The Chicago Syndicate: John DiFronzo
The Mission Impossible Backpack

Showing posts with label John DiFronzo. Show all posts
Showing posts with label John DiFronzo. Show all posts

Tuesday, February 28, 2006

Chicago Mob Time Line: January 1, 1985

Friends of ours: Sal DeLaurentis, Chuckie English, Sam Giancana, Joe Ferriola, Fifi Buccieri, Turk Torello, Paul Ricca, Tony Accardo, Fat Tony Salerno, Genovese Crime Family, Dominic Palermo, Tony Spilotro, Rocco Infelise, John "No Nose" DiFronzo, Sam "Wings" Carlisi, Michael Carracci, Jackie Cerone
Friends of mine: Hal Smith, Dom Angelini, Chris Petti


IN THE YEAR 1985: Sal DeLaurentis was strongly suspected of playing a role in the torture murder of a bookmaker named Hal Smith. A few months before federal investigators caught Solly D on tape telling Smith that he would be "trunk music" unless he made a $6,000 a month street tax payment to him.

- Chuckie English, Sam Giancana's top aide, died with vast interests in the Phoenix area, real estate and construction.

- Joe Ferriola, AKA Joe Negall, was now the boss over the Chicago mob. He had been with Fifi Buccieri's crew until Buccieri died, and Turk Torello took over. When he died, Ferriola took over and eventually assumed control of all the gambling in Chicago.

It was widely assumed that Tony Accardo was still in charge of the organization, just as Paul Ricca had been in charge when Accardo and Giancana were running things.

- Tony Accardo sold his condo on Harlem avenue and moved into affluent Barrington Hills, to live on the estate with his daughter Marie, Mrs. Ernie Kumerow. Mr. Kumerow is a union official.

- Fortune magazine declares that Tony Accardo is the second ranked boss in the country behind Fat Tony Salerno in New York of the Genovese family.

- According to Dominic Palermo's wife, who was an FBI informant, her husband Dominic got the order to kill the Spilotro brothers at a meeting he attended at the Czech Restaurant in Chicago. Palermo said that Joe Ferriola ordered the hit and Rocco Infelise gave it his okay.

Palermo, who worked for the very mobbed up Chicago Laborers local 5, was left behind in the cornfield by the other killers after they took the Spilotro's out. Palermo walked five miles to a phone both and called his wife, told her what happened and had her pick him up.

From that information, the FBI was able to locate the Spilotro bodies. The corpses were not, as the story so often goes, discovered when a farmer plowed them up. Rather, the Chicago office of the FBI probably spread that story to cover its informants.

- The Chicago mob's new boss, John "No Nose" DiFronzo decided to try and skim money out of legalized gambling at the Rincon Indian resort, on a federal reservation in San Diego County, California. It was a last ditch attempt to keep their grip on the Nevada gambling scene but the entire scam was a disaster.

Everything that could go wrong did go wrong. The first time the reservation scam was discussed was in July of 1985, between DiFronzo, Dom Angelini, who, at the time was Chicago's man in Vegas, and underboss, Sam "Wings" Carlisi at a meeting held at Rocky's Restaurant in suburban Melrose Park, Illinois.

The plan was to finance the tribe's venture into gambling, take over the operations, skim money from the casinos as well as use it to launder money from narcotics sales. Dom Angelini placed Chris Petti, the outfit's man in San Diego, in charge of the takeover. Petti was ordered to deal directly with Angelini's brother-in-law, Michael Caracci, a soldier in the DiFronzo crew.

To work the scam, Caracci called Petti at the same San Diego pay phone they had been using for years, which, unknown to them the FBI had tapped years before. They decided that although the Rincon deal looked good, Chicago didn't want to sink any money into it.

But that they would, however, get involved if an outside source wanted to put up the financing to take over the Indian gambling resort. Petti made contact with Peter Carmassi, whom he had been told was a money launderer for a Columbian drug cartel.

Carmassi, who was actually an undercover FBI agent, showed interest in the Rincon casino deal. In several tape recorded and filmed meetings with undercover agent Carmassi, Petti laid out the entire scam to take over the Rincon reservation gambling concession.

On January 9, 1992, the government indicted Petti, DiFronzo, Carlisi and the reservation's lawyer, on 15 counts of criminal conspiracy. DiFronzo and Angelini were convicted and got a 37-month sentence, with fines approaching one million dollars.

- Corbitt joined the Cook County Sheriff's Department, and was assigned to the Clerk of the Circuit Court. However, he was indicted and convicted for racketeering and obstructing justice in 1988.

- Jackie Cerone got nailed on federal charges for skimming $2,000,000 from the Stardust Casino in Vegas and was sent to prison in Texas.

Thanks to Mob Magazine

Tuesday, January 03, 2006

Mob Contract Under Review at UIC

Friends of ours: John "No Nose" DiFronzo, Peter DiFronzo

University of Illinois at Chicago administrators are taking a fresh look at a longtime snowplowing contract their institution has held with a construction firm that authorities say is controlled by two "made" members of the Chicago mob. The company, D&P Construction, has been paid nearly $500,000 by the public university during the past two years. D&P was widely publicized as linked to organized crime in 2001, when the Illinois Gaming Board took issue with it hauling trash from the site of what was supposed to become a Rosemont casino.

A recent report by a board hearing officer cited an internal FBI memo from 2003 that stated that D&P "obtained contracts through illegal payoffs or intimidation," though UIC officials said they've never witnessed such acts since the firm began plowing snow at their Near West Side campus in the late 1990s.

D&P, on paper is run by Josephine DiFronzo, whose name appears on the recently extended contract that D&P holds with UIC. But authorities contend the firm is "controlled" by her husband, Peter, and his brother, John. Law enforcement documents identify John "No Nose" DiFronzo, 76, as one of the three top organized crime leaders in the city. Peter DiFronzo, 72, allegedly is his chief lieutenant.

Thomas Hardy, communications chief for all University of Illinois campuses, said the D&P contract is now under review after inquiries by the Chicago Sun-Times. University officials initially told the newspaper they saw no reason to review the contract, but Hardy said Sunday that the university's vice chancellor for administrative services, Joseph Muscarella, will oversee a review that's set to begin this week. "We are reviewing the contract to ensure all procedures were followed properly and that the contractor remains a qualified bidder under state law," Hardy said. "You've raised a lot of questions, so we want to get to the bottom of it."

Josephine and Peter DiFronzo did not return telephone calls seeking comment.

The university paid D&P $203,574 in its 2004-2005 budget year and $267,740 in 2003-2004 to augment its own in-house snow-removing crews. In addition, UIC paid D&P about $10,000 each of those years to deliver mulch to the campus.

D&P is known more as a top waste-hauler in the Chicago area than for plowing snow. UIC officials asked six companies to bid on the snowplowing contract in 2002, but only D&P submitted a bid. (This is a common technique that was used in the past by the Mob. They would divide the work up among themselves first and then only the choosen company would bid on the contract.)

Thanks to Chris Fusco.

Monday, November 28, 2005

Firm with reputed mob ties flourishes

Friends of ours: Peter DiFronzo, John DiFronzo, James Marcello, Sam Carlisi

Near the front of this fall's Columbus Day Parade rolled a shiny, massive truck from D&P Construction -- one of many signs the local waste-hauling business is prospering.

D&P dumpsters, often emblazoned with painted American flags, have sprouted up all over the Chicago region: at an Old Town-area church being rehabbed; outside a Loop bridgehouse renovated by the Friends of the Chicago River; at a new strip mall in Niles, and along a canal in Evanston. But the company also continues to surface in other places: the files of the FBI and Illinois Gaming Board. Officials from those agencies have, in recent years, repeatedly described D&P as a mob-linked company.

On paper, D&P is run by Josephine DiFronzo. But authorities contend D&P really is "controlled" by her husband Peter and his brother John, and a Chicago Sun-Times examination indicates that Peter DiFronzo is deeply involved with the company.

The DiFronzo brothers are identified in law enforcement documents as "made" members of the Chicago mob, with John "No Nose" DiFronzo, 76, allegedly one of the three top organized crime figures in the city. Peter DiFronzo, 72, allegedly is his chief lieutenant and, at least for a time, was a leader of the mob's Elmwood Park Street Crew.

A recently released report from an Illinois Gaming Board hearing officer offers disturbing new allegations about D&P's operations -- and its success. The report, penned by retired judge and congressman Abner Mikva, cited an internal FBI memo from 2003 that not only alleged that D&P is "controlled by Peter and John DiFronzo," but it also said that the business "obtained contracts through illegal payoffs or intimidation."

Reached on the phone at her Barrington-area home this week, Josephine DiFronzo declined to comment. "I have a wake to go to. I'm just running out the door," she said before hanging up. Neither she nor her husband responded to subsequent phone calls to D&P. John DiFronzo's lawyer had no comment.

Despite the DiFronzos being shy with the press, D&P's profile only has increased in recent years. The company and a sister recycling and materials firm, JKS Ventures, now have sophisticated Web sites that, among other things, boast about them being family-owned for more than 30 years. "Whether it is providing waste removal options, delivering material or tearing down your old facility . . . D&P is 'At Your DISPOSAL!' " the D&P site reads.

D&P and JKS contribute generously to certain politicians, including state Rep. Angelo "Skip" Saviano (R-Elmwood Park) and Republican Cook County commissioner and Elmwood Park Mayor Peter Silvestri. D&P, with addresses in Chicago and Melrose Park, co-sponsored a charity golf event earlier this year.

D&P used to operate quietly as a subcontractor for the once-mighty Palumbo Construction, which specialized in road building and public works projects but ultimately ran afoul of the law. Peter and John DiFronzo, one law enforcement source said, had a firm foundation from which to build D&P. "[Peter] knows trucking. He knows road building. He knows construction. He's got experience in those areas," the source said. "And his brother John knows cars. He's been a car dealer his whole life . . . he went to the auctions and would buy cars. He knew a good car from a bad car."

D&P now does a good deal of work leasing dumpsters for home renovations and larger developments. A D&P dumpster even was spotted around the corner from mob turncoat Nick Calabrese's old Norridge home, where a neighbor's building a new house. The number of union employees working for the DiFronzos has doubled in the past few years, said a person familiar with Peter DiFronzo and D&P. "While others are struggling . . . he is getting bigger every day," said the person. "He's definitely moving through the ranks, big and getting bigger."

