Judge Takes No Action for Now on Alleged Threat by Mobster to US Attorney

The federal judge who presided over Chicago's biggest mob trial in years ruled Thursday that a threat allegedly uttered by one of the defendants during closing arguments calls for no immediate action.

It should be obvious that a defendant is not entitled to a new trial or any other relief merely because a juror observed his behavior in court, U.S. District Judge James B. Zagel said in a 12-page opinion.

"A defendant seeking relief in this instance is somewhat like the apocryphal child who murders his parents and then asks the court to have mercy on an orphan," Zagel said.

The jury convicted five defendants of taking part in a racketeering conspiracy that involved illegal gambling, extortion, loan sharking and 18 murders that went unsolved for decades.

Among the victims was Tony "The Ant" Spilotro, the mob's longtime man in Las Vegas and the inspiration for Joe Pesci's character in the movie "Casino." He and brother Michael Spilotro were beaten to death and buried in an Indiana cornfield in June 1986.

Other victims were strangled, beaten and shot to keep them from leaking secrets to the FBI, according to witnesses at the 10-week trial.

Several of those convicted at the trial argued that the alleged threat may have prejudiced the jury and one of them, mob boss James Marcello, asked for a new trial.

The alleged threat took place while Assistant U.S. Attorney Markus Funk delivered a closing argument for the government.

Four jurors told prosecutors after the trial that while Funk spoke, convicted loan shark and hit man Frank Calabrese Sr. said: "You are a (expletive) dead man," according to a letter from the government to Calabrese's lawyer last October.

The juror who made the initial report was "extremely credible" in saying he heard part of the sentence and saw Calabrese mouth the rest of it, Zagel said in his opinion Thursday. Prosecutors didn't hear it.

Zagel said he held a hearing at the request of the defendants but found no reason for further action now. The judge did say, however, that he would address the issue further when he rules on the defendants' post-trial motions.

The Mafiosi's Management Handbook

They're violent, they're ruthless, they have caused misery to many, but you can't fault their business sense: mafia bosses know how to make a profit. Its practices may be largely illegal, but Cosa Nostra is not as retrograde, or conservative, as it has often been portrayed. Its raison d'etre is profit. Like any business, it is pragmatic and constantly changing to exploit new opportunities.

Big business has learned how to sell itself to the public, with television shows such as The Apprentice and Dragons' Den granting us a view of harsh but compellingly competitive environments. Businessmen such as Sir Alan Sugar, Duncan Bannatyne and Peter Jones have become unlikely media personalities. But the mafia has been using these methods for years.

When Bernardo Provenzano took over the organisation in the mid-90s, he inherited a depleted and demoralised workforce, who had scuppered their own access to politics and industry. The bombs that killed anti-mafia judges Giovanni Falcone and Paolo Borsellino had created a PR disaster and a law enforcement backlash. Hundreds of mafiosi were in prison, and many of them were so disillusioned with the organisation that they were telling the authorities everything they knew.

Magistrates and mafiosi agree: Provenzano was the charismatic force who revived the fortunes of Cosa Nostra. It has been said of Provenzano, as of so many mafia entrepreneurs, that had he turned his talents and resources to legitimate business, he would have been extremely successful. Fortunately, the mafia's particular modus operandi - the use or threat of violence to create monopolies and price-fixing cartels - is not part of general business practice. But his "System" turned around a failing organisation with far-sighted tactics worthy of any business impresario. The fact that he wrote his reforms by letter means that we have what amounts to seven rules for running a successful business.

Rule 1: Submersion

When a company is failing, the first step is to take it below the radar. You want to lose that cursed epithet "troubled" as quickly as possible, even if it means disappearing from the business pages."It's the sensible thing to do - you bury your mistakes and get on with it," says Peter Wallis (known as Peter York in his other guise, as a social commentator), management consultant at SRU Ltd. You also want to buy shareholders' patience and convince them to hold their nerve and trust you.

