Mob Boss Son to Increase Brewery Equity Stake

Friends of ours: Jackie Cerone

Bankrupt Pittsburgh Brewing filed its long-awaited reorganization plan yesterday, saying it intends to modernize the 145-year-old Lawrenceville brewery with $7 million from investors and lenders.

The investment would be used to pay bankruptcy-related expenses and purchase a new boiler and a keg system, which would allow the brewery to expand sales to taverns. Remaining funds would be used for marketing. The plan is based on estimated annual savings of $1 million by revising its labor agreement and terminating a union pension plan.

Pittsburgh Brewing's plan, filed in U.S. Bankruptcy Court, Downtown, does not disclose the investors or who would provide financing to the company. The loans would be in addition to a $500,000 line of credit the company has arranged through Craig Newbold, an East Liverpool, Ohio, native whose fortune is based on a software venture he developed and sold.

Some long-suffering creditors will likely object to the 18-page plan, which contests claims filed against Pittsburgh Brewing by several major creditors, most of them government agencies. Unsecured creditors would get 33 cents for every $1 they are owed. They would get less if creditors win claims the brewery is disputing.

Members of the IUE/Communications Workers of America have thus far rejected the wage and other concessions the brewery is seeking, saying they will base their final decision on the merits of the reorganization plan.

President Joseph Piccirilli, who would continue to run the brewery, would increase his ownership of the company to 50 percent under terms of the plan. Jack P. Cerone, the son of a former Chicago mob boss who has an $8 million claim against the company, would double his ownership stake to 40 percent by converting the unpaid loans he provided to the brewery to equity.

Other secured creditors who would be paid in full include the Pennsylvania Industrial Development Authority, which would receive $577,700 owed on a $1.4 million, five-year loan it provided in 1996; a union pension plan that would receive $200,000 in overdue contributions; and the City of Pittsburgh, which would collect $50,800 in unpaid real estate taxes. Mr. Piccirilli would also receive $112,000 in unpaid wages.

Pittsburgh Brewing is contesting a $2.7 million claim by the Pittsburgh Water and Sewer Authority. The agency's threat to terminate service over unpaid bills triggered the brewery's decision to seek bankruptcy protection Dec. 7.

The brewery also is contesting the Pension Benefit Guaranty Corp.'s $1.8 million claim over a terminated pension plan; a $309,500 claim by the Internal Revenue Service; $120,000 of an $814,400 claim for unpaid federal excise taxes filed by the U.S. Alcohol & Tobacco Tax & Trade Bureau; $136,100 in claims by the Pennsylvania Department of Revenue; and a $38,200 claim for Allegheny County real estate taxes.

Unsecured creditors have filed claims in excess of $18 million, but the brewery estimates legitimate claims at $6 million, a figure the 33-cent-on-the-dollar payout is based on. Robert Sable, attorney for the unsecured creditors, declined comment, saying he wanted to review the plan with his clients.

The brewery provided estimates of its financial results based on the reorganization plan. It projects losses of $1.6 million this year and $347,000 next year before turning profits of $575,000 in 2008 and $1.1 million in 2009.

Thanks to Len Boselovic

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Judges Tied to Syndicate? Criminal Contempt is the Response

Michael Lynch's campaign to expose what he says are judges involved in a conspiracy linked to organized crime was put on hold Friday when a judge sentenced him to 60 days in Cook County Jail for criminal contempt.

Lynch once headed Michigan Avenue Partners and turned Chicago-based McCook Metals into a major aluminum force. The New York Times wrote of his entrepreneurial skills when McCook offered a higher bid than Alcoa for Reynolds Metals.

Now fighting bankruptcy, he tells judges to their faces in federal and state court that he thinks they have ties to organized crime and need to recuse themselves from his cases -- such as those seeking to foreclose on his Lake Forest home.

Cook County Judge Paddy McNamara, who gets good ratings from lawyers' groups, sent him to jail Friday after a two-hour hearing in which he repeatedly accused other judges of getting mob money and then produced what he said were some of the judge's own financial records.

Lynch sees a conspiracy of judges linked to law firms that represent Alcoa trying to take him down. He suspected his own lawyers were involved. Lynch said when one judge seemed ready to rule in his favor, the case was suddenly transferred to another judge who ruled against him.

Cook County Judge Alexander White -- as highly rated as McNamara -- told Lynch two weeks ago "Counsel, that's libelous. . .. I have never received a penny," in response to Lynch's demand that White "admit or deny" ties to organized crime.

On Friday, Lynch asked McNamara to let him bring in a source from an organized crime family to back up his claims, but the judge said she had heard enough.

Thanks to Abdon M. Pallasch

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Dapper Don Instigated Bloody Mob War

Friends of ours: John "Dapper Don" Gotti, Gambino Crime Family, Colombo Crime Family, Carmine "The Snake" Persico, Michael "Mikey Scars" DiLeonardo, Alphonse "Allie Boy" Persico, Vic Orena, John "Junior" Gotti, William "Wild Bill" Cutolo

The late Gambino boss John Gotti instigated the bloody civil war within the Colombo crime family in a diabolical scheme to consolidate his power on the Mafia Commission, a turncoat witness testified yesterday. Gotti falsely branded jailed Colombo boss Carmine (The Snake) Persico "a rat" in an attempt to get him replaced by another Colombo gangster who was close to Gotti, according to former Gambino capo Michael (Mikey Scars) DiLeonardo.

