8. Corporate Organizational Profile #7 (Chart J)

Part: 
Four
Chapter: 
4
Bon Jay Sales is a wholesale pornography distributor located at 6601 Moravia Park Drive, Baltimore, Maryland. They receive pornographic material from star Distributing Ltd., New York, New York; Sovereign News Company, Cleveland, Ohio, and Parliament News Company, Chatsworth, California. Sovereign News Company distributes pornographic material to Atlantic Distributors, Providence, Rhode Island; Suburban News, Inc., Silver Spring, Maryland, and Bookstores in Washington, D.C., Maryland, Virginia, North Carolina, New York, and New Jersey.

The president and sole stockholder of Bon Jay Sales is Jack Gresser. Gresser is also the registered agent for Woodwork, Inc., 1010 N. Chester Street, Baltimore, Maryland, and Alpha Sentura Business Services, Inc., 205 W. Fayette Street, Baltimore, Maryland. He is the director of Centre Vending Company, 205 W. Fayette Street, Baltimore, Maryland, and obtained the mechanical license for Fayette News Center Inc., 205 W. Fayette Street, Baltimore, Maryland.

In 1976, a search warrant was executed by the Maryland State Police and the Baltimore City Police Department on Bon Jay Sales' warehouse. Seized documents revealed that Bon Jay Sales was conducting considerable business with Parliament News Company, California, and with Star Distributing Ltd., New York, New York. At one time, Gresser owed Parliament News Company $190,000. Gresser has a reputation of being a poor creditor with many overdue accounts and defaulted loans, and yet, a company in California allowed him to accumulate such a large debt. This pattern was also followed by Gresser who allowed some retailers to incur large debts to Bon Jay Sales.

At the time of the raid, the Little Bookstore, Baltimore, Maryland, owed Bon Jay Sales more than $90,000, a figure that exceeded their gross annual sales. Other businesses that had substantial balances due on various accounts to Bon Jay Sales were the Adam & Eve Bookstore, Washington, D.C. ($11,916); Baltimore News Center, Maryland ($94,840); Bragg News Center, North Carolina ($33,904), Centre Vending Company, Maryland ($19,650); D.C. News Center, Washington, D.C. ($60,910); Fayette News Center North Carolina ($29,000); String News, Ltd., North Carolina ($13,000), and Sovereign News Company, Ohio ($14,995). The unpaid account of Baltimore News Center reportedly exceeded the total amount the firm earns annually.

Other correspondence revealed Bon Jay Sales used attorneys Reuben Caplan, William Seekford, and William Pittler to do necessary legal work. It is known that for the period from April 1973 until present, William Seekford has been paid a retainer fee ranging from $400-$600 per month. Seekford represented Bon Jay Sales in 1i criminal case in the State of Oregon in April 1973, in which Gresser was summoned and then later excused at the request of Seekford. A second case in which Seekford was involved took place in March 1974 in Norfolk, Virginia, involving the Dixie News Store located in Charlotte, North Carolina. The services of William Pittler are used to prepare the paperwork for the incorporation of businesses related to Bon Jay Sales. This is indicated by a memorandum found at Bon Jay Sales regarding the 1405 H Street Corporation in Washington, D.C. At the bottom of the note was written "names of the Board of Directors and Incorporators are forthcoming from Bill Pittler."

Both credit card and phone company records indicate that for 18 months preceding the raid, Jack Gresser had traveled extensively throughout the United States, and several foreign countries. Those trips were to Los Angeles, California; New York; Newark, New Jersey; North Carolina; San Francisco, California; Connecticut; Minnesota; Miami, Florida; Beverly Hills, California; Sweden; Milan, Italy, and the Netherlands. On each occasion, Travel Whirl, Inc., owned by Gresser's wife, Brindell, arranged the travel itinerary. One particularly interesting business trip taken by Jack Gresser occurred on June 3, 1976, when he and Alan Schwartz, who is listed as a clerk for Bon Jay Sales, traveled to Milan, Italy, from Baltimore, Maryland. A second invoice mentioned a subject named Marrotti who also traveled to Milan, Italy, from New York, and the bill was paid by Travel Whirl, Inc., through the Centre Vending Company. On June 5, 1976, Gresser, Schwartz and Marrotti met with three Italian nationals in Milan, Italy, in reference to a large purchase of Elmo projectors.' While in Milan, Italy, Gresser contracted to purchase 1,000 projectors at $61 each from Foto Flash Universal. The records also indicated that Gresser is the sole distributor of Elmo Products in the United States. It was later learned there is an Elmo Manufacturing Corporation at 3210 57th Street, Woodside, New-York.

