James "Little Jimmy" Marcello is Moving Back to Chicago

Mob boss James "Little Jimmy" Marcello gets to stay in Chicago...for now.

Judge James Zagel granted a motion this morning in federal court that allows Marcello to remain at the Metropolitan Correctional Center in Chicago while he appeals his Family Secrets conviction. He had been serving his life sentence in the maximum security penitentiary in Atwater, California, but was brought back to the MCC because of a petition filed against him by the United States Probation Office. Inexplicably, the government wants to cite Marcello for a long ago probation violation, even though he is serving a life sentence from the Family Secrets case.

If Marcello's appeal is denied then Judge Zagel will recommend the Bureau of Prisons assign Marcello to an institution such as Oxford, Wisconsin, instead of being sent back to California so he will be closer to his family. "Mr. Marcello has no family in California. His wife, three children and grandchildren reside in the Chicagoland area," states the Marcello motion.

Oxford has long been the prison of choice for Chicago Outfit figures, crooked politicians, white collar criminals and other cigar chomping convicts-because of its close proximity to Chicago.

Originally, Judge Zagel had recommended Marcello spend the rest of his life locked up in the fed's crossbar hotel in Terra Haute, Indiana. But Marcello's guilty co-defendant, Joey "the Clown" Lombardo, is already assigned there. "It is our understanding that a 'seperatee' order prevented Mr. Marcello's designation to Terre Haute since Co-Defendant Joseph Lombardo was designated there" wrote Marcello's attorney Marc Martin.

Thanks to Chuck Goudie

US Attorney and DEA Agent Targeted in Murder-for-Hire Plot

The United States Attorney's Office announced that two DuPage County, Illinois men were arrested last week after being charged by complaint in a murder-for-hire plot targeting an Assistant United States Attorney and a Drug Enforcement Administration agent assigned to Chicago.

Frank Caira, 39, of Downers Grove, Illinois, and Jack Mann, 41, of Naperville, Illinois, were charged with solicitation to commit a crime of violence, specifically attempting assault or intimidation of a federal officer, and attempting to kill a law enforcement official of the United States.

Both men appeared before Magistrate Judge Nan R. Nolan in Chicago Saturday afternoon, January 16, 2010. Mann has subsequently appeared in court today and remains detained. Caira is scheduled to appear for a detention hearing before Magistrate Judge Nolan on Thursday, January 21, 2010.

This case was investigated jointly by the Chicago Federal Bureau of Investigation Violent Crimes Task Force and the United States Marshal’s Service Northern Illinois Threat Assessment Task Force.

Gambling & The Chicago Mob Video

Restaurant owner Nick Sarillo freelanced as a bookie. He defied the Chicago mob, otherwise known as "the Outfit," and was nearly killed.

Bill Kurtis to Receive the FBI’s Director’s Community Leadership Award

An awards ceremony and luncheon honoring legendary Chicago journalist and acclaimed documentarian Bill Kurtis will be held today (Tuesday, January 19) at Harry Caray’s Restaurant in Chicago.

Mr. Kurtis is the 2009 Chicago recipient of the FBI’s Director’s Community Leadership Award (DCLA), which is presented annually to an individual or organization that has furthered the efforts of law enforcement. Director Mueller will be represented at Tuesday’s ceremony by Robert D. Grant, Special Agent-in-Charge of the Chicago FBI, who will be presenting Mr. Kurtis with the award.

An informal reception for Mr. Kurtis will begin at 11:30 a.m., with the award presentation starting at approximately 1:00 p.m.

James Marcello Requests Prison Transfer Closer to His Family

When top Chicago Outfit boss James "Little Jimmy" Marcello was sentenced in the fed's Family Secrets mob murder case, he expected to do his time at a prison somewhere close to home.

To make it easy for family visits.

Judge James Zagel even "designated James Marcello to the maximum-security prison in Terra Haute, IN." according to a motion filed by Marcello's lawyers Monday in U.S. District Court. But the Bureau of Prisons had other plans for Little Jimmy and now he is trying to make things right.

