The Chicago Syndicate
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Wednesday, July 30, 2014

Was Jimmy Hoffa Killed by Frank "The Irishman" Sheeran

It all started, and ended, on this day nearly four decades ago.

It was a hot July afternoon, nearly 92 degrees, when Teamsters president and labor icon Jimmy Hoffa is said to have opened the rear door of a 1975 maroon Mercury in the parking lot of the Machus Red Fox restaurant, in Bloomfield Hills, Mich., and climbed in.

He was never seen again.

The FBI has expended countless resources in the ensuing decades in the hopes of finally solving this enduring American mystery with no success. But I believe, based on my 2004 investigation, that Frank Sheeran did it.

"Suspects Outside of Michigan: Francis Joseph "Frank" Sheeran, age 43, president local 326, Wilmington, Delaware. Resides in Philadelphia and is known associate of Russel Bufalino, La Cosa Nostra Chief, Eastern Pennsylvania," reads the 1976 HOFFEX memo, the compilation of everything investigators knew about Hoffa's disappearance that was prepared for a high level, secret conference at FBI headquarters six months after he vanished.

Sheeran, known as "The Irishman," told me that he drove with Hoffa to a nearby house where he shot him twice in the back of the head. Our investigation subsequently yielded the corroboration, the suspected blood evidence on the hardwood floor and down the hallway of that house, that supports Frank's story.

No one who has ever boasted about knowing what really happened to Jimmy Hoffa has had their claims tested, scrutinized, and then corroborated by independently discovered evidence... except Frank.

He is also the only one of the FBI's dozen suspects who has ever come forward and talked publicly about the killing, let alone admit involvement.

Every other claim that you have ever heard about, from Hoffa being buried in the end zone of Giants Stadium to being entombed under a strip of highway asphalt somewhere, came from people who were never on the bureau's list of people suspected of actual involvement.

For that reason, Frank stands alone.

Six weeks after Hoffa disappeared, Frank, along with the other suspects, was summoned before the Detroit grand jury investigating the case. He took the Fifth.

When I met him in the spring of 2001, Frank freely talked.

My meeting with Frank was arranged so that I could take his measure, and he mine, for a possible in-depth investigation, interview and news story about his claims. He was accompanied by his former lawyer Charlie Brandt, the author of Frank’s then-proposed biography, which tells the Hoffa story. Charlie had been able to spring Frank from a Mafia-related federal racketeering prison sentence, and for that reason was taken into Frank's confidence.

It would be three years before the book, ""I Heard You Paint Houses": Frank "The Irishman" Sheeran and the Inside Story of the Mafia, the Teamsters, and the Last Ride of Jimmy Hoffa" would be published by Steerforth Press, and before the first of my many news stories about Frank, and our investigation, would air on television.

His story is this: He and others were ordered by the Mafia to kill Hoffa to prevent him from trying to run again for the presidency of the Teamsters union. Hoffa had resigned after serving prison time for jury tampering, attempted bribery and fraud convictions. Frank picked Hoffa up at the restaurant, accompanied by two others, to supposedly drive Hoffa to a mob meeting. When they walked into the empty house together, with Frank a step behind Hoffa, he raised his pistol at point-blank range and fired two fatal shots into his unsuspecting target, turned around and left. He said the body was then dragged down the hall by two awaiting accomplices, and that he was later told Hoffa was cremated at a mob-connected funeral home.

Frank had an imposing, old-school mobster way about him that even his advanced years -- he was 80-- did not betray. His menacing aura was not diminished by a severe case of arthritis that crippled him so badly that he was hunched over when he slowly walked with two canes, struggling to put one foot in front of the other.

I found Frank tough, determined, steely.

As I listened to his matter-of-fact recounting of what he said went down at that house, and giving such detail, I remember thinking what he was saying could actually be true.

Here's why:

There is no doubt that Frank was a close confidant of Hoffa, someone who Hoffa trusted. And Hoffa didn't trust very many.

Frank was both a long-time top Teamsters Union official in Delaware as well as an admitted Bufalino crime family hit-man and top aide to the boss himself.

The FBI admits that Frank was "known to be in Detroit area at the time of JRH disappearance, and considered to be a close friend of JRH," as the HOFFEX memo states.

Hoffa's son, current Teamsters President James P. Hoffa, told me in September 2001 that his father would have gotten into the car with Frank. He said that his father would not have taken that ride with some of the other FBI suspects whom I mentioned.

Frank, in the book, says that he sat in the front passenger seat of the car as a subtle warning to Hoffa, who habitually sat there. He felt a deep friendship and loyalty to Hoffa, yet knew what his own fate would be if he failed to carry out the lethal order from his mob masters. So he sat in the front seat hoping Hoffa would realize something was wrong. He did not.

The FBI did find "a single three-inch brown hair...in the rear seat back rest" of that car that matches Hoffa, and three dogs picked up "a strong indication of JRH scents in the rear right seat."

During my interview, I asked Frank if he remembered how to get to the house. I thought finding where Hoffa was killed, and investigating everything about the house, could be key to the case. Frank rattled off the driving directions from the restaurant and described the house's interior layout.

Killers may not remember an exact address of a murder scene, but they never forget how they got there and what they did when they arrived.

"Sheeran gave us the directions," Charlie wrote in the book. "This was the first time he had ever revealed the directions to me. His deepened voice and hard demeanor was chilling, when, for the first time ever, he stated publicly to someone other than me that he had shot Jimmy Hoffa."

A year after our meeting, Charlie and Frank drove to Detroit to try to find the house, and when they did Frank pointed it out to Charlie. They did not go in.

Three years later, in 2004, I, along with producer Ed Barnes and Charlie, first stepped foot into the foyer where Frank said he shot Hoffa, looked around the first floor and as it turned out, Frank's description fit the interior to a tee.

Ed and I arranged with the homeowners to actually take up the foyer and hallway floorboards and remove the press-on vinyl floor tiles that they had put down over the original hardwood floors when they bought the house in 1989.

We hired a forensic team of retired Michigan state police investigators to try to find any blood evidence. They sprayed the chemical luminol on the floors, which homicide detectives routinely use to discover the presence of blood.

We found it.

The testing revealed a specific pattern of blood evidence, laid out like a map of clues to the nation's most infamous unsolved murder. Little yellow numbered tags were placed throughout the first floor foyer and hallway, to mark each spot where the investigators' testing yielded positive hits.

The pattern certainly told the story of how Hoffa was killed.

The greatest amount of positive hits were found right next to the front door, where Hoffa's bleeding head would have hit the floor.

Seven more tags lined the narrow hallway toward the rear kitchen, marking the drops that perfectly mimic Frank's story of Hoffa’s lifeless body being dragged to the kitchen by the two waiting accomplices, who then stuffed it into a body bag and carried it out the back kitchen door.

We arranged for the Oakland County prosecutor's office to remove the floorboards for DNA testing by the FBI, though Oakland County Prosecutor David Gorcyca cautioned that it would be "a miracle" if Hoffa's DNA was recovered.

I knew those odds. A DNA hit was beyond a long shot.

Experts told me that such tiny samples of genetic material, degraded by the passage of 29 years and exposure to air and the elements under a homeowner's heavily trafficked floor, would likely not provide enough material to result in a DNA match.

The FBI lab report says that chemical tests were conducted on 50 specimens; 28 tested positive for the possible presence of blood, and DNA was only recovered from two samples.

The FBI compared what was recovered to the DNA from a known strand of Hoffa's hair. One sample was found to be "of male origin," but it was not determined from whom. The other result was "largely inconclusive."

Was I disappointed that a DNA match was not possible? Yes. Was I surprised? No. Did I think this disproved Frank's claim? No.

Think about it.

What are the chances of any random house in America testing positive for blood traces from more than two dozen samples, in the exact pattern that corroborates a man's murder confession?

What would luminol reveal under your home's floor?

There are other reasons to believe why Frank's scenario fits.

The house was most likely empty on that fateful summer day. It was built in the 1920's and owned for five decades by a single woman, Martha Sellers, a teacher and department store employee. By the summer of 1975, Sellers was in her 80s, and not even living there full time. Her family told The Detroit News and Free Press that she had bought another home in Plymouth, Mich., where she would move permanently the next year.

In his book, Frank says that a man he called "a real estater" lived in the house. The Sellers family remembered that boarder, who they recalled resided in an upstairs bedroom. He was described as "a shadowy figure...who would disappear. He never said more than a few words and they know nothing about him, not even his name."

It is quite possible that "the real estater," was the link between the house and the Detroit mob, providing an empty house as needed, when Sellers was absent, for whatever purpose...including using it as a Mafia hit house to murder Jimmy Hoffa.

The FBI clearly believed Sheeran had credibility.  Agents visited him in his final years, in an unsuccessful attempt to secure his cooperation.

While we were conducting our investigation in Detroit in 2004, the FBI, I was told, tried to find the house even before we aired our story.

And the views of those closest to Jimmy Hoffa, his son and daughter seem especially relevant when assessing Frank's credibility.

Not only did James P. Hoffa confirm that his father would have driven off with Frank, but his sister, Hoffa's daughter, Barbara Crancer, wrote Frank a poignant letter begging him to come clean about their father's fate.

The one-page heartfelt note, handwritten to Frank on March 5, 1995, is detailed in the book.

"It is my personal belief that there are many people who called themselves loyal friends who know what happened to James R. Hoffa, who did it and why. The fact that not one of them has ever told his family -- even under a vow of secrecy, is painful to me..." Hoffa's daughter wrote.

