The Chicago Syndicate
The Mission Impossible Backpack

Thursday, December 30, 2010

Robert DeNiro and Martin Scorsese Team Up on New Mob Movie "The Irishman"

Fresh from his box office disappointment with "Little Fockers,” Robert De Niro will team up with Martin Scorsese in yet another Irish-themed movie for the acclaimed director.

Scorsese’s recent films have included “The Departed” about Irish cops and corruption in Boston, “Gangs of New York” about the Irish in Civil War-era New York City, and now “the Irishman” about an Irish mafia hit man.

The film is based on the book “I Heard You Paint Houses: Frank "The Irishman" Sheeran & Closing the Case on Jimmy Hoffa” by former prosecutor and Chief Deputy Attorney General of the State of Delaware Charles Brandt, which told of the exploits of Frank “The Irishman” Sheeran, a mob hitman who confessed to Brandt that he killed Jimmy Hoffa. The story will be adapted for the screen by Steve Zallian, who also worked with Scorsese on “Gangs of New York.”

“The Irishman” will mark the ninth time Scorsese and De Niro have teamed up. The two have worked together in such films as “Mean Streets,” “Taxi Driver,” “Raging Bull,” and “Goodfellas.”


Wednesday, December 29, 2010

TONY DEMASI AND THE MEDIA

TONY DEMASI AND THE MEDIA PART I: This is the first in a three part series of the story of the rise and fall of Tony Demasi, the former owner of two of Chicago's hottest nightclubs, Reserve and Crescendo.

TONY DEMASI AND THE MEDIA PART II: Demasi continues his domination of Chicago's nightlife until fraud charges become the first in a series of dominos in an epic fall and the media, once his fawning supporters turn vicious.

TONY DEMASI AND THE MEDIA PART III: Demasi's fraud conviction is examined.

Michael Mann to Direct Tony Accardo Movie "Big Tuna"

Sheldon Turner will write Big Tuna for Michael Mann to direct, reports Variety. The project is a biopic of Chicago mob boss Tony Accardo and Sam Giancana, the protege that replaced him.

The trade says the movie is one of several that could become Mann's follow-up to Public Enemies. Mann has also been eyeing a medieval film about the battle of Agincourt, between England and France, based on Bernard Cornwell's best-seller. Another is a biopic of WWII photographer Robert Capa.

Turner (Up in the Air) will work on Big Tuna as he prepares his directorial debut on the independently produced revenge drama By Virtue Fall.

Thursday, December 23, 2010

Michael "The Large Guy" Sarno Found Guilty of Racketeering Conspiracy

Reputed Cicero mob boss Michael “The Large Guy” Sarno took a big fall Wednesday after he was convicted in federal court of a racketeering conspiracy charge that could put him behind bars for 25 years.

“God!” Sarno’s wife, Nicole, yelled out in the courtroom as a federal judge agreed to a prosecutor’s request that the mobster, out on bond, should be taken into custody immediately, just three days before Christmas. His daughter, Angelica, a college student who attended many days of the trial, broke down, sobbing loudly.

Sarno, 52, was convicted along with his friend, Outlaw motorcycle gang member Mark Polchan, 43, as well as the video poker king of the Chicago area, Casey Szaflarski, 52, mob bomber Sam Volpendesto, 86, and his son, Anthony, 48, a prolific thief.

The centerpiece of the case was the bombing in 2003 of a storefront in Berwyn, targeting a businessman competing with Sarno in the video poker business. No one was hurt in the pipe bomb blast, but it gutted the building.

Authorities say the case showed the Chicago Outfit outsourcing some of its dirty work — the bombing of a competitor and the later intimidation of a witness — to a motorcycle gang during a time when the Outfit was under keen pressure from the historic Family Secrets mob investigation.

Over a six-week trial, federal prosecutors Amarjeet Bhachu, Tinos Diamantatos and Michael Donovan called more than 80 witnesses, played more than 70 audio or video recordings and entered more than 300 exhibits into evidence to show a wide-ranging conspiracy, that included a slew of home robberies and jewelry store burglaries, that was investigated by the FBI, ATF and IRS.

The jury’s decision marks the third conviction for Sarno in an organized crime case. Sarno started his career in organized crime at 17 as an enforcer. Working his way up the ranks, Sarno — about 6-foot-3 and topping 300 pounds at his heaviest — has never been known as the brains of the mob but rather as a tough guy willing to inspire fear and snatch someone else’s profitable scheme. While Sarno oversaw the criminal group, he likely won’t face the most time in prison when the men are sentenced in May.

Polchan and Sam Volpendesto were convicted with taking part in the bombing of the Berwyn business and face mandatory minimum sentences of 30 years behind bars for that crime alone. Each man could be sentenced to more than 50 years behind bars — a death sentence for Sam Volpendesto.

Thanks to Steve Warmbir

Sunday, December 12, 2010

Vatican Bank Tied to Mafia Front?

This is no ordinary bank: The ATMs are in Latin. Priests use a private entrance. A life-size portrait of Pope Benedict XVI hangs on the wall. Nevertheless, the Institute for Religious Works is a bank, and it's under harsh new scrutiny in a case involving money-laundering allegations that led police to seize —23 million ($30 million) in Vatican assets in September. Critics say the case shows that the "Vatican Bank" has never shed its penchant for secrecy and scandal.

The Vatican calls the seizure of assets a "misunderstanding" and expresses optimism it will be quickly cleared up. But court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws "with the aim of hiding the ownership, destination and origin of the capital." The documents also reveal investigators' suspicions that clergy may have acted as fronts for corrupt businessmen and Mafia.

The documents pinpoint two transactions that have not been reported: one in 2009 involving the use of a false name, and another in 2010 in which the Vatican Bank withdrew —650,000 ($860 million) from an Italian bank account but ignored bank requests to disclose where the money was headed.

The new allegations of financial impropriety could not come at a worse time for the Vatican, already hit by revelations that it sheltered pedophile priests. The corruption probe has given new hope to Holocaust survivors who tried unsuccessfully to sue in the United States, alleging that Nazi loot was stored in the Vatican Bank. Yet the scandal is hardly the first for the centuries-old bank. In 1986, a Vatican financial adviser died after drinking cyanide-laced coffee in prison. Another was found dangling from a rope under London's Blackfriars Bridge in 1982, his pockets stuffed with money and stones. The incidents blackened the bank's reputation, raised suspicions of ties with the Mafia, and cost the Vatican hundreds of millions of dollars in legal clashes with Italian authorities.

On Sept. 21, financial police seized assets from a Vatican Bank account at the Rome branch of Credito Artigiano SpA. Investigators said the Vatican had failed to furnish information on the origin or destination of the funds as required by Italian law.

The bulk of the money, —20 million ($26 million), was destined for JP Morgan in Frankfurt, with the remainder going to Banca del Fucino.

Prosecutors alleged the Vatican ignored regulations that foreign banks must communicate to Italian financial authorities where their money has come from. All banks have declined to comment.

In another case, financial police in Sicily said in late October that they uncovered money laundering involving the use of a Vatican Bank account by a priest in Rome whose uncle was convicted of Mafia association.

Authorities say some —250,000 euros, illegally obtained from the regional government of Sicily for a fish breeding company, was sent to the priest by his father as a "charitable donation," then sent back to Sicily from a Vatican Bank account using a series of home banking operations to make it difficult to trace.

The prosecutors' office stated in court papers last month that while the bank has expressed a "generic and stated will" to conform to international standards, "there is no sign that the institutions of the Catholic church are moving in that direction." It said its investigation had found "exactly the opposite."

Legal waters are murky because of the Vatican's special status as an independent state within Italy. This time, Italian investigators were able to move against the Vatican Bank because the Bank of Italy classifies it as a foreign financial institution operating in Italy. However, in one of the 1980s scandals, prosecutors could not arrest then-bank head Paul Marcinkus, an American archbishop, because Italy's highest court ruled he had immunity.

Marcinkus, who died in 2006 and always proclaimed his innocence, was the inspiration for Francis Ford Coppola's character Archbishop Gilday in "Godfather III."

The Vatican has pledged to comply with EU financial standards and create a watchdog authority. Gianluigi Nuzzi, author of "Vatican SpA," a 2009 book outlining the bank's shady dealings, said it's possible the Vatican is serious about coming clean, but he isn't optimistic.

"I don't trust them," he said. "After the previous big scandals, they said 'we'll change' and they didn't. It's happened too many times."

He said the structure and culture of the institution is such that powerful account-holders can exert pressure on management, and some managers are simply resistant to change.

The list of account-holders is secret, though bank officials say there are some 40,000-45,000 among religious congregations, clergy, Vatican officials and lay people with Vatican connections.

The bank chairman is Ettore Gotti Tedeschi, also chairman of Banco Santander's Italian operations, who was brought in last year to bring the Vatican Bank in line with Italian and international regulations. Gotti Tedeschi has been on a very public speaking tour extolling the benefits of a morality-based financial system.

"He went to sell the new image ... not knowing that inside, the same things were still happening," Nuzzi said. "They continued to do these transfers without the names, not necessarily in bad faith, but out of habit."

It doesn't help that Gotti Tedeschi himself and the bank's No. 2 official, Paolo Cipriani, are under investigation for alleged violations of money-laundering laws. They were both questioned by Rome prosecutors on Sept. 30, although no charges have been filed.

In his testimony, Gotti Tedeschi said he knew next to nothing about the bank's day-to-day operations, noting that he had been on the job less than a year and only works at the bank two full days a week.

According to the prosecutors' interrogation transcripts obtained by AP, Gotti Tedeschi deflected most questions about the suspect transactions to Cipriani. Cipriani in turn said that when the Holy See transferred money without identifying the sender, it was the Vatican's own money, not a client's.

Gotti Tedeschi declined a request for an interview but said by e-mail that he questioned the motivations of prosecutors. In a speech in October, he described a wider plot against the church, decrying "personal attacks on the pope, the facts linked to pedophilia (that) still continue now with the issues that have seen myself involved."

As the Vatican proclaims its innocence, the courts are holding firm. An Italian court has rejected a Vatican appeal to lift the order to seize assets.

The Vatican Bank was founded in 1942 by Pope Pius XII to manage assets destined for religious or charitable works. The bank, located in the tower of Niccolo V, is not open to the public, but people who use it described the layout to the AP.

Top prelates have a special entrance manned by security guards. There are about 100 staffers, 10 bank windows, a basement vault for safe deposit boxes, and ATMs that open in Latin but can be accessed in modern languages. In another concession to modern times, the bank recently began issuing credit cards.

In the scandals two decades ago, Sicilian financier Michele Sindona was appointed by the pope to manage the Vatican's foreign investments. He also brought in Roberto Calvi, a Catholic banker in northern Italy.

Sindona's banking empire collapsed in the mid-1970s and his links to the mob were exposed, sending him to prison and his eventual death from poisoned coffee. Calvi then inherited his role.

Calvi headed the Banco Ambrosiano, which collapsed in 1982 after the disappearance of $1.3 billion in loans made to dummy companies in Latin America. The Vatican had provided letters of credit for the loans.

