The Chicago Syndicate
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Sunday, October 22, 2006

Feds Give Up on Junior

Friends of ours: John Gotti, Junior Gotti, Gambino Crime Family

For John A. (Junior) Gotti, the third mistrial was the charm.

Federal prosecutors announced yesterday they will not retry Gotti for racketeering and will abandon efforts to nail him for trying to kill radio host Curtis Sliwa. Manhattan U.S. Attorney Michael Garcia said in a statement that a fourth trial was "not in the interests of justice in light of the three prior hung juries."

That means for the first time in eight years, Gotti, 42, is a free man with no criminal charges hanging over him. That didn't sit well with Sliwa, who vowed to bring a lawsuit against Gotti seeking damages for the 1992 shooting, which allegedly was in retaliation for his on-air attacks on the late Gambino crime boss John Gotti.

"I feel as disappointed as a Mets fan today," Sliwa told the Daily News. "I would have hoped they would have prosecuted him four or five times. But I understand they have to deal with legal technicalities."

Late yesterday afternoon, Gotti - whose father's ability to beat the rap earned him the moniker the Teflon Don - returned to his gated mansion in Oyster Bay Cove, L.I., with one of his sons in a chauffeured sedan, declining to speak to a reporter.

The mob scion has expressed interest in moving out West, returning to school to study child psychology and writing a book, but he needs permission from the feds because he's still on supervised release for his 1998 federal conviction. "He's been talking about plans for the future and now John has the freedom to go on with his life," sister Victoria Gotti said. "His only option, I think, is to get off the [government's] radar and go off and live somewhere else, like the Midwest or down South."

She said the entire Gotti clan is "beat up and tired" after three trials that have taken a heavy emotional toll on her brother. Gotti already had heard the good news on the radio by the time defense lawyer Charles Carnesi reached him. "He was thrilled," Carnesi said. "As much as it was expected, it's still different when you finally have confirmation.

"He wants to leave New York as soon as it can be arranged," Carnesi added.

Sliwa said he's owed monetary damages - "I can't tell you the pain I suffer as a result of the rearrangement of my internal plumbing" - and promised to donate any proceeds to charity. But his lawsuit is probably dead on arrival, legal experts say, for the very same reason the feds failed to convict Gotti - the statute of limitations has passed.

Although the jury in the last mistrial agreed to convict Gotti in the Sliwa attack - which might have created an exception to the one-year statute of limitations for filing a civil suit - there was no verdict because they were hung on the racketeering charge.

Gotti's mother, Victoria, didn't think much of Sliwa's threatened suit. "I think the victims of all his hoaxes should sue him," she said, referring to Sliwa's admissions that he had staged publicity stunts to get media coverage of the Guardian Angels, including a fabricated claim that he had been kidnapped by a city transit cop.

Though Gotti insists he left the Mafia behind in 1999, one law enforcement source said it's "pretty impossible" to believe he's going to move away and go straight. "He sitting on a ton of money which is all ill-gotten gains," the source said. "He knows one life and it's called organized crime. Plus he has to look over his shoulder with the Gambino family because he really upset a lot of people." But mob expert Jerry Capeci said he doesn't think anyone is gunning for Gotti for speaking to prosecutors, which at one point was a serious Mafia no-no. "He never hurt anyone, never became a cooperating witness," Capeci said. "Even though three juries could never agree on whether he quit the mob, his Gambino crime family days are gone, if not forgotten."

Thanks to John Marzulli

After 3 Strikes, Gotti's Prosecutors are Out

Friends of ours: Junior Gotti, John Gotti, Gambino Crime Family

John A. Gotti, who three times in just over a year has escaped conviction on federal racketeering charges, will finally be able to pursue what he claims he has long desired: an ordinary life.

After three trials in Manhattan, each ending in a hung jury, federal prosecutors have announced that they will not seek a fourth trial on those charges for Mr. Gotti, a decision federal officials had indicated was likely. It enshrines him as a defendant even trickier to convict than his father, the Gambino family don, John J. Gotti, who beat the rap three times himself before being found guilty in 1992 and dying in a federal prison hospital 10 years later. (The younger Mr. Gotti is not invulnerable: He was convicted in a previous case and served prison time.)

