The Chicago Syndicate
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Wednesday, October 31, 2007

La Cosa No More?

In early 2004, mob veteran Vincent Basciano took over as head of the Bonanno crime family. The reign of the preening, pompadoured Mafioso known as Vinny Gorgeous lasted only slightly longer than a coloring dye job from his Bronx hair salon.

Within a year, the ex-beauty shop owner with the hair-trigger temper was behind bars betrayed by his predecessor, a stand-up guy now sitting down with the FBI.
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It was a huge blow to Basciano and the once-mighty Bonannos, and similar scenarios are playing out from coast to coast. The Mafia, memorably described as "bigger than U.S. Steel" by mob financier Meyer Lansky, is more of an illicit mom-and-pop operation in the new millennium.

The mob's frailties were evident in recent months in Chicago, where three senior-citizen mobsters were locked up for murders committed a generation ago; in Florida, where a 97-year-old Mafioso with a rap sheet dating to the days of Lucky Luciano was imprisoned for racketeering; and in New York, where 80-something boss Matty "The Horse" Ianniello pleaded to charges linked to the garbage industry and union corruption.

Things are so bad that mob scion John A. "Junior" Gotti chose to quit the mob while serving five years in prison rather than return to his spot atop the Gambino family.

At the mob's peak in the late 1950s, more than two dozen families operated nationwide. Disputes were settled by the Commission, a sort of gangland Supreme Court. Corporate change came in a spray of gunfire. This was the mob of "The Godfather" celebrated in pop culture.

Today, Mafia families in former strongholds like Cleveland, Los Angeles and Tampa are gone. La Cosa Nostra our thing, as its initiates called the mob is in serious decline everywhere but New York City. And even there, things aren't so great: Two of New York's five crime families are run in absentia by bosses behind bars.

Mob executions are also a blast from the past. The last boss whacked was the Gambinos' "Big Paul" Castellano in 1985. New York's last mob shooting war occurred in 1991. And in Chicago, home to the 1929 St. Valentine's Day massacre, the last hit linked to the "Outfit" went down in the mid-1990s.

The Mafia's ruling Commission has not met in years. Membership in key cities is dwindling, while the number of mob turncoats is soaring.

"You arrest 10 people," says one New York FBI agent, "and you have eight of them almost immediately knocking on your door: `OK, I wanna cut a deal.'"

The oath of omerta silence has become a joke. Ditto for the old world "Family" values honor, loyalty, integrity that served as cornerstones for an organization brought to America by Italian immigrants during the era of Prohibition. "It's been several generations since they left Sicily," says Dave Shafer, head of the FBI organized crime division in New York. "It's all about money."

Which doesn't mean the Mafia is dead. But organized crime experts say the Italian mob is seriously wounded: shot in the foot by its own loudmouth members, bloodied by scores of convictions, and crippled by a loss of veteran leaders and a dearth of capable replacements.

The Bonannos, along with New York's four other borgatas (or families), emerged from a bloody mob war that ended in 1931. The Mafia then became one of the nation's biggest growth industries, extending its reach into legitimate businesses like concrete and garbage carting and illegal pursuits like gambling and loan-sharking. The mob always operated in the black.

Things began to change in the mid-1980s, when the Mafia was caught in a crossfire of RICO, rats and recorded conversations. The Racketeer Influenced and Corrupt Organizations act handed mob prosecutors an unprecedented tool, making even minor crimes eligible for stiff prison terms.

The 20-year sentences gave authorities new leverage, and mobsters who once served four-year terms without flinching were soon helping prosecutors.

"A good RICO is virtually impossible to defend," insists Notre Dame law professor G. Robert Blakey, who drafted the law while serving as counsel to Sen. John McClellan in 1970. The results proved him right.

The first major RICO indictment came in 1985, with the heads of three New York families and five other top level Mafiosi eventually convicted. It took nearly two decades, but the heads of all five New York families were jailed simultaneously in 2003.

Authorities around the country were soon using Blakey's statute and informants against Italian organized crime in their cities.

