New Kings of Organized Crime Said to Support Al-Qaeda

Although they are organized, the new mob in town doesn't look like the old one.

The new faces of organized crime in Chicago, according to law enforcement officials, are not necessarily from the traditional Italian mob. "Organized crime is not limited to one sort of ethnic group, it's an equal opportunity corrupter," said Jack Blakey, CCSA chief of special prosecutions.

Chicago's new kings of crime are more likely to hail from Eastern Europe, South America, Mexico or the Middle East- unlike their predecessors in the traditional Italian mob.

Their end game is the same: profits. They are making box loads of money- including cash seized in a recent Cook County raid.

Authorities say there are two primary schemes. The first is retail theft, but not large expensive items. The new mobs steal necessities such as bottled water- enough to fill a warehouse that was recently busted.

"Baby formula is always a hot product, razors, anything that everybody needs that is expensive...we have cases where they are bringing in tons and tons, literally tons of property and then shipping it in containers," said David Williams, Cook County Organized Crime Task Force.

Some stolen goods are sold in the US, and some are sent overseas- all undercutting legitimate Chicago merchants and driving up prices. The Assistant Cook County States Attorney, who leads a regional organized crime task force, says the loss of state sales tax hurts everyone. "In Illinois last year, approximately $77 million could have gone to firemen, policemen, hospitals, teacher," said David Williams, Cook County Organized Crime Task Force.

The second racket according to investigators is food stamp fraud. It involves loose networks of convenience stores that allow recipients of Illinois link cards to use them for cash. "It's not hard to cash in a link card, it's not hard... That's been going on forever but that's common in every neighborhood," said Eric Burns, Englewood resident.

In November, three suburban men were arrested and their South Side stores were shut down for allegedly taking kickbacks from cashing out link cards. "The store owner will swipe the card for a hundred dollars, as a ruse that they're purchasing groceries. They'll give the individual recipient $50 back and then keep $50 for their own profit& The government is the one that is funding the program, so these are our tax dollars that are flowing out of these stores for this fraud," said Williams.

In Al Capone's day, the flow was illegal liquor. From Tony Accardo and Sam Giancana through Joey the Clown Lombardo and current boss John DiFronzo, the traditional mob's rackets were labor union corruption, gambling and other lucrative public vices.

As a rule, victims were only those involved with the mob. This is not the case for the new kings of crime. "The ability of these groups to target some of our most vulnerable communities is something that we can't let stand," said Jack Blakey, CCSA chief of special prosecutions.

Fourty-six million Americans are on food stamps. For these new organized crime groups, that provides an almost endless cash stream.

Other rackets operated by the new kings of crime are vexing authorities: from pilfering ATMs to forgery and ID theft. With federal law enforcement focused on terrorism, Cook County prosecutors have taken the lead with their task force that now includes the Midwest.

There is a connection between terrorism and the new kings of crime. Authorities say some of their profits support Al-Qaeda.

Thanks to Chuck Goudie.

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Bully Bandit Reward Offered

Thomas R. Trautmann, Acting Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation (FBI), is asking for the public’s help in identifying the individual believed responsible for up to four robberies in and around Chicago over a two-week period. Mr. Trautmann also announced a reward of up to $10,000 for information that leads to the identification, arrest, and conviction of the individual responsible for the robberies.

This robber, who has been dubbed the Bully Bandit for his aggressive demeanor in his encounters with both bank employees and customers, first struck on November 28, 2012, at a North Community Bank branch at 1600 West Chicago Avenue in Chicago. On this occasion as well as the three subsequent robberies he is believed to have carried out, the robber approached the teller window and demanded cash in a shouting, threatening manner. During the course of some of the robberies, he has even pushed customers out of his way to get to the teller window or to get out the door after getting cash from the tellers. To date, he has not displayed a weapon, nor have injuries been reported during the heists.

The same individual is also believed to have struck a Chase Bank branch twice in the span of a week. The bank, located at 4440 West North Avenue, was robbed on November 30 and again by the same person just six days later, on December 6. The latest robbery occurred December 11 at the PNC Bank branch located at 6620 West Ogden, in Berwyn.

Each time, the robber has worn a black jacket with a black hoodie underneath. He wore the hood pulled over his head and cinched tight around his face in an effort to conceal his identity. Witnesses reported that he kept the strings that tighten the hood in his mouth.

The Bully Bandit is described as a Hispanic male in his late 20s to early 30s, with black hair, brown eyes, and a mustache, 5’7” to 5’8” tall, with a medium build.

Anyone recognizing this individual or having any information about the robberies is asked to call the Chicago office of the FBI at (312) 421-6700. This case is being investigated by the FBI in coordination with local authorities.

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"Kidnapped in Gaza" and "Murder in the Mountains" on Crime Beat Radio

On December 20th, Journalist David Aikman (www.davidaikman.com) discusses his new novel, Kidnapped in Gaza, and Michael Crisp, discusses his book, Murder in the Mountains on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.