She then underlined: "I believe you are one of those people."

Crancer confirmed to me that she wrote that letter.

Sadly for the Hoffa family, Frank never directly honored her request. When I sat with him, he said that his No. 1 priority was not to go back to "college," meaning prison. He decided that the best way to avoid that possibility, while also revealing his story, was to cooperate with Charlie for the book and to share his secrets with me for my investigation and reporting.

Frank died on Dec. 14, 2003. He was 83.

While authorities no doubt will continue to respond to more tips, as they should, I believe that we already know what happened to Jimmy Hoffa.

Frank described the most precise and credible scenario yet to be recounted, and the evidence that we found from the floor backs up his confession.

Thanks to Eric Shawn.

Tuesday, July 29, 2014

Leader of Colombian Drug Trafficking Organization Sentenced to 18 Years in Federal Prison #OperationPanamaExpress

U.S. District Judge James D. Whittemore sentenced Vinston Boxton-Moises (49, San Andres Island, Colombia, South America) to 18 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine, knowing and intending that the cocaine would be unlawfully imported into the United States. Boxton was arrested on San Andres Island, Colombia in August 2013. He was subsequently extradited to the United States for prosecution. Boxton pleaded guilty on May 6, 2014.

According to court documents, between 2010 and 2013 Boxton was a knowing and willing participant in an ongoing plan to smuggle cocaine by sea. The cocaine was ultimately destined for unlawful importation into the United States. Boxton’s roles in the conspiracy included recruiting and paying mariners and mechanics, contracting for the use of smuggling and lookout/logistics vessels, and dispatching cocaine-laden go-fast vessels (GFVs).

Boxton is accountable for the GFV TAUPLY, interdicted by the United States in the Caribbean Sea on May 31, 2012, on the high seas and in international waters, approximately 85 nautical miles southeast of Nicaragua. The TAUPLY interdiction resulted in the seizure of approximately 1,000 kilograms of cocaine. Boxton arranged for the recruitment and payment of the mariners who ultimately operated TAUPLY and attempted to smuggle the cocaine. The Government of Colombia consented to the enforcement of United States law by the United States over the TAUPLY, its illicit cargo (cocaine), and crew. The five mariners who smuggled the cocaine on board the TAUPLY were successfully prosecuted in the United States for violations of the Maritime Drug Law Enforcement Act.

This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, comprised of agents and analysts from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South.

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Monday, July 28, 2014

Super PAC Raises $1.3 Million Plus for Reelection of Rahm Emanuel

Chicago Mayor Rahm Emanuel has stockpiled more than $8 million in campaign money for his re-election.

That hasn't stopped a super PAC backed by the Democrat's allies from gathering six-figure checks from some of Chicago's best-known business leaders before February's election. In four weeks, Chicago Forward raised more than $1.3 million from donors, such as hedge-fund billionaire Kenneth Griffin and Groupon Chairman Eric Lefkofsky.

The big-dollar support for Emanuel's agenda is the latest sign that super PAC-scale spending is hitting local contests. Super PACs, allowed by a pair of federal court rulings in 2010, can accept unlimited amounts of money from corporations, unions and individuals to influence elections, but they cannot coordinate their activity with candidates.

"It's the new, shiny object," said Edwin Bender, executive director of the non-partisan National Institute on Money in State Politics. "A lot of money can flow easily through super PACs."

Super PACs focused on individual contests are a big factor in this year's races for Congress. In all, 61 candidate-specific super PACs have spent more than $21 million to influence races, data compiled by the non-partisan Center for Responsive Politics show. They account for more than 25% of all super PAC activity in federal races.

There's no central database of super PACs that operate at the municipal level, but a review of city-level campaign-finance records shows a new wave of unlimited outside money swamping mayoral races coast-to-coast.

In Illinois, Emanuel awaits a big-name rival. This month, one of his strongest potential challengers, Cook County Board President Toni Preckwinkle, announced she would not run for mayor. Chicago Teachers Union President Karen Lewis is weighing a challenge.

The city's business elite already is voting with its wallet.

Griffin, the founder of Citadel, Groupon's Lefkofsky and Michael Sacks, the CEO of Grosvenor Capital Management, each gave $150,000 to Chicago Forward on a single day last month, Illinois campaign-finance records show. Sacks serves as Emanuel's vice chairman on the city's privately financed business-development group.

None of the three contributors returned phone calls.

Rebecca Carroll, a former spokeswoman for Chicago schools and for Emanuel's 2002 congressional campaign, runs Chicago Forward. She did not respond to messages. On its website, the group pledges to support candidates in the 2015 municipal elections "who demonstrate a shared commitment to policies and priorities that will continue to move our city forward."

Chicago Forward touts issues that mirror Emanuel's priorities, including an overhaul of the pension benefits for many city workers.

Emanuel cannot coordinate with the group and cannot take checks larger than $5,300 from an individual for his own campaign. But it's clear that his aides do not object to a super PAC telling positive stories about his first term in office.

"The mayor is focused on helping local neighborhoods, local communities, local schools improve — taking their ideas and working with the city to make them work for every neighborhood in Chicago," said campaign spokesman Peter Giangreco. "To the extent that there are other groups out there that talk about those success stories, then it helps everybody in Chicago."

In addition to talking up successes, the super PAC could train its fire on the mayor's eventual challengers and help elect Emanuel allies to the City Council.

The super PAC's leaders "are guaranteeing that the City Council isn't going to block him," said Dick Simpson, a professor of political science at the University of Illinois-Chicago and a former city alderman.

Thanks to Fredreka Schouten.

More Than 30 Mexican Cops Arrested for Alleged Organized Crime Ties

More than 30 police officers have been arrested in Mexico for alleged organized crime ties and possible involvement in the killing of fellow cops, authorities said Sunday.

Those detained include a former top public safety chief from the town of Tarimbaro, an ex-commander of the same unit and 18 more active duty agents, a public safety source in the troubled state of Michoacan told AFP.

Authorities are investigating whether those taken into custody were involved in the recent murders of three senior officials in Tarimbaro's public safety unit, the source added.

A second operation netted 12 municipal police officers in Charapan, authorities said.

The suspects were transferred to the state capital, Morelia, where they are due to appear before a judge.

Michoacan, on Mexico's Pacific coast, is a key drug trafficking area for United States-bound narcotics.

Some 80,000 people have been killed in drug-related violence in Mexico since 2006.

Thanks to NGTV.

Anti-Gun Talking Point Refuted by Background Check Expansion

Last month, while addressing a group of Colorado sheriffs, Colorado Governor John Hickenlooper spoke on the topic of the state's 2013 measure outlawing almost all private transfers of firearms. According to the Denver Post, Hickenlooper told the sheriffs, "I think we screwed that up completely... we were forming legislation without basic facts."  A new Associated Press report examining Colorado background check data in the first year of the new law proves the accuracy of Hickenlooper's statement, and should (although likely won't) end the repetition of an already discredited anti-gun background check factoid.

The report states that the Colorado Legislative Council, an offshoot of the state legislature that is tasked with analyzing legislation, estimated that 420,000 additional background checks would be conducted in the two years following the new private sale restrictions. This led the Colorado legislature to allocate $3 million to the Colorado Bureau of Investigation to handle the anticipated increase.

However, the AP notes, "officials have performed only about 13,600 reviews considered a result of the new law -- about 7 percent of the estimated first year total." The article goes on to state, "In total, there were about 311,000 background checks done during the first year of the expansion in Colorado, meaning the 13,600 checks between private sellers made up about 4 percent of the state total."

How did the Colorado Legislative Council get their estimate so wildly wrong? They relied on same bogus statistic (that 40 percent of gun transfers occur between private parties) which gun control advocates and the White House have been using to advocate for expanded background checks all over the country.

The 40 percent statistic is from a Police Foundation survey, the results of which were published in a 1997 National Institute of Justice report titled, Guns in America: National Survey on Private Ownership and Use of Firearms. The figure has been debunked repeatedly by the NRA and others, and even earned the President "Three Pinocchios" from the Washington Post's fact-checker for his repeated use of the misleading stat.

Unfortunately, these public admonishments haven't deterred gun control supporters from using this absurdly inflated figure. In November, Sen. Dianne Feinstein repeated the factoid in an opinion piece for the San Jose Mercury News. As recently as early July, the Brady campaign asserted in a press release, "Approximately 40 percent of all guns sales go unchecked." A May press release from Michael Bloomberg's Everytown for Gun Safety reiterated estimates "that 40 percent of gun sales occur without a background check in the U.S." Even President Obama's official website, whitehouse.gov, has a page for his "Now is the Time" gun control campaign that continues to claim, "Right now, federally licensed firearms dealers are required to run background checks on those buying guns, but studies estimate that nearly 40 percent of all gun sales are made by private sellers who are exempt from this requirement."

The data from Colorado's first year of restricted private transfers makes continued use the 40 percent figure untenable. Still, some gun control advocates might seek to blame Colorado's low increase in background checks on scofflaws, and those unaware of changes in the law, circumventing the new restrictions. Even if these factors did have a role to play in the underwhelming check numbers, they could hardly be expected to raise the percentage of undocumented private transfers by a factor of 10. Even if they could, it would merely weaken the case of the efficacy of private transfer restrictions. Evidence of background check avoidance would simply underscore NRA's position that background check laws cannot affect the behavior of those who intentionally or unknowingly violate them.