In Philadelphia, where the mob was so widespread that Bruce Springsteen immortalized the 1981 killing of Philip "Chicken Man" Testa in his song "Atlantic City," one mob expert estimates the Mafia presence is down to about a dozen hardcore "made" men. Their number was once about 80.

The New England mob claims barely two dozen remaining made members about half the number involved 25 years ago. The Boston underboss awaits trial.

In Chicago, home of Al Capone, the head of the local FBI office believes fewer than 30 made men remain. That figure stood at more than 100 in 1990. The city's biggest mob trial in decades ended recently with the convictions of three old-timers for murders from the 1970s and '80s.

In Los Angeles, there's still a Mafia problem "La Eme," the Mexican Mafia. An aging leadership in the Italian mob, along with successful prosecutions, left most of the local "gangsters" hanging out on movie sets.

The Florida family dominated by Santos Trafficante, the powerful boss linked to assassination plots targeting President John F. Kennedy and Cuban leader Fidel Castro, is gone. The beachfront Mafia of the 21st century is mostly transplanted New Yorkers, and money generated by the local rackets isn't kicked up the chain of command as in the past.

"You have guys running around doing their own thing," says Joe Cicini, supervisor of the FBI's South Florida mob investigations. "They don't have the work ethic or the discipline that the older generation had."

The decline of "Family values" is nothing new. Back in January 1990, a government bug caught no less an expert than Gambino boss John Gotti wondering if the next generation of mobsters was equal to their forebears. "Where are we gonna find them, these kind of guys?" Gotti asked. "I'm not being a pessimist. It's getting tougher, not easier!"

During the same conversation, Gotti questioned the resumes of a half-dozen candidates for made man: "I want guys that done more than killing."

Even harder, it would turn out, was finding guys who could keep their mouths shut.

"Mob informant" was once an oxymoron, but today the number of rats is enormous and growing with each indictment. And the mob's storied ability to exact retribution on informants is virtually nonexistent.

"There is no more secret society," says Matthew Heron, the FBI's Organized Crime Section Chief in Washington.

"In the past, you'd start out with the lowest level and try to work your way up," Heron continues. Now "it's like playing leapfrog. You go right over everybody else to the promised land."

Basciano, 48, the one-time owner of the "Hello Gorgeous" beauty parlor, faces an upcoming trial for plotting to kill a federal prosecutor. The case was brought after his old boss, "Big Joey" Massino, wore a wire into a jailhouse meeting where the alleged hit was discussed.

By the time Massino went public with his plea deal in June 2005, another 50 Bonanno associates had been convicted in three years. The number of colleagues who testified against them, going right up to Massino, was in double digits. Basciano now faces the rest of his life in prison.

The Bonanno family is now led by the inexperienced "Sal The Ironworker" Montagna, just 35 years old, according to the FBI. Montagna shares one trait with his family's founder: He, too, is a Sicilian immigrant.

The mob of the 21st century still makes money the old-fashioned way: gambling, loan-sharking, shakedowns. Three Genovese family associates were busted this month for extorting or robbing businessmen in New York and New Jersey, making off with $1 million.

There are other, more modern scams: The Gambino family collected $230 million in fraudulent credit card fees linked to pornographic Web sites. Another crooked plan grossed more than $420 million when calls made to "free" phone services triggered unauthorized monthly fees on victims' phone bills.

After getting busted, mobsters are quick to offer advice to the FBI about allocating the agency's investigative resources.

"I can't tell you how many times we've gone to arrest people, and the first thing a wiseguy says is, `You should be going after the terrorists," said Seamus McElearney, head of the FBI's Colombo crime family squad in New York. "They say it all the time: `You should be doing that.'

"And leaving them alone."

Thanks to Larry McShane

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Tuesday, October 30, 2007

Earlier Attempts to Report Lin DeVecchio's Alleged Crimes

Posting an email that we received from former FAA agent, Rodney Stich. Mr. Stich was an air safety inspector-investigator with the FAA and is now an author and activist against corruption in government.