BOP officials last year assigned the long-time Chicago hoodlum to a cell in the maximum security penitentiary in Atwater, California. Atwater is more than 100 miles from San Francisco.

"Mr. Marcello has no family in California. His wife, three children and grandchildren reside in the Chicagoland area," states the Marcello motion that will be heard Tuesday morning by Judge Zagel.

The problem may be that Marcello's guilty co-defendant, Joey "the Clown" Lombardo, is assigned to the fed's crossbar hotel in Terra Haute."It is our understanding that a 'seperatee' order prevented Mr. Marcello's designation to Terre Haute since Co-Defendant Joseph Lombardo was designated there" wrote Marcello's attorney Marc Martin.

Marcello's motion asks that he be held in the Metropolitan Correctional Center in downtown Chicago while he appeals his Family Secrets conviction-or at least until the filing of the opening brief.

Then, the motion asks Judge Zagel to "recommend that the BOP designate Mr. Marcello to an institution closer to his family, e.g., Oxford, WI."

Oxford has long been the prison of choice for Chicago Outfit figures, crooked politicians, white collar criminals and other cigar chomping convicts-because of its close proximity to Chicago.

Marcello does have one thing going for him: he's already been brought back to the MCC in Chicago because of a petition filed against him by the United States Probation Office. Inexplicably, the government wants to cite Marcello for a long ago probation violation, even though he is serving a life sentence from the Family Secrets case.

Thanks to Chuck Goudie

Frank Campione Accuses Son of Being a Rat

Don't dishonor thy father.

That's the theme of a Colombo gangster's nine-page letter rant accusing his son of committing the unforgivable sin of speaking to FBI agents.

"You broke the laws of honor, loyalty and family tradition and you tarnished and embarrassed our family name," reputed mob soldier Frank Campione wrote to his son Michael.

The letter, dated Dec. 3, was seized by Bureau of Prisons officials at the Metropolitan Detention Center, where Campione is awaiting sentencing for shaking down a Long Island gambling club.

Prosecutors James Gatta and Elizabeth Geddes filed the letter in Brooklyn Federal Court yesterday in an attempt to keep Campione from getting a lenient sentence for medical reasons.

In the letter, the 67-year-old Campione warns his son, "I plan on being around a while."

The mobster's anger was apparently triggered by his belief that Michael told FBI agents he opposed his father's bail application, a source said.

"A rat is the worse [sic] thing anybody can be as far as I'm concerned," Campione warned. "I guess you learned that trait from your mother, but she is a woman and doesn't understand the laws of the land and family traditions. You are my son and ... you should have known better."

A knowledgeable source said Michael Campione is not involved in organized crime.

Frank Campione faces up to 46 months in prison when he's sentenced on Monday by Federal Judge Brian Cogan.

By the letter's conclusion, Campione had calmed down a bit. "Kiss the kids for me. Dad."

Thanks to John Marzulli

Michael "The Prince of the Mafia" Franzese Busted on Bad Check Charge

Some habits die hard.

An ex-Colombo family mobster who left the Mafia to become a born-again Christian motivational speaker was busted in Tennessee for writing bad checks, officials said Monday.

Michael Franzese, the Brooklyn-born mobster once nicknamed "The Prince of the Mafia," was led from a plane on the runway in Knoxville in handcuffs Friday night, police said.

The ex-wiseguy - who has bragged that he made more money than Al Capone - downplayed the arrest in an interview with the Daily News, saying it was an "unfortunate misunderstanding" with a business associate.

"I didn't pass bad checks, I didn't take any merchandise. I didn't do anything wrong," said Franzese, 59. "It's a dispute with my former manager over a small amount of money - nothing more," said Franzese, the son of famed 92-year-old Colombo enforcer John (Sonny) Franzese.

The younger Franzese, who became a "made" Colombo soldier in 1975, made millions bootlegging gasoline until he was indicted in 1987. Deciding to leave the Mafia behind, he accepted a prison sentence and testified against his former family.