Colorado's expensive foray into background check expansion should serve as a warning to state and federal legislators as to the limited effect these laws can have, and the importance of collecting the "basic facts" before crafting legislation that inhibits the rights of their constituents.

Yet the tactics of gun control supporters are nothing if not shameless, so don't expect them to relinquish the 40 percent myth any time soon. President Obama has openly embraced the confiscatory gun bans of Australia and Great Britain, and he and other gun control radicals realize they can't achieve that goal without registration. "Universal" background checks are the next step in that direction, so for their proponents, the ends justify their dishonest means.

For everyone else, however, Colorado's example is a resounding reminder that the war the proponents of "universal" background checks are waging is one of ideology, not one of facts, and it is certainly not in the service of "gun safety."

Thanks to NRA.

Thursday, July 24, 2014

Chris Cippolini, author of #LuckyLuciano: Mysterious Tales of a Gangster Legend, appears on Crime Beat Radio Tonight

Chris Cippolini, author of Lucky Luciano: Mysterious Tales of a Gangster Legend (Gangland Mysteries), appears on Crime Beat Radio Tonight.

Lucky  Luciano: Mysterious Tales of a Gangster LegendCharles Lucky Luciano is one of the most researched, discussed and dissected American mobsters of all time. His name has become synonymous with NY City's high drama gangland days of prohibition bootlegging, the information of the infamous five families, and controversy over his alleged Last Testament. However, there exists many fascinating and lurid tales and theories regarding Lucky's rise and fall from the mobs top spot. Some of these stories are known, but still incited debate, such as the origins of his nickname and menacing facial scars. Other legends are not so well known to the general public

With information culled from rare news articles, government documents and numerous books written on the subject, this book will give readers a chance to discover Luciano in a way that engages the mystery of his pop culture status, while encouraging further debate over the facts that fallacies that exist about his true role in the history of the American mafia structure.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. 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.

Wednesday, July 23, 2014

Was Gianni Versace Killed in a Mob Hit?

There is new information from the ABC7 I-Team in a case that stunned the nation and the fashion world 17 years ago. It was then that designer Gianni Versace was gunned down on the steps of his Miami Beach mansion. The case of the street-side assassination of the fashion mogul is still yielding new information.

The I-Team has learned that local authorities first thought Versace might have been cut down by a mob hitman and called in the FBI because of a possible organized crime connection. There are now new details in the old case about the moments and days immediately after Versace was shot and killed in front of his South Beach mansion.

When Versace was murdered 17 years ago, Was Gianni Versace Killed in a Mob Hit?a friend of the designer's actually saw the fatal shot. According to FBI records the gunman "was followed by a friend of Versace's who observed the subject walk north to 12th Street, then head west into an alley, at which time the subject turned and pointed a gun at the witness who fled the area and lost contact with the subject."

The voluminous FBI file on the case reveals that "Miami Beach homicide detectives requested FBI agents respond to the crime scene, initially thinking that Versace may have been killed a result of a murder for hire or some organized crime connection."

Of course it wasn't a gangland hit. It was Andrew Cunanan, who took down Versace at the end of a country murder spree, a criminal odyssey that left Chicago business tycoon Lee Miglin dead along the way. FBI investigative notes on Cunanan state that: "Gianna Versace was shot and killed, subject is believed to be the killer and may, or may not be, targeting former lovers or clients who may have given him AIDS."

In an email to a New York news outlet that Cunanan sent after the Versace murder, he wrote "I love all the news. Any gay rich man who have been with will get there's very good."

Cunanan also had created an elaborate misdirection scheme in an attempt to get away with murder. While he was the target of a nationwide manhunt, he tried to evade authorities by sending out emails stating that he was in New York City (when he wasn't) and that his next victim would be in New York (which it wasn't.)

Those emails were actually sent from the killer's houseboat hideaway on the Miami Beach Intracoastal, a few miles from Versace mansion murder scene, where he would eventually kill himself.

Cunanan died at his own hand ten days after the Versace murder, one of at least five murders attributed to him. Cunanan's remains are in a crypt at a Catholic cemetery in San Diego, the city where he was living prior to the start of the killing spree.

Thanks to Chuck Goudie.

Monday, July 21, 2014

Mafia Ties Investigated with Discovered Assassin Van

The two dining room chairs, sawed off at the legs and mounted inside the cargo area of the van, might have passed for mere oddity at first glance. But a far more sinister picture emerged as Jefferson Parish Sheriff’s Office deputies scoured the 1998 Ford after a traffic stop one night in early May in Old Metairie.

Inside the vehicle, authorities found a loaded .22-caliber rifle with a scope stashed under a carpet. An unregistered silencer had been stowed in a side compartment, and deputies discovered an 8-inch cannon fuse — a wire capable of detonating an explosive device — tucked under a sandbag behind the driver’s seat.

The van, which bore a stolen license plate, had even been retrofitted with custom sliding windows in the rear and side panels, offering concealed vantage points for a possible gunman.

Authorities were left with an inescapable conclusion: This vehicle had been outfitted to kill. “It’s a concern for us that there was a target just because of the nature and the setup of the vehicle,” said Kevin Moran, a spokesman for the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. He said Jefferson Parish officials “definitely stopped something potentially horrific from occurring.”

Federal authorities are investigating whether the van and the rifle found in it can be linked to any shootings. But their probe also has raised troubling questions about the two men seated in the front of the vehicle when officials pulled it over: Dominick Gullo, 72, and Joseph F. Gagliano, 55, who were both indicted last month on federal weapons charges.

The two suspects, who are being held without bail, have disavowed knowledge of the van’s contents. But at least one has ties to the Marcello organized crime family that was active in the city for decades before ostensibly fizzling out in the mid-1990s. Gagliano, who served time in federal prison for racketeering, is the son of Frank Gagliano Sr., who was the reputed “underboss” of the organization before his 2006 death.

Gullo is not a convicted felon, however, and in fact this was his first known run-in with law enforcement.

It’s not clear whether the sniper van bears the fingerprints of old-fashioned organized crime or was simply the freelance creation of men with unknown motives. And while law enforcement officials say there are still vestiges of the Mafia, they say its influence in New Orleans has been reduced through attrition and tectonic shifts in the criminal landscape.

“To say that Italian organized crime is making a comeback here in New Orleans is a quantum leap,” said Jim Bernazzani, a former FBI agent who was head of the bureau’s New Orleans field office for three years, until 2008. “I think we have a couple of guys who may have been affiliated — associates, not ‘made members.’ ”

“The whole van thing, if in fact it was organized crime and not individual retaliation, is an anomaly,” Bernazzani added. “It’s something we haven’t seen in a long, long time.”

New Orleans has a colorful history of reputed mob activity, dating back to 1890 and the assassination of the city’s police chief, David C. Hennessy. But those enterprises have diminished greatly in recent decades, giving way to drug-peddling street gangs and the likes of Central City crime lord Telly Hankton, perhaps the most notorious criminal of his generation.

“It’s no longer the overriding, omnipresent, powerful, tightly organized criminal operation that it was 50 years ago,” Rafael Goyeneche, president of the watchdog Metropolitan Crime Commission, said of local crime families. “But there are some remnants of it, and this (van) may be a manifestation of the remnants.”

John Selleck, a local FBI agent, said the bureau still receives “allegations about La Cosa Nostra here in the Greater New Orleans area” from time to time, referring to the American Mafia organization. “We don’t dismiss that information,” he said, “and we look at it thoroughly against what our other threat priorities are.”

Moran said he believes the Mafia still has a local presence. “It may have gone underground a little bit,” he said, “and I think, in today’s culture, there are a lot more different criminal elements out there.”

Joseph Gagliano’s ties to organized crime are well documented. In 1995, Joseph Gagliano, his father, who was known as “Fat Frank,” and several others — including Anthony Carollo, considered the boss of the organization at the time — pleaded guilty to racketeering in a conspiracy that defrauded Bally Gaming, a supplier of video poker machines, using companies federal prosecutors said were Mafia fronts.

Joseph Gagliano, who was 36 at the time, was sentenced to 3½ years in federal prison for his role in the scheme, which involved a partnership among the Gambino and Genovese crime families of New York and the Marcello family of New Orleans to infiltrate Louisiana’s then-nascent video poker industry.

That sentence ran concurrently with a 2½-year prison term Joseph Gagliano received for his role in a card-marking scandal that swindled more than half a million dollars from a casino in Biloxi, Mississippi.

Joseph Gagliano and his associates had been on the radar of federal prosecutors even before they were charged in the video poker case, having been the targets of an federal inquiry into illegal gambling in 1989. In the sprawling video poker prosecution, more than two dozen people were convicted in a scheme to distribute poker machines and skim profits from Bally Gaming, the supplier.

In building their case, federal agents bugged Frank’s Restaurant in the French Quarter — a deli owned at the time by Joseph Gagliano’s father and now run by his brother, Frank Gagliano Jr. — in a probe that came to be known as Operation Hardcrust after investigators complained about the staleness of the French bread at the eatery. Through hidden cameras and tapped phones, authorities enjoyed what then-federal prosecutor Jim Letten described as a “window into the internal resurgence of a previously dormant organized-crime family.”

The video poker racket marked a renaissance of sorts for the Marcello family, whose influence had increasingly come into question in the years after Carlos Marcello, the reputed New Orleans mob boss, went to prison in an earlier racketeering case. Marcello, who was eventually released after the U.S. Supreme Court threw out his conviction, died in 1993 at the age of 83.