To Chicago Syndicate:

In 2002, Gregory Scarpa Jr signed a book contract with former federal agent Rodney Stich, after which Scarpa provided Stich with information about the murders perpetrated by FBI supervisory agent DeVecchio. Also providing Stich with information about DeVecchio was former FBI agent and highly decorated Vietnam War veteran Richard Taus who worked under DeVecchio and who discovered corruption associated with the White House, the arming and funding of Iraq during the 1980s, and the involvement of a CIA proprietary in the New York Area.

About this time, the House judiciary committee was conducting hearings into the murders involving FBI agents in the Boston office involving Whitey Bulger. Having this information, I contacted members of the congressional committee investigating the FBI conduct, informing them that I was a former federal agent and that I was in contact with a former Mafia member and a former FBI agent and had insider information about murders involving an FBI agent in the New York office, and if they would contact me I would put them in contact with these sources.

Despite the gravity of these matters, not a single recipient of those letters contacted me. Several years later, a Brooklyn district attorney filed murder charges against DeVecchio that could have been filed years earlier if members of Congress had not covered up.

In an attempt to circumvent the cover-ups on this matter, I published a non-profit book called FBI, CIA, the Mob, and Treachery.

Among the internet sites that address this matter are the following examples:

* www.defraudingamerica.com/FBI_murderous_culture.html
* www.defraudingamerica.com/fallen_heroes.html
* www.defraudingamerica.com/fbi_justice_department_corruption.html

Of possible interest to you were my letters in 2002 to members of the House Judiciary Committee trying to put them in contact with my two sources, the former FBI agent who worked under DeVecchio, and Gregory Scarpa, Jr., who send me letters describing the murders in which he and his father were involved with DeVecchio. The letters are located at the following web site: www.defraudingamerica.com/letter_list_congress.html.

At that site, look at the letters in 2002 and 2003, for the people to whom I sent letters offering to provide the names of my two contacts.

Although this indifference, or aiding in cover-ups of criminal activities, is serious, it is only one instance where over a period of many years, starting while I was a key federal aviation safety agent, I sought to report hardcore corruption that was causing or enabling a steady series of air tragedies and other tragedies to occur. I learned about these matters either from my official duties, or from the dozens of insiders who came to me over a period of years after reading my books or hearing me on radio and TV.

We have a culture where no one does a damn thing unless it personally affects them.


Rodney Stich

Giuliani Jokes About Mob Hit Talk

Republican presidential candidate Rudy Giuliani joked Thursday about reports that New York's five Mafia families discussed, but decided against, killing him in 1986 when he was a mob-busting federal prosecutor.

"That was one vote I won, I guess," Giuliani said Thursday on Mike Gallagher's syndicated radio show.

Giuliani said there have been other contracts for his life, including an $800,000 hit when he was first U.S. attorney. "After 5 1/2 years of being U.S. attorney, they put out another contract to kill me, another group, for only $400,000," Giuliani said. "So I thought, my goodness, my value. If I were a company, my market cap would have been cut in half."

Giuliani told reporters later in Washington he didn't worry much about contracts on his life. "I don't know, go ask the mob, how do I know if the mob really tried to whack me?" Giuliani said, laughing. He added that he knew of two or three plots to kill him but didn't remember the one that emerged this week.

"So there was more than one, but the FBI did a really good job of getting them resolved," he said. "I always felt it was my obligation to kind of put that out of my mind and just do my job."

Before Giuliani became New York mayor, he had a track record of high-profile mob prosecutions. In 1986, Giuliani indicted the heads of the five families. The mobsters purportedly discussed the hit that year.

The details about the plot which never took shape were given to ex-FBI agent Roy Lindley DeVecchio by the late Gregory Scarpa Sr., a capo-turned-informant, according to the testimony of FBI agent William Bolinder during a murder trial in New York.

In testimony Wednesday, Bolinder said that DeVecchio's 1987 debriefing report stated Scarpa told him the late Gambino crime boss John Gotti was for ordering the hit, and had the support of the leader of the Colombo crime family.

However, Bolinder said, the heads of the Bonanno, Lucchese and Genovese groups were against the idea, and it never materialized.