He served three years and upon his release wrote a series of mob-themed inspirational books with titles like, "The Good, the Bad and the Forgiven" and "I'll Make You an Offer You Can't Refuse: Insider Business Tips from a Former Mob Boss".

He tours the country speaking to church groups, students and professional athletes on the dangers of gambling and fraud.

He said he is worried how the arrest would affect his booming speaking business.

"I'm in a ministry right now and this story has already hurt," Franzese said. "I know I carry baggage from my previous life, but I worked hard to shed my past."

Franzese was in Knoxville to speak to a men's organization at a Baptist church but instead spent the night in jail after being picked up an outstanding warrant for bad checks.

His former manager "thought I owed him money and chose to get the police involved," said Franzese, who declined to elaborate on the specifics of the dispute. "It'll blow over."

A Knoxville police spokesman would not identify the complainant in the case.

Franzese, the founder of a youth counseling group called the Breaking Out Foundation, was released from jail Saturday morning on $7,500 bond and returned home to Southern California.

He vowed not to let the arrest deter him from his new mission.

"I am going to stay out there preaching my message," he said. "I have overcome a lot and I'm going to keep doing the best I can."

Thanks to Jonathan Lemire

Former Mafia Prosecutor Now Uses Data Mining to Catch Tax Cheats

Another crazy idea popped into Bill Comiskey’s head: What if the tax department required banks to turn over their customers’ mortgage applications? Homebuyers fill them out at a time when they want to impress the bank with their incomes. They sometimes are not in the same mood when they fill out their tax returns. Investigators could compare the two records, look for clues.

Comiskey, the state’s lead tax enforcer, called Nonie Manion, director of the audit division, from the car. He was zipping across New York state to deliver another speech at another tax preparers convention. “Would this work?” he asked.

Every piece of personal information is on the table these days at the tax department, where a desire to collect taxes on the underground economy is prompting new and aggressive tactics. Comiskey, a one-time Mafia prosecutor, has been armed by lawmakers with new powers. His staff is for the first time pulling information from third parties into a continuous river of information about businesses and individuals.

The tax department is brainstorming a kind of data mining most often associated with Homeland Security.

Is a bar underreporting its sales? Annual reports from liquor wholesalers would show it.

Is a pizza franchise selling more pies than it is reporting to the state? The chain’s parent company might have to show how many pizza boxes it sent to the local shop.

Is a car dealer low-balling its sales? Check the records over at the DMV.

The new approach makes New York a leader in the pursuit of tax cheats and has put tax professionals and businesses on alert that New York is no longer soft on fraud. Some tax professionals say the state is being unnecessarily antagonistic, particularly toward cash businesses that do not keep great records.

Comiskey makes no apologies.

It is his job to “close the tax gap” — the term for the billions of tax dollars individuals and businesses do not pay every year.

If one person does not pay taxes, another person has to pay more. Honest taxpayers get squeezed, and the state’s schools, roads and health care systems suffer.

Comiskey brings the experience of a forensic investigator. But as a newbie to the tax department, he also feels free to throw out ideas that seem naive or impossible to people who have been auditing tax returns for a long time.

Some of the tax-hunting methods seem like common sense to him. For a long time, auditors shied away from talking to taxpayers. They had the power of subpoena, but chose instead to work with records requests or interviews with the tax preparer.

Now, auditors more often just talk to taxpayers. And the state Legislature just made it a crime for taxpayers to lie to investigators.

The audit division set a record in Comiskey’s first year, producing $3 billion in revenue — $1 billion more than the year before.

Criminal tax fraud investigations increased from 581 in the ’06-’07 fiscal year to 2,078 in the ’08-’09 fiscal year. Nearly 600 cases were referred to prosecutors that year, about three times as many as the last year of the previous administration.

Comiskey’s methods are catching a lot of attention from other states and from taxpayers.