The person believes D&P is offering competitive prices to beef up its customer list and sell, perhaps to a larger rival. Industry officials contacted in recent days said they aren't aware of that strategy and didn't want to speculate.

A D&P customer willing to talk is well-known developer Sam Zitella, who has used D&P dumpsters "for many years." Zitella lives near Peter and Josephine DiFronzo, and he considers Peter DiFronzo a good friend. "He's been providing my dumpsters for many years, he's a good guy," Zitella said. "He's a hard worker" who helps run a "great operation."

"He's a good person, good family, very family-oriented," Zitella added. "He gets a lot of business because the service is there, decent price."

While some customers are aware of the DiFronzo brothers' reputations, others are not. Like the Archdiocese of Chicago. This week, a D&P dumpster was on site at St. Joseph's Catholic Church near Orleans and Division in the Old Town area. Neither the contractor overseeing a project to convert an old rectory into a parish center nor the archdiocese's construction office apparently was aware of D&P's history.

After a Chicago Sun-Times inquiry to the archdiocese, the contractor agreed to hire a different firm, said Jim Dwyer, an archdiocese spokesman. "We don't micromanage our projects to the extent we would know who's doing the waste hauling," Dwyer said. "The contractor we had wasn't aware of anything like this, and they have volunteered to hire somebody else." Still, "we're not making any judgments about this company," Dwyer said, adding he was not aware of D&P being involved in any other current archdiocese construction work. A D&P dumpster, however, was at an archdiocesan facility on the Northwest Side in recent years.

D&P was widely publicized as a mob-linked firm in March 2001, when the Gaming Board took issue with D&P hauling trash from the Rosemont site where Emerald Casino Inc. tried to build a gambling barge. Emerald's use of D&P, the board stated, was one of many reasons Emerald discredited the integrity of state casino operations and deserved to have its gaming license revoked. Mikva's ruling last week supports the board's original finding. Emerald is expected to appeal the case.

Former federal prosecutor Gregory Jones was the Gaming Board chairman in 2001. Reached Wednesday, he said he wasn't surprised by D&P's growth. "It's a little hard to say what the public reacts to. . . . It could be there are so many allegations surfacing around today that they don't pay too much attention to it until there's some sort of action from a legal standpoint," Jones said. "Our views back from the Gaming Board were that you don't have to be convicted for something to be hurting your reputation or hurting the integrity of gaming. That's a much broader standard."

The DiFronzo brothers have had their share of legal trouble. John DiFronzo, whose family has residences in River Grove, McHenry County and southern Wisconsin, has more than two dozen arrests, and he was convicted in 1993 in a scheme to infiltrate an Indian casino. Peter DiFronzo did time in Leavenworth in the 1960s for a warehouse heist. Their younger brother Joseph, meanwhile, is imprisoned in Springfield, Mo., on federal drug offenses.

Peter DiFronzo's other trouble has stemmed from the Teamsters. In 1998, a government-union agency known as the Independent Review Board tried to kick him out of the group "for being a member of the Chicago La Cosa Nostra . . . and knowingly associating with other organized crime members," according to union documents.

Those reputed mob figures included John DiFronzo and Joseph Andriacchi, described as a childhood friend of Peter DiFronzo. "According to the FBI, [Peter] DiFronzo has a close relationship with his [older] brother," the union documents stated.

Peter DiFronzo was believed to be a liaison between his older brother and other reputed hoodlums, including James Marcello and the late Sam Carlisi, according to records and the law enforcement source. A confidential informant told the FBI in 2001 that John DiFronzo "visits Peter DiFronzo every morning at . . . JKS Ventures, and gives Peter DiFronzo instructions and orders for the day with regards to Chicago Organized Crime," according to testimony at the Gaming Board's Emerald Casino disciplinary hearing.

Peter DiFronzo resigned from the Teamsters in 1998, but did not admit to any of the charges.

Since then, it's clear that he's been part of D&P's operations.

Peter DiFronzo is listed as the D&P contact for the June charity golf event; he's the point person for the sale of an old JKS grinder, according to a U.S. Manufacturing Inc. Web site, and he regularly directs D&P workers, said the source familiar with the company. "He has daily contact with the drivers, or their supervisors," the source said.

Meanwhile, two workers from D&P ran unsuccessfully in the most recent Teamsters Local 731 election, raising concerns among some about whether Peter DiFronzo was trying to exert influence at his former union. "There seems to be a general attitude that there's no need to be concerned about the Outfit" any more, the law enforcement source said. "Nothing could be further from the truth."

Thanks to Robert Herguth and Chris Fusco

Monday, November 21, 2005

Come out, Joey, wherever you are

Friends of Ours: Joey "The Clown" Lombardo, Frankie "The German" Schweihs, Mike Swiatek, John "No Nose" DiFronzo

Dear Joey, It happened again this week. Somebody called to say they had spotted you in a restaurant on Grand Avenue. "Swear to God," the tipster told me, "it was the Clown."

As you know, a lot of folks are spending a lot of time looking for you. Chief among them, of course, is the FBI. They're still pretty embarrassed about the fact that you weren't home in bed last spring when they came early one morning to wake you up and haul you away.

It certainly didn't help matters that your co-defendant, Frankie "The German" Schweihs, has also given them the slip. For a couple of guys in their late 70s, you two are really "The Sunshine Boys" of the federal fugitive list.

Monday in Chicago, U.S. District Judge James Zagel is going to set a trial date for you and other defendants in your case. I know from the letter you sent to the judge last summer that you said you're an innocent man. And that you had nothing to do with those 18 unsolved mob murders. The feds don't buy that, of course, and really wish you'd attend your own trial. Because of all the attention you're getting, Joey, I think you should know your friends are getting just a bit jittery.

I say that because of another tip I got a couple of weeks ago. It seems there was an anniversary party at the Victoria Banquet Hall in Norridge last month. I'm sure you've been there many times over the years for weddings and parties and funeral lunches. It's a great place. Good food.

Anyway, this party was in full swing. And according to the tip, among those in the room was Mike Swiatek. You know Mike, of course. The feds list him as a member of your Grand Avenue crew. Like you, he's done time in the joint but is out on parole now. Also at the party supposedly was the infamous mobster, John "No Nose" DiFronzo.

Right in the middle of this party, I'm told, the weirdest thing happened! Quoting the tip I received, "During the event an individual's foot came through the ceiling of the room, and when the partygoers investigated, they discovered that it was the foot of an FBI agent who was filming and recording the event. Needless to say, the partygoers departed rapidly."

They fled, according to the tipster, believing that the feds had come looking for you. Well, Joey, I just had to find out if this was true. So first I called the FBI. Special Agent Frank Bochte told me he had "no knowledge that that had occurred." If it had, he said, he would have heard.

Then I called Mike Swiatek. He wasn't home, but the woman who answered (she didn't think it was a good idea to give me her name) said, "Oh, my God!" when I explained why I was calling. She took my number and said she'd have Mike call me. He must be busy because he hasn't called back.

Finally, I called the Victoria Banquet Hall and talked to the manager. He was very nice but also not eager to read his name in the paper. "Oh, my God!" he said in a now familiar refrain. "That's a false rumor tip," he said.

Well, yes and no.

"We did have an incident where a dishwasher [was up in the attic and] stepped on a heater vent . . . and pushed a ceiling tile down from the ceiling, yes, we did have that happen." He went on, "There was something [a foot] through the ceiling, but that's the only part that's correct. The FBI were never in the building unless they were here unbeknownst to any of us. There were no cameras in the ceiling, I can guarantee you that."

Oh, by the way, Joey, I asked him if by any chance John DiFronzo or Mike Swiatek was at that party."One of those names was at the party," he told me.

Can you say which one? "I don't think I should," he said. "You're putting me on the spot."

He was a very nice man, Joey, and I didn't want to be pushy.

All of this is to say we haven't heard from you lately. Your last letter, mailed to your attorney, Rick Halprin, in August, was postmarked Chicago and included several clippings from the Sun-Times in which you noted the FBI had done you wrong.

So since there is a chance that you might be reading this, how about a call or a letter? I won't even put in for the $20,000 reward the FBI has offered for information. Or better yet, why not show up in person? You've had your fun with the feds, scared your friends and lived up to the reputation for being "The Clown."

It's time to turn yourself in.

Thanks to Carol Marin

Thursday, November 17, 2005

Illinois Gaming Board and Emerald Casino

Friends of Ours: Sam Giancana, James Marcello, John DiFronzo
Friends of Mine: Donald Stephens, Vito Salamone, Joseph Salamone, Nick Boscarino, Peter DiFronzo, Michael Marcello

Recommendations to the Illinois Gaming Board
In the Matter of Emerald Casino, Revocation of License Proceeding
Abner J. Mikva
Administrative Law Judge.

This matter officially commenced on March 6, 2001 when the Illinois Gaming Board (IGB, the Board) formally revoked the license of Emerald Casino, Inc. (Emerald) pursuant to Section 5(c) of the Illinois Riverboat Gambling Act (The Act) and Subpart K of the Rules of the IGB (Rules). Emerald duly answered (Answer) the complaint for disciplinary action (complaint) and an Administrative Law Judge (ALJ) was appointed to hear the matters in dispute concerning the revocation.

Protracted hearings were held by Herbert Holzman, ALJ, until August 4, 2004 when he recused himself from further proceedings o the matter. On April 14, 2005 the undersigned was appointed as successor ALJ and continued the hearings until their conclusion. A short procedural history of Emerald and its Owner's license follows.

On July 9, 1992, Emerald, then known as H.P. Enterprises, was issued a three - year Owner's License by the IGB for a riverboat gaming operation in East Dubuque, Illinois. Subsequent renewals of that license were granted in July, 1995 and July, 1996.

On December 1, 1994, the Board issued a disciplinary complaint against Emerald for its failure to obtain prior Board approval to change its equity and debt capitalization and for failure to notify the Board of its source of funds. Emerald had entered into various loan agreements in July, 1994 that were not timely disclosed to or approved by the Board. Emerald was fined $30,000.00.

In June, 1997 IGB denied Emerald's renewal application for its failure to submit a responsive renewal application, significant compliance shortcomings and failure to adhere to the overall requirements of the Act. Emerald stopped gaming operations in July, 1997. Emerald requested an administrative hearing regarding the denial of its renewal application and in 1999, at the conclusion of hearings, the ALJ concurred with the Board and recommended that the Board take final action to deny the renewal of Emerald's license.