"Our aim was to make Cosa Nostra invisible, giving us time to regroup," recalled Provenzano's lieutenant, Nino Giuffrè, who collaborated shortly after his arrest in 2002. After a series of power struggles that had left many dead, businessmen were understandably reluctant to return calls. Mafiosi were instructed to avoid any activity that would attract publicity. If a factory owner refused to pay protection, no one was to set fire to the machinery or blow up the trucks. Peaceful persuasion was the only way.

By contrast with the old-style system of shoot first and ask questions later, any hostile action would have to be thoroughly assessed for potential PR damage. "It was essential to weigh up whether a person could do more damage dead or alive," revealed Giuffrè.

Announcing his system, Provenzano warned that recovery would take time: members might have to wait between five and seven years before they were making profits again. Rebuilding links with business and politicians could only be done out of the glare of publicity. In relative obscurity, Cosa Nostra would be repositioned to shake off its parasitic image and become part of the industrial and political institutions.

Rule 2: Mediation

"Be calm, clear, correct and consistent, turn any negative experiences to account, don't dismiss everything people tell you, or believe everything you're told. Always try to discover the truth before you speak, and remember that, to make your judgment, it's never enough to have just one source of information."

This letter has been described as "a manifesto of Cosa Nostra under Bernardo Provenzano". After a decade of unspeakable violence under the previous leader, Totò Riina, Provenzano changed the culture of Cosa Nostra by instructing his men in the art of negotiation and the importance of dialogue.

Provenzano was decisive, and on occasion demanded swift and direct answers to his questions, but he could be a ditherer when it suited him. Playing for time, he encouraged his men to negotiate agreements between them. If that failed, Provenzano was at his typewriter night and day, offering his wisdom and experience (and just occasionally, a little double-dealing) to resolve disputes.

Like any company director, who carefully crafts his or her media persona, Provenzano didn't want to come across as a tyrant, he wanted to be a "kindly dictator". He coordinated the activities of different and competing groups, without imposing his will. He was the uncontested boss, but he gave the impression that his decisions were reached after long consultation.

Rule 3: Consensus

Provenzano answered letters from every level of society about job vacancies, exam results, local health and hospital administration. Like the charity work carried out by major corporations today, Provenzano was clear: the mafia must present itself as a positive element of society. The boss had to appear as a beneficent figure, an uncle whose advice and consent was sought on all matters - business and personal. He understood that persuading the people they need you is a far more effective way of promoting your business than imposition and violence.

"Let me know whatever [the people] need," he wrote to his adviser, "they must expect nothing but good from us."

One key step in the organisation's recovery was recapturing the popular consensus. The mafia has always relied on the obedience (goodwill might be putting it too strongly) of the community. In the business of selling protection, social control is essential: if your "clients" unite and rebel, you're in trouble.

Rule 4: Keep God on your side

Part of Provenzano's bid to reclaim the people's trust and rehabilitate Cosa Nostra with its traditional followers was to assume a mantle of piety. He presented himself in pastoral role - trustworthy and authoritative. His letters read like the parish priest's homily, and he would send his men tracts copied from the Bible.

Investigators tried hard to discover a hidden code beneath all the underlined passages in his Bible. In fact, it seems, he found them genuinely useful as leadership tools.

Provenzano's choice of tracts revealed, according to investigators, "a certain attention to rules, to punishments, guilt and vengeance, as though he were searching for some inspiration and authority to support him in his responsibilities and the decisions that were a necessary part of being the head of an organisation".

In an approach adopted by politicians including Tony Blair, Provenzano's letters contain the strong implication that God is exercising his will through him ("May the Lord bless you and keep you ... know that where I can be of use to you, with the will of God, I am completely at your disposal ... ").

The status as homespun churchgoer also worked for George Bush in his pursuit of popular consensus. "Bush's religion is very variable," comments Wallis. "He courts rightwing evangelicals but he doesn't buy the whole package; he merely wants to relate to them."