Other states are also improving their investigative resources, but New York is unique in winning state legislation that requires third parties to supply information routinely, said Verenda Smith, speaking for the Federation of Tax Administrators, in Washington, D.C. And Comiskey is eager to tell people about it. He delivered 42 speeches across the state in 2009.

“It’s not a game of gotcha,” Smith said. “Gotcha is the last thing you want to have to deal with and should be the tiniest part of your work. Most people will pay correctly and on time if they know what to do. Even more people will pay correctly and on time if they know you can catch them.”

It does feel like gotcha to some business owners, who are challenging the state in its tax tribunal.

The tribunal in December delivered a rare victory to the taxpayer when it questioned the state’s method of estimating taxes owed by a Buffalo restaurant that could not produce its own receipts.

Similar cases are brewing all over the state, said Tom Riley, tax partner at ParenteBeard LLC, in Syracuse. But fighting the state is expensive and mostly a losing proposition. More-frequent audits are frustrating small-business owners, who cannot afford to fight. There’s a happy medium someplace, he said, but this is not it.

“Not that long ago, they were all about customer service, and taxpayers were customers and the pendulum swung one way,” Riley said. “Now it’s swung so much the other way, it’s become very difficult.”

Riley said the attitude is coming directly from the top of state government at a time when the state needs to close budget gaps.

In fact, Gov. David Paterson’s office is expected to announce this week that he wants to rely even more on tax fraud enforcement to balance next year’s budget.

Former Gov. Eliot Spitzer brought Comiskey to the tax department from the attorney general’s office in 2007. The two worked together in the AG’s office, where Comiskey led the Medicaid Fraud unit.

Before that, Comiskey spent 10 years on New York’s Organized Crime Task Force and had also worked in the AG’s criminal prosecution’s bureau and for district attorneys in Rensselaer County and Manhattan.

At the Medicaid Fraud Unit, investigators installed hidden cameras in nursing homes and saw nurses moving call bells away from patients so the staff could watch movies and socialize.

He brings those same techniques to his current job.

When he talks to groups, he likes to play real tapes of tax preparers who got caught in stings.

In 2007, the tax department decided to test the unregulated world of tax professionals. The investigators wore wires and visited tax preparers around the state, pretending to be new customers. Sometimes, they took the books of real businesses they had already stung for hiding income. They would even send in the real business owner with a hidden tape recorder.

Comiskey has been investigating fraud his entire career, but he was surprised to find so many tax preparers who put themselves at risk by fixing the books for strangers in exchange for a few hundred dollars.

“What you need to do is redo the books,” one said on tape. “Rip out these pages and do them again.”

The tax department did 170 undercover visits in three years. About 30 percent engaged in some type of fraud, he said.

The tax department’s staffing reflects the state’s new commitment. The staff grew from 2,562 in 2006 to 3,060 today. It is hiring 111 new auditors. The biggest growth was in the special investigations unit, which grew from 34 people in 2006 to 142 today.

Mark Klein, a tax attorney for Hodgson Russ LLP, in Buffalo, said he’s never seen anything like the state’s crackdown in his 30 years in the business.

The undercover stings are turning friends on friends, clients on their accountants, he said.

“It is rocking their world. It really is,” he said.

Klein hates to say it, but for a long time, New York taxpayers had the perception that they could skim a little off the top.

“New York has made it clear that they’re going to crack down,” he said. “They’re very much focused on cash businesses, and it’s getting to be like Big Brother.”

Klein is advising his clients to keep good records.

He said the state is catching some porpoises while fishing for tuna.

He said the state tax department asked a Syracuse bar for every sales receipt for every drink for the past three years. Of course, the bar doesn’t keep track of every drink sold, he said.

When there are no good records, the law allows the state to use outside information to estimate. The burden is then on the taxpayer to prove the state wrong.

In this case, Klein said, the state calculated a sales based on the cost of the bar’s rent. The bar is stuck.

“In that way, they’re catching a lot of honest tax people and making it appear as though they have a liability, when they don’t,” Klein said.