However, before the Board acted on the ALJ's recommendations, the Illinois General Assembly amended the Act by adding a provision that "A licensee that was not conducting Riverboat Gambling on January 1, 1998 may apply to the Board for renewal and approval of relocation to a new home dock location ... and the Board shall grant the application and approval upon receipt by the licensee of approval from the new municipality or county as the case may be in which the licensee wishes to relocate...". This provision, Section 11.2 of the Act, became effective June 25, 1999.

Emerald accordingly applied for renewal of its license and for relocation for its operations to Rosemont Illinois. IGB undertook an investigation of Emerald and its key persons and proposed stockholders. The Board denied the renewal of Emerald's license on January 30, 2001. Emerald took an appeal from IGB's denial of the license and the case was heard both by the Appellate Court of Illinois and the Supreme Court of Illinois. Both these courts agreed with Emerald's contention that "shall" is mandatory in Section 11.2 of the Act and that the Board had no discretion in terms of the renewal of the license. However, both courts specifically upheld IGB's authority and discretion in all other respects under the Act and specifically told IGB that it could pursue the revocation hearings, which had previously been instituted. (Philip N. Crusius v. The Illinois Gaming Board, et al., Case No. 98351 September 22, 2005) IGB accordingly modified its directive to the undersigned to pursue only the revocation proceeding and to discontinue any reference to the denial of the renewal which had been previously been heard as part of the same proceeding. The findings of fact and conclusions of the law, which follow, pertain, therefore, to the revocation.

Two lengthy and complete staff reports were prepared pertaining to the Board's revocation action. Both of those reports are included in the record and made available to Emerald as part of this proceeding. There were 59 hearing days in this matter. The record consists of 6498 pages. The Board offered 440 exhibits and Emerald offered 112 exhibits, all of which are made a part of this record. All subpoenas requested by Emerald were carried out except that I rejected efforts to call Chairman Jaffe as a witness in this proceeding, since he is one of the ultimate adjudicators. (R. 5223) The Inspector General also resisted a subpoena as to one of its investigations of a board employee. Emerald conducted interrogation as to that investigation through another witness. And in both instances Emerald made offers of proof which are part of the record. The Board made an offer of proof in lieu of cross-examining one of Emerald's witnesses. I did not deem any of the allegations in any of the offers of proof to be pertinent to the outcome of this proceeding.

I recommend to the IGB that it confirm its order of revocation against Emerald and that order be made final pursuant to the Act. My Findings of Fact and Conclusions of Law are as follows:

FINDINGS OF FACT

1. EMERALD AND ITS PRINCIPALS DISSEMBLED ABOUT ITS PLANS TO MOVE THE LICENSE LOCATION TO ROSEMONT, ILLINOIS.

Emerald's gambling operations at East Dubuque, Illinois had been financially unsuccessful for some time. At least since 1995 Emerald had been making efforts to move those operations either by obtaining permission from IGB or by lobbying to get legislation passed, which would allow such relocation. IGB did not have the legal authority to authorize such relocation.

(R. 2846)

In November, 1997 an entity known as Lake County Riverboat LP entered into negotiations with Emerald to create a joint venture for gaming operations in Lake County, Illinois. (R. 1880) On or about November 6, 1997, the parties entered into a non-disclosure agreement. (R. 1887) On November 12, 1997, the parties entered into a joint venture agreement. Neither of the agreements were ever disclosed to the IGB and were not discovered by the IGB until subsequent litigation between Emerald and the Davis Companies. (R. 473-75, 485-88, 2963) These negotiations were largely conducted by Joe McQuaid and Kevin Flynn on behalf of Emerald. Their roles in this matter will be further discussed below.

In 1997, Kevin Flynn and Victor Cassini, on behalf of Emerald met with Rosemont Mayor Donald Stephens at the mayor's office (R. 393, R. 5301-5304). At that meeting, Flynn and Stephens discussed the possibility of relocating the Emerald Casino operation to the Village of Rosemont, according to Stephens in his sworn statement and in his testimony in this hearing. (R. 395-96) Kevin Flynn acknowledged that he met with Mayor Stephens, but testified that they only talked about the Flynn's Blue Chip operation in Indiana. Kevin Flynn's testimony in this aspect was not credible. (R. 2431-32)

In October, 1998 Kevin Flynn and David Filkin, then Vice President and General Counsel of Duchossois Industries, met with other representatives of Duchossois to discuss legislative efforts which would allow the relocation of the Emerald Casino. (R. 1783) Kevin Flynn commented that the Village of Rosemont was "a no brainer" as far as relocation. (R. 1785-86) At or about that same time the Davis Companies of California were also interested in owning or investing in a casino in Illinois, particularly in Rosemont. Michael Colleran was a Vice President of the Davis Companies. (R. 1789) In December, 1998, Kevin Flynn agreed to sell an ownership interest in the Emerald operation to the Davis Companies and to the Duchossois group. The Davis Companies would purchase 37.5 percent of the Emerald operation, while the Duchossois group would purchase 20 percent of the Emerald operation. The parties agreed to cooperate to pass legislation that would allow the casino to relocate. (R. 1806-07) This was all set forth in the First Amended Complaint in the Davis litigation. In addition to the three way split between the Flynns, the Davis Companies, and the Duchossois group , a 5 percent ownership interest in the casino was reserved for "local investors". (R. 1806-07) In Mayor Stephens sworn statement to IGB of September 2000, Mayor Stephens testified that as to the 5 percent designated for local investors, "that was for me". (Stephens sworn statement at 69-70) At or about that same time, Filkin telephoned Kevin Flynn and Kevin Flynn confirmed to Filkin the terms of the agreement. (R. 1809-10) The IGB was not notified of any of these agreements at any time until the Davis Companies tried to enforce the agreements through litigation. (R. 1844-45)

Throughout 1998 and 1999, the Duchossois group and the Davis group were actively involved in and supported the legislative initiative to authorize Emerald's relocation. (R. 1815-16) The Village of Rosemont and Mayor Stephens also participated in the lobbying efforts in 1998-99 to pass the legislation allowing relocation of Emerald's license. (R. 5352) In his sworn statement Mayor Stephens stated "you get a bill down there and I can probably kill it with people that I know in the forty-five years I have been around. I can convince enough people to squash your bill unless it is something the public really wants." (Stephens sworn statement at 47).

Emerald repeatedly told IGB that it never considered Rosemont as its prospective site until after Section 11.2 of the Act was passed by the General Assembly. As late as the filing of its Verified Answer in this proceeding, paragraph 15, it maintained that position. Everybody else seemed to know differently. The legislative history of the debate during which Section 11.2 of the Gaming Act was approved, was replete with references to Rosemont as the designated city for the relocation.

Representative Hoeft said "We're [taking the riverboat] and putting it in Rosemont and anyone here that tells me that we're not doing that, pardon the pun folks, but you want to make a bet, because that is where this boat is going." (Transcript from May 21, 1999, Illinois House of Representatives debate on SB 1017, at 102). Senator Shaw said: "and most of us do not come from such rich districts as up in Rosemont and up in Arlington ...I do not have anything against Rosemont... [Now] the argument is going to be, but do I know it is going to Rosemont. Let me tell you this; Those of us who are elected to this Body we did not come out of the dust closet to get here: we understand this process." (Transcript from May 24, 1999, Illinois Senate debate on SB 1017 at 117)

Senator Welsh stated, "the question that we have to ask is why it is going where it is going. Is that really economic development or are we just cutting a deal that started out being dock site gambling for ---- to keep a few boats going... [W]e've come to some kind of - secret agreement that it is going to Rosemont. And to get it there, another person, who wanted it up in Arlington Heights, agreed to give up his contention that he deserved it in exchange for a piece of the pie... what we have here is akin to a run-away train." (Transcript from May 24, 1999, Illinois Senate debate on SB 1017 at 123)

It was not until July, 1999, that Emerald's attorney advised IGB that it intended to move its operation to Rosemont. (R. 182, 183)

In October, 1999, the parties who had cooperated to see that the legislation allowing the new location had passed were still cooperating with each other and with Mayor Stephens. A fundraiser for the Donald E. Stephens Committeeman Fund produced the following contributions:

a. American Trade Show Services Inc. -donated $25,000 to the Fund. Nick Boscarino- husband of a new Emerald investor, Sherri Boscarino, is a principal of that company. The Boscarino interests, persons who were called to testify in these hearings, asserted their Fifth Amendment rights and refused to answer any questions. The Individuals contributed $21,000 to the Fund.

b.
D & P Construction, which ended up a contractor for Emerald,
contributed $5,000 to the Fund.
c.
The Davis interests contributed $20,000 to the Fund.
d.
The Duchossois interests contributed $21,000 to the Fund.
e.
The Flynn interests contributed $25,000 to the Fund.

Loans to by Parkway Bank to the Fund were extensive. Apparently there was one gift of over $208,000 (R. 6095) As will be detailed below, principals of Parkway were included as secret investors in Emerald. These included its president, Rocco Suspenzi. Mr. Suspenzi as well as Jeffrey Suspenzi were subpoenaed to testify in this proceeding, but exercised their Fifth Amendment rights.

The refusal of Mr. Rocco Suspenzi and Mr. Jeffrey Suspenzi to testify at these board proceedings, notwithstanding their secret investment in Emerald, and notwithstanding their closeness to Mayor Stephens and his activities, entitled IGB to draw inferences from these political loans and contributions, notwithstanding the "legality" and "timing" of such loans and contributions.

Counsel for Emerald insisted that all of these contributions were legal and indeed they are. Illinois has no limit on contributions nor does it prohibit contributions from investors or would-be investors in the gaming industry. However, IGB was entitled to infer from contributions and their timing and the lobbying efforts acknowledged by the parties involved that there was indeed an agreement in 1998-99 to get such legislation passed through the General Assembly, to relocate the Emerald gaming operations to Rosemont, and to divide the pie in some kind of secret arrangement.

2. THE RENEWAL APPLICATION FILED BY EMERALD ON SEPTEMBER 28, 1999 WAS NEITHER ACCURATE NOR COMPLETE.

Joe McQuaid testified that as the responsible official of Emerald, he completed and filed the Renewal Application. He testified that he reviewed the instructions for the application carefully. (R. 3176-77) As would be detailed, Mr. McQuaid had extensive experience as the Chief Enforcement Officer and Interim Administrator of IGB for many years immediately prior to being employed by Emerald. Indeed he was the official of IGB who signed the first disciplinary action against Emerald in 1994, which resulted in the $30,000 fine against Emerald.