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Sweet Deals, Chicago Style

I wish I had somebody like Bridgeport developers Thomas DiPiazza and Richard Ferro to advise me on real estate matters. Then again, maybe I need the person who advises them.

DiPiazza and Ferro are the guys who paid $50,000 for a heavily polluted, essentially vacant parcel of land along the Chicago River in 1998 -- at almost exactly the same time that somebody at City Hall came to the conclusion the site would make a swell location for a city park.

Immediately thereafter, the city began taking steps to acquire the property, never quite getting the job done until six years later, when it paid the two men $1.2 million to take this same heavily polluted, vacant parcel off their hands.

I don't know about you, but I never do as well with my real estate investments.
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My wife and I always joke that we buy high and sell low, which isn't entirely true, but our timing does tend to be a little off. We'll see an opportunity, but we don't take the chance until the price is out of reach, or we'll sell a house just before the market shoots sky high.

That's why I'm in awe of guys like DiPiazza and Ferro, who could do their own infomercials if they weren't camera shy, as Bridgeport businessmen tend to be.
Insider deal?

DiPiazza is definitely an interesting character. He used to be a city sewer department worker before he got in a jam in the late 1980s for being at the racetrack on city time. He seems to have quite an interest in racehorses. Until just a few years ago, he owned a horse named Medlin Road in partnership with Nick "The Stick" LoCoco, the mob bookie who ran the city's Hired Truck program in the Department of Transportation before he was charged in the federal probe.

As most of you recall, LoCoco never stood trial because he tragically died in December 2004 when, as fate would have it, he fell off a horse in what authorities said was a riding accident.

DiPiazza and Ferro may have known a little bit about the Hired Truck program themselves, as some of the trucking companies in the program rented space from them to park their trucks. But mostly, they have proved their expertise in real estate, becoming prominent players in Bridgeport during Mayor Daley's nearly two decades in office.

Their influence was perhaps not widely known, however, until another developer, Thomas Snitzer, filed a lawsuit earlier this year alleging that Tim Degnan, Daley's former patronage chief and longtime friend, tried to force Snitzer to take on his pal DiPiazza as a partner -- as the price of doing business in Bridgeport. Instead, Snitzer gave DiPiazza a $1.3 million consulting contract.

It was in that same suit that Snitzer alleged DiPiazza was acting on inside information in 1998 when he and Ferro bought the land at the mouth of Bubbly Creek, which the city later purchased from them. Coincidence?

City officials scoff at the suggestion of insider dealings, noting that the decision to locate a park at the site -- actually an expansion of the new Canal Origins Park on the other side of Bubbly Creek -- grew out of a public planning process for the Chicago River undertaken in late 1997 and published in April 1998.

I don't see the one ruling out the other, and if I had subpoena power, I'd want to call in some people to answer questions.

One of the things to focus on is how the city decided to pay so much for a property for which it originally received an appraisal of $220,000 in 1998.

Even four years later, city planning officials thought they would obtain the land at the relative bargain of $520,000 because of the pollution problems.

As Planning's Kathleen Dickhut wrote in a Dec. 12, 2002, letter to the state Department of Natural Resources (which committed $385,900 to the project):

"Due to the condition of the property, we are optimistic that the owners will be willing to sell the property without the need for condemnation. A private entity purchasing the property will not have the advantage of working with Peoples Gas on the cleanup and therefore not likely be in a position to offer the owners fair market value for their properties."

Instead, the city arranged to force Peoples Gas to clean up the site, then paid DiPiazza and Ferro a higher value of $1.2 million as if the land was already suitable for residential development.

If they do get DiPiazza under oath, I wonder if the feds could ask him a question for me: What does he think about real estate values in the U.P.? Or would that be outside his area of expertise?

Thanks to Mark Brown

The Chumbolone Casino

So as I took last week off -- with some readers fearing I'd been chained in a City Hall dungeon for writing the words "Mayor Chucky" -- an amazing thing happened. (I took the week off after Kass did, which is why you are going to get a slew of articles today.)

