Twenty-Two Alleged Members of Violent “Dead Man Incorporated” Gang Indicted on Federal Racketeering, Murder, and Drug Charges That May Bring Life in Federal Prison

A federal grand jury has charged 22 defendants with conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). All but one defendant are also charged with conspiring to distribute drugs. The indictment was returned on October 6, 2011 and unsealed upon the arrests of seven defendants and the execution of seven search warrants. Eleven defendants were previously in custody and four defendants are still at large.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Special Agent in Charge Mark R. Chait of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Baltimore Police Commissioner Frederick H. Bealefeld III; Anne Arundel County Police Chief James Teare, Sr.; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.

“This case is another in a series of federal racketeering prosecutions in which federal, state, and local agencies have joined to target leaders and key members of violent gangs in Maryland,” said U.S. Attorney Rod J. Rosenstein. “Today’s indictment alleges that the Dead Man Incorporated gang is an organized criminal enterprise with leaders and members who deal drugs and commit violent crimes. Federal racketeering cases have been filed recently in Maryland against Black Guerilla Family (BGF), South Side Brims (SSB) Bloods, Pasadena Denver Lanes (PDL) Bloods, Tree Top Piru (TTP) Bloods, Latin Kings, 18th Street, and MS-13, and additional gang investigations are ongoing. Anyone who joins a criminal gang should be on notice that they can be held accountable for all crimes committed by fellow gang members.”

“This investigation was extremely challenging, not just from the level of organization DMI displays, but the level of violence that this indictment alleges,” said FBI Special Agent in Charge Richard A. McFeely. “But the investigators and attorneys that formed this task force were even better organized and over a three year period, left department insignia at the door and leveraged almost every investigative tool available to stem the flow of violence allegedly committed by this group. Today’s indictment is a testament to the success of that strategy and the commitment by Maryland’s law enforcement agencies to come together and stop the violence against our citizens.”

“We are pleased to have worked such a successful operation with our law enforcement partners,” said ATF Special Agent in Charge Mark R. Chait. “Together, we worked a strategic and methodical investigation against a group of violent offenders, whose actions have brought fear to our communities. We have dismantled the DMI organization with today’s arrests, and we are confident that we have made a significant impact on violent crime. We want the members of the DMI gang or any criminal gang to know that membership may earn you a lifetime in federal prison.”

According to the 27-count indictment, 18 men and four women are members and associates of the DMI. DMI was created originally in 2000 as a prison gang in Maryland. From the beginning, defendant Perry Roark was the “Supreme Commander.” Also at its inception and for several years thereafter, DMI was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.

DMI members operated in and out of prisons throughout Maryland, as well as Pennsylvania, Louisiana and Texas. DMI is active in numerous prison facilities in Maryland, including the Maryland Correctional Adjustment Center, Baltimore City Detention Center, Baltimore City Correctional Center, Maryland Reception Diagnostic and Classification Center, Eastern Correctional Institution, Metropolitan Transition Center, Roxbury Correctional Institution, Patuxent Correctional Institution, Maryland Correctional Institution - Hagerstown, Western Correctional Institution, Central Maryland Correctional Facility, Maryland Correctional Institution - Jessup, Jessup Correctional Institution, Brockbridge Correctional Facility; Maryland Correctional Training Center; Anne Arundel County Detention Center; and Baltimore County Detention Center. Units operating outside the prisons are identified by the region they cover, such as Brooklyn, South Baltimore, Southwest Baltimore, Southeast Baltimore, Dundalk, Westminster, Glen Burnie, etc.

The indictment alleges that all 22 defendants conspired to conduct the affairs of DMI through a pattern of criminal activity from 2000 to the present, including: murder and threats to commit murder, armed robbery, drug trafficking and extortion. The defendants are alleged to have smuggled drugs, tobacco, cell phones and other contraband into prisons, by concealing them on the persons of visitors to the prisons. Twenty-one of the defendants are charged with conspiring to distribute cocaine, crack, oxycodone, Suboxone, heroin, and marijuana.

According to the indictment, gang members used contraband cell phones in prisons to coordinate the smuggling of contraband into prisons, disseminate information about arrests and releases of members and associates, to warn of investigations, to publicize the identities of persons believed to be cooperating with law enforcement, and to order assaults and murders of such persons, as well as enemies of DMI.

Specific acts of violence alleged in the indictment include four murders in Maryland, as follows: the February 16, 2009 murder of James Flanary; the June 2, 2009 murder of Tony Geiger; the September 18, 2009 murder of Eugene Chambers; and the September 19, 2009 murder of Walter Milewski.

Additionally, the indictment alleges that several of the defendants planned to murder four other individuals, and ordered assaults on, and/or assaulted, over 10 individuals, six of whom were incarcerated in a Maryland detention facility. Four defendants allegedly fired weapons into a house, wounding an occupant. Another defendant committed a home invasion robbery in Glen Burnie, Maryland and assaulted the occupants.

The following defendants are charged in the indictment:

• Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42;
• James Sweeney, age 34;
• Nicky Cash, a/k/a “Mom,” age 46, of Baltimore;
• George Treas, a/k/a “Georgie,” “Fat Boy;” age 28, of Baltimore;
• Dane Shives, age 22;
• Michael Quinn, a/k/a “Mikey,” age 28;
• Michael Forame, a/k/a “Skinny,” “Skinny Pimp,” age 40, of Sykesville, Maryland;
• Brian Mitchell, a/k/a “Carlito,” age 40;
• Richard Ingram, a/k/a “Ricky,” “Hades,” age 45;
• Timothy Mixter, a/k/a “Fuhrer,” age 35, of Essex, Maryland;
• John Henry Adams, a/k/a “L.J.,” “Little Johnny,” age 25;
• Gregory Cook, age 36;
• Jeremy Ridgeway, a/k/a “J-Rock,” age 22;
• John Zion, a/k/a “John John,” age 27;
• Russell Hartman, a/k/a “Busy,” age 29, of Baltimore;
• Bonnie Rice, age 35, of Baltimore;
• Kelly Witter, age 26;
• Charles Gray, a/k/a “Bud,”“Budrow;” age 31;
• Edward Mueller, a/k/a “Dusty,” age 31, of Baltimore;
• Melanie Holquist, age 28; of Baltimore;
• Scott Jarriel, a/k/a “Scotty J.,” age 28; and
• Gary Horton, age 26.

All of the defendants face a maximum sentence of life in prison on the racketeering conspiracy. All but one defendant, Gary Horton, also face a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison on the drug conspiracy. Roark, Adams, Mitchell, Forame, Mueller, Treas, Mixter, Ingram, Hartman, and Zion face a maximum sentence of 10 years in prison for conspiracy to commit murder and/or an assault in aid of racketeering.

Roark, Adams, Mitchell, Gray, Forame, Jarriel, and Mueller face a maximum sentence of 20 years in prison for assault with a dangerous weapon resulting in serious bodily injury. Cash and Holquist face a maximum sentence of 15 years in prison for being accessories after the fact of an assault; Witter, Holquist, Zion, Mixter and Treas face a maximum sentence of 20 years in prison for distributing drugs; and Treas and Mixter face a maximum sentence of 10 years in prison for being a felon in possession of a gun.

Initial appearances for the defendants began this morning in U.S. District Court in Baltimore.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.

United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who are prosecuting this Organized Crime Drug Enforcement Task Force case.

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Is Jaquin "Chapo" Guzman Chicago's New Scarface?

Chicago’s new Scarface is a shadowy Mexican drug kingpin nicknamed Chapo — “Shorty” in Spanish. His cash crop is marijuana, which his cartel sells by the ton and protects with horrific violence.