Notwithstanding Mr. McQuaid's experience and his testimony that he had reviewed the instructions, the application stated that none of the shareholders were public officials or relatives of public officials. A list of stockholders submitted to IGB included a relative of State Representative Ralph Caparelli, one of the prime movers of the relocation amendment to the Act, as well as two other public officials. McQuaid never asked any of the persons involved whether or not they were public officials and testified that he thought that it was not important to ask such questions because none of the stock purchased and transferred to these public officials had ever been approved by the IGB. Therefore, even though the proceeds of such sales and others were used by Emerald, McQuaid's position was that it was of no consequence who the stockholders were until the IGB finally approved the transfer. Neither McQuaid nor anyone else at Emerald had ever examined the Personal Disclosure Forms (PDF) which were submitted to the Board directly.

The application also requested that Emerald submit "all agreements, arrangements, and commitments related to proposed gaming facility and related projects". Emerald submitted five agreements, none of which were pertinent to this inquiry and stated it had not executed any other agreements. In fact, Emerald had executed a letter of intent with the Village of Rosemont; Emerald made no reference to any of the arrangements that it had made with the Davis interests (which were about to lead into a law suit filed by Davis).

The application specifically asked whether the licensee or any of its affiliates had been a party to any legal action, including pending or threatened litigation. Emerald did not include any information about the threatened litigation by the Davis companies, even though the Davis companies had already planned a complaint and notified Emerald of that fact.

One of the questions asked whether any current or proposed shareholders had been arrested, charged, indicted, convicted etc. of any felony or misdemeanor. Emerald answered by saying it relied on the PDF's that were submitted directly to the Board. Emerald thus sought to absolve itself of any responsibility for the identity of the stockholders other than perfunctory interviews by Mr. McQuaid. As will be detailed below, several proposed stockholders were covered by that question, but not disclosed to IGB.

In July and August 1999 Rosemont and Emerald entered into several letter agreements relating to the development of the proposed casino on the Rosemont property. (R. 3229) These letter agreements were not disclosed to IGB until sometime in 2000. IGB became aware of these letter agreements with Rosemont in September, 2000, pursuant to a letter received from the attorney for Rosemont. Emerald did not disclose these agreements with IGB until December, 2000. (R. 3220)

3. EMERALD FAILED TO NOTIFY IGB OF ITS CONSTRUCION ACTIVITES OR ITS LEASE AND DEVELOPMENT AGREEMENT WITH ROSEMONT IN A TIMELY FASHION.

It would appear that after Emerald and its principals were successful in obtaining the amendment to the Act from the legislature pertaining to relocation, it decided that the rules and procedures of IGB need not be given too much concern. On July 21, 1999, Rosemont and Emerald had entered into a Letter of Intent regarding the construction of a casino at the site agreed upon between them. The Letter of Intent was "intended to memoralize key items that had been agreed to which are to be incorporated into a lease and development agreement". (R 1235-36) This Letter of Intent was extended and augmented by various letter agreements signed in August 1999 and December 1, 1999. Emerald did not include the Letter of Intent or any of the documents previously signed with Rosemont in its September 24, 1999 application. Indeed none of those agreements were sent to IGB by Emerald until December, 2000 more than one year after commencing construction and after IGB had obtained these letters from the Village of Rosemont in September, 2000. (R. 1235-36)

On February 10, 2000 Emerald submitted a fully executed copy of the Lease and Development agreement between Emerald and Rosemont. That Agreement contained many of the identical terms originally memoralized in the July 21 Letter of Intent. This February submission to IGB was long after Emerald had commenced construction at the site, and Rosemont had commenced construction of a parking garage. Indeed, on or about February 29, 2000 Emerald informed IGB that it had ceased all construction activities at the site as of that date.

The Lease and Development Agreement contained many provisions violative of IGB's rules and procedures. That Agreement allowed the Village of Rosemont to waive the requirement that Emerald obtain necessary regulatory approval from IGB prior to commencing construction of the casino. That Agreement committed Emerald to fund the construction of the parking garage addition even though Emerald did not have sufficient financing dedicated to do so. That Agreement failed to provide Emerald the ability to exercise appropriate control or supervision over the management of the contractor or sub-contractors for the casino and parking garage construction project. At the hearings, Emerald took the position that submission of construction contracts or review of construction contractors was not necessary because IGB would always have an opportunity to reject anything that had been built in the final instance before the "casino" became a "casino". Such a position is contrary to the statute.

At least one of the subcontractors doing work on the casino construction project was a company known as D & P Construction. The FBI in its memorandum of April 16, 2003 identified D & P Construction as controlled by Peter and John DiFronzo. The Memorandum stated that D & P obtained contracts through illegal payoffs or intimidation (IGB Exhibit 397). During the hearings, none of the witnesses, either for Emerald or for any other party would admit that they hired D & P Construction.

4. KEVIN FLYNN, AS A MAJOR STOCKHOLDER AND PROPOSED CHIEF EXECUTIVE OFFICER OF EMERALD, CONSISTENTLY DISSEMBLED TO IGB AS TO HIS ACTIVITES ON BEHALF OF EMERALD.

Kevin Flynn identified himself as a stockholder of Emerald in December, 1996. However Kevin Flynn, both in sworn statements and letters to the IGB, insisted that he did not become involved in the activities or management of Emerald until June of 1999 when he was appointed to the new post of Chief Executive Officer of Emerald.

As far back as November, 1997 Kevin Flynn had negotiated on behalf of Emerald with the Lake County Riverboat L.P. to discuss a joint venture for a riverboat in Lake County Illinois. Kevin Flynn acted as the primary spokesman for Emerald in those negotiations. (R. 1890-91, R. 1900-01) In November, 1997 Emerald and Lake County Riverboat entered into a nondisclosure agreement and a joint venture agreement to pursue a Lake County operation. (R. 1887) These agreements and Kevin Flynn's role in negotiating these agreements were not disclosed to IGB. IGB only become aware of the circumstances through a review of material produced in the Davis litigation at a much later time. (R. 473-75, R. 485-88)

In 1997, Kevin Flynn met with Mayor Stephens at the Mayor's office. They discussed the possibility of moving the Emerald Casino operation to Rosemont. (Stephens' sworn statement at 12; R. 5301-04) Kevin Flynn insisted that Rosemont "was not anything considered as far as I know until the legislation passed" in 1999. (R. 2439) Kevin Flynn lied about his 1997 meeting with Mayor Stephens and the possibility of moving to Rosemont.

In October, 1998, Kevin Flynn met with representatives of Duchossois Industries including David Filkin, Vice President and General Counsel for Duchossois. Kevin Flynn stated at that meeting that Rosemont was a "no brainer" as to relocation. (R. 1785-86) While Kevin Flynn testified that he was just there listening, that he "had no role" as to Emerald. (R 70) Filkin and others testified that Kevin Flynn was the primary spokesman for Emerald. (R 1785-86) In the Fall of 1998 Kevin Flynn told Filkin that any negotiations or deal among Emerald, Davis, and the Duchossois group, need be kept secret. (R. 1802-03) Kevin Flynn had meetings with representatives of the Davis Companies around the same time.

(R. 1793-98) At a meeting on December 1, 1998, Kevin Flynn agreed or reached an understanding to sell an ownership interest in the Emerald operations to the Davis Companies and to the Duchossois group. (R. 246364, R. 1799-1801) (R. 1806-07) In addition to agreeing about the division between the three groups at the meeting, a 5 percent interest was reserved for "local" investors. (R. 1806-07) Mayor Stephens in his sworn statement to IGB testified that the 5 percent designated for local investors, "that was for me." (Stephens sworn statement 69-70)

After talking to the parties representing Davis, Filkin called Kevin Flynn and Kevin Flynn confirmed that the terms of the agreement that had been outlined to Filkin were correct. (R. 1809-10)

In 1998 and 1999 the Duchossois group and the Davis Companies were actively involved in lobbying the legislature to allow Emerald to relocate. (R. 1815-16)

After the legislation was passed which allowed the relocation, Filkin learned that Emerald might not abide by the agreement that had been reached in December 1998. (R. 1814-15) McQuaid advised Filkin in the summer of 1999 that the Duchossios group would be able to invest in Emerald but that the Davis Companies may be cut out of the deal. (R. 181617)

On September 20, 1999, Emerald organized a meeting with the Duchossios group. At the meeting Kevin Flynn told the Duchossios group that they would not be given the opportunity to invest in Emerald regardless of the prior agreement or understanding. Kevin Flynn stated that, "things change." (R. 1817) (R. 2495)

Notwithstanding all these negotiations and agreements, Kevin Flynn repeatedly denied that he had made any kind of deal with the Davis Companies or the Duchossios group. (R. 423-24; Kevin Flynn sworn statement 107-08) Indeed, in all his presentations to IGB and in subsequent litigation with the Davis Companies, Kevin Flynn insisted that he had nothing to do with running Emerald until June, 1999.

Kevin Flynn attended four of the five Emerald Board of directors meetings held between April, 1997 and April, 1999. Kevin Flynn insisted that the only reason he was at the Emerald meetings was because they coincided with the dates of the Blue Chip Casino Board meetings. Kevin Flynn testified that at some Emerald meetings he would get up and leave and sometimes he would stay. Donald Flynn gave similar testimony about Kevin Flynn's attendance at board meetings. Donald Flynn, father of Kevin and principal stockholder of Emerald, was not in town often and apparently relied heavily on his son to represent his interest. In fact, only one of the five Emerald Board of Directors meetings coincided with a Blue Chip Casino Board of Directors meetings. (R. 499-501; R. 2451)

In sum, the record is replete with clear and convincing evidence that Kevin Flynn dissembled to IGB about his activities on and in behalf of Emerald prior to June of 1999. Whether his reasons for such dissembling was to establish deniability of responsibility for agreements reached with such groups as the Davis Companies and the Duchossios group or negotiations with other dissenting stockholders or to deny how long Emerald was involved in its desire to relocate to Rosemont, he did not tell the truth to IGB.

