The Chicago Syndicate
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Wednesday, July 25, 2007

Bribes to A Top Chicago Cop Detailed

Friends of ours: Angelo Volpe, Frank "The Calico Kid" Teutonico, Turk Torello
Friends of mine: William Hanhardt, Robert "Bobby the Beak" Siegel, Frank "Lefty" Rosenthal

A master thief and killer for the Outfit testified today that his mob boss gave a top Chicago cop, William Hanhardt, $1,000 to $1,200 a month in bribes and a new car every two years.

Robert "Bobby the Beak" Siegel took the witness stand Wednesday morning in the Family Secrets case and recounted to jurors in a gravelly baritone how he came up through organized crime in Chicago in the 1950s and 1960s.

Siegel told jurors how his one-time boss, Angelo Volpe, who oversaw the numbers racket on the South Side, paid off Chicago Police, including Hanhardt in the 1960s. Volpe also allegedly paid off Hanhardt's long-time partner, the late Jack Hinchy. Siegel said Volpe told Hanhardt and Hinchy to leave Siegel alone because Siegel was working for him.

Hanhardt, 78, was sentenced to more than 15 years in prison in 2002 for running a nationwide jewelry theft ring that stole millions of dollars in diamonds and other fine gems.

Siegel, who is 71 and in witness protection, told jurors he grew up on the West Side and began stealing when he was 13 or 14, "anything we could make a buck with."

He graduated to armed robberies and worked for Frank "The Calico Kid" Teutonico as a juice loan collector. Under Teutonico, Siegel learned who was who in the Outfit. After Teutonico went to prison, Siegel went to work for Volpe, Siegel testified.

Siegel also said he was sent by mobster Turk Torello in the late 1960s to Las Vegas to help collect $87,000 from an associate of Frank "Lefty" Rosenthal, a subject of the book and movie "Casino."

Siegel said he got the job done. "You know, we threatened him and told him he would get hurt if he didn't pay it, and we straightened it out," Siegel said.

Siegel also said he killed three people for the mob, including one person believed to be an informant, but offered no details early on during his testimony Wednesday.

Siegel began working with investigators in the mid-1990s after he was arrested for a series of jewelry store robberies and five of his codefendants in the case cooperated against him.

"I felt I didn't owe loyalty to anybody after that," Siegel said.

Thanks to Steve Warmbir

Mobster's Widow Testifies at Trial

Friends of ours: Nicholas D'Andrea, James Marcello

Chicago mobster Nicholas D’Andrea drove off in his silver Mercedes with his gun tucked into his belt and within hours was murdered and stuffed into the car’s trunk, his widow testified Tuesday.

Terri L. Nevis, 45, told a federal court jury that as he pulled away from their house on Sept. 13, 1981, D’Andrea was immediately sandwiched between a car in front of him and a car that seemed to be trailing him.

“Was that the last time you saw your husband alive?” Assistant U.S. Attorney Markus Funk asked. “That was the last time I saw him period,” she testified.

Prosecutors blame mob boss James Marcello for the D’Andrea killing in one of the seemingly endless feuds that marked the Chicago Outfit, as the city’s organized crime family calls itself, in the 1970s and 1980s.

Tuesday, July 24, 2007

Cybercrime Is Funding Organized Crime

For months now, the feds have said organized crime was moving into the realm of cybercrime, using hackers to run scams and break into systems.

But Assistant U.S. Attorney Erez Liebermann, chief of the computer hacking and intellectual property section in New Jersey's U.S. Attorney's Office, says cybercrime has been so profitable for organized crime that they're now using it to fund the rest of their underground operations.

"In terms of the risks and rewards, there's a higher chance of getting more, financially, using the world of computer crime. Organized crime is realizing this," he said. "We have suspicions of organized crime being behind some cybercrime that we're investigating here. The attorney general has issued reports about organized crime and terrorist links using computer crime, hacking and intellectual property crimes as a way of raising revenue. It's being used to fund organized crime."

Analysts at Websense, a Web security company, reported late last year that the mob was expected to band together more closely with hackers in 2007 to form a more organized cybercrime community.