The State of New York Tax Appeals Tribunal recently shot down the state’s method of estimating sales volume at a restaurant called Mother’s, in downtown Buffalo.

The tribunal said the tax department used industry records in a way they were not intended to estimate taxes for the restaurant, which could not produce sales receipts.

“It must be pointed out that a lack of records does not equate to a presumption that taxable sales have been underreported,” the opinion said.

The tax department said that case was fact-specific and does not prevent the legally permissible use of third-party sources.

Comiskey said the fact that so many cases are upheld by the tribunal means that they are doing a good job of making reasonable estimates.

The department is just getting started on its new project to collect clues from third parties.

Comiskey wants to pour every available piece of information about a business into a computer database, where it can be quickly sorted, matched and analyzed.

The information will come from both private industry and state agencies. Surprisingly enough, the volumes of personal information collected by other government agencies — such as the Department of Motor Vehicles, the Health Department and the Department of State — are not already systematically collected and analyzed by tax auditors.

That is, in part, because the information has not always been kept in computer form, and, in part, because no one asked for it.

For at least 15 years, state law has required cigarette wholesalers to report the volume of sales to retailers. The information came on paper and sat mostly untouched in boxes.

Manion said businesses generally respond to these requests for information. But some businesses and even some other government agencies say they do not have enough information technology staff to comply.

The tax department is also working to routinely grab records of transactions from credit card companies. A 2009 bill did not make it through the state Legislature because banks convinced the tax department that their request would require extensive computer programming and that there could be problems with the data. It could be January 2012 before they start getting the information.

On the Big Brother issue, Comiskey and Manion said it’s true that privacy is sacrificed in administering tax laws. But, they point out, the government already knows about individuals’ medical problems, their earnings, their mortgage payments and their retirement contributions.

“It’s certainly not Big Brother when we’re asking businesses to provide us with what is essentially business information to help us administer tax laws fairly,” Comiskey said.

Thanks to Michelle Breidenbach

Hotline Created to Report Haitian Earthquake Relief Fraud

The FBI and the National Center for Disaster Fraud (NCDF) have established a telephone hotline to report suspected Haitian earthquake relief fraud. The number is (866) 720-5721. The phone line is staffed by a live operator 24 hours a day, seven days a week. You can also e-mail information directly to disaster@leo.gov.

The National Center for Disaster Fraud was originally established by the Department of Justice to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or man-made disaster. More than 20 federal agencies, including the FBI, participate in the NCDF, allowing it to act as a centralized clearinghouse of information related to Haitian relief fraud.

The FBI continues to remind the public to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of Haitian victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.

Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, including the following:

* Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.

* Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.

* Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.

* Rather than following a purported link to a website, verify the legitimacy of non-profit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its non-profit status.

* Be cautious of e-mails that claim to show pictures of the disaster areas in attached files, because the files may contain viruses. Only open attachments from known senders.

* To ensure contributions are received and used for intended purposes, make contributions directly to known organizations rather than relying on others to make the donation on your behalf.

* Do not be pressured into making contributions, as reputable charities do not use such tactics.

* Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.

* Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals

If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of Haitian earthquake victims, contact the National Center for Disaster Fraud at (866) 720-5721. You can also fax information to (225) 334-4707 or e-mail it to disaster@leo.gov.

Public Enemies on Mafia Wars

To help promote the Dec. 8 DVD and Blu-ray Disc release of Public Enemies, Universal Studios Home Entertainment teamed with Zynga for a cross-promotion with its online Mafia Wars game.

Mafia Wars is a role-playing game accessed through social media sites such as Facebook that lets users run their own crime family, participate in various crimes and steal loot. In early December Mafia Wars staged “Public Enemies Week,” helping to promote the gangster flick with special jobs and loot objects based on the film’s plot.

The campaign, led by appssavvy, a direct sales team for the social media space, in partnership with the Los Angeles office of Ignited, a marketing innovations agency working on behalf of Universal, was touted as the first such promotion of its kind. Mafia Wars is played by more than 25 million Facebook users.

