 and 1945 in order
to provide a general picture of the nature of his work while there,
inasmuch as the majority of the allegations relate to Mr. Wisner's
activities and associations while there. Mr. Wisner was commanding
officer of the OSS Mission in Bucharest for a five-month's period from
August 1944 through January 1945. He and a small group of Americans
.were among the first of the Allies into Bucharest when the Germans
evacuated from there in August 1944. Since Germany was the principal
enemy of the Allies at that time, every effort was being made to secure
positive intelligence information concerning the Germans. The OSS unit
when it first arrived was billeted and had offices in the Bragadiru house
1n Bucharest. This was a large. home owned by Mr. and Mrs. Dimitru
ragadiru, who themselves moved into, the servants quarters which ry
were separate and apart from the main house. Also living in the l '' .'c r? C
Bragadiru home were several members of the 15th Air Force and,
subsequently, members of the Armistice Control Commission, and
also for a time some members of the Mediterranean Army Air-Force.
In addition to providing office space and billets for some of the personnel
of OSS, the Bragadirus also operated a dining facility for some of the
Americans. In addition, in this home OSS established its radio communi-
cations facility. However, at no time was any radio propaganda activity
authorized during Mr. Wisner's stay and no known, radio propaganda
activity existed in 1944 or 1945.
The OSS unit during 1944 - 1945 had a complement of approximately
40 people at its peak of personnel. It reportedly turned in over 750 intel-
ligence reports in less than eight months, seized many tons of German
documents, over ZOO rolls of German films on various subjects which
chronologizdd the German and, Russian War, obtained information early
in March 1945 that Germany would probably surrender on or about
7 May 1945, obtained or a ion on the organization of secret plants
in which part of the -l and-2 bombs were made and determined the
location of the Abwehr Radio Station for Southeastern Europe. It also
obtained detailed information concerning Japanese espionage and the
relation of certain Japanese in Rumania with the Russians which
enabled the American Mission in Rumania to force the Rumanian
Government to intern certain dangerous Japanese. The OSS unit which
 Mr. Wisner headed was, in addition, .extensively reporting during this
period on Russian espionage and penetration attempts against the Allies in
Rumania. Agents controlled by the OSS unit in Bucharest did, in fact,
penetrate the Russian Intelligence Service and politbureau in Rumania;
they obtained details of Russia!s plans for a Danube River monopoly,
which actually materialized in July 1945. As examples of the counter-
espionage activities of Mr. Wisner's unit, 'which benefited the British
as well as the United States, were discoveries by a branch of his unit
that the Russians were obtaining copies of British cables in and out of
Rumania, and that an employee ee of the British, Nadia N _erescu was a
- ~~
Soviet agent.
Mr. Wisner, as head of the OSS unit in Rumania, had official
duties which required him to attend numerous social functions and to
meet numerous people, some of whom he and others of his unit sub--
sequently developed as excellent sources of intelligence information.
Official and covert employees of the Russians did attend suchfunctions
on occasions; however, it is to be. recalled that the official attitude
between the Russian and American complements in Rumania toward
each other was quite different than it would be now, since Russia was
then our ally and every effort was being made to defeat the principal
enemy, Germany. Official liaison between American and Russian
officials was maintained because it was hoped that a free exchange
of information relative to German Order of Battle, fortifications and
other information of an intelligence value would be obtained. Partici-
pating American officers were acting under Washington orders.
e Judith op on trial, a report on
Malaxa from CIA to the FBI was introduced into evidence. This report
dated 11 May 1948 indicated the unsavory reputation and character of
Malaxa. Malaxa, without doubt, learned of that report. Subsequently,
Immigration and Senate hearings were held on Malaxa's attempts to
gain permanent residence in the United States. Malaxa was represented
at these hearings by Ugo Carusi, former Commissioner of Immigration.
In addition, there has been constant strife between the two main factions
Radescu and in turn Malaxa, the other
National Council and allied Rumanians.