Between April 1996 and 1999 Kevin Flynn was the CEO of Blue Chip Casino, a gambling boat operating in Michigan City, Indiana. In 1999, Blue Chip was sold to Boyd Gambling. (R. 5704-05) On June 27, 1999 as part of the sale of Blue Chip to Boyd, Kevin Flynn created a company known as Field Street. That company entered into a consulting and lobbying agreement with Boyd. Under this agreement, known as the Field Street Agreement, Kevin Flynn agreed to lobby to prevent tribal gambling from entering into southwest Michigan; such gambling would compete with Blue Chip in Michigan City. The agreement was also to cover activities in Indiana and Illinois. (R. 5726-27) Under the agreement Kevin Flynn was to be paid $500,000 a year plus expenses. If Kevin Flynn was successful in keeping tribal gaming out of southwest Michigan for five years, he would be paid five million dollars as a bonus. One of the activities that Kevin Flynn agreed to pursue was to facilitate the funding of money from Boyd to grass roots anti-gambling interests that were opposed to gambling and the expansion of gambling in Michigan. (IGB Exhibit 306, page 129, R. 572627)

Neither Kevin Flynn nor Boyd disclosed the existence of the Field Street Agreement either to Indiana or Illinois authorities. The Indiana authorities determined that it was Boyd's responsibility to disclose the agreement and for such non-disclosure the Indiana Gaming Board fined Boyd the equivalent of one million dollars. IGB first learned of the Field Street Agreement in late 1999 on receipt of a telephone call from the Indiana Gaming Commission. (Supplemental staff report at 63) Kevin Flynn did not disclose the existence of the Field Street Agreement until June 29, 2000. (IGB Exhibit 210) Whether such an agreement would or would not be against public policy under Illinois precedents, such a contract could affect the gaming industry and the reputation of persons in the gaming industry in Illinois.

5. EMERALD FAILED IN ITS OBLIGATION TO PREVENT INELIGIBLE INTERESTS FROM INVESTING IN ITS CASINO. AS A RESULT, NUMBEROUS INELIGIBLE INTERESTS WERE SOLD STOCK IN THE CASINO AND THE PROCEEDS OF SUCH SALES WERE USED TO FINANCE CONSTRUCTION OF THE NEW CASINO FACILITY AT ROSEMONT.

Throughout these proceedings Emerald insisted that it was IGB's obligation to investigate the eligibility and background of investors in the casino, since no stock purchase was complete until IGB approved it. It claimed its only responsibility was a very perfunctory review of the eligibility of the proposed stockholders; it caused such stockholders to fill out a Personal Disclosure Form 1 (PDF) and submit it directly to IGB. Emerald insisted that it could not look at the PDF's, since they were confidential. As a result, at least three of the individuals to whom stock was sold were ineligible because of their status as public officials or relatives of public officials. (R. 233) This has been covered above.

In addition to persons ineligible to be stockholders as a result of the public official disqualification, several persons and interests who had some association with organized crime were allowed to purchase stock in Emerald. In a complicated transaction involving a trust instrument with his daughter and a loan from Parkway Bank in the amount of $1,500,000, Nick Boscarino was allowed to acquire an interest in Emerald. Boscarino did business with the Village of Rosemont and was a partner in a company with Mayor Stephens' son, Mark Stephens. The company cleans office buildings including the Rosemont Exposition Center. Mayor Stephens acknowledged that he had been close to Nick Boscarino until Boscarino was indicted and convicted for defrauding the Village of Rosemont. (R. 5330-32)

Boscarino, his mother Ida L. Hansen, and his wife were all subpoenaed to testify in this proceeding; all of them took the Fifth Amendment and refused to answer questions regarding the transactions or anything else about their background.

Vito Salamone was identified by the FBI as being close with members and associates of organized crime. (R. 1353) The stock certificate issued by Emerald was originally in the name of Vito Salamone but was changed to Joseph Salamone, his brother. Whatever the effect of this crude change of ownership, there was in fact a secret memorandum of agreement, not provided to the Gaming Board, which showed that both brothers, as well as officers of the Parkway Bank and Trust Company, were sharing in the ownership interest purchased in the name of Joseph Salamone. Rocco Suspenzi was the chairman of Parkway Bank and Trust, and he as well as the Salamone brothers and Jeffrey Suspenzi were all subpoenaed to testify in this proceeding. All of them refused to testify, claiming their Fifth Amendment rights when asked questions about the secret agreement or any other questions pertaining to Emerald. Parkway Bank served as Mayor Stephens' bank in many other transactions.

Agent John Mallul (Mallul) testified as a special agent employed by the Federal Bureau of Investigations since 1986. In 1988, Mallul was assigned to an organized crime squad and has been assigned to that position since that time. For the last two years Mallul has been a supervisory special agent within the organized crime division of the FBI. (R. 2178) Mallul testified as to various terms used to describe organized crime in Chicago. (R 2182-85) Mallul directed the preparation of five letterhead memorandums, which were introduced into evidence. (R. 2186-94) These memoranda, from confidential sources, provided information regarding Nick Boscarino and the Salamone brothers and their relationships to organized crime. They also described activities of Peter DiFronzo and Joseph DiFronzo and D & P Construction Company, one of the contractors performing work at the Rosemont casino site. (IGB Exhibit 251, 252, 397, 396) Agent Mallul testified that he was satisfied as to the veracity and credibility of the source information which was used in these memoranda. (R. 2199-2200) Agent Mallul's testimony was credible and the FBI had determined to its satisfaction that the sources of the material contained in the memoranda were credible. IGB was entitled to use this information to make decisions concerning Emerald's conduct and its relocation move to Rosemont. This is particularly true since most of the individuals identified in the FBI memoranda that were involved in stock ownership in Emerald or construction activities in Rosemont refused to testify in these proceedings.

Mayor Stephens, who was identified in several of the FBI memoranda, vigorously denied any associations with organized crime. He stated that he severed his personal relationship with Mr. Boscarino after Boscarino was indicted. He acknowledged knowing Mr. DiFronzo (Sworn statement at 99-100) and others identified by Mallul. Mayor Stephens acknowledged that he at one time purchased a hotel from Sam Giancana who was then the head of the Chicago Outfit. (R. 5368-71) Mayor Stephens acknowledged that he had brushes with law enforcement early in his career.

(R. 5337) However, he vigorously denied that he was present at a meeting where organized crime figures planned their involvement in the Rosemont Casino. He also denied that he had anything to do with selecting shareholders in Emerald or contractors that Emerald hired for the construction. He did not make any effort to explain his earlier statement to IGB that under the arrangement that Emerald made prior to the amendment allowing the relocation to Rosemont, 5 percent of the stock was set aside for him. (Stephens statement at 69-70).

It is not necessary to resolve the conflicts between Mayor Stephens' testimony and the information provided by the FBI. It is not even necessary to resolve the conflict between Mayor Stephens testimony as to the selection of shareholders at the hearing as compared to his earlier sworn statement. There was sufficient credible evidence about Emerald's stock transactions, about its construction activities and about its lack of candor in its statements and submissions to IGB to warrant the revocation action taken by IGB.

Similarly it is not necessary to rely on the tape of a conversation between James and Michael Marcello, which has been recorded by the FBI pursuant to court authorization. (R. 5921-24) James Marcello is a member of organized crime and was in prison at the time the tape was made. Michael Marcello was visiting his brother and the tape of the conversation was made at that time. An approximate two and one half minutes portion of recorded tape was presented at the hearing and agent Mallul stated that no other portion of the conversation pertained to Mayor Stephens or the casino in Rosemont. (R 5932) The tape and the accompying testimony of agent Mallul were not useful in resolving any of the controversies involved in this proceeding. The tape itself had very poor fidelity and the brothers were speaking in some kind of cryptic code. Agent Mallul had to testify as to the words and as to the true meaning. Even if he were confident as to both fidelity and his interpretation of code words and phrases, there is no way that anybody could verify the facts related in the conversation. The brothers may have been puffing their own exploits and influence to each other, or they may have been deliberately trying to confuse law enforcement or anybody else that might be overhearing their conversation. In any event, notwithstanding the admissibility and relevance of agent Mallul's testimony concerning this conversation, I give it no weight in my findings of fact.

6. THERE WAS NO EVIDENCE OF BIAS ON THE PART OF THE STAFF OR OF THE MEMBERS OF IGB IN THIS REVOCATION PROCEEDING.

Throughout the proceedings, attorneys for Emerald insisted that staff and members of IGB were biased against Emerald. These bias challenges raised questions about everyone from former Governor James Edgar to Chairman Aaron Jaffe to the staff of the U.S. Attorney's office, to the various ALJ's that were involved in this proceeding and to numerous members of the IGB staff. No evidence was presented to back up the charges. Emerald presented some evidence concerning a "voodoo doll" which was given to a departing employee on the day of her departure from IGB. She allegedly stuck a pin into it and stated that the pin was for Joe McQuaid. (R. 4481-82) There was never any connecting evidence to show that if this incident took place, it was anything more than jest or an expression of irritation against Mr. McQuaid who had previously been the employee's supervisor. There was nothing to indicate that this employee did anything, said anything, or wrote anything which affected the decision to revoke Emerald's license because of any bias.

It is always unfortunate when lawyers decide to challenge the tribunal or the process rather than present their case. In this instance, Mr. Ficaro, then attorney for Emerald, delivered his opening statement in this proceeding by turning his back to the presiding officer, ALJ Holzman, and announcing to the assemblage of reporters and others who were present in the room "I would like to welcome everybody to Kangaroo Court. This proceeding is a sham." At the same time, various computers were displayed to the audience showing kangaroos jumping on the screen.

Four separate motions to disqualify previous ALJ Holzman were made; he granted the fourth one. I denied three separate motions to disqualify me; two were taken to the Gaming Board for review. Motions were made to disqualify Chairman Jaffe, and add him as a witness. The motions were all denied. On two occasions I had to remonstrate with Mr. Clifford to behave in a professional manner. (R 4919-20, 5084-85)

CONCLUSIONS OF LAW

1. When gambling was first authorized in Illinois in 1990, the Legislature

declared, that gambling would only be good for Illinois

"if public confidence and trust in the credibility and integrity of the gambling operations and the regulatory process is maintained. Therefore, regulatory provisions of this Act are designed to strictly regulate the facilities, persons, associations and practices related to gambling operations pursuant to the police powers of the State, including comprehensive law enforcement supervision." (230 ILCS 10, Riverboat Gambling Act)

2. IGB rules adopted pursuant to the Act provide that licensees shall be subject to revocation of their licenses

"for any act or failure to act...that is injurious to the public health, safety, morals, good order and general welfare of the people of the State of Illinois or that will discredit or tend to discredit the Illinois Gaming industry of the State of Illinois. (IGB Rules 3000.110(a))

As examples of such acts which can lead to revocation, the rule provides

in subsection 5:

"associating with, either socially or in business affairs, or employing persons of notorious or unsavory reputation or who have extensive police records, or who have failed to cooperate with any officially constituted investigatory or administrative body and would adversely affect public confidence and trust in Gaming."