“Public Enemies on Mafia Wars is the blockbuster social media campaign of 2009,” said Chris Cunningham, co-founder and CEO of appssavvy. “The foundation of every campaign we’re involved with is focused on relevance and delivering something the end user will find valuable. This effort with Universal Studios Home Entertainment and Zynga demonstrated these fundamentals of social media marketing to perfection.”

Zynga reported Public Enemies Loot garnered nearly 55 million interactions during the week-long campaign, and tie-ins to Public Enemies activities within the game were posted to players’ Facebook news feeds more than 7.6 million times, delivering nearly a billion viral impressions. The campaign generated nearly 25,000 ‘Likes’ and more than 26,000 comments on the Mafia Wars Facebook fan page.

“Even John Dillinger would be impressed with the scope and success of this effort,” said Mike Wokosin, VP of digital marketing for USHE. “Mafia Wars was an incredibly dynamic environment to seamlessly integrate our property and to effectively engage a significant and relevant audience.”

Thanks to John Latchem

Is Ralph DeLeo the Street Boss of the Colombo Crime Family?

In Boston, home to the New England Mafia and a string of legendary former bosses like “The Cheese Man’’ and “Cadillac Frank,’’ Ralph DeLeo was a virtual unknown.

“Here, I’m nothing,’’ DeLeo said within earshot of an FBI bug. But in New York, he said, “Everybody is holding the door for ya, helping on your coat, giving you hugs . . . kissing you, and all this type of stuff. ‘Oh, you gotta sit in front, you gotta do this, are you comfortable? Can I get you coffee?’ ’’

But to the FBI, DeLeo, 66, of Somerville was somebody.

Agents tapped his cellphone from January through November of last year, then he was indicted last month on a federal racketeering conspiracy charge. The indictment filed in US District Court in Boston alleges that he is the “street boss’’ of New York’s Colombo family and runs a small crew based in Greater Boston involved in drug trafficking, extortion, and loansharking.

DeLeo is being held in Arkansas, where he’s also facing charges of cocaine trafficking. An FBI affidavit filed last week in courts in Boston and Arkansas detailed DeLeo’s alleged position in the New York mob and offered snippets of conversations from his bugged telephone calls.

The affidavit alleges that DeLeo is the highest-ranking member of the Colombo family who is not in prison, and ran the family’s business for most of last year. He allegedly reported to its boss, Carmine “The Snake’’ Persico, and acting boss, Alphonse “Allie Boy’’ Persico, who are in prison.

During an FBI-bugged call to his sister from New York last week, DeLeo, who had allegedly presided over a mob induction ceremony, admitted that he found his job “like overwhelming a little bit,’’ the affidavit said.

He described going to the ceremony in different groups and cars to “make sure we weren’t followed,’’ and added, “it was a big deal; people picking us up, taking us somewhere else and all that type of stuff, I wasn’t ready for all that.’’

In October 1989, New England mobsters did the same thing, arriving at a Medford home in different cars and groups. But it didn’t do them much good because the FBI had planted a bug in the house and captured its first-ever recording of a Mafia induction ceremony that led to a takedown of the hierarchy of the local mob.

Before the New England family was weakened by waves of prosecution, it was unheard of for another Mafia family to encroach on its territory.

The indictment alleges that in the past year DeLeo and three other men, Franklin M. Goldman, 66, of Randolph, Edmond Kulesza, 56, of Somerville, and George Wiley Thompson, 54, of Cabot, Ark., plotted to distribute marijuana and cocaine, extort money from victims, including one in Canton, and collect loansharking debts.

DeLeo allegedly paid $50,000 for 2 kilograms of cocaine that were transported from California to Massachusetts in December 2008, according to the indictment.

It’s not DeLeo’s first brush with the law.

He served a 25- to 40-year sentence in state prison at Walpole for kidnapping and armed robbery when he escaped in 1977.