In a terse statement issued yesterday, Michael J. Garcia, the United States attorney in Manhattan, said this particular case was over. “The government has concluded that a retrial of defendant John A. Gotti on the pending indictment is not in the interests of justice in light of the three prior hung juries in the case,” it read. “Accordingly, we submitted a proposed order which the court has signed and which ends this prosecution.”

That left Mr. Gotti, who has acknowledged through his lawyers that he ran the Gambino family during stretches of the 1990’s, to return to a life as normal as his name will allow — for now. This decision does not preclude the F.B.I. or other authorities from developing new evidence for a different case some day.

At the end of his third trial in September, Mr. Gotti told reporters he wanted to “move on” and expressed a desire to work with children.

His lawyer, Charles F. Carnesi, said Mr. Gotti may turn to academe. “He’s interested in pursuing a degree,” he said. “In social work or counseling or maybe something with the schools.” With the indictment dismissed, he is free to go as he pleases, and the liens on his property securing his bail will soon be lifted, Mr. Carnesi said.

Mr. Gotti’s triumph was a stinging defeat for Curtis Sliwa, the radio talk show host whom prosecutors said was a victim in the case. While the jury agreed that Mr. Gotti ordered the abduction and attack of Mr. Sliwa in 1992 after he called the elder Mr. Gotti a drug dealer on the air, they could not agree on the overall charge that this was part of a racketeering conspiracy.

In a statement from the newsroom of WABC radio, Mr. Sliwa called Mr. Gotti a criminal and a drain on society. He also called Mr. Gotti’s father a serial killer and a disgrace to the human race. He said he intended to sue Mr. Gotti “for not only the bullets that he ordered put into my body, but for the fear and abuse he has heaped on our law-abiding society over the past 20 years.”

He ridiculed Mr. Gotti’s plan to “turn over a new leaf” as a charade. “He claims that he has moved on with his life and just wants to live in peace,” Mr. Sliwa wrote. “He wants to write books for children and raise money for charity, he claims. But part of moving on in life is acknowledging the innocent people hurt in the past. The people he extorted, stole from, had beaten and shot.”

Thanks to Alan Feuer

Trying to Fix an Award for Sidney Korshak

I received an e-mail from the Wisconsin Alumni Association this week seeking nominations for its annual "Badger of the Year" awards.

The release noted: "The criteria for the Badger of the Year awards are simple - recipients are alumni who are making a difference, whether by developing a successful business, serving as an educational leader, being a philanthropist or publicly supporting UW-Madison." I knew immediately who I wanted to nominate. He's a former UW-Madison student and athlete who definitely made a difference, while developing a most successful business.

Unfortunately, when I contacted the Wisconsin Alumni Association Friday, it turned out my nominee failed to meet certain other criteria for being named Badger of the Year. He's dead, for one thing, and he didn't graduate from UW-Madison for another. The rules require a recipient to be alive and to have graduated from here. Still, I went ahead and filled out the e-mail nomination form anyway, thinking perhaps an exception could be made.

So exceptional is my nominee that a major new book about him has just been published. The book, written by the esteemed investigative journalist Gus Russo, is titled "Supermob: How Sidney Korshak and His Criminal Associates Became America's Hidden Power Brokers."

Korshak attended UW-Madison for two years in the 1920s and won the campus intramural boxing championship in 1927 at 158 pounds.

He then left Madison (transferring to DePaul) and became, in the words of the "Supermob: How Sidney Korshak and His Criminal Associates Became America's Hidden Power Brokers" jacket copy, "the Chicago Outfit's fair-haired boy, Sidney Korshak, a.k.a. 'The Fixer,' who from the 1940s until his death in 1996 was not only the most powerful lawyer in the world, according to the FBI, but also the most enigmatic, almost vaporous player behind some of the shadiest deals of the twentieth century."

To which I would say: Who's perfect?