IDC
 Through any of the, above three possibilities, or others, Malaxa, could have
learned that Wisner was in a key position in CIA.
Prior to entering Government service in 1947, Mr. Wisner represented
Max Ausnit in a legal proceeding for breach of contract, against Nicolae
Malaxa. Now that Mr. Wisner is with, CIA, Mala3ca is apparently assuming
that Mr. Wisner is the person responsible for opposing Malaxa's application
for permanent residence in the United States, which is not true. Mr. Wisner,
because he acted as Mr. Ausnit's attorney in a legal proceeding against
Malaxa seven years ago, has, in fact, as a matter' of ethics and of his own
volition, declined to become personally involved in any way in CIA's comments
on Malacca to Immigration.
It is believed that the above background information serves as a basis
for evaluating the allegations which-have been made against Mr. Wisner.
1It points up several things--one of which is that almost all of the allegations
against Mr. Wisner concern his alleged associations and activities while in
Rumania for only a five-months period at the close of World War II, and
that these allegations are clearly traceable to Malaxa.
An FBI investigation was conducted on Mr. Wisner in 1949 with com-
pletely clear resultsL-on his back round, character an, loyajr. In addition,
he has been processed, in CIA, as have other CIA employees., with entirely
favorable results.
SPECIFIC ALLEGATIONS
Allegation #1 That on at ?lea.stone occasion, while Mr. Wisner was
with OSS Bucharest, he was said to have placed Vin-official American plane
at the disposal of Tan "1~d Earagea,` also known asra_gadru,, for a trip to
Switzerland and that the overt purpose of her trip was to do some shipping
witli K money Mr. Wisner had given her; and that actually the woman went
to Switzerland to "submit her report to her Soviet superiors. " (Source:
Ladislas Farago).
Investigative results: Relative to the plane trip taken by Mrs.
Caragea, Mr. Wisner states that the onlyparthe or his OS5 mission
played in arranging a trip for her was in the passing of certain communica-
tions between the Mediterranean Army Air Force headquarters at Caserta,
Italy to Mrs. Bragadiru., He states that her trip was of no concern to him
or his %,Sx,-iission and that they paid no attention to it. He states that he
V has never nor has he known of any arrangements she allegedly made in
Switzerland. He had heard that she was said to have gone to Switzerland
as a repre.sentative of the Rumanian Red Cross; however, he had no further
information relative to her mission. He further states that he did not give
her any money to spend on her trip and points out that she was quite wealthy
and had no need of funds.. He states that he has had no connection or associa-
tion with her since he left Italy in February 1945. He said that he has on
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 occasion received Christmas cards from her and that on one occasion
while Mr. Wisner was with a law firm in New York City after World
War II, lie was called on by an individual bearing a letter of introduction from
her, who expressed an interest in getting patent rights from Dupont for the
manufacture of -nylon in Rumania; however, that he has no idea as to what
became of this proposed venture. Relative to the association of members.
of OSS with Mrs. Bragadiru while in Rumania, Mr. Wisner stated, as has
been mentioned earlier in this report, that the OSS mission was for a time
billeted in and maintained office space in the main Bragadiru house, that
in addition members of the 15th Air Force and the Mediterranean Army
Air Force were also stationed in the main Bragadiru house for a time and -
that messing facilities were also provided for some of these personnel in
therBragadiru house. Mr. Wisner stated that during this time Mr. and
Mrs. Bragadiru resided themsdlves in an apartment over a garage apart
from the main building.
Mrs. Bragadiru stated that the trip was personally facilitated by
Lt. General Ira C. Eaker of the Mediterranean Army Air Force as an
award to her for her past service rendered to American air crews which
landed in Rumania in 1943 and 1944 and were held as prisoners of war.
It is further pointed out that Mr. Wisner left Rumania during the last-
week of January 1945 and arrived in Washington, D. C. on 9 February 1945.
Mrs. Caragea stated to American authorities in Austria in 1948 that her
trip to Switzerland extended to March 1945. Mr. Wisner was next
authorized to travel on 20 April 1945 and would have been in Washington, D. C.
at the time of Mrs. Caragea's return to Rumania from Switzerland.