Calvi was found a short time later hanging from scaffolding on Blackfriars Bridge, his pockets loaded with 11 pounds of bricks and $11,700 in various currencies. After an initial ruling of suicide, murder charges were filed against five people, including a major Mafia figure, but all were acquitted after trial.

While denying wrongdoing, the Vatican Bank paid $250 million to Ambrosiano's creditors.

Both the Calvi and Sindona cases remain unsolved.

Thanks to Nicole Winfield and Victor L. Simpson

Thursday, December 09, 2010

Ex-Berwyn Patrolman James Formato Testifies about His Role in a Mob-connected Burglary Ring

A one-time crooked cop swore to tell the truth in federal court Thursday. Ex-Berwyn Patrolman James Formato testified about his role in a mob-connected burglary ring.

The golden rule of the Chicago Outfit is that you do unto others before the police can undo you, and having the police in your back pocket had been the most efficient way mob bosses have accomplished that for almost a century.

Formato was paid to serve and protect the 54,000 residents of west suburban Berwyn. Unknown to them, Formato was also being paid to protect a multi-million dollar Outfit burglary crew.

Even while in uniform, Formato couriered mob cash. He has told federal authorities that he faked police reports and provided inside law enforcement information to west suburban rackets boss Michael "the Large Guy" Sarno, who is currently on trial in federal court with four accused associates.

Formato, no longer a Berwyn policeman, has pleaded guilty in the case and could face almost four years in prison as part of his deal with prosecutors.

During Thursday's testimony, ex-officer Formato provided a play-by-play of his moonlighting for the mob, a crew that is accused of bombing of a rival video poker business, committing home invasions and jewelry heists netting nearly $2 million.

In 2007, after Formato began cooperating with the FBI, he secretly recorded conversations with members of the gang, including Outlaw biker Mark Polchan, who is on trial.

The former Berwyn policeman will be back on the stand Friday. The government is close to wrapping up its case.

Thanks to Chuck Goudie

Friday, December 03, 2010

Defense Cross-Examination of Key Witness at Sarno Trial

Defense lawyers began cross-examining a key government witness in the federal racketeering case against Chicago Outfit boss Michael "The Large Guy" Sarno.

In New York and in the movies, the code of silence is called "omerta." In the Chicago Outfit, wiseguys play by their own rules, and they don't have a fancy Italian nickname for keeping quiet. They're just supposed to do it.

For suburban mob boss Mike Sarno, the top defendant in the current Outfit prosecution, it is clear that the code of silence is sometimes tough to enforce.

When the I-Team showed up at Sarno's Westchester home a few years ago, he had no problem clamming up in front of the camera. But about that same time, the FBI was listening in on Sarno's phone calls, as agents investigated the mob bombing of a Berwyn video poker company and links between the Outfit and the Outlaws biker gang.

In one secretly recorded phone call with a longtime family friend, Sarno could almost be heard cringing.

KANTOWSKI : Mike, how are you doing?
SARNO: How you doin', buddy?
KANTOWSKI: Good, I'm sitting here with, ah, Frank Caruso, um,
Dominick Montagna and Frank Depollo.
SARNO: Oooh, oh you, oh boy.
KANTOWSKI: Trying to work this out.
SARNO: Alright.
KANTOWSKI: Uh oh, I'm in trouble.
SARNO: Talk to you later.

Caruso, a South Side Outfit boss, and the other names were unwelcome subjects of that phone call between Mike Sarno and his friend David Kantowski, who says he was a 25-year friend of Sarno's. An hour later, they talked again.

SARNO: Ok, well, listen, I, I, I just got to, I want to tell you something. I appreciate everything you are doing for me, buddy, but please stop with the names on my phone. Please.
KANTOWSKI: Ok.
SARNO: I know I'm paranoid, but I got good reason to be.
KANTOWSKI: I wasn't even thinking, Mike I, I apologize, I wasn't even thinking about that, God d------t.
SARNO: Well, listen ...
KANTOWSKI: Sorry buddy.
SARNO: I'll do the thinking for us with that stuff because, ah ... Believe me, it's a shame we got to be like that, but we do.

Kantowski is a Chicago real estate agent and is related to two of the defendants in the case, Sam and Anthony Volpendesto.

Mr. Kantowski told the I-Team late Thursday that he may be called as a rebuttal witness during the trial.

All day Thursday, prime government witness Kyle Knight was on the stand. He provided the bomb components for that Berwyn attack.

Thanks to Chuck Goudie

Wednesday, November 24, 2010

Sketch Artist Forbidden From Drawing Co-Defendant at Mob Bombing Trial

In federal court Tuesday, the mob racketeering trial of Michael "the Large Guy" Sarno and four alleged accomplices was abruptly halted when a witness was asked about Sarno's mob connections.

In this intelligence report: Why that wasn't the only unusual event during the trial.

Mike Sarno, a convicted Outfit boss, is accused of ordering the bombing of a Berwyn video poker machine maker that was in competition with the Outfit.

For the past two days one of Sarno's co-defendant's in the case has been testifying. Mark Hay is a career burglar, and unbeknownst to his accused criminal colleagues, he was cooperating with the FBI.

Tuesday, as the free-on bond "Large Guy" walked into federal court for another day of trial, his attorney Terry Gillespie was able to cross-examine one of the government's prime witnesses. His name: 54-year-old Mark Hay.

In an extraordinary request, the past two days, Judge Ronald Guzman asked that our ABC7 courtroom sketch artist not draw Hay's face, even though he was sitting in full view in a public courtroom and is a named defendant.

It is thought that Hay will enter the federal witness protection program and be given a new identity once this case is done.

More unusual is that Hay's picture is readily available to anyone searching the Illinois Department of Corrections website. He has been serving a lengthy sentence at the Logan Correctional Center on numerous burglary convictions.

The past two days, not only has Hay's testimony been seen and heard, so have his undercover tapes.

On those tapes Hay expresses his surprise that Mike Sarno hadn't been indicted during the fed's Operation Family Secrets, the feds' much more expansive mob murders prosecution from a few years ago.

It is unclear why a news organization's sketch artist would be singled out and asked not to draw a picture of someone who is appearing in a public courtroom when that person's current prison photo is available for anyone to see on a government website.

Thanks to Chuck Goudie

Friday, November 19, 2010

Frank Calabrese Sr Not a Happy Camper in Prison

It's been two years since Chicago mob boss and hitman Frank Calabrese Sr. was put into solitary confinement in a federal prison. Calabrese's lawyer says the treatment is unfair and unjust.

The United States Bureau of Prisons calls them "Special Administrative Measures." Federal authorities will not talk about who is placed under those provisions or why.

By definition the special measures -- or SAMs -- are intended for terrorists to prevent them from threatening national security by communicating plans to the outside. According to his lawyer, at age 73, Outfit boss Frank Calabrese Sr. doesn't qualify.

"He's in more like an old mop room that they keep him in," said Joe Lopez, Calabrese's attorney. "He's in this large room because its the only place they can keep him. It's not really a room, it's more of an old storage room that was converted just to house him as an inmate."

Frank "the Breeze" Calabrese is being held at the Springfield Correctional Center in near isolation at the request of U.S. Attorney Patrick Fitzgerald. The special incarceration is being used on terrorists, including shoe bomber Richard C. Reid who was arrested in 2001 for attempting to blow up a jetliner.

Calabrese got himself in trouble while playing mob boss behind bars in Milan, Mi., resulting in FBI undercover tapes that helped convict him and five Outfit associates during the 2007 Family Secrets trial.

"Based on other conduct that occurred while he was in prison, some of the things you heard at Family Secrets, some of the tapes that were being made by his son, they put him into this special administrative measure," said Lopez.

It didn't help that Calabrese allegedly threatened to kill former Family Secrets prosecutor T. Markus Funk.

"You look at a guy like Frank Senior, who I have a history with, and I'm not going to be on his Christmas card list, and he certainly isn't going to be on mine. But he did things, he was cruel, he went out of his way to brutalize people," said Funk.

In a 2008 court motion, Calabrese's lawyer compared him to Hannibal Lecter, the fictional psychopath in the movie Silence of the Lambs and predicted the Hollywood-style facemask was coming. Even though that hasn't happened, Lopez says just about every other freedom has been revoked.

"I know it's jail, and I understand he's not at the Four Seasons. Still there are other inmates in there who have committed mass murders, who have killed informants, have obstructed justice and they aren't put through the same type of stringent conditions he is in," said Lopez.

The special prisoner designation is good for one year, then prosecutors must petition the U.S. Attorney General if they want it to continue for another 12 months. There is no public record of prisoners who are placed in these harsh conditions so it is unclear whether the federal prosecutor in Chicago, Patrick Fitzgerald, has renewed his Calabrese request. Fitzgerald's spokesman declines to comment.

Thanks to Chuck Goudie

Thursday, November 18, 2010

Reviewing the History Behind Famous Mob Nicknames

A colorful nickname comes with the job when you are a reputed Chicago crime boss, often whether you like it or not.

The trial of Michael "Big Mike" Sarno is getting underway in federal court in Chicago, with prosecutors arguing that the 6-foot-3-inch, 300-pound Sarno wasn't just imposing because of his size, but because he was the big man behind a violent mob jewelry theft and illegal gambling ring.

Imposing aliases have captivated the public and aggravated mobsters since the days of Al "Scarface" Capone, a fact that apparently was too much for one prospective juror. The juror, a suburban businessman, told U.S. Judge Ronald Guzman he would be biased by the repeated use of nicknames during the trial. So Guzman sent him home.

Defense attorney Michael Gillespie said he's not worried about his large client's nickname, which is pretty mild for an alleged mobster. "There's nothing nefarious about that nickname," Gillespie said. "But I do think (federal prosecutors) put the nickname in there for a reason. They could've just charged him as 'Michael Sarno.'"

A big appetite is a more benign way to get a pet name than, say, Anthony "Joe Batters" Accardo, the former reputed mob kingpin who earned his sobriquet for beating people with baseball bats. The story goes that after hearing of one such beating, Capone himself said, "That guy, (Accardo), he's a real Joe Batters." Throughout his life, everyone called Accardo "Joe," said Gus Russo, author of "The Outfit."

"They started to call (Accardo) 'Big Tuna' in the press, but no one ever called him that," said Russo. Mobsters' nicknames often were generated by the press or FBI agents eager to antagonize their targets, a favorite tactic of longtime Chicago FBI chief William Roemer. "(Roemer) was the one that referred to (Outfit Vegas boss) Anthony Spilotro as 'The Ant,'" Russo said. "That was (Roemer's) way of infuriating these guys."

Attorney Joseph Lopez said the press hung the nickname "The Breeze" on his loan-sharking client Frank Calabrese Sr. "That's a media nickname. No one ever called him that. He was 'Cheech,'" said Lopez. "Cheech is 'Frank' in Italian. It's a neighborhood thing. These guys get their nicknames like anyone else, as young kids in the neighborhood."

Of course, former Lopez client Anthony "The Hatchet" Chiaramonti was known for attacking juice-loan delinquents with a hatchet, the attorney acknowledged. "Hatchet earned that nickname," said Lopez, noting that jurors heard Chiaramonti strangle an informant — who was wearing a wire at the time — during a trial in the 1990s. "I called him Tony."

