Feds Fear Syndicate Rebirth

New York's Five Mafia Families

A tidal wave of imprisoned mobsters, including ferocious Mafia bosses champing at the bit to hit the streets, will soon be freed to reclaim the reins of the city's five crime families.

Five Families: The Rise, Decline, and Resurgence of America's Most Powerful Mafia Empires.

In an extraordinary interagency memo, the FBI has been warned by the Bureau of Prisons to brace for the release of 80 goodfellas and their close associates, whose sentences behind bars will expire before January 2007, according law-enforcement sources. The list of hardened hoods in the prisons bureau survey reads like a Who's Who of Mafioso whose exploits were splashed across the front pages during the past two decades:

• Venero "Bennie Eggs" Mangano, 84, legendary underboss to Vincent "Chin" Gigante of the Genovese crime family, is scheduled for release on Nov. 2, 2006, after serving 15 years for his role in rigging window-installation contracts at city projects in the infamous "Windows Case."
• Sal Avellino, 69, the Luchese crime family underboss and one-time chauffeur for family godfather Anthony "Tony Ducks" Corallo, is slated to be released Oct. 10, 2006, after serving 11 years in prison for his role in various mob activities, including the murders of two waste carters who were cooperating with the feds.
• Joe "Joe the German" Watts, 63, former chauffeur and gunslinger for John Gotti, the late Gambino boss, will be freed May 5, after serving 11 years for convictions for murder conspiracy and for an elaborate money-laundering scheme.
• Steve "Stevie Wonder" Crea, 58, a powerful Luchese underboss, is expected to be free Aug. 24 after serving three years for fixing prices on three Manhattan construction projects and extorting money from a Long Island construction company.
• Andrew "Andy Mush" Russo, 71, the capo cousin of Colombo crime family godfather Carmine "The Snake" Persico, who was convicted as the muscle over private carters and is coming out June 6 after serving nine years for racketeering.
• Salvatore "Sammy Meatballs" Aparo, 75, a powerful Genovese capo, will be free May 25 after serving time for a 1991 labor-racketeering conviction in a case in which another mobster was caught on tape bragging, "Hurting people. That's what this is about."
• Charles Carneglia, 59, a trusted Gambino power whose brother, John Carneglia, was a reputed hit man in the famed slaying of boss Paul "Big Paul" Castellano, will be free May 1 after serving five years for extortion.
• Richard G. Gotti, 37, nephew of the late John Gotti, and son of the Dapper Don's brother, Richard V. Gotti, will be free March 3 after serving three years in the same racketeering case that convicted his father and his uncle, Peter.

Experts say the survey, conducted in July, serves as additional proof that speculation about the demise of the Mafia is vastly premature — despite high-profile defections of mob bosses such as Salvatore "Sammy Bull" Gravano, a succession of celebrated convictions and the latest twist involving a mob lawyer entering the witness-protection program, as The Post reported last week. "You only hear about the all the guys who flipped, but if you ever took a look at the list of guys who went into prison and how many rolled over, it is not even close," one longtime mob hunter observed.

In fact, there are about 1,100 members of organized crime, with each wiseguy connected to 10 associates, making for a separate rogues' gallery of about 11,000 businessmen, labor officials and others linked to the mob, the sources said.

In recent years, law-enforcement has broken the mob's stranglehold on certain unions and construction industries, but "the nucleus is still there" in those businesses as well as in the Mafia's bread-and-butter pursuit: gambling. "There's too much money to be made and always people willing to take the shot," one source said, adding that the "same is true of the leadership."

For example, the Gambino power vacuum created by the death of John Gotti and the subsequent imprisonment of brother Peter has been quickly filled by the lower-profiled Nicholas "Little Nick" Corozzo and his brother, Joseph "JoJo."

"For each rat or guy we put in prison, there are 20 others willing to take their place," a mob watcher said. "And none of these guys are coming out to shine shoes."