Bernazzani, who said much of the New Orleans Mafia had been eliminated before his tenure, noted the lasting impact of sweeping racketeering cases, which he said served to decimate the ranks of Italian crime families around the country. “Through attrition, we kept picking off the upper echelon, and everybody who came in to take their place had lesser and lesser sophistication and made more and more mistakes,” he said. “A lot of these offspring saw their uncles and fathers and grandfathers die in prison, and they decided to open restaurants.”

Even as its power has faded, the legacy of the Marcello crime family has endured. As recently as 2012, the Louisiana Gaming Control Board denied an application for a video gaming license for Frank’s Restaurant, calling the business “the site of illegal gaming activity” and referring to co-owner Frank Gagliano Jr.’s 1997 conviction in an illegal bookmaking scheme. “Mr. Gagliano’s brother and father, Frank Gagliano Sr., were reportedly members of New Orleans organized crime,” the board’s order said.

When Joseph Gagliano left federal prison in 1999, he did so with substantial debt. As part of his plea agreement, he had been ordered to pay $250,000 in restitution to Bally Gaming, the company he and his co-conspirators defrauded. It’s unclear what type of work he’s been engaged in since his release. Neither his wife, Hetty Gagliano, nor his brother, Frank Gagliano Jr., responded to requests for comment.

Public records list Joseph Gagliano as the director or registered agent of several companies, most of which appear to be related to grocery distribution and gaming. He has paid back $4,000 of his debt, and in 2013, prosecutors attempted to garnish the wages of his wife from her job as an instructor at Delgado Community College.

According to court records, Hetty Gagliano was being paid slightly less than $1,300 on a biweekly basis, after the deduction of taxes. Hetty Gagliano owns the house where the couple live in the 1000 block of Sena Drive in Metairie, according to the Jefferson Parish Assessor’s Office. The imposing, multistory brick residence has a neatly trimmed yard, a two-car garage and an assessed value of $495,000.

A neighbor described the couple as quiet but said news of Joseph Gagliano’s recent arrest, first reported this month by WVUE-TV, had rippled through the block. “They pretty much stuck to themselves,” said the neighbor, who declined to give his name. “I guess maybe they had a reason.”

About 1½ miles away, in the 200 block of East William David Parkway, a man who lived near Gullo said he’d seen him only a handful of times. “He always seemed like a nice guy,” said the man, who also would not give his name. “At least until we heard that he was trying to kill people.”

It’s unclear exactly how long Gullo, who previously lived in Las Vegas and Chicago, had lived at the home, though the neighbor estimated about two years. Patricia Guggenheimer, who owns the house but apparently lives in St. Tammany Parish, declined to answer questions about how she knew Gullo. “I’m not going to talk about that,” she said before hanging up.

Authorities were alerted to the retrofitted van’s stolen license plate on May 7 by an automatic license-plate reader. A Jefferson Parish sheriff’s deputy followed the vehicle down East William David Parkway and turned on his flashing lights about 11 p.m. Gullo, who was driving the vehicle, pulled into his driveway.

After running a search of the van’s vehicle identification number, Deputy Lamar Hooks learned it was registered to South Coast Gas Co., a business based in Raceland. Michael St. Romain, the company’s vice president, said the van had been traded in to Terrebonne Ford about two years ago, adding that the company previously used the van as a service vehicle.

The license plate affixed to the van had been swiped Feb. 4 from a woman’s car in the parking lot of an unidentified hospital, according to a Jefferson Parish Sheriff’s Office report.

It wasn’t until the deputy prepared the vehicle to be towed from Gullo’s home, however, that he discovered its startling contents, including the rifle, silencer and cannon fuse.

Gullo claimed he had purchased the van earlier in the day at CC’s Coffee Shop in the 800 block of Metairie Road, according to the report. He said a woman had entered the business inquiring whether anyone wanted to buy the vehicle for $300. Gullo told Hooks he took the woman up on the deal, adding that the woman promised to meet him the next day to provide more documents.

Gullo and Gagliano denied having any knowledge of the van’s contents, according to the report, but investigators remain skeptical. “The sophistication and the preparation that goes into preparing a vehicle like this would lead a logical person to the conclusion that there’s maybe more to this than they just happened to be driving around in a van,” said Selleck, the FBI agent, alluding to the custom windows and mounted dining room chairs.

Deputies arrested Gullo on one count of possession of stolen property and booked him into the Jefferson Parish Correctional Facility, where he later posted bail. Gagliano was not detained at that time.

A month later, a federal grand jury indicted both men. Gagliano was charged with being a felon in possession of a firearm and also with possession of the unregistered silencer. Under federal firearm regulations, silencers are “treated the same as a fully automatic machine gun, a sawed-off shotgun, a short-barreled rifle and other destructive devices,” said Moran, the ATF spokesman.

Gullo was charged only with possession of the silencer, though law enforcement officials said their investigation continues.

“This isn’t just a trip back from buying some ammunition or running to the grocery store,” said Goyeneche, of the Metropolitan Crime Commission. “This is something very, very ominous and sinister.”

Thanks to Jim Lawton and Dan Mustian.

Sunday, July 20, 2014

Details on State's Attorney Alvarez #OperationCrewCut Announcement of Charges in Rackeetering Operation including Drug Trafficking, Home Invasions and Kidnapping

Five people have been charged with Super Class X felonies in connection with a proactive state racketeering investigation targeting members of an organized crime street crew that engaged in a wide array of criminal activity including drug trafficking, home invasions and kidnapping, Cook County State’s Attorney Anita Alvarez announced.

Cook County prosecutors announced RICO and other related charges against the defendants who are associated with a sophisticated and high tech criminal enterprise that operated in the Chicago area for years. The criminal complaints against the defendants were filed in Cook County Criminal Court today.  The case marks the second state RICO prosecution by the Cook County State’s Attorney’s Office since the Illinois Street Gang RICO law was passed in 2012.

Three men have been charged with the Super Class X felony offenses of Racketeering Conspiracy and Criminal Drug Conspiracy, including Robert Panozzo, age 54, and Paul Koroluk, age 55, as well as Maher Abuhabsah, age 33.  Panozzo’s son, Robert Jr, age 22, was charged with Criminal Drug Conspiracy, and Koroluk’s wife, Maria Koroluk, age 53, was charged with Possession with Intent to Deliver a Super Class X amount of cocaine as a result of this investigation.

After the bond hearing, State’s Attorney Alvarez noted that, like the prior RICO case brought by her office against the violent Black Souls Street Gang, her investigation was triggered when a criminal enterprise plotted to kill a witness, saying that “in both matters, organized crime sought to attack the criminal justice system itself, and now, armed with a proper state RICO statute, my office can fight back effectively and hold the right offenders accountable for their crimes.”

 “The completion of this second proactive investigation is yet another example of the vital importance that our Illinois RICO law now plays in our ability to combat violent organized crime in the state of Illinois, and I am pleased to work in collaboration with our law enforcement partners at the local and federal level once again, and use this critical tool to send a strong and lasting message to criminals who plague our communities with violence and crime,” Alvarez said.

“Operation Crew Cut” was a 10-month long-term covert investigation, which targeted members of the Panozzo-Koroluk street crew (P-K street crew), who at times posed as police officers to rob drug cartel stash houses for illegal contraband including drugs and cash proceeds.  The ongoing pattern of criminal activity included home invasions, robberies, kidnapping and insurance fraud among other offenses.  The joint state-federal investigation included the use of advanced law enforcement tools such as court-ordered electronic surveillance, consensual overhears, tracking orders, and search warrants of cell phones and email accounts.

According to prosecutors, the investigation began in October 2013 after law enforcement authorities developed evidence that a member of the P-K street crew attempted to solicit the murder of a state witness who was set to testify against members of the P-K street crew in a pending home invasion and kidnapping case.  Specifically, investigators discovered that Robert Panozzo Sr., along with other individuals, solicited another individual to kill the victim on that case to prevent them from testifying at the trial.

Based on that information, prosecutors, along with other law enforcement agencies began the proactive racketeering investigation into the illegal activities of the close-knit P-K street crew.  The investigation revealed evidence that the crew engaged in a wide array of crimes including drug trafficking, murder, home invasion, armed violence, burglary and weapons offenses.  As the investigation progressed, it became clear that the scope of the crimes committed by members of the P-K crew were quite substantial and violent.

The investigation also revealed that the members of the P-K street crew routinely obtained information from Chicago street gang members to determine the location and contents of drug cartel stash houses.  The P-K street crew members would then utilize high tech equipment, such as video surveillance and GPS trackers placed on the cars of drug dealers, to determine the location of the stash house.  Once the location was obtained, P-K street crew members would then enter the houses, posing as police officers and steal large quantities of contraband including drugs and other items.  

According to court documents, during the course of one home invasion and kidnapping in 2013, Panozzo sliced off the ear of a victim at the location after Panozzo heard the man speaking English after claiming he only spoke Spanish.  During this particular incident, the P-K street crew stole over 25 kilograms of cocaine and two cars.

The defendants in this case were arrested on July 16, 2014 after Panozzo, Koroluk, Abuhabsah and Panozzo Jr, attempted to steal approximately 44 kilograms of cocaine stored at what they believed was a drug dealer’s stash house.  Unbeknownst to the defendants, however, law enforcement authorities had obtained court authorization to rig the house with audio and surveillance equipment as part of a covert sting operation.  The defendants entered the home and took possession of cocaine, and shortly after emerging from the location, the men were arrested by police who were monitoring the operation.