When reputed mobsters deny, or take offense to, their nicknames, it may be because they haven't heard them until someone plays them tapes of a wiretap. Wiretaps in Sarno's case will show that some of his lieutenants often called their boss "Fat Ass" behind his back. Not a good career move in most jobs, and a potentially deadly one in The Outfit.

"These are not guys you might want to call by a nickname to their face," said Markus Funk, one of the lead prosecutors in the Family Secrets trial that featured defendants Frank "the German" Schweihs; Paul "the Indian" Schiro; and Joseph Lombardo, who was listed with three nicknames: "the Clown," "Lumbo" and "Lumpy."

U.S. attorney's office policy is to include nicknames in an indictment only when the monikers are used in wiretaps or correspondence, said former prosecutor Chris Gair. However, modern mobsters are so paranoid about wiretaps and FBI surveillance that they seldom even risk using a nickname, Gair said. Their coded euphemisms get so vague, often it's clear the mobsters can barely carry on a conversation.

"Instead of a name or a nickname, they'll say something like 'You know that guy down by Grand and Ogden (avenues)?' 'You mean the guy who stands outside the grocery?' And the circumlocutions are so obscure, it's obvious they don't know who the other guy's talking about," Gair said. "But they're so paranoid, they still won't use a name."

Gair, for the record, said he seldom used nicknames in cases he handled.

"I would almost never put (nicknames) in an indictment. FBI agents and IRS guys have a nickname for everybody," he said. "For most guys, they use nicknames the way you or I do among friends."

Thanks to Andy Grimm

More Mob Nicknames

Saturday, November 13, 2010

Opening Statements Made in Chicago Mob Bombing Trial

Federal prosecutors say an explosion at the building housing a video poker-machine distributor is at the heart of the trial of a reputed mob boss and his alleged cohorts.

In an opening statement Friday, Assistant U.S. Attorney Michael Donovan says Michael "Big Mike" Sarno and his alleged crew wanted to send a message to C&S Coin Operated Amusements not to encroach on Sarno's turf.

Prosecutors say as a result of the 52-year-old Sarno 's orders to bomb the Berwyn offices of the video game distributor in 2003, the company's Berwyn offices were destroyed.

Sarno and four others have pleaded not guilty to federal racketeering charges.

Donovan says he will make the case against Sarno and his four co-defendants with evidence from witnesses, wiretaps and a bug planted in a Cicero pawn shop.

The defense will give opening statements Monday.

Thanks to KWQC

Thursday, November 11, 2010

Potential Juror Scared Off by Mob Nicknames

A potential juror has been dismissed in a reputed mobster's trial in Chicago after expressing unease at the defendants' nicknames.

Jury selection in the racketeering trial of Michael "The Large Guy" Sarno and four others began today with 60 would-be jurors packing a federal courtroom.

No one in court mentioned allegations of mob links. But the excused juror told U.S. District Judge Ronald Guzman he saw nicknames for some defendants on a document that flashed on a courtroom monitor.

The investment banker says the implications of the nicknames would influence his ability to be impartial. Guzman then dismissed him.

Picking 12 jurors and four alternates could take days. The trial is expected to last a month.

Thanks to WGN

Wednesday, November 10, 2010

Large Guy Trial Starts

An unusual organized crime case began Wednesday in Chicago federal court. Prosecutors say there was an alliance between the Outfit and the Outlaws. In this Intelligence Report: Why is this considered a "large" case for the government?

The Chicago Outfit has always been an insular organization, top hoodlums usually unwilling to welcome other criminal groups to the fold. So this alliance that federal prosecutors say was forged between the Outfit and the Outlaws motorcycle gang is considered unique in all of mobdom.

The largest part of this five-defendant case walked into the Dirksen Federal Building Wednesday predicting victory. Michael Sarno, 52, known in mob circles as "the Large Guy," is a convicted west suburban rackets boss now on trial for allegedly ordering the 2003 firebombing of a Berwyn business that was competing against the mob's illegal video poker trade.

Standing trial with Sarno are 86-year-old Samuel Volpendesto, his son, Anthony, Mark Polchan, an admitted member of the Outlaws biker gang, and Casey Szaflarski, who allegedly ran illegal gambling operations.

According to the indictment, Sarno oversaw the Outfit-Outlaw joint venture and received a cut of the illegal wagering profits.

"I think that case provides a perfect illustration of why the Outfit is still dangerous and shouldn't be counted out," said T. Marcus Funk, former federal prosecutor. "Forming an alliance like that, being adaptable, being able to change with the circumstances, and also using being able to use violence when necessary. It may not be something done on a daily basis like it was in the 50s, but violence is still a tool for the Outfit."

The case took shape in 2008 when FBI agents raided several Outlaws clubhouses, seizing weapons, bulletproof vests and police badges-- at the same time executing search warrants on Sarno's suburban home.

As a budding hoodlum, Sarno once tipped the scales at about 400 pounds, and at that time went by the nickname "Fat Boy."

Even though he appears to have dropped a few pounds, by whatever mob moniker Wednesday, the issue of nicknames was a factor in jury selection. Several prospective jurors were dismissed after saying mob nicknames might cause them to be prejudiced against the defendants.

Several casino employees were also dismissed. Six jurors were seated to hear the case.

The mob trial will be off Thursday for federal Veterans Day and jury selection resumes on Friday morning. It is expected to last about three weeks.

Thanks to Chuck Goudie and Ann Pistone

Tuesday, November 09, 2010

Peeking Inside Chicago's Modern Day Mob

The trial of a reputed mob boss known for his wide girth and alleged penchant for violence will offer a peek into the inner workings of Chicago-area organized crime, laid low by prosecutions that sent older mobsters to prison for life.

Michael “The Large Guy” Sarno, whose racketeering trial starts Wednesday in Chicago, is considered — at the relatively young age of 52 — a different breed of mobster, someone whose talents as an enforcer normally would not have translated into a top mob job.

“I would say he is the perfect example of the new face of the mob,” said Art Bilek, a one-time mob investigator at the Cook County State’s attorney’s office. “He has street smarts — he’s not a dope. What he simply doesn’t have is the intelligence some of the earlier guys had.”

That goes to show how far the mob has fallen, he and other law enforcement experts said.

The 2007 Family Secrets trial, the biggest such trial in Chicago in decades, was a body blow to the Chicago-area mob, also known as the Chicago Outfit. It ended in life sentences for reputed bosses James Marcello, Frank Calabrese Sr. and Joseph “Joey the Clown” Lombardo.

With aging kingpins behind bars and others dying, a weakened Outfit has scaled back a network that in its heyday, around 1970, encompassed operations ranging from prostitution and drugs to multimillion-dollar scams involving corrupt unions or Las Vegas casinos. But racketeering laws designed to target organized crime, aggressive federal prosecutors and competition from big-city street gangs or biker syndicates have severely cut into mob-associated operations. Not surprisingly, mobster numbers are down.

There are now fewer than 100 people formally initiated into the Chicago-area mob compared with more than 200 ‘made men’ around 1970, estimated Scott Burnstein, co-author of a book on the Family Secrets trial.

In Chicago, the mob now focuses more heavily on running illegal video gaming, with approximately 25,000 machines in bars and restaurants, generating millions of dollars in revenue, according to some estimates.

It’s leaders allegedly include Sarno, who weighed as much as 300 pounds and was known for using his bulk to collect mob gambling debts as an enforcer. Bilek says he suspects Sarno may have taken over operations in the city’s western suburbs from one of the imprisoned bosses.

Sarno’s defense attorney, Michael Gillespie, said allegations his client is linked to the mob are “fanciful.”

“The associations he has are with his family — his mom and dad,” Gillespie said Tuesday.

Whatever the case, it is impossible to know just where Sarno would fit in. That’s partly because the mob’s old pyramid structure is coming undone and true leaders are eager to maintain a low profile, even endeavoring to keep violence at a minimum, Bilek said.

Burnstein said there are reasons to question what would be the extent of Sarno’s power. For one, mob bosses want to see crime organizations they built up over decades continue after their deaths, so it’s likely more savvy mobsters also are being promoted. “I don’t think it’s quite fair to say Sarno’s the new face of the mob, therefore the mob is dead because he’s an idiot,” Burnstein said. “If he is the new power, I agree it wouldn’t bode well. But I’m sure there are other competent mobsters who aren’t just thugs.”

Sarno is accused of ordering co-defendants Mark Polchan and Sam Volpendesto to set off a bomb that wrecked the offices of a gaming company in Berwyn, C&S Coin Amusements. The aim, say prosecutors, was to send a message: Stop horning in on a profitable mob business.

The indictment alleges the enterprise Sarno was a part of also was responsible for burglaries and jewel thefts. The armed robbery of the Marry Me Jewelry Store in LaGrange Park netted nearly $650,000-worth of jewelry and other valuables, according to the indictment.

Sarno, Volpendesto and Polchan all have pleaded not guilty to racketeering and other related charges.

Polchan’s attorney, Damon Cheronis, would only say Tuesday that trial observers will see “a different picture painted than the one painted by the government.” Volpendesto’s lawyer, Michael Mann, declined to comment.

Thanks to LCN

The Chicago Mob's Underground Tunnel System

It was The Roaring Twenties. Prohibition was the law of the land. But in Chicago, that didn't seem to matter.

The city was wide open and just plain wild, nowhere more so than in the notorious levee district, now Chicago's South Loop. The only surviving building from that vice-filled era now houses Blue Star Auto Parts. Back then, it was the Cullerton Hotel.

"This was a very respectable hotel early on. But by 1900, it had taken on a very unsavory character. In the basement, there were illegal gambling games going on. Upstairs, it has become a brothel. And it continued as a brothel through the 1920s," said Rich Lindberg, author and historian.

It was a very popular brothel, said Lindberg, an authority on this unseemly side of Chicago history. "It was a place where men came to consort with prostitutes, to wager. There was likely a dope den at one time," said Lindberg. "In the heyday of the 1910s, 1920s, Michigan Ave., State St. [there] were a lot of hotels that catered to high-class vice, high-class bordellos."

It was a place to visit, but you didn't want to get caught there. So the mobsters had a system.

"Usually a clerk on the first floor would ring a bell, and the patrons would make a fast escape," Lindberg said.

Deep below the hotel was a series of secret tunnels, an elaborate 25-mile system. Today, you can still see bricked-up traces of one of the numerous gangster getaways. "To gain protection from raids, they would come down here and they would escape," said Lindberg.

Nowhere was Chicago's underworld underground more evident than at the legendary Green Mill Lounge on the North Side. "Well, it was a real fancy joint years ago," said Dave Jemilo, Green Mill owner. And it was also the favorite hangout of Chicago's most infamous mobster.

"This booth here is where Al Capone used to sit. It was his favorite booth because he could see the front door and the side door without his back being to either one. So that's why he would always sit here," said Jemilo.

He could also see a trap door behind the bar. It led to the epicenter of a thriving bootleg and smuggling operation. There were miles of underground tunnels, running to the nearby Aragon Ballroom as well as the Uptown and Riviera theaters. It was a massive complex of both tunnels and private rooms, top-secret rooms where the parties were said to be out of control.