A prisons bureau spokesperson declined to explain what prompted the mob-inmate survey, but sources say the analysis was handed over to FBI brass in Washington and was being used to update the inmates' connections to the mob and assess "their potential impact" on La Cosa Nostra when they get out.

James Margolin, the FBI spokesman in New York, said the advisory "is further indication of what we have always maintained, that there remains plenty of work to be done in fighting organized crime, and that is why it continues to be a priority for this office."

And as chilling as the recent survey is, it does not list hoods such as Oreste "Ernie Boy" Abbamonte, a major convicted heroin dealer and a member of both the Bonanno and Luchese families, who came out of prison in February.

It also does not mention a future wave of releases expected after 2007 including gangsters such as Liborio "Barney" Bellomo, 48, the former Genovese street boss who is due out in August 2008.

Thanks to Murray Weiss.

Five Families: The Rise, Decline, and Resurgence of America's Most Powerful Mafia Empires.

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U.S. Says Mob Is Drying Up In New York

New York's five Mafia families, who survived years of Federal attack, have deteriorated in recent months to the point that three are virtually out of business and two are crumbling, many law-enforcement authorities and experts say.

After 60 years of illicit expansion, the combined racketeering power and wealth of New York's five traditional families is going the way of their counterparts in most other cities around the country, who have succumbed to a decade of aggressive Federal prosecution, the authorities say.

For the first time since the Mafia groups were formed in the 1930's, the experts say that all five families -- Gambino, Genovese, Lucchese, Colombo and Bonanno -- are in disarray, hurt by convictions and indictments of top leaders, murderous internal disputes, generational changes and defections by high-ranking members who have become Government witnesses.

The Lucchese family, for example, has had three changes of leadership in less than a year: one boss was jailed, and a second became a Government witness after he botched the killing of a mob captain -- who himself went on to become a key witness in a major racketeering trial aimed at ending the Mafia's influence in the window-installation industry.

All eight defendants were cleared of the racketeering charge on Friday, and six were cleared entirely, while two mid-level bosses were convicted of extortion. But prosecutors said afterward that the case had succeeded in driving the mob out of what had been a lucrative industry.

Moreover, many of the mob's customary money-producing rackets in the New York region, including extortions and kickbacks in the garment district, the Fulton Fish Market and the construction and trucking industries, have been eliminated or reduced by recent convictions and civil court remedies, the experts assert.

Federal and state law-enforcement officials say that the Colombo and Bonanno families have also been so shaken that they are no longer considered powerful threats. But officials cautioned that the the Genovese and Gambino groups -- the two largest in the country -- remain potent forces in illegal sports betting, loan-sharking, labor racketeering and the waste removal industries in the region.

Andrew J. Maloney, the United States Attorney in Brooklyn, and Ronald Goldstock, the director of the state's Organized Crime Task Force, forecast that the families could be reduced to the level of street gangs within a decade. They said that if prosecution pressure and defections continue, the mobs will lose what remains of their once-flourishing extortion rackets in legitimate businesses.

"No organization, legal or illegal, can withstand repeated decapitations at the top," Mr. Maloney said about the New York area. "They are certainly no longer a growth industry."

Not all experts are that optimistic. Robert J. Kelly, the president of the International Association for the Study of Organized Crime, agreed that the families seemed to have been weakened, but said that if the family units disappear they may undergo another incarnation. Mafiosi 'Will Persist'

"There may not be a Mafia, but there will be mafiosi who will persist as long as there are lucrative criminal opportunities," said Mr. Kelly, who is a professor of social science and criminal justice at Brooklyn College.