It all began for Korshak in Chicago, where he knew mobsters like Al Capone, and, later, Tony Accardo, who regarded Korshak almost as a son. From the outset Korshak was groomed to be organized crime's intermediary with legitimate business and politics - "the underworld liaison to the upperworld," in Russo's words.

Korshak moved easily from Chicago to Beverly Hills, where he mixed with stars like Frank Sinatra and moguls like Lew Wasserman and survivors like Robert Evans. Evans - who for years has been trying to make a movie about Korshak - was the source of the anecdote that kicks off Russo's first chapter on Korshak in California, a chapter that begins: "Sid Korshak's life in Beverly Hills was developing into a contradictory combination of sphinx-like mysteriousness and high-profile socializing with the world's most famous celebrities."

Korshak's new bride learned early that her charming husband conducted his business on a need-to-know basis, and among the things she was not to know were the names of his friends. Returning from their honeymoon, Bernice Korshak checked for messages and found that the following people had tried to reach her husband: George Washington, Thomas Jefferson, Abraham Lincoln and Theodore Roosevelt.

"Your friends sure have a strange sense of humor," Bernice said. "Who are they?"

"Exactly who they said they are," Sidney replied. "Any other questions?"

Evans, told the story by Bernice, noted, "Fifty years later, Bernice has never asked another question."

Hollywood historian Dennis McDougal would note that by 1960, "Korshak's influence surged beneath the surface of Hollywood like an underground river." He could start or stop labor strikes; get an actor a role or prevent it from happening; he was everywhere and nowhere. Korshak's photo was never to be taken, his name never included when a press agent puffed a list of party-goers to a gossip columnist. He lived in the shadows and it was from the shadows that Korshak and his supermob identified their next target, an arid land fit for growing nothing, nothing except money - Las Vegas.

So it went - a lucrative land grab here, a tax dodge there, somewhere else a quiet favor for a friend of a friend. Gus Russo's digging gets as close to the real Sidney Korshak as anyone ever has, and yet some mystery remains. It could not be otherwise.

As for that Badger of the Year award, I'll admit it's a long shot. But reading Russo, it seems Korshak's true vocation - fixing - might have got its start in Madison. Russo, quoting a UW student newspaper, says that in his championship campus boxing match, Korshak was out-punched and badly beaten by his opponent. "Consequently," the paper noted, "when the judges awarded the fight to Korshak, there was a great deal of surprise in the crowd."

It was a fitting beginning for "The Fixer."

Thanks to Doug Moe

Wednesday, October 18, 2006

Ghost of Capone Haunting Alcatraz?

Friends of ours: Al Capone, George "Machine Gun" Kelly

In the late 1850s, the first inmates to occupy Alcatraz were military prisoners who were put to work building a new prison that later became known as "The Rock." The U.S. Army used the island until 1933, at which time the Federal Government decided to open a maximum-security, minimum-privilege penitentiary to deal with the most incorrigible inmates.

Alcatraz was designed to break rebellious prisoners by putting them in a structured, monotonous routine until their release. Prisoners were given four basic things - food, clothing, shelter and medical care. Receiving anything beyond that had to be earned. Famous criminals, such as Al Capone, George "Machine-Gun" Kelly, Alvin Karpis and Arthur "Doc" Barker, spent time in Alcatraz. Mobsters in other prisons often managed to manipulate special privileges from guards, but not at Alcatraz.

Tough Punishment

The Strip Cell

Prisoners refusing to follow prison rules risked being confined to the Strip Cell, located on the lower tier of D Block. It was a dark steel cell, where inmates would be stripped naked and given water and bread once daily, an occasional meal and a mattress at night. The only 'toilet' was a hole in the cell floor and there was no sink. While there, convicts had no contact with others, spending their time in pitch-dark solitude.

The Hole on D Block
Similar to the strip cell, there were five 'hole' cells also on the lower tier, where prisoners were kept in isolation for up to 19 days. The cells had a toilet, sink, lightbulb and a mattress provided during the night only.

Prison Closure
Because of the huge cost to refurbish the prison it was closed in 1963. Later the island and parts of the prison were reopened by the Parks Services for daily public tours.

