Joseph "the Clown" Lombardo was at a workbench in his small Near West Side shop, where masonry saws and tools are sharpened, when 10 federal agents swarmed in. One agent waved a grand jury warrant, another carried a cotton swab. The agents dabbed the inside of Lombardo's mouth with the swab--gathering DNA--and were gone in less than two minutes.
Lombardo, a longtime Chicago Outfit leader who publicly swore off his mob ties after being released from prison in 1992, is one of more than a dozen mob bosses and associates who are subjects of a new federal probe into long-dormant mob murders, some dating as far back as three decades.
A federal grand jury is investigating at least 16 unsolved killings, making it one of the biggest law-enforcement strikes against organized crime in Chicago history. Sources close to the investigation--dubbed Operation Family Secrets--and attorneys for some of the alleged mob members say they expect the grand jury to hand up indictments as early as next month.
Convictions on this scale would be unprecedented. The Chicago Crime Commission counts 1,111 Chicago-area gangland slayings since 1919, but only 14 have ended in murder convictions and three cases were cleared when the suspected killers were murdered before being arrested, according to the commission. The crime commission is a non-profit group of civic leaders that aim to improve public safety.
Prosecutors not only have new DNA technology drawing out evidence from old cases but also have cooperating witnesses, including at least one member of the notorious 26th Street Crew, sources said. Nick Calabrese, a high-ranking crew member, spent years in a Michigan federal prison before turning informant and fingering past associates in several murders, according to sources.
Working on the tips, federal investigators have fanned out across the Chicago area, swabbing more than 30 known Outfit associates for DNA samples to try to link them to some of the area's most notorious gangland slayings.
Like the 1974 murder of Daniel Seifert. Scheduled to testify against Lombardo and other Outfit members in a Teamsters pension loan fraud case, Seifert was slain by shotgun blasts by ski-masked men outside his Bensenville plastics factory as his wife and 4-year-old son watched.
Federal prosecutors hope DNA from a hair strand lifted from one of the ski masks found under a getaway car in that case could link Lombardo to the crime scene.
Though the investigation has focused heavily on the 26th Street Crew, investigators have tossed a wide net, hoping to snare members of different crews in cases ranging from the 1970 disappearance of Michael Frank "Bones" Albergo, a 220-pound organized crime muscleman, to the 1986 murder of Anthony Spilotro, the Outfit's man in Las Vegas who fell out of favor with his bosses. He and his brother, Michael Spilotro, were beaten and buried in an Indiana cornfield. Dust and sand found in their lungs indicated they had been buried alive, officials said.
Besides Lombardo, other mob associates that agents are investigating include John "No Nose" DiFronzo and Jimmy Marcello, considered two of the Outfit's top-ranking bosses, a source familiar with the investigation said. "It's a pretty massive investigation from the stuff I'm hearing," said Rick Halprin, Lombardo's attorney. Halprin said Lombardo, now 75, was at a Chicago police station reporting a stolen wallet at the time of the Seifert murder.
Albergo, an alleged loan shark for the mob, was scheduled to stand trial on charges of criminal usury and conspiracy when he disappeared in September 1970. Authorities at the time speculated he may have been killed for not realizing he was making illegal loans to an undercover Chicago policeman.
In 2003, Albergo's name resurfaced when FBI agents excavated an edge of the parking lot at U.S. Cellular Field, reportedly looking for his bones, sources said. Calabrese led authorities to the site, the sources said.
Two other murders expected on the indictment are those of William Dauber and Charlotte Dauber, who were gunned down by rifle and shotgun blasts in a car chase on a rural Will County road in 1980. The couple's bodies were found sprawled across the front seat of their Oldsmobile, with three of its windows blown out and its front end crushed against a tree. William Dauber, a reputed Outfit hit man who authorities believed was responsible for more than 30 slayings, had been arrested on federal drug charges and mob leaders feared he would turn informant.
One of the more notorious slayings expected on the indictment is that of Anthony Spilotro. The Outfit's enforcer in Las Vegas, Spilotro had angered his bosses by indulging in a series of burglaries, dope deals and murders that brought unwanted federal attention.
In June 1986, the Spilotro brothers made national headlines when a farmer discovered their bodies in the Indiana cornfield. The pair had been badly beaten and stripped to their underwear before being buried alive. (The scene would be reproduced in the 1995 film "Casino.") Three months later, John Fecarotta, a longtime muscleman for the 26th Street Crew, was shot to death in a doorway of a bingo hall on West Belmont Avenue. Informants said he was killed for botching the burials of the Spilotro brothers, according to court documents.
Such violent tasks--beatings, murders, torture and disappearances--many times fell to the 26th Street Crew, believed by federal authorities to be the Outfit's enforcement arm and expected to bear the brunt of the upcoming indictment.
The crew's strong ties to Outfit leaders and its violent reputation made it the top choice of mob bosses for carrying out killings, said Robert Whisman, an FBI agent who investigated the 26th Street Crew from 1984 to 1993.
"When [Outfit bosses] needed someone killed, they called people they trusted," said Whisman, now an agent with the FBI's Kansas City office. "They needed people who couldn't talk on them because they had already killed people. There were several people from the 26th Street Crew who had killed people. They were the logical choice."
Led by street captains such as Angelo "the Hook" LaPietra and John "Johnny Apes" Monteleone, the 26th Street Crew--one of six street crews that investigators say operate as part of the Chicago Outfit--prowled a territory south of the Eisenhower Expressway that included Chinatown's gambling dens and South Side auto chop shops.
The 26th Street Crew--also known as the "Chinatown Crew" or "South Side Crew"--emerged in the 1950s and flourished through the '60s and '70s, collecting a cut of revenues from the area's storage and trucking companies, railroad depots, junkyards and chop shops, or auto yards that dismantle stolen cars. Crew bosses reported to and delivered a percentage of all revenue to Chicago's head mob boss at the time.
Truck hijackings and cartage thefts were common, said Vincent Inserra, who headed the organized crime squad of the Chicago FBI office from the early 1960s to the mid-'70s. "They were known for bombings," he said. "Not necessarily to kill people. But if they wanted to put fear into the hearts of people, that would do it."
Gambling made the 26th Street Crew big money and established it as a vital spoke in the Outfit wheel, according to court documents and federal agents. Headed by Frank "Skids" Caruso from the late 1950s through the 1970s, the crew set up illegal backroom betting parlors to take wagers on everything from horse races to Chicago Bears games and doled out "juice loans," where money is lent at extortionate rates.
If a gambler couldn't cover his loss, the crew would offer him a juice loan to pay it back, said Jack O'Rourke, a former FBI agent who monitored the 26th Street Crew for more than 10 years. If he fell behind on juice payments, it meant baseball-bat beatings, torture or death, O'Rourke said.
The 26th Street Crew was also responsible for Chinatown, located just blocks north on Wentworth Avenue. Using Asian liaisons such as Joe Wing and Ken Eto and their own enforcers, the crew collected a cut of the action from the illegal Fan Tan and Maj Jong games operating behind the neighborhood's storefronts.
When Asian heroin flooded Chicago's Chinatown in the 1970s and '80s, the crew took a piece of profits as well, charging dealers and helping to enforce payments without dealing directly in the drugs, court records show.
Under LaPietra, the crew's boss in the 1980s, the epicenter for the crew became the Old Neighborhood Italian-American Club, at its former location of 26th Street and Princeton Avenue. Crew bosses and enforcers dropping off payments would enter under the "Members Only" sign over the door and discuss dealings or join illicit crap games in the back room.
LaPietra's nickname, "the Hook," came from his reputation for hanging enemies from meat hooks while torturing them to death. Standing just 5-foot, 5-inches with thick glasses and heavy-lidded eyes, LaPietra was beloved in his neighborhood. He invested in community projects and held a block party every summer. But behind the cheery benevolence simmered a world of violence, and the mob hit no one harder than its own.
When mob bosses suspected that William "Butch" Petrocelli, an up-and-coming mob thug, had skimmed collection money and shaken down a group of robbers without permission, they resolved to teach him a lesson, court documents say. According to a federal informant, Petrocelli was called to a meeting in December 1980, questioned, tortured and murdered. His body was found three months later wrapped in a sleeping bag in the backseat of his car on a Southwest Side street. His face had been charred with an acetylene torch. Later, according to court documents, an informant told agents the 26th Street Crew had been involved and LaPietra had done the actual killing.
Chicago went without an apparent Outfit hit for at least five years in the late 1990s, until Ronald Jarrett, a reputed lieutenant in the South Side Crew and friend of Nick Calabrese, was shot as he walked to his car in front of his Bridgeport home on Dec. 23, 1999. He died about a month later.
The Jarrett slaying, which sources said will be part of the indictment, could implicate a number of high-ranking mob associates because of the enemies Jarrett had earned within the Outfit. Known as one of the syndicate's more vicious thugs, Jarrett had a penchant for assaulting police officers and for luring women away from men at bars, O'Rourke said.
Around the time he was shot, Jarrett had been clashing with other Outfit members, including top leaders of the 26th Street Crew, he said. "Everyone hated him," O'Rourke said. "When he was killed, we had more suspects than we could count."
In recent years, investigators say the crew has been headed by Frank "Toots" Caruso (Skid Caruso's son and a nephew of the late Ald. Fred Roti, who was convicted of federal racketeering and extortion charges in 1993) and Frank Calabrese and Nick Calabrese, according to federal sources.
Caruso, his brother Bruno and other Outfit members had also infiltrated the Laborers unions in Chicago and its district council that controlled a billion-dollar union pension fund, according to testimony at federally monitored union hearings. After prompting from federal prosecutors and reformers in the union, union leaders removed them from their locals.
As its leaders have lost their previous jobs in unions and government, law enforcement officials said the 26th Street Crew today has become a lot less visible--though still operative--organization.
LaPietra died in 1999 of natural causes after serving 11 years in a federal prison for skimming money from a Las Vegas casino.
Yeong Shun Video and DVDs now occupies the storefront of the former Old Neighborhood Italian-American Club. New riverboat casinos have stolen a lot of the bookies' business and the last-known gangland murder occurred in November 2001, when Anthony "the Hatch" Chiaramonti, a 26th Street associate, was shot outside Brown's Chicken & Pasta in Lyons.
Enforcement officials said much of the Outfit, including the 26th Street Crew, have become more sophisticated, investing in legitimate businesses and curbing their violent impulses. But some habits--threatening competitors, leaning on customers, pulling political connections--still linger, officials said. "The minute things get tough, when business starts slipping," said one longtime Outfit investigator, "they go back to their old ways."
Thanks to Rick Jervis, Liam Ford, Ray Gibson and Art Barnum
Sunday, January 23, 2005
Sunday, January 25, 2004
Mob Ties Run throughout City Truck Program
When the FBI was trying to bring down the mob's 26th Street crew two decades ago, it was investigating men such as Chicago Alderman Fred Roti, his nephew, trucking magnate Fred Barbara, and Mickey "Gorilla" Gurgone, a city worker and noted safecracker.
Today, many of those men or their families are linked to trucking firms that get a big cut of a $40 million annual City of Chicago program where nothing goes out to bid. Business is done with a handshake, without any contracts.
Nick "The Stick" LoCoco was arrested in 1986 on a gambling charge which was later thrown out. At the time of his arrest, he was a city foreman overseeing truck drivers. He rose to be the city's official point man in the Transportation Department for the Hired Truck Program. Indeed, nearly one out of every 10 trucking firms in the city's Hired Truck Program is either owned by alleged mobsters or Outfit associates or by family members, often women, of reputed mob figures, the Sun-Times found.
Robert Cooley, a former mob attorney who cooperated with federal authorities to destroy the Outfit, has told authorities that organized crime in the 1970s and 1980s controlled what is now called the Hired Truck Program. The late Alderman Roti, a made member of the mob, had influence over the program, Cooley has said.
The trucking companies often operate out of the owners' homes, and several lease a single dump truck to the city along with a driver. The firms are paid typically $40 an hour and up.
Trucking companies wanting work in the program for the city's transportation department had to deal with city employee Nick "The Stick" LoCoco, a reputed juice collector and bookie. Mayor Daley's administration put LoCoco in charge of hiring trucks for the no-bid program from 1994 until July 2002 when LoCoco retired.