Relative to the allegation that Mrs. Caragea was a Soviet agent, it is
to be pointed out that in a conversation to the American authorities in
Austria in 1948, Mrs. Caragea stated that she was first approached in
1947 to work for the Rumanian 5SI and there is no mention of her having
worked for them during the period 1944 .. 1945 while Mr. Wisner was in
Rumania.
Allegation #2 -That Mr. Wisner, while residingin the home of
Tanda Caragea (at one time an alleged Russian agent, and earlier an
alleged German agent) in 1945 requisitioned an Army plane to pick up
medical supplies in Switzerland; that Caragea accompanied Mr. Wisner
on this trip, picked up the medical supplies, and upon returning to Rumania,
half of the supplies were turned over to the Red Cross and the other half
was allegedly sold to the Soviet Union, with Mr. Wisner and Mrs. Caragea
splitting the money. (Source: FBI report of 30 March 1954, subject
"Frank WISNER; Information Concerning-fl) 5 / `k)
Investigative Results: Same as set forth under Allegation #1.
 0
Allegation #3 That while Mr. Wisner was an OSS officer assigned to
Bucharest; he lived with Tanda Caragea in a home owned by her which was
allegedly one of several houses in Bucharest taken over by the American
Military Mission. (Source: FBI report of 30 March 1954, subject "Frank
WISNER; Information Concerning.
Investigative Results: Same as set forth under Allegation #1.
The FBI report referred to above states that a Colonel Anderson
of Miami, Florida and a Colonel Thomas Tucker, with International
Telephone and Telegraph, New York City, could furnish information relative
to Mr. Wisner's association with Caragea.. It is pointed out that Colonels
Anderson and Tucker have themselves had a personal and financial interest
in the welfare of Nicolae Malaxa. The interests these two individuals, have
had regarding Malaxa's welfare are reflected in an FBI report dated
31 March 1949 entitled "Nicolae Malaxa, internal security --R-RU" pages
30, 31, 32T 01 (V o
Allegation #4 - That Mr. Wisner was, very close to Mix/,,Ausnit,
milli onoire_RumanianAn the United States who was reportedly involved
in the Jelke vice case in New York, and allegedly used vice to gain
control of various officials. Ausnit is a bitter enemy of Malaxa.
(Source: FBI report of 30 March 1954, subject "Frank Wisner; Informa-
tion Concerning. ") Gam, t (V',)
Investigative Results: Mr. Wisner states that in-1947 while, an
attorney in a private law firm he served as counsel for Mr. Ausnit in a
legal proceeding for breach of contract against Nicolae Malaxa. Mr.
Wisner further states that he has never had and does not now have any
business or financial connection with Mr. Ausnit and he has never had
any part in transferring any assets of Ausnit's out of Rumania.
The Security Office desires to point out that it is a matter of
record that Mr. Wisner, as a matter of ethics, has in the past from time
to time personally declined to become involved in any way in Agency matters
pertaining to Malaxa. In addition, the investigation conducted by the
Office of Security has not developed any evidence or indications that
Mr. Wisner has had any business or financial transactions with Ausnit
other than in the one instance mentioned above in which Mr. Wisner
served as counsel for Ausnit in the breach of contract suit against
Malaxa, which was at a time prior to Mr. Wisner's connection with
this Agency.
 of the business transactions of Max Ausnit, and that he was influential in
smuggling some of Ausnit's assets out of Rumania for a consideration.
(Source: Ladislas Farago.,)
Investigative Results.: Same information as set forth under
Allegation #4.
Allegation #6 - That Mr. Wisner is the silent partner of Ausnitand
that Ausnit is supposed to do business with the Soviet Union and her
Satellites, and that Mr. Wisner has a share in the profits. (Source:
Ladislas Farago.)