Tales of Torture
The fact that Alcatraz was built on an island and kept so isolated from public view, tales of inmates being tortured and of their bitter spirits coming back to haunt the halls of Alcatraz began to circulate.

The Ghost Stories of Alcatraz

The Utility Corridor
One of the areas which some claim is the most active with paranormal activity is a utility corridor where inmates Coy, Cretzer and Hubbard were plummeted with bullets after a failed prison escape. It is there that in 1976 a night security guard reported hearing unexplained eerie clanging sounds coming from inside.

Cell 14D
Cell 14D, one of the 'hole' cells is believed by some to be very active with spirits. Visitors and employees have reported feeling a raw coldness and at times a sudden 'intensity' encompasses the cell. Tales have been told of an event in the 1940s, when a prisoner locked-in 14D screamed throughout the night that a creature with glowing eyes was killing him. The next day guards found the man strangled to death in the cell. No one ever claimed responsibility for the convict's death, however the next day when doing head counts, the guards counted one too many prisoners. Some of the guards claimed seeing the dead convict in line with the other inmates, but only for a second before he vanished.

Warden Johnston
Other stories have circulated that Warden Johnston, nicknamed "The Golden Rule Warden," also faced a bizarre event while showing some of his guests around the prison. According to the story, Johnston and his group heard someone sobbing from inside the prison walls, and then a cold wind whisked past the group. Johnston could never explain any reason for the occurances.

Cell blocks A, B, and C
Visitors to cellblocks A and B. claim they have heard crying and moaning. A psychic visiting wrote that while in Block C he came upon a disruptive spirit name Butcher. Prison records show that another inmate in block C murdered Abie Maldowitz, a mob hitman known as Butcher.

The Ghost of Al Capone
Al Capone, who spent his last years at Alcatraz with his health in decline from untreated syphilis, took up playing the banjo with a prison band. Fearing he would be killed if he spent his recreational time in the "yard," Capone received permission to spend recreation time practicing his banjo in the shower room. In recent years, a park ranger claimed he heard banjo music coming from the shower room. Not familiar with the history of Alcatraz, the ranger could not find a reason for the sound and documented the strange event. Other visitors and employees have reported hearing the sound of a banjo coming from the prison walls.

More Paranormal Reports
Other odd events experienced over the years include guards smelling smoke, but finding no fire; sounds of unexplained crying and moaning; unexplained cold spots in areas of the prison and claims of seeing ghosts of prisoners or military personnel. Could it be Alcatraz is haunted? Ghost hunters have said they feel parts of the island and areas of the prison evoke a certain "strangeness," but it is mostly employees who are in areas of the prison alone who have reported most of the unexplained events that haunt the dark corridors of Alcatraz.

Thanks to Charles Montaldo

Tuesday, October 17, 2006

Federal Probe Alleges Mobster Involved in Naperville Hit

Friends of ours: Nick Calabrese, Anthony Chiaramonti

It was a crime in the heart of Naperville that had the markings of a mob hit.

Rosemarie Re was shot seven times in broad daylight July 16, 1997, outside Linden Oaks Hospital, where she was to meet her estranged husband to discuss one of their children. Police found Randall G. Re in the hospital lobby after the shooting, and the husband denied involvement. The gunman escaped, but detectives have suspected for almost 10 years Re was behind the attempted hit on his wife, who survived.

Their investigation sparked unrelated federal charges that landed Re and a reputed mob enforcer - who authorities say may be the gunman - in prison for extortion. As Re's accomplice, Anthony N. Calabrese, faces new allegations in the federal probe, authorities are hoping for a break in the long-unsolved attempted murder.

On Monday, Naperville police Detective Mike Cross met with top DuPage County prosecutors to discuss why there might now be enough evidence to indict the 52-year-old ex-husband on solicitation to commit murder charges. Rosemarie Re also met with the prosecutors.

The 51-year-old woman underwent 15 surgeries and still has three bullets lodged in her body. She lives in Venice, Fla., with the former couple's three children, now ages 21 to 16, and suffers from chronic pain. "I feel like it's close," she said after the meeting. "I'm real optimistic." Charges may come in the attempted murder by year's end, sources said.