When the Sun-Times told Daley's budget director, William Abolt, about its findings about the truck program and the mob, he said he was not at all surprised. Abolt is responsible for the Hired Truck Program. "It's something you find in trucking," he said. "I can't say that I'm shocked that you found connections to organized crime in the trucking industry."
"You need better standards for people coming in. There was far too much informality, far too much discretion, as to not enough things written down, how do people get in, how do they get kicked out, how they get put on probation," Abolt said, vowing reform.
The Daley administration is no stranger to embarrassing brushes with the Outfit. Last year, two members of the Duff family were indicted on charges they set up false minority- and women-owned firms to get $100 million worth of work. Family members have alleged ties to organized crime and are longtime political supporters of the mayor.
In 1995, the Daley administration backtracked on a $5.5 million loan to an allegedly mobbed-up deal for a movie studio project on the West Side.
Here are snapshots of some of the men with links to firms in the Hired Truck Program and the Outfit.
MICHAEL ‘THE GORILLA’ GURGONE: Gurgone drove a truck for Streets and Sanitation while moonlighting as a top-notch safecracker, authorities say. For more than 25 years, Michael "The Gorilla" Gurgone drove a truck for Streets and Sanitation while moonlighting as a top-notch safecracker, authorities say.
Gurgone, 67, of the South Side, has a history of arrests but only one significant conviction for a botched $600,000 heist at Balmoral Race Track in 1983.
Gurgone and another man were sitting outside in a vehicle, keeping a lookout for the cops, while their partners were inside, subduing the security guards. But the heist fell apart when a fresh shift of security guards arrived, and the burglars fled.
The men got busted years later when Duke Basile and Paul "Peanuts" Panczko, two men involved in the case, wound up squealing to federal agents. Gurgone was eventually convicted. Gurgone got seven years for the botched burglary, the first time he was convicted. It was a stiffer-than-normal sentence because the federal judge determined that Gurgone had spent much of his life as a burglar.
Gurgone is the brother-in-law of Carmen Schadt Gurgone, the president of Schadt's Trucking, which is in the Hired Truck Program.
Records show Schadt's was set up with the help of a man named Michael Gurgone who lived in the South Side Mount Greenwood neighborhood. It's the same address as the convicted burglar named Michael Gurgone, who has alleged ties to the mob, according to federal authorities. But Gurgone, the burglar, insisted in an interview he was not the Gurgone who helped create Schadt's. "I don't know nothing about it," the burglar said.
Carmen Schadt said in a written response that her company was created with the help of her nephew, Michael Gurgone, a CPA. He is the burglar's son and namesake.
The city paid Schadt's Inc. $396,562 for the first 10 months of 2003 in the Hired Truck Program, records show.
Schadt's is among many firms the city has designated as both a disadvantaged business and female-owned. The city certified Schadt's as a disadvantaged business because it is owned by a woman and it makes less than $17 million annually. So whenever the city hires trucks from Schadt's, it helps the Daley administration meet its goals to set aside business for disadvantaged and female-owned firms.
Schadt's leases eight trucks from Michael Tadin, whose firms make more money than any other in the Hired Truck Program. Tadin is a longtime political supporter of the mayor and grew up in the same neighborhood. Schadt's pays Tadin 88 percent of what those trucks gross, state records show. Schadt's and Tadin say those trucks are not used in the city Hired Truck Program.
After Michael Gurgone got out of jail for the botched Balmoral burglary, he got a job as a truck driver with Tadin's Marina Cartage, police records show. Gurgone said he still works for Tadin.
Out of Schadt's came another female-owned firm owned by a Gurgone, Rhonda Vasquez-Gurgone. She created her company, STR Enterprises, in August 2001, while she was a dispatcher for Schadt's. The growth of her business has been remarkable.
In 2001, when her business started, she made $3,000 from private business, records show. The next year, STR took in a total of $438,949, including about $117,000 from the Hired Truck Program. STR got into the program that year. Last year, the city paid STR $132,875 during the first 10 months, according to the most recent figures.
JAMES INENDINO: Jimmy Inendino’s JMS Trucking firm was approved for the program seven months after he was convicted of ripping off the Town of Cicero in a kickback scheme. Another Outfit figure, once described as a whiz at stealing stuff off trucks, owns a trucking firm that got into the Hired Truck Program.
James "Jimmy I" Inendino has been linked to planning at least one murder and threatening to kill debtors who are behind in their juice loan payments. But his most recent criminal conviction would seem to make him an unusual candidate for the program.
In March 2002, Inendino was convicted with the reputed Cicero mob boss and the town's crooked police chief in a kickback scheme to rip off the town. Inendino is now serving 6 1/2 years behind bars.
While he was awaiting trial, federal prosecutors tried to revoke his bond when they alleged he bribed a city building inspector, with $1,000 tucked inside a Chicago Sun-Times, for occupancy permits for town homes Inendino was building in Little Italy.
Despite that highly publicized background, Inendino's firm, JMS Trucking, got into the Hired Truck Program in November 2002, after he had been convicted. That's despite city rules that can ban from the program people who have been convicted of bribery or other crimes involving the government. City records show Inendino operated the business out of his Darien home. JMS has taken in about $3,200 from the Hired Truck Program. The city just started using JMS last year, after Inendino was convicted.
Inendino, a convicted loan shark, has a history of threatening to hurt people. When one debtor didn't pay up $250, Inendino, who has been investigated by the FBI and IRS, warned that the man "will never ride a . . . horse the rest of his life."
When another man failed to make his payment, Inendino told a colleague to tell the man "he doesn't owe anything, because when I see him, and I am going to see him, I'm going to break his f------ head."
One of Inendino's friends is Harry Aleman, the infamous hit man who was sentenced to 100 to 300 years in prison for a murder in which he was originally acquitted because the Outfit bribed the judge in the case, authorities said.
Aleman, Inendino and another partner in crime, Louis Almeida, planned the murder of a fourth associate, Robert William Harder, but the hit didn't go through because they couldn't find him, according to a federal judge's ruling.
Another Inendino friend, Greg Paloian, a convicted bookmaker, also found a sideline in the Hired Truck Program, with his firm Ruff Edge Inc.
Like Inendino, Paloian ran a small trucking company out of his home in Elmwood Park. The money came at a good time for Paloian. He was indicted in January 2001 on bookmaking charges, the same year the city began hiring about five trucks from him. That year, the city paid Paloian about $182,800.
In March 2002, Paloian pleaded guilty in the case and later was sentenced to nearly 3-1/2 years in prison in July in an IRS case. His company was paid nearly $181,500 by the city in 2002. The city stopped using Paloian's trucks after he went to prison.
ROBERT COOLEY AND FRED ROTI: Robert Cooley, a onetime mob attorney, maintains that the late Alderman Fred Roti, a made member of the mob, had influence over the Hired Truck Program. Family members of the late Chicago Ald. Fred Roti have one of the most extensive networks of trucking firms in the program.
Roti was convicted of extortion and racketeering and was called a "made member" of the mob by the FBI. He was also accused of packing the city's Streets and Sanitation Department with mob members and associates. He died in 1999 after serving a four-year prison sentence.
Roti's family members are linked to six companies in the Hired Truck Program, two of them certified as female-owned firms.
One nephew, Frank Roti, has three family members who each have trucking companies in the program. In turn, all three companies lease trucks from a firm owned by Frank Roti, city records show.
One of those three companies, Miffy Trucking, is owned by his daughter, Mary. There are no state or city records showing that Miffy owns any trucks. The firm leases its fleet from FMR Leasing, the firm owned by Mary's father. The city has certified Miffy as both a female-owned business and a disadvantaged business. Miffy, which was created in 1996, is one of the top firms in the Hired Truck Program, making $447,058 for the first 10 months in 2003, city records show.
Together, the Frank Roti family firms were paid about $1.4 million in 2002, trailing only Tadin's companies as the top earners in the program.
Another nephew of the late alderman, businessman Fred Barbara, has a father, wife and mother-in-law with firms in the Hired Truck Program.
Fred Barbara, 56, once owned a huge trucking firm that did business with the city, but he sold it several years ago. His wife, Lisa Humbert, owns Karen's Kartage, a firm she started in 1986 when she was Fred Barbara's secretary at his trucking company. The city paid Karen's Kartage more than $520,000 in 2002.
Fred Barbara says his brother now runs Karen's Kartage, not his wife, and it's no longer certified as a female-owned firm.
Fred Barbara's mother-in-law, Geraldine Humbert, owns a small trucking company that has been in the Hired Truck Program since 1999. She has hired out one truck and driver to the city for $38,720 during the first 10 months of the year.
Fred Barbara's father, Anthony, has one truck in the program.
Fred Barbara owned his trucking company when he was arrested on loansharking charges in 1982 along with Joseph "Shorty'' Lamantia, then a reputed top aide to mob boss Angelo "The Hook'' LaPietra. Also arrested were LaMantia's adopted son, Aldo Piscitelli Jr., and Barbara's cousin, Frank Caruso, another Roti nephew. Caruso's father was the reputed mob boss of Chinatown; his son Frank was convicted in the beating of Lenard Clark, a black teen who was riding his bike through Bridgeport.
Fred Barbara and the others were accused of trying to collect a $20,000 juice loan from an undercover FBI agent posing as a commodities broker. Barbara and his co-defendants were acquitted.
Barbara said those allegations are more than 20 years old and are "old news." "Show me my connection to organized crime. Did I turn the corner? You show me anything in the last 24 years that reflects to that nature," Barbara said.
Carl Galione, an associate of LaPietra's former bodyguard and driver, Ronald Jarrett, owns one company in the Hired Truck Program, while his daughter owns another. Both companies share common addresses on Chicago's Southwest Side and in Downers Grove.
Galione's company, CPS Trucking, started leasing trucks to the city in 2001. The following year, his daughter's company entered the Hired Truck Program.
Galione and Jarrett were indicted on charges of rape and kidnapping in 1980, but a Cook County judge found them not guilty.
Galione, 54, spent six months in a federal prison in 1997 after he pleaded guilty to income tax evasion.
Galione said he was a childhood friend of Jarrett's but that they went their separate ways. When asked if he had any ties to organized crime, Galione laughed and said: "I've got ties to my shoes."
Other companies owned by relatives of organized crime figures also provide trucks to the city:
*Andrich Trucking is owned by Donald Andrich, also known as Donald Andriacchi. He is a nephew of Joseph "Joe the Builder" Andriacchi, who authorities say is a reputed top crime boss. The city has done business with Andrich Trucking for decades.
*Chica Trucking is owned by Patricia Cortez, sister-in-law of Chris Spina, a former city worker once fired for chauffeuring reputed mob boss Joseph "the Clown'' Lombardo on city time. Spina later got his job back. Cortez started hiring out trucks to the city water department in November 2002.
The city paid Greg Paloian about $182,800 for trucks in 2001, the same year he was indicted on bookmaking charges.
Thanks to STEVE WARMBIR AND TIM NOVAK
Today, many of those men or their families are linked to trucking firms that get a big cut of a $40 million annual City of Chicago program where nothing goes out to bid. Business is done with a handshake, without any contracts.
Nick "The Stick" LoCoco was arrested in 1986 on a gambling charge which was later thrown out. At the time of his arrest, he was a city foreman overseeing truck drivers. He rose to be the city's official point man in the Transportation Department for the Hired Truck Program. Indeed, nearly one out of every 10 trucking firms in the city's Hired Truck Program is either owned by alleged mobsters or Outfit associates or by family members, often women, of reputed mob figures, the Sun-Times found.
Robert Cooley, a former mob attorney who cooperated with federal authorities to destroy the Outfit, has told authorities that organized crime in the 1970s and 1980s controlled what is now called the Hired Truck Program. The late Alderman Roti, a made member of the mob, had influence over the program, Cooley has said.
The trucking companies often operate out of the owners' homes, and several lease a single dump truck to the city along with a driver. The firms are paid typically $40 an hour and up.