"Up here you get the liquor in a coffee cup or something. Down there, you know, anything goes! These guys wanna have stuff that you can't even do now. And you have parties down there and you got raided or something, you don't come up the trap door to get out, you go through the tunnels, and you could be on the street walking with your girl on your arm, and the coppers says 'Hey were you in the Green Mill?' 'No I was at the Riviera Theater seeing a movie with my girl. Leave us alone,'" said Jemilo.

Thanks to Hosea Sanders

Monday, November 08, 2010

Genovese Crime Family Control of New York's Construction Projects Detailed in Court

An Irish contractor delivered a detailed account of the Italian mafia's involvement in New York's construction industry in a Manhattan courtroom last month.

James Murray, the immigrant builder, told the court how he climbed the ranks to success with help from the mob before crashing and losing everything. Murray addressed the court in a low voice as federal prosecutor Lisa Zornberg questioned him according to the Village Voice.

Murray had immigrated from Ireland in the prime of his youth twenty years ago.

"I was looking for work. I had an argument with my father, and I came to the States."
He dropped out of school at 13 the reason being, he told the court he had a difficulty reading. When he got to New York he started work as a carpenter before he started up his own business renovating homes. A fellow Irish man then helped him develop his modest business into a bigger operation.

To get the bigger jobs he signed up with the New York City District Council of Carpenters, pledging to build his projects with the union labor: "You can't work unless you're union," he reminded the court.

Things were going well for Murray, who called his company “On Par Contracting” and soon had 700 workers on the pay roll courtesy of the union and some shady background figures. Their extensive list of projects included the Times Square Tower, high-rises, hospitals and university projects. We were everywhere," he said. "We were all over the city, all over the tri-state area." And money was rolling in for the Irish firm.

By ignoring union agreements he had signed he increased profits by employing fellow Irish men illegally, who were just off the boat. He payed these young men $25 to $40 an hour as opposed to the $75 demanded by union workers. "We didn't pay the benefits," he said. "We paid the guys in cash."

This gave the company the upper hand when pricing jobs. “You could be the low bidder," he said. Construction expenses, he said, run roughly "one-third materials, two-thirds labor." It was "a big cost savings."

Murray also bribed every union official he could, shop stewards for leaving workers off the books, business agents were paid not to come snooping and the top union leaders were paid to keep everyone in line. More than $100,000 was given to District Council chief Michael Forde."He would help me get the shop stewards," explained Murray. The president of the Local 608 union, John Greaney got cash and tickets to the Super Bowl.

All the corruption and bribery took place under the eyes of the Genovese crime family. Which has had a significant stronghold over the city's building trade for decades.

One of the mob's biggest liaison to the construction business Joseph Rudy Olivieri proved to be Murray's right hand man. Olivieri worked as the head of the Association of Wall-Ceiling and Carpentry Industries of New York. The court heard that the pair looked after each other.

Murray loaned Olivieri hundreds of thousands of dollars but in return he ran interference when a court-appointed investigator of the union Walter Mack started raising questions about Murray's success.

In 2005 the same court official subpoenaed Murry to testify. When Mack ordered for the company to be shut down, Murray called Olivieri immediately:"I called Joe Olivieri right away," said Murray. "He said, 'Give me a couple minutes."

He cobbled together a rescue plan to appease Mack and the company stayed in business. When Murray was asked if he continues to cheat he simply replied “Yes”

The sordid relationships between Murray, the union and the Italian mafia handlers were a long kept secret. But Walter Mack's persistence and the follow up investigation by prosecutor Zornberg nailed Murray.

Murray's first indictment came in 2006 on fraud and money-laundering charges. He proceeded to flee to Ireland. Two years later after he was persuaded to return to the U.S. after the feds seized his extensive farm and other properties. He plead guilty and agreed to provide the evidence that led to the conviction of Olivieri, Forde, Greaney and seven others.

Olivieri was found guilty of perjury. He is currently out on a $500,000 bond and is facing up to five years in prison plus future prosecution for conspiracy and fraud.

FBI Assistant Director-in-Charge Janice K. Fedarcyk explained the necessity of the case. "Olivieri attempted, but failed, to mask his association with the Genovese Organized Crime Family and a dishonorable union contractor," she said. "The guilty verdict represents a dual victory: weeding out corruption in the New York City Carpenters Union and removing a crooked trustee of the benefit funds."

Thanks to Molly Muldoon

Saturday, November 06, 2010

Anthony Volpendesto Tossed from Court While Representing Himself

A federal judge ordered a defendant in a Chicago mob trial removed from the courtroom Thursday morning after the man threatened to have all the attorneys disbarred and loudly noted he did "not consent to any of these proceedings."

The disruption happened in the case of alleged Cicero mob boss Michael Sarno, who will soon stand trial with four other men, including Anthony Volpendesto, who created the disturbance and has been custody since his arrest.

Volpendesto is charged with racketeering for allegedly being part of a jewelry store robbery crew with ties to organized crime.

Volpendesto, who is not a lawyer, has filed numerous legal motions in the case on his own, which have advanced unique legal theories concerning his innocence or how the court has no jurisdiction over him. His attempts so far have not been successful.

Volpendesto referred to himself in court Thursday as "the executor of the Anthony Volpendesto estate" and repeatedly interrupted U.S. District Court Judge Ronald Guzman during a status hearing.

Volpendesto warned all attorneys in the room at one point, "either dismiss or disbar."

"I have no further business with this court," he said at another point, but continued talking anyway.

"I do not consent to any of these proceedings," he said, apparently unaware that his consent is not required.

The judge had deputy U.S. Marshals take Volpendesto away. He could still be heard chattering away in a holding cell as the door to the area opened and closed.

Volpendesto's talkativeness may come back to haunt him and some of the men on trial with him. He apparently made phone calls from jail after he was arrested for one of the jewelry store robberies, and prosecutors had indicated they will introduce recordings of some of those calls at trial.

Also on trial is Volpendesto's 87-year-old father, Sam, who is accused of helping bomb a video poker business in Berwyn in 2003 that was competing with a mob-sanctioned business. Prosecutors say Sam Volpendesto ran a Cicero house of prostitution and once had a suspected government cooperator beaten with a baseball bat, but he hasn't been convicted of either crime.

Guzman said he planned on having the younger Volpendesto brought over to the courtroom on Friday to remind him of the rules of conduct in court and work to obtain his cooperation during trial. If he refuses to come, deputy U.S. Marshals were ordered to use reasonable force to bring him.

Thanks to FoxChicago

Boardwalk Empire Does Not Show the Real Uncle Al Capone

Deirdre Marie Capone isn't a TV critic, but she has some strong views on Stephen Graham's take on her great uncle, Al Capone, in HBO's "Boardwalk Empire."

"I have watched it," she tells me in a phone interview from her Florida home. "I think that Stephen Graham job does a great job. I don't like the character that he is playing at all."

"They had him cooking with his mother, the other night, in New Jersey. That never happened. They have him kidnapping people in New Jersey, which never happened.

"It's one more thing where they take his name and they create a character that is not really him," she says. "There's nothing I can do about it."


Well, there is something she can do, and Capone, the granddaughter of Al's older brother, Ralph, is telling her family's story in the new book "Uncle Al Capone."

It's a family story, including her memories of her great uncle (he died when she was 7). "I had my grandfather until I was 45, and I had Al's younger sister until I was 54, and I was very very close to them."

Her goal is to tell the story of a different Al Capone. "He would get down on the floor like a big teddy bear," she recalls. "He loved children."

It even includes recipes for some of her great uncle's Italian favorites.

She's not trying to say that Capone was just misunderstood. But she's still defensive about his line of work, saying there were few opportunities for Italian immigrants when he arrived in the U.S.

"There was no opportunity to be a doctor or a lawyer or a businessman," she says. "He could make money for his family.

"At one point, he ran over 350 speakeasies in the city of Chicago and he didn't have a fax machine and a cellphone... The only thing they could get him on is tax evasion, everything else is alleged."

The self-published book came out about a week ago, and is available from on-line bookshops, like Amazon. "I went round and round and round with publishers," she said, comparing that industry to the recording industry of a few years ago, out of touch with technological change.

That's why she went the self-publishing route, she tells me, although she's open to signing a publishing deal now that the book is out.

The 70-year-old Deirdre, by the way, is publishing the book under the name she was born with. "That is the name on my baptismal certificate," she says. But she's not revealing her married name, trying to hold on to a little anonymity for a while.

"It's going to be very hard for me to keep it private," she says. "It's going to come out."

But it's worth it, she says, since she had to tell this story.

"If I don't, who's going to?" she asks.

Thanks to Tim Cuprisin

Tuesday, November 02, 2010

"Mama Versus the Mob" in Prohibition-era Chicago

Watch a couple episodes of “The Sopranos” or a few Martin Scorsese movies, and it becomes clear that rivaling mob bosses are a hallmark of the gangster genre. One thing these bosses almost always have in common is they’re male.

Vancouver writer Gary Corbin decided to present a new twist on this familiar formula by having women vie for control of the Chicago organized crime scene in his interactive murder mystery dinner show, “Mama Versus the Mob.”

Magenta Theater will present Corbin’s work Saturday and the following week at Rosemary Cafe in downtown Vancouver. Tickets to the show include a multicourse Italian dinner prepared by Rosemary Cafe owner Cheryl Cameron and her staff, as well as live music. Hadas Cassorla, who plays crooner Lola Falanova in the show, will sing Gershwin tunes accompanied by Steve Goodwin on piano.

Corbin’s show is set in Prohibition-era Chicago, and centers on dueling bosses “Smart” Alex Caponi (based on real-life gangster Al Capone) and George “Bugsy” Moroni (inspired by Bugs Moran and played here by Goodwin), as well as the women in their lives. Especially central is “Mama” Mia Mangia, Caponi’s half-sister who is secretly dating Moroni. Together she and Caponi run a restaurant and nightclub, and Mangia begins clamoring for more power.

The other women in the show, having recently achieved the right to vote and currently enjoying the freedom of the flapper era, also start to hunger for control of the mob. When a main character dies, everyone — women and men — jockeys for position.

Corbin said the show is really a comedic battle of the sexes.

Though Corbin has acted in murder mystery shows in the past, this is the first he has written. It’s also a first for Magenta. The theater group has done staged readings before at Rosemary Cafe, but never a full show with a themed dinner menu. Magenta plans to do another murder mystery dinner show at Rosemary in August 2011.

“I think it’s going to be a lot of fun,” said Cameron, who has put together a special “Mama Versus the Mob” menu featuring Parmesan bread sticks, Caesar salad, three-cheese ziti with sausage or vegetarian marinara sauce and a dessert of biscotti accompanied by limoncello- and blueberry-topped ice cream.

The show is capped at 40 guests, so it will be an intimate, participatory experience, said director Bonnie Littleton, who lives outside Camas. Patrons will mingle and dine with the characters and be part of the action. At the end, audience members will decide not only who the murderer is but also who should take control of the Chicago mob scene.

“The audience will really feel like they’re part of it,” Littleton said.

Among the characters the audience will get to know is Mangia, the show’s titular Mama, played by Vancouver resident and Magenta regular Andrea K. Adams. She is one of eight performers from the greater Vancouver-Portland area featured in the program.