If you thought Chicago’s Italian mob was the worst of the worst in organized crime, think again, federal agents say. “Chapo Guzman would eat them alive,” said Jack Riley, head of the U.S. Drug Enforcement Administration’s office in Chicago.

The 5-foot-6 Joaquin “Chapo” Guzman rules the Sinaloa Cartel, which allegedly smuggles marijuana and other narcotics in planes, trains, ships, trucks, cars and even submarines.

Most of Guzman’s leafy product comes from Mexico, but some is grown alarmingly nearby — deep in Wisconsin’s North Woods, whose pristine lakes and pine forests are a paradise for weekend campers, hunters and anglers. Authorities suspect much of that Wisconsin-grown pot is destined for here.

Although Chicago is in the U.S. heartland, in the marijuana trade, “We are on the Mexican border,” Riley said.

Mexican marijuana dominates the Chicago market at a time when local police and prosecutors are trying to devise a better way to deal with the tens of thousands of people arrested here every year for possession of small amounts of pot. Most of those cases get dismissed in court, so several Chicago aldermen recently proposed an ordinance to allow officers to write tickets for minor marijuana possession.

Whatever the outcome, police and prosecutors say they won’t stop trying to prevent cartels like Guzman’s from shipping their huge loads of marijuana to Chicago. “The Mexican cartels have totally taken over the majority of the marijuana trafficking here,” Riley said. “It’s their cash crop. It’s the drug that really allows them to do all of their other criminal enterprises: heroin, cocaine, methamphetamine. That’s why it’s so important to us.”

A man scouting locations to hunt bears near the Chequamegon Nicolet National Forest stumbled upon one of the Sinaloa Cartel’s secret North Woods marijuana operations. The hunter called authorities, who notified the DEA. A federal probe found about 10 grow sites that ranged in size from a suburban backyard to a football field in the forest and other remote areas of northern Wisconsin. Suspected cartel workers were tending to about 10,000 plants that would have been worth millions of dollars on the street. Twelve men were nabbed last year and all the plants were destroyed. Agents also recovered an AK-47 and other weapons.

These backwoods pot farms — first discovered about three years ago — are more sophisticated than what local cops there have encountered in the past. Trees were clear-cut to 3 feet high and marijuana was planted between the stumps. Workers dug water wells and ran irrigation hoses to the plants. The men slept and cooked under plastic tarps where they stored their pots and pans, sleeping bags, fertilizers, pesticides and trash. “Luncheros,” or supply workers, brought them food and growing supplies.

National Forest Service district ranger Jeff Seefeldt said he has suggested that fellow employees bring along law enforcement on visits to remote areas of the 130,000 acres of forest he oversees. Oconto County Sheriff Michael Jansen said he doesn’t know of any cartel-related violence in his community, yet. But he’s worried that other heavily armed marijuana grow operations might move into his backyard.

“The national forests in the mountainous states — Oregon and California — have been dealing with this for years,” he said. “They’re looking at a map and seeing other national forests besides those out West. And they’ve put their finger on Wisconsin.”

Mexican drug cartels are growing marijuana in the Chicago area, too, but on a lesser scale, said Larry Lindenman, executive director of the Lake County Metropolitan Enforcement Group. He suspects a cartel was to blame for a marijuana field found in 2008 in Waukegan across the street from property owned by Abbott Laboratories. “They had tents. They would work and live on the site. They even made a building out of plastic bags and used a generator-powered heater to dry the harvested plants before shipping,” he said.

The operations the feds have busted in Wisconsin and northern Illinois are proof Mexican cartels will grow marijuana anywhere they can to ensure an uninterrupted supply of marijuana makes it their best-selling markets, including Chicago.

Still, their local grow operations are a sideline — just a “small part of the pie” ­— in the drug business, Riley said.

In recent years, Chicago and Atlanta have become key transportation hubs for the cartels, Riley said. Most of their pot comes to Chicago in trains and semi trucks.

A lot of that marijuana is being shipped here by the Sinaloa Cartel and protected with unthinkable violence, Riley said. “Chapo Guzman, now that Osama is dead, is in my opinion the most dangerous criminal in the world and probably the most wealthy criminal in the world,” he said. “Guzman was in the Forbes Top 100 most wealthy people in the world. His ability to produce revenue off marijuana, we’ve never seen it before. We’ve never seen a criminal organization so well-focused and with such business sense, and so vicious and violent.”

In Mexico, feuding cartels are suspected of tens of thousands of murders, some gruesome beyond compare. They have been known to kidnap, torture, kill and mutilate. Here’s an example: The Juarez Cartel got blamed for what happened to a kidnapping victim whose skinned face was stitched onto a soccer ball in Sinaloa, Mexico, in 2010. Cartel members, including a hit squad called the Scorpions, are believed responsible for murders in Chicago, too, a police source said.

Fear of cartel violence, as well as rampant bribery, has prompted many officials in Mexico to look the other way while tons of marijuana and other drugs cross the border. But the cartel bosses aren’t just ruthless killers. They’re also businessmen who run their operations with a logistical know-how that rivals corporate giants.

Cartels have even secretly hired students attending elite U.S. universities to engineer their marijuana for increased potency, a police source said.

Vicente Zambada-Niebla, the alleged head of logistics for the Sinaloa Cartel, claims the DEA allowed the cartel to operate without interference for years in return for providing DEA agents with details about rival cartels, including the location of their leaders. He says the DEA offered him immunity in exchange for information, which the agency vehemently denies.

Zambada-Niebla, Guzman and their co-defendants are charged with smuggling tons of heroin and cocaine to Chicago and elsewhere in the U.S. Zambada-Niebla is in a federal lockup in Chicago, but Guzman remains a fugitive.

Although that federal case focused on cocaine and heroin, authorities believe the Sinaloa Cartel and rival drug cartels are also responsible for tons of marijuana that police and federal agents have seized in recent years. From 2005 through 2009, Chicago Police officers interdicted 29 tons of marijuana suspected of coming from Mexican cartels. In 2010 alone, police seized another 19 tons.

Last year, DEA agents in Chicago Heights stopped a delivery of nearly 11 tons of marijuana packed in six rail cars from Mexico. And in August, Chicago Police conducted surveillance on a West Side warehouse and saw workers preparing to move large containers from a tractor-trailer to six white vans. Hiding on rooftops and in weeds, the officers watched workers pull the six containers from the semi truck. Each container contained a ton of marijuana. Some bore the label “AK-47.”

“You will see people getting shot, being beheaded back in Mexico because of this,” said one undercover narcotics officer involved in the bust. “But for every truck you stop, 12 get through.”

The high season for shipping cartel marijuana to Chicago is in January, February and March — the key harvest times in Mexico.

Marijuana is often hidden under fruit or other food in a tractor-trailer. If a truck hauls a ton of pot to Chicago, the dealer who bought it from the cartel might earmark four 500-pound packages for particular customers. Once the truck is unloaded in Chicago, the weed doesn’t sit in a warehouse long — an hour or two, tops.

“Now it’s up to the independent dealers in the area with their own customer base that might supply the local guys with 50 pounds here and 50 pounds there,” an undercover narcotics officer said.

The cartels deal almost exclusively with high-level, Spanish-speaking smugglers in Chicago.

There are rules for how the pot is distributed here, authorities said. A guy who buys a ton won’t sell less than 500 pounds to anyone. A guy who buys 500 pounds won’t sell less than 50 at a time. And the guy who buys 50 pounds will “pound out” 5- or 10-pound amounts to his customers. At the bottom of the pot-dealer chain, low-level Hispanic drug dealers sell marijuana to the street corner salesmen who deal in ounces and grams.

