Grand jury hears evidence on ex-member of prison board re: Harry Aleman parole hearing

A grand jury has heard evidence about possible wrongdoing by a former state Prisoner Review Board member who was involved in the 2002 parole hearing for mob "hit man" Harry Aleman, the Chicago Sun-Times has learned.

Until now, public attention in the unusual case has been focused on Ronald Matrisciano, a former assistant deputy director for the state's prison system. Matrisciano, 51, raised eyebrows in December 2002 when he testified during the hearing that Aleman had been "a model inmate" with an "exceptional disciplinary record." But in addition to Matrisciano, the grand jury has heard evidence about a former Prisoner Review Board member involved with the Aleman hearing, sources familiar with the case said. The sources would not name the individual, and it is too early to say whether the person would face criminal charges.

The grand jury, however, is expected to wrap up its work by mid-December, potentially lifting a veil on what investigators have been probing regarding Matrisciano's decision to support Aleman's release.

Matrisciano identified himself as a friend of Aleman's family during the 2002 hearing and said he was not representing the prison system. But he also identified himself as a corrections official -- a move that showed poor judgment, state officials said, and contributed to a January 2003 demotion.

Matrisciano eventually was laid off by the Blagojevich administration, but the Illinois Civil Service Commission ordered him re-hired in March 2004. He immediately was placed on paid administrative leave, where he remains as the investigation continues. He is being paid $78,696 a year.

The Prisoner Review Board decided to keep Aleman -- who is serving a 100- to 300-year sentence for the 1972 murder of a former Teamsters official -- behind bars. Aleman is up for parole again Dec. 7.

Matrisciano has maintained he did nothing wrong in testifying for Aleman three years ago. He had "a number of conversations" with his superiors about the matter and "his testifying did not become an issue" until the press got a hold of it, said his lawyer, Howard Feldman of Springfield.

Thanks to Chris Fusco and Stephano Esposito

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Bridgeview officials subpoenaed in probe

Friends of mine: Fred Pascente
Friends of ours: William Hanhardt

The U.S. attorney's office has subpoenaed trustees and employees of the Village of Bridgeview as part of its investigation into whether coercive tactics were used to lure the Chicago Fire soccer team to town.

John LaFlamboy, who was the owner of the World Golf Dome, filed a lawsuit in August against Bridgeview Mayor Steve Landek and other town officials saying they ran a conspiracy to strong-arm him into selling his 50 percent ownership interest in the dome to the city. The village used the dome successfully to lure the Fire to Bridgeview.

Subpoenas went out to village trustees and to "a handful" of employees, said attorney Chris Gair, who is representing them. Landek and other possible targets of the investigation apparently did not get subpoenas. Landek declined to comment.

LaFlamboy charges he refused all pressure from the village to sell his dome, even after he said the village sent inspectors and police out to give him bogus tickets, including one for providing pizza without a proper license, even though the pizza was for disabled children. He also faced nuisance lawsuits, he said.

In September 2003, LaFlamboy said Landek's $3,200-a-month consultant, Steve Reynolds, and former Chicago Police detective Fred Pascente showed up at LaFlamboy's office and used strong-arm tactics to pressure him into selling his ownership stake to Pascente for $175,000. LaFlamboy said it was worth about $1.5 million.

Pascente, a friend of convicted former Chicago Chief of Detectives William Hanhardt, has denied wrongdoing or having mob connections, even though he is banned from Nevada casinos for alleged mob ties. He is a convicted felon.

Trustee Norma J. Pinion said she was informed there was a letter on her desk waiting for her regarding the subpoena.

Thanks to Mark J. Konkol and Abdon M. Pallasch

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New head of the Chicago Crime Commission

The ABC7 I-team has learned Illinois is losing its top gambling investigator, who is now taking over as head of the Chicago Crime Commission.

The I-team has learned that veteran mobfighter Jim Wagner accepted the job as president of the Chicago Crime Commission, a position that has been vacant for the past six months. Wagner is a career lawman but will soon leave the government job he has held for five years...that of chief investigator for the Illinois Gaming Board...a post that has put him right in the middle of the Rosemont casino controversy.