Trucking companies wanting work in the program for the city's transportation department had to deal with city employee Nick "The Stick" LoCoco, a reputed juice collector and bookie. Mayor Daley's administration put LoCoco in charge of hiring trucks for the no-bid program from 1994 until July 2002 when LoCoco retired.
When the Sun-Times told Daley's budget director, William Abolt, about its findings about the truck program and the mob, he said he was not at all surprised. Abolt is responsible for the Hired Truck Program. "It's something you find in trucking," he said. "I can't say that I'm shocked that you found connections to organized crime in the trucking industry."
"You need better standards for people coming in. There was far too much informality, far too much discretion, as to not enough things written down, how do people get in, how do they get kicked out, how they get put on probation," Abolt said, vowing reform.
The Daley administration is no stranger to embarrassing brushes with the Outfit. Last year, two members of the Duff family were indicted on charges they set up false minority- and women-owned firms to get $100 million worth of work. Family members have alleged ties to organized crime and are longtime political supporters of the mayor.
In 1995, the Daley administration backtracked on a $5.5 million loan to an allegedly mobbed-up deal for a movie studio project on the West Side.
Here are snapshots of some of the men with links to firms in the Hired Truck Program and the Outfit.
MICHAEL ‘THE GORILLA’ GURGONE: Gurgone drove a truck for Streets and Sanitation while moonlighting as a top-notch safecracker, authorities say. For more than 25 years, Michael "The Gorilla" Gurgone drove a truck for Streets and Sanitation while moonlighting as a top-notch safecracker, authorities say.
Gurgone, 67, of the South Side, has a history of arrests but only one significant conviction for a botched $600,000 heist at Balmoral Race Track in 1983.
Gurgone and another man were sitting outside in a vehicle, keeping a lookout for the cops, while their partners were inside, subduing the security guards. But the heist fell apart when a fresh shift of security guards arrived, and the burglars fled.
The men got busted years later when Duke Basile and Paul "Peanuts" Panczko, two men involved in the case, wound up squealing to federal agents. Gurgone was eventually convicted. Gurgone got seven years for the botched burglary, the first time he was convicted. It was a stiffer-than-normal sentence because the federal judge determined that Gurgone had spent much of his life as a burglar.
Gurgone is the brother-in-law of Carmen Schadt Gurgone, the president of Schadt's Trucking, which is in the Hired Truck Program.
Records show Schadt's was set up with the help of a man named Michael Gurgone who lived in the South Side Mount Greenwood neighborhood. It's the same address as the convicted burglar named Michael Gurgone, who has alleged ties to the mob, according to federal authorities. But Gurgone, the burglar, insisted in an interview he was not the Gurgone who helped create Schadt's. "I don't know nothing about it," the burglar said.
Carmen Schadt said in a written response that her company was created with the help of her nephew, Michael Gurgone, a CPA. He is the burglar's son and namesake.
The city paid Schadt's Inc. $396,562 for the first 10 months of 2003 in the Hired Truck Program, records show.
Schadt's is among many firms the city has designated as both a disadvantaged business and female-owned. The city certified Schadt's as a disadvantaged business because it is owned by a woman and it makes less than $17 million annually. So whenever the city hires trucks from Schadt's, it helps the Daley administration meet its goals to set aside business for disadvantaged and female-owned firms.
Schadt's leases eight trucks from Michael Tadin, whose firms make more money than any other in the Hired Truck Program. Tadin is a longtime political supporter of the mayor and grew up in the same neighborhood. Schadt's pays Tadin 88 percent of what those trucks gross, state records show. Schadt's and Tadin say those trucks are not used in the city Hired Truck Program.
After Michael Gurgone got out of jail for the botched Balmoral burglary, he got a job as a truck driver with Tadin's Marina Cartage, police records show. Gurgone said he still works for Tadin.
Out of Schadt's came another female-owned firm owned by a Gurgone, Rhonda Vasquez-Gurgone. She created her company, STR Enterprises, in August 2001, while she was a dispatcher for Schadt's. The growth of her business has been remarkable.
In 2001, when her business started, she made $3,000 from private business, records show. The next year, STR took in a total of $438,949, including about $117,000 from the Hired Truck Program. STR got into the program that year. Last year, the city paid STR $132,875 during the first 10 months, according to the most recent figures.
JAMES INENDINO: Jimmy Inendino’s JMS Trucking firm was approved for the program seven months after he was convicted of ripping off the Town of Cicero in a kickback scheme. Another Outfit figure, once described as a whiz at stealing stuff off trucks, owns a trucking firm that got into the Hired Truck Program.
James "Jimmy I" Inendino has been linked to planning at least one murder and threatening to kill debtors who are behind in their juice loan payments. But his most recent criminal conviction would seem to make him an unusual candidate for the program.
In March 2002, Inendino was convicted with the reputed Cicero mob boss and the town's crooked police chief in a kickback scheme to rip off the town. Inendino is now serving 6 1/2 years behind bars.
While he was awaiting trial, federal prosecutors tried to revoke his bond when they alleged he bribed a city building inspector, with $1,000 tucked inside a Chicago Sun-Times, for occupancy permits for town homes Inendino was building in Little Italy.
Despite that highly publicized background, Inendino's firm, JMS Trucking, got into the Hired Truck Program in November 2002, after he had been convicted. That's despite city rules that can ban from the program people who have been convicted of bribery or other crimes involving the government. City records show Inendino operated the business out of his Darien home. JMS has taken in about $3,200 from the Hired Truck Program. The city just started using JMS last year, after Inendino was convicted.
Inendino, a convicted loan shark, has a history of threatening to hurt people. When one debtor didn't pay up $250, Inendino, who has been investigated by the FBI and IRS, warned that the man "will never ride a . . . horse the rest of his life."
When another man failed to make his payment, Inendino told a colleague to tell the man "he doesn't owe anything, because when I see him, and I am going to see him, I'm going to break his f------ head."
One of Inendino's friends is Harry Aleman, the infamous hit man who was sentenced to 100 to 300 years in prison for a murder in which he was originally acquitted because the Outfit bribed the judge in the case, authorities said.
Aleman, Inendino and another partner in crime, Louis Almeida, planned the murder of a fourth associate, Robert William Harder, but the hit didn't go through because they couldn't find him, according to a federal judge's ruling.
Another Inendino friend, Greg Paloian, a convicted bookmaker, also found a sideline in the Hired Truck Program, with his firm Ruff Edge Inc.
Like Inendino, Paloian ran a small trucking company out of his home in Elmwood Park. The money came at a good time for Paloian. He was indicted in January 2001 on bookmaking charges, the same year the city began hiring about five trucks from him. That year, the city paid Paloian about $182,800.
In March 2002, Paloian pleaded guilty in the case and later was sentenced to nearly 3-1/2 years in prison in July in an IRS case. His company was paid nearly $181,500 by the city in 2002. The city stopped using Paloian's trucks after he went to prison.
ROBERT COOLEY AND FRED ROTI: Robert Cooley, a onetime mob attorney, maintains that the late Alderman Fred Roti, a made member of the mob, had influence over the Hired Truck Program. Family members of the late Chicago Ald. Fred Roti have one of the most extensive networks of trucking firms in the program.
Roti was convicted of extortion and racketeering and was called a "made member" of the mob by the FBI. He was also accused of packing the city's Streets and Sanitation Department with mob members and associates. He died in 1999 after serving a four-year prison sentence.
Roti's family members are linked to six companies in the Hired Truck Program, two of them certified as female-owned firms.
One nephew, Frank Roti, has three family members who each have trucking companies in the program. In turn, all three companies lease trucks from a firm owned by Frank Roti, city records show.
One of those three companies, Miffy Trucking, is owned by his daughter, Mary. There are no state or city records showing that Miffy owns any trucks. The firm leases its fleet from FMR Leasing, the firm owned by Mary's father. The city has certified Miffy as both a female-owned business and a disadvantaged business. Miffy, which was created in 1996, is one of the top firms in the Hired Truck Program, making $447,058 for the first 10 months in 2003, city records show.
Together, the Frank Roti family firms were paid about $1.4 million in 2002, trailing only Tadin's companies as the top earners in the program.
Another nephew of the late alderman, businessman Fred Barbara, has a father, wife and mother-in-law with firms in the Hired Truck Program.
Fred Barbara, 56, once owned a huge trucking firm that did business with the city, but he sold it several years ago. His wife, Lisa Humbert, owns Karen's Kartage, a firm she started in 1986 when she was Fred Barbara's secretary at his trucking company. The city paid Karen's Kartage more than $520,000 in 2002.
Fred Barbara says his brother now runs Karen's Kartage, not his wife, and it's no longer certified as a female-owned firm.
Fred Barbara's mother-in-law, Geraldine Humbert, owns a small trucking company that has been in the Hired Truck Program since 1999. She has hired out one truck and driver to the city for $38,720 during the first 10 months of the year.
Fred Barbara's father, Anthony, has one truck in the program.
Fred Barbara owned his trucking company when he was arrested on loansharking charges in 1982 along with Joseph "Shorty'' Lamantia, then a reputed top aide to mob boss Angelo "The Hook'' LaPietra. Also arrested were LaMantia's adopted son, Aldo Piscitelli Jr., and Barbara's cousin, Frank Caruso, another Roti nephew. Caruso's father was the reputed mob boss of Chinatown; his son Frank was convicted in the beating of Lenard Clark, a black teen who was riding his bike through Bridgeport.
Fred Barbara and the others were accused of trying to collect a $20,000 juice loan from an undercover FBI agent posing as a commodities broker. Barbara and his co-defendants were acquitted.
Barbara said those allegations are more than 20 years old and are "old news." "Show me my connection to organized crime. Did I turn the corner? You show me anything in the last 24 years that reflects to that nature," Barbara said.
Carl Galione, an associate of LaPietra's former bodyguard and driver, Ronald Jarrett, owns one company in the Hired Truck Program, while his daughter owns another. Both companies share common addresses on Chicago's Southwest Side and in Downers Grove.
Galione's company, CPS Trucking, started leasing trucks to the city in 2001. The following year, his daughter's company entered the Hired Truck Program.
Galione and Jarrett were indicted on charges of rape and kidnapping in 1980, but a Cook County judge found them not guilty.
Galione, 54, spent six months in a federal prison in 1997 after he pleaded guilty to income tax evasion.
Galione said he was a childhood friend of Jarrett's but that they went their separate ways. When asked if he had any ties to organized crime, Galione laughed and said: "I've got ties to my shoes."
Other companies owned by relatives of organized crime figures also provide trucks to the city:
*Andrich Trucking is owned by Donald Andrich, also known as Donald Andriacchi. He is a nephew of Joseph "Joe the Builder" Andriacchi, who authorities say is a reputed top crime boss. The city has done business with Andrich Trucking for decades.
*Chica Trucking is owned by Patricia Cortez, sister-in-law of Chris Spina, a former city worker once fired for chauffeuring reputed mob boss Joseph "the Clown'' Lombardo on city time. Spina later got his job back. Cortez started hiring out trucks to the city water department in November 2002.
The city paid Greg Paloian about $182,800 for trucks in 2001, the same year he was indicted on bookmaking charges.
Thanks to STEVE WARMBIR AND TIM NOVAK
Friday, November 21, 2003
Former FBI Agent Arrested in Mob Hit
A former FBI agent who handled high-ranking mob informants was arrested Thursday and charged with murder for allegedly helping to set up a 1981 mob hit on an Oklahoma businessman.
H. Paul Rico, 78, was arrested at his home near Miami in the slaying of 55-year-old Roger Wheeler, who was shot in the head at a Tulsa, Okla., country club after a round of golf.
Rico's arrest was the latest turn in a long-running scandal over the cozy relationship between the Boston FBI and its underworld informants. Last year, a former FBI agent was convicted of protecting gangsters, including James “Whitey” Bulger, who is on the FBI's 10 Most Wanted list.
Investigators said Wheeler's slaying was linked to his purchase of World Jai Alai and his suspicion that money was being skimmed from the Florida company. At the time, Rico was retired from the FBI and was the head of security for World Jai Alai.
Investigators said Rico provided John Martorano, a hit man for Boston's Winter Hill Gang, with information on Wheeler's schedule so he could be killed. Martorano admitted pulling the trigger and is awaiting sentencing.