The beefed-up online crime cooperative has begun buying, selling, and trading ready-made cyberattack toolkits and exploiting zero-day vulnerabilities. Dan Hubbard, VP of security research at Websense, noted that organized criminals have realized that the Internet has been an untapped resource for earning them profit. Tools and exploits to steal personal, business, and financial information are the hottest commodities for cybercriminals.

Liebermann said federal law enforcement is in a good position to tackle this burgeoning crime.

"The laws that we have ... target a lot of this activity," said Liebermann. "I do not feel handcuffed, no. There is the Cybersecurity Enhancement Act out there, and if it passes, it would enhance penalties and add computer crime to the list of predicate crimes that would give rise to a RICO [Racketeering Influenced and Corrupt Organizations Act] charge."

The prosecutor added that when they charge someone under RICO, the sentencing guidelines provide enhanced penalties because "organized crime is an enhanced problem to be dealt with." If the law passes and computer crimes are added to the list of RICO crimes, it would enhance the penalties for organized crime with computer acts.

And Liebermann says the United States is becoming more and more able to chase down and prosecute cybercriminals, organized or not, even if they're out of the country. Until recently, launching hacking or denial-of-service attacks from outside U.S. borders was enough to keep criminals beyond the long arm of the U.S. law.

Liebermann says their reach, though, is lengthening.

"It presents a special problem, not just for the U.S. but ... other countries have recognized that this is a problem," he added. "Previously, getting information was a problem. It was a more laborious process to get that information without skipping any steps or taking any roundabouts. Other governments are able to work faster, using the same tools we previously had to get the information back on a more efficient basis. We can pick up a phone with a list of countries, like the United Kingdom or Israel, and have a live body. It's a good list of countries."

And even the countries that aren't participating in a particular process are more willing to help in some way now. That's a huge help, according to Liebermann, because of the fleeting nature of digital evidence.

"Botnet herders shift to new servers again and again and again," he said. "If you identify a server but it takes months to get information from another country, the chance of getting any information on this is very slim. If the cooperation is immediate, the chance of getting information is much better. It's a recognition that computer crime has no boundaries."

15% Off at J&R Computer/Music World

Thanks to Sharon Gaudin

Mobster Presidential Campaign Contributions

Rudy Giuliani's campaign revealed that the actor in The Sopranos who played Paulie Walnuts donated to them, even though Rudy is a Mafia-buster. It's pure self-interest. The more real mobsters who are off the street, the more jobs there are for the actors who play them. Thanks to Argus.

Chicago Crime Commission Briefs U.S. Paratroopers on Mob Tactics

Some U.S. paratroopers headed for Iraq will have a working knowledge of organized crime provided by Chicago mob fighters.

The head of the Chicago Crime Commission this month provided intelligence personnel from the 101st Airborne Division with a primer on the investigation of organized-crime rings that will assist them in their upcoming deployments to Iraq and Afghanistan.

Gangsters and other career criminals are an extra wrinkle in the security situation in the theater. Kidnappings and smuggling are pinned on organized rings in Iraq while Afghanistan is a hot bed of heroin.

Although the Crime Commission is primarily geared to monitoring the activities of the Windy City's "Outfit," its expertise can also be applied to other rings that are organized in similar fashion and engaged in venerable rackets such as extortion, murder and drug trafficking.

Commission President James Wagner said in a statement Monday that the troops received extensive background on gangs operating in the region as well as training in ways to investigate and break up such organizations.

Wagner will be revisiting Fort Campbell later this summer for briefings on the subject with top Army commanders.

Nick Calabrese Blasted by Attorney on Cross Examination

Friends of ours: Nick Calabrese, James "Little Jimmy" Marcello, Sam Carlisi, Frank Calabrese Sr., Anthony Spilotro
Friends of mine: Michael Spilotro

An attorney for James "Little Jimmy" Marcello, the reputed head of the Chicago Outfit, today blasted a star witness' account that Marcello was made into the mob in a 1983 ceremony.

Marcello is half Irish, and according to the testimony of Outfit killer Nicholas Calabrese, only men who are fully Italian can be made members of the Chicago Outfit.

Marcello's attorney, Thomas Breen, asked Calabrese on the witness stand if he had met Marcello's "lovely mother Mrs. Flynn," referring to her maiden name.

"And Mrs. Flynn is as Irish as Paddy's pig, isn't she?" Breen said.