Rule 5: Be politically flexible

Businessmen from all walks of life and political persuasion usually find themselves co-opted on to a government advisory board eventually. The East End boy made good is not your traditional Labour supporter, but Sir Alan Sugar has reportedly been advising Gordon Brown on enterprise. "This government's not Labour, it's old-fashioned Tory," he says. "I prefer Gordon to Tony. Blair was refreshing but Brown is more like me. He has a strong work ethic."

Provenzano took this further, changing his political allegiance whenever it suited him. He looked for politicians who were prepared to pursue his self-serving demands for lighter sentences against convicted mafiosi, as well as the end of protection for collaborators. "Links were to be forged behind the scenes with politicians who had no trace of connection to scandal or sleaze," recalled Giuffrè. "If a politician was seen to be supported by men of honour of a certain rank, within 24 hours he'd be destroyed by the opposition."

Rule 6: Reinvention

In case of a political scandal, or a business failure, it is vital for the new boss to be able to distance himself from the whole affair. Indeed, he may find it useful to take on a new persona altogether. When Stuart Rose returned to Arcadia after three years to rescue it, he said: "What is interesting is that people here think I haven't changed, but I have been gone three years. I am not the same Stuart Rose, I have changed a lot."

With Provenzano's new directives, not only did the negative headlines cease, but he managed to dissociate himself from the scandals that had gone before. Like everyone else, he had emerged from Cosa Nostra's most violent decade with his reputation in tatters; his advisers helped him to "get his virginity back", in Giuffrè's interesting phrase. With the help of his PR-savvy advisers, he made sure no one associated him with the violent years, and created his image as the peacemaker.

"When I got out of prison," Giuffrè recalled, "I found Provenzano a changed man; from the hitman he once was, now he showed signs of saintliness."

Rule 7: Modesty

During his career, Provenzano transformed himself from a hired thug, to business investor, political mastermind and, ultimately, strategist and leader. Part of his mystique was that no one really knew whether he was a genius or an illiterate chancer. To emphasise his humble character and present himself as a simple man of the people he would write letters full of spelling and grammatical mistakes, and always signed off with the same humble apology: "I beg your forgiveness for the errors in my writing ..."

Every letter ends with the same saintly and affectionate benediction and an apology for grammatical errors. The bad spelling and schoolboy mistakes detracted nothing from the authority of its writer. For a man who moved easily in the worlds of business and politics, it was apparently part of a carefully constructed image. Investigators maintain his semi-literacy was a deliberate ruse.

It's a strategy that political and business leaders have used to good effect. "George Bush's family is as upper-class as you're going to get in the United States," says Wallis. "He is not a real Texan. To what extent he talks like that out of incompetence, to what extent it is crowd- pleasing, we don't know - but we know it works."

Similarly, Justin King, multimillionaire saviour of Sainsbury's, says: "I'm not a book reader ... I'm just a normal bloke." Sugar has never disavowed his East End roots, his upbringing in a Hackney council house. He doesn't give himself airs, but the point is still made: he grew up with no privileges, but he is the one with the power.

Provenzano took false modesty a step further, suggesting (almost entirely untruthfully) that he would rather have someone else in charge. "They want me to tell them what to do," he wrote, "but who am I to tell them how to conduct themselves? I can't give orders to anyone, indeed I look for someone who can give orders to me."

Unfortunately for him, since his arrest in 2006, his wishes have been fulfilled.

Courtesy of Clare Longrigg

Town Debates Merits of Serving as Location for Latest Mob Movie

An old saying in the media holds that there is no such thing as bad advertisement. But news that Saginaw will provide the backdrop for a Mafia movie doesn't exactly tout the region's best features.

"Street Boss" is set to begin filming Tuesday, April 29. Philip R. Kerby, a retired FBI agent and former chief of its Saginaw bureau, says the movie is based on the FBI's real-life takedown of Detroit's most notorious mobsters.

The plot doesn't involve Saginaw but the community's role as a filming location makes it a supporting character of sorts, not to mention an important anecdote in the film's production.

Kerby promises the feature will star "names you'll know" despite an independent film-sized budget. The Hollywood casting director on board has placed actors in such shows as "Without a Trace," "ER," "The Sopranos" and "The Longest Yard." So "Street Boss" has the potential to make some noise at box offices nationally.