The show is scripted, but parts are improvised because of the audience participation factor. Several performers have experience with improvisation through Magenta or ComedySportz Portland, but it’s new to Adams. “You just really have to know your character inside and out, you have to have a backstory, and you can’t waver,” she said.

Co-star Martin Slagle, who plays Caponi, has participated in Magenta Improv Theater for about a year, but this will be his first time doing a scripted play-improvisation hybrid. “It’s something new and different, which I’m always excited about,” said Slagle, a Vancouver resident.

Slagle is most looking forward to seeing how the audience interacts with Caponi, the boss of Chicago’s South Side. “The audience interaction is going to be fantastic,” he said.

Thanks to Mary Ann Albright

Monday, November 01, 2010

Salvatore Vitale Murders 11, Serves Only 7 Years in Prison

A Mafia boss who turned informant on one of New York's notorious five families - and pleaded guilty to 11 murders - has been sensationally sentenced to 'time served' today.

Salvatore Vitale, 63, immediately cooperated with the FBI and prosecutors after his arrest and imprisonment in January 2003.

He identified more than 500 gangsters and helped convict more than 50 - including his brother-in-law and former Bonanno chief Joseph Massino.

Today's sentence will mean that Vitale will have served around 18 months for each of his 11 murders.

It is expected that he will immediately enter the witness protection programme
.
'Quite simply, Vitale has likely been the most important cooperator in the history of law enforcement efforts to prosecute the Mafia,' said Judge Nicholas G. Garaufis, of United States District Court in Brooklyn, when he meted out the sentence today.

Judge Garaufis noted that the criminal justice system was 'dependent on the cooperation of criminals in the prosecution of other criminals'. He added: 'This cooperation does not come without a cost.' The judge noted that he was under no illusion that Vitale had become a government witness for any reason other than self-preservation, noting that he did so only when he realised that the crime family had come to see him as a liability.

The judge said: 'It is unfortunate that law enforcement must, of necessity, obtain the cooperation of felons to address the pernicious crimes committed by organised crime,' the judge said. 'But without the benefit of cooperating witnesses like the defendant, the government’s ability to prosecute the secretive and rule-bound world of organised crime would be greatly impaired.'

In October 2004, information he gave to federal officers led to the discovery of three bodies in Ozone Park, Queens.

Vitale’s lawyers, Kenneth Murphy and Brian Waller, had pushed for the sentence to be 'time served'.
Vitale had been facing life in prison.

In a bid to put Vitale away for good, prosecutor Greg Andres read aloud letters sent to the judge from the wife and daughter of one of the victims. Robert Perrino was a Bonanno associate who was the superintendent of deliveries at The New York Post and who was slain in 1992. Vitale ordered the killing based on the fear that Perrino might cooperate with the authorities. Perrino’s body was not found until Vitale himself began cooperating with police. Perrino'd widow Rosalie wrote: 'As a result of Salvatore Vitale’s criminal inhuman behaviour, my grandson never knew his grandfather, and he and our granddaughter have grown up without this special man. 'Salvatore Vitale caused my own life to unravel and the colour in my life to drain away.'

Vitale alternately stared at the table before him and watched the judge as Mr Andres read the letter.
At the end of the hearing, the judge asked the people in the gallery to remain seated so deputy United States marshals could escort Vitale out of the courtroom. He left through the courtroom’s rear door, beside the judge’s bench, and did not look back.

It is not the first time Mafia informants have been given lesser sentences for information that leads to the arrest and prosecution of their bosses. Salvatore Gravano, an underboss for the Gambino family known as 'Sammy the Bull', admitted to 19 murders in 1991 in exchange for a lesser sentence and served just five years.
As part of his testimony, notorious gangster John Gotti was jailed for life.

Vitale, wearing a blue suit and silver pattered tie, twice dabbed tears from his eyes during the court proceeding - and exhaled sharply just before the judge read out the sentence.

The former paratrooper - known as Good Looking Sal' during his three decades committing countless crimes on behalf of the Bonanno family - read from a statement where he apologised to the families of his victims.
He said: 'I would say to them that I pray daily for my victims’ souls and I’m truly sorry. I stand in front of you, your honour, ashamed of the life I used to live. 'I disgraced my father’s name, my name, my sons’ name.'

Vitale operated at the highest levels of organised crime while a member of La Cosa Nostra, and knew many of the Bonanno secrets - including quite literally where bodies were buried.

Thursday, October 28, 2010

County Legislator, Frank Sparaco, Denies Organized Crime Ties

Rockland County Legislator Frank Sparaco on Tuesday vehemently denied any connection to organized crime and accused the Democratic leadership in Albany of being behind media reports about mob ties among his campaign donors.

"They have attempted to plant in the media the despicable and preposterous idea that somehow I am linked to organized crime," said Sparaco, who is running for the Assembly. "I wish to make the following perfectly clear: I vehemently deny any knowledge that political contributions to my campaign came from companies with alleged ties to organize crime," he said at a news conference outside Rockland Republican Party headquarters off Route 304.

He is running on the Republican, Conservative and Working Families lines to unseat 94th District Assemblyman Kenneth Zebrowski, who is on the Democratic and Independence lines. The election is Tuesday.

The news conference followed Saturday's publication of an article in The Journal News about Sparaco's campaign donations.

An investigation by the newspaper of county, state and federal records showed that at least $11,500 from reputed Colombo crime family members and associates and their businesses went into Sparaco's campaign coffers since 2007, including donations to his county Legislature and Assembly races.

"There's not one contributor who has been proven guilty of one act of organized crime," he said.

He would not identify the Democratic leaders he blamed for the reports or answer questions after his statement. "This type of insidious racial politics" has been seen before in attacks against other politicians, he said, citing Geraldine Ferraro, Rudy Giuliani and Mario Cuomo. "I will not stand for it," Sparaco said. "I will bring an independent voice to Albany, and there are those that are petrified of that."

He said he had no relationship with his biological father, Frank Sparaco Jr., a reputed Colombo member who pleaded guilty to federal murder charges in 1993 and was sentenced to prison for 24 years. The younger Sparaco said his father abandoned his mother when he was 9 months old.

"In this country, unlike others, we do not tell people to live in the shadows and stay on the margins of society because of what family they come from," Sparaco said. "I am standing up today for the millions of children across this country that are a product of a broken home. Are we worth less? I say no."

Rockland County Republican Party Chairman Vincent Reda backed his candidate.

"We stand behind Frank Sparaco and we reject the media story orchestrated by the Albany Democrats, who have increased taxes by $14 billion over the past two years and chased families and small businesses out of the state," Reda said. "We can no longer afford that."

Reda said the Democrats he was referring to were those cited in an Oct. 21 report by the state inspector general. The report found Senate leaders, including Senate Democratic Leader John Sampson, D-Brooklyn, and Gov. David Paterson and Assembly Speaker Sheldon Silver, D-Manhattan, complicit in steering a contract for video lottery terminals at Aqueduct Race Track in Queens to Aqueduct Entertainment Group. In exchange, the report said, lobbyists and AEG officials pumped more than $100,000 into lawmakers' campaign coffers.

Requests for comment from the state Democratic Committee were not returned Tuesday.

"My candidacy is clearly a threat to those that represent the special interests, the status quo in Albany," said Sparaco, who lives in Valley Cottage. "So much so that they have generated these rumors to deter the good people of Rockland County from achieving the reform that they deserve ."

Diane Holland of West Nyack, who attended the event, said she would continue to support Sparaco.

"Frank is a man of integrity," Holland said. "I've known him for many years. ... He would stand behind me and I would stand behind him."

Thanks to Laura Incalcaterra

Wednesday, October 20, 2010

Gangsters of Harlem

For the first time ever, author Ron Chepesiuk chronicles the little known history of organized crime in Harlem. African American organized crime has had as significant an impact on its constituent community as Italian, Jewish, and Irish organized crime has had on theirs. Gangsters are every bit as colorful, intriguing, and powerful as Al Capone and Lucky Luciano, and have a fascinating history in gambling, prostitution, and drug dealing. In this riveting, vivid documentation, Chepesiuk tells the little-known story of organized crime in Harlem through in-depth profiles of the major gangs and motley gangsters whose exploits have made them legends.

Tuesday, October 19, 2010

Joseph "Rudy" Olivieri, Reputed Genovese Crime Family Soldier, to Face Trial as Alleged Union Contact Person for the Mob

The mob-linked head of a powerful contractors group goes on trial Tuesday in a case expected to dramatically demonstrate organized crime's grip on the city's construction unions.

Joseph (Rudy) Olivieri is the last of nine contracting bigwigs to face judgment in a case that's seen District Council of Carpenters chief Michael Forde and seven cohorts plead guilty this year.

Authorities say Olivieri, 55, is a Genovese crime family soldier who headed the Association of Wall-Ceiling & Carpentry Industries. The group represents 160 contractors who employ thousands of workers.

The trial centers on Olivieri's group, which is a force in several unions, and his role in a plot to steal millions from the carpenters' benefit funds.

Prosecutors say he took orders from mob capo Louis Moscatiello, who ran the crime family's construction rackets in the city. Moscatiello was set to testify against Olivieri but died last year in prison while serving time for a 2004 racketeering case.

Prosecutors have massed a parade of mobsters, ex-union officials, crooked contractors and FBI agents to show how the mob infests unions, rips off their benefit funds and pockets kickbacks to let contractors use cheap, nonunion labor.

Reputed Genovese associate Joseph Rizzuto, ex-business agent of Operating Engineers Local 14, has fingered Olivieri as the mob's "contact person" in the union in the late 1990s. Rizzuto is set to tell the jury how Olivieri "threatened" him and summoned him to a meeting at a LaGuardia Airport hotel after he balked at putting Moscatiello's pick in a top union post.

Jurors also are expected to hear a 2004 recording of capo John (Buster) Ardito and several wiseguys identifying Olivieri as "a friend of Louis" with ties to longtime labor racketeer Vincent DiNapoli.

At a hearing yesterday, defense lawyer Brian Gardner tried to bar prosecutors from using sworn testimony Olivieri gave in a related civil case without warning him he was a criminal target.

Manhattan Federal Judge Victor Marrero decided Olivieri will be tried first only for perjury, one of five counts against him.

Thanks to Brian Kates

Sam Giancana's Life Could become TV Series

Legendary Chicago mobster Sam Giancana could soon get the TV series treatment. Ted Field and his Radar Pictures shingle have pacted with Dimitri Logothetis and Nicholas Celozzi to turn Giancana's life story into a drama. Radar, Logothetis and Celozzi are looking first for international financing and distribution before turning their attention to finding a U.S. partner. A deal is imminent, the trio said.

Giancana ran the Chicago mob -- known as "the Outfit" -- from the 1950s to the 1970s, when he was forced out of power and exiled to Mexico. Upon his return, Giancana became an informant for the FBI but was assassinated in his home. Giancana's murder has never been solved.

Giancana was also a widower raising three daughters. Celozzi secured Giancana's life rights from daughters Bonnie and Francine, who also happen to be Celozzi's cousins.