“It’s Basic Narcotics 101,” said Chicago Police Cmdr. James O’Grady of the narcotics unit. “Don’t try to buy a kilo from a guy who sells ounces.”

A guy who sells ounces will think you’re stupid and rob you. Or he’ll think you’re an undercover cop and avoid you — or worse, O’Grady said.

Certainly, a pot dealer selling ounces would never negotiate with someone like Saul Rodriguez, a ruthless drug trafficker near the top of the supply chain in Chicago.

Rodriguez played a dangerous game. He ripped off the Mexican cartels and sold the drugs he stole. He has also admitted to being involved in the murders of three people.

In 1996, the former La Raza gang member became an informant for Chicago Police, earning $807,000 for his tips about high-level drug dealers.

Glenn Lewellen was the narcotics officer who recruited Rodriguez as an informant. They became partners in crime, federal prosecutors allege.

Rodriguez got his start as a big-time marijuana dealer before moving into more lucrative cocaine deals, law enforcement sources say. In 1996, for example, the DEA seized 154 pounds of marijuana from one of Rodriguez’s cars. But Lewellen persuaded the feds to drop their case, prosecutors said.

Rodriguez’s crew continued to operate until 2009 when he was arrested. He has pleaded guilty to running a drug enterprise and arranging the murders of three men in 2000, 2001 and 2002.

Riley, the head of the DEA here, said he thinks a lot of pot smokers are unaware the bag of weed they buy is directly connected to the violence and corruption of Mexican drug cartels and their local associates, Rodriguez among them. “The guy sitting on the patio in Hinsdale — smoking a joint with his friend and having a drink — better think twice,” Riley said. “Because he’s part of the problem.”

Thanks to Frank Main

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Chili Pimping in Atlantic City: The Memoir of a Small-Time Pimp and Hustler

Chili Pimping in Atlantic City: The Memoir of a Small-Time Pimp and Hustler is the controversial autobiography of Michael Mick-Man Gourdine, AKA the Candyman, as he was known on the street. The book pulls no punches and provides an honest and sometimes shocking look at what one man from the wrong side of tracks felt compelled to do to achieve the American Dream. Gourdine became a pimp who operated primarily on the streets of Atlantic City, New Jersey, while working as a corrupt NYPD cop who specialized in narcotics trafficking and prostitution. Employed as a police officer from 1990 to 2000, Gourdine reportedly made an estimated $2.5 to 3 million dollars in illegal graft, bribes, prostitution and drug dealing before being fired.

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Two Dozen Members and Associates of Belizean Bloods Street Gang Facing Federal Narcotics and Passport Fraud Charges

A federal investigation of alleged passport fraud and narcotics trafficking by members and associates of the Belizean Bloods street gang operating in Evanston and Chicago has resulted in charges against two dozen defendants, most of whom were arrested here this week, law enforcement officials announced today. One defendant, Jerry Johnson, who allegedly directed the Belizean Bloods drug trafficking organization in Chicago, was arrested yesterday in Salt Lake City and is facing federal charges in Chicago. Five other defendants were arrested, and three guns were seized, Tuesday afternoon in Lyons where they had gathered as part of an alleged conspiracy to rob what they believed was 50 kilograms of cocaine from a different drug organization but which, in fact, was a ruse in an undercover sting operation.

Overall, 10 separate federal complaints were filed and unsealed in U.S. District Court in Chicago after search and arrest warrants were executed Tuesday and yesterday, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. The charges arise from two coordinated investigations, Operation Blood Hound and Operation Black Orchid, which brought together agents from multiple federal law enforcement agencies, as well as the Chicago and Evanston Police Departments and other local partners. In 2009, the Chicago Field Office of the U.S. State Department’s Diplomatic Security Service began investigating alleged passport fraud by Belizean nationals, while at the same time the FBI and Evanston and Chicago police were investigating alleged narcotics trafficking by suspected members of the Belizean Bloods.

Previously, during the course of the investigations, bulk amounts of powder and crack cocaine, firearms and assault rifles and cash were seized. Eight additional Belizean nationals were prosecuted for passport fraud and eight others for illegally re-entering the country within the past year in Federal Court in Chicago. Another Belizean national was arrested yesterday in Chicago on passport fraud charges filed in the Southern District of Florida.

“These coordinated efforts demonstrate the commitment and teamwork of all law enforcement agencies in the Chicago area to combat the dangerous combination of gangs, guns and drugs in our community,” Mr. Fitzgerald said.

Mr. Fitzgerald announced the arrests and charges with Scott Collins, Acting Special Agent in Charge of the U.S. State Department Diplomatic Security Service Chicago Field Office; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Andrew L. Traver, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Chicago; Gary J. Hartwig, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago; Alvin Patton, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Darryl McPherson, the U.S. Marshal in Chicago. The Chicago and Evanston Police Departments played significant roles in the investigation along with other local agencies. The investigations were conducted under the umbrella of U.S. Organized Crime Drug Enforcement Task Force (OCDETF), and with significant assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA.)

The investigation, which is continuing, relied on undercover purchases of narcotics, surveillance, consensual audio and video recordings, and court-authorized wiretaps of telephone conversations, as well as information provided by multiple cooperating witnesses, including former members and associates of the Belizean Bloods.

According to the charges against Johnson and three others, Johnson’s sources of supply included quantities of narcotics from Belize. He allegedly directed the distribution of powder and crack cocaine and “cooked” powder cocaine to produce crack, which was distributed in wholesale quantities. A cooperating former Belizean Bloods member told agents that Johnson had inherited his father’s drug connections when his father was deported to Belize. The Belizean Bloods narcotics distribution route allegedly included Illinois, Utah, Ohio, Indiana, New York and California.

Johnson, approximately 30, of Chicago and Evanston, also known as “Kaiden Bennett” and “Kalvin Howell,” appeared in Federal Court in Salt Lake City and remains in custody pending a detention hearing tomorrow. Other defendants arrested yesterday in Chicago were scheduled to appear this morning before U.S. Magistrate Judge Arlander Keys in Federal Court in Chicago.

The five defendants arrested Tuesday afternoon in Chicago appeared before Magistrate Keys yesterday and remain in custody pending detention and preliminary hearings at 9:30 a.m. next Tuesday. Three of them, Myreon Flowers, 39, of Chicago, aka “Diesel;” Anward Trapp, 31, of Chicago, aka “Bernard Gillett,” “Herman Flowers,” and “Smash;” and Rudy Space, 30, of Chicago; were charged with conspiracy to possess and distribute cocaine for allegedly planning to rob a purported 50 kilograms of cocaine from a purported “stash” garage in Berwyn. The complaint alleges that they were involved in conversations and planning with an undercover agent and a cooperating witness to engage in a purported armed robbery, and shooting if necessary, of three members of a Mexican drug cartel on Tuesday. They were arrested at meeting spot in Lyons as they prepared to descend upon the fictitious stash location. (United States v. Myreon Flowers, et al., 11 CR 779.) Arrested with them were David Flowers, 34, of Chicago, and Duane Jones, 28, of Chicago, aka “Duane Tillett,” and “Dido,” who are facing separate charges of distributing crack cocaine, together with Myreon Flowers and Eric Burnett, 24, of Chicago. (United States v. David Flowers, et al., 11 CR 770.)

Summaries of the remaining cases follow:

United States v. Johnson, et al., (11 CR 763)

Jerry Johnson, together with Sheldon Morales, 30,of Wheeling, an alleged member of the Gangster Disciples street gang who supplied Johnson with powder cocaine; Douglas Wilson, 57,of Evanston; and Tyrita Myers, approximately 24,of Chicago; were charged with conspiracy to possess and distribute wholesale quantities of cocaine and crack cocaine between August 2010 and March 2011.