Section 3000.140(a) of such Rules states that "Board licensees and applicants for licenses issued by the Board shall have a continuing duty to disclose promptly any material changes in information provided to the Board." Section (b) of that same rule requires licensees to disclose agreements, whether oral or written relating to "construction contracts", "agreements with or involving Key Persons", "agreements to sell… or otherwise transfer or share", "agreements in lieu thereof, relating to ownership interest or interest in an owner's license."

Subsection (c) of the same rule specifically provides that the failure to meet the requirements of subsection (a) or (b) may result in discipline "up to and including revocation of a license."

Emerald insist that revocation of its license was too harsh a remedy even some or all of the alleged conduct occurred. It suggests that transgressions of other riverboat gambling licensees were disciplined by settlement short of revocation of their licenses. Indeed, the instant matter was tentatively settled at one point and the hearing process was held in recess; however Emerald violated the terms of the tentative settlement, and the hearings were resumed. In any event the Board has discretion to judge the seriousness of the transgressions and the fitness of the penalty that should be applied. The fact that no license had been revoked before would not cause the revocation authority of the Board to lapse.

The record discloses that numerous lawsuits were filed in both federal and state court seeking to halt or terminate these proceedings and to challenge the Board's authority to act. As previously indicated, both the Appellate Court of Illinois and the Supreme Court of Illinois specifically found that IGB had continued authority to engage in these disciplinary proceedings for revocation notwithstanding the action of the legislature in making the renewal process for Emerald a mandatory matter. Most recently, Judge Thomas P. Quinn of the Circuit Court of Cook County and Judge Matthew T. Kennelly of the United States District Court for the Northern District of Illinois specifically refused to halt these proceedings or to intervene. (Emerald Casino, Inc. v. Aaron Jaffe, et al Case No. 05 C 4077, October 12, 2005)

3. Section 3000.1140(a) of the Rules states "the licensee bears the burden of

rebutting the charges contained in the complaint by clear and convincing

evidence." Section 3000.1145(a) states that

"the hearing need not be conducted according to technical rules of evidence. Any relevant evidence may be admitted and shall be sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action."

Hearsay evidence, which might normally be inadmissible in a civil action, thus was allowed to be admitted into evidence. Specifically, the FBI reports and the testimony accompanying such reports by agent Mallul were admitted under the evidence rules adopted by IGB. The reports which were identified as reliable by agent Mallul and which were made in the course of law enforcement procedures of the FBI, were admitted and given appropriate weight. The tape conversation between the Marcello brothers, while admitted, was not given weight because of the circumstances described above.

4. Case law of this state and of other states where gambling is allowed, is replete with statements of reviewing courts that the regulatory authorities of gambling have wide discretion in exercising their judgement on matters relating to licensure and revocation thereof. See Archview - Casino Cruises Inc. v. the Illinois Gambing Board 263 ILA 3rd 375 (1994); Balmoral Racing Club v. Illinois Racing Board 240 ILA 3rd 112 (1991); Oklahoma Park Inc. v. Oklahoma Horseracing Commission 716 P2d 666 (1986); Circuit Court of Virginia v. City of Richmond and Harold R. Wall, 1982 WL215-291 (VA Circuit Court, (1982)).

Section 3000.1105 of IGB Rules provides that "All Board licensees have a continuing duty to maintain suitability for licensure. A Board license does not create a property right, but is a revocable privilege granted by the State contingent upon
continuing suitability for licensure." This provision has been in the Rules since 1993 and makes clear IGB’s authority to revoke a license if it finds that the licensee is not suitable to maintain its license.

At least since 1997, when Emerald first lost its license, it and its principals have played fast and loose with the law and with the rules and regulations of IGB. Its modus operandi seemed to be "Catch me if you can", rather than abide by the legal and ethical standards that the law imposes on those privileged to get a gambling license.

Kevin Flynn flat - out lied and others dissembled as to when Emerald first attempted to move its gambling operations to Rosemont. Instead of advising IGB of its plan to sell interests in it s operations to others, Emerald claimed that "Letters of Intent" do not count as anything and that Kevin Flynn did not have "authority" to make such deals. When Emerald was confronted with undeniable facts that persons ineligible by law to be stockholders because they were public officials or related to public officials, Emerald said it was IGB's responsibility to determine such facts. When Emerald was confronted with evidence that persons associated with organized crime had obtained interests in Emerald's operation, Emerald's defense was that it was IGB's responsibility to determine such facts and that such stock transactions were not binding. When asked about making Joe McQuaid its principal enforcement officer even before he had gone off the State Police payroll for his terminal leave, (R. 2607) Emerald insisted that it was not against the law at that time. When Emerald was asked about the propriety of the Field Street Contract and why it was not reported to either the Indiana or the Illinois authorities, Emerald insisted that it was somebody else's responsibility, not Kevin Flynn's.

Any one of these defaults probably would have been sufficient to justify IGB's action in revoking Emerald's license. The sum of the parts far exceeded the making of a prima facie case against Emerald's suitability. The rebuttals by Emerald were wholly insufficient. The operation of gaming by Emerald in Rosemont would greatly undermine "public trust and confidence in that credibility and integrity of the gambling operations and of regulatory process" in Illinois.

I recommend that IGB make permanent its order of revocation and that any efforts by Emerald to engage in gambling in Illinois at any location be denied.

Dated : November 15, 2005

Abner J. Mikva
Administrative Law Judge

Thanks goes out to Jim McGough, Director of the Laborers for Justice, for bringing this to my attention. You can find a lot more additional information at IPSN .

Sunday, November 06, 2005

Chicago Mob still in Vegas?

As political donors go, few are as colorful as Rick Rizzolo - a Las Vegas nightclub owner who contributed $1,500 in May to Orange County Sheriff Mike Carona's re-election campaign. Rizzolo, 47, owns the Crazy Horse Too topless club, which was raided in January by federal agents who arrested a shift manager on racketeering charges. A federal indictment in Nevada declared the club a "racketeering enterprise."

Crazy Horse Too has been under investigation since August 2001 for suspected fraud, illegal sexual activity and drug violations. Court documents also allege that Rizzolo repeatedly dined with mob underboss Joey "The Clown" Lombardo in Chicago - who disappeared after being indicted on murder charges. Court records, quoting the Chicago Tribune, add that Rizzolo also rubbed shoulders with high-ranking mobsters John "No-Nose" DiFronzo and his consigliere, Joe "The Builder" Andriacchi.

Besides his reported mob connectionsWhen the Mob Ran Vegas, Rizzolo has a criminal record: he pleaded guilty in 1985 to battery for a baseball bat attack on a Crazy Horse patron, who suffered brain damage, records show.

Carona, who may be facing his toughest election in 2006 because of sex scandals and corruption charges surrounding his administration, declined to comment Wednesday. His political adviser Michael Schroeder said the campaign will look into the Rizzolo contribution and may return the money. Rizzolo owns a $1.2 million home in Newport Beach. "Obviously, Sheriff Carona had no idea about these alleged connections," said Schroeder. "No campaign has the resources, from the governor, the president, on down, to investigate every one of their donors."

However, Robert Stern, president of the nonpartisan Center for Governmental Studies and former general counsel to the California Fair Political Practices Commission, said Carona cannot claim ignorance. "Absolutely, they should be screening all the contributions to make sure they are not embarrassed," Stern said. "Candidates who say, 'I don't look (at) who contributes to me,' they are being foolish."

Phone messages left at Rizzolo's office at the Crazy Horse as well as with his Las Vegas attorney, Anthony Sgro, were not returned.

First elected in 1998, Carona has been slammed in recent years by criminal investigations into his command staff; sex allegations revealing a frat-boy atmosphere at sheriff's administrative offices; and a loss of credibility among his rank and file.

Recently, Carona was accused in two county liability claims of pressuring female relatives of former chief of staff George Jaramillo to have sex with him or accompany him to San Francisco. Jaramillo himself was indicted on state charges of using department resources to benefit a Newport Beach company that gave him money. The owner of that company, Charles Gabbard, admitted last year that he also funneled as much as $29,000 in illegal donations to Carona's 2002 campaign. Meanwhile, a sheriff's captain is facing criminal charges for soliciting donations from sheriff's employees for Carona's war chest, a violation of state campaign laws.

In each case, the sheriff denied wrongdoing or blamed others who he said acted behind his back.

Carona, through Schroeder, said he met Rizzolo two or three times but knew him only as someone from Newport Beach. Campaign documents initially listed Rizzolo as "owner, nightclub." Orange County political watchdog Shirley Grindle in late August contacted the Registrar of Voters Office and noted the nightclub should be identified in the financial disclosure. The documents were amended by the campaign last week to read "president/CEO Rizzolo Corporation." No such corporation could be found in California or Nevada.

Rizzolo's past is well-documented on the Internet, in Las Vegas newspapers and federal court records. He is a heavy contributor to Las Vegas City Council members, the district attorney and Nevada judges. His nightclub is legendary in the adult-entertainment world - and well-known to police and paramedics.

"For years, the management and 'security staff' of the Crazy Horse has been infested by a rogues' gallery of thugs, thieves, drug pushers and corrupt ex-cops. Most, if not all, have well documented ties to organized crime figures," said court papers filed by attorneys in a lawsuit against the nightclub. "All of this has nurtured a culture of violence marked by robberies, beatings and even death."

The lawsuit, as well as the federal indictment, were spurred by allegations of the beating of tourist Kirk Henry, who was left paralyzed from the neck down after he disputed a nightclub tab in September 2001. Crazy Horse lawyers have found a cab driver, also a chauffeur for the club, who said he saw Henry fall by himself and hit his head on the curb.

According to the indictment of shift manager Robert D'Apice, patrons who disputed fees demanded by dancers were threatened or physically assaulted by male staff members, amounting to extortion or robbery. The dancers paid a percentage of their tips to managers and staff members at the end of their shifts. The indictment indicates that federal agents are trying to determine whether D'Apice and club employees overcharged patrons for service, food and beverages; were involved in bringing women from outside Nevada to engage in prostitution and aided the distribution of illegal narcotics within the club.