Logothetis and Celozzi will write and exec produce. The duo's credits include recent Lifetime telepic "The Lost Angel."

Logothetis' other credits include "Code Name Eternity," "Dark Realm" and "Stephen King's Sleepwalkers." He also directed HBO's "Body Shot." Celozzi has written indie features such as "Quiet Kill" and "A Fine Step."

Giancana story also hits home for Field, who formerly owned the Chicago Sun-Times, as well as Kaiser Broadcasting and Interscope Communications. As a producer, Field was behind "The Invention of Lying," "Jumanji," "The Last Samurai" and "Runaway Bride."

Thanks to Michael Schneider

Sunday, October 17, 2010

Armenian Organized Crime Mobsters Target Medicare Scams Along with Credit Card Fraud, Identity Theft and Mortgage Fraud

Endeavor Diagnostics billed itself as a thriving medical laboratory that performed more than $1 million of work for Medicare patients.

When two FBI agents went to inspect it, they found an empty San Fernando Valley office with only a desk and a fax machine. There were no workers, no patients and no biological samples.

Behind the door of the facade were signs tying the operation to a sprawling network of phantom enterprises allegedly set up by Armenian mobsters to try to defraud Medicare of $163 million for services never provided.

Dozens of arrests around the country Wednesday highlighted a criminal demographic rarely seen, but one that officials say is rooted in California and growing in reach and sophistication.

"They are victimizing our systems, they are victimizing business, they are victimizing private citizens," said Glendale police Lt. Steve Davey, who heads up a task force tackling Eurasian crime. "Their ultimate goal is oligarchy - to see if they can infiltrate government."

Few criminal groups can match the sophistication of Armenian scammers, who developed an uncanny savvy for probing weaknesses in government systems and were hailed as heroes when they exploited their Soviet republic homeland, authorities said. They have been known for devising complex white collar schemes such as credit card fraud, identity theft and mortgage fraud.

Indictments released Wednesday in Los Angeles, New York and elsewhere show how various cells, largely working on their own but often sharing techniques, set up fraudulent medical businesses using stolen physician identities. After becoming licensed Medicare providers and submitting claims, the fake office billed the government, which would pay money to fraudulent bank accounts. Many claims were bogus but sometimes criminals would provide a small service then submit an inflated bill.

In Los Angeles, for example, they would provide a scooter worth about $1,000, but profit after billing Medicare for a top-end electric wheelchair worth six times as much, FBI Supervisory Special Agent Matt McLaughlin said.

The groups have been known to recruit people with a nominal sum to become a fake patient, then bill Medicare for services supposedly rendered.

"It's great camouflage," McLaughlin said. "We have to deconstruct each element to prove a fraud."

Prosecutors also allege that conspirators paid corrupt doctors to carry out unnecessary testing on purported accident victims, then charged the government for the treatment.

In all, $163 million in fraudulent bills were submitted, with Medicare actually paying out $35 million, according to the documents.

The complex operation was allegedly overseen by Armen Kazarian, who melded into Glendale's large Armenian population after arriving as an asylum seeker in 1996 and mostly stayed out of view of the police. Kazarian, 46, who is in custody in Los Angeles, is known by the Soviet term "thief in law," which is the rough equivalent of a "godfather." Authorities say it is only the second time such a figure, known in Russian as a "vor v zakone," has been arrested in the U.S.

Nearly half of Glendale's 200,000 residents have an Armenian background. Following the 1915 massacre of Armenians in Turkey, a diaspora spread around the globe, with many arriving in Fresno and the East Coast.

Successive waves of immigrants followed major geopolitical upheavals, including the 1979 Islamic Revolution in Iran, and a small Armenian community in Hollywood quickly expanded to Glendale and the surrounding areas

In the mid-1980s, sons of Armenian immigrants from the Hollywood area banded together to form a gang called Armenian Power to protect themselves against Hispanic gangs. The community initially saw members as vigilante protectors but the group soon morphed into a street gang like any other, carrying out drive-by shootings and other crimes such as kidnappings, drug deals and burglaries, Glendale Officer Rafael Quintero said. But most crime in the Armenian community is carried out quietly and centers on sophisticated identity theft schemes. Police started picking up on these activities at the end of the 1990s and Glendale's task force was established in 2000, Davey said.

Several police agencies have task forces focused on Eurasian crime but Los Angeles police Lt. Stephen Margolis said this operation illustrates how the law enforcement community overall should pay closer attention.

"The sophistication and the pervasiveness of this type of criminal activity is years in the making," Margolis said. "Hopefully this will serve as a wake up to the extent of the seriousness this problem presents at a national level."

Zaven Kazazian, president of the Los Angeles chapter of the Armenian-American Chamber of Commerce, said much of the crime in the community is carried out by people raised under communist rule in the former Soviet republic of Armenia, where exploiting a corrupt government was seen as fair game. "It is a different cultural background," Kazazian said. "Everybody was out for themselves."

Kazazian stressed that only a handful of Armenians are engaged in criminal enterprises and cautioned against making generalizations. "We are embarrassed by it and we do not have any affiliation with them. They do not represent the true Armenian people," he said. "It's like saying all Italians are part of the Mafia. That's just stupid."

Prosecutors say the crime ring was known as the Mirzoyan-Terdjanian Organization, named after its principal leaders Davit Mirzoyan, 34, of Glendale and Robert Terdjanian, 35, of Brooklyn.

Most of the 44 people charged are from the Los Angeles area and New York but arrests were also made in Georgia, New Mexico and Ohio.

The seven defendants named in the Los Angeles indictment have all pleaded not guilty. Defendants named in the New York portion of the case had either pleaded not guilty or were due to be arraigned Monday.

A call to Kazarian's defense attorney, Vicken Hagopian, was not immediately returned Friday.

As the "thief-in-law" of the operation, Kazarian was touted by authorities as the big catch. But the role of such "vor v zakones" is more subtle than that of a Mafia boss, Lt. Davey said.

Armenian crime bosses typically are nominated by other criminals and their main task is to mediate disputes between groups. Though they describe no actual violence, authorities allege Kazarian helped the Mirzoyan-Terdjanian Organization and would use threats to resolve disputes in the U.S., Armenia and other places.

Armenia has said it will cooperate with the U.S. in its investigation and Foreign Ministry spokesman Tigran Balayan has said his nation was sorry.

Thanks to Thomas Watkins

Thursday, October 14, 2010

Reputed Mafia Godfather, Armen Kazarian, Alleged to Have Led Massive Medicare Cheating Scam

A vast network of Armenian gangsters and their associates used phantom health care clinics and other means to try to cheat Medicare out of $163 million, the largest fraud by one criminal enterprise in the program's history, U.S. authorities said Wednesday.

Federal prosecutors in New York and elsewhere charged 73 people. Most of the defendants were captured during raids Wednesday morning in New York City and Los Angeles, but there also were arrests in New Mexico, Georgia and Ohio.

The scheme's scope and sophistication "puts the traditional Mafia to shame," U.S. Attorney Preet Bharara said at a Manhattan news conference. "They ran a veritable fraud franchise."

Unlike other cases involving crooked medical clinics bribing people to sign up for unneeded treatments, the operation was "completely notional," Janice Fedarcyk, head of the FBI's New York office, said in a statement. "The whole doctor-patient interaction was a mirage."

The operation was under the protection of an Armenian crime boss, known in the former Soviet Union as a "vor," prosecutors said. The reputed boss, Armen Kazarian, was in custody in Los Angeles.

Bharara said it was the first time a vor — "the rough equivalent of a traditional godfather" — had been charged in a U.S. racketeering case.

Kazarian, 46, of Glendale, Calif., and two alleged ringleaders — Davit Mirzoyan, 34, also of Glendale, and Robert Terdjanian, 35, of Brooklyn — were named in an indictment charging racketeering conspiracy, bank fraud, money laundering and identity theft.

The indictment accused Terdjanian and others of hatching other schemes involving stolen credit cards, untaxed cigarettes and counterfeit Viagra. It also alleges that during a meeting last year at a Brighton Beach restaurant, Terdjanian pulled a knife on someone who owed him money "and threatened to disembowel the individual if the debt was not paid."

A judge jailed Terdjanian without bail on Wednesday at a brief hearing. Afterward, his attorney said his client denies the charges.

Kazarian and Mirzoyan were scheduled to appear in court Wednesday in Los Angeles.

Authorities began the New York-based investigation after information on 2,900 Medicare patients in upstate New York — including Social Security numbers and dates of birth — were reported stolen.

The defendants in the New York case also had stolen the identities of doctors and set up 118 phantom clinics in 25 states, authorities said. The names were used to submit fake bills for care that was never given, they said.

Some of the phony paperwork was a giveaway: It showed eye doctors doing bladder tests; ear, nose and throat specialists performing pregnancy ultrasounds; obstetricians testing for skin allergies; and dermatologists billing for heart exams.

In the New York portion of the case, more $100 million in fraudulent bills were submitted and Medicare paid out at least $35 million, sometimes by wiring it to the clinics' banks accounts, investigators said.

Most of the defendants "were Armenian nationals or immigrants and many maintained substantial ties to Armenia" and criminals there, the indictment said. Couriers would often carry cash proceeds from the fraud back to Armenia, it added.

Prosecutors were seeking forfeiture of real estate in Las Vegas; Palm Springs, Calif.; and elsewhere, and of a 2007 Maserati and a 2006 Jaguar.

Thanks to Tom Hays

Wednesday, October 13, 2010

Mafia Princess Challenges Coco Giancana to Take a DNA Test to Prove She's Granddaughter of Sam Giancana

The daughter of assassinated Chicago mob boss Sam Giancana is challenging a Las Vegas woman to take a DNA test to prove she's Giancana's granddaughter.

Antoinette "Mafia Princess" Giancana, one of the mobster's three daughters, said she does not believe the claim by Coco Giancana, who identified herself as a granddaughter during a Tony Curtis-related interview last week with Vegas Confidential.

"This has really been upsetting to me and my sisters," said Antoinette Giancana, who moved from Chicago to Las Vegas about 14 months ago to be involved in the Las Vegas Mob Experience at the Tropicana . She added, "We don't know her or of her. I'd like to have a DNA test done. I just don't believe it."

Coco Giancana, who operates a local concierge service, said, "I don't have to prove anything to anybody. If she doesn't like it, that's tough."

According to Coco Giancana, Sam Giancana had an affair with a woman from Oak Park, Ill., who was a film star. "They had a baby. That was my mother."

The mobster visited the family home more than 100 times, said Coco Giancana. "I know where my mother came from and I know who came to our house and I know where the checks came from."

Coco Giancana moved here about 20 years ago, she said, after a career as a top model in New York City for Wilhelmina modeling agency. She grew up across from Jilly Rizzo's joint in New York and was befriended by Rizzo and Sam Giancana's friend Frank Sinatra, "who would take us backstage when I was 16."

Sam Giancana was killed at his Chicago home in 1975 in what appeared to be a mob hit. He was 67.

"There are so many people who claim they are related to us," said Antoinette Giancana.

Coco Giancana said she kept her grandfather's name "because I'm proud of it." She added that she's never taken a DNA test to confirm her link to the organized crime chief.