United States v. Ward, (11 CR 764)

Anderson Ward, 29, of Chicago, was charged with possession of crack cocaine with intent to distribute in March 2011.

United States v. Gentle and Ellis, (11 CR 766)

William Gentle, 30, of Chicago, and Richard Ellis, 18, of Evanston, were charged with conspiracy to possess and distribute crack cocaine between May and July this year.

United States v. Gadson and Walker, (11 CR 767)

Gilbert Gadson, 45, of Chicago, aka “Gilbert Gatson,” and Roy Walker, 52, of Chicago, were charged with conspiracy to possess and distribute crack cocaine in January and February this year.

United States v. Glen Flowers, (11 CR 768)

Glen Flowers, 40, of Skokie, aka “Glen Gillett,” “William Powell,” and “Herbert Williams, Jr.” was charged with passport fraud for attempting in December 2010 to fraudulently renew a U.S. passport in the name of Herbert Williams, Jr.

United States v. Gibson and Glen Flowers, (11 CR 769)

The same Glen Flowers was charged with distributing powder cocaine, and Harrington Gibson, 63, of Chicago, aka “Uncle Harry,” was charged with distributing crack cocaine on June 29, 2011.

United States v. Perez, et al., (11 CR 771)

Carlos Perez, 41, of Chicago; Alfredo Castro, age and residence unavailable; and Jonathan Vaughan, 26, of Chicago, were charged with distributing cocaine on Oct. 20, 2011.

United States v. Trapp, et al., (11 CR 772)

Anwar Trapp, together with Wilton Bennett, 29, of Chicago; Marlon Conorquie, 36, of Chicago, aka “Dread;” and Alix Aurele, 37, of Dolton, were charged with distributing crack cocaine or heroin in September and October this year.

The defendants are facing various maximum penalties on the narcotics charges, ranging from a maximum of 20 years in prison to mandatory minimum sentences of either 5 or 10 years to a maximum of 40 years or life in prison, together with maximum fines of $250,000, $2 million or $4 million. The passport fraud charges carry a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The government is being represented by a combination of Assistant United States Attorney Jessica Romero, Meghan Morrissey, Christopher Grohman and Kate Zell.

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Todd Stark, Reputed Mob Associate of Nicodemo S. Scarfo, Pleads Guilty

A former bartender and reputed mob associate pleaded not guilty Wednesday to supplying boxes of bullets to mobster Nicodemo S. Scarfo, a convicted felon barred by law from possessing guns or ammunition.

Todd Stark, 43, of Ocean City, N.J., entered the plea during a brief hearing in U.S. District Court in Camden.

Stark is among 12 defendants indicted with Scarfo, 46, in a multimillion-dollar financial-fraud case. He is the only one not charged with involvement in what prosecutors allege was the systematic looting of the FirstPlus Financial Group, a Texas company that authorities allege Scarfo secretly took control of in 2007.

Stark, Scarfo, and five other defendants were charged with conspiracy to provide firearms or ammunition to a convicted felon.

Scarfo, who has been held without bail pending a detention hearing and arraignment Friday, also is charged with illegal possession of a weapon.

Most of the defendants have pleaded not guilty and are free on bail.

Others, including Scarfo, have not yet entered pleas.

The weapons charges, while not directly connected to the financial fraud, underscore allegations that the looting of FirstPlus was based, in part, on Scarfo's organized-crime connections.

Authorities allege that Scarfo, of Galloway Township, N.J., and defendant Salvatore Pelullo, 44, of Elkins Park, used threats of violence and their ties to the mob to intimidate officials with the firm and eventually take control of the company.

The 25-count indictment charges that proceeds from the scam, estimated at more than $12 million, were "distributed to members and associates of LCN (La Cosa Nostra)."

Pelullo, described by associates as a "wannabe wiseguy," is identified in court documents as an associate of the Philadelphia crime family formerly headed by Scarfo's father, "Little Nicky" Scarfo, and the Lucchese crime family in New York.

The indictment alleges that Scarfo and Pelullo kept a "cache of weapons."

They included two rifles, a shotgun, two pistols, a revolver, and more than 2,500 rounds of ammunition found on a yacht owned by Scarfo and Pelullo during an FBI raid in May 2008.

The yacht, christened "Priceless," was purchased for $850,000 by the pair with funds taken from FirstPlus, authorities said. Docked in Miami, it was used by the men and their associates to cruise the Bahamas.

It was seized by authorities during the investigation.

Authorities found a .38-caliber pistol in Pelullo's business office in Philadelphia; a .32-caliber pistol in his home; and a 9mm pistol, a .357 revolver, and more than 100 rounds of ammunition in Scarfo's home, according to Tuesday's indictment.

Stark is charged with purchasing two boxes of 9mm bullets from an Atlantic County gun shop in December 2007 and passing them to Scarfo.

John Maxwell, the former CEO of FirstPlus and a defendant in the pending case, is charged with buying a .357 revolver from a pawn shop in Dallas in September 2007 and driving "for approximately 48 hours from Texas to Atlantic City . . . where he delivered the revolver" to Scarfo.

At a news conference Tuesday, FBI Agent Michael B. Ward said the case was an example of the evolution of organized crime from "the back alleys to the board room."

No matter the locale, Ward said, the mob continues to use "physical threats and intimidation to gain leverage."

Thanks to George Anastasia

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Little Nicky Scarfo Jr's Son Among 12 Arrested and Charged with Racketeering

The son of a Philadelphia mob boss, Nicodemo "Little Nicky" Scarfo Jr., and 12 others, are charged with racketeering and other offenses in an indictment handed down Tuesday morning. And Federal prosecutors say members of that mob have turned to a modern crime -- pillaging the assets of a mortgage company -- in a sign that organized crime is evolving to include more white-collar crime.

Thirteen people -- including lawyers and an accountant -- were charged in a federal indictment unsealed Tuesday. Most of them were arrested in raids throughout the morning in New Jersey, Florida and Texas.

Among them were Nicodemo S. Scarfo, the son of imprisoned Lucchese crime family boss Nicodemo D. "Little Nicky'' Scarfo, five lawyers and a certified public accountant. Eight of them were due in court Tuesday afternoon.

They face charges including racketeering, wire fraud, money laundering, false statements on a loan application, securities fraud. Maximum penalties range from five years in prison to decades. "The criminal activity is evolving,'' said Michael Ward, agent-in-charge of the FBI in Newark. "It's going from the back alleys to the boardrooms.''

Authorities say the plot started in April 2007, when the younger Scarfo and his associate Salvatore Pelullo, who has previously been convicted of financial crimes, decided to take over FirstPlus Financial Group, a publicly traded mortgage company based in Irving, Texas. Authorities said it was a company with a lot of cash but not much sophistication.

The indictment charges Scarfo and Pelullo used threats to help wrest control of the company. Pelullo is accused of telling a member of the FirstPlus' board that if he didn't go along with the plan, "your kids will be sold off as prostitutes.''

The indictment says he later told others who were charged in the scheme to get the company's board to agree to hand control to his and Scarfo's new directors -- and he wanted it done immediately. He allegedly told them: "I don't care if they're in a funeral parlor, I don't care if they're in a (expletive) hospital on a respirator, we'll send somebody there. I want their vote, I want their signature, and I want it done by the close of the day today.''

Authorities say the elder Scarfo, serving in a federal prison in Atlanta, was apprised of the plot, but that he was not charged because he's expected never to be released.