Rosemarie Re filed for divorce six months before she was shot. The Lisle woman survived after spending three months in Edward Hospital, where she was guarded around the clock and registered under an assumed name. She remained in a coma for six weeks.

Police released Randall Re without charges after 24 hours of questioning, but they said he remained the prime suspect.

In April 2003, Re and Calabrese were sentenced to seven years in prison for trying to shake down a Florida businessman in 1997. Calabrese, a reputed member of the Chicago Outfit's Bridgeport-Chinatown Crew, beat the businessman with a baseball bat after he opened a warehouse in Florida next to one Re owned.

Rosemarie Re hasn't been able to identify her shooter. Law enforcement officials suspect Randall Re paid Calabrese at least $10,000 to do the hit.

Both men remain in federal prison. Re is scheduled for release in February 2009. Last month, prosecutors indicted Calabrese and four others in connection with three armed robberies in the Lockport and Morton Grove areas. Calabrese, 45, formerly of Lockport, is being held at the Metropolitan Correctional Center in Chicago.

Federal authorities also are investigating Calabrese in connection with an unrelated mob shooting, this one deadly. He surfaced as the suspected triggerman who killed loan collector Anthony "The Hatch" Chiaramonti Nov. 20, 2001, in the vestibule of a Brown's Chicken & Pasta restaurant on Harlem Avenue in Lyons, according to a federal indictment. The getaway driver who implicated Calabrese in the Lyons murder, Robert G. Cooper of Bridgeport, is serving a 22-year federal prison term after pleading guilty in 2003 to first-degree murder.

Although Calabrese has not been charged with killing Chiaramonti, authorities hope the two ongoing federal probes will lead to a break in the Naperville case. Cross recently interviewed Randall Re, and Calabrese and his co-defendants in the three armed robberies.

This development is just the latest in the twisted saga. The investigation was complicated in 1998 when a DuPage County judge allowed Randall Re's divorce lawyers to question Cross. Cross, whose work led to the federal charges, was forced to reveal some of the details of the attempted murder investigation during the deposition. Both former Illinois Attorney General Jim Ryan and DuPage County State's Attorney Joseph Birkett unsuccessfully fought the court order requiring Cross to testify.

Also, one of Randall Re's divorce attorneys was disbarred for stealing $2.5 million from his clients, including money from the sale of Re's warehouse meant for his children. Rosemarie Re has since recouped most of her losses. But in a development that netted some progress in the case, police in August 2002 recovered at the bottom of the Cal-Sag Channel in Alsip the .22-caliber gun used in the Re shooting. Police said the gun was found just a block from a business owned by Calabrese, who an informant involved in the Florida case said was known to toss his weapons in the channel. A ballistics test done at the FBI's crime lab in Quantico, Va., later confirmed it was the one used in the Re shooting, officials said.

Despite all of the twists, Rosemarie Re said she remains hopeful and is indebted to the Naperville Police Department, especially Cross, for never giving up on her case. "When I remember those nanoseconds of the shooting, I still feel the searing pain, like it was yesterday," she said. "Victims never forget.

"I'll always suffer from post-traumatic stress disorder and will probably always be in counseling, but at least (with charges) my kids and I will have closure. We can move on with our lives."

Thanks to Christy Gutowski

Mob Boss Son to Increase Brewery Equity Stake

Friends of ours: Jackie Cerone

Bankrupt Pittsburgh Brewing filed its long-awaited reorganization plan yesterday, saying it intends to modernize the 145-year-old Lawrenceville brewery with $7 million from investors and lenders.The son of Jackie Cerone, Jack P. Cerone, will double his ownership of the Pittsburgh Brewing Company based upon the latest reorganization plan

The investment would be used to pay bankruptcy-related expenses and purchase a new boiler and a keg system, which would allow the brewery to expand sales to taverns. Remaining funds would be used for marketing. The plan is based on estimated annual savings of $1 million by revising its labor agreement and terminating a union pension plan.