He was convicted of killing an Ohio doctor in 1977 and sentenced to 15 years to life. But the state’s governor granted him clemency in 1991 and he has been free since 1997.

Unaware that his alleged encroachment into New England last year had drawn attention, DeLeo kept talking as the FBI kept listening.

During a March call to his sister from Florida, DeLeo lamented about all of the attention he was getting from other wise guys.

“They gave me too much attention,’’ DeLeo said, according to the affidavit. “You know, too many hugs, too many kisses. You know, holding the car door for me, holding doors for me, you know all that type of stuff. And, um, I’m not into that type of stuff. I’m, uh, you know, I’m . . . at heart I’m a regular guy, you know. Uh, you know to them I’m something else, but I’m really not that something else.’’

When his sister asked if he brought his girlfriend on the Florida trip, DeLeo said he was just “with the guys’’ because he was afraid she would be suspicious if she saw the royal treatment he was getting.

“You know what I mean, cause they definitely act like Sopranos and . . . the way they [pay] attention to me is, you know, they would huh, you know she would suspect something.’

Thanks to Shelley Murphy

Junior Gotti Contemplates Leaving New York and Becoming a True Crime Author

Now that the government has given up trying to put him in prison, John "Junior" Gotti says he may leave New York and try his hand at writing true crime stories.

The son of notorious Gambino boss John Gotti held a celebration dinner Friday at a restaurant in Westbury on Long Island.

Federal prosecutors announced Wednesday that after a series of hung juries they wouldn't seek a fifth retrial against the younger Gotti, who says he quit the mob in 1999.

Gotti told reporters at the dinner that he's thinking about moving south and may write a true crime book.

He says it may be "better for everybody" if he moves away.

Gotti served nine years in prison for racketeering, but prosecutors failed to convict him of charges that he ordered several murders.

Family Secrets Mob Prosecutor, John J. Sully, Now Serves on the Bench

For John J. Scully, who closed out his 25 years of fighting organized crime as a federal prosecutor in Chicago with the Operation Family Secrets trial before ascending to the bench last year as an associate judge in Lake County, some boasting may be in order. But Scully — a retired U.S. Navy captain who served on a destroyer off the coast of Vietnam in combat operations and later as an intelligence officer in the Navy Reserve — isn't one to toot his own horn, according to his current and former colleagues.

"He's accomplished a lot in his lifetime, and you wouldn't know it. … He's very humble," said fellow Lake County Associate Judge Jorge L. Ortiz.

Some highlights of Scully's career in the U.S. Department of Justice include the investigation and prosecution of former Chicago Police chief of detectives William Hanhardt, who pleaded guilty to running a Chicago Outfit interstate jewelry theft crew, and the prosecution of the On Leong gambling ring based in South Side Chinatown, a complex case that exposed payoffs to the mob, Chicago police and a Cook County judge.

His achievements were recognized by the U.S. attorney general in 2008, when Scully, along with two fellow prosecutors, was honored with a top national award, the DOJ's John Marshall Award, for his work in the Family Secrets case. The case targeted members of the Chicago Outfit and resulted in convictions involving 18 unsolved organized crime murders dating to 1970.

"He didn't even tell any of his friends about it [the top national award]. I found out about it by reading about it in the newspaper," Ortiz said. "That's just how he is."

Aside from practicing as an in-house attorney for Illinois Bell for three years in the late 1970s and early '80s, Scully, 62, has spent his professional life in public service.

His judicial service began in February 2009, when he was appointed to an associate judgeship in the 19th Judicial Circuit. He started out in the traffic division at Lake County's Park City branch court and is carrying out an assignment in misdemeanor court in the county's main courthouse in Waukegan.

"He's taken an amazing path to get to where he is," said Lake County Associate Judge Michael J. Fusz, a longtime friend. "It's incredible firepower on the bench, having somebody with his experience."

That path was carved out from Chicago's South Side, where Scully grew up in an Irish household as the eldest of seven children. The son of a World War II Navy veteran who worked as a steel estimator in Chicago factories, Scully attended De La Salle High School and became the first member of his family to attend college when he was admitted to the U.S. Naval Academy.