Mayor Richard Daley agreed he'd like City Hall to own a gigantic casino, with all the contracts to be overseen by a special city gaming board hand-picked by the mayor himself. Please don't call it the City Hall Casino or the Daley Casino. That's rude. Call it the Chumbolone Casino.

A casino with all the contracts and jobs and deals hidden from public view should be named for all of us chumbolones who believe taxes will decrease if the casino is built.

So I'm calling on you, the readers of this column, to help the mayor by coming up with recommendations for the posts of Chumbolone Casino boss and on the Chumbolone Casino board.

The mayor has been under great stress, and nobody wants him to get angry and transform into the Mayor Chucky persona, which would terrify the Olympic selection committee. Let's help the mayor instead.

Send your Chumbolone Casino recommendations to me, and we'll present them to the mayor in a special ceremony to be held either at the Polish sausage stand on 31st Street, or at Tavern on Rush, whichever he prefers.

"Who'll handle the patronage at the mayor's casino?" asked a loyal reader who calls himself Leprechaun. "There will be jobs there, right?"

Robert Sorich. Who else?

Sorich, the mayor's former patronage boss, was convicted in federal court as part of a scheme that rigged city job applications to illegally build massive patronage armies for the mayor, in direct violation of a federal court order. Sorich is appealing his conviction on mail fraud, not racketeering, as I'd reported recently.

But who'll run the gambling? I've got just the guy behind the guy:

Rayjo.

Rayjo -- known formally as Raymond John Tominello -- comes from the mayor's neighborhood. Nobody calls him Raymond, or Ray. They call him Rayjo.

I have a suspicion that the mayor may know Rayjo, but I've been waiting for those tough TV reporters who like spanking the Urkel out of the hapless Todd Stroger to ask Daley if he knows Rayjo, or not.

Rayjo is eminently qualified. Consider his background.

Rayjo tutored under the famous Don "The Wizard of Odds" Angelini and Dominic Cortina, the Chicago Outfit's top bookies back in the 1980s, and he pleaded guilty to being one of their top lieutenants and went to prison for his crimes.

Before and after his release, Rayjo was in the real estate business with the mayor's second favorite developer, Thomas DiPiazza, on several deals in Bridgeport, and the sale of land to the Chicago Board of Education for almost a million dollars.

See? Rayjo and Tommy D. care about the school children.

And a few months ago, Rayjo was also mentioned in federal testimony in the Family Secrets trial. Chicago Outfit hit man-turned-government witness Nick Calabrese testified about a meeting to establish the pecking order in a Bridgeport gambling operation.

Calabrese said he met with several tough guys, including Outfit loan shark and former Chicago Police Officer Anthony "Twan" Doyle. Twan was convicted in Family Secrets for passing key information on an Outfit murder to Calabrese's brother, Frank Calabrese Sr., while the FBI was recording their conversations.

(Ironically, Twan invented the term "chumbolone," which he insisted means stupid idiot.)

At that meeting were Frank Sr., the late Outfit enforcer Ronnie Jarrett and Outfit figure Mario Dispensia. Oh, and one other guy.

Rayjo.

How's that for qualifications?

Like his buddy Tommy D., Rayjo also worked for the city, so he has a public service background too.

So Rayjo it is, for chief operating officer of the Chumbolone Casino.

Yet there are other important casino jobs, from scooping up the quarters in the slot machines, to running the VIP bottle service for high-rollers, even building the casino itself, and securing City Hall occupancy permits. And don't forget the Chumbolone Casino board. I'm sure you'll find responsible people. But don't ask Jim Wagner, president of the Chicago Crime Commission. He argues that, given City Hall's habit of playing footsie with the Outfit for the last century, a casino won't save taxpayers money.

"You'll end up having to pay a tax for all the corruption that will be brought into play, with the contracts, with the sweetheart deals, with the ghost employees and, history has shown, with the corruption of government and law enforcement," Wagner said.

Wagner spent decades with the FBI, hunting the Chicago Outfit. So, naturally, City Hall sniffs at his concerns.

So who will we put on the board? And who'll scoop up the quarters?

Please help the mayor help you.

Your baby needs a new pair of shoes.

Thanks to John Kass

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