Not Guilty Pleas in Armored Car Robbery Plot

Three men, two of whom were convicted years ago of stealing the 45-carat Marlborough Diamond from a London jewelry store, pleaded not guilty today in federal court in Chicago to charges they plotted to rob a suburban armored car.

Joseph Scalise, Arthur Rachel and Robert Pullia were arrested as they allegedly prepared to burglarize the South Side home of a deceased mob boss. They were indicted on charges they conspired to pull off a robbery as cash was being delivered to a LaGrange bank.

Assistant U.S. Atty. Markus Funk explained to U.S. District Judge Harry Leinenweber how the three were preparing to try to steal shrink-wrapped cash that would be delivered to the bank but said they were thwarted "due to the good work of the FBI."

"And because our clients weren't there," answered lawyer Terrence Gillespie, who represents Rachel.

Lawyers on both sides told the judge a trial is likely.

Scalise, 73, Rachel, 71, and Pullia, 69, were under investigation for a 2007 holdup at another LaGrange bank when they allegedly were discovered planning their new bank job. They were taken into custody in burglary clothes as they allegedly planned to break into the home of the late Anthony "the Hook" LaPietra, a leader of the Chicago mob's Chinatown street crew.

Scalise and Rachel are reputed mob associates who served time for the Marlborough Diamond theft. More recently, Scalise acted as a technical adviser on the Johnny Depp film, "Public Enemies," about gangster John Dillinger.

Thanks to Jeff Coen

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Ex-Cop, James Formato, Pleads Guilty in Mob Case

A former suburban police officer admitted that he took part in a mob-related ring of criminals responsible for robberies, burglaries and setting off a giant pipe bomb that blew apart the offices of a video gaming company.

James Formato, 43, a husky, bearded former member of the Berwyn police department, appeared before U.S. District Judge Ronald A. Guzman and pleaded guilty to charges of racketeering conspiracy and conspiracy to obstruct justice.

Formato also gave federal prosecutors a potential witness with inside knowledge of the alleged crime ring, pledging to cooperate with the government's seven-year investigation in exchange for leniency when he is sentenced.

Seven other defendants, including reputed mob boss Michael Sarno, have pleaded not guilty to charges in the indictment.

The investigation began in February 2003 after a giant pipe bomb ripped through the Berwyn offices of a video gaming company. Prosecutors say it was a message from the mob to stop horning in on its highly lucrative video gaming monopoly in the western suburbs.

Formato admitted in his signed plea agreement that as a Berwyn officer he found out that federal agents were interested in a brown van that had been seen in the vicinity of the blast. He said that through a go-between he sent the information to Mark Polchan, a Cicero jewelry store owner and member of the Outlaws motorcycle club who is among those charged. Polchan has pleaded not guilty.

Formato also admitted that in the fall of 2002 he was paid $3,000 for transporting $150,000, some of it the proceeds of a burglary, across state lines to his father in Florida.

Formato also said he served as a lookout outside a west suburban residence while two men were inside burglarizing it. He said he warned one of the burglars later that police had an artist's sketch of him. He also said he took part in at least two other home burglaries.

The maximum sentence for each of the two charges to which Formato pleaded guilty is 20 years in prison and the maximum fine is $250,000. But under his plea agreement, his cooperation with the government could earn him a sentence of 60 percent of the low end of the sentencing range under federal guidelines -- 78 to 97 months by preliminary calculations.

Thanks to CBS2Chicago

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Rudy "The Chin" Fratto on FBI Tapes in McCormick Place Case

The FBI recorded more than 50 conversations involving Chicago Outfit boss Rudy "The Chin" Fratto during an investigation of alleged big-rigging at the city's McCormick Place.

The existence of dozens of undercover tapes is disclosed in defense motions filed in federal court in Chicago.

Fratto, 66, the leader of the Mob's Elmwood Park crew according to federal authorities, was indicted with another man last month on charges that he used inside information to score a forklift deal at McCormick Place.

The Darien resident was due to report to prison on April 28 to begin serving a year-long sentence for income tax-evasion. Today's motion filed by his tax-case attorney Arthur Nasser asks for a delay in Fratto's reporting date. An attached affidavit from Donald Angelini, Jr., the attorney handling the sweetheart contract case, states that Fratto's defense would be "greatly hampered" if he was imprisoned and couldn't assist in the preparation.

Fratto is scheduled to serve the tax sentence at the Federal Correctional Institution in Ashland, Kentucky. Angelini Jr., son of the late Mob bookmaker Don "the Wizard of Odds" Angelini, said that he had received a 1500-page transcript of FBI undercover recordings along with more than 50 tapes. Mr. Angelini, Jr. said that he was only able to listen to three and a half hours of secretly recorded tapes and that without Fratto's help in deciphering the conversations, the defense would suffer.

The filing by Mr. Fratto's legal team in federal court also stated that there is "noise interference" on the tapes, making them "extremely difficult to interpret or understand."

Mr. Nasser will appear in the courtroom of U.S. District Judge Matthew F. Kennelly Tuesday morning to argue for an unspecified extension in Fratto's surrender date.

The plea for freedom seems far more somber than last month's swaggering courthouse performance by Fratto himself, that included a self-styled perp walk in the lobby, a couple of wise-guy wise-cracks on the sidewalk, and some special sound effects from his driver who was behind the wheel of the family Range Rover.

Fratto, considered by Mobwatchers to be one of Chicago's top five most powerful hoodlums, was indicted with Inverness businessman William "Billy" Degironemo. The men allegedly squeezed a consultant for inside information that helped then land a forklift contract. In exchange, Fratto allegedly offered to settle a $350,000 debt the consultant had with mafia bosses in Cleveland. Neither Fratto nor his partner knew that consultant was working undercover for the FBI.

Fratto's uncle, "Cockeyed Louis," testified at a 1950 Senate organized crime hearing. Another relative, Frankie "One Ear" Fratto, was a skilled loan shark.

Thanks to Chuck Goudie

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