The New York Times reported that Rico asked Martorano to carry out the hit because gang members believed Wheeler had learned $1 million a year was being skimmed from the jai alai operation.
Rico “flat-out categorically denies this,” said his attorney, William Cagney III. “He never assisted the Winter Hill Gang in trying to get inside information so they could ... do away with people.”
Rico was jailed in Florida. Gail Marcinkiewicz, a spokeswoman for the Boston FBI, declined to comment. Rico spent 24 years with the FBI, specializing in organized crime cases in Boston in the 1960s and '70s. He cultivated mobster Stephen “The Rifleman” Flemmi and others as informants.
Bulger, the boss of the Winter Hill Gang, Flemmi and Martorano were all charged in Wheeler's murder in 2001 by Oklahoma prosecutors. District Attorney Tim Harris of Tulsa has said he planned to seek the death penalty against Bulger and Flemmi.
Prosecutors in Florida followed with an indictment charging all three in the 1982 slaying of World Jai Alai executive John “Jack” Callahan in Miami. Investigators said they believe Callahan was killed to keep him from telling authorities about links between World Jai Alai and the mob.
A congressional panel is investigating the Boston FBI office's ties to its mob informants, including Bulger, who fled in 1995 after being tipped off by then-agent John J. Connolly Jr. that he was about to be indicted on federal racketeering charges.
During Connolly's trial, prosecutors said Bulger and Flemmi were left untouched by law enforcement for decades because they were informing for the FBI on the New England Mafia, which is separate from the Winter Hill Gang. Connolly is serving a 10-year prison sentence.
In 2001, Rico testified about another case before a congressional committee. He denied that he and his partner helped framed an innocent man for a 1965 gangland slaying, but acknowledged that Joseph Salvati wrongly spent 30 years in prison for the crime.
Republican Rep. Christopher Shays accused Rico of feeling no remorse for his role in the conviction of four innocent men in that case. Rico replied, “What do you want, tears?"
Salvati's lawyer, Victor Garo, predicted that Rico's arrest will split the Boston FBI scandal wide open, exposing more government wrongdoing in Boston and Washington. "He was the inside man of the Boston office of the FBI in dealing with informants like Steve Flemmi and others,” Garo said. “I would imagine that right now many people are concerned about what he knows and what he will say. ... He knows about all the skeletons in the closet.”
Wheeler's son said he was pleased with Rico's arrest. “It's something I've wanted for years,” said Larry Wheeler, who said he believes Rico played a role in his father's murder.
The ongoing scandal has also damaged the career of one of the state's most legendary politicians, former state Senate president William Bulger, who is the brother of Whitey Bulger. Bulger resigned as president of the University of Massachusetts in August, following months of mounting pressure over his role in the federal investigation of his fugitive brother.
The departure came just two months after UMass trustees expressed confidence in Bulger even as a storm of protest swirled around him and his testimony before a congressional committee investigating the FBI's ties to its mob informants.
He testified under immunity before the panel in June about brother Whitey. While admitting he had spoken to his brother once since he fled, Bulger said he has no idea of his whereabouts and said there is little he could have done to steer him from a life of crime. William Bulger also said he thought the FBI investigators were trying to get his brother killed when they leaked to the media the fact that Whitey Bulger had been an informant.
Bulger's critics said his testimony was evasive and questioned how he could be so ignorant of his brother's criminal activities.
H. Paul Rico, 78, was arrested at his home near Miami in the slaying of 55-year-old Roger Wheeler, who was shot in the head at a Tulsa, Okla., country club after a round of golf.
Rico's arrest was the latest turn in a long-running scandal over the cozy relationship between the Boston FBI and its underworld informants. Last year, a former FBI agent was convicted of protecting gangsters, including James “Whitey” Bulger, who is on the FBI's 10 Most Wanted list.
Investigators said Wheeler's slaying was linked to his purchase of World Jai Alai and his suspicion that money was being skimmed from the Florida company. At the time, Rico was retired from the FBI and was the head of security for World Jai Alai.
Investigators said Rico provided John Martorano, a hit man for Boston's Winter Hill Gang, with information on Wheeler's schedule so he could be killed. Martorano admitted pulling the trigger and is awaiting sentencing.
The New York Times reported that Rico asked Martorano to carry out the hit because gang members believed Wheeler had learned $1 million a year was being skimmed from the jai alai operation.
Rico “flat-out categorically denies this,” said his attorney, William Cagney III. “He never assisted the Winter Hill Gang in trying to get inside information so they could ... do away with people.”
Rico was jailed in Florida. Gail Marcinkiewicz, a spokeswoman for the Boston FBI, declined to comment. Rico spent 24 years with the FBI, specializing in organized crime cases in Boston in the 1960s and '70s. He cultivated mobster Stephen “The Rifleman” Flemmi and others as informants.
Bulger, the boss of the Winter Hill Gang, Flemmi and Martorano were all charged in Wheeler's murder in 2001 by Oklahoma prosecutors. District Attorney Tim Harris of Tulsa has said he planned to seek the death penalty against Bulger and Flemmi.
Prosecutors in Florida followed with an indictment charging all three in the 1982 slaying of World Jai Alai executive John “Jack” Callahan in Miami. Investigators said they believe Callahan was killed to keep him from telling authorities about links between World Jai Alai and the mob.
A congressional panel is investigating the Boston FBI office's ties to its mob informants, including Bulger, who fled in 1995 after being tipped off by then-agent John J. Connolly Jr. that he was about to be indicted on federal racketeering charges.
During Connolly's trial, prosecutors said Bulger and Flemmi were left untouched by law enforcement for decades because they were informing for the FBI on the New England Mafia, which is separate from the Winter Hill Gang. Connolly is serving a 10-year prison sentence.
In 2001, Rico testified about another case before a congressional committee. He denied that he and his partner helped framed an innocent man for a 1965 gangland slaying, but acknowledged that Joseph Salvati wrongly spent 30 years in prison for the crime.
Republican Rep. Christopher Shays accused Rico of feeling no remorse for his role in the conviction of four innocent men in that case. Rico replied, “What do you want, tears?"
Salvati's lawyer, Victor Garo, predicted that Rico's arrest will split the Boston FBI scandal wide open, exposing more government wrongdoing in Boston and Washington. "He was the inside man of the Boston office of the FBI in dealing with informants like Steve Flemmi and others,” Garo said. “I would imagine that right now many people are concerned about what he knows and what he will say. ... He knows about all the skeletons in the closet.”
Wheeler's son said he was pleased with Rico's arrest. “It's something I've wanted for years,” said Larry Wheeler, who said he believes Rico played a role in his father's murder.
The ongoing scandal has also damaged the career of one of the state's most legendary politicians, former state Senate president William Bulger, who is the brother of Whitey Bulger. Bulger resigned as president of the University of Massachusetts in August, following months of mounting pressure over his role in the federal investigation of his fugitive brother.
The departure came just two months after UMass trustees expressed confidence in Bulger even as a storm of protest swirled around him and his testimony before a congressional committee investigating the FBI's ties to its mob informants.
He testified under immunity before the panel in June about brother Whitey. While admitting he had spoken to his brother once since he fled, Bulger said he has no idea of his whereabouts and said there is little he could have done to steer him from a life of crime. William Bulger also said he thought the FBI investigators were trying to get his brother killed when they leaked to the media the fact that Whitey Bulger had been an informant.
Bulger's critics said his testimony was evasive and questioned how he could be so ignorant of his brother's criminal activities.
Friday, November 14, 2003
Organized Crime and "Joe's Barbecue"
Forty-six years ago today (11/14/1957), an unusual group gathered at the rural estate of a soft drink bottler in Appalachin, a small town just west of Binghamton, New York. Mr. Joseph Barbara was supposedly hosting a "soft drink convention" that day.
Sergeant Edgar Croswell of the New York State Police was intensely interested in the gathering. He'd observed suspected criminals at the house before and was suspicious. With smoke rising from Barbara's grill, Croswell and Trooper Vincent Vasisko openly began to take down the license plate numbers of luxury cars jammed in the driveway.
Suddenly Barbara’s guests noticed…and panicked. Some fled to the woods; others dashed for their cars. Sergeant Croswell ordered an immediate roadblock and soon had detained 62 guests in order to check their identification; among them, Joseph Bonanano, Russell Bufalino, Carlo Gambino, Vito Genovese, Antonio Magaddino, Joseph Profaci, John Scalish, and Santos Traficante.
A veritable Who’s Who of what we now call the "Mob," the "Mafia," or "La Cosa Nostra."
Croswell’s important detective work exploded nationally. Concerns had been expressed that a secret network of connected criminal enterprises existed. But many, including FBI Director J. Edgar Hoover, had disagreed. They said crime was a serious problem, but there was no evidence that a conspiratorial web linked racketeers across the country.
Now there was evidence. Hoover got to work, ordering his field executives to develop maximum information on crime bosses in their areas of jurisdiction. This "Top Hoodlum Program" produced a wealth of information about organized crime activities. In a 1960 Letter to All Law Enforcement Officials, Hoover wryly commented: "If we must, let us learn a lesson from the barons of the underworld who have shown that cooperative crime is profitable – cooperative law enforcement can be twice as effective."
But the Bureau needed legislative tools to get past the small time crooks and connect them with those barons. Congress powerfully delivered, with illegal gambling laws that unlocked mafia financial networks and with laws like the Omnibus Crime Control Act of 1968 and the Racketeer Influenced and Corrupt Organizations Act of 1970. Soon, major cases like UNIRAC, BRILAB, and Pizza Connection led to the prosecution and jailing of top crime lords across the country. Then, in 1987, Judge Richard Owen of the Southern District of New York, sentenced the top leadership of five New York City "families" to 100 years each in prison for working together as a single enterprise. The "Commission Case" effectively broke the stranglehold of traditional organized crime in the U.S.
Today new organized crime syndicates operate on a global stage, and the FBI is working effectively with its international partners to dismantle them, piece by piece.
Thanks to the FBI
Sergeant Edgar Croswell of the New York State Police was intensely interested in the gathering. He'd observed suspected criminals at the house before and was suspicious. With smoke rising from Barbara's grill, Croswell and Trooper Vincent Vasisko openly began to take down the license plate numbers of luxury cars jammed in the driveway.
Suddenly Barbara’s guests noticed…and panicked. Some fled to the woods; others dashed for their cars. Sergeant Croswell ordered an immediate roadblock and soon had detained 62 guests in order to check their identification; among them, Joseph Bonanano, Russell Bufalino, Carlo Gambino, Vito Genovese, Antonio Magaddino, Joseph Profaci, John Scalish, and Santos Traficante.
A veritable Who’s Who of what we now call the "Mob," the "Mafia," or "La Cosa Nostra."
Croswell’s important detective work exploded nationally. Concerns had been expressed that a secret network of connected criminal enterprises existed. But many, including FBI Director J. Edgar Hoover, had disagreed. They said crime was a serious problem, but there was no evidence that a conspiratorial web linked racketeers across the country.
Now there was evidence. Hoover got to work, ordering his field executives to develop maximum information on crime bosses in their areas of jurisdiction. This "Top Hoodlum Program" produced a wealth of information about organized crime activities. In a 1960 Letter to All Law Enforcement Officials, Hoover wryly commented: "If we must, let us learn a lesson from the barons of the underworld who have shown that cooperative crime is profitable – cooperative law enforcement can be twice as effective."
But the Bureau needed legislative tools to get past the small time crooks and connect them with those barons. Congress powerfully delivered, with illegal gambling laws that unlocked mafia financial networks and with laws like the Omnibus Crime Control Act of 1968 and the Racketeer Influenced and Corrupt Organizations Act of 1970. Soon, major cases like UNIRAC, BRILAB, and Pizza Connection led to the prosecution and jailing of top crime lords across the country. Then, in 1987, Judge Richard Owen of the Southern District of New York, sentenced the top leadership of five New York City "families" to 100 years each in prison for working together as a single enterprise. The "Commission Case" effectively broke the stranglehold of traditional organized crime in the U.S.
Today new organized crime syndicates operate on a global stage, and the FBI is working effectively with its international partners to dismantle them, piece by piece.
