The Chicago Syndicate
The Mission Impossible Backpack

Wednesday, August 15, 2007

Lombardo Claims Alibi for Murder

Friends of ours: Joey "the Clown" Lombardo

Reputed mob boss Joey “The Clown" Lombardo told a packed courtroom Wednesday that he had an alibi for the morning a federal witness was executed by ski-masked gunmen: He was in a Chicago police station miles away complaining that someone had stolen his wallet.

Curiosity seekers jammed U.S. District Judge James B. Zagel's court for a second day, eager to see the now-frail, gravel-voiced 78-year-old who has been tied for years to the top echelons of the mob. Also Wednesday, a juror was dismissed for personal reasons.

Delivered to the witness stand in a wheel chair by a federal marshal, Lombardo gripped his cane as he testified, and at times seemed slightly absent minded as he was questioned by chief defense attorney Rick Halprin.

As CBS 2’s John “Bulldog” Drummond reports, most significant charges against Lombardo stem from the September 1974 of Daniel Seifert, a government witness. Seifert was gunned down outside of his Bensenville factory.

Seifert's widow, Emma, testified earlier in the trial that she believes Lombardo was one of the gunmen.

Lombardo, however, testified that he got up early on that September morning and went out to buy an electric garage door opener. He said the store was closed and he stopped at a pancake house for some breakfast. Returning to his car, he found that his glove compartment had been opened and his wallet taken from it, Lombardo testified.

Lombardo said he returned to the restaurant and told his story to two police officers who were having breakfast there. He said they took him to the Shakespeare Avenue stationhouse on Chicago's North Side, where he filled out a complaint about his stolen wallet.

Emerging from the station afterward, he was surprised, he said. "Then I got the news about Danny Seifert," he testified.

Immediately on taking the stand Tuesday, Lombardo denied that he had anything to do with the Seifert murder.

Sources say the district commander at Shakespeare was later convicted of masterminding a stolen jewelry ring.

On Tuesday Lombardo denied killing Seifert and Wednesday his lawyer asked Lombardo, “What was your relationship with Daniel Seifert?” Lombardo replied, “Very friendly.”

Lombardo explained to the court why he was in the famous “last supper” picture where a number of mob heavyweights had gathered in 1976 to pay tribute to a dying colleague. Lombardo said he had just happened to stop at the restaurant for ice cream when, by chance, he joined the group.

The topic of his 1986 conviction was skimming money from Las Vegas casinos. When Halprin asked Lombardo if he’d ever received any skim money he answered, ”I have to tell the truth. I’m under oath. Not a red penny.”

“The Clown” became a fugitive in April 2005 when he was indicted in the Family Secrets case, but he testified that when he was on the lam for 9 months, he never left Illinois.

Halprin asked him if he believed he committed a federal crime, to which Lombardo replied “Absolutely not.”

Lombardo has admitted that he was a "hustler" who ran a floating crap game and associated with numerous members of the Chicago Outfit, as the city's organized crime family calls itself. But he denies that he has ever been a full-fledged mobster.

Lombardo is one of five alleged mob members on trial, charged with a racketeering conspiracy that included gambling, extortion, loan sharking and 18 murders. Prosecutors say he is responsible for the shooting of Seifert, who was a witness against him in a federal investigation.

After his 1992 release from prison, Lombardo took out an ad in the Chicago Tribune, denying that he had ever taken part in the secret ceremonies by which mob members are initiated as "made guys." The ad invited anyone hearing of criminal activity on his part to call the FBI. But Lombardo did acknowledge on the witness stand Wednesday that he once posed as a mobster to pressure a St. Louis lawyer to pay old debts he owed to Allen Dorfman, the Chicago insurance man who ran the mammoth Teamsters Central States Pension Fund.

The fund was riddled with corruption in the era when it was operated by Dorfman, who himself was gunned down in gangland fashion shortly after he and Lombardo were convicted in the 1986 bribery conspiracy case.

Thanks to John Drummond

Joey the Clown Becomes Court Ringmaster

Friends of ours: Joey "the Clown" Lombardo, Felix "Milwaukee Phil" Alderisio, Anthony Spilotro
Friends of mine: Irwin Weiner, Allen Dorfman

After stopping momentarily to flirt with the blond court reporter and swearing to tell the truth with a raspy "I do," Joey "the Clown" Lombardo lowered himself onto the witness stand with the help of a cane.

The 78-year-old with a Caesar haircut leaned toward the microphone Tuesday afternoon and took off his rounded eyeglasses, settling in to answer his lawyer's questions at the landmark Family Secrets trial.

Joseph 'Joey the Clown' Lombardo Testifies at Family Secrets Mob Trial.With the revelation last week that one of the city's quirkiest reputed mob figures would take the stand in his own defense, his testimony became one of the most anticipated moments in a trial that already has earned a place in Chicago mob lore.

A long line of spectators waited for a seat in the Dirksen U.S. Courthouse's largest courtroom, filled to capacity with federal judges, FBI supervisors, veteran federal prosecutors, a flock of reporters and dozens of the simply curious.

Defense attorney Rick Halprin wasted no time in getting to the heart of the charges, asking Lombardo whether he took part in killing federal witness Daniel Seifert in 1974 and whether he was a "capo" in the Chicago Outfit.

"Positively no," Lombardo responded to both questions.

Lombardo is a reputed organized-crime figure with a flair for humor and theatrics, known for once leaving a court date with a mask made of newspaper to hide his face from cameramen. Another time he took out advertisements disavowing any mob ties.