"I always assumed, when I was in high school, that I would, one way or another, be in the service. It's something that one should do if you can — serve your country," Scully said.

If the military or college weren't an option, Scully said, he had thought that "maybe I'd be a police officer or a firefighter."

"I figured I was going to go into the service and try to get an education," he said.

After graduating from the academy in 1969, he married his high school prom date, Pat, whom he had met when the two were teenagers working at a National Tea grocery store on the city's Southwest Side. He was a stock boy; she was a cashier.

As a newly commissioned naval officer, Scully asked to be assigned to a destroyer out of San Diego. He served on the USS Hull, off the coast of Vietnam from May 1970 to August 1971, providing assistance to carriers in the South China Sea, and providing naval gunfire support in close proximity to the shore, assisting either Army or Marine Corps spotters.

After his Western Pacific deployment, he headed for law school at the University of San Diego School of Law.

"I had always been the kind that read the paper, front page to the last page, and realized that so much of what was part of American life dealt in one way or another with the law," Scully said.

After nine years of active duty, which included prosecuting and defending sailors and Marines as an officer in the JAG Corps, Scully served an additional 20 years in the Navy Reserve, most of that time as an intelligence officer. He was ultimately in charge of about 170 intelligence officers and specialists in the Midwest.

Scully's career as a civilian prosecutor began in Lake County, as an assistant state's attorney prosecuting felonies for 14 months in the early 1980s. By 1982, he joined the Department of Justice as a special attorney with the U.S. Organized Crime Strike Force, which merged with the U.S. Attorney's Office in 1990.

"Growing up in Chicago, I think I had a fair sense of how much influence the Chicago Outfit had on various aspects of life in and around Chicago, and I felt I wanted to assist in investigating and prosecuting," Scully said.

Assistant U.S. Attorney T. Markus Funk worked alongside Scully as part of the three-prosecutor trial team in the Family Secrets case.

Funk described his former colleague as "unflappable," and "comfortable in his own skin," with a strong sense of empathy and a knack for gaining the trust of people from all walks of life — from the victims of violent crimes to a "murdering mobster."

"I've never seen him come unraveled, never seen him lose his cool," Funk said.

"He's not a guy who needs to talk tough or get accolades from other people," Funk said. "He's not a political being; he doesn't strive for some sort of public acclaim. He just wants to do the right thing. That seems to be what has been guiding him, and that's a great thing for a judge."

Criminal defense attorney Edward M. Genson opposed Scully in numerous cases during the judge's years with the DOJ.

"He was an extraordinarily good lawyer, an extraordinarily principled lawyer," Genson said. "His word was his bond.

"A fair prosecutor is going to be a fair judge," he said. "I'm sure he'll be fair."

Scully's colleagues on the bench say the judge's life experience, coupled with his personality traits, make for an "ideal" judge.

"He's a person of compassion, humility, industriousness, patience. And he is a grinder, someone who just keeps working at it," Ortiz said. "I think he's a perfect combination for a judge."

After 25 years of making the long commute from his home in Lake County to the federal courthouse in Chicago, Scully retired from the U.S. Attorney's Office in 2007.

"I had done most aspects of what I set out to do — to combat the Chicago Outfit," he said.

Around Christmas 2008, he submitted his bid for a judgeship.

"I've always enjoyed being in court, and I missed being in court from '07," Scully said.

For Scully, a father of four grown children and the grandfather of four whose name has followed the titles of captain, assistant U.S. attorney and now judge, "I'm a husband, dad and a grandpa first."

Looking back on the path that led him to the bench, Scully is quick to mention his high school sweetheart and wife of 40 years.

"I've had experiences that a lot of other people are not able to have, and that's mainly been made as a result of going to the Naval Academy. A lot of it flowed from there," Scully said. "But so much of it is as a result of having a wife who was supportive."

Thanks to Maria Kantzavelos