If that's the case, Saginaw will get face time with plenty of moviegoers. That's a ticket Flint rode to success during last year's filming and this year's premiere of the Will Ferrell basketball comedy, "Semi Pro."

The difference: "Street Boss" is no funny business.

We aren't discouraging the filming of the movie in Saginaw. Bringing Hollywood to this area is an economic opportunity and a chance for Saginawians to participate in the wonders of cinema-making.

However, community leaders should practice caution and consider the subject matter before embracing the movie as a homegrown product in the way Flint has adopted "Semi Pro."

In short, feel happy that a production team has chosen Saginaw but don't shine a light bright enough that it could highlight the unfortunate parallels between the movie and the filming location.

Flint seemed to roll out the red carpet when moviemakers came to town, welcoming the retro vibe of the film's 1970s-era plot. Every day on the set seemed to produce a news event. The opening screening resembled something out of Hollywood.

Saginaw shouldn't do the same for "Street Boss." Violence and shady characters make for sexy cinema, but Saginaw doesn't need to celebrate the macabre nature of organized crime. Not when the community has struggled for decades with its own real-life violence and shady characters.

Coincidentally, Kerby is familiar with Saginaw's criminal back story. During his tenure at the FBI bureau, he played a role in the Saginaw Gang Crime Task Force -- a coalition of city, county, state and federal law enforcement agents -- that began tackling the youth gang problem in 1994.

Organized crime began in Saginaw long before then and remains a problem today. A modern-day equivalent of that policing conglomerate arrested 15 Saginaw gang members in February and prosecutors have put them up on federal charges.

Police say the gang problem is subsiding but still present. The stereotype of Saginaw as a violent gangland certainly remains, deserved or not.

Promoting the region as the home of a Mafia movie's filming probably isn't the best way to escape that typecast.

Maybe there is such a thing as bad advertisement.

The Saginaw News

FBI Secret Files on Mobster Ken Eto

Ken "Tokyo Joe" Eto died four years ago, but the secret files that were kept on him are being revealed for the first time.

The secret files on Tokyo Joe prove that Ken Eto was different than your normal, everyday Chicago mobster.

He ran an Outfit gambling racket in cahoots with black street gang leaders. But most memorable: 25 years ago he became the only Outfit boss to survive a mob hit. In 1983, Ken Eto became the first hoodlum ever to experience a gangland hangover when a half dozen bullets squeezed from a silencer-equipped pistol, somehow ricocheted off his skull. At the time of the botched assassination, FBI agents had been following Eto and typing reports on him since the early 1950s.

What grew into a foot-tall stack of files was just obtained for the first time by the I-Team under the Freedom of Information Act. The records reveal that hundreds of agents in dozens of cities had tried for decades to pin something on Eto, but failed. The FBI list of Eto's numerous aliases may be politically incorrect by today's standards, but tokyo joe's craftiness helped turn an illegal numbers racket into an illicit empire.

"We analyzed it. It was $150,000 to $200,000 a week he was managing," said Elaine Smith, former FBI agent.

We interviewed Smith as she retired from the FBI - her work as case agent on Ken Eto the highlight of her career. According to the secret files of Tokyo Joe, his gambling business known as Bolito thrived on payoffs to Chicago policemen totaling $3,000 a week.

Eto's criminal rap sheet in the file begins in 1942 in Tacoma, Washington, where he was among four Japanese Americans sentenced for violating a wartime curfew. After coming to Chicago in 1949, Eto grew into a mob sleeper boss believed the FBI on a par with the famous New York mafioso Meyer Lansky.

Shortly after the assassination of President Kennedy, federal agents suspicious of a Chicago mob role in the JFK murder questioned Eto about Lee Harvey Oswald and Jack Ruby. FBI reports say Eto claimed to know nothing.

