The Chicago Syndicate
The Mission Impossible Backpack

Saturday, July 18, 2009

Did Alderman Edward Burke Add a Mob Associate to Payroll as a Favor for Reputed Mobster?

A look back in time. The Chicago Tribune on February 10, 1985 has a page one story by Trib reporters Robert Davis and William B. Crawford Jr.(Sorry no link on this one). The story is titled JAILED 1ST WARD 'FIXER' WORKED IN SHADOWS:

Victor Albanese is not a name well known around Chicago's City Hall.But in classic Chicago style, it is not who knows you but who you know that makes the difference.And last week, the name of Victor Albanese was being talked about in City Hall and, more important, in the Dirksen Federal Building just three blocks south. In Chicago parlance, Victor Albanese was a fixer, a bagman, an insider, a 1st Warder and, as of last week, an imprisoned felon. Albanese is a vital key in an investigation of alleged city government corruption...


You might say how does someone like this get on Chicago's payroll? The Trib explains:

Last MayRoemer: Man Against the Mob, reportedly at the repeated urgings of D'Arco, Ald. Edward Burke[14th], whose budget wranglings had left him several extra job openings for investigators for his city council Finance Committee,hired Albanese for $900 a month. Sources close to the committee said that Albanese's duties were few and that he was rarely seen around City Hall.


It didn't bother Alderman Burke that in the mid-1970's Albanese was fired from Chicago's Streets and Sanitation Department because of a fraud scheme. Alderman Burke was doing a favor for John D'Arco , Democratic Committeeman of the old 1st Ward. FBI agent William Roemer identified John D'Arco Sr. as a "made member" of the Chicago Mob in his book on Tony Accardo. We will clarify that, a former FBI agent who's a loyal reader of Newsalert informs us that John D'Arco Sr. was a high ranking made member of the Chicago Mob who had capo status to run a political crew. Alderman Burke, doing favors for mobsters.

Thanks to Steve Bartin

Wednesday, July 15, 2009

Will Alexi Giannoulias's Potential U.S. Senate Run Be Influenced by His Family's Bank Loans to Reputed Mobsters?

Broadway Bank is trying to recoup $12.9 million from two Chicago crime figures, rekindling a controversy as the bank's former chief loan officer, state Treasurer Alexi Giannoulias, gears up to run for the U.S. Senate.

In recently filed foreclosure suits, the Giannoulias family-owned North Side bank alleges loan defaults by four companies whose owners include two convicted Chicago bookmakers — one also convicted of promoting a nationwide prostitution ring. The loans are on a hodgepodge of properties, including a South Beach hotel and a South Side shopping center that has lost its grocery anchor. The defendants include 1201 South Western LLC, a Berwyn-based company whose activities include making short-term real estate loans at interest rates of 1% a week, property records show.

Questions about Mr. Giannoulias' role in the loans surfaced in 2006, when he overcame concerns about his youth and inexperience to be elected treasurer. He defended the loans as sound business decisions, a claim undermined by the foreclosures.

Now, at age 33, he could face similar questions, particularly if there are more disclosures about the relationship between the convicted felons and Broadway.

"In a closely contested race, something like this can marginalize enough votes to put you out of the race," says political consultant Thom Serafin, president of Chicago-based communications firm Serafin & Associates Inc., who also notes criticism of Mr. Giannoulias' oversight of a state-run college savings fund. "All of that lends itself to a credibility gap, and that's where an opponent gets you."

Mr. Giannoulias' chances of winning the 2010 Democratic Senate primary got a boost last week when Illinois Attorney General Lisa Madigan announced she would run for re-election rather than campaign for senator or governor. A spokesman for Mr. Giannoulias declines to comment.

Mr. Giannoulias hasn't announced his Senate candidacy formally, but he has raised $1.1 million, giving him an early edge in a primary fight to succeed Roland Burris. Other potential Democratic candidates include Christopher Kennedy, a Chicago real estate executive and son of the late Sen. Robert Kennedy, and Cheryle Jackson, president and CEO of the non-profit Chicago Urban League. On the Republican side, possible candidates include U.S. Rep. Mark Kirk and businessman Andy McKenna Jr., chairman of the state GOP.