As the village of Rosemont saw dollar signs in landing a gambling casino...gaming board chief investigator Jim Wagner saw signs of trouble...alleged mob links to Rosemont mayor Don Stephens, the Emerald Casino and some of it's shareholders. "As you all know the Outfit makes its money on gambling; they always go were the cash is. So we have to remain diligent," said Jim Wagner on April 28, 2005.

Wagner will be remaining diligent against the outfit from a new vantage point: here at the Chicago crime commission where he takes over as president the middle of next month. He is expected to rejuvenate the crime commission's roots...that were planted in 1919: the same year that Al Capone moved to Chicago.

It was no coincidence that the nation's first citizen anti-crime organization grew during the heyday of the Chicago mob. Jim Wagner could be considered a modern day Elliott Ness the G-man who brought down Capone.

As a career special agent with the FBI here in Chicago, Wagner toiled for years on outfit cases, eventually becoming supervisor of the organized crime squad. Wagner had trained many of the federal agents whose investigation recently resulted in the indictment of top hoodlum Jimmy "the man" Marcello and more than a dozen other Chicago mob figures in connection with 18 unsolved gangland murders.

Mr. Wagner will replace Thomas Kirkpatrick as head of the crime commission. Kirkpatrick resigned last summer but his departure wasn't made known until the i-team revealed it ten days ago. "I'd say he did a pretty good job. It was time we branched out into different areas," said Douglas Kramer, Crime Commission Board Chairman in November 15, 2005 I-Team Interview.

One key area will have to be fundraising, attracting financial support from local businesses with programs such as the safe neighborhoods project that featured the late Johnny Cochran in TV ads. "If you're a felon caught with a gun...not even I can get you off, " Cochran says in the ad.

If Wagner can help cure the crime commission's dire financial ailment, his first major duty will be to hire a chief investigator. That person would undoubtedly share Wagner's educated belief that the mob in Chicago is far from dead as some so-called experts suggest.

The crime commission had hoped to keep Wagner's hiring under wraps until the organization's annual luncheon on December 14th, but last week Wagner informed his own staff at the gaming board.

Thanks to Chuck Goudie.

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Firm with reputed mob ties flourishes

Friends of ours: Peter DiFronzo, John DiFronzo, James Marcello, Sam Carlisi

Near the front of this fall's Columbus Day Parade rolled a shiny, massive truck from D&P Construction -- one of many signs the local waste-hauling business is prospering.

D&P dumpsters, often emblazoned with painted American flags, have sprouted up all over the Chicago region: at an Old Town-area church being rehabbed; outside a Loop bridgehouse renovated by the Friends of the Chicago River; at a new strip mall in Niles, and along a canal in Evanston. But the company also continues to surface in other places: the files of the FBI and Illinois Gaming Board. Officials from those agencies have, in recent years, repeatedly described D&P as a mob-linked company.

On paper, D&P is run by Josephine DiFronzo. But authorities contend D&P really is "controlled" by her husband Peter and his brother John, and a Chicago Sun-Times examination indicates that Peter DiFronzo is deeply involved with the company.

The DiFronzo brothers are identified in law enforcement documents as "made" members of the Chicago mob, with John "No Nose" DiFronzo, 76, allegedly one of the three top organized crime figures in the city. Peter DiFronzo, 72, allegedly is his chief lieutenant and, at least for a time, was a leader of the mob's Elmwood Park Street Crew.

A recently released report from an Illinois Gaming Board hearing officer offers disturbing new allegations about D&P's operations -- and its success. The report, penned by retired judge and congressman Abner Mikva, cited an internal FBI memo from 2003 that not only alleged that D&P is "controlled by Peter and John DiFronzo," but it also said that the business "obtained contracts through illegal payoffs or intimidation."

Reached on the phone at her Barrington-area home this week, Josephine DiFronzo declined to comment. "I have a wake to go to. I'm just running out the door," she said before hanging up. Neither she nor her husband responded to subsequent phone calls to D&P. John DiFronzo's lawyer had no comment.

Despite the DiFronzos being shy with the press, D&P's profile only has increased in recent years. The company and a sister recycling and materials firm, JKS Ventures, now have sophisticated Web sites that, among other things, boast about them being family-owned for more than 30 years. "Whether it is providing waste removal options, delivering material or tearing down your old facility . . . D&P is 'At Your DISPOSAL!' " the D&P site reads.