In 1983 Outfit bosses tried to rub him out for one reason, according to the secret files. Mob bosses feared that since the FBI had caught Eto red-handed running Bolito wagers and he'd pleaded guilty, that he might be tempted to talk. So they gave Eto an invitation he couldn't refuse.

"He knew he had to go to this dinner meeting. He really was 90 percent sure he was going to be shot, so he took a bath and he put on his best clothes, and he told his wife where the insurance policy was," Smith said.

Files reveal Vincent Solano ordered the murder. He was an Outfit capo at the time and head of the corrupt laborers union Local One. After surviving the attack, Eto was hooded when he told a U.S. Senate panel what happened.

Solano died of natural causes, never charged in the Eto attack. The two gunman who tried to kill Tokyo Joe had used bad ammo and soon after were themselves disposed of in a car trunk. Eto then became the government's highest ranking hoodlum ever to turn government witness.

The FBI began a secret investigation that we now know from the files was code-named "Operation Sun-Up" a clever turn on the symbol of Eto's native Japan. And because of his testimony, dozens of top Chicago mob figures were convicted and put away.

Whether or not Eto got his outfit nickname from an old Bogart movie, there will soon be a new movie also called Tokyo Joe. The life story of Ken Eto is being made by Japanese filmmakers and due to be finished next month.

Eto died in 2004 at the age of 84. And even though he survived a gangland hit, he didn't live as long as he thought he would. When he was still in the mob, a smart-aleck Eto told federal agents that he'd be happy to discuss his Outfit business when he was 90 years old and living on a beach somewhere.

Thanks to Chuck Goudie

McMafia: A Journey Through the Global Criminal Underworld

What do Colombian cocaine, Angolan diamonds and fake Gucci bags from China have in common?

Answer: organized crime, globalization and financial deregulation.

While the Sicilian word Mafia summons fictional images of Don Corleone wearing a tuxedo or Tony Soprano smoking a cigar, the truth is that organized crime has become a real menace on every corner of the globe, writes Misha Glenny in ``McMafia: A Journey Through the Global Criminal Underworld.''

Glenny, the author of two previous books on the Balkans, covered the unraveling of the former Soviet bloc for the British Broadcasting Corp.'s World Service. For this book, he embarked on a tour of the new capitals of organized crime to collect anecdotes that illustrate the criminal bonanza that followed the fall of the U.S.S.R. and the liberalization of financial markets.

``The collapse of the Communist superpower, the Soviet Union, is the single most important event prompting the exponential growth of organized crime around the world in the last two decades,'' he writes.

The result: The criminal economy now accounts for 15 percent to 20 percent of the planet's gross domestic product, he says, citing figures from the World Bank, the International Monetary Fund and research institutes. Global GDP stood at $53.4 trillion last year, the IMF estimates.

Glenny treats us to dozens of stories culled during his journey, which began in the Balkans and ended in China, identified here as tomorrow's breeding ground of organized crime.

In India, he chases a former contract killer called Mahmoud through ``an elaborate game of musical cafes.'' When they finally meet, the retired assassin turns out to be affable, urbane and intelligent, he says.

``My experience in the Balkans led me to conclude that most murderers are not congenital psychopaths,'' he writes. They are, rather, people who are encouraged by circumstances to violate the commandment, ``Thou shalt not kill,'' he says.

In Zagreb, Glenny's rented Audi Quattro is stolen and goes on ``a mystery tour that would end several weeks later at a used car market 200 miles away in Mostar, the capital of western Herzegovina.''

In North America, he rides with a smuggler who's running pot into the U.S. from British Columbia. ``BC Bud'' sales in the U.S. represent a $6 billion-a-year industry, although they account for just 2 percent of America's annual cannabis consumption, he says.

Glenny displays a command of the subject and a knack for capturing characters and scenes. His style is conversational, as if the book were told at the dinner table.

He hops from continent to continent, mirroring the way dirty money flows from Moscow to Dubai, from Dubai to Johannesburg, and so on. Along the way, he shows how the licit and illicit economies are joined at the hip.