Thanks to the FBI
Sunday, September 28, 2003
Duff Indictments a Story You Can Sink Teeth Into
When the friends of the mayor of Chicago--friends from a family with connections to the Chicago Outfit--are about to be indicted by a federal grand jury in a $100 million affirmative-action contract fraud scheme, word gets around fast.
So last week, word about the Duffs fanned out from City Hall. But there were a couple hours to kill before U.S. Atty. Patrick Fitzgerald's Thursday news conference about the Duff financial empire. It was time for lunch; I was hungry and wanted to think this through. There was only one place to go. "You've just got to go to Gene's," said a friend and colleague. She meant my favorite steakhouse, and the Duffs' favorite steakhouse, Gene & Georgetti's
.
Gene's is a hangout where information is traded, among politicians, insiders, reporters, wise-guys, salesmen, consultants, from the buttoned down to the gold chains crowd. And what makes it work is that they serve the Best Steak in the City, period. The service is impeccable without being showy and the drinks are honest. Gene's is a part of the old Chicago, the city as it was before so much of the downtown was turned into a theme park.
It's also the place where the Duffs came up to me about a year ago, their tough, hard eyes smiling. They asked me why they don't ever see my children playing in the front yard of my home in the suburbs. They asked it twice. But the columns didn't stop and neither did the news stories by the investigative reporters, or Tribune editorials about the mayor's friends. And here's why: This is not about getting personal with the mayor or the Duffs. Though the mayor has been a frequent target in my column, what drives the criticism is the obscene amounts of taxpayer dollars that go to his pals. In deal after deal after deal, the attitude is that his guys can take what they want and the people in the neighborhoods better shut up about it, while higher taxes put more and more pressure on families to pay for the deals.
It's not personal, it's business, and it's your money.
Mayor Richard Daley is an able politician and has done some good things, including taking personal responsibility for trying to improve the public schools. But he must also take personal responsibility for his friends who get rich on government contracts he controls, paid for by our tax dollars.
The Duff stories broke in 1999, when Tribune investigative reporters Ray Gibson, Andrew Martin and Laurie Cohen wrote about the Duffs' City Hall deals and their connections to Daley and the Outfit. You can find the archive of the stories available on the Tribune's Web site.
Much of what was alleged in the indictments was laid out in those stories: that the Duffs, who are white, ran phony front companies that got $100 million in city contracts that should have gone to firms owned by women or minorities.
Daley knew the Duffs were not minorities, even when he was a crime-fighting Cook County state's attorney. A Duff sits across from you, gives you campaign cash, pours a drink, it's reasonable to assume that even the mayor could tell whether the person was white or not.
Think back to how the media treated the late Mayor Harold Washington, when Washington's buddies were involved in contract scandals. Back then, even minor stories about corruption got sustained media attention, particularly from TV and radio, even if the dollar amounts were only chump change. Washington faced constant media pressure on corruption issues. TV crawled all over him for years.
"If I was white, you wouldn't be doing this to me," Washington said once, in a private moment, as he filched a smoke from me and we stood in a parking lot after a campaign stop. We argued about it, and I told him that since we were off the record, he didn't have to play the race card. "You don't know anything, do you?" he said. He was right. I was a kid, then. I didn't know. But when the Duff stories first broke, involving a white mayor and white guys getting rich, the Chicago media scrutiny wasn't as intense. TV news didn't hound Daley the way it hounded Washington. The mayor must appreciate the kindness.
I'm sure he also appreciates the new federal prosecutor, Patrick Fitzgerald. The feds have already outflanked former Govenor George Ryan's Republicans. Ryan himself is a target. And now the feds are moving toward Daley's Democratic City Hall.
The Daley-Duff relationship is not just a Tribune story anymore. A group of citizens--sworn as federal grand jurors--looked at the evidence. They didn't find a flaw in the system, as the city claims. They found a crime.
A couple friends and I talked of this at Gene's, about the change in things, about the importance of an independent federal prosecutor, about how the bipartisan political clique that runs this state tried to stop Fitzgerald's appointment in hopes of installing one of their own.
Just then, the cell phones began chirping and word of the Duff indictments began to spread through the bar.
We had our steaks medium rare. And they were tasty.
Thanks to John Kass
So last week, word about the Duffs fanned out from City Hall. But there were a couple hours to kill before U.S. Atty. Patrick Fitzgerald's Thursday news conference about the Duff financial empire. It was time for lunch; I was hungry and wanted to think this through. There was only one place to go. "You've just got to go to Gene's," said a friend and colleague. She meant my favorite steakhouse, and the Duffs' favorite steakhouse, Gene & Georgetti's
.Gene's is a hangout where information is traded, among politicians, insiders, reporters, wise-guys, salesmen, consultants, from the buttoned down to the gold chains crowd. And what makes it work is that they serve the Best Steak in the City, period. The service is impeccable without being showy and the drinks are honest. Gene's is a part of the old Chicago, the city as it was before so much of the downtown was turned into a theme park.
It's also the place where the Duffs came up to me about a year ago, their tough, hard eyes smiling. They asked me why they don't ever see my children playing in the front yard of my home in the suburbs. They asked it twice. But the columns didn't stop and neither did the news stories by the investigative reporters, or Tribune editorials about the mayor's friends. And here's why: This is not about getting personal with the mayor or the Duffs. Though the mayor has been a frequent target in my column, what drives the criticism is the obscene amounts of taxpayer dollars that go to his pals. In deal after deal after deal, the attitude is that his guys can take what they want and the people in the neighborhoods better shut up about it, while higher taxes put more and more pressure on families to pay for the deals.
It's not personal, it's business, and it's your money.
Mayor Richard Daley is an able politician and has done some good things, including taking personal responsibility for trying to improve the public schools. But he must also take personal responsibility for his friends who get rich on government contracts he controls, paid for by our tax dollars.
The Duff stories broke in 1999, when Tribune investigative reporters Ray Gibson, Andrew Martin and Laurie Cohen wrote about the Duffs' City Hall deals and their connections to Daley and the Outfit. You can find the archive of the stories available on the Tribune's Web site.
Much of what was alleged in the indictments was laid out in those stories: that the Duffs, who are white, ran phony front companies that got $100 million in city contracts that should have gone to firms owned by women or minorities.
Daley knew the Duffs were not minorities, even when he was a crime-fighting Cook County state's attorney. A Duff sits across from you, gives you campaign cash, pours a drink, it's reasonable to assume that even the mayor could tell whether the person was white or not.
Think back to how the media treated the late Mayor Harold Washington, when Washington's buddies were involved in contract scandals. Back then, even minor stories about corruption got sustained media attention, particularly from TV and radio, even if the dollar amounts were only chump change. Washington faced constant media pressure on corruption issues. TV crawled all over him for years.
"If I was white, you wouldn't be doing this to me," Washington said once, in a private moment, as he filched a smoke from me and we stood in a parking lot after a campaign stop. We argued about it, and I told him that since we were off the record, he didn't have to play the race card. "You don't know anything, do you?" he said. He was right. I was a kid, then. I didn't know. But when the Duff stories first broke, involving a white mayor and white guys getting rich, the Chicago media scrutiny wasn't as intense. TV news didn't hound Daley the way it hounded Washington. The mayor must appreciate the kindness.
I'm sure he also appreciates the new federal prosecutor, Patrick Fitzgerald. The feds have already outflanked former Govenor George Ryan's Republicans. Ryan himself is a target. And now the feds are moving toward Daley's Democratic City Hall.
The Daley-Duff relationship is not just a Tribune story anymore. A group of citizens--sworn as federal grand jurors--looked at the evidence. They didn't find a flaw in the system, as the city claims. They found a crime.
A couple friends and I talked of this at Gene's, about the change in things, about the importance of an independent federal prosecutor, about how the bipartisan political clique that runs this state tried to stop Fitzgerald's appointment in hopes of installing one of their own.
Just then, the cell phones began chirping and word of the Duff indictments began to spread through the bar.
We had our steaks medium rare. And they were tasty.
Thanks to John Kass
Friday, September 26, 2003
Daley anti-crime message doesn't apply to Duffs
A few hours after his good pals, the Duffs, were indicted by a federal grand jury for defrauding city taxpayers out of more than $100 million--Mayor Richard Daley made like a comedian. He asked Chicago to stand with him to fight crime. Then he said the Duffs were hard-working guys. Excuse me for not laughing, but a joke that involved a $100 million contract--even as your property taxes skyrocket--isn't all that funny, is it?
Daley was on the Northwest Side, asking Latinos, African-Americans and others to bravely face down street thugs. All that was missing was a caped-crusader costume or a tiny and sarcastic court jester at his side. When the mayor talked about criminals, he wasn't talking about the Duff clan. They're pink and suburban and close to him, part of his clique, and some Duffs are friends of Chicago Outfit bosses.
"That's why you're here holding your child on your shoulders!" Daley shouted to the crowd Thursday night, which was ready to commence with an anti-crime march. "We're here to protect all the children! That's why [criminals] are enemies!"
It was an amazing display. At least it proves what he thinks of taxpayers. They're the suckers who get squeezed to fill the public troughs from which his friends eat.
Daley wouldn't hang out with drug dealers, obviously. But he'd show up at the Duff Christmas parties at the Como Inn, legendary affairs, glad-handing and back-slapping, letting political Chicago know the Duffs were his guys.
The parties were Daley declarations, that the Duffs were Daley's, so watch it. And everybody who's anybody got the message. But out in the neighborhood Thursday, he wasn't referring to the alleged Duff criminal masterminds. Instead, he was referring to neighborhood lowlifes, guys who take your money with a gun, not a deal.
What was also amazing was that the crowd at the anti-crime rally was largely minority.
Only a few hours before, the Duffs were indicted for ripping off minorities and women, by running phony minority businesses that got $100 million in city contracts, though the Duff men are not blacks or Latinos or women.
They're pinkish tough guys, with Daley clout, from a family that brags about ties to the Outfit bosses, including the late Anthony Accardo, and the imprisoned (but still vigorous behind bars) Rocco Infelice.
"I know a lot of people," Daley told reporters. "And they have to be on their merits. And that's what it is."
He was asked: Is it disconcerting to you that your friends and political supporters were indicted? "It happens, unfortunately, it does," he said.
The mayor did brag, though, once the Duff scandal became public--he forgot to mention that Tribune investigative reporters and editors made it public--that his administration denied minority contract certification to 880 companies.
A Tribune reporter asked: How many of those denied were political contributors?
"Geez, I don't know."
How many were your friends?
"Gee, I don't know. I don't really know. Doesn't matter if they're friends or not."
Geez.
Daley made news, although some might miss it, by admitting Thursday that he knows the Duffs. When the Tribune first broke the Duff investigation in 1999, he didn't know them. "Oh, I know them. Sure," he said Thursday. "You know that. They're hard-working people. This is an unfortunate incident."
What about their ties to organized crime? "Geez. I don't know about that," said the crime-fighting mayor of Chicago.
Earlier, City Corporation Counsel Mara Georges said she was not surprised by the indictments, which is natural, since there were federal subpoenas issued first. And she had trouble explaining why the Daley administration couldn't find the fraud--she actually defended Daley's "investigation" of the Duffs--which found that, geez, pink guys got minority contracts.
"We took aggressive and affirmative action against them," said Georges, perhaps unaware of the pun.
She also explained why her investigation of the Duffs didn't find any fraud. "We do not have subpoena powers," she said.
Geez, Mara.
Tribune investigative reporters Andrew Martin, Laurie Cohen and Ray Gibson don't have subpoena powers. The editors don't have subpoena powers. But they figured out that the Duffs aren't minorities.
Now, finally, a federal grand jury has figured it out. And it only cost you $100 million to make Daley's friends happy.
That's funny. Like a clown.
Thanks to John Kass
Daley was on the Northwest Side, asking Latinos, African-Americans and others to bravely face down street thugs. All that was missing was a caped-crusader costume or a tiny and sarcastic court jester at his side. When the mayor talked about criminals, he wasn't talking about the Duff clan. They're pink and suburban and close to him, part of his clique, and some Duffs are friends of Chicago Outfit bosses.