"Then Jimmy Marcello lied," Calabrese shot back, apparently a little rattled. "[Marcello's sponsor] Sam Carlisi lied, they lied to the boss."

Nicholas Calabrese gave a detailed account of how he, Marcello and Calabrese's brother, Frank Calabrese Sr., were made with several other men in a ceremony in a closed Chicago area restaurant in 1983.

Breen suggested through his questioning that Calabrese was lying about many details he gave to FBI agents and told jurors from the stand.

Breen asked Calabrese about the making ceremony.

"They serve food?" Breen asked.

"No," Calabrese said.

"No corn beef for Mr. Marcello?" Breen jabbed.

Calabrese has admitted to taking part in at least 14 murders for the mob. As part of his plea agreement with prosecutors, he is avoiding the death penalty and hoping to get something less than life in prison. He's testifying against his brother Frank Calabrese Sr., Marcello and three other men on trial.

Earlier in the trial, Breen scored a point when he was able to get Nicholas Calabrese to say he did not recognize the photo of one of the men that he took part in killing, Nicholas D'Andrea, in Chicago Heights in 1981.

Calabrese said he had only seen the man briefly. The mob was interested in grilling D'Andrea about the attempted murder of a south suburban mob boss but beat D'Andrea so badly that he died before questioning.

The attorney for Calabrese's brother, Frank Calabrese Sr., revealed during his questioning earlier in the day that a family member of one of Nicholas Calabrese's murder victims secretly recorded Nicholas Calabrese during a prison visit.

Nicholas Calabrese took part in the murders of the mob's man in Las Vegas, Anthony Spilotro, and his brother, Michael Spilotro. Their brother, Dr. Pat Spilotro, a dentist, was a friend of Nick Calabrese and also did his dental work, Nicholas Calabrese testified. The dentist visited Nicholas Calabrese in prison once and recorded him, but Calabrese told him nothing about the murders.

In 2001, Nicholas Calabrese sent Pat Spilotro a Christmas card from prison, telling him that he had made a decision he never believed he would have made. Nicholas Calabrese was referring to cooperating with the FBI, according to court testimony.

"God willing, I'll be home next Christmas," Calabrese wrote.

Thanks to Steve Warmbir

Police Sergeant Recalls Battles with Mobsters

Friends of ours: Joseph "Joey the Clown" Lombardo, Frankie "The German" Schweihs, Felix "Milwaukee Phil" Alderisio, Sam Giancana, Johnny Roselli, Jimmy Hoffa
Friends of mine: Richard Hauff

Among the observers paying close attention to the “Family Secrets” mob trial in Chicago is retired police officer John J. Flood who boasts about having one of the first law enforcement run-ins with two of the key defendants in the case.

“Joey Lombardo and Frankie Schweihs: in my lifetime and career as a police officer I have been fighting those guys in different matters of law enforcement over those years,” Flood told WBBM’s Steve Grzanich during a recent interview from his home in Las Vegas.

It is the first meeting with Lombardo and Schweihs that Flood remembers best back in 1964 when Sgt. Flood, with the Cook County Sheriff's Police, interrupted Schweihs and Lombardo and thwarted an attempted hit on mob associate Richard Hauff. “It was happening up on Mannheim Road and Lawrence Avenue at a hotel up there. I came upon it and almost got killed making the arrest,” Flood said.

That was back in the early days for Schweihs and Lombardo, before they hit police radar, said Flood. “I called into Chicago Intelligence and asked who is Frankie Schweihs and they didn’t know. I had to call a knowledgeable Chicago detective who told that’s Phil Alderisio’s bodyguard. He’s a bad guy. Find out who was in the car and who they were going to kill,” said Flood.

While the Family Secrets trial may close the books on 18 mob murders, Flood expects that other mysteries may go unsolved.

“The significant murders that Lombardo would know about would be the murders of Sam Giancana and Johnny Roselli. They were supposed to testify before the Church Commission on the assassination plot against Fidel Castro but they turned up dead. If Lombardo was talking, which I doubt he ever would because he lives by his code, he could tell you who killed (Jimmy) Hoffa and what happened.”

