Federal Judge Grants Bond Eligibility to Reputed Mob Burglars

They may have pulled off one of the most spectacular stick-ups in all of Chicago mobdom, but that doesn't necessarily mean they will skip out on their current court case, said a federal judge.

On Wednesday, U.S. Magistrate Judge Nan Nolan ruled that Art "The Genius" Rachel and Jerry "Witherhand" Scalise pose no flight risk and are therefore eligible to be released on bond. Rachel, 71 and Scalise, 73 are charged with plotting a bank heist in west suburban LaGrange.

"The only reason that bank was not robbed was because of the FBI," stated assistant U.S. Attorney T. Markus Funk who was arguing the government's case for detention. "We have a bulletproof case against Mr. Scalise," Funk told Judge Nolan at Wednesday's bond hearing. "Mr. Scalise is probably one of the most inappropriate men for bond," said Funk.

Scalise and Rachel were convicted in the 1980 theft of the famous Marlborough diamond from a London, England jewelry store. The men used guns and grenades to swipe the 45 carat diamond, forcing employees and early morning shoppers into submission onto the floor.

The armed robbery went downhill from there, however, when witnesses caught glimpse of a license plate on the thieves' getaway car that had been rented at Heathrow Airport.

By the time Rachel and Scalise high-tailed it back to Chicago, Scotland Yard had notified the FBI and agents were waiting at O'Hare to greet the mobsters' jetliner. They were prosecuted and imprisoned in the UK.

Regardless, defense attorneys for the pair and for an alleged accomplice, Robert "Bobby" Pullia, said that all three were good family men who would not run out on their wives and children just because of their current legal problems.

"He's entitled to bond," said attorney Ed Genson who is representing Scalise, a career thief and Chicago mobster. "He's going to come to court, he always comes to court. He believes in the system. We're going to do the best we can to get him out on bond and try the case. And that's what we always do. I don't think there's an issue that these guys are going to run away. I think the judge can fasten conditions which would allow him to get out on bond and properly prepare his case and when we go to trial we'll see what happens."

Scalise, whose nickname "Witherhand" is in tribute to a few missing fingers, was asked by the judge to come up with more than his $690,000 suburban home to post as bond for his freedom. Lawyer Genson said he had no idea how much additional bond money Scalise could raise. "It depends on how rich the people who I ask to post their property are," said Genson.

Defendant Art Rachel will be allowed home incarceration with an electronic GPS monitor and a $10,000 bond, according to the judge. Rachel's lawyer, Terry Gillespie, called the government's case "pretty weak. I haven't heard anything compelling to link Rachel to the case," he said.

Gillespie also disputed that stated contention that Mr. Rachel has a drinking problem. Even though Rachel takes "four shots of whiskey a day," Gillespie explained to the judge that is "moderate drinking."

Defendant Pullia will also be afforded home incarceration with a GPS monitor and a $200,000 bond. "He has nowhere to go," said Pullia's attorney, Marc Martin. "He's not going to do that to his wife. He's been married for 28 years."

Judge Nolan agreed. "I don't think any of these fellas would walk out on their family," she said.

One piece of evidence against the three hoodlums did bother judge Nolan. She was shown an FBI photo of a van that agents said was to be used as a getaway vehicle after a bank robbery. It had been equipped with peepholes and gun slits, so that the trio could shoot their way past any obstacles, said federal authorities. "This van is disturbing," said Judge Nolan.

Regardless, she agreed that they were entitled to bond, although she said that she would order them held at the MCC while the government appealed her bond ruling. The appeal will be heard by Judge Harry Leinenweber, who has been assigned the actual trial.

Thanks to Chuck Goudie

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Not Guilty Pleas in Armored Car Robbery Plot

Three men, two of whom were convicted years ago of stealing the 45-carat Marlborough Diamond from a London jewelry store, pleaded not guilty today in federal court in Chicago to charges they plotted to rob a suburban armored car.

Joseph Scalise, Arthur Rachel and Robert Pullia were arrested as they allegedly prepared to burglarize the South Side home of a deceased mob boss. They were indicted on charges they conspired to pull off a robbery as cash was being delivered to a LaGrange bank.

Assistant U.S. Atty. Markus Funk explained to U.S. District Judge Harry Leinenweber how the three were preparing to try to steal shrink-wrapped cash that would be delivered to the bank but said they were thwarted "due to the good work of the FBI."

"And because our clients weren't there," answered lawyer Terrence Gillespie, who represents Rachel.

Lawyers on both sides told the judge a trial is likely.

Scalise, 73, Rachel, 71, and Pullia, 69, were under investigation for a 2007 holdup at another LaGrange bank when they allegedly were discovered planning their new bank job. They were taken into custody in burglary clothes as they allegedly planned to break into the home of the late Anthony "the Hook" LaPietra, a leader of the Chicago mob's Chinatown street crew.

Scalise and Rachel are reputed mob associates who served time for the Marlborough Diamond theft. More recently, Scalise acted as a technical adviser on the Johnny Depp film, "Public Enemies," about gangster John Dillinger.

Thanks to Jeff Coen

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Ex-Cop, James Formato, Pleads Guilty in Mob Case

A former suburban police officer admitted that he took part in a mob-related ring of criminals responsible for robberies, burglaries and setting off a giant pipe bomb that blew apart the offices of a video gaming company.

James Formato, 43, a husky, bearded former member of the Berwyn police department, appeared before U.S. District Judge Ronald A. Guzman and pleaded guilty to charges of racketeering conspiracy and conspiracy to obstruct justice.

Formato also gave federal prosecutors a potential witness with inside knowledge of the alleged crime ring, pledging to cooperate with the government's seven-year investigation in exchange for leniency when he is sentenced.

Seven other defendants, including reputed mob boss Michael Sarno, have pleaded not guilty to charges in the indictment.

The investigation began in February 2003 after a giant pipe bomb ripped through the Berwyn offices of a video gaming company. Prosecutors say it was a message from the mob to stop horning in on its highly lucrative video gaming monopoly in the western suburbs.

Formato admitted in his signed plea agreement that as a Berwyn officer he found out that federal agents were interested in a brown van that had been seen in the vicinity of the blast. He said that through a go-between he sent the information to Mark Polchan, a Cicero jewelry store owner and member of the Outlaws motorcycle club who is among those charged. Polchan has pleaded not guilty.

Formato also admitted that in the fall of 2002 he was paid $3,000 for transporting $150,000, some of it the proceeds of a burglary, across state lines to his father in Florida.

Formato also said he served as a lookout outside a west suburban residence while two men were inside burglarizing it. He said he warned one of the burglars later that police had an artist's sketch of him. He also said he took part in at least two other home burglaries.

The maximum sentence for each of the two charges to which Formato pleaded guilty is 20 years in prison and the maximum fine is $250,000. But under his plea agreement, his cooperation with the government could earn him a sentence of 60 percent of the low end of the sentencing range under federal guidelines -- 78 to 97 months by preliminary calculations.

Thanks to CBS2Chicago

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