The foreclosure cases are among a nationwide surge in troubled assets that hurt many banks including Broadway, an aggressive lender when commercial real estate was booming. "The borrowers were worthy at the time these loans were issued," Broadway Bank says in a statement. "However, when they failed to make their loan payments, the bank took legal action . . ., just as it would do in any situation involving a customer who did not repay a loan."

Broadway alleges $2.9 million in loans are in default on the Lorraine Hotel in Miami Beach. The property is owned by a venture that includes Michael Giorango, 56, who was convicted in 1991 of federal bookmaking charges in Chicago. He also was convicted in 2004 in Miami of promoting a nationwide prostitution operation.

Broadway also alleges that a nearly $6-million loan is in default on a shuttered restaurant along the Intracoastal Waterway in Hollywood, Fla. The potential development site is owned by a venture that includes Mr. Giorango and Demitri Stavropoulos, 41, who was convicted in 2004 in Chicago of running a betting operation that grossed more than $3 million in about three years.

The venture fought the foreclosure case, accusing the bank of improperly obstructing a sale of the property. Including fees and unpaid interest, the total amount due is almost $10.4 million, according to the complaint filed March 30 in Miami-Dade County Circuit Court.

An attorney for Mr. Stavropoulos declines to comment.

Mr. Giorango, reached at a Los Angeles apartment building that he owns in a venture with Mr. Stavropoulous, also declines to comment. Broadway has a $3.4-million loan on the 30-unit property that comes due next year.

The venture that owns the apartment building, 1201 South Western, is a defendant in four foreclosure cases filed by Broadway last month in Cook County Circuit Court seeking to collect nearly $2.5 million. In addition to its real estate holdings, the venture has been an active lender, making 43 short-term loans totaling $6.9 million, an average of $160,500 per loan, property records show. Broadway financed the company on Dec. 21, 2004, a month after 1201 South Western made the first in a series of loans that continued through July 2006, the records indicate.

Interest rates could be obtained on just eight of the loans, totaling $800,000, which are the subject of collection cases. On those loans, the company charged interest of about 1% a week, according to the promissory notes.

Thanks to Thomas A. Corfman

The Untold Stories of Alderman Don Parrillo

Former First Ward Alderman Don Parrillo, 78, is the most admittedly corrupt Chicago politician you likely never heard of. But that's likely to change.

Parrillo, who represented the city's notorious 1st Ward from 1964 to 1968, is about to self-publish a controversial book concerning organized crime and political corruption in the city Al Capone made famous.

His father, William "Billy" Parrillo, was the attorney of choice for the Chicago mob's elite, he says - Al Capone, Frank Nitti and Sam Giancana, among them.

Consequently, the alderman has a lot stories. "I started talking into my tape recorder," Parrillo explains. "I've got 16 chapters."

"I name names unless the person is still alive or a member of their family is still alive," he says, adding with a laugh, "I want to stay that way."

Parrillo also admits that getting into Chicago politics wasn't exactly his idea.

He was asked to run for alderman as a personal favor by Chicago Outfit boss Sam Giancana, who used to drive him and his brother to school as kids, Parrillo says. "This was before Giancana was anybody...I used to call him Mr. Sam."

Other Parrillo tales range from the simply curious - it was American film sex symbol of the 1930s, Jean Harlow, who infected Al Capone with the syphilis that eventually killed him - to the simply conspiratorial - the Kennedy brothers' (JFK & RFK) alleged involvement in the death of another American film sex icon, Marilyn Monroe.

For an unauthorized account of both Parrillo and his book, see reporter Anthony DeBartolo's 4,000-word Hyde Park Media web exclusive: "The Untold Stories of Alderman Don Parrillo."

Anthony DeBartolo is a Chicago-based reporter who has frequently contributed to the Chicago Tribune. His feature work has also appeared in daily newspapers across the U.S. and in Canada, including the Baltimore Sun, Chicago Sun-Times, Orlando Sun-Sentinel, Sacramento Bee, St. Louis Post-Dispatch and Toronto Star.