Control of Bookstores by Bon Jay Sales and its method of operation is exemplified through Alan Schwartz, Oscar Lebowitz (listed as clerks for Bon Jay Sales), and William Shanks. On December 10, 1977, the Mac Sign Company, Fayetteville, North Carolina, concluded a contract with William.Shanks, representing the Alpha Sentura Business Services of Baltimore, Maryland, and linked to Bon Jay Sales through corporate papers, to install signs at String News, Ltd., Fayetteville, North Carolina. It was also determined that William Shanks was removing coins from the peep show machines in the bookstores in North Carolina. When peep show machines are installed or electrical work is required, Shanks is normally accompanied by Alan Schwartz, who is listed as a repairman for the Centre Vending Company, Baltimore, Maryland. On December 12, 1975, a van with Maryland plate #L36913, driven by Alan Schwartz, arrived at String News, Ltd. This van was registered to the Centre Vending Company, String News, Ltd., and Bragg News, Inc., both of Fayetteville, North Carolina, and operated by Charles Kruger,-III. William Shanks purchased the city licenses required to open String News, Ltd., and the incorporators were Thomas Ayres, William Bigham, and Oscar Lebowitz (listed as a clerk for Bon Jay Sales). String News, Ltd., opened a checking account in the Southern National Bank, Fayetteville, North Carolina. Although the manager could make deposits in this account, he was not authorized to write checks. All pornographic material for String News, Ltd., is supplied by Bon Jay Sales which is not registered to do business in North Carolina. On every Wednesday, the manager of String News, Ltd., telephones Bon Jay Sales and places orders for magazines and novelties. On Thursday and Friday of each week, the items are boxed and shipped by Greyhound Bus to Fayetteville. Many of these boxes were marked "machine parts" but contained only books, magazines and novelties. William Shanks personally brings film for the peep show machines and for counter sales at String News, Ltd., and Bragg News, Inc. Shanks travels to Fayetteville, North Carolina, every ten to fourteen days and collects the coins from peep show machines and returns to Baltimore, Maryland. Shanks pays the manager (formerly Charles Kruger, III, and currently Jeffery Robbins) of both bookstores ten percent of the total receipts. Robbins has a key to change the films but does not have the key to the cash box. If any of the peep show machines became inoperative, they are left for repairs until Shanks or Schwartz returns to Fayetteville, North Carolina. On August 19, 1977, String News, Ltd., had forty peep show machines and 76 films on hand for sale inside the store.

Also found in the Bon Jay Sales' files was correspondence addressed to Gallery News, 412 Baltimore Street, Baltimore, Maryland, which was inside an envelope from Media Distributors, Ltd. (used the same address as Star Distributing, Ltd.), listing Barry Tobman as the owner of Gallery News and to contact William Shanks in case of an emergency. Tobman was also listed as a salesman for Bon Jay Sales. Information was also supplied by the United States. Customs Service that the toll calls from Bon Jay Sales when checked through the Treasury Department's computers, revealed that 20-30 of these telephone numbers were checked through the computer during an earlier narcotics smuggling investigation.