The  “Street Gang Rico” bill written by the Cook County State’s Attorney’s Office and passed by the state legislature in 2012, allows  prosecutors at the state level to target gang and organized crime enterprises who engage in a pattern of crimes involving violence such as illegal weapons, sex-offenses, drug trafficking and other offenses.

The investigation was conducted by the State’s Attorney’s Office in cooperation with the Chicago Police Department, the Federal Bureau of Investigation, the Cook County Sheriff’s Office, the Drug Enforcement Administration, and the United States Attorney’s Office.

Reputed Chicago Mob Outfit Crew Charged with Posing as Police to Rob Drug Houses

Members of a street crew with ties to Chicago’s Outfit that operated a sophisticated drug ring that posed as police officers to rob cartel stash houses of large amounts of drugs were arrested this week, prosecutors said Saturday.

Four men who were part of the Panozzo-Koroluk Street Crew were arrested Thursday after investigators set up a sting operation in Chicago’s Hegewisch neighborhood, prosecutors said in Cook County Bond Court Saturday. The men tried to steal 44 kilograms of “a substance containing cocaine,” from what they thought was a drug dealer’s stash house in the 13000 block of South Brandon Avenue, prosecutors said.

Police had installed surveillance equipment in the house, however, and the crew was arrested as they brought the cocaine outside.

Robert Panozzo, 54, Paul Koroluk, 55, and Maher Abuhabsah, 33, and Panozzo’s 22-year-old son, Robert Panozzo, Jr., were held without bail in Cook County bond court Saturday.

Panozzo and Koroluk are part of a Grand Avenue Outfit crew run by Albert “Little Guy” Vena, according to sources and court testimony in the federal murder plot trial of Steve Mandell, a former Chicago police officer, earlier this year. The crew came to investigators’ attention in October 2013, when law enforcement found evidence that Panozzo Sr. tried to have a witness in a home invasion and kidnapping case murdered to prevent the witness from testifying at trial, prosecutors said.

Koroluk’s wife, Maria Koroluk, 53, was arrested Friday at the home she shared with her husband in West Town, where police found 200 grams of cocaine on her clothes and shoes, Morley said. She was charged with possession of a controlled substance with the intent to deliver and held on $100,000 bail.

The men’s crimes included home invasions, armed robberies, burglaries, insurance fraud and prostitution, Cook County State’s Attorney Anita Alvarez said at a news conference after the crew’s bond hearings.

The crew conducted five  to six major drug-house “rips” per year, during which they posed as police officers to rob stash houses, Alvarez said. The crew used sophisticated methods, including attaching GPS trackers to dealers’ cars to find where they stashed their drugs.

 “I think this is a very organized crew and a dangerous crew,” Alvarez said. “They have a  history of burglarizing and being in and out of jail. Clearly it didn’t help. We are hoping under these charges they will be held accountable.”

This is the second case charged under the State of Illinois’ Rico law that allows prosecutors to target the structure of a criminal organization itself so that a judge can see a complete picture of a gang’s criminal activity, Alvarez said. “This is the perfect example of the type of cases we were looking to be able to handle under this new law,” Alvarez said.

During numerous search warrants into the mens’ homes executed as late as last night, Alvarez said, officers found police scanners, police vests, and real police badges that had been stolen from police officers’ homes. “They have a long history, a history of burglaries and home invasions,” Alvarez said. “We are happy that this operation turned out the way it (did).”

During a home invasion in 2013, Panozzo Sr. sliced off the ear of a victim after he heard the man speaking English after he had claimed that he only spoke Spanish. “Needless to say their methods involved extreme violence,” Alvarez said.

Panozzo and Koroluk have several burglary convictions and operated one of the most sophisticated burglary rings police have ever seen. Panozzo and Koroluk operated in the area of Grand and Western, Alvarez said. They are from the old Italian neighborhood known as the Patch on the near West side, where Joey the Clown Lombardo and many other mobsters are from.

The two are also part of the same crew as Louis Capuzi and Frank Obrochta, who are in jail facing burglary charges in both DuPage and Cook Counties.

The male defendants face 15 to 60 years in prison for racketeering as well as 15 to 60 years for drug conspiracy charges. Maria Koroluk faces up to 40 years in prison, Alvarez said.

Thanks to Meredith Rodriguez.

Thursday, July 17, 2014

Jack W. Tocco, Reputed Detroit Mob Boss Dies at 87

Reputed Detroit mob boss Jack W. Tocco, who was convicted of racketeering in 1998 in a federal crackdown on organized crime, has died. He was 87.

Tocco, who said he fought his entire life to clear his name, died Monday at home in the Detroit suburb of Grosse Pointe Park, according to Bagnasco & Calcaterra Funeral Home, which is handling arrangements. A cause of death wasn't released.

Tocco, whose family had a linen business, grew up in suburban Detroit and repeatedly proclaimed his innocence. He was convicted of racketeering and conspiracy to commit extortion in 1998. He served nearly three years behind bars in the case and paid $950,000 to the government.

Attorney James Bellanca Jr., whose firm represents Tocco, said he learned of Tocco's death from his family. In an email, he said Tocco lived his life "under the scrutiny of the government and the subject of public accusation." He said Tocco tried to clear his name. "Individuals familiar with his conviction in 1998 believe it was based more on the reputation that had been created for him than any evidence of wrongdoing presented against him at trial," Bellanca said. "He served his sentence quietly and with the same dignity he lived his life."

A federal jury in 1998 convicted Tocco of taking part in a 30-year racketeering conspiracy that included loan-sharking, illegal gambling, obstruction of justice and attempts to gain hidden interests in Nevada casinos. The FBI labeled him the Detroit crime family's boss in an organizational chart released in 1990.

Tocco was included in a 1996 indictment targeting alleged organized crime figures in Detroit. At a news conference about the case at the time, FBI Special Agent Joseph Martinolich Jr., who headed the Detroit office, said: "Here in Detroit, we believe we've driven a stake through the heart of La Cosa Nostra."

Tocco initially was sentenced to one year and a day, but that sentence was later invalidated by the appeals court after the government argued the penalty was too lenient. In 2000, a federal judge in Detroit imposed a new sentence of 34 months.

Tocco, who completed his 34-month sentence, that year thanked relatives and friends for their support and criticized former associates who testified against him.

"All my adult life, I've been fighting to clear my name," he said at a court hearing. "And I will continue that fight to clear my name until the time I die."

ATF to Increase Total Agents in Chicago to 52 with Focus on Reducing Illegal Gun Trafficking and Gun Crime

Following his recent visit to Chicago where he participated in a roundtable discussion with Mayor Emanuel on recent reductions in youth violence, Attorney General Eric Holder announced plans to send seven additional Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), agents to the field division office in Chicago.

The new ATF agents will coordinate efforts with U.S. Attorney Zachary T. Fardon, as well as federal, state and local law enforcement and community partnerships to advance proven strategies to reduce illegal gun trafficking and gun crime. There are currently 45 ATF agents assigned to Chicago.

"The Department of Justice will continue to do everything in its power to help the city of Chicago combat gun violence,” said Attorney General Eric Holder. "These new agents are a sign of the federal government's ongoing commitment to helping local leaders ensure Chicago's streets are safe.”

The deployment of new ATF agents represents the latest step in strengthening the partnerships with the Chicago Police Department and other local law enforcement agencies. In early June, ATF opened the Chicago Crime Gun Intelligence Center. The Center combines the gun enforcement efforts of the Chicago Police Department, Illinois State Police and ATF to provide additional leads that otherwise might go unnoticed and further addresses the illegal sales and possession of firearms in the State of Illinois.

In addition, U.S. Attorney Zachary T. Fardon announced a restructuring of the Criminal Division in his office and in doing so named a team of prosecutors who will work specifically to reduce violent crime in the city. The FBI currently has over 100 agents in Chicago assigned to curb gang and violent crimes. During the summer months, the city temporarily assigned an additional 20 agents to supplement crime reduction efforts. Under the 12 current grants administered by our Office of Juvenile Justice and Delinquency Prevention alone, the City of Chicago and Cook County has access to more than $6.6 million to further these efforts to address youth violence.

Gun crime is the primary driver of homicide in Chicago, and sixty percent of the guns recovered in violent crimes in Chicago were originally sold in other states and trafficked into the city. Given the interstate nature of these crimes, it is critical that federal and local law enforcement work together to identify traffickers and enforce federal gun laws. ATF will continue to concentrate its criminal enforcement on firearms trafficking throughout the region while curbing the supply of illegal guns that end up in the hands of gang members and other violent criminals.
 
“ATF’s commitment to targeting traffickers and trigger pullers in Chicago is bolstered by these additional resources,” said ATF Director B. Todd Jones.  “These resources, combined with ATF’s Crime Gun Intelligence Center, will strengthen and build on our outstanding partnership with the Chicago Police Department and other local, state and regional law enforcement to bring safety and justice back to the community."

“We have enjoyed an ever-improving and increasingly productive relationship with our federal partners,” said Chicago Police Superintendent Garry McCarthy. “We look forward to continuing that relationship and welcoming additional personnel in our ongoing efforts to ensure everyone in Chicago enjoys the same sense of safety.”

The Justice Department will continue to build on this work in the months ahead through initiatives like Project Safe Neighborhoods; the National Forum on Youth Violence Prevention; and innovative community oriented policing tools in the neighborhoods across Chicago.