DeBartolo is also the author of the special interest health book, "Lupus Underground: A Patient's Case for a Long-Ignored, Drug-Free, Non-Patentable, Counter-Intuitive Therapy That Actually Works"

Tuesday, July 14, 2009

LexisNexis Fears Data Was Breached by Mafia

Information broker LexisNexis has warned more than 13,000 consumers, saying that a Florida man who is facing charges in an alleged mafia racketeering conspiracy may have accessed some of the same sensitive consumer databases that were once used to track terrorists.

Lee Klein, 39, of Boynton Beach, Florida, was charged by the U.S. Department of Justice in May following an undercover sting operation that netted 11 suspects from an alleged South Florida crew of the Bonanno crime family.

On Friday, the office of the New Hampshire Attorney General posted a letter that LexisNexis sent out to consumers last month, warning that Klein may have used his access to LexisNexis' Seisint databases "in order to perpetrate certain crimes."

LexisNexis has had problems with credit card fraudsters using its database in the past, but Klein's alleged crimes are different.

In court filings, the DOJ says Klein would provide Bonanno family members with names, addresses and account numbers as part of a fake check-cashing operation. But he's also accused of using computer databases to get information on potential extortion or assault targets as well as "individuals suspected by the Enterprise members of being involved with law enforcement."

In a statement, LexisNexis said Monday that "the former Seisint customer involved in this matter should have provided notice to potentially affected individuals. However, because the customer is no longer in business we provided the notice." The company said it sent out 13,329 notification letters.

Seisint is best known as the creator of the ill-fated MATRIX (Multi-State Anti-Terrorism Information Exchange) terrorist data-mining project, which was shut down in 2005 following privacy concerns. LexisNexis, a division of Reed Elsevier, acquired Seisint in 2004 for US$775 million. It sells two Seisint products: Accurint, which provides information on individuals and their assets, and Securint, a background screening tool.

LexisNexis has had problems preventing criminals from using its databases for identity theft. Last May, the company warned that ID thieves had accessed around 32,000 records using its services. In March 2008, LexisNexis settled charges brought by the U.S. Federal Trade Commission, which said the company wasn't doing enough to prevent its data from being abused.

In the letter posted to the New Hampshire Attorney General's Web site, Lexis Nexis also warned that another man used its databases in an unrelated incident. On May 8, Yomi Jagunna, 44, pleaded guilty to fraud charges, saying he set up a fake debt collection company called the Elam Collection Agency. Using his account, Jagunna obtained and then sold Social Security numbers, charging $30 for each one.

Jagunna, who faces a sentence of up to 15 years on a conspiracy charge, was allegedly part of an eight-man identity theft ring.

Thanks to Robert McMillan

Monday, July 13, 2009

Sandra Harmon's "Mafia Son: The Scarpa Mob Family, the FBI, and a Story of Betrayal"

Book ‘Em is an exciting new feature on Crimesider. Every week we interview a top true-crime author to get the story behind their story.

For our first week, we spoke with journalist and bestselling author Sandra Harmon, whose new book, Mafia Son: The Scarpa Mob Family, the FBI and a Story of Betrayal, tells the story of Greg Scarpa, Jr., a hardened criminal and former Mob “wiseguy,” who, according to Harmon, became a jailhouse spy who gave the FBI information that might have averted the tragedy of 9/11, if only the Feds had listened.

In her book, Harmon details how she gained inside access to both Mob and law enforcement figures and became a trusted confidante to an unrepentant mob killer turned FBI informant.

Harmon told Crimesider about the dangers of reporting on the Mob, the FBI's missed opportunities to prevent 9/11, and the intriguing sex life of one of the mob's most dangerous men.

What drew you to this story?

Harmon: Although I had never before written about crime - my biggest bestseller was “Elvis and Me,” written with Priscilla Presley - I became intrigued by the twisted and sometimes tragic tale of the Scarpa family.

Gregory Scarpa, Sr. was a mafia kingpin, so addicted to violence and murder that he was nicknamed The Grim Reaper. But Scarpa had hubris; he played both sides of the fence. For the thirty years he was leading a crew of fifty mobsters in a life of crime, he was also a top echelon informant for the FBI. For decades, his intimate relationship with his “handler,” the much publicized former FBI agent Lin DeVecchio, protected Scarpa and granted him a virtual license to kill, which he did, quite often, and always with obvious relish.