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Reputed Mob Ties and Janitor Layoffs Have Chicago Aldermen Calling for O'Hare Maintenance Contract to be Rebid

Some Chicago aldermen said Tuesday that the city’s janitorial contract at O’Hare International Airport should be rebid, over concerns about the layoffs the contract would mean for union janitors, as well as the company’s ties to mob figures.

WBBM Newsradio Political Editor Craig Dellimore reports about 300 union custodians who work for Scrub, Inc., are being pushed out, after the Emanuel administration awarded a new janitorial contract at O’Hare to United Maintenance, a non-union firm.

“It’s just not right, like 10 days before Christmas, you give somebody a letter saying that they’re going to be laid off. It’s just not right,” said janitor Jermaine Samples.

The current janitors’ union, SEIU Local 1, has said the jobs the company is offering have much lower salaries, and fewer benefits. But the company said Tuesday it has offered jobs to roughly 380 people, including more than 100 current O’Hare custodians who have filled out job applications.

It claimed the health insurance, dental and vision coverage, and pension plans it will provide are superior to those workers’ current benefits. For example it said its health plan has no limit on medical claims, and covers 70 to 90 percent of the costs for out-of-network claims, while current O’Hare janitors have a $400,000 limit on claims, and no coverage for out-of-network claims.

United also said some Scrub, Inc., employees who have been hired will be making $2 to $4.60 more per hour.

The city has said United will work with the current custodians to find them jobs, but there are no guarantees those workers will keep their jobs, and if they did, it would most likely be for much lower pay and fewer benefits.

Ald. Rick Munoz (22nd) was incensed that many veteran custodians at O’Hare are being laid off so close to the holidays. “What’s going on over at O’Hare … socially is irresponsible, because these men and women who have been laboring day in and day out are being let go right before the holiday season, and being replaced by employees who make less,” Munoz said. “Are we in favor of the bottom line that simply saves money and rushes to the bottom, and races and pushes contractors to pay the lowest wage possible? Or are we looking at a bottom line that helps middle-class Chicago be a better Chicago?”

The switch in janitorial companies at O’Hare means no holiday for 7-year janitor Mildred Rueda. “I mean, I’m grateful because I do have my family, but as far as celebrating, there isn’t any,” Rueda said. But United Maintenance said in a news release Tuesday that neither Rueda nor Samples has applied for a job with the company.

Munoz and Ald. Scott Waguespack (32nd) are among a number of aldermen who have said the custodial contract at O’Hare should be rebid. “It’s not only very un-Chicagoan, but it’s very un-American to essentially bring in companies that decide that they’re going to cut wages in order to provide a more so-called efficient and fair contract,” Waguespack.

Aldermen have also raised concerns about the mob ties of some of top executives at the new custodial contractor.

Paul Fosco, the executive vice president of United Maintenance’s parent firm, United Service, served time in federal prison on mob racketeering charges, along with co-defendant and former Chicago mob boss Anthony Accardo. The Chicago Crime Commission has an entire file on Fosco. And United Maintenance owner Richard Simon was once business partners with reputed mob figure William Daddano, Jr.

“What we’ve seen is allegations about mob ties that is really unsettling for the people of Chicago, and for City Council members,” Waguespack said.

Mayor Rahm Emanuel has defended the contract with United Maintenance, saying it was competitively bid.

Thanks to CBS2.

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Chicago Police Commander Leo Schmitz Video with CBS National News

There is a war going on -- not overseas, but right here on the streets of America. A gang war has taken over parts of Chicago. Over the weekend, 14 people were shot. Two were killed.

So far this year, there have been more than 2,364 shootings and 487 homicides.

CBS News National Correspondent Dean Reynolds rode along with Commander Leo Schmitz of Chicago Police Department's 7th district. The area is a gang-related swath of the city's South Side. They started to drive as children were leaving school for the day.

"When you have them coming out of school, and there's any kind of gang conflicts, you've got a mix like fire and gasoline," Schmitz said. The gangs are fighting a war over turf, drugs and money. "It's crazy," he said. "What used to be a fist fight now turns into, 'Let's go to the guns,'" Schmitz said.

Shooting deaths are up 20 percent in the city this year, though in the 7th district Schmitz and his team have managed to cut homicides by 30 percent.

He credits better intelligence from informants, increased patrols and a citywide crime-tracking database. "We use the knowledge," Schmitz said. "So, if there's a shooting right here, we know that the retaliation will be a block down."

The police gave us a bulletproof vest for the trip, and within minutes it because crystal clear why. A block away, a man walking was a target. The suspect was fleeing the scene.

"He done shot at me right here!" the man said.

The commander and his men ran down the suspected shooter, 21-year-old Julian Gayles. Police think the shooting was probably gang-related.

The police also received the weapon. Schmitz described it as a 9mm Beretta. "If you can see the hammer's already (up)," he said. "That means he just shot it."

Chicago has seized more guns this year than New York and Los Angeles combined. The violence is so bad that the heavily armed police now attend gang funerals to prevent revenge killings. Schmitz said he doesn't just want to maintain a level of clam.

"I want to win," Schmitz said. "So, we're going to always try to do better than we did before."

It didn't get much better this weekend. Among the victims was an off-duty cop.

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