Evidence In Mob Murders Surfaces In Casino Battle

The first piece of evidence in the Operation Family Secrets mob murder case surfaced Tuesday during a battle over a casino license. As CBS 2's John Drummond reports, a top FBI agent believes the undercover videotape shows a link between the mob and Rosemont Mayor Don Stephens.

James Marcello is identified by the FBI as the boss of the Chicago mob. In March 2004, the FBI videotaped a conversation between Marcello and his brother, Michael Marcello, at the federal prison at Milan, Michigan.

Stephens, the long-time mayor of Rosemont, had lobbied hard for the Emerald Casino Inc., to be granted a license to operate in Rosemont. But the Illinois Gaming Board rejected the Emerald bid, citing alleged mob ties. At a special hearing Tuesday on the Emerald license, the gaming board watched an undercover videotape from the Operation Family Secrets investigation. On the tape, the Marcello brothers discussed whether the mob would have a piece of any casino in Rosemont.

The two men did not use proper names when discussing the matter. The FBI said "he" referred to Stephens.

James Marcello: “Are we gonna be in there at all?”

Michael Marcello: “I don’t ... MGM or one of them companies will wind up with it. I mean he ain't going to get it like he wanted it before but...”

James Marcello: “They'll pay him so much a month and that'll be it.”

James Marcello: “You gotta say it. This guy really knew what he was doing, Mickey. They could say what they want about him.”

Attorney Robert Cliffford, who represents Emerald Casino, was skeptical of the meaning of the tape. “When I first saw this my reaction was you have a couple of sideways talking about stuff they don't know an awful lot about,” Clifford said. But top FBI organized crime agent John Mallul said that Stephens had a special interest in Emerald getting a license since he could exercise some control over it.

A spokesman for the Rosemont mayor ripped the FBI tape, calling it "meaningless." He said it proves nothing and suggests the gaming board has a "vendetta against Mayor Stephens."

As far as the videotape itself, this is the first time we've seen some of the mountain of evidence expected to be used against James Marcello and other alleged mobsters in the Family Secrets case. The video portion clearly showed the Marcello brothers having a chat in a day room at the Michigan prison. But the audio was difficult to make out. We had to read from a transcript provided by an FBI agent.

Thanks to Bulldog John Drummond

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Italian group criticizes Yaddo for allowing Mafia film shoot

The president of an Italian-American anti-defamation group has criticized the Yaddo Gardens artistic retreat for allowing a local independent film with Mafia content to be shot on its public grounds. But Schenectady filmmaker Christopher Bishop says the Commission for Social Justice has not read the script for the film, named "Corruption."

Bishop says his film is about a Mafia member who wants to get out of the business, and he says it doesn't show Italians in a negative light.

A spokeswoman for Yaddo, which is in Schenectady, New York, did not comment on the letter sent last week to the retreat. The Schenectady Daily Gazette reports the film shot there for one day in August.

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Gotti Jury is Hung, Judge Declares Mistrial

Jurors said they could not agree on verdicts against 41-year-old John A "Junior" Gotti, son of the late head of the powerful Gambino crime family.

Gotti, who has stayed in prison since serving out a sentence for extortion, hugged his lawyers after the decision. The jury did agree on one count - acquitting Gotti of conspiracy to commit securities fraud.

US District Judge Shira Scheindlin said she is likely to agree to a request to allow bail for Gotti. "It's my view that the time has come," Ms Scheindlin said in the courtroom. Gotti has already served a five-year sentence on other racketeering charges.

The new charges were brought against him last year before he was due to be released. One of those who testified against Gotti was Curtis Sliwa, a former radio host and founder of the anti-crime citizens group, the Guardian Angels.

Mr Sliwa says that Gotti ordered him to be attacked in retaliation for comments made about his father on the radio programme. "It's a hung jury, it's a mistrial, it's round two for me, it doesn't mean John 'Junior' Gotti is innocent," Mr Sliwa said. Prosecutors have said they will seek a retrial.

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