From intelligence obtained mainly from electronic eavesdroping and informers, experts cited these signs of decay in the families:

• Leadership vacuums or internal wars have weakened the Gambino, Lucchese, Colombo and Bonanno groups, with the bosses and top leaders in each of the families serving prison sentences or in jail awaiting trials.
• The number of active mob members has dropped by half in most cases since a peak in the late 1970's, law-enforcement officials say. The Colombos are down to about 100 members and the Bonnano family to 75.
• The only reputed boss of a family not behind bars is Vincent Gigante, the suspected Genovese leader, who has been declared mentally unfit to stand trial on racketeering charges. Four capos or captains are trying to run the family but still consulting Mr. Gigante on major decisions.
• The acting boss of the Lucchese family, Alphonse D'Arco, 59 years old, and a capo, Peter Chiodo, 40, both apparently fearing for their lives because of family strife, have become government witnesses. Their defections, said Mr. Maloney, may produce a wave of new indictments against Lucchese members. "It could be the death knell for the family," he asserted.
• Control of the Colombo family is being disputed by two factions and the authorities say that the rivals have issued contracts to murder each other.

The new turmoil in the Lucchese family stemmed from distrust and a failed attempt to kill Mr. Chiodo in May. After surviving 12 bullet wounds, Mr. Chiodo became a Government witness. When Mr. D'Arco learned last month that there was a contract on his life for botching the hit on Mr. Chiodo, he, too, became a turncoat.

Since the 1930's, the New York region has been the Mafia's strongest bastion in America. Except for New York and Chicago, the F.B.I. and Federal prosecutors maintain that in the last decade they have largely eliminated Mafia strongholds in most big cities. But they say the job has been harder in New York, the only area with five separate, large families, while other cities had one family to eradicate.

Experts say that New York's families have survived because each family created a rigid organization, with rules that defined what kinds of crime could be committed and how profits would be divided.

The Mafia groups also engaged in more sophisticated white-collar crimes than other criminal gangs, and they infiltrated major labor unions. 'Mob's Invisible Tax'

The Manhattan District Attorney, Robert M. Morgenthau, said that by skimming "multimillions" annually from the construction and garment industries, the families had imposed an "invisible tax" on the region.

"What they do translates directly into higher costs for such basic things as clothes, the costs of an apartment and an office and discourages legitimate businesses from coming here or staying here," Mr. Morgenthau added.

Laura Brevetti, a former Federal prosecutor, noted that testimony and records disclosed that the Colombo family alone netted at least $80 million a year in the mid-1980's from gasoline tax frauds in New York, New Jersey and Connecticut. And Mr. Morgenthau noted that a raid last year on the office of Thomas Gambino, 62, whom prosecutors have called a major organized-crime figure in the garment district, found records showing that he had $75 million in stocks, bonds and bank accounts.

The names of the five families are actually designations by law-enforcement authorities, based on the groups' founders or later bosses. Most members are not related by blood.

As in other regions, the New York Mafia has now has been severely injured by long-term legal strategies that concentrate on eliminating entire family hierarchies.

Federal prosecutors have used the Racketeer Influenced and Corrupt Organizations Act, or RICO, and state authorities have applied the state's new Organized Crime Control Act, known as Little RICO, to obtain convictions and indictments against previously insulated bosses and leaders. 'Process of Grinding Down'

Mr. Goldstock, who was not involved in the case, called the window trial "neither a victory nor a defeat, but rather part of an investigative process of grinding down organized crime."

He emphasized that until several years ago it had been "almost unheard of" to convict such high ranking mobsters as Venero Mangano and Benedetto Aloi, who were convicted on Friday on charges of extortion in the window-installation industry.

Two bosses who remain in control of their organizations, investigators say, are John Gotti and Vincent Gigante, 63; authorities say they head the Gambino and Genovese crime families.

Mr. Gotti, 51, is in jail awaiting trial on racketeering charges that include the slaying of his predecessor, Paul Castellano. But Federal and state investigators said that Mr. Gotti still runs the Gambino family from prison, using his son John Jr. The officials, however, believe that his absolute control has slipped in his absence.

Mr. Gigante, 63, was declared mentally unfit last March to stand trial. But investigators believe that he, too, is still in charge.

Thanks to Selwyn Raab

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