Her father, whom she did not identify, was a partner with Arnie Morton, who founded Morton's steak restaurants empire. She wasn't shy about filling in the blanks in her biography. During her modeling days, she said she dated the Cincinnati Reds' Hall of Fame catcher Johnny Bench over a 10-year period starting in the 1970s.

Thanks to Norm!

Monday, October 11, 2010

"To Kill the Irishman: The War that Crippled the Mafia" Motivation for 2 Movies on Irish Gangster Danny Greene

Embezzlement, racketeering, mob enforcer, suspected killer … it’s no wonder Irish-American mobster Danny Greene was blown to bits by a car bomb on Oct. 6, 1977. But with gangsters from Chicago to New York making headlines for decades, the vast criminal enterprises in Ohio, in which Greene was instrumental until his death, have garnered few national headlines over the years.

As a student at Ohio State University, Manhattan Beach resident Tommy Reid, who grew up in north New Jersey, had heard stories about the nearly mythic figure of Greene from his friend who grew up in Cleveland. Back in 1995, when the Internet wasn’t a dominant source for research, Reid found little information about Greene. After he graduated and moved to L.A., he heard Greene was going to be a subject of a book. He hunted down its author, Rick Porrello, and eventually optioned the book, “To Kill the Irishman: The War that Crippled the Mafia,” in 1997.

After a long and winding road, two films that Reid produced about Greene will be released early next year. One is a documentary, “Danny Greene: The Rise and Fall of the Irishman,” and the other a feature film, “Kill the Irishman,” starring Ray Stevenson (HBO’s “Rome”), Christopher Walken, Vincent D’Onofrio, Val Kilmer, Paul Sorvino and Linda Cardellini. Anchor Bay, a division of Starz Media, is planning to release the film in North America, the U.K., Australia and New Zealand in early 2011.

While struggling to come up with funds for the feature film for 10 years, Reid said he became so specialized in his life history during his research that he tackled the documentary. He already had a screenplay that he had hired a writer (Jeremy Walters) to adapt the book into a feature, but the documentary seemed the best option in the hopes of bringing to light his aspirations in making a feature film.

“I had over 18 hours of interviews from all of these prominent figures that have had relationships with Danny Greene, his wife, a cop who went against him, the attorney who represented the mafia, a hitman who went after him, I had access to all of these guys and they were aging. Even since I made the documentary, a couple of the people have already passed away from natural causes. So Danny Greene was becoming an urban legend will in Cleveland.”

But the script began circulating and “got to the top shelf of Hollywood.” A “bankable” director, lead and supporting cast were attracted and Reid partnered with Code Entertainment. “Kill the Irishman” was filmed last year in Detroit, doubling for Cleveland, in an effort to get 40 percent in tax incentives.

Reid was still shooting his documentary when “Kill the Irishman” started filming in Detroit last year. The main challenge was raising money for post-production in order to get the highest quality facility to reach his vision. By putting production costs on a credit card and with the help of family money and a couple of private investors, one being Hermosa Beach resident William Fletcher, that project was finished. He said there are three different perspectives in the documentary - the Irish, Italian and the government side of the story. The other challenge was creating a compelling narrative so audiences would sit through an hour documentary on the life of a little-known figure. But Reid feels that Greene’s life story is compelling enough for two films.

According to Reid, “Kill the Irishman” chronicles the rise and fall of Greene, who muscled in on the Italian mob in 1970s Cleveland and set off a turf war that ravaged the streets of Cleveland and led to the collapse of the Mafia in a number of U.S. cities, including Kansas City, St. Louis, Detroit and Los Angeles.

Greene, a former Marine, rose to prominence in the early 1960s in the International Longshoreman’s Association. Kicked out for embezzling union funds, he soon became a henchman for mobsters like Alex “Shondor” Birns, who had his own rap sheet of extortion, murder and more. After a money dispute, Birns reportedly put a hit on Greene and had a bomb planted in his car, but he discovered it before it took his life. Soon after, Greene, who survived numerous assassination attempts, was suspected of planting a bomb in Birns’ car, killing him. A few years later, Teamster official John Nardi, an associate of Greene’s, was blown up, followed a few months later by Greene, after a dentist appointment in Lyndhurst, Ohio. The Cleveland Mafia, who had conflicts for many years with Greene, was reportedly responsible for the deaths.

“When you hear something about Ohio and Cleveland … why would they have the mafia there?” Reid said. “You find out that Cleveland is such a big hub for the boats coming out of the Great Lakes, down through the distribution centers of the Mississippi and all the way through all the other distribution and out to the west from Ohio … there’s lot of cargo coming off these big ships.”

Reid added, “It’s not just Cleveland. It’s Youngstown, Toledo, which leads you into Detroit. Those four cities, that’s a wide area of mafia. That’s equivalent of what you would think of the New York crime families, all the families that had their hands into organized crime. Cleveland was an area that never really got as much exposure as the eastern cities did, Boston and New York.”

With his vast criminal past, Reid said one thing he was surprised about when it came to the contradictory life of Greene was this almost Robin Hood-type figure and how much he “would extract just to give back.”

“He would take the money he would make ... and he would give it out to his neighborhood,” Reid said. “He would pay for kid’s braces that needed dental work. He would buy groceries for struggling families that couldn’t put food on the table.”

Thanks to Michael Hixon

Thursday, October 07, 2010

Chicago Drug Fugitives Arrested in Mexico

Two former Chicago residents with ties to a sophisticated drug operation who had been on the run from law enforcement for nearly a decade, were located and arrested earlier this week in Mexico, announced Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Jody P. Weis, Superintendent of the Chicago Police Department (CPD).

JUAN CARLOS DURAN, age 34, who is also known as “Psycho” and his common law wife, DIONNE GARCIA, age 33, both of whom were last known to reside at 2955 West 40th Street in Chicago, were arrested without incident on Tuesday, October 5th, near Tijuana, Mexico, by members of the Policia Estatal Preventiva (PEP), an international liaison and enforcement unit.

DURAN and GARCIA have been the subjects of an international manhunt, coordinated by the Chicago FBI’s Joint Task Force on Gangs (JTFG), since late 2001 when both were charged in a criminal complaint filed in U.S. District Court in Chicago with violation of Federal drug laws. DURAN was charged with possession of a controlled substance with the intent to distribute (PCP) and conspiracy while GARCIA was charged with conspiracy.

DURAN and GARCIA were among 52 people charged in connection with an investigation code named “Operation Blue Water”, which targeted a Chicago based street gang that manufactured and distributed PCP in Chicago and northwest Indiana. DURAN eluded arrest at the time the charges were filed while GARCIA fled after being released on bond following her arrest.

The arrest of DURAN and GARCIA was the result of a tip provided by a viewer of the television show “America’s Most Wanted” who saw DURAN and GARCIA featured during a recent episode. Further investigation by the Chicago JTFG, with the assistance of FBI Agents assigned to the Resolution Six initiative in Tijuana and Mexican authorities, ultimately resulted in the location of DURAN and GARCIA and their subsequent arrest.

DURAN and GARCIA were turned over to FBI Agents in San Diego, late yesterday. They are scheduled to have their initial court appearance later this afternoon, prior to their eventual return to Chicago to face the outstanding charges.

The Chicago FBI’s Joint Task Force on Gangs is comprised of FBI Special Agents and Gang Crimes Officers from the Chicago Police Department.

Saturday, October 02, 2010

Angelo "The Hook" LaPietra's Family Receives Discounted Chicago Water Bill

City meter readers always seemed to have a hard time getting inside the Bridgeport home of the late Chicago mob boss Angelo "The Hook" LaPietra to read his water meter.

So City Hall repeatedly sent estimated water bills to the 6,000-square-foot home, where LaPietra's daughter, JoAnne Lascola, lives.

City workers finally got inside on Aug. 26, 2009, to install a new meter -- one that can be read electronically by a meter reader driving past the house.

In removing the old meter, though, they found they had been drastically underestimating how much water LaPietra's family was using.

So, on Oct. 10, 2009, the city sent the family a bill for $1,156.66 -- $625.22 of that for about 355,000 gallons of water and $531.44 for sewer service.

The family balked. Three weeks later, the city slashed the bill to $256.55.

"In implementing the [automatic meter-reading] program, we found some readings from old meters came under question by customers, especially when they had not been read over a period of time," City Hall said in response to questions from the Chicago Sun-Times. "In these cases, customers were given the benefit of the doubt and charged on the basis of an average of previous bills."

In the LaPietra family's case, "A one-time adjustment of $900.11 was made to the account . . . because the customer had been estimated for a period of time, as a result of our inability to access the meter to obtain a meter reading."

Authorities say LaPietra, a brutal Chicago Outfit boss who died in 1999, ran the mob's 26th Street Crew, overseeing gambling in the Loop and Chinatown. He was once convicted of skimming millions of dollars from Las Vegas casinos.


Thursday, September 30, 2010

Heroin and Cocaine Supply Networks, Street Gang Drug and Gun Sales Targeted in Three Separate Investigations Resulting in State and Federal Charges Against 55 Defendants

Fifty-five defendants are facing state or federal charges following separate law enforcement operations that penetrated alleged wholesale cocaine and heroin supply networks and street gang-related retail sales of drugs and guns on the city’s south and west sides. Nearly 20 firearms, tens of kilograms of heroin and cocaine, more than $800,000 in cash, and three luxury automobiles were seized during the course of the joint local, state and federal investigations that were taken down consecutively today, yesterday and Tuesday.

The defendants charged in the operations included drug wholesalers alleged to have narcotics supply connections in Mexico; the customers of those wholesalers, whose alleged re-sales extended from Chicago into Indiana and Wisconsin; and members of six different street gangs who allegedly dealt drugs and guns to an undercover operatives. In one instance, the violence that often accompanies guns, drugs and gangs was captured on a telephone wiretap when a gunman fired a shot into a car as one federal defendant, who allegedly brokered a cocaine deal, then orchestrated a robbery of both the buyer and seller.

The following events occurred in a series of early morning operations this week:


  • On Tuesday, Chicago police and federal Alcohol, Tobacco, Firearms and Explosives (ATF) agents executed arrest and search warrants against 20 state and 13 federal defendants who allegedly sold various amounts of crack cocaine and/or firearms in a single west side neighborhood to an undercover agent, mostly since 2009. Thirteen guns and rifles were seized during the investigation;
  • On Wednesday, FBI and DEA agents, together with Chicago police, began executing arrest and search warrants against 18 federal defendants, including Moises Villalobos, an alleged wholesale dealer with Mexican connections after authorities seized approximately 25 kilos of heroin from him since July in Chicago and south suburban Harvey. Villalobos allegedly supplied heroin to a faction of the Gangster 2-6 Nation street gang that was dismantled two weeks ago in a similar takedown on state and federal narcotics charges. Another defendant, Roberto Romero, allegedly directed a separate drug-trafficking cell that was supplied by Villalobos, and which re-sold wholesale quantities of cocaine and heroin to various customers in the Chicago area, as well in Milwaukee and northern Indiana. Defendant Antonio Negron allegedly transported wholesale supplies of cocaine into Chicago on multiple commercial airline trips from Puerto Rico, and yet another defendant, Helga Weis, allegedly staged the simultaneous robbery of a drug supplier and a customer; and
  • Today, FBI agents began executing arrest warrants against four additional defendants, including two alleged members of the Mickey Cobras street gang and two alleged Gangster Disciples members, who allegedly sold various amounts of either heroin or crack cocaine, and in one instance a 9 mm rifle, on the city’s south side to individuals cooperating with law enforcement agents.