Consider how easy it is to launder money at a time when financing is so complicated that leading banks struggle to quantify their losses on U.S. subprime mortgages.

``In a world where legitimate institutions are unable to account properly for their dealings, the ability of criminals to launder their money through this merry-go-round of speculation greatly increased,'' Glenny says.

``McMafia'' does lack a unifying narrative thread. The only character tying the various stories together is the author himself. And while we meet some victims of organized crime, including a Moldovan woman forced to prostitute herself in Israel, the ugliest side of the underworld is clouded by the intriguing tales Glenny tells of powerful mob bosses.

These are minor complaints for a book that helps explain how organized crime has managed to spread its tentacles so far and wide. Blame it on two contradictory trends, he says: ``global markets that are either insufficiently regulated, especially in the financial sector, or markets that are too closely regulated, as in the labor and agricultural sectors.''

This plays into the hands of creative and violent criminals. They easily overcome market restrictions, such as the former UN embargo on Slobodan Milosevic's Serbia. Then they wash their ill- gotten proceeds through prestigious financial institutions.

Mob bosses have been ``good capitalists and entrepreneurs,'' Glenny says. ``They valued economies of scale, just as multinational corporations did, and so they sought out overseas partners and markets to develop industries that were every bit as cosmopolitan as Shell, Nike, or McDonald's.''

Thanks to Steve Scherer

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Italian Eatery is Home of The Godfather - A Sangwich You Can't Refuse

It's safe to say that few area eateries have their kitchens located in a place that formerly housed a hydraulic hoist for automobiles. Then again, most also aren't named for fictional organized crime business fronts.

The menu at Genco Italian Eatery prominently features a signature creation known as The Godfather: "a sangwich you can't refuse!" The acclaimed series of books and movies sets the tone for the establishment, which operates out of a renovated filling station north of Lockport's downtown shopping district. Its name is a nod to Genco Abbandando and the Genco Olive Oil Company, a business venture of Mafia don Vito Corleone in the sweeping "Godfather" mafia epics.

Of course, the restaurant's food-preparation area bears little resemblance to its previous incarnation. The oversized car jack is long gone, leaving plenty of room for intensive cooking.

"We make everything homemade here," said Lou Caracci, who owns the restaurant with his business partner, Mike Carter.

When Genco opened four years ago, its focus was centered on sub sandwiches. The selection was later expanded to include pasta, and now there is pizza too.

The lasagna, featuring homemade tomato sauce, is especially popular, Caracci said. Among the subs, the Underboss - a layering of ham, salami, capocollo, Swiss and provolone cheese - goes over especially well.

Pizza possibilities include the popular Tessio - sausage, peppers, onions and mushrooms - and the white versions, such as the Frank Pentangeli (alias Frankie Five Angels, alias Frankie Pants, from "The Godfather Part II"), which features olive oil, garlic, ricotta cheese and tomato. The savory pies are all available with thin crust or, for two bucks more, double dough.

Under the "specialties" heading on the food lineup are oversized sub sandwiches, made in three- and six-foot lengths, and something called Joey Zaza's calzones, named for the mob underling portrayed by Joe Mantegna in "The Godfather Part III."

An extensive catering menu also is available, offering such dishes as "famous pot roast," cooked nice and slow in Grandma's red gravy and spooned over a bed of rigatoni. Grilled tuna steak "served in our infamous wine sauce," tilapia with asparagus in wine sauce and lemon chicken are some of the other catered items available by the half or full pan. Several platters also are available, with themes that include wraps, seafood and fruit, among others. Genco also offers packages priced by the plate for groups of 20 and up.

The establishment does quite a bit of off-site business, Caracci said.

"We've done a lot of TV and movie sets. 'Prison Break' - we did all their food," he said, adding that they also supplied food at the production sites for the movies "The Breakup" and "The Return," part of which was filmed in Naperville last May.

While relocation to a larger space is possible one day, the restaurant's owners are staying put for now. They plan to apply for a beer and wine license later this year, and will be adding a deck for outdoor seating, Caracci said.

Thanks to Susan Frick Carlman