D&P and JKS contribute generously to certain politicians, including state Rep. Angelo "Skip" Saviano (R-Elmwood Park) and Republican Cook County commissioner and Elmwood Park Mayor Peter Silvestri. D&P, with addresses in Chicago and Melrose Park, co-sponsored a charity golf event earlier this year.

D&P used to operate quietly as a subcontractor for the once-mighty Palumbo Construction, which specialized in road building and public works projects but ultimately ran afoul of the law. Peter and John DiFronzo, one law enforcement source said, had a firm foundation from which to build D&P. "[Peter] knows trucking. He knows road building. He knows construction. He's got experience in those areas," the source said. "And his brother John knows cars. He's been a car dealer his whole life . . . he went to the auctions and would buy cars. He knew a good car from a bad car."

D&P now does a good deal of work leasing dumpsters for home renovations and larger developments. A D&P dumpster even was spotted around the corner from mob turncoat Nick Calabrese's old Norridge home, where a neighbor's building a new house. The number of union employees working for the DiFronzos has doubled in the past few years, said a person familiar with Peter DiFronzo and D&P. "While others are struggling . . . he is getting bigger every day," said the person. "He's definitely moving through the ranks, big and getting bigger."

The person believes D&P is offering competitive prices to beef up its customer list and sell, perhaps to a larger rival. Industry officials contacted in recent days said they aren't aware of that strategy and didn't want to speculate.

A D&P customer willing to talk is well-known developer Sam Zitella, who has used D&P dumpsters "for many years." Zitella lives near Peter and Josephine DiFronzo, and he considers Peter DiFronzo a good friend. "He's been providing my dumpsters for many years, he's a good guy," Zitella said. "He's a hard worker" who helps run a "great operation."

"He's a good person, good family, very family-oriented," Zitella added. "He gets a lot of business because the service is there, decent price."

While some customers are aware of the DiFronzo brothers' reputations, others are not. Like the Archdiocese of Chicago. This week, a D&P dumpster was on site at St. Joseph's Catholic Church near Orleans and Division in the Old Town area. Neither the contractor overseeing a project to convert an old rectory into a parish center nor the archdiocese's construction office apparently was aware of D&P's history.

After a Chicago Sun-Times inquiry to the archdiocese, the contractor agreed to hire a different firm, said Jim Dwyer, an archdiocese spokesman. "We don't micromanage our projects to the extent we would know who's doing the waste hauling," Dwyer said. "The contractor we had wasn't aware of anything like this, and they have volunteered to hire somebody else." Still, "we're not making any judgments about this company," Dwyer said, adding he was not aware of D&P being involved in any other current archdiocese construction work. A D&P dumpster, however, was at an archdiocesan facility on the Northwest Side in recent years.

D&P was widely publicized as a mob-linked firm in March 2001, when the Gaming Board took issue with D&P hauling trash from the Rosemont site where Emerald Casino Inc. tried to build a gambling barge. Emerald's use of D&P, the board stated, was one of many reasons Emerald discredited the integrity of state casino operations and deserved to have its gaming license revoked. Mikva's ruling last week supports the board's original finding. Emerald is expected to appeal the case.

Former federal prosecutor Gregory Jones was the Gaming Board chairman in 2001. Reached Wednesday, he said he wasn't surprised by D&P's growth. "It's a little hard to say what the public reacts to. . . . It could be there are so many allegations surfacing around today that they don't pay too much attention to it until there's some sort of action from a legal standpoint," Jones said. "Our views back from the Gaming Board were that you don't have to be convicted for something to be hurting your reputation or hurting the integrity of gaming. That's a much broader standard."

The DiFronzo brothers have had their share of legal trouble. John DiFronzo, whose family has residences in River Grove, McHenry County and southern Wisconsin, has more than two dozen arrests, and he was convicted in 1993 in a scheme to infiltrate an Indian casino. Peter DiFronzo did time in Leavenworth in the 1960s for a warehouse heist. Their younger brother Joseph, meanwhile, is imprisoned in Springfield, Mo., on federal drug offenses.

Peter DiFronzo's other trouble has stemmed from the Teamsters. In 1998, a government-union agency known as the Independent Review Board tried to kick him out of the group "for being a member of the Chicago La Cosa Nostra . . . and knowingly associating with other organized crime members," according to union documents.