“The wholesale supply side and the retail street sales of narcotics trafficking are equally important components of the same problem,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. “These coordinated efforts demonstrate the commitment of all law enforcement agencies in Chicago, at both the federal and state level, to combat the dangerous combination of gangs, guns and drugs in our community,” he added.

“Using all of our combined police and prosecutorial resources, we are continuing to successfully hammer away at the drug markets and the accompanying violence that is plaguing so many of our communities,” said Cook County State's Attorney Anita Alvarez.

“The core missions of ATF are combating gun crimes and interdicting the illegal trafficking and possession of firearms. As demonstrated by our investigation and arrests, we are fulfilling those missions by targeting mid-level narcotics traffickers and their support networks. It is ATF’s committed contribution to the comprehensive fight against violent crime throughout the city of Chicago” said Andrew L. Traver, Special Agent-in-Charge of ATF in Chicago.

“The DEA will continue to investigate alleged drug trafficking organizations with every legally available tool we possess. During this investigation, our agents worked with the FBI and the Chicago Police Department to deploy a myriad of investigative tactics, from surveillance to court-authorized wire intercepts,” said Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the DEA. “Our mission is to keep law enforcement pressure on these alleged drug distribution networks, while gathering evidence for use in court.”

Jody P. Weis, Superintendent, Chicago Police Department, said: “This operation is critical because it targeted individuals who are alleged to have received illegal drugs that were subsequently sold on the city's south and west sides. Removing these individuals will impact the ability of street gangs to profit from their illegal activities.”

Also announcing the charges was Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the FBI. The U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) and the U.S. Marshals Service assisted with the investigations and arrests. All three investigations were conducted under the umbrella of U.S. Organized Crime Drug Enforcement Task Force (OCDETF), and with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA). The investigations, which employed wiretaps, surveillance, cooperating witnesses, undercover drug and firearms transactions, and a steady progression of searches and seizures of evidence, are continuing the officials said.

The ATF/CPD undercover investigation

ATF agents and Chicago police officers have been investigating illegal drug and weapons sales by individuals in the west side neighborhood bounded by Keeler, Kilbourn, Iowa and Walton streets. Beginning before 2009, the investigation focused on the alleged narcotics sales operation of Ivan Thomas, also known as “Pimp,” as well as Anthony Grant, Ervin Hewing, Reynaldo Davis, and Antwain Lashley, who allegedly worked with Thomas to distribute crack cocaine and heroin. ATF agents were assisted in the investigation by a cooperating source (CS1) and, from January through July this year, provided CS1 with an apartment in the Walton Street neighborhood to facilitate CS1's assistance. During the investigation, an undercover agent, posing as CS1's friend, was introduced to make undercover purchases of guns and drugs.

As a result of the undercover investigation, 20 defendants are facing state narcotics charges alleging delivery of a controlled substance, and 13 defendants are facing federal charges. Of the 33 defendants, 14 were arrested Tuesday or yesterday, eight were already in custody or on bond, and 11 remain at large with arrest warrants outstanding. The complaints identify individual defendants variously as members of the Four Corner Hustlers, the Conservative Vice Lords, the Traveling Vice Lords, the Gangster Disciples and the New Breeds street gangs.

Thomas, 26, who was arrested and whose apartment in the 100 block of South Hamlin Avenue was searched on Tuesday, was charged with conspiring with Grant, Hewing, Davis and Lashley in December 2009 to distribute more than 50 grams of crack cocaine, which carries a mandatory minimum penalty of 10 years to a maximum of life in prison and a $4 million fine.

Also charged separately with distributing more than 50 grams of crack cocaine were: Davis, 21; Grant, 30, who was arrested last month and has pleaded not guilty after being indicted; and Lashley, 30. Charged with distributing more than five grams of crack were: Dianiso Dorsey, 30; Hewing, 22, and brothers, Jermaine, 37, and Michael Lewis, 34. That charge carries a mandatory minimum of 5 years to a maximum of 40 years in prison and a $2 million fine.

Five defendants—Jerome Carson, 30; George Smith, 26; Gregory Hayes, 26; Donneil Reed, 32, and Timothy Williams, 22—were each charged with being a felon in illegal possession of a firearm. Carson allegedly sold three .22 caliber rifles and a 9 mm pistol to the undercover agent or cooperating informant over the last year; Smith and Hayes both allegedly possessed a 9 mm pistol that was seized; and Reed and Williams, allegedly each sold a pistol to the undercover agent. Six other firearms were seized during the investigation. The felon-in-possession charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

The government is being represented in these cases by Assistant U.S. Attorneys Steven Block, Tiffany Tracy and Kartik K. Raman.

The DEA/FBI/CPD wholesale supply investigation

In one of five separate complaints, Moises Villalobos, 23, also known as “Antonio Salgado,” Faustino Arrellano, 37, Adan Moreno, 20, and Rosa Fernandez, 53, were charged with conspiring between May and Aug. 25, 2010, to possess and distribute a kilogram or more of heroin and five kilograms or more of cocaine. On July 14, agents and officers seized nearly a kilogram of heroin after Villalobos allegedly had a courier deliver it to a customer; on Aug. 15, approximately 10 kilograms of heroin was seized before it was delivered to Villalobos; and approximately 12 kilograms of heroin was seized on Aug. 24 from a car in a garage in Harvey after Villalobos’ co-defendants allegedly moved it from a “stash house” in Chicago.

According to the specific transactions described in the complaint, between April and August this year alone, Villalobos and his co-defendants were responsible for the movement of at least 17 kilograms of cocaine and 50 kilograms of heroin.

Villalobos allegedly used his connections to Mexican brokers to receive wholesale quantities of cocaine and heroin from suppliers in the Chicago area, and then distributed those narcotics to various customers, including Roberto Romero, 45, who was charged in a separate complaint, along with 10 co-defendants, for allegedly operating a re-sale distribution network that had customers across the region, including in Milwaukee and northern Indiana. Villalobos and his organization also allegedly supplied multiple kilograms of cocaine to Francisco Masias, the alleged leader of a 2-6 street gang faction who was among 19 defendants who were charged with federal narcotics crimes two weeks ago.

According to the charges, Villalobos maintained two stash houses where he received and stored his supplies of heroin and cocaine. One was located at 2455 N. McVicker in Chicago, where agents and officers found approximately 1.7 kilograms of heroin, 1.2 kilograms of cocaine and $750,000 in cash hidden under the floor of a bedroom closet during a search on Aug. 19 after Villalobos was arrested on state drug charges. The other stash house was located at 2826 N. Long in Chicago, where Villalobos allegedly received a shipment of approximately 13 kilograms of heroin on June 25. Between Aug. 12 and 18, approximately 12 kilograms of heroin was stored at the Long house before Villalobos’ co-conspirators allegedly moved the heroin to Harvey, and Villalobos, Arrellano and Fernandez simultaneously removed other belongings from the house as well.

Both the Villalobos and Romero complaints allege the seizure of nearly a kilogram of “Mexican brown heroin” on July14 when a courier for Villalobos allegedly attempted to make a delivery to one of Romero’s customers, identified as Leo Mercado, by placing the heroin on the front floorboard of an unlocked silver Mercedes SUV parked in the 4900 block of North Harding. Unbeknownst to the defendants, agents, who were conducting surveillance, immediately seized the heroin from the vehicle before it could be retrieved, and subsequent intercepted phone calls indicated that Villalobos and Romero believed that Romero’s customer was lying when he later claimed that he could not find the heroin in the vehicle.

The Romero complaint alleges that he received wholesale quantities of cocaine and heroin from Villalobos, as well as his main cocaine supplier, Richard Medina, 27, of Berwyn, with whom he bought and sold heroin, and that he then “fronted” both cocaine and heroin to other customers for re-sale. The nine-count, 157-page complaint charges the following: Counts One, Two and Four charge Romero; Medina; Alejandro Reyes, 26; Abraham Mercado, 29, of Cicero; and Ana Montoya, 30, with one count each of conspiracy to possess and distribute five kilograms or more of cocaine; Count Three charges an unnamed defendant later identified as Leo Mercado, 24, with conspiracy to posses and distribute one kilogram or more of heroin; Counts Five through Seven charge Nicolas Gomez, 31; Thomas Merced, 31,of Hobart, Ind.; and Luis Lopez-Martinez, 26, of Melrose Park; with one count each of conspiracy with Romero to possess and distribute more than 500 grams of cocaine; Count Eight charges and Israel Hernandez, 37, of Forest Park, with possession with intent to distribute more than 500 grams of cocaine; and Count Nine charges Johnny Fort, 45, with conspiracy with Romero to possess and distribute more than 100 grams of heroin.

Three other defendants were charged individually in separate complaints. They are: Francisco Llamas, 41, distribution of heroin; Antonio Negron, 39, of Winter Haven, Florida, conspiracy to distribute cocaine—Negron allegedly transported various amounts of cocaine to Chicago on five trips between November 2009 and March 2010 aboard commercial airlines arriving at O’Hare International Airport; and Helga Weis, 25, interstate robbery—Weis, together with three unnamed, uncharged individuals, allegedly brokered a cocaine deal on March 10, 2010, between a supplier and a customer, in which both were robbed but only money was taken.

After meeting with the customer and obtaining $1,500 for the purchase of cocaine, Weis met with the supplier in the supplier’s car in the vicinity of West Armitage and North Kostner avenues. Using a monitored phone, Weis had placed an outgoing call that went to voicemail but the phone remained on during the following events, according to her complaint: a gunman approached the car, threatened to shoot and demanded money and the car keys, and then fired a shot into the car. Weis gave the gunman $1,400 and the supplier gave the keys before the gunman fled with the money but no drugs. The victim supplier then fled and Weis allegedly called the gunman and another individual to return to the car to obtain cocaine left inside the vehicle but they were unable to retrieve it from a hidden compartment. Weis then told the victim customer about the purported robbery without disclosing her alleged involvement.

If convicted, Villalobos, Arrellano, Moreno, Fernandez, Romero, Medina, Reyes, both Mercados, and Montoya face a mandatory minimum sentence of 10 years to a maximum of life in prison and a $4 million fine. Defendants Gomez, Merced, Lopez-Martinez, Hernandez, and Fort face a mandatory minimum of five years and a maximum of 40 years in prison and a $2 million fine. Defendants Llamas, Negron and Weis each face a maximum penalty of 20 years in prison and a $250,000 fine. The Court, however, must determine a reasonable sentence under the advisory United States Sentencing Guidelines.

The government is being represented by Assistant United States Attorneys Steven Kubiatowski, Stephen Lee and Angel Krull.

In the operation that commenced today and was still unfolding, the government is being represented by Assistant U.S. Attorneys Halley Guren, Steven Grimes and Christopher McFadden.

The public is reminded that charges are merely allegations and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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