I learned about the extraordinary love affair between Greg Sr. and a woman named Linda Schiro. Although married to others, they raised a family together and remained “intimate” – demonstrating such deep and obvious love for each other and devotion to their family – that I wondered how they could have led such a heinous, amoral existence.

Then, I learned of Linda’s fondness for “threesome’s,” and Greg Sr.’s total acceptance of another man sharing their bed for fifteen years – Larry Mazza, a man who rose in the mafia to become Greg’s right hand man - at the same time sleeping with his boss’s mistress – often with all three in the same bed. Why would this psychopathic killer allow another man in his bed? Did he love Linda so much that he would do anything to make her happy? Or did he do it for himself? I admit I was intrigued. But intrigue is not enough for me to take up the long and arduous task of writing a book. What first pushed me forward was the need to uncover what I believed was the corrupt and self serving relationship between Greg Sr. and Lin DeVecchio. Ultimately, I became so involved in the story that I sent an affidavit to the Brooklyn District Attorney, which, in part, resulted in Lin DeVecchio being indicted on four counts of murder. In fact, I became so embroiled in the story that I was actually subpoenaed by both the prosecution and the defense to tell all I knew, and was forced to hire a first amendment attorney to protect my journalistic rights. It was a great eye-opener for me about all aspects of the “crime community,” the bad guys and the supposed good guys as well.

What’s the most compelling or surprising aspect of this story that you can reveal?

Harmon: The most compelling and surprising aspect of this story is that of Gregory Scarpa Jr., who was a promising young athlete until, to please his Machiavellian father, he entered the family business and became a mobster. In the late 80’s, he was betrayed by Greg Sr., who sacrificed his son to save himself from prison.

After a decade in federal prison, and awaiting a new trial, Greg Jr. was moved to the Metropolitan Correctional Center in New York City and placed in a cell next to Ramzi Yousef, architect of the 1993 World Trade Bombing. Greg made a deal with the government to get information from Yousef in exchange for leniency. A year later he furnished the feds with detailed intelligence on what would eventually result in the September 11th attacks. But incredibly, Gregory’s desperate warnings were both ignored and buried; he was sentenced to 40 years to life at the ADMAX Prison in Florence, Colorado. There, he would supply the FBI with intelligence on Oklahoma City bomber and fellow prisoner Terry Nichols. Again his contribution was ignored, and Gregory remains at ADMAX, where he believes he will one day be murdered.

Is there a hero?

Harmon: If there is a “hero” in MAFIA SON, it would have to be Gregory Jr., who is by no means “heroic.” He was a mafia capo who has admitted to murdering 26 people. However, he did risk his life to gather incredibly accurate intelligence which might well have averted 9/11 and the death of over 3,000 people had the federal prosecutors, including Patrick Fitzgerald, and Valerie Caproni, not put their careers first and justice second, which they continue to do to this day.

Do you ever worry that your reporting puts you in any danger?

Harmon: Before the indictment against DeVecchio, I never personally felt in danger, even though I am a woman alone who was investigating the highest level of corruption in many areas of government. But after I submitted that affidavit to the Brooklyn District Attorney’s office in which I attested to a murder which Linda Schiro had discussed with me -- a crime allegedly involving DeVecchio, and the details of the affidavit were leaked to the press -- all hell broke loose, with stories in major newspapers naming me specifically as the instigator of the DeVecchio investigation. This led to months of my being threatened by Mafia types, intimidated by the FBI, ridiculed in local newspapers for lacking the journalistic credentials of a “real crime writer,” denigrated in cyberspace (with the greatest venom generated on a website known as the “Friends of Lin DeVecchio,” and denounced in a book by a former undercover FBI agent. I was also warned that in all likelihood my phone line had been tapped, and that certain terrorist factions – through contacts in federal custody – had gained access to my address and phone number; as a result, I was encouraged to exercise extreme caution in all correspondence. I have also been threatened with nine lawsuits from different characters I write about in the book.

Do you ever have nightmares because of this case?

Harmon: I don't have nightmares, but sometimes I have trouble falling asleep because I worry about which character from MAFIA SON, who is pissed at me because they don't like what I wrote, will next show up in my life and attempt to intimidate me.

Thanks to Barry Leibowitz

The Prisoner Wine Company Corkscrew with Leather Pouch

Flash Mafia Book Sales!