Catherine Pelonero, author of #KittyGenovese - A True Account of a Public Murder and Its Private Consequences, Appears Tonight on Crime Beat Radio

Catherine Pelonero, author of Kitty Genovese: A True Account of a Public Murder and Its Private Consequences, Appears Tonight on Crime Beat Radio.

A true account of the horrific and infamous murder of Kitty Genovese, a young woman stalked and stabbed on the street where she lived in Queens, New York on March 13, 1964. The case sparked national outrage when The New York Times revealed that dozens of witnesses had seen or heard the attacks on Kitty Genovese and her struggle to reach safety but had failed to come to her aid – or even call police until after the killer had fled.

Kitty Genovese: A True Account of a Public Murder and its Private Consequences cuts through misinformation and conjecture to present a definitive portrait of the crime, the aftermath, and the people. Based on six years of exhaustive research, Catherine Pelonero’s book presents the facts from the police reports, archival material, court documents and first-hand interviews. Pelonero offers a personal look at Kitty Genovese, an ambitious young woman viciously struck down in the prime of her life; Winston Moseley, the killer who led a double life as a responsible family man by day and a deadly predator by night; and the consequences for a community condemned and others touched by the tragedy. The book gives a deeper look, shedding new light on the crime and the real people behind an iconic incident in American history.

More than just a true crime story, the book embodies much larger themes: the phenomenon of bystander inaction, the evolution of a serial killer, and the fears and injustices spawned by the stark prejudices of an era, many of which linger to this day.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. 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.

What if Obama Requested $3.7 Billion to Help Chicago Instead of the Illegal Immigrants? #MurderCityUSA

It is hard not to wonder what kind of impact $3.7 billion -- the amount President Obama has requested to deal with the child migrant border crisis -- might have on the traumatized children of Chicago’s South Side.

If a humanitarian crisis is, as the Humanitarian Coalition defines it, “an event or series of events which represents a critical threat to the health, safety, security or well-being of a community or other large group of people, usually over a wide area,” Chicago’s neediest neighborhoods certainly fit the bill.

The violence, the torn-apart families, the instability, the lack of economic opportunity, which, so far, are too great to be addressed by the mandate or capacity of any single agency, have indeed resulted in extensive loss of life, displacements of entire populations, and poor access to basic needs such as food, shelter, security and health care.

I live far from the southern United States border, so I can neither judge harshly those protesting the wave of immigrants at their doorsteps nor completely disagree with those who see needy children and want to extend a helping hand. But one can’t help but look closer to home for some much-needed perspective on how the migrants’ crisis stacks up to our own powerless, terrified families’ day-to-day existence.

Bloodshed, gang intimidation, drug wars, robbery, rape, murder of children in the streets and widespread dropping out of school because of belief in certain death at a young age are the circumstances the children running to the U.S.-Mexico border are fleeing. And the same ones children and families on Chicago’s South Side face daily.

I write this after a weekend during which Chicagoans wondered, for the umpteenth time, whether it isn’t time to call in the National Guard to get their city -- the 2012 murder capital of the U.S., according to FBI statistics -- under control.

Among the casualties during this mild mid-July weekend were three killed and at least 24 others wounded by gunshots, many of them teens. If we take it back to last Wednesday, a pregnant mother of five was shot in the head while driving her minivan down one of our expressways.

This is par for the course. Chicago is a city in which toddlers are beaten to death, their tiny bodies sometimes set on fire, with alarming regularity. In certain corners of this town -- indeed, often in or very near Obama’s own neighborhood -- public school education is a joke, there are no jobs, there are no opportunities and there sure isn’t much hope.

The same can be said about areas in St. Louis, Detroit, Oakland and in many high-poverty communities populated almost exclusively by Hispanics and African-Americans.

“Usually when America wants something, it opens up its purse, sends the dollars and gets it,” said Phillip Jackson, the executive director of Chicago’s Black Star Project, an organization working to improve the quality of life in black and Latino communities of Chicago and nationwide by eliminating the racial academic achievement gap. “But America seems to be investing in prisons, seems to be ready to invest in more court systems and deportations, in helping the situations in Central America, and not in the things that will build the fabric of community life here the way they say they want to build the fabric of life in other nations.”

Jackson made these comments to me only after I pressed him to describe the desperation he sees Chicago’s children facing daily as the Obama administration talks about what $3.7 billion can do on the border.

He cited a study estimating the costs of gun violence on Chicagoans at about $1 million per gunshot injury from police time to medical and court costs to decreased tourism revenue from bad publicity. Jackson said there were about 3,500 shootings in 2013, most driven by desperation.

Putting aside the question of whether we should or shouldn’t take in needy children at the border, we might ask ourselves: If President Obama manages to get almost $4 billion to give Central America’s kids succor, might he endeavor to come up with roughly the same amount to help the Hispanic and black children-in-crisis in his own backyard?

Thanks to Ester Cepeda.

Wednesday, July 16, 2014

Note on U.S. - China Counterterrorism Dialogue

The United States hosted the U.S.-China Counterterrorism Dialogue July 15 in Washington, D.C. Under Secretary for Civilian Security, Democracy and Human Rights Sarah Sewall delivered the opening remarks and Ambassador Tina Kaidanow, Coordinator for Counterterrorism, led the U.S. delegation. Vice Foreign Minister Cheng Guoping from the PRC Ministry of Foreign Affairs led the Chinese delegation. The two sides reaffirmed their commitment to address the shared threat that terrorism poses to both countries and the international community. Ambassador Kaidanow and Vice Foreign Minister Cheng noted the success of the U.S.-China Strategic and Economic Dialogue held in Beijing July 9-10 for setting the tone for cooperative bilateral relations, in which counterterrorism cooperation plays an important part.

During the dialogue, the two sides noted their opposition to terrorism in all forms and agreed on the importance of promoting peace and prosperity in regions around the world. Both sides sought practical ways to strengthen cooperation on counterterrorism and agreed to meet again next year.

Addict Claims DEA Agents Pushed Him to Get Re-addicted to Crack

U.S. Drug Enforcement Agency agents got a recovering drug addicted re-addicted by giving him crack cocaine as part of an Organized Crime Drug Enforcement Task Force known as "Operation Smack City," the man claims in a federal lawsuit.

Aaron Romero sued the United States and five named DEA agents on Monday.

Romero claims he had been clean and sober for four months when DEA agents gave him crack, causing him to relapse into addiction. He claims the DEA gave him the drug no fewer than six times, and several other times gave him money which they knew he would use to buy drugs.

Romero claims the DEA agents gave him the drugs as payment for his brokering purchases of crack from other dealers.

He claims the agents worked through an informant to negotiate these deals in order to track drug trafficking in New Mexico, while at the same time using Romero's consumption of the drug to "stack drug-related charges" against him for later prosecution.

These criminal drug charges against Romero, and charges against four other people, were dismissed by the U.S. attorney, according to the lawsuit.

Romero seeks $5 million in damages for civil rights violations, personal injury and professional negligence.

He is represented by Erlinda Johnson in Albuquerque.

Violent #Lomas13 Gang Member Back Behind Bars

Deputy U.S. Marshals and Task Force Officers assigned to the Marshals Service South West Investigative Fugitive Team (SWIFT) Task Force along with officers of the Bernalillo County Sheriff’s Office (BCSO) arrested fugitive James Garcia. Garcia was wanted by the Bernalillo County Sheriff’s Office for state charges that included Aggravated Battery with a Deadly Weapon, Conspiracy to Commit Aggravated Battery with a Deadly Weapon, Aggravated Assault with a Deadly Weapon, Possession of Firearm or Destructive Device by a Felon, Possession of a Controlled Substance, and Use or Possession of Drug Paraphernalia.

During the initial fugitive investigation, SWIFT Task Force Investigators developed information that Garcia was a validated Lomas 13 gang member with an extensive criminal history. In prior arrests Garcia was allegedly found with ballistic vests, ammunition, and a firearm.

On July 11, in the evening hours SWIFT Task Force Investigators observed Garcia driving in a late model pickup truck. Subsequently, SWIFT Task Force Investigators and BCSO Deputies approached the vehicle and took Garcia into custody. Garcia was once again arrested with drugs, a handgun, ammunition, and ballistic materials. Garcia is currently in the custody of the U.S. Marshals Service.

Pizza Franchise Owner and Nominee Owner Plead Guilty in Tax Fraud Scheme

Two West Bloomfield, Michigan, residents pleaded guilty in the U.S. District Court for the Eastern District of Michigan, announced the Justice Department and Internal Revenue Service (IRS).

Arkan Summa, an owner of numerous Happy’s Pizza franchises, pleaded guilty to corruptly endeavoring to obstruct or impede the due administration of the internal revenue laws. Tagrid Summa Bashi, Summa’s sister and a nominee owner, pleaded guilty to willfully delivering false documents to the IRS.

A multiple count indictment was unsealed July 16, 2013 alleging that from approximately June 2004 through April 2011, Summa executed a scheme in which he diverted gross receipts, underreported wages and caused the taxable income and payroll tax information of specific Happy’s Pizza franchises to be underreported to the IRS.

According to the information filed in court, in 2009, Bashi caused false payroll information forms to be submitted to the IRS. Documents filed with the court indicate Summa’s obstruction of the IRS resulted in a tax loss of approximately $199,847, and Bashi caused approximately $55,000 in wages to be underreported to the IRS through her false submission.

For the obstruction charge, Summa faces a statutory maximum sentence of three years in prison and a fine of up to $250,000. Bashi faces a statutory maximum sentence of 12 months in prison and a fine of up to $100,000. Sentencing for both defendants is scheduled for Oct. 23.