After getting control of FirstPlus, Scarfo and Pelullo are accused of having it buy shell companies they owned so they could take out money. After that, authorities said, they signed a series of consulting contracts to pay themselves even more.

In less than a year, authorities said, they took $12 million and spent it on multiple homes, including one for Scarfo's ex-wife; weapons and ammunition, a plane, an Audi, a Bentley, $30,000 in jewelry and an 83-foot, $850,000 yacht they named "Priceless.'' U.S. Attorney Paul Fishman wouldn't say exactly how authorities got onto the plot, but he said it ended with a series of raids in 2008.

Since then, FirstPlus has filed for bankruptcy, blaming the alleged criminals for wrecking the firm.

Fishman said the alleged conspirators were planning one more "piece de resistance:'' They wanted to pump up the stock price of FirstPlus and sell off the company. He said that was their exit strategy. "We had a different exit strategy.''

Thanks to NBC40

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NCAA Compared to Al Capone's Mafia

A Democratic congressman compared the NCAA to the Mafia over how it controls the lives of student athletes.

"I think they're just one of the most vicious, most ruthless organizations ever created by mankind," Illinois Rep. Bobby Rush said of the NCAA at a congressional forum on college sports Tuesday. "I think you would compare the NCAA to Al Capone and to the Mafia."

Rush made the accusations at the forum called to look at the impact of "back-room deals, payoffs and scandals" in college sports. The congressman spoke after hearing from a couple of mothers of former student-athletes who complained of ill treatment by schools after their sons suffered injuries.

"Congressman Rush obviously doesn't know the NCAA," Bob Williams, a spokesman for the organization, said in an email Tuesday night. "The NCAA and its member institutions provide over $2 billion per year in scholarships, financial assistance and academic support to student-athletes ... second only to the federal government. Student-athlete success is our mission."

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"Mafia: The Glamour of Crime" by Fien Mynendonckx

“As far back as I can remember, I wanted to be a gangster. To me, being a gangster was better than being President of the United States.“–Ray Liotta, Good Fellas

One look at the cover of Mafia: The glamour of crime and one knows it’s an important book. It’s big, it’s classy, and it’s riddled with bullet holes. Fans of gangster movies, mob movies, and The Sopranos will be indebted to their benefactors if this handsome volume finds its way to their piles of holiday gifts.

Filled with both black and white and color photos, and many two-page spreads, Mafia: The Glamour of Crime, authored by Fien Mynendonckx, is a stunning resource that mixes true-crime memories with Hollywood fantasy. There are numerous photographs of real-life mobsters and gangsters and even more stills from the most famous gangster films--The Godfather franchise, Good Fellas, Bugsy, The Untouchables, Pulp Fiction, Reservoir Dogs, Scarface and many others.

Mafia: The Glamour of Crime begins with a short introduction and then introduces “Mafia In America,” a chapter that includes the Cosa Nostra, the Irish Mob, and the Kosher Nostra. The following chapter also focuses on history, “Brief History of the Mafia in America,” which looks at a Mafia timeline that starts in 1910 and continues through 1990, finally asking “What now?”

For those unfamiliar with “consigliere,” “waste management business,” “sit-down,” “omerta,” and “Shylock,” there is a glossary that translates mob-talk into English, French and German. And really…you never know when it might come in handy.

“The Stereotype of the Gangster,” a chapter that includes “Real Gangsters,” “Gangster Actors” and “The Gangster Film” leads us into the world of entertainment, where we find “The Mafia in Hollywood.” Film buffs will think they’re in heaven when they browse through the fantastic photos (my personal favorite? A two-page spread for Good Fellas).

The book closes with chapters on the Mafia throughout the world, the reality of the Mafia, an epilogue, and clever quotes from both real-life and celluloid mobsters. Mafia: The Glamour of Crime is more a history of the Mafia on film than it is of the Mafia, and it addresses the romance that Hollywood (and other places throughout the world) has created from Mafia legends, but it is also a very satisfying scrapbook of anecdotes.

Thanks to Bob Etier

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Gangsters Expand to White-Collar Crime and Cyber Attacks

When is credit-card theft a good thing? When the culprits might otherwise be killing you.

The Federal Bureau of Investigation says national gangs like the Bloods and Crips are becoming more sophisticated, turning to white-collar financial crime and cyber attacks that threaten Corporate America and, well, everyone.

The evolving criminal schemes, which include mortgage fraud, counterfeiting, bank and credit card fraud and identity theft, are attractive because they are much less risky than traditional gang-related crimes such as murder, drug trafficking and robbery, and have the potential to yield much greater profits, according to a new national gang threat assessment from the FBI.

“In sort of a macro-sense, if they are hacking into people’s computers rather than killing them in cold blood, that’s a good thing, in some respects,” said Jonathan Armstrong, a partner at Duane Morris who practices Internet law. However, these gangs, which also include the Latin Kings, Aryan Brotherhood and Texas Syndicate, are growing in size, with membership up 30% to 1.4 million compared with 2009, and the FBI says they are becoming more dangerous.

“Gangs are more adaptable, organized, sophisticated, and opportunistic, exploiting new and advanced technology as a means to recruit, communicate discretely, target their rivals, and perpetuate their criminal activity,” the FBI said.

This heightened threat among U.S. gangs brings to light the increased volume of financial crimes and hacking seen across all industries over the last few years, which have already cost corporations, retailers and innocent people billions of dollars. “It’s an issue and I think it’s one that’s definitely accelerating,” Armstrong said. “I think we ought to be worried.”

Financial crime has picked up significantly over the last few years amid financial turmoil and technological advances. Ponzi and other high-yield investment fraud schemes surged when the Dow Jones Industrial Average plunged from a high of 14,164 in October 2007 to 6,547 in March 2009, the FBI said in its 2009 Financial Crimes Report.

While authorities have cracked down, the development of new schemes, such as securities market manipulation via cyber intrusion, has put fraud on the rise, the FBI said. From 2004 through 2009, fraud investigations increased by 33%, bringing losses associated with those schemes into the billions of dollars.

Of course, U.S. street gangs aren’t at the crux of financial crime in the U.S. just yet, which is typically led by professionals and swindlers within the banking system or high-tech cyber hackers. However, the gangs’ sophistication offers yet another impediment to authorities trying to suffocate white-collar crime and a sign these groups may continue to evolve into high-yielding complex schemes, forming much more lucrative enterprises.

Gangs such as the Bloods, Crips and La Nuestra Familia that are undertaking white-collar crime are recruiting members that possess the necessary high-tech skill sets, according to the FBI.

Some that run these criminal gangs could run corporations,” Armstrong said. “They push out less profitable businesses and build up the more profitable (ones), just as a corporation would.”

The FBI says gang members are exploiting vulnerabilities in the banking and mortgage industries for profit. They are turning to counterfeit and identity theft, using methods such as skimming to steal account numbers from ATMs or retail card readers.

Mortgage fraud is also on the rise, and gangs, such as the Gangster Disciples, are purchasing properties with the intent to receive seller assistance loans, only to retain proceeds from the loans or co mingle illicit funds through mortgage payments.

In April 2009, members of the Bloods in San Diego were charged with mortgage fraud, and in August 2010, members of the Black Guerilla Family in Maryland used pre-paid retail debit cards as virtual currency inside Maryland to buy drugs and further the gangs’ interests, according to the FBI.

“Wall Street has a brilliant system for pushing money around the world. So does organized crime,” Armstrong said, liking the underground profit-driving activities to an “underworld banking system.”

Earlier this month, authorities in New York arrested more than 100 service-sector employees in the city and dismantled five separate criminal enterprises operating out of Queens in a multi-million dollar counterfeiting scheme. New York Police Commissioner Raymond Kelly had said that while those crimes weren't holdups at gunpoint, the impact on victims was just as bad.