"That's why you're here holding your child on your shoulders!" Daley shouted to the crowd Thursday night, which was ready to commence with an anti-crime march. "We're here to protect all the children! That's why [criminals] are enemies!"
It was an amazing display. At least it proves what he thinks of taxpayers. They're the suckers who get squeezed to fill the public troughs from which his friends eat.
Daley wouldn't hang out with drug dealers, obviously. But he'd show up at the Duff Christmas parties at the Como Inn, legendary affairs, glad-handing and back-slapping, letting political Chicago know the Duffs were his guys.
The parties were Daley declarations, that the Duffs were Daley's, so watch it. And everybody who's anybody got the message. But out in the neighborhood Thursday, he wasn't referring to the alleged Duff criminal masterminds. Instead, he was referring to neighborhood lowlifes, guys who take your money with a gun, not a deal.
What was also amazing was that the crowd at the anti-crime rally was largely minority.
Only a few hours before, the Duffs were indicted for ripping off minorities and women, by running phony minority businesses that got $100 million in city contracts, though the Duff men are not blacks or Latinos or women.
They're pinkish tough guys, with Daley clout, from a family that brags about ties to the Outfit bosses, including the late Anthony Accardo, and the imprisoned (but still vigorous behind bars) Rocco Infelice.
"I know a lot of people," Daley told reporters. "And they have to be on their merits. And that's what it is."
He was asked: Is it disconcerting to you that your friends and political supporters were indicted? "It happens, unfortunately, it does," he said.
The mayor did brag, though, once the Duff scandal became public--he forgot to mention that Tribune investigative reporters and editors made it public--that his administration denied minority contract certification to 880 companies.
A Tribune reporter asked: How many of those denied were political contributors?
"Geez, I don't know."
How many were your friends?
"Gee, I don't know. I don't really know. Doesn't matter if they're friends or not."
Geez.
Daley made news, although some might miss it, by admitting Thursday that he knows the Duffs. When the Tribune first broke the Duff investigation in 1999, he didn't know them. "Oh, I know them. Sure," he said Thursday. "You know that. They're hard-working people. This is an unfortunate incident."
What about their ties to organized crime? "Geez. I don't know about that," said the crime-fighting mayor of Chicago.
Earlier, City Corporation Counsel Mara Georges said she was not surprised by the indictments, which is natural, since there were federal subpoenas issued first. And she had trouble explaining why the Daley administration couldn't find the fraud--she actually defended Daley's "investigation" of the Duffs--which found that, geez, pink guys got minority contracts.
"We took aggressive and affirmative action against them," said Georges, perhaps unaware of the pun.
She also explained why her investigation of the Duffs didn't find any fraud. "We do not have subpoena powers," she said.
Geez, Mara.
Tribune investigative reporters Andrew Martin, Laurie Cohen and Ray Gibson don't have subpoena powers. The editors don't have subpoena powers. But they figured out that the Duffs aren't minorities.
Now, finally, a federal grand jury has figured it out. And it only cost you $100 million to make Daley's friends happy.
That's funny. Like a clown.
Thanks to John Kass
Friday, February 21, 2003
Chicago Outfit Bosses Dive for Cover as Enforcer Nick Calabrese Talks
Editor's note: John Kass broke the story of the federal investigation dubbed "Operation Family Secrets" in February 2003.
Until recently, the bosses of the Chicago Outfit felt relatively safe, with their connections in politics and local law enforcement. But now, they're on the verge of FBI-inspired paranoia.
They're not concerned where fellow mob boss Joey "The Clown" Lombardo is hiding these days. There's a good reason for The Clown to keep a low profile: Formerly imprisoned mob loan shark and enforcer Nick Calabrese is talking to the FBI, sources said.
Investigators are being given a road map through crime and time, including unsolved Outfit murders going back over decades.
FBI agents have spread out across the country armed with search warrants to collect DNA evidence, hair cuttings and oral swabs, from dozens of Outfit bigwigs. Sources familiar with the investigation said search warrants for the mob DNA have been sealed.
This must aggravate some folks, including imprisoned Chicago street boss Jimmy Marcello, convicted of bookmaking and loan sharking. Marcello hopes to be released from a 12-year federal prison term in a few months.
Marcello, Calabrese and Calabrese's brother, Frank Calabrese Sr, a convicted loan shark, spent years together inside. When old friends talk in prison, they reminisce about dis and dat and dat other ting, don't they?
The U.S. Bureau of Prisons said Thursday that Nick Calabrese's federal prison records had disappeared. My highly educated guess is that he is now in the witness protection program.
"No comment," said the U.S. attorney's office. "No comment," said the Chicago FBI.
Some of the victims of unsolved Outfit hits being discussed with FBI agents might be familiar to you.
They include Anthony Spilotro and Michael Spilotro, the vicious gangster brothers beaten to death and dumped in an Indiana cornfield in 1986
. If you saw the movie "Casino," you know how it happened. Joe Pesci, one of my favorite actors, played Tony. And if you're a faithful reader of this column, you know why the Spilotros were available to be murdered. A few weeks earlier, they beat a federal criminal case against them in Las Vegas.
The key federal witness against them had his testimony undercut by a then-heroic former Chicago police chief of detectives, William Hanhardt.
Hanhardt's surprise testimony as a top cop and defense witness undercut the credibility of hit man-turned-government informant Frank Cullotta. (Frankie got a bit part in "Casino," too, as a hit man).
During the Spilotro trial, Hanhardt was a hero cop, with friends in the newspapers and in Hollywood, where he was glorified in the TV show "Crime Story."
Now, though, Hanhardt is serving a long federal prison term for running an Outfit-sponsored jewelry theft ring. Still, Hollywood may make a movie about him. But nobody made a movie about hit man John Fecaratta. He was killed outside Brown's bingo parlor on Belmont Avenue three months to the day after the Spilotros' bodies were found. The Spilotros weren't supposed to be found. Federal investigators figured Fecoratta was punished for botching the planting of the Spilotros.
Outfit enforcer Billy Dauber and his wife, Charlotte, left a Will County courtroom in 1980. They were hacked to pieces by shotgun blasts during a high-speed chase along a lonely country road.
Daniel Siefert was murdered in front of his family at his plastics manufacturing plant in 1974. Siefert was a key government witness in a federal case against Lombardo, in connection with a scheme that bilked the Teamsters Union pension fund out of millions of dollars.
Siefert was with his wife and 4-year-old son when the Outfit came for him. He ran a short distance after the first shot, but it knocked him down. A gunman walked up to the fallen Siefert, pressed a shotgun against his head, pulled the trigger.
Lombardo and six others were acquitted two months after Siefert's murder.
Nick Calabrese is not as flashy and as loud as his brother, Frank. Nick is quiet. He was to be released this year. Then a strange thing happened. His prison records disappeared. They don't exist, according to the U.S. Bureau of Prisons.
Carla Wilson, a bureau spokeswoman, was helpful Thursday in finding Frank Calabrese, and prison records on his sons, Frank Jr. and Kurt. But no Uncle Nick.
"If he were in the witness protection program, then we would not be able to access that information," she said. Then she said she had to check something and later had a different story about Uncle Nick's vanished records.
"I really can't speculate about that," she said. "All I can tell you is that I don't have any public information on him."
That's OK. We'll wait.
Thanks to John Kass
Until recently, the bosses of the Chicago Outfit felt relatively safe, with their connections in politics and local law enforcement. But now, they're on the verge of FBI-inspired paranoia.
They're not concerned where fellow mob boss Joey "The Clown" Lombardo is hiding these days. There's a good reason for The Clown to keep a low profile: Formerly imprisoned mob loan shark and enforcer Nick Calabrese is talking to the FBI, sources said.
Investigators are being given a road map through crime and time, including unsolved Outfit murders going back over decades.
FBI agents have spread out across the country armed with search warrants to collect DNA evidence, hair cuttings and oral swabs, from dozens of Outfit bigwigs. Sources familiar with the investigation said search warrants for the mob DNA have been sealed.
This must aggravate some folks, including imprisoned Chicago street boss Jimmy Marcello, convicted of bookmaking and loan sharking. Marcello hopes to be released from a 12-year federal prison term in a few months.
Marcello, Calabrese and Calabrese's brother, Frank Calabrese Sr, a convicted loan shark, spent years together inside. When old friends talk in prison, they reminisce about dis and dat and dat other ting, don't they?
The U.S. Bureau of Prisons said Thursday that Nick Calabrese's federal prison records had disappeared. My highly educated guess is that he is now in the witness protection program.
"No comment," said the U.S. attorney's office. "No comment," said the Chicago FBI.
Some of the victims of unsolved Outfit hits being discussed with FBI agents might be familiar to you.
They include Anthony Spilotro and Michael Spilotro, the vicious gangster brothers beaten to death and dumped in an Indiana cornfield in 1986
. If you saw the movie "Casino," you know how it happened. Joe Pesci, one of my favorite actors, played Tony. And if you're a faithful reader of this column, you know why the Spilotros were available to be murdered. A few weeks earlier, they beat a federal criminal case against them in Las Vegas.The key federal witness against them had his testimony undercut by a then-heroic former Chicago police chief of detectives, William Hanhardt.
Hanhardt's surprise testimony as a top cop and defense witness undercut the credibility of hit man-turned-government informant Frank Cullotta. (Frankie got a bit part in "Casino," too, as a hit man).
During the Spilotro trial, Hanhardt was a hero cop, with friends in the newspapers and in Hollywood, where he was glorified in the TV show "Crime Story."
Now, though, Hanhardt is serving a long federal prison term for running an Outfit-sponsored jewelry theft ring. Still, Hollywood may make a movie about him. But nobody made a movie about hit man John Fecaratta. He was killed outside Brown's bingo parlor on Belmont Avenue three months to the day after the Spilotros' bodies were found. The Spilotros weren't supposed to be found. Federal investigators figured Fecoratta was punished for botching the planting of the Spilotros.
Outfit enforcer Billy Dauber and his wife, Charlotte, left a Will County courtroom in 1980. They were hacked to pieces by shotgun blasts during a high-speed chase along a lonely country road.
Daniel Siefert was murdered in front of his family at his plastics manufacturing plant in 1974. Siefert was a key government witness in a federal case against Lombardo, in connection with a scheme that bilked the Teamsters Union pension fund out of millions of dollars.
Siefert was with his wife and 4-year-old son when the Outfit came for him. He ran a short distance after the first shot, but it knocked him down. A gunman walked up to the fallen Siefert, pressed a shotgun against his head, pulled the trigger.
Lombardo and six others were acquitted two months after Siefert's murder.
Nick Calabrese is not as flashy and as loud as his brother, Frank. Nick is quiet. He was to be released this year. Then a strange thing happened. His prison records disappeared. They don't exist, according to the U.S. Bureau of Prisons.
Carla Wilson, a bureau spokeswoman, was helpful Thursday in finding Frank Calabrese, and prison records on his sons, Frank Jr. and Kurt. But no Uncle Nick.
"If he were in the witness protection program, then we would not be able to access that information," she said. Then she said she had to check something and later had a different story about Uncle Nick's vanished records.
"I really can't speculate about that," she said. "All I can tell you is that I don't have any public information on him."
That's OK. We'll wait.
Thanks to John Kass
Sunday, February 16, 2003
Is Al Capone's Pizzeria Haunted?
74 years ago last Friday, the infamous St. Valentine's Day massacre occurred on the north side, cementing Al Capone's legacy as a ruthless mob figure. Of course it is well-documented that Capone and his gang spent a lot of time in Willow Springs. One of those places, we learned, is now a pizzeria. By the way, before you ask, this is not another Al Capone's vault story. But it is, perhaps, another slice of mob life.
At Cavallone's West Pizzeria the bar is always packed, the pizza is piping hot. But the cold reality, according to Cavallone's owner, Rob Degen, is that this is an infamous mob hang out dating back to the 1920's. "I wonder how many times Capone hid in here," Degen asks?
That's right Al Capone. Degen claims that this is where Al's gang spent at least some of its time. Al's picture is on the wall next to the entertainers of the day. He's seen in one picture with his lawyer.