Tuesday, July 15, 2014

High Ranking #14KTriad Member Among 8 Charged with Running Illegal World Cup Gambling Operation from @CaesarsPalace Villas

Seven men and one woman have been charged with operating an illegal gambling business from several exclusive high roller villas at Caesars Palace from approximately June 6 to July 9, 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Wei Seng Phua, 50, Darren Wai Kit Phua, 22, Seng Chen Yong, 56, Wai Kin Yong, 22, all of Malaysia; Hui Tang, 44, of China; and Yan Zhang, 40, Yung Keung Fan, 46, and Herman Chun Sang Yeung, 36, all of Hong Kong, are charged in a criminal complaint and are scheduled to make initial court appearances before U.S. Magistrate Judge Carl W. Hoffman at 3:00 p.m. today. The defendants were arrested in Las Vegas on July 13, 2014, by law enforcement agents with the FBI and Nevada Gaming Control Board. Each defendant is charged with one count of unlawful transmission of wagering information and one count of operating an illegal gambling business. If convicted, they face up to two years in prison on the unlawful transmission count and up to five years in prison on the illegal gambling business count, as well as fines on each count of up to $250,000.

According to the criminal complaint, Wei Seng Phua, is known by law enforcement to be a high ranking member of the 14K Triad, an Asian organized crime group. On or about June 18, 2013, Phua was arrested in Macau, along with more than 20 other individuals, for operating an illegal sport book gambling business transacting illegal bets on the World Cup Soccer Tournament. Phua posted bail in Macau and was released. The complaint alleges that on June 23, 2014, Phua arrived in Las Vegas, Nev., to continue with his associates their illegal gambling business at a local casino. During early June 2014, three villas were reserved at a Caesars Palace at the request of Wei Seng Phua or one of his associates. Between June 6 and June 11, 2014, Phua and two of his associates, Seng Chen Yong and Hui Tang, checked into the villas. Phua and his associates allegedly requested that Caesars Palace install an unusually large amount of electronics equipment in the villas to support eight (8) Digital Subscriber Line (DSL) lines, and WiFi access. Caesars Palace installed and set up the equipment, but became concerned the equipment appeared to be a set-up for an illegal gambling operation. In one of the villas, computer screens were observed which looked similar to the ones in the casino’s sports book, including five stations and three monitors attached to each station. Each station’s computer tower was hooked up to a Century Link DSL line with voice over Internet protocol phones. Near the computer stations, there were three large screen televisions with service from Cox, Dish and Direct TV, each of which was tuned to World Cup soccer games. The Nevada Gaming Control Board, subsequently determined that the set-up was similar to a “wire room” where illegal wagers are made and monitored, and that the defendants were monitoring the World Cup and betting odds associated with World Cup soccer games in furtherance of operating a gambling business. Over the next month, law enforcement agents worked undercover and monitored the activity in the villas. On July 9, 2014, federal search warrants were executed at the three villas and law enforcement agents recovered gambling records, computer equipment, and other items. The defendants were arrested after it was determined that they were allegedly remotely controlling computers based overseas which allowed them to operate and manage their illegal gambling business from Las Vegas.

Video of #TheSopranos #GTA5 Intro vs. The Original | Side-by-side Comparison






Sunday, July 13, 2014

Legalizing Soft Drugs to Fight #OrganizedCrime

Does caffeine lead to cocaine use? Obviously not. But if caffeine were outlawed, a black market would emerge. Drug gangs, which are highly skilled at operating outside of the law and have pre-existing distribution channels, would begin trafficking illegal caffeine pills. If people were forced to use black market distribution chains to obtain a mild stimulant, such as caffeine, they would almost certainly be more likely to opt for a stronger stimulant, such as cocaine.

Either people deal with drug dealers, or they don’t. If they do, the dealers are likely to try to upsell them on other products. Drug dealers are like any other salespeople: They want to obtain the highest profit margin possible. Cocaine sells at a much higher margin than caffeine pills would, even if caffeine were outlawed. Even if most people resisted the dealers’ insistence that cocaine would provide a better experience, some non-drug users would try it; some would even become addicted. Caffeine use would likely decline, while use of cocaine and other illicit drugs would increase.

The above hypothetical is analogous to the prohibition of marijuana. People often refer to marijuana as a gateway drug that leads to people using stronger drugs. Yet there is no intrinsic gateway effect from marijuana. But once you’re buying marijuana on the black market, it isn’t much of a step to purchase psychedelic mushrooms, cocaine or ecstasy. Once you have a dealer, he or she will try to sell you other drugs. Marijuana isn’t a gateway drug; but black market marijuana is.

Legalizing marijuana would seriously impact the bottom line of many criminal enterprises, as it accounts for around half of global drug gang profits. There’s no doubt these gangs would try to make up for this by pushing the drugs that remain illegal. However, legalized marijuana would disrupt the entire black market, since dealers would no longer be able to lure customers in by selling them weed, only to sell them something else later. They would have a much more difficult time engaging customers to begin with. And if dealing becomes unprofitable, gangs will have a hard time finding dealers to buy their wholesale products. While marijuana use would likely increase (though it actually decreased in Portugal after decriminalization), gang profits would decrease and the availability of other drug would go down as well.

One might argue from the above logic that all drugs should be legalized. That would be simplistic. Some drugs may pose such a threat to users and society that the trade-off of allowing gangs to profit off them from selling a small amount is preferable to legalizing them, even if that only means a marginal increase in usage. Drugs such as crystal meth fall into this category. A true harm-reduction approach to drugs would weigh both the costs of drug usage, and the cost of prohibition. Both can be substantial. We need a rational approach to making these calculations.

One way to go about this would be to create three categories of drugs. The first would be milder substances that are somewhat harmful, but are also widely used. Hard liquor, cigarettes and marijuana are substances that would occupy this category. The harm from the substances is less than the destruction resulting from prohibition. These drugs should be restricted to adult use and should carry specific excise taxes. The second category would include drugs that can be very harmful to users, but rarely fatal, and rarely cause significant externalities. The prime example is cocaine. The harm caused by cocaine rarely extends beyond users and their families. These drugs should be decriminalized, so that problem users can seek treatment without fear of legal repercussions.

The third category would include drugs that are extremely harmful to the users and society as a whole, such as crystal meth, and should remain illegal. While the sale of these drugs would continue to line the pockets of drug gangs, the harm from even a modest increase in people using them would be substantial. Gangs will always exist. But strangling their most benign revenue sources would reduce their ability to finance distribution of the worst drugs, as well as other evils, such as human trafficking.

Drug policy is often considered the domain of morality. It shouldn’t be. Issues of personal morality should not be legislated. But when public safety is at stake, it can make sense to crack down on certain drugs. A utilitarian, harm reduction approach to drug policy would be a vast improvement over the reckless, moralistic approach we have now.

Thanks to Steve Lafleur.

Update on #GameOverZeus and #Cryptolocker Disruption

The Justice Department filed a status report with the United States District Court for the Western District of Pennsylvania updating the court on the progress in disrupting the GameOver Zeus botnet and the malicious software known as Cryptolocker. The disruption began in late May, when the Justice Department implemented a series of Court-authorized measures to neutralize GameOver Zeus and Cryptolocker—two of the most sophisticated and destructive forms of malicious software in existence.

In the status report, the Justice Department informed the court that the technical and legal measures undertaken to disrupt GameOver Zeus and Cryptolocker have proven successful, and that significant progress has been made in remediating computers infected with GameOver Zeus.

The Justice Department reported that all or nearly all of the active computers infected with GameOver Zeus have been liberated from the criminals’ control and are now communicating exclusively with the substitute server established pursuant to court order. The Justice Department also reported that traffic data from the substitute server shows that remediation efforts by Internet service providers and victims have reduced the number of computers infected with GameOver Zeus by 31 percent since the disruption commenced.

The Justice Department also reported that Cryptolocker has been neutralized by the disruption and cannot communicate with the infrastructure used to control the malicious software. As a result, Cryptolocker is effectively non-functional and unable to encrypt newly infected computers.

Computer users who believe they may be infected with GameOver Zeus are encouraged to visit the Department of Homeland Security’s dedicated GameOver Zeus webpage, which is located at www.us-cert.gov/gameoverzeus. Among other resources, the webpage includes links to tools from trusted vendors that can detect and remove the GameOver Zeus infection.

Organized Crime Groups Exploit "Entrepreneur" Visa Progam

Ministers are tightening up the "entrepreneur" visa scheme after checks uncovered a new scam involving potentially thousands of bogus applications.

The Home Office disclosed the number of foreigners applying for the right to stay in this country under the entrepreneur scheme rocketed from 118 in 2009 to just under 10,000 last year.

It was unclear when ministers were alerted to the rapid rise in numbers, but a Home Office spokesman confirmed two thirds of the applicants – more than 3,000 people – were granted a visa.

The Government believes organised crime gangs have been involved in the scam.

It is understood gangs would charge applicants to temporarily lend the £50,000 required to demonstrate they had the capital to invest in business schemes.

The surge in entrepreneur visa applications coincided with ministers' decision to close another visa route – for "post study work" by students who had completed their courses – in 2012.

Applicants denied access to those visas are now believed by the Government to have fraudulently switched to the entrepreneur route.

Immigration officials uncovered the scam after comparing their files with tax records which showed many of the so-called "entrepreneurs" had been working full-time for employers after obtaining their visas, sometimes in low-skilled jobs.