Robert Rebhan, a former Los Angeles Police Department officer who later directed a credit card fraud prevention program for American Express (AXP: 52.10, +0.29, +0.56%), notes that those are the kind of stunts, which are less risky and more profitable than traditional street crimes, that gangs are likely pursuing.

“If I have dirty money from a drug steal I need the underwater market to clean it up, so I might only get 20% return,” Armstrong said. “But if I can make it credit card fraud, then I can probably get better than a 20% return rate, particularly if I can use the compromised credit card to buy real goods and turn over those goods on an auction site.”

Cyber criminals typically steal a smaller amount of money from a large number of victims. Since, credit card companies and banks aren’t reporting minor counterfeiting cases to the Federal Trade Commission, it becomes the responsibility of victims.

Rebhan, who is a financial crimes expert, says 95% of those are never reported – making web-based fraud tougher to identity. “It’s not a critical step in recovering your identity - it’s a pain,” he said. “So when you hear crime is down – don’t believe that’s true of financial crimes.”

U.S street gangs are likely a ways off from operating botnets and siphoning massive funds from corporations, Rebhan said, noting the FBI is probably using “cyber crime” in a broader sense. However, criminal groups are becoming increasingly savvy and embracing advanced technology to enhance operations, according to the FBI.

Gangs are using social networking like Facebook, YouTube and Twitter to recruit new members and communicate globally and more discreetly without the proximity once needed for communication. “The proliferation of social networking websites has made gang activity more prevalent and lethal—moving gangs from the streets into cyber space,” the FBI said.

Many also use the Internet to carry out crimes such as computer hacking, cyber attacks and phishing schemes, which are used to illegally acquire personal information such as usernames, passwords and credit card information. But besides the attractive profits, gangs are also finding the web more enticing because of the less-stringent punishment faced by cyber criminals, at least compared with robbery and murder. Where a robbery can lead to a seven-year sentence, counterfeiting or identity fraud using the web could lead to just a few months of jail time, Rebhan said.

Of course, there are some exceptions, including Tien Truong Nguyen, who was sentenced last year to more than 12 years in prison for his role in a phishing scam that impacted more than 38,000 victims, and Albert Gonzalez, who was sentenced to 20 years for the Heartland Payment Systems (HPY: 21.62, +0.37, +1.74%) data breach. But for the most part, catching and punishing cyber criminals takes a certain skill set that many in law enforcement and judiciaries just don’t have yet, the experts say. Because of that, white-collar crime is slated to grow among street gangs.

“There’s no formal education given to the judiciary on cyber crimes – the jury is perplexed by these crimes and the judge is also – (they) don’t have a clue of bytes, bits or how malware is written,” Rebhan said.

Thanks to Jennifer Booton

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Jack Kennedy: Elusive Hero

A new portrait of John F. Kennedy based on interviews with those who knew him best, by Chris Matthews, bestselling Kennedy expert and host of Hardball.

By following the journey of Jack Kennedy’s life from his school days to the White House, through war and illness and his greatest triumphs, Chris Matthews brings us much closer to the man Jack Kennedy really was.

We know so much about President John F. Kennedy, yet even his wife Jacqueline described him as “that elusive man.” To MSNBC Hardball host Chris Matthews, Kennedy has long been both an avatar and a puzzle, a beacon and a conundrum. “Whenever I spot the name in print, I stop to read. Anytime I’ve ever met a person who knew him—someone who was there with JFK in real time—I crave hearing their first-person narrative.”

For years, Matthews has been collecting those stories. In Jack Kennedy: Elusive Hero, the bestselling author and Kennedy expert has woven those firsthand encounters with JFK into a great American Bildungsroman, telling the tale of how Kennedy grew from a child of privilege into a war hero and finally President of the United States, all the while coping with a life-threatening disease.

“In searching for Jack Kennedy my own way,” Matthews writes, “I found a fighting prince never free from pain, never far from trouble, never accepting the world he found, never wanting to be his father’s son. He was a far greater hero than he ever wished us to know.”

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Mark Polchan Sentenced to 60 Years in Prison

Mark Polchan — a high-ranking member of the Outlaws motorcycle club who was also the righthand man to a Chicago mob boss — was sentenced Friday to 60 years in prison for helping run a group of criminals who robbed jewelry stores and bombed a business in Berwyn.

Polchan, 43, looked at one of his attorneys, his eyes wide, after U.S. District Judge Ronald Guzman handed down the prison sentence. “Every dollar he made had a victim,” Guzman said of Polchan, who ran a pawn shop in Cicero that the judge said was “the epicenter” of the organized criminal enterprise.

Polchan was a career criminal who treated his family well but was in the business of “terrorizing the rest of us,” the judge said.

Polchan oversaw a group of men who robbed jewelry stores and also arranged for the bombing of a Berwyn storefront that was competing with a video-poker business run by reputed Cicero mob boss Michael Sarno, who is to be sentenced next month.

Polchan’s attorneys argued that he wasn’t a leader of the organization and that much of the testimony against him at trial was from unreliable informants — arguments the judge rejected.

Polchan declined to make a statement. “Your honor, I was gonna say some things, but I’m kind of overwhelmed by some of the things I heard,” Polchan said, after a description of his wrongdoing by federal prosecutor Amarjeet S. Bhachu. “I can’t do it.”

In handing down the sentence, Guzman said, “the public needs to be protected from Mr. Polchan and the idea that organized criminal activity might be worth something, might be worth doing.” The case was investigated by the ATF, the FBI and the IRS.

Polchan will likely spend more time in prison than his boss, Sarno, given the way the men were charged. When Sarno is sentenced Nov. 18, he can face a maximum prison sentence of 25 years, much less than Polchan.

Polchan was charged first in the case, and by the time the federal investigation was wrapped up against Sarno, the statute of limitations for the Berwyn bombing had expired, so Sarno couldn’t be charged with that crime. Polchan’s conviction on the bombing charge alone guaranteed him a minimum prison sentence of 30 years, a fate Sarno will not face.

Thanks to Steve Warmbir

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Rudy "The Chin" Fratto Pleads Guilty

“The Chin” has migraines.

It’s no wonder why Rudolph “Rudy The Chin” Fratto, 67, a reputed Chicago mobster, takes medicine for the crippling headaches.

Just a few months after he was released from prison for tax evasion, he pleaded guilty Thursday in federal court in Chicago to another crime — mail fraud for taking part in a scheme to rig bids for forklift contracts for trade shows at McCormick Place.

Fratto won one contract but couldn’t produce any forklifts, so the scheme made no money.

Still, Fratto is likely going to be sentenced to prison, from 18 to 24 months in February.

Despite all this stress, Fratto has been migraine-free recently, he told a federal judge Thursday afternoon. “But you haven’t had a migraine in the last few days?” U.S. District Judge Harry Leinenweber asked. “No, remarkably,” Fratto said.

In January 2005, Fratto met a consultant to a general contractor who set up trade shows at McCormick Place. The consultant was in debt to a Chicago attorney and mobsters in Cleveland after they invested in the consultant’s business, which failed.

Fratto offered to help the consultant with the debt but also wanted inside information on the forklift bids. Fratto was unaware that the consultant was already cooperating with the FBI and secretly recording conversations with him and others.

As it became clear to Fratto in 2008 that the feds were investigating him over bid rigging, he expressed confidence that he wouldn’t get caught, as long as everyone kept their mouths shut. Fratto worried out loud that the FBI could be bugging his phone but mentioned he was using payphones. He told the consultant to take the 5th Amendment if he was questioned before a federal grand jury.