DiLeonardo, testifying at the racketeering trial of Persico's son and acting boss Alphonse (Allie Boy) Persico, surprised Brooklyn Federal Judge Sterling Johnson when he matter-of-factly said that Gotti was behind the conflict that left a dozen gangsters dead and an innocent bystander slain outside a Brooklyn bagel shop in the early 1990s.

"John Sr. instigated it?" the judge asked the witness.

"Oh, yeah," DiLeonardo replied.

DiLeonardo explained Gotti's strategy this way: "John was close to Vic Orena and figured if he could get him in, and Allie out, he [Gotti] would have a majority vote on The Commission," DiLeonardo said. "He [Gotti] owned Vic Orena."

During the war, DiLeonardo said he accompanied John A. [Junior] Gotti to Rockaway Beach for secret late-night meetings with members of the Orena faction to try to iron out a settlement.

DiLeonardo said he thought that it was wrong that the Dapper Don had slurred the elder Persico's name. "Allie found out about it and wasn't happy," he recalled. "I told him it wasn't right and I set out to try and make things right."

Alphonse Persico is charged with ordering the 1999 murder of Colombo underboss - and Orena loyalist - William (Wild Bill) Cutolo.

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Jack Nicholson Researches for Role in The Departed

The Departed topped the box office nationwide Sunday, starring Jack Nicholson as a cocaine-snorting, hard-drinking, womanizing Mafia boss. He had to do a lot of research for the role. He had no idea what it's like to be a Mafia boss.<br><br>

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The Departed Gets it Right

Martin Scorsese's "The Departed" is set in Boston among the Irish mob and Irish cops, a story of betrayal and lies by a director who has made his life's work the study of the consequence of sin

"I didn't want to be a product of my environment," says Boston mob boss Frank Costello, played by Jack Nicholson, in a raspy voice over a black screen at the outset. "I want my environment to be a product of me."

Naturally, it begins with an altar boy sipping a soda in a store, with Nicholson in shadow, muscling a terrified shopkeeper. The shopkeeper hands over some cash in the shakedown, and Nicholson then begins flirting with the teenage, female cashier. The boy silently takes all this in, the threats, the cashier's receptive smile, and there is a glint in the boy's eye. He's charmed by such leverage. He's an intelligent boy drawn to the possibilities of power. And so he becomes the servant.

There is no one who does sin better than Scorsese.

"The Departed" is a story of the mob infiltrating the police, and the police infiltrating the mob, and others leveraging the feds in scheme after scheme. They rat each other out, and the consequences fall upon them, inevitably, like snow on a graveyard in December.

With all the intrigue, it could easily have been set in Chicago, and should have been, although we don't seem to do that kind of movie here. Here, we have history enough for Scorsese to make a trilogy on the Outfit and local law enforcement.

We've had hit men cops and jewel thief cops who've been portrayed as heroes until their arrests; and honest police officers stuck for their entire careers hauling drunks out of wagons, others sentenced to 25 years in blue without ever making sergeant. It is a circumstance that can only happen in a highly political town, a town where everything is traded, a bartertown like Chicago, like Boston.

Another element missing were the politicians. The Outfit has owned several freight trains of politicians in Chicago, including mayors. And in Boston, there's Democratic political boss William Bulger and his brother, James "Whitey" Bulger, the hit man charged with 19 murders, and who also corrupted an FBI agent. There weren't any politicians in this one. Maybe next time.

I saw the film on Friday morning. Though I've written about the Chicago Outfit and it's penetration of local law enforcement in the case of former chief of detectives William Hanhardt, I'm no movie critic. But I did go to film school at Columbia College and ran the projector for free screenings for a month or so, watching post-war Italian films involving sad dogs and sad clowns during lunch. So why can't I rate this one?

I happily give "The Departed" four broken knuckles, or four bullets, or four lead pipes, or four broken thumbs, if you will.

Not for the violence (it's supposedly terrible to celebrate violence, but it makes for great cinema when done right), but for the acting of Nicholson, Leonardo DiCaprio, Matt Damon, Mark Wahlberg and Alec Baldwin.

And a special bonus for the scene in which DiCaprio's character asks the alluring female police psychiatrist if she has any cats.

"You don't have any cats?"

"No," she says.

"I like that," he says.

I'm not going to spoil what happens next. You'll have to trust me. You might believe what happens immediately after the cat scene, but you won't believe the rest.

So see it soon, before other people you know see it themselves and invariably spoil it for you, the way some idiots spoiled "The Usual Suspects" (directed by Bryan Singer) a few years ago.

People who saw "The Usual Suspects" before you did just couldn't keep their mouths shut about it, could they? They pretended they didn't want to say anything, but they couldn't resist the temptation of dropping some stray detail, which zinged back through your memory as you sat in the theater, moments before you learned the identity of Keyser Soze.

Don't let anyone do that to you this time. See the movie. And except for the cats and the altar boy, I'm not going to spoil or divulge anything from "The Departed," except for this one little thing.

A woman behind me at the movie started talking, alone, to herself during the ending. As I turned, she was rattling her popcorn bag, her fingers glistening like washed baby carrots.

She kept saying "Come on!" and "Gosh!" and "Oh!" and I kind of lost my temper, just a bit, and politely told her to shut her mouth or I'd pull a Jack Nicholson on her.

"Wow!" she said.

"Madam, will you please be quiet! Please!" I hissed.

"Oh all right," she said, mumbling something under her breath, before the final scene, which I won't tell you about. You've got to see it for yourself.

Thanks to John Kass

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