Back in the 20's Cavallone's was called Old Henry's. It was part speakeasy, part brothel part murder and gambling. For author and tour guide Richard Crowe it's always been alluring. "Well you know you always hear stories about tunnels but when you can actually find them and see where the tunnels lead through the walls and they're caved in that's more than legend, there's actually something to that," Crowe said.
Ah yes, the tunnels. There are three in Cavallone's basement. They're boarded up now but when the ground freezes to six feet, rob believes it will be safe to explore them. "So what they would do is put ice picks in the holes and open up the wood," Degen said.
One apparently was a hiding place, another used to funnel booze to a nearby ballroom, and the third? Legend has it that one of the tunnels led to a mausoleum at a cemetery several hundred yards away. The name white was apparently one of Al Capone's pseudonyms and because the mausoleum is actually empty, it was welded shut back in the mid 1930's. "Whenever they were raided if they couldn't get to the secret room, they would run out there through the woods."
The secret room, is just behind the tunnel, you have actually walk through another door, and crouch down to get there. According to Degen, it was used to hide patrons during raids and more. "The room was mainly used to hide money, guns, and bodies if they didn't have time to dispose of them in the woods."
The Secret room is where Degen says he found a decorative, elaborate gaming table. "Take the top off, and then you take the second layer off, and then you open up the table, this is all made of nickel, we have all of the original chess pieces."
Then there are the stories of love and murder. Like the jealous boyfriend of a prostitute named Christina. "The boyfriend found out that she was having an affair with the bartender so he went downstairs and killed the bartender, then came upstairs and strangled Christina in this room."
To this day, Degen says Christina and the bartender haunt Cavallone's along with other restless souls. Which brings us back to Richard Crowe, who is also a ghost hunter. "Under test conditions we've been able to capture things that we can't readily explain," Crowe said. Like several orbs, unexplained energy sources, from a tape Crowe provided to ABC7 News. Though on the night ABC7 cameras were at Cavallone's there was no such luck. "When we have a big crowd we usually won't pick something up," Crowe said.
Even though Crowe's team of ghost hunters shot video of areas they scanned with high tech equipment, looking for otherworldly electromagnetic fields. They got just a scant reading near that gaming table. "We were getting a 3.0, but now we're getting zeroes, its like they showed up. yeah they come and they go."
This pizzeria and potential mob relic provides Degen and his wife Susette a unique vocation, though she refuses to spend the night with their 2 year old daughter in the living quarters upstairs. "Not a day goes by when I flip a switch on and think I'm either going to see something or when I flip it off something's going to grab me or something," Susette Degen said.
For those who take the tour it's an unforgettable slice of Americana. As for Rob Degen its about fun...and whatever he might find once his digs through those tunnels. "What could be in there, what could be on the other side? They never did find Al Capone's money," Degen said with a laugh.
Friday for Valentine's Day, Degen had a group of fifty in for pizza, a tour, and some ghost hunting. But he also sponsors events like séances where psychics try to summon the spirits that allegedly haunt his pizzeria.
Thanks to Rob Johnson
At Cavallone's West Pizzeria the bar is always packed, the pizza is piping hot. But the cold reality, according to Cavallone's owner, Rob Degen, is that this is an infamous mob hang out dating back to the 1920's. "I wonder how many times Capone hid in here," Degen asks?
That's right Al Capone. Degen claims that this is where Al's gang spent at least some of its time. Al's picture is on the wall next to the entertainers of the day. He's seen in one picture with his lawyer.
Back in the 20's Cavallone's was called Old Henry's. It was part speakeasy, part brothel part murder and gambling. For author and tour guide Richard Crowe it's always been alluring. "Well you know you always hear stories about tunnels but when you can actually find them and see where the tunnels lead through the walls and they're caved in that's more than legend, there's actually something to that," Crowe said.
Ah yes, the tunnels. There are three in Cavallone's basement. They're boarded up now but when the ground freezes to six feet, rob believes it will be safe to explore them. "So what they would do is put ice picks in the holes and open up the wood," Degen said.
One apparently was a hiding place, another used to funnel booze to a nearby ballroom, and the third? Legend has it that one of the tunnels led to a mausoleum at a cemetery several hundred yards away. The name white was apparently one of Al Capone's pseudonyms and because the mausoleum is actually empty, it was welded shut back in the mid 1930's. "Whenever they were raided if they couldn't get to the secret room, they would run out there through the woods."
The secret room, is just behind the tunnel, you have actually walk through another door, and crouch down to get there. According to Degen, it was used to hide patrons during raids and more. "The room was mainly used to hide money, guns, and bodies if they didn't have time to dispose of them in the woods."
The Secret room is where Degen says he found a decorative, elaborate gaming table. "Take the top off, and then you take the second layer off, and then you open up the table, this is all made of nickel, we have all of the original chess pieces."
Then there are the stories of love and murder. Like the jealous boyfriend of a prostitute named Christina. "The boyfriend found out that she was having an affair with the bartender so he went downstairs and killed the bartender, then came upstairs and strangled Christina in this room."
To this day, Degen says Christina and the bartender haunt Cavallone's along with other restless souls. Which brings us back to Richard Crowe, who is also a ghost hunter. "Under test conditions we've been able to capture things that we can't readily explain," Crowe said. Like several orbs, unexplained energy sources, from a tape Crowe provided to ABC7 News. Though on the night ABC7 cameras were at Cavallone's there was no such luck. "When we have a big crowd we usually won't pick something up," Crowe said.
Even though Crowe's team of ghost hunters shot video of areas they scanned with high tech equipment, looking for otherworldly electromagnetic fields. They got just a scant reading near that gaming table. "We were getting a 3.0, but now we're getting zeroes, its like they showed up. yeah they come and they go."
This pizzeria and potential mob relic provides Degen and his wife Susette a unique vocation, though she refuses to spend the night with their 2 year old daughter in the living quarters upstairs. "Not a day goes by when I flip a switch on and think I'm either going to see something or when I flip it off something's going to grab me or something," Susette Degen said.
For those who take the tour it's an unforgettable slice of Americana. As for Rob Degen its about fun...and whatever he might find once his digs through those tunnels. "What could be in there, what could be on the other side? They never did find Al Capone's money," Degen said with a laugh.
Friday for Valentine's Day, Degen had a group of fifty in for pizza, a tour, and some ghost hunting. But he also sponsors events like séances where psychics try to summon the spirits that allegedly haunt his pizzeria.
Thanks to Rob Johnson
Monday, December 23, 2002
Did Feds Kill Off the Mob?
A mere decade ago
, the Chicago Outfit's political wing still had an address: Room 2306 of the Bismarck Hotel, at Randolph and LaSalle, the 1st Ward offices of Committeeman John D'Arco Sr. and Ald. Fred Roti, a made member of the mob. Downstairs at Counsellors Row Restaurant, D'Arco and Roti held court with mob-friendly aldermen, judges and state legislators like John D'Arco Jr. The feds installed a hidden camera at Counsellors Row and wired lawyer Bob Cooley (When Corruption Was King: How I Helped the Mob Rule Chicago, Then Brought the Outfit Down). They caught D'Arco and Roti discussing mob business such as rigging elections, bribing judges to fix cases and greasing zoning and license deals.
"Yes sir," the judges and aldermen--some still in office--told ward Secretary Pat Marcy, and rushed off to get him a liquor license or whatever he asked for.
Roti and D'Arco Sr. went to jail and have since died. Counsellors Row was torn down and the old 1st Ward mapped out of existence. Even the Bismarck has a new name: Hotel Allegro. At the same time, the feds took over some of the most mobbed-up unions to try to clean them.
So did the feds kill the mob? Are local pols right to call mob influence in Chicago "ancient history?" Have the mobsters gone straight and quit trying to cultivate friends in government? Mob-watchers and cops say, "No."
The mob has always wanted friendly judges on the bench for help on cases and cops on the force to keep some crimes unsolved. Controlling unions provides jobs for flunkies and money for pols. Friendships with legislators prevent bills cracking down on video poker, which some say nets $100 million a year for the mob.
Most of all, the mob wants friends in government for jobs and contracts. The mob doesn't offer health insurance--mob lackeys need day jobs for that. "It used to be you'd give him $200 a week to get the [illegal betting] books--now you get him a city job," a city worker said at a Northwest Side coffee shop as he looked around cautiously and sipped coffee on his 11 a.m. break. "There's a lot of power with jobs," said Terrance Norton, the Better Government Association executive director.
A slew of convictions this year shows the downsized mob has just diversified and moved west. And the video poker games stay in the bars.
Stone Park Mayor Robert Natale went to prison this year for taking mob bribes to allow illegal video poker gambling at mob-linked bars.
Cicero Town President Betty Loren-Maltese, widow of convicted mobster Frank Maltese, will be sentenced next month for an insurance scam that skimmed $4 million from employee policies. The firm behind the scam gave $21,000 to Gov. Ryan, state Rep. Angelo "Skip" Saviano (R-Elmwood Park) and others.
Union boss John Serpico--appointed and reappointed by Gov. Jim Thompson and Gov. Jim Edgar to head the state port authority even though Serpico testified in 1985 he regularly met with mob boss Joe Ferriola--was sentenced this year on a loan scheme. Serpico showered union money on pols.
Still, elected officials whose campaigns benefit most from the generosity of businesses the state Gaming Board or the Chicago Crime Commission call mob-tied say the mob is dead: "I don't think there's a mob around anyway to run anything," said state Rep. Ralph Capparelli (D-Chicago). "They're still talking about 1924 and 1930. I think you use the word 'mob' because some guy has an Italian name." Saviano and state Sen. James DeLeo (D-Chicago) have made similar statements.
If a mob-linked legitimate business does good work and offers the low bid, why shouldn't it get the contract, one west suburban mayor asked.
With no official address or go-to guy in local government, it's hard to know the mob's legislative agenda. Mob-watchers say a new casino in Rosemont, or better yet, downtown Chicago, tops the list, along with more video poker.
The state Gaming Board refused to allow a casino in Rosemont, finding mob-linked firms already working on the site. Former Crime Commission chief investigator Wayne Johnson blasted twice-indicted, never-convicted Rosemont Mayor Don Stephens for ties to men the commission says are associated with organized crime, such as Sam Giancana and Bill Daddano.
Stephens sued Johnson for libel but admitted the ties to Giancana and Daddano in court filings. Stephens' suit silenced Johnson, the most vocal mob-watcher in town. Johnson left the commission and has been advised by attorneys not to discuss Stephens' alleged mob ties.
Mayor Daley has not cut all ties to the mob-linked Duff family, which donated $8,875 to his campaigns and reaped $100 million in local government contracts. Patriarch John F. Duff Jr. was a character witness for mob boss Tony Accardo. "I just know them. That's all," Daley said. "I'm not personal friends with them. I know them. So what?" A federal grand jury subpoenaed records of Duff contracts with local governments.
Daley's main ally in pushing a downtown casino in the early '90s was Ed Hanley, who had to give up control of the Hotel and Restaurant Workers union amid a federal probe of mob ties.
William Hanhardt was convicted this year of running a jewelry theft ring that stole more than $5 million while Hanhardt climbed the ranks of the Chicago Police Department to deputy superintendent. Cooley warned officials more than a decade ago that Hanhardt was the mob's main plant on the force, getting mob lackeys hired and promoted.
Police Supt. Matt Rodriguez quit five years ago after admitting a close friendship with a mob-linked felon questioned in an oil executive's murder.
Chicago police have watched as powerful ward committeemen still in office today huddled with mob higher-ups such as Vincent "Jimmy" Cozzo.
"What does the mob want from government? No. 1, money, and No. 2, power," Cooley said. "Nobody could ever get a city job or a promotion without the approval of the 1st Ward. They had all the jobs in McCormick Place, all the city jobs, police, sheriff's, state's attorney."
Mobbed-up unions provide an entree for mob types to get jobs in departments like Transportation and Streets and Sanitation that hire union members. A raid at Streets and Sanitation found 37 employees AWOL, including Chucky Miller, who was robbing a Wisconsin jewelry store of $250,000 on city time.
Transportation Department 'worker' James Vondruska, whom the commission calls a mob associate, pleaded guilty this year to playing the horses on city time. WBBM-TV reporter Pam Zekman taped him and other mob-linked workers playing hooky.