Those reputed mob figures included John DiFronzo and Joseph Andriacchi, described as a childhood friend of Peter DiFronzo. "According to the FBI, [Peter] DiFronzo has a close relationship with his [older] brother," the union documents stated.

Peter DiFronzo was believed to be a liaison between his older brother and other reputed hoodlums, including James Marcello and the late Sam Carlisi, according to records and the law enforcement source. A confidential informant told the FBI in 2001 that John DiFronzo "visits Peter DiFronzo every morning at . . . JKS Ventures, and gives Peter DiFronzo instructions and orders for the day with regards to Chicago Organized Crime," according to testimony at the Gaming Board's Emerald Casino disciplinary hearing.

Peter DiFronzo resigned from the Teamsters in 1998, but did not admit to any of the charges.

Since then, it's clear that he's been part of D&P's operations.

Peter DiFronzo is listed as the D&P contact for the June charity golf event; he's the point person for the sale of an old JKS grinder, according to a U.S. Manufacturing Inc. Web site, and he regularly directs D&P workers, said the source familiar with the company. "He has daily contact with the drivers, or their supervisors," the source said.

Meanwhile, two workers from D&P ran unsuccessfully in the most recent Teamsters Local 731 election, raising concerns among some about whether Peter DiFronzo was trying to exert influence at his former union. "There seems to be a general attitude that there's no need to be concerned about the Outfit" any more, the law enforcement source said. "Nothing could be further from the truth."

Thanks to Robert Herguth and Chris Fusco

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New charges for 'Mafia cops'

The "Mafia Cops" have something else to digest over Thanksgiving: a new version of the federal indictment accusing them of being hitmen for the mob. Brooklyn federal prosecutors Wednesday released a retooled indictment, their fourth version, in the racketeering charges against ex-NYPD detectives Louis Eppolito and Steven Caracappa.

Eppolito and Caracappa already face a total of 10 homicide charges in the racketeering case that started with their arrest in March. The new indictment didn't add any new murder victims but did add two murder-for-hire allegations to cover the killings of Gambino mobster Edward Lino in 1990 and diamond dealer Israel Greenwald in 1986. The new charges also added a 1982 bribery allegation against Eppolito,56.

News of a new indictment angered defense attorney Edward Hayes who is representing Caracappa, 63. Hayes said the defense now has to revise motion papers, which already cost tens of thousands of dollars to prepare, because of the latest grand jury action. He thinks prosecutors are trying to delay the trial, now set for February. "This is their fourth try to make this case," said Hayes. "I think it is fair to ask if there are facts they want to put before the jury or whether they want to postpone it because they don't see a way to try the case." A spokesman for the Brooklyn U.S. Attorneys Office couldn't be reached for comment Wednesday.

Caracappa and Eppolito are accused in the case of being hitmen for Anthony "Gaspipe" Casso, the now imprisoned former acting boss of the Lucchese crime family. Some of the murders took place while they were with the NYPD. Both defendants had been kept for a time in solitary confinement after their arrest in their home state of Nevada. But Brooklyn federal judge Jack B. Weinstein released them on house arrest with separate $5 million bail packages. Eppolito is living with relatives on Long Island while Caracappa is staying at his mother's house on Staten Island.

Weinstein has expressed concern that the original federal indictment has a serious statute of limitations problems. Generally, racketeering conspiracies like the kind Eppolito and Caracappa are charged with require some act to have been committed within five years of the time of indictment. The original indictment was filed in early March of this year.

The most recent homicide in the case was in 1991. However, prosecutors also originally said Eppolito and Caracappa took part in money laundering and a narcotics conspiracy in late 2004.

Challenging the indictment, the defense has claimed that the drug charges aren't related to the earlier Mafia-linked racketeering homicides and thus can't save the indictment from dismissal. After Weinstein also stated in court that he thought the case had a problem with the statute of limitations, prosecutors began revising the indictment to include crimes as late as October 2002. Prosecutors also made Eppolito and Caracappa the racketeering enterprise, instead of La Cosa Nostra. The defendants are scheduled to be arraigned next Wednesday.

Thanks to Anthony DeStefano

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