Under the terms of an entrepreneur visa, the holder is only allowed to work for their own business and not take employed work elsewhere.

James Brokenshire, the immigration minister, said: “This government is building an immigration system that is fair to British citizens and legitimate migrants and tough on those who abuse the system and flout the law.
“Our reforms have cut net non-EU migration to levels not seen since the 1990s and slashed overall net migration by a third since its peak under the last government. “And we will not hesitate to take firm action to protect our immigration system further – particularly when there is evidence of criminals targeting what they think are weaknesses in the rules.”

Applicants will now have produce more evidence of their business activities to secure an entrepreneur visa and other restrictions will be placed on switching to the visa from other immigration routes, the spokesman said.

Wide-ranging allegations about student visa fraud were made in a BBC Panorama documentary broadcast in February.

Thanks to David Barrett.

Friday, July 11, 2014

Quacy L. Francis Sentenced to 22 Years in Prison for Cocaine Distribution

A Shreveport man was sentenced to 264 months in prison and eight years of supervised release for his role in a Shreveport cocaine distribution conspiracy.

Quacy L. Francis, 38, of Shreveport was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute cocaine base. According to evidence presented at the guilty pleas in January 2014, Francis and others conspired to possess with intent to distribute cocaine base in the Shreveport area from November 2012 to May 2013. The FBI conducted three controlled purchases of cocaine, both crack and powder, from Francis. Francis purchased cocaine from Michael T. Johnson, 40, of Shreveport, and others to be distributed in the Shreveport area. Lemarcus Miller, 32, and Demarkus Miller, 32, both from Shreveport, were also part of the conspiracy.

Demarkus Miller and Lemarcus Miller were each sentenced to 60 months in prison and four years of supervised release on March 27, 2014 and May 16, 2014 respectively. Johnson was sentenced to 120 months in prison and eight years of supervised release on April 28, 2014.

Thursday, July 10, 2014

Kai Bird, author of The Good Spy: The Life and Death of Robert Ames, Appears Tonight on Crime Beat Radio

Kai Bird, author of The Good Spy: The Life and Death of Robert Ames, Appears Tonight on Crime Beat Radio.

April 18, 1983, a bomb exploded outside the American Embassy in Beirut, killing 63 people. The attack was a geopolitical turning point. It marked the beginning of Hezbollah as a political force, but even more important, it eliminated America’s most influential and effective intelligence officer in the Middle East – CIA operative Robert Ames. What set Ames apart from his peers was his extraordinary ability to form deep, meaningful connections with key Arab intelligence figures. Some operatives relied on threats and subterfuge, but Ames worked by building friendships and emphasizing shared values – never more notably than with Yasir Arafat’s charismatic intelligence chief and heir apparent Ali Hassan Salameh (aka “The Red Prince”). Ames’ deepening relationship with Salameh held the potential for a lasting peace. Within a few years, though, both men were killed by assassins, and America’s relations with the Arab world began heading down a path that culminated in 9/11, the War on Terror, and the current fog of mistrust

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. 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.

Wednesday, July 09, 2014

Two Aryan Brotherhood Gang Members Plead Guilty to Federal Racketeering Charges

Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Steven Worthey, of San Antonio, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. James Lawrence Burns, aka “Chance,” of Dallas, Texas, pleaded guilty to the same charge on July 3, 2014.

According to court documents, Worthey, Burns and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Worthey, Burns and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.

By pleading guilty to racketeering charges, Worthey and Burns admitted to being members of the ABT criminal enterprise.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.

Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 defendants have pleaded guilty.


Former New Orleans Mayor C. Ray Nagin Sentenced for Conspiracy, Bribery, Honest Services Wire Fraud, Money Laundering, and Tax Violations

The former mayor of New Orleans, C. Ray Nagin, 58, a resident of Frisco, Texas, was sentenced to serve 120 months in prison and ordered to pay $84,264 in restitution by United States District Judge Helen G. Berrigan of the Eastern District of Louisiana for conspiracy, bribery, honest services wire fraud, money laundering and tax violations, announced the U.S. Attorney’s Office for the Eastern District of Louisiana. A preliminary order of forfeiture was signed by Judge Berrigan on May 27, 2014 in the amount of $501,200.56.

Nagin served as the Mayor of New Orleans from 2002 to 2010. A federal grand jury sitting in the Eastern District of Louisiana indicted Nagin on Jan. 18, 2013. Nagin stood trial from Jan. 27, 2014, to Feb. 12, 2014 when the jury found Nagin guilty on 20 of 21 counts in the indictment.

“Given the nature and extent of former Mayor Nagin’s criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the city and its residents,” said Special Agent in Charge Michael J. Anderson of the New Orleans Field Division of the Federal Bureau of Investigation (FBI).

“In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity,” said Chief Richard Weber, IRS-Criminal Investigation. “Today’s sentence confirms that message—public servants are elected to serve the public, not benefit from the position. No one is above the law, and IRS-Criminal Investigation will continue to investigate all financial crimes which undermine the public’s confidence in its elected officials.”

“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” said Inspector General Ed Quatreveaux for the City of New Orleans. “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre and the former mayor. NOLAOIG will continue its work to root out fraud and abuse in city operations to protect the city from those who would defraud it.”

“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family and friends,” said Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”

“Our elected officials are entrusted to place the interests of the citizens above their own,” said United States Attorney Kenneth Allen Polite Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.”

Best Books of 2014! So Far



Best Books of 2014 So Far


Tuesday, July 08, 2014

Former Sheriff Mark Wayne Shumate Receives Federal Sentence for Aiding and Abetting a Convicted Felon

The former sheriff of East Carroll Parish was sentenced to three years of probation for hunting with a convicted felon who was sentenced prior to 2014 and barred from possessing a firearm, U.S. Attorney Stephanie A. Finley announced today.

Former East Carroll Parish Sheriff Mark Wayne Shumate, 52, of Lake Providence, La., was sentenced by U.S. District Judge Robert G. James for one count aiding and abetting a felon in the possession of a firearm. According to evidence presented at the guilty plea, on April 1, 2014, Shumate and the convicted felon went hunting on January 8, 2014. Shumate had full knowledge that the person accompanying him was barred from possessing and firing a firearm.

Monday, July 07, 2014

Nicodemo S. Scarfo and Salvatore Pelullo Convicted of Racketeering and Other Crimes

A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted of racketeering and other charges after a six-month trial, U.S. Attorney Paul J. Fishman for the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.

Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice. Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.

“Today, four people stand convicted for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney Fishman said. “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”

“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” Assistant Attorney General Caldwell said. “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”

The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court. The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden. It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.

Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.

According to documents filed in this case and the evidence at trial:

Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family. In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr. As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.

In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.

Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements. The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.

In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive. This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG. At the time of his death, he was a member of FPFG’s “compliance team.” Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.” Scarfo replied: “Oh boy. Yeah, Sal, you wanna know something though? That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing. You know what I mean? That is so like Enron-ish. You know what I mean? Kenneth Lay, he bailed out and took a heart attack.”

Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife. As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.

The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine; the RICO conspiracy, wire fraud conspiracy, wire fraud, conspiracy to obstruct justice counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit money laundering and felon in possession of a weapon counts each carry a maximum potential penalty of 10 years in prison and a $250,000 fine; the securities fraud conspiracy, conspiracy to make false statements in a loan application and conspiracy to transfer firearms to a prohibited person counts each carry a maximum potential penalty of five years in prison and a $250,000 fine.

Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014; and for both Maxwell brothers, Oct. 23, 2014.

Sunday, July 06, 2014

Busted: A Tale of Corruption and Betrayal in the City of Brotherly Love

In the vein of Erin Brockovich, The Departed, and T. J. English's Savage City comes Busted: A Tale of Corruption and Betrayal in the City of Brotherly Love, the shocking true story of the biggest police corruption scandal in Philadelphia history, a tale of drugs, power, and abuse involving a rogue narcotics squad, a confidential informant, and two veteran journalists whose reporting drove a full-scale FBI probe, rocked the City of Brotherly Love, and earned a Pulitzer Prize .

In 2003, Benny Martinez became a Confidential Informant for a member of the Philadelphia Police Department's narcotics squad, helping arrest nearly 200 drug and gun dealers over seven years. But that success masked a dark and dangerous reality: the cops were as corrupt as the criminals they targeted.

In addition to fabricating busts, the squad systematically looted mom-and-pop stores, terrorizing hardworking immigrant owners. One squad member also sexually assaulted three women during raids. Frightened for his life, Martinez turned to Philadelphia Daily News reporters Wendy Ruderman and Barbara Laker.

Busted chronicles how these two journalists—both middle-class working mothers—formed an unlikely bond with a convicted street dealer to uncover the secrets of ruthless kingpins and dirty cops. Professionals in an industry shrinking from severe financial cutbacks, Ruderman and Laker had few resources—besides their own grit and tenacity—to break a dangerous, complex story that would expose the rotten underbelly of a modern American city and earn them a Pulitzer Prize. A page-turning thriller based on superb reportage, illustrated with eight pages of photos, Busted is modern true crime at its finest.

Saturday, July 05, 2014

Details of Russell Adler Sentencing in Connection with Rothstein Campaign Finance Fraud Case

Russell S. Adler, 52, of Ft. Lauderdale, was sentenced by United States District Judge James I. Cohn to 30 months’ imprisonment, to be followed by two years’ supervised release in connection with his conviction for one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. The defendant was a shareholder of the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).

During his April 4, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, RRA Chairman and CEO Scott W. Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.

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