“The only thing they could say is that we rigged the bid,” Fratto predicted. “How they gonna prove that?”

Outside court Thursday, the usually chatty Fratto, who once referred to himself as a “reputed good guy,” had no comment.

Thanks to Steve Warmbir

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ABC7 Chicago Investigative Report to Be Used by Feds in Michael Sarno Sentencing

Federal prosecutors are preparing to throw the book at Chicago mob boss Michael Sarno, using a page from an I-Team story.

In this Intelligence Report: Why the government's argument for a maximum sentence relies on something reported on ABC7.

Heading into Friday's sentencing, we have two very different portraits of Mike Sarno. He is either a good, family man and helpful member of the community, as his lawyers would have you believe, or he is a heavyweight mob boss with a ruthless management style as the government describes him.

Monday, U.S. prosecutors submitted to the court a 2003 I-Team report to support their argument that Sarno be sentenced to the longest possible term in prison.

ABC7's broadcast in June 2003 focused on a restructuring of the Chicago mob ordered by imprisoned outfit leader James Marcello. "Little Jimmy," as he is still known, was doing time for racketeering, gambling violations and extortion, and still running the outfit's business from the barbed-wire Hilton.

Included in the June 3, 2003, I-Team report was this information about who had been tapped to oversee the Chicago outfit: "This mob heavyweight, 350-pound Michael 'Fat Boy' Sarno, whom Marcello has just installed, according to U.S. law enforcement source."

Nine days later, 250 miles away, behind the walls of a penitentiary in Michigan, James Marcello and his brother Mickey discussed the I-Team's report.

JAMES MARCELLO: "How did they get a copy of the indictment? The motion?"

In recently released undercover FBI Marcello quizzes his brother on how the I-Team got its information.

MICHAEL MARCELLO: "Yea and ah, put together a new crew with the Trucker..."

A hand sign for a sizable waistline, according to prosecutors, is meant to indicate Michael Sarno, whose girth precedes him. Authorities say the gist of the jailhouse chatter: Sarno is connected to the top guy.

Based on his organized crime stature, this Friday, the government will ask that Sarno's sentence be enhanced to 25 years.

He was convicted last December with four other men of bombing a Berwyn video poker company that was competing with the mob. They were also found guilty in a string of outfit jewel heists.

In a separate filing Monday, defense attorneys dispute the contention that Sarno is a crime boss. They have submitted 100 letters from Sarno's friends, neighbors and relatives that portray him as a good family man and a fine American. They also cite his numerous health problems that they say could be compromised by a lengthy stay in prison.

Thanks to Chuck Goudie

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2010 Statistics on Law Enforcement Officers Killed and Assaulted

According to information released by the FBI, 56 law enforcement officers were feloniously killed in the line of duty last year; 72 officers died in accidents while performing their duties; and 53,469 officers were assaulted in the line of duty. The 2010 edition of Law Enforcement Officers Killed and Assaulted released today provides comprehensive tabular data about these incidents and brief narratives describing the fatal attacks.

Felonious Deaths

The 56 felonious deaths occurred in 22 states and Puerto Rico. The number of officers feloniously killed in 2010 increased by eight compared with the 2009 figure (48 officers). The five- and 10-year comparisons show an increase of eight felonious deaths compared with the 2006 figure (48 officers), and a decrease of 14 deaths compared with data from 2001 (70 officers).

Officer Profiles: Among the officers who were feloniously killed, the average age was 38 years. The victim officers had served in law enforcement for an average of 10 years at the time of the fatal incidents. Fifty-four of the victim officers were male, and two were female. Forty-eight of the officers were white, seven were black, and one was Asian/Pacific Islander.

Circumstances: Of the 56 officers feloniously killed, 15 were ambushed; 14 of the slain officers were involved in arrest situations; eight were investigating suspicious persons/circumstances; seven were performing traffic stops/pursuits; six were answering disturbance calls; three were involved in tactical situations (e.g., high-risk entry); two were conducting investigative activity such as surveillance, searches, or interviews; and one officer was killed while transporting or maintaining custody of prisoners.

Weapons: Offenders used firearms to kill 55 of the 56 victim officers. Of these 55 officers, 38 were slain with handguns, 15 with rifles, and two with shotguns. One officer was killed with a vehicle used as a weapon.

Regions: Twenty-two of the felonious deaths occurred in the South, 18 in the West, 10 in the Midwest, and three in the Northeast. Three of the deaths took place in Puerto Rico.

Suspects: Law enforcement agencies identified 69 alleged assailants in connection with the 56 felonious line-of-duty deaths. Fifty-seven of the assailants had prior criminal arrests, and 19 of the offenders were under judicial supervision at the time of the felonious incidents.

Accidental Deaths

Of the 72 law enforcement officers killed in accidents while performing their duties in 2010, the majority of them (45 officers) were killed in automobile accidents. The number of accidental line-of-duty deaths was up 24 from the 2009 total (48 officers).

Assaults

In 2010, 53,469 law enforcement officers were assaulted while performing their duties. Of the officers assaulted, 26.1 percent suffered injuries. The largest percentage of victim officers (33.0 percent) were assaulted while responding to disturbance calls (family quarrels, bar fights, etc.). Assailants used personal weapons (hands, fists, feet, etc.) in 81.8 percent of the incidents, firearms in 3.4 percent of incidents, and knives or other cutting instruments in 1.7 percent of the incidents. Other types of dangerous weapons were used in 13.1 percent of assaults.

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William Anthony Degironemo, Reputed Chicago Outfit Operative, Pleads Guilty to Mail Fraud

A co-defendant of a man reputed to be a top operative for the Chicago Outfit pleaded guilty Thursday in the rigging of contracts to supply forklifts for two trade shows at McCormick Place.

William Anthony Degironemo, 67, an Inverness resident who operated MidStates Equipment Rental and Sales, pleaded guilty to mail fraud in federal court.

As part of the agreement, prosecutors will move to dismiss a charge of making a false statement to a federal agency and will recommend that Degironemo be sentenced to up to 21 months in prison. Sentencing was scheduled for Feb. 16.

Degironemo and Rudy Fratto, a Darien resident and reputed mob lieutenant nicknamed "the Chin," were charged in 2010 after they were accused of using confidential information about competitors' bids to undercut the competition and win the contracts.

A consultant who owed $350,000 to organized-crime figures in Cleveland allegedly gave the information to Fratto in exchange for Fratto's offer to intervene with the Ohio mobsters, according to court documents.

Fratto's trial is scheduled to begin next month.

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$1.6 Trillion Reported to Have Been Laundered by Organized Crime World-wide

Criminals may have laundered around $1.6 trillion in 2009, one fifth of that coming from the illicit drug trade, according to a new report by the United Nations Office on Drugs and Crime (UNODC).

The $1.6 trillion represents 2.7 per cent of global gross domestic product (GDP) in 2009, says the agency. This figure is in line with the range of two to five per cent of global GDP previously established by the International Monetary Fund (IMF) to estimate the scale of money-laundering.

The report, entitled Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimeAll criminal proceeds, excluding tax evasion, would amount to some $2.1 trillion or 3.6 per cent of GDP in 2009, according to the report., also says that the “interception rate” for anti-money-laundering efforts at the global level remains low.

Globally, it appears that much less than one per cent of illicit financial flows are currently being seized and frozen.

“Tracking the flows of illicit funds generated by drug trafficking and organized crime and analysing how they are laundered through the world’s financial systems remain daunting tasks,” stated UNODC Executive Director Yury Fedotov, who launched the report today in Marrakech, Morocco, during the week-long meeting of the Conference of the Parties to the UN Convention on Corruption.