Mob-watchers say the mob wants to unionize workers at any new casino that opens in Rosemont or Chicago to work their way into the operation there. "John Serpico was out there with John Matassa 'cause they were going to unionize all the workers at the casino," one mob-watcher said.
The feds have taken over one union after another, from the Teamsters to the Laborers and Hotel and Restaurant Workers' locals, to try to purge them. Serpico was kicked out of the Laborers Union, then committed his loan fraud at Central States.
"The attraction of a union to a mob organization is the union's pension fund investments and medical plans, which are supposed to go to benefit union rank and file, most of whom could never enter the same restaurants ... as Hanley and his syndicate friends," said Combined Counties Police Association President John Flood. "And the main attraction of a union like that controlled by Hanley to the politicians also is the ability to dish out cash contributions."
Thanks to ABDON M. PALLASCH
, the Chicago Outfit's political wing still had an address: Room 2306 of the Bismarck Hotel, at Randolph and LaSalle, the 1st Ward offices of Committeeman John D'Arco Sr. and Ald. Fred Roti, a made member of the mob. Downstairs at Counsellors Row Restaurant, D'Arco and Roti held court with mob-friendly aldermen, judges and state legislators like John D'Arco Jr. The feds installed a hidden camera at Counsellors Row and wired lawyer Bob Cooley (When Corruption Was King: How I Helped the Mob Rule Chicago, Then Brought the Outfit Down). They caught D'Arco and Roti discussing mob business such as rigging elections, bribing judges to fix cases and greasing zoning and license deals."Yes sir," the judges and aldermen--some still in office--told ward Secretary Pat Marcy, and rushed off to get him a liquor license or whatever he asked for.
Roti and D'Arco Sr. went to jail and have since died. Counsellors Row was torn down and the old 1st Ward mapped out of existence. Even the Bismarck has a new name: Hotel Allegro. At the same time, the feds took over some of the most mobbed-up unions to try to clean them.
So did the feds kill the mob? Are local pols right to call mob influence in Chicago "ancient history?" Have the mobsters gone straight and quit trying to cultivate friends in government? Mob-watchers and cops say, "No."
The mob has always wanted friendly judges on the bench for help on cases and cops on the force to keep some crimes unsolved. Controlling unions provides jobs for flunkies and money for pols. Friendships with legislators prevent bills cracking down on video poker, which some say nets $100 million a year for the mob.
Most of all, the mob wants friends in government for jobs and contracts. The mob doesn't offer health insurance--mob lackeys need day jobs for that. "It used to be you'd give him $200 a week to get the [illegal betting] books--now you get him a city job," a city worker said at a Northwest Side coffee shop as he looked around cautiously and sipped coffee on his 11 a.m. break. "There's a lot of power with jobs," said Terrance Norton, the Better Government Association executive director.
A slew of convictions this year shows the downsized mob has just diversified and moved west. And the video poker games stay in the bars.
Stone Park Mayor Robert Natale went to prison this year for taking mob bribes to allow illegal video poker gambling at mob-linked bars.
Cicero Town President Betty Loren-Maltese, widow of convicted mobster Frank Maltese, will be sentenced next month for an insurance scam that skimmed $4 million from employee policies. The firm behind the scam gave $21,000 to Gov. Ryan, state Rep. Angelo "Skip" Saviano (R-Elmwood Park) and others.
Union boss John Serpico--appointed and reappointed by Gov. Jim Thompson and Gov. Jim Edgar to head the state port authority even though Serpico testified in 1985 he regularly met with mob boss Joe Ferriola--was sentenced this year on a loan scheme. Serpico showered union money on pols.
Still, elected officials whose campaigns benefit most from the generosity of businesses the state Gaming Board or the Chicago Crime Commission call mob-tied say the mob is dead: "I don't think there's a mob around anyway to run anything," said state Rep. Ralph Capparelli (D-Chicago). "They're still talking about 1924 and 1930. I think you use the word 'mob' because some guy has an Italian name." Saviano and state Sen. James DeLeo (D-Chicago) have made similar statements.
If a mob-linked legitimate business does good work and offers the low bid, why shouldn't it get the contract, one west suburban mayor asked.
With no official address or go-to guy in local government, it's hard to know the mob's legislative agenda. Mob-watchers say a new casino in Rosemont, or better yet, downtown Chicago, tops the list, along with more video poker.
The state Gaming Board refused to allow a casino in Rosemont, finding mob-linked firms already working on the site. Former Crime Commission chief investigator Wayne Johnson blasted twice-indicted, never-convicted Rosemont Mayor Don Stephens for ties to men the commission says are associated with organized crime, such as Sam Giancana and Bill Daddano.
Stephens sued Johnson for libel but admitted the ties to Giancana and Daddano in court filings. Stephens' suit silenced Johnson, the most vocal mob-watcher in town. Johnson left the commission and has been advised by attorneys not to discuss Stephens' alleged mob ties.
Mayor Daley has not cut all ties to the mob-linked Duff family, which donated $8,875 to his campaigns and reaped $100 million in local government contracts. Patriarch John F. Duff Jr. was a character witness for mob boss Tony Accardo. "I just know them. That's all," Daley said. "I'm not personal friends with them. I know them. So what?" A federal grand jury subpoenaed records of Duff contracts with local governments.
Daley's main ally in pushing a downtown casino in the early '90s was Ed Hanley, who had to give up control of the Hotel and Restaurant Workers union amid a federal probe of mob ties.
William Hanhardt was convicted this year of running a jewelry theft ring that stole more than $5 million while Hanhardt climbed the ranks of the Chicago Police Department to deputy superintendent. Cooley warned officials more than a decade ago that Hanhardt was the mob's main plant on the force, getting mob lackeys hired and promoted.
Police Supt. Matt Rodriguez quit five years ago after admitting a close friendship with a mob-linked felon questioned in an oil executive's murder.
Chicago police have watched as powerful ward committeemen still in office today huddled with mob higher-ups such as Vincent "Jimmy" Cozzo.
"What does the mob want from government? No. 1, money, and No. 2, power," Cooley said. "Nobody could ever get a city job or a promotion without the approval of the 1st Ward. They had all the jobs in McCormick Place, all the city jobs, police, sheriff's, state's attorney."
Mobbed-up unions provide an entree for mob types to get jobs in departments like Transportation and Streets and Sanitation that hire union members. A raid at Streets and Sanitation found 37 employees AWOL, including Chucky Miller, who was robbing a Wisconsin jewelry store of $250,000 on city time.
Transportation Department 'worker' James Vondruska, whom the commission calls a mob associate, pleaded guilty this year to playing the horses on city time. WBBM-TV reporter Pam Zekman taped him and other mob-linked workers playing hooky.
Mob-watchers say the mob wants to unionize workers at any new casino that opens in Rosemont or Chicago to work their way into the operation there. "John Serpico was out there with John Matassa 'cause they were going to unionize all the workers at the casino," one mob-watcher said.
The feds have taken over one union after another, from the Teamsters to the Laborers and Hotel and Restaurant Workers' locals, to try to purge them. Serpico was kicked out of the Laborers Union, then committed his loan fraud at Central States.
"The attraction of a union to a mob organization is the union's pension fund investments and medical plans, which are supposed to go to benefit union rank and file, most of whom could never enter the same restaurants ... as Hanley and his syndicate friends," said Combined Counties Police Association President John Flood. "And the main attraction of a union like that controlled by Hanley to the politicians also is the ability to dish out cash contributions."
Thanks to ABDON M. PALLASCH
Thursday, September 12, 2002
Franklin Park Police Officer Robert Urbinati Linked to Chicago Mob
A former Franklin Park police officer acted as an important communications link between a high-ranking mob boss in prison and his minions on the outside, a federal prosecutor disclosed in court Tuesday.
The fresh details about former officer Robert Urbinati, 60, came at a court hearing in which he was sentenced to 33 months in prison for his role in a suburban, mob-run video poker empire.
Urbinati admitted in February to taking $500 a month as a Franklin Park officer to protect the video poker machines in local bars. But he also would reach out in the early 1990s to Michael Marcello, the brother of convicted mobster James "Little Jimmy" Marcello, who was in prison. Urbinati would relay Outfit problems to Michael Marcello, who would visit his brother James in prison and get answers, Assistant U.S. Attorney Scott Levine said. Urbinati is related to the Marcellos, but the family relationship wasn't specified in court.
When James Marcello gets out of prison next year, he is expected to lead the Chicago Outfit, law enforcement sources have said.
Urbinati's attorney, Joseph Lopez, disputed the government's contention that Urbinati was an important link in the mob's communication network, calling the accusation "highly speculative" and without a basis in solid evidence.
Prosecutors, though, have pointed to a transcript of a secretly recorded conversation in which Urbinati and another player in the conspiracy, Thomas Tucker, talk about problems they are having with Robert Natale, then the mayor of Stone Park, who wanted a larger bribe payment for his services to the mob. Both Tucker and Natale were convicted as part of the investigation.
In the recorded transcript, Urbinati tells Tucker that he "was with Mickey [Marcello] last night. I explained everything to him, he's going to talk to Jimmy, but he said, even he said . . . you know that guy [Natale], he was supposed to get something."
Michael Marcello was not charged in the case. And Lopez called James Marcello "a model prisoner."
The sentencing of Urbinati wraps up the current case. The investigation, though, into illegal video gambling in the suburbs continues.
The machines are a cash cow for the Outfit. One machine alone can rake in $100,000 in profits a year, with the mob splitting the take 50-50 with the bar owner. And there are hundreds of such machines in the Chicago area.
U.S. District Judge Robert Gettleman said the crimes Urbinati committed were "very disturbing," especially since his sentencing came when Americans were commemorating the dedication and sacrifice of so many of its men and women in uniform in relation to Sept. 11.
"He was a crooked cop," the judge said of Urbinati, who wore a badge in Franklin Park from 1968 to 1995.
Thanks to Steve Warmbir
The fresh details about former officer Robert Urbinati, 60, came at a court hearing in which he was sentenced to 33 months in prison for his role in a suburban, mob-run video poker empire.
Urbinati admitted in February to taking $500 a month as a Franklin Park officer to protect the video poker machines in local bars. But he also would reach out in the early 1990s to Michael Marcello, the brother of convicted mobster James "Little Jimmy" Marcello, who was in prison. Urbinati would relay Outfit problems to Michael Marcello, who would visit his brother James in prison and get answers, Assistant U.S. Attorney Scott Levine said. Urbinati is related to the Marcellos, but the family relationship wasn't specified in court.
When James Marcello gets out of prison next year, he is expected to lead the Chicago Outfit, law enforcement sources have said.
Urbinati's attorney, Joseph Lopez, disputed the government's contention that Urbinati was an important link in the mob's communication network, calling the accusation "highly speculative" and without a basis in solid evidence.
Prosecutors, though, have pointed to a transcript of a secretly recorded conversation in which Urbinati and another player in the conspiracy, Thomas Tucker, talk about problems they are having with Robert Natale, then the mayor of Stone Park, who wanted a larger bribe payment for his services to the mob. Both Tucker and Natale were convicted as part of the investigation.
In the recorded transcript, Urbinati tells Tucker that he "was with Mickey [Marcello] last night. I explained everything to him, he's going to talk to Jimmy, but he said, even he said . . . you know that guy [Natale], he was supposed to get something."
Michael Marcello was not charged in the case. And Lopez called James Marcello "a model prisoner."
The sentencing of Urbinati wraps up the current case. The investigation, though, into illegal video gambling in the suburbs continues.
The machines are a cash cow for the Outfit. One machine alone can rake in $100,000 in profits a year, with the mob splitting the take 50-50 with the bar owner. And there are hundreds of such machines in the Chicago area.
U.S. District Judge Robert Gettleman said the crimes Urbinati committed were "very disturbing," especially since his sentencing came when Americans were commemorating the dedication and sacrifice of so many of its men and women in uniform in relation to Sept. 11.
"He was a crooked cop," the judge said of Urbinati, who wore a badge in Franklin Park from 1968 to 1995.
Thanks to Steve Warmbir
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