William Seekford, Reuben Caplan, and William Pittler are attorneys for Bon Jay Sales, with John Moon recorded as president, Ronald Sellinger as Vice president, Ronald Clinton as a director, Oscar Lebowitz as a clerk, and Barry Tobman listed as a salesman. In 1975, Jack Gresser is listed as the sole stockholder of Bon Jay Sales. William Pittler is also the incorporator for Woodwork, Inc., 1010 N. Chester Street, Baltimore, Maryland (a business constructing peep show booths for pornography bookstores); the incorporator for Centre Vending Company, 205 W. Fayette Street, Baltimore,. Maryland (a business repairing peep show machines in pornography bookstores), and the resident agent for the Alpha Sentura Business Services, Inc., same address as Centre Vending Company (a business collecting coins from peep show machines). Jack Gresser is the resident agent for Woodwork, Inc., the director of Centre Vending Company, and the resident agent of Alpha Sentura Business Services, Inc., along with Barry Tobman who is listed as an employee of Alpha Sentura Business Services, Inc. William Pittler is the incorporator for the Modern Social Education, Inc., 407 E. Baltimore Street, Baltimore, Maryland, and the registered agent for the Little Bookstore, Inc., 409 E. Baltimore Street, Baltimore, Maryland. Charles Carofoli is the president, Thomas Ayre signed for the mechanical license, Richard Caplan is the director, Richard Freeman the manager, and Edward Wolfe is the vice president of D.C. News Center. Carofoli is also a board member for the Modern Social Education, Inc. Thomas Ayre is the vice president, Edward Wolfe is a director, Charles Kruger, Harold Schulte and Al Star are directors, and Barry Tobman is the president of the Little Store, Inc. Ayre is also the vice president, Kruger the director, and Tobman is the president of the Modern Social Education, Inc., 407 E. Baltimore Street, Baltimore, Maryland; Baltimore News Center, 428 E. Baltimore Street, Baltimore, Maryland; Fayette News Center, 205 Fayette Street, Baltimore, Maryland (peep show machine *license in Jack Gresser's name), and the Gayety Books, 407 E. Baltimore Street, Baltimore, Maryland. Ayre, Kruger and Tobman are also directors for G & B, Inc., T/A Broadway News Center, 301 S. Broadway, Baltimore, Maryland. Charles Kruger is vice president (1975); David Scotton is president (1975); Estor Swisher was the president (1974); Louis Roseman was the vice president (1974); William Shanks is the authorizing agent, and John Collete is the manager of the District C. Enterprises, 819 13th Street, N.W., Washington, D.C. Collete and Kruger are directors of the Holiday. News, Ltd., 423 E. Baltimore Street, Baltimore, Maryland, with Charles Gillespie as director and Stuart Rombro as, incorporator. Kruger is the former president (1975); David Scotton signed for the mechanical license; William Bingham is a former vice president (1974-1975); Thomas Ayre is the former president (1972); John Jones is the current president, and Leroy Eichhorn is the current vice president of the 1405 H Street Corporation, 1405 H Street, N.W., Washington, D.C. Leroy Eichhorn is the vice president, and Dennis Pryba is the agent for Marlboro News, Inc., 7609 Marlboro Pike, Forestville, Maryland. Dennis Pryba is the owner; Larry Vineyard is the president; Dan Gottesman is the secretary, and Ted Nicely is the vice president of Cross Road Books, 5898 Leesburg Pike, Falls Church, Virginia. Dennis Pryba is the agent for Educational Books, 9130 Richmond Highway, Fort Belvoir, Virginia, and the agent for Suburban News, 8251 Georgia Avenue, Silver Spring, Maryland, with Donald Vossel as president. Barry Blum, a former employee of Suburban News, is currently a director for Northwest Books, Ltd., 600 Reistertown Road, Pikesville, Maryland. Ted Nicely (vice president of Cross Road Books) is president of M Street Enterprises, 3255 M Street, N.W., Washington, D.C., with John Jones (president of 1405 H Street Corporation) as a stockholder, Francis White as an incorporator, Kenneth Jones as the agent, and Art Dufrane as vice president. William Bingham, Thomas Ayre and Oscar Lebowitz are incorporators for String News Ltd., 522 Hat Street, Fayetteville, North Carolina, with William Shanks purchasing the city license, and Jeffrey Robbins as manager. William Bingham is vice president; William Shanks (agent for Capitol Books, Inc.) is the director; Jeffery Robbins is the manager; Oscar Lebowitz (listed is a clerk for Bon Jay Sales) is a director; Charles Kruger is the president, and William Pittler (attorney for Bon Jay Sales) is an incorporator for Bragg News, Inc., 4326 Bragg Boulevard, Fayetteville, North Carolina. Charles Kruger is the president of LeSalon, Inc., 804-810 14th Street, N.W., Washington, D.C., with William Bingham as vice president, C. B. Miller as the agent, and John Allison listed as the owner.