The report points out that “dirty money” promotes bribery and corruption, finances insurgency and, in some cases, terrorist activities. It also destabilizes and deters legitimate enterprise, foreign investment and development.

All criminal proceeds, excluding tax evasion, would amount to some $2.1 trillion or 3.6 per cent of GDP in 2009, according to the report. Of this total, the proceeds of transnational organized crime, such as drug trafficking, counterfeiting, human trafficking and small arms smuggling, would amount to 1.5 per cent of global GDP, 70 per cent of which would likely have been laundered through the financial system.

The illicit drugs trade, which accounts for half of all transnational organized crime proceeds and one fifth of all crime proceeds, is the most profitable sector, UNODC notes.

The report focused on the market for cocaine, probably the most lucrative illicit drug for transnational criminal groups. Traffickers’ gross profits from the cocaine trade stood at around $84 billion in 2009.

While Andean coca farmers earned about $1 billion, the bulk of the income generated was in North America ($35 billion) and in West and Central Europe ($26 billion). Close to two thirds of that total may have been laundered in 2009.

The findings suggest that most cocaine-related profits are laundered in North America and in Europe. The main destination to process cocaine money from other subregions is probably the Caribbean.

The report says that for drug-related crime, there tends to be a significant “re-investment” of illicit funds into drug trafficking operations which have major negative implications for society at large.

Once illegal money has entered the global and financial markets, notes UNODC, it becomes much harder to trace its origins, and the laundering of ill-gotten gains may perpetuate a cycle of crime and drug trafficking.

“UNODC’s challenge is to work within the UN system and with Member States to help build the capacity to track and prevent money-laundering, strengthen the rule of law and prevent these funds from creating further suffering,” said Mr. Fedotov.

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Michael Sarno Could Face 25 Years in Prison

The Chicago mob’s “Large Guy” could take a big fall — if federal prosecutors get their way.

Prosecutors are providing a detailed look at reputed Cicero mob boss Michael “The Large Guy” Sarno’s ties to organized crime in a new court filing as they ask a federal judge to sentence Sarno to the maximum possible prison sentence — 25 years behind bars.

Sarno was convicted in December of racketeering conspiracy and illegal gambling and is set to be sentenced Friday in federal court in Chicago. The conviction is Sarno’s third for mob crimes — and one that could put him in prison until his 70s.

Federal prosecutor Amar-jeet S. Bhachu describes Sarno as a career criminal who began his Outfit work in 1975. Prosecutors write “it is obvious that he does not care about the law.

“His interest today still lies with taking what he wants for himself and other members of organized crime . . .”

Sarno was convicted at trial with four other men in which prosecutors described a slew of crimes, including a bombing of a Berwyn company in competition with the mob’s video poker business along with a burglary ring that targeted jewelry stores.

Sarno ordered the bombing of the Berwyn business and controlled the burglary ring, prosecutors said.

Sarno began running the Outfit’s Cicero crew after the disappearance of mobster Anthony Zizzo in 2006, who is presumed to have been murdered, although his body has never been found.

Sarno, who at his biggest has tipped the scales at more than 300 pounds, has several mob nicknames, including “Big Mike,” “Large” and “Fat Ass.” When he was a free man, Sarno often was seen with his close friend, Salvatore Cataudella, convicted in a juice loan case. The pair was dubbed “Mutt and Jeff.”

They were referred to by the nicknames in a secretly recorded conversation between Chicago mob boss James Marcello and his half-brother Michael Marcello in 2003.

An attorney for Sarno could not be reached Sunday, but a former lawyer for him has disputed the characterization of Sarno by federal prosecutors and the FBI’s informants.

Thanks to Steve Warmbir

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Mob Museum Now The National Museum of Organized Crime & Law Enforcement

Nothing personal, Las Vegas. It's just business.


The Mob Museum is now known as the National Museum of Organized Crime & Law Enforcement -- swapping its original Las Vegas title for one more reflective of its content, museum officials said.

The museum, which is scheduled to open Feb. 14, 2012, to coincide with the 83rd anniversary of the St. Valentine's Day Massacre, will tell the story of organized crime as it affected the entire country, not just Las Vegas.

That isn't to say Sin City's mob stories are lessened in any way, said Jonathan Ullman, the museum's executive director. Prominent mob figures had a higher profile in other cities nationwide, including Chicago and New York.

"You really cannot tell this story without addressing larger national content," Ullman said. "We cover Prohibition, immigration and the evolution of the criminal justice system. We believe our name should reflect our status as a world-class museum and a foremost venue for an informal education on this subject matter."

The name change is showcased on the museum's website, themobmuseum.org. The decision was finalized in August and "embraced by representatives at the city, the museum board and other key stakeholders," Ullman added.

"We hope it's not perceived as a slight on anyone in the local community," he said. "There's a great deal of community pride in this venue."

Former Las Vegas Mayor Oscar Goodman, who used to work as an attorney representing reputed organized crime figures and was involved in bringing the museum to the area, said he welcomed the change. "It should be more expansive," Goodman said. "I think it should be called the international museum. As we got into this whole project, we saw this is an international story of folks coming from foreign lands into the United States as immigrants and becoming a part of what was referred to as organized crime."

Goodman added that no one should consider the change negatively. "This is a great thing," he said.

The $42 million Mob Museum will be dedicated to the history of organized crime and the law enforcement that hunted mobsters for decades. It is expected to draw 600,000 visitors annually once it opens at 300 Stewart Ave.

The Depression-era building is a historic former federal courthouse and post office included on both the Nevada and National Registers of Historic Places.

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Roberto Saviano, Author of Naples Mafia Book "Gomorrah", Wins PEN/Pinter International Writer of Courage Award.

Italian writer Roberto Saviano, who has lived under police protection since penning 2006 bestseller "Gomorrah" about Naples' mafia, has won the PEN/Pinter International Writer of Courage Award.

Saviano, 32, shares the award with Briton David Hare, who is perhaps best known for his work about British institutions.

Each year a British writer is honored with the PEN/Pinter award, established in 2009 by literary and human rights organization PEN in memory of Nobel Prize-winning playwright Harold Pinter, alongside another writer who has been persecuted for expressing his or her beliefs.

"Roberto Saviano took on the Neopolitan mafia, first in the novel Gomorrah and then in the film made from it," playwright Hare said at an awards ceremony in London on Monday.

"He did so at great risk to his own safety. My hope in sharing my prize with him is that a measure of recognition from PEN may, in however small a way, make his life easier."

Saviano, now living in hiding following threats to his life, sent a message expressing gratitude.

"When you feel that so many need to see, to know and to change, and not just to be entertained or comforted, then it is worth it to carry on writing," he said in a statement released by organizers.

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John Gotti Movie Starring John Travolta is Placed on Hold

John Travolta’s upcoming movie about the notorious Gotti family has been put on hold due to financial issues, according to a report.

The Hollywood actor is due to star as late Mafia boss John Gotti, who died in prison in 2002, in upcoming movie Gotti: In the Shadow of My Father, alongside his real-life wife Kelly Preston and Al Pacino.

Filming is slated to begin in January ahead of a 2012 release date, but a new report suggests production has been put on hold. Showbiz411.com reports work on the project has come to a halt and won’t resume until more financing is secured.

A source tells the website, “If (producer) Marc Fiore doesn’t come up with money this week, and doesn’t show that more is coming, and that he’s really secured financing, it could all fall apart.”

The film’s producers are also facing a legal battle with Goodfellas star Joe Pesci, who is suing bosses at Fiore Films over allegations he was offered a $3 million deal to play Angelo Ruggiero, an associate of Gotti, but was later told he would be given a smaller part.

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