Will guilty verdicts mean the end of the Chicago outfit? "Someone will replace Lombardo. All you have to do is look at the fabric of the American system – corporate crime, white collar crime, organized crime. There is no way in the world organized crime people are going to be leaving gambling, going to be leaving pornography, the lending of money, prostitution – it is not going to happen,” Flood said.

According to Flood, the “Family Secrets” trial will likely be the final chapter for the likes of Lombardo and Schweihs. The retired police officer said the trial also brings to a close his own 40 year career as an organized crime fighter.

Flood is the founder of the Combined Counties Police Association, one of the most well-known and respected independent law enforcement unions ever formed in the United States. He is also one of the foremost experts on organized crime and an authority on the Chicago Outfit.

Thanks to Steve Grzanich

Monday, July 23, 2007

Daley Refuses to Answer Questions on Pal's Mob Connections

Friends of mine: Fred Barbara

'Journalists don't carry guns . . . no, they carry the ink, the ink,'' railed Daley last Thursday at a City Hall news conference.

Hizzoner has been on a tear, ripping the local news media with the fury of a hurricane hitting the coast.

The mayor can be a bully at times.

Nobody wants to say it in so many words, but every department head at City Hall, certainly his 10 previous chiefs of staff who have been put through the mayoral wringer and spun out City Hall's revolving door, know what it's like to be in the woodshed. When they leave, their tongues have been torn out. Not one has ever publicly spoken of what it's like to work for Daley, understanding that it is best never to talk of he-who-shall-not-be-named.

The mayor's wrath was on full display last week. Part Jack Nicholson, part Richard Nixon, Daley roared like a blast furnace, lashed out like a wounded lion, fulminating when reporters dared to inquire about his relationship to Fred Barbara.

''I think it's ridiculous,'' fumed the mayor, refusing to answer, barking back at reporters, ''Any other questions?''

Barbara is a millionaire many times over thanks to lucrative connections to city waste hauling contracts, his wife's now-defunct trucking firm tied to the city's scandal-scarred Hired Truck program, and his ongoing banking business in partnership with well-connected politicians. But many years ago, long before he ever golfed or dined with the mayor or contributed thousands of dollars to Daley-backed candidates, Barbara had caught the eye of the feds. They believed he was mobbed up and indicted him in 1982 in a gambling and juice operation. Barbara was acquitted, never convicted of that or any other crime.

Suddenly, last Tuesday, Barbara's name was vaulted back into public view thanks to the massive Family Secrets mob trial playing out at the federal building. Nick Calabrese, aging hit man-turned-government-witness, told a spellbound courtroom about all manner of mob horrors, including how the Chicago Outfit blew up or burned down certain unlucky suburban restaurants. Fred Barbara, according to Calabrese, was a member of one of the mob's bombing crews back in the 1980s. Barbara didn't respond to my phone calls.

The front page Sun-Times headline the next day read, "Hit man: Daley pal in on mob bombing.''

For Daley, the ink hit the fan. The mayor was apoplectic. For two days, he lashed out at reporters.

''You have the power of the pen, you have a lot of power,'' he declared. ''We don't even know who you are.''

And yet he seems to know where we grew up.

''Most of you never grew up in Chicago,'' said the Baron of Bridgeport.

The problem is the mayor thinks everything is unfair these days. Just about any question, let alone criticism, rankles him. City Hall reporters take the brunt of the mayoral battering as the mayor castigates some of them for living in the suburbs, suggesting they don't really know or care about the city he loves.

He wags his finger, reminding the press of its own dirty laundry, like recently convicted Sun-Times press boss Conrad Black and his creepy, crooked right-hand man, David Radler.

''Look at all the scandals you have received as journalists, every day there is another article, I mean, c'mon, every day there's an article,'' said Daley. ''Every day there's someone, you know, doing some misconduct."

And then he lectures us on our cold hearts and callousness.

''You report a gun killing on Page 25," the mayor jabs triumphantly. ''How about that one? Because it's not your son or daughter. They're not poor. You have a lot of power, don't you realize that?''

We do.

Then again, so does the 19-year occupant of the City Hall's fifth floor.

Mayor Daley has a difficult job that he performs with passion and skill. And we in the press are no shrinking violets. We can take the bullying and the bluster. But at the end of the day, it wouldn't hurt, along with the journalism lecture, to just answer the question.

Thanks to Carol Marin

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