Thanks to TONY SAAVEDRA and CHRIS KNAP

Monday, October 03, 2005

Profile: Harry Aleman

He's known as the ultimate iceman -- a cool, calculating mob killer whose brains and brutality are matched only by his stubborn refusal to rat out others. But to hear it from reputed hit man Harry Aleman -- whose dark, penetrating eyes once struck terror into hearts -- he's really an old softy, just trying to get by while serving a 100- to 300-year prison sentence.

He breaks into a smile at the thought of his first great-grandchild paying a recent visit ("It was something to see"), shakes his head at the hurricane devastation in New Orleans ("A f------ shame"), contemplates Jesus' suffering in the movie "The Passion of the Christ" ("This guy had balls this big") and longs for freedom and living out his final years with his family ("They sustain me").

During an exclusive interview with the Chicago Sun-Times at the Western Illinois Correctional Center, about 250 miles from Chicago, the convicted killer spoke about his personal and professional lives and admitted being affiliated with the Chicago mob -- when it existed. "It's over," he insists. "It's done."

He also says he has never killed anyone and is doing time for someone else's crime.

In fact, Aleman hints that new evidence pointing to his innocence will emerge in an upcoming court filing. One of his lawyers later explained that Aleman will be seeking a new trial based on "newly discovered evidence" that he won't yet discuss.

Authorities regard Aleman's claims of innocence and a frameup as ridiculous. "I think he's convinced himself he's a victim, which people often do when they've been locked up for as many years as Harry has," said Cook County prosecutor Scott Cassidy. "There was evidence that he was a hit man for the mob, and I think he relished that role."

In a landmark case handled by Cassidy, Aleman was convicted in 1997 of shotgunning to death a Teamsters union steward who once was married to Aleman's cousin. It remains Aleman's sole murder conviction, although he once was indicted in another case and is suspected in 15 to 20 or more slayings. "Never, never," he said, when asked if he has ever killed anyone. "And they know who killed them -- but he's dead. They don't get raises or elevated blaming a dead person."

Aleman said he was framed because he would never flip on fellow hoodlums as local and federal officials pressed him to do. He said he maintained that obstinate attitude during more-recent prison visits by investigators.

It's not totally clear why Aleman -- a thin but taut man of 66 with graying, combed-back hair and well-groomed nails -- agreed to speak. A reporter wrote him many months ago, and Aleman recently agreed to talk. He said he has never granted an interview before. But the three-hour sit-down came as Aleman lays the groundwork to get a new trial, he faces a December parole hearing, and a massive federal investigation bears down on some of his old mob associates for crimes stretching back decades.

"I could be a target; I don't know what's in the FBI's mind," said Aleman, who's prone to gesturing and raising his voice when trying to make a point.

"For all I know, they're going to keep indicting me for murders" until he flips.

Thawing out

Harry Aleman wants hot chocolate.

Technically it's still summer, but the frigid rain pelting Aleman's medium-security prison, population 1,900, indicates otherwise. Aleman suggests that the reporter who came to visit him go to the vending area and get a hot chocolate -- and a coffee for "yourself." Then he remembers: You need a special vending card, so that's not an option.

He's hungry, apparently having missed lunch for this meeting. But he's still polite and friendly. "What can I do for you?" he asks after small talk about a long-ago hunting and fishing excursion out West.

Aleman is reminded it was he who wrote the reporter earlier in the month saying he had something "exceptionally newsworthy" to discuss.

"Where's the letter?" he asks.

In the car.

"Did the FBI send you?"

No.

The meeting is taking place in a small office with a desk, typewriter, phone and a few filing cabinets. The walls are tan cinder block. The floors are pale tile. Aleman is wearing a blue button-down prison-issued shirt tucked into darker prison-issued pants. He's carrying a coat. He and the reporter are alone, but just outside the closed door is another desk and, at times, a guard. There'll be no trouble, however. Aleman isn't regarded by corrections officials as problematic.

Aleman begins speaking about himself, claiming he was "out and out railroaded" and prosecuted for no other reason than "just to get Harry."

William Logan, the Teamsters official, was murdered in 1972, and an eyewitness, Bob Lowe, testified during a 1977 trial that Aleman was the trigger man.

Aleman was acquittedWhen Corruption Was King: How I Helped the Mob Rule Chicago, Then Brought the Outfit Down, and later it was determined that the judge had been bribed with the help of mob lawyer Bob Cooley, who later became an informant.

Although the law bars "double jeopardy" -- trying someone for the same crime twice -- Cook County prosecutors won a new trial as the courts determined there was no "jeopardy" the first time because the case was fixed.

Aleman still is indignant over the ruling, noting that two white men who once denied killing black youngster Emmett Till in 1955 and were acquitted in his race-inspired murder later confessed in a magazine article. But they couldn't be retried because of double jeopardy.

Aleman was tried again in 1997 -- again with Lowe's help -- and convicted. A book about Lowe and his long road to justice, Everybody Pays, came out a few years ago.

Aleman, though, questions Lowe's credibility, mentioning his personal troubles and asking a "hypothetical" question: If a killer "in the movies" made eye contact with an eyewitness to a murder, what do you think would happen to that eyewitness? "You kill him," not let him go, Aleman says.

'I didn't feel nothing'

Aleman's other allegation -- raised unsuccessfully by his defense team in the 1997 trial, at which Aleman never testified -- was that William "Butch" Petrocelli really killed Logan. Petrocelli had been secretly dating Logan's ex-wife, and he and Logan had fought, Aleman said. Petrocelli also was a reputed hit man. Aleman said they once were best friends, and he described Petrocelli as "my partner." Petrocelli disappeared in late 1980, and his mutilated body was discovered several months later.

Although Aleman was jailed at the time -- he has spent most of the last 27 years in custody for various crimes -- questions have been raised about whether he ordered the hit because his old pal was holding back money meant to take care of his family.

Aleman dismisses that theory, saying, "If he was holding back money, I wouldn't have known about it because my family was taken care of."

Theories about Petrocelli's murder also have centered on Petrocelli possibly shaking down people in a mob boss' name, without his knowledge, then keeping the cash.

Aleman, though, claims Petrocelli was killed by mobsters because it was found out he was a "rat."

How was that discovered? "People in the neighborhood" began asking questions about why Aleman got sent away on a particular beef and Petrocelli didn't, Aleman said, and "it got to the right ears."

Whose?

"Whoever," Aleman says.

Aleman believes -- it's not clear exactly why he believes this -- that Petrocelli was in trouble with the law in the late 1970s, so a relative, a policeman, persuaded him to flip. And then the government didn't want to admit Petrocelli was the Logan killer, Aleman says.

Cassidy, the Cook County prosecutor, said, "I have no information to support that allegation" of Petrocelli being an informant. The feds wouldn't comment. "The government wants everybody to be a stool pigeon ... and I'm never going to become a stool pigeon," Aleman said. "I don't want to disgrace my family."

The government doesn't "respect" that stance "because they've had so much success turning over hard-core guys," Aleman says. "The guys out there [still on the street] I have to think twice about. You're not stupid."

How did he feel when Petrocelli died? "I didn't feel nothing," Aleman says. "I wish they would have got him and made him confess, then exile him. Killing him didn't help me at all. I'm still languishing in prison."

No more mob

The feds hope to solve 18 old mob hits as part of their ongoing probe. One of those is Petrocelli's murder.

The indictment fingers notorious loan shark Frank Calabrese Sr. as a participant, saying he "and others committed the murder of William Petrocelli in Cicero."

Aleman has not been implicated in any of the 18 killings, or any of the other crimes listed in the indictment, but curiously, he is mentioned in the document as being among the "criminal associates who reported at various times to [late hoodlum] Joseph Ferriola."

The feds are basing much of the information in their racketeering case on the word of mobster-turned-witness Nick Calabrese, Frank Calabrese Sr.'s younger brother. Aleman says Nick Calabrese and he served time together at the federal prison in Pekin. He describes Nick Calabrese, now in protective custody, as "a regular guy," quick to add that "I didn't pal with him or anything like that. ... You never ask a guy questions." He heard about Nick Calabrese flipping "in your paper."

Aleman doesn't know if he'll be pulled into this probe in some way, and the feds won't talk. "Who knows what Calabrese could say," he says. What could he say? "It's not anything 'on me' [that Nick Calabrese has], it's what they want him to say," Aleman says, referring to the feds.

To that point, federal prosecutor Mitch Mars later said, "We never tell any of the witnesses to say [something]. It's suicidal for us. . . . Nick will say whatever he's going to say."

Aleman looks at the floor when asked about Frank Calabrese Sr. He refuses to discuss him, changing the subject to the reporter's shoes, marveling that they had cost just $17 on sale. When pressed, he says, "Go talk to him."

Likewise, Aleman would rather not talk about reputed mob boss John "No Nose" DiFronzo, who was not indicted in the feds' current case. "I don't know what anybody does," Aleman says.

Asked about the severity of one Calabrese brother turning on the other, Aleman says, "I don't think about them things. If he did it, he did it." But he adds that the increasing number of mob informants is one of the reasons "no new people [are] coming into the mob.

"The reporters and newspapers have to keep it alive, but there ain't nothing in Chicago, no street tax, no extortion, no nothing," Aleman says. "There might be some old guys languishing around, but it's moot.

"The younger generation doesn't want no part of the mob; it's over." Aleman adds that young men would rather go to college and not take a risk they'd end up like him.

"There's no dice games, no card games, no bookmaking, if there's any bookmaking, it's just with the Jewish people on the North Side," he says, adding that even if that's happening, there's no street tax on the money changing hands.

"There's nobody who wants to do the job; this isn't the '30s or '40s," he recalls. "Is there a mob running over, putting people in trunks? . . . No, nobody wants to be part of it because of the feds. ... And these guys don't want to go to no jail like Harry.

"Whoever they locked up recently, they locked them up for their past performance, because they haven't been doing anything for the past 10 or 15 years."

While it's true the murders in the feds' case are old, authorities accuse reputed mob chief Jimmy Marcello and his brother Michael "Mickey" Marcello, among others, of running an illegal video gambling operation in recent years.

Aleman readily admits knowing the heavy hitters in that indictment. His take on the Marcellos, after being told about the alleged video gaming racket: "Mickey's a legit guy . . . his brother wouldn't make him do anything stupid like that. He has a catering business or a vending business."

Aleman said he only knew Jimmy Marcello was in trouble by catching a glimpse of the WGN-TV news one day.

Aleman also knows reputed mob overlord Joey "The Clown" Lombardo, who was accused of murder in the feds' current case but is on the lam.

