In more detail, taken from another site:
UFO FBI connection: the secret ... - Google Books
In late March, 1950, FBI headquarters received from Guy Hottel, the SAC for Washington state, a memorandum which stated that "an investigator for the Air Forces" had told Mr. Hottel that three crashed saucers had been recovered in New Mexico, along with 9 bodies of 3 foot tall aliens. It turned out that this report was based on a hoax, but the FBI didn't know that at the time.
Aztec (New Mexico) UFO Hoax - The Skeptic's Dictionary - Skepdic.com
The Aztec UFO Hoax was the work of Variety columnist Frank Scully who was hoaxed by two con men, Silas M. Newton and Leo A. Gebauer.
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The Aztec story was revived in 1986 by William Steinman and Wendelle Stevens in their privately-published book called UFO Crash at Aztec. It was revived again in 1998 when Linda Mouton Howe, a UFO and Art Bell mainstay, claimed she had government documents that proved the Aztec crash. What she had was a rumor eight times removed from the source, Silas Newton, that eventually ended up in a memo written to J. Edgar Hoover. Newton told George Koehler about 3-foot tall aliens and their saucer; Koehler told Morley Davies who told Jack Murphy and I. J. van Horn who told Rudy Fick who told the editor of the Wyandotte Echo in Kansas City where it was read by an Air Force agent in the Office of Special Investigations who passed on the story to Guy Hottel of the FBI who sent a memo to his boss (Thomas).
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