Allegation #7 - That Mr. Wisner's name was in the telephone book
of a woman named Patlard, a "call girl" notorious, in the Jelke vice
case. (Source: Ladisas Farago.)
Investigative Results: Confidential informant who has furnished
reliable, information in the past and who is in a position to know the truth
of the above allegation, has advised that Mr. Wisner's name does not
appear in the telephone book of Pat Ward.
Allegation #8 - That Mr. Wisner profited personally and substantially
from several secret operations of CIA, especially from a, clandestine
"deal involving some ships in Turkey owned surreptitiously by CIA.
(Source: Ladislas Farago.)
Investigative Results: Mr. Wisner has personally certified to
the Office of Security that he has never profited either directly or indirectly
from any Secret operations of CIA or OSS and states that there is absolutely
no basis whatever for any such charge. Investigation'of the Office of Security
has developed no substantiation of any such charge.
Allegation #9 - That other "secret operations" of Mr. Wisner in CIA
are known in detail to Kurlaser from data supplied by an Army officer
or official; that this same informration is. available in detail to the McCarthy
and Jenner Committees, and that these operations are merely "covers" for
Mr. Wisner's private dealings and serve largely for purposes of his personal
aggrandizement and they are ineffectual and a waste of the taxpayers' money.
(Source: Ladislas Farago.)
Investigative Results: Mr. Wisner has personally certified the
same as set forth under Allegation #8.
 Allegation #10 - That Kurt Glaser indicated that the NCFE and RFE were
CIA operations of Mr. Wisner Is and that they are ineffectual and a waste of
taxpayers' money,. that they are populated with "cronies" of Mr. Wisner's
who couldn't get any other job and that both Mr. Wisner and his friends
profited personally from their association with these organizations.
(Source:Ladislas Farago).
Investigative Results: Same information as set forth under
Allegation #9.
Allegation #11 - That Mr. Wisner is in contact with the Rumanian National
Committee, Washington, D. C. , constantly and that he endeavors to prevent
or restrain the entrance of the Rumanians who are not in sympathy with the
Committee. (Source: FBI letter 28 Novem er 1952, subject "Frank G.
Wisner; Information Concerning. ") 6 1 (\
Because of the
mechanics of the immigration prcedures in this country and because of
the mechanics of the internal operation of CIA, the Office of Security is
of the opinion that it would not be possible for any one individual to prevent
or restrain the entrance of any particular group of Rumanians into the U. S.
solely on the basis that they were not in sympathy with the Rumanian National
Committee.
Allegation #12 - That William I. Heimlich advised the FBI that he had
heard a rumor from Warren Magee, a Washington attorney, about Mr. Wisner.
Magee had in turn heard from members of the "Free Rumanian Council" that
Mr. Wisner had cohabited with a woman from the Soviet Legation in Bucharest
when Mr. Wisner was with the American Embassy there, and that Mr. Wisner
had been seen in Paris, France, according to Rumanian sources, with this
woman, presumably about the time Mr. Wisner was in Bucharest. (Source:
FBI report 23 November 1953, subject Frank Wisner. ") 5 (((,t,)
Investigative Results: Unless, this allegation refers to Tanda Caragea,
who was not known to have been connected with the Soviet Legation in Rumania _
during the time Mr. Wisner was employed there, there is nothing to tie this
allegation in with anyone Mr. Wisner may have known while in Rumania.
The allegation is further identified as a rumor, and not a known or provable
fact, by Heimlich himself. Members of the "Free Rumanian Council" refers
to a group in Malaxa's faction of the Rumanian emigres in this country.
J This is a non-specific and vague rumor which does not warrant further
comment until after Magee can be interviewed as, to the two sources of his
information on this subject. 4
Allegation #13 - That members of the "Free Rumanian Council" had ) (lIil
4 CIA aoet N,rr PMM4 to
m"crevisi.l MAGEE - ?ere.