Aleman says he didn't know Lombardo had taken off. "Joey ran away? Good for him," he says. "I hope they don't find him because he's a real good guy. He'd help anyone. ... He was known for helping out everyone in the neighborhood.

"He's not a monster at all; he helped more people in this area; he's the softest touch around -- 'Hey Joe, can you loan me $20?' Newspapers, what they can do to you."

Regrets? He's had . . . very few

Aleman indicated that it was the black-knight image of hoodlums that led him into the mob.

Sure, his dad was a criminal, a "regular thief," he says. But it was the guys in the shiny cars and slick suits who would act as "Robin Hoods," watching over the neighborhood and paying the grocery bills when a family couldn't, that got Aleman excited. "Some guys want to be like that; some want to be a tailor" like one of Aleman's grandfathers, he says. "I wanted to take care of my family. . . . I'd do anything to support them, anything. Like many other guys did before me."

Aleman, who says he tries to "slough it off" when people call him a cold-blooded killer, was asked several times if he has any regrets about his chosen profession or anything he might have done in the past. "The only regret I have is not being with my family and not being with my grandkids," Aleman replies the first time.

Later, when asked again, he gets a serious look -- something that often entails a clenched jaw -- and says, "The only regret I've got is I broke my mother's heart, and she died prematurely. . . . All I try to do is try to stay healthy and see my family and talk to them . . . all you've got left is family."

And lastly: "The only regret I have is not being able to sit down and eat with my family on a daily basis."

Family dinner

Family is a recurring theme with Aleman. Not "family" in a mob sense, but his family at home.

Some believe he cynically fosters this image of a devoted family man to soften his reputation -- to jurors, investigators, the public. But Cassidy, the prosecutor, believes there really is a strong mutual love between Aleman and his family. "Unfortunately, he has another side to him," Cassidy added.

Whatever the case, Aleman's family has remained devoted to him, weathering a four- to five-hour drive from the Chicago area to visit him.

Aleman has no biological children. But long ago, he married a woman, Ruth, with four kids. Their biological father, also a hoodlum, had been murdered. Aleman notes: "I didn't know my wife at the time he got killed."

Ruth died in 2000. Aleman helped her raise two boys and two girls as his own, and believes their fusion as a family unit was serendipitous.

As a teenager, Aleman had a nasty accident. While washing his dad's car in a family friend's garage, Aleman stepped on one of those sewer caps, it flipped up, and he came down hard on it, right between the legs. His scrotum was torn open, and he was rushed to the hospital. Aleman was patched up and recalls being told he still could have kids some day. But much later, he found out he was unable to have children, so finding a "ready-made" family was "destiny," he says.

Aleman emphasizes the importance of having dinner every night -- when his dad wasn't in jail -- with his family growing up around Taylor Street.

When his dad was in jail, Aleman was sent to live with grandparents and an aunt, while his brothers stayed with their mom. He lived there as a youngster. He became quite close with the aunt, Gloria, often curling up with her to sleep. And so, when she ended up marrying Joseph Ferriola, the fearsome mobster, Aleman became close with him, too.

Aleman says he wasn't really involved in anything heavy, and cites Uncle Joe as evidence. "They make me part of the mob because of my uncle . . . which is not true because the last thing he wanted me to do is join," Aleman recalls. "My Aunt Gloria, she made sure he didn't make me do anything like he was doing."

Still, there's ample evidence of Aleman's ferocity. Before being sent to state prison, he did prison time for home invasions and other racketeering-related crimes.

For years, Aleman was accused of working as an illegal "juice" loan collector, pursuing deadbeats who didn't pay what they owed the mob, said Vic Switski, the former Aleman case agent on the FBI/Chicago Police organized crime task force.

Once, Aleman was accused of shoving a woman through the glass door of a lounge, then beating a Chicago Police commander's son who tried to intervene.

Because his frame was always slight -- he's 5-foot-8, 140 pounds -- Aleman said he felt he sometimes had to fight to prove himself. In high school, he and a friend brawled against others every day one semester, he said.

'You have no idea'

Aleman once sent ripples of terror throughout the underworld, and segments of legitimate society, but his own fears appear much different. They don't seem to involve the joint because he says he has no real trouble, from guards or other inmates. People treat the older guys with some deference, he says, and he and the other old-timers are known as "pops" by the younger, mostly black prison population.

One of the few times he alluded to fear came in a childhood story involving his beloved aunt, who "dressed me up and walked me to school," he says. "I was afraid to go to school."

He admits to being scared seeing his little great-granddaughter; he was worried about the long drive and his family getting into a car accident. The wife of a fellow inmate in Atlanta once was killed that way, driving to see the inmate, he says. "It's etched in me," he adds, simmering about his 2003 transfer from Dixon, which is closer to Chicago, to this current facility in the sticks, south of Macomb.

Aleman also hints at some frightening characters in his past. "You have no idea the guys in Chicago who never got their names in the newspapers and are the most f------ dangerous guys I knew," Aleman says. He declines to identify them.

Most of all, though, as the interview with the reporter nears completion, Aleman seems worried about the impact a story might have. He says he's not optimistic about getting paroled -- at more than one point, he says he's resigned to dying in prison -- but he's clearly thinking toward the possibility of freedom. "My fate was cut out . . . to raise my four kids and to be in prison for the rest of my life," he says. "I've got the love of my kids ... what else could I ask for? Of course, it would be nice to be with them."

"Don't hurt me," Aleman later implores.

IN AND OUT OF COURT

1975: Bookie Anthony Reitinger is murdered; Aleman indicted years later, but it never goes to trial

1977: Put on trial for 1972 murder of William Logan; acquitted because judge is bribed

1978: Convicted of interstate home invasions, goes to federal prison

1980: Reputed hit man and Aleman friend William "Butch" Petrocelli is murdered

1989: Aleman gets out of prison, albeit briefly

1990: Hit with new racketeering charges, sent to prison to await trial

1992 : Convicted in that case, gets 12 years

1997: Retried for Logan murder. Convicted, sentenced to 100 to 300 years

2002: Denied parole

2005: Major mob indictment comes down, Aleman not charged; awaits parole hearing


ALEMAN'S EARLY RECORD

A snapshot of Harry Aleman's early rap sheet

YEAR ARREST/CHARGE
1960 malicious mischief
1961 gambling
1962 possession of burglary tools
1962 assault, criminal damage
1965 aggravated assault
1966 grand theft auto
1966 armed robbery
1968 criminal damage to property
1969 aggravated kidnapping
1971 violating Federal Reserve Act
1975 keeper of gambling place

Thanks to Robert C. Herguth - Chicago Sun Times

Friday, September 16, 2005

Mayor Donald E. Stephens: I didn't meet with mob

Rosemont Mayor Donald E. Stephens adamantly denied under oath Thursday that he met with the mob in 1999 to talk about a casino for his town. And, in an ironic twist, a reputed mob boss on the lam is backing him up.

Joey "The Clown" Lombardo fired off a letter to his lawyer last month denying an FBI informant's claim that Lombardo and reputed mobsters John "No Nose" DiFronzo, his brother Peter DiFronzo, Joe "the Builder" Andriacchi, Rudy Fratto and other alleged hoodlums met with Stephens at Armand's Pizzeria, an Elmwood Park restaurant, according to Rick Halprin, Lombardo's lawyer.

"Let me inform you that it is positively a lie," the hand-printed letter, which included misspellings, read. "I have never, never, ever sat down with Mayor Stephens and the rest of the names in the article. I will take truth serum or lie detector test if the agent and there reliable witness will take one. It has to be done by a private co., not the FBI."

Lombardo, 76, has been missing since a major federal indictment linking the mob to 18 unsolved murders came down in April. Shortly after the indictment, a letter from Lombardo arrived by mail at Halprin's Chicago office. That letter, postmarked in Chicago and directed at U.S. District Court Judge James B. Zagel, proclaimed his innocence and asked for a separate trial from the others indicted. However, FBI spokesman Ross Rice said agents don't necessarily think Lombardo is hiding out in the Chicago area.

The FBI launched international manhunts for Lombardo and co-defendant Frank "the German" Schweihs and are offering rewards of up to $20,000 apiece for their arrests. Lombardo, 76, who had lived on Chicago's Near West Side for more than half a century, and Schweihs, 75, who last lived near Ft. Lauderdale, face up to life in prison if convicted.

The latest letter was dated Aug. 24 and postmarked Aug. 25 in Chicago. The letter was on three-ring notebook paper and was accompanied by two Chicago Sun-Times articles, including a July 19 clipping about Lombardo's alleged meeting with Stephens, Halprin said. "I doubt that he has a home subscription," Halprin said of Lombardo. "I have no idea where Mr. Lombardo is," Halprin said. "I'm saying the same thing I've said over and over again: It's my obligation to tell Joey, I can only tell him he should surrender himself and prepare for trial."

'Ridiculous nonsense'

FBI agent John Mallul had testified on July 18 that an informant told him of the Armand's meeting. Mallul's testimony came during a state Gaming Board hearing to revoke the license of Emerald Casino, which has been trying to open a casino in Rosemont but has been bogged down by mob allegations.

Lombardo says he also sent a separate letter to Rosemont's village attorney denying the Armand's meeting. "And also if I met with these people on that date, May 29th, 1999 I would have been in violation of my parole and probation," the letter to Halprin read.

Rosemont attorney Bob Stephenson confirmed he recently received two letters, purportedly from Lombardo. One appeared to mirror the Halprin letter, the other was a brief note in which Lombardo told Stephenson he remembered him from an old Teamsters trial, Stephenson said. The letters were signed "Joseph Lombardo I'm an innocent man," wording similar to the letter sent in the spring. The Rosemont letters were turned over to the feds, Stephenson said.

Word of the latest round of Lombardo correspondence came as Stephens testified before retired Judge Abner Mikva, who will rule whether Emerald should lose its gaming license. Stephens testified he was "absolutely not" at the Armand's meeting -- and said he had never even been to the restaurant.

Outside of the hearing, Stephens, 77, called the Armand's allegation "such ridiculous nonsense."

'I hate my son-in-law'

"The FBI agent said there was some informant. Well, at the very least, the informant's a liar," Stephens said. "As a matter of fact, I also understand that my [ex-]son-in-law was at this meeting. I've got news for you, I hate my son-in-law. I've never gone around the block with him in my car. Never."

Excerpted from articles by Carol Marin and Shamus Toomey of the Sun Times and by Matt O'Connor and John Chase of the Tribune.


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