Pittsburgh Brewing's plan, filed in U.S. Bankruptcy Court, Downtown, does not disclose the investors or who would provide financing to the company. The loans would be in addition to a $500,000 line of credit the company has arranged through Craig Newbold, an East Liverpool, Ohio, native whose fortune is based on a software venture he developed and sold.

Some long-suffering creditors will likely object to the 18-page plan, which contests claims filed against Pittsburgh Brewing by several major creditors, most of them government agencies. Unsecured creditors would get 33 cents for every $1 they are owed. They would get less if creditors win claims the brewery is disputing.

Members of the IUE/Communications Workers of America have thus far rejected the wage and other concessions the brewery is seeking, saying they will base their final decision on the merits of the reorganization plan.

President Joseph Piccirilli, who would continue to run the brewery, would increase his ownership of the company to 50 percent under terms of the plan. Jack P. Cerone, the son of a former Chicago mob boss who has an $8 million claim against the company, would double his ownership stake to 40 percent by converting the unpaid loans he provided to the brewery to equity.

Other secured creditors who would be paid in full include the Pennsylvania Industrial Development Authority, which would receive $577,700 owed on a $1.4 million, five-year loan it provided in 1996; a union pension plan that would receive $200,000 in overdue contributions; and the City of Pittsburgh, which would collect $50,800 in unpaid real estate taxes. Mr. Piccirilli would also receive $112,000 in unpaid wages.

Pittsburgh Brewing is contesting a $2.7 million claim by the Pittsburgh Water and Sewer Authority. The agency's threat to terminate service over unpaid bills triggered the brewery's decision to seek bankruptcy protection Dec. 7.

The brewery also is contesting the Pension Benefit Guaranty Corp.'s $1.8 million claim over a terminated pension plan; a $309,500 claim by the Internal Revenue Service; $120,000 of an $814,400 claim for unpaid federal excise taxes filed by the U.S. Alcohol & Tobacco Tax & Trade Bureau; $136,100 in claims by the Pennsylvania Department of Revenue; and a $38,200 claim for Allegheny County real estate taxes.

Unsecured creditors have filed claims in excess of $18 million, but the brewery estimates legitimate claims at $6 million, a figure the 33-cent-on-the-dollar payout is based on. Robert Sable, attorney for the unsecured creditors, declined comment, saying he wanted to review the plan with his clients.

The brewery provided estimates of its financial results based on the reorganization plan. It projects losses of $1.6 million this year and $347,000 next year before turning profits of $575,000 in 2008 and $1.1 million in 2009.

Thanks to Len Boselovic

Sunday, October 15, 2006

Judges Tied to Syndicate? Criminal Contempt is the Response

Michael Lynch's campaign to expose what he says are judges involved in a conspiracy linked to organized crime was put on hold Friday when a judge sentenced him to 60 days in Cook County Jail for criminal contempt.

Lynch once headed Michigan Avenue Partners and turned Chicago-based McCook Metals into a major aluminum force. The New York Times wrote of his entrepreneurial skills when McCook offered a higher bid than Alcoa for Reynolds Metals.

Now fighting bankruptcy, he tells judges to their faces in federal and state court that he thinks they have ties to organized crime and need to recuse themselves from his cases -- such as those seeking to foreclose on his Lake Forest home.

Cook County Judge Paddy McNamara, who gets good ratings from lawyers' groups, sent him to jail Friday after a two-hour hearing in which he repeatedly accused other judges of getting mob money and then produced what he said were some of the judge's own financial records.

Lynch sees a conspiracy of judges linked to law firms that represent Alcoa trying to take him down. He suspected his own lawyers were involved. Lynch said when one judge seemed ready to rule in his favor, the case was suddenly transferred to another judge who ruled against him.

Cook County Judge Alexander White -- as highly rated as McNamara -- told Lynch two weeks ago "Counsel, that's libelous. . .. I have never received a penny," in response to Lynch's demand that White "admit or deny" ties to organized crime.

On Friday, Lynch asked McNamara to let him bring in a source from an organized crime family to back up his claims, but the judge said she had heard enough.

Thanks to Abdon M. Pallasch

Affliction!

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