CIO -s'ILS~sr wW 8
 told Warren Magee that Mr. Wisner was being blackmailed by two Rumanians
who had knowledge of Mr. Wisner's alleged affair with the woman from the
Soviet Legation in Bucharest, Rumania, when Mr. Wisner was there with the
American Embassy. (Source: FBI report 23 November 1953, subject'
"FRANK WISNER.. ") .S t tV_)
Investigative Results: Mr. Wisner states that he is not aware of
any blackmail attempts ever having been made against him by persons of
Rumanian nationality or for any reason whatsoever. He says that he has
constantly been subjtected to attacks and abuse but that at no time has anyone
to his knowledge ever sought through threats or otherwise, to do something
v against his will or better judgment. AM NtM _Co/d+~ecDn+~
C!r-
Investigation by the Office of Security has developed no evidence or 19
indications of blackmail attempts to date.
Allegation #14 - That Major Robert Bishop told Lieutenant Colonel Ross
in 1945 that Mr. Wisner had made it possible for one Archie Gibson to get
information out of Rumania by including it in OSS pouches from Bucharest
to Italy. Gibson was described by Ross as a somewhat dubious character
who posed as a British newspaper correspondent and who was supposed to
have worked for the British government as an agent, according to Ross.
Bishop allegedly told Ross that the British had discovered Mr. Wsner's
actions and he expected them to make such a"protest that it would`"cause
action against Mr. Wisner, possibly a court-martial, in Washington, D. C.
(Source: Report on X-2 operations in. Bucharest made by Lieutenant Colonel
Ross, 30 April 1945.)
Investigative Results: Information on occasions was legitimately
transmitted by OSS Bucharest for British Intelligence, as a matter of official
cooperation. On one occasion, information was transmitted for British
Intelligence from Bucharest, Rumania, to Bari, Italy, which involved
material furnished by Gibson; however, this was done at the specific
request of British Intelligence and the destination was an official unit of
British Intelligence with whom OSS was in official liaison.
Allegation #15 - That Mr. Wisner, while residing in Caragea's home
in Bucharest in 1944 set up a short-wave radio station which was used to
put rnut pro-Russian material. (Source: FBI report of 30 March 1954,
subject "FRANK WISNER. ") S/ C V-)
Investigative Results: OSS records reflect that OSS Headquarters in
Bucharest, Rumania were located at the Bragadiru home in ,Bucharest, when
the Americans first were allowed in Rumania in 1944. There is no evidence
to show that any radio equipment used by OSS was used to put out any pro-
Russian material, nor used for any propaganda purposes whatever.
 states that there was., no propaganda or pro-Russian broadcast during the
period September 1944 to February 1945 when Mr. Wisner was in Rumania.
Allegation #16 That Nadia ray, an alleged Soviet espionage_agent,.,
claimed to have known Mr. Wisner as a me`m`5er of the American Military
Mission in Bucharest fairly well, but only socially, and had heard nothing
of him since his departure from Bucharest. (Sou`ryyyyy~~ e: FBI report 25 March
1952, "NADIR GRAY, was. , ESPIONAGE - RU'. ") S 1 (c-)
Investigative Results: Mr. Wisner stated in 1950 that he had seen
Nadia Gray about six times in Bucharest in 1944 - 45, five of these being
at social functions, and one at the office of a British Army officer in
Bucharest at a chance meeting. Mr. Wisner stated that Nadia Gray was
said to be of a poor moral reputation, that she was rumored to have been
connected with the Soviets, and in connection with her application for a visa
to enter the United States, Mr. Wisner advised regarding her loyalty that
her personal self-interest would overshadow all other considerations with
her.
Furthermore, it should be pointed out that the OSS Unit which
Mr. Wisner commanded in Bucharest officially alerted the British in
1945 to the fact that Nadia Gray, then an employee of the British, was a
Soviet agent.
Allegation #17 - That Mr. Wisner was interviewed concerning Nadia
Gray in connection with her application for a visa to enter the United States.
(Source: FBI report dated 25fMarch 1952, entitled "NADIA GRAY. I') s f r(~ )
Investigative results: Same as set forth under Investigative Results
under Allegation #16.