When the Family Secrets indictment came down two years ago, he vanished, writing the judge letters asking for his own trial before he was apprehended in the suburbs sporting a beard that resembled the one Saddam Hussein grew while hiding in his spider hole. Brought to court for the first time in the case, Lombardo announced he simply had been "unavailable."

On Tuesday, he was at center stage again, telling jurors how he worked the streets as a youngster, shining shoes of police officers in his Grand Avenue neighborhood. They paid him only a nickel a shoe, he said.

"Very cheap people," said Lombardo, sending a wave of laughter through the courtroom.

"Let's not press our luck," shot back Halprin, trying to keep his client focused.

"You told me to tell the truth," countered Lombardo, drawing more laughter.

The guffaws, some from other defense lawyers in the case, brought a stern warning from U.S. District Judge James Zagel, who said he didn't see anything funny about a sweeping conspiracy case that includes the murders of 18 individuals.

Lombardo, one of five men on trial, took the stand as the best way to flesh out his defense that he was essentially an errand boy for powerful mob-connected businessmen such as Irwin Weiner and labor racketeer Allen Dorfman, who ran an insurance agency that did business with the Teamsters. He contended he has always held legitimate jobs and got caught up in criminal conduct through friends.

The jury knows about Lombardo's celebrated convictions from the 1980s for attempting to bribe U.S. Sen. Howard Cannon (D-Nev.) and for skimming millions of dollars from the Stardust casino in Las Vegas.The jury knows about Lombardo's celebrated convictions from the 1980s for attempting to bribe U.S. Sen. Howard Cannon (D-Nev.) and for skimming millions of dollars from the Stardust casino in Las Vegas.

Lombardo set about to describe his work history, starting with shoe shining and detouring briefly to his dice game. Lombardo acknowledged he ran one, blessed by city aldermen, from 1976 until the bribery indictment. "I didn't have time to play dice because I was on trial," he said matter of factly.

Lombardo, dressed in a conservative gray jacket and silver tie, sometimes rubbed his hands in front of him as he testified and sometimes played with his glasses. He often gave brief answers in a sing-song tone and looked toward the jury as he talked.

Lombardo said he worked a dumbwaiter at a hotel, drove trucks, built two six-flats in a small construction business and worked at a salvage warehouse.

Through his relationships with Weiner and Dorfman, Lombardo said, he met Outfit figures such as Felix "Milwaukee Phil" Alderisio and Anthony Spilotro.

Lombardo testified that Weiner also led him to International Fiberglass, where he worked with Seifert. Prosecutors contend Lombardo had Seifert killed before he could testify against Lombardo in a pension fraud case.

The business was failing when he got there, Lombardo said, telling jurors he agreed to round up out-of-work "kids" in the Grand Avenue area to help make sinks and other company products. He helped Seifert pay bills and manage the business, Lombardo said.

A host of nicknames used for Lombardo have surfaced during the trial, including "Lumpy," "Lumbo" and "Pagliacci," the Italian word for clowns. On Tuesday, Lombardo acknowledged he used another name for himself in some of his business dealings in the 1970s: Joseph Cuneo. "Because my name, Lombardo, was always in the paper for different things," he said.

Halprin tried to take on evidence that prosecutors say points to Lombardo's involvement in Seifert's killing. But Lombardo appeared confused on one critical issue and Halprin moved to another topic.

Lombardo's fingerprint was found on the title application for a car used by the gunmen to flee from the scene of Seifert's shooting at his Bensenville business. In addition, Lombardo was identified as having often bought police scanners like the one found in the getaway vehicle.

Lombardo acknowledged buying police scanners from a local store but said he was running errands for Weiner and his bail-bonding business. But Lombardo said he was puzzled about the fingerprint. Halprin asked how it could have been left on the title document.

"What are my prints on? On what?" he asked. "Is that document in Irv Weiner's office?"

Halprin promised to come back to the subject.

Lombardo also denied that he had attempted to bribe Sen. Cannon. He said he was recorded in Dorfman's office discussing his idea to have the senator buy a Las Vegas property that was being purchased by someone else with a large loan from a Teamsters pension fund. He got nothing out of the deal, Lombardo said, except "15 years and 5 years probation."

Earlier Tuesday, Lombardo's lawyers called a series of witnesses who testified that they saw Lombardo at work at legitimate jobs, including International Fiberglass.

Among those testifying was Johnny Lira, 56, a Golden Gloves boxing champion and a one-time lightweight title contender. Lira said he renewed a relationship with the reputed mobster when Lombardo left prison in the early 1990s. Lombardo worked every day at a business that dealt with concrete-cutting machines, he said.

He described Lombardo as "a grease monkey" who worked on equipment in the business' warehouse on Racine Avenue until his arrest in early 2006. Assistant U.S. Atty. Markus Funk asked whether Lira knew Lombardo was a fugitive in his final months on the job. "He didn't act like a fugitive," Lira said. "He came there every day."

In his testimony, Lombardo tried to portray himself as a normal working guy who liked sports. He can "ice skate, roller skate, Rollerblade and bowl," Lombardo testified.

Prosecutors are likely to go hard after that image during their expected cross-examination on Wednesday, and there will be no chance for "the Clown" to disappear.

Thanks to Jeff Coen

Morgan Mint

Tuesday, August 14, 2007

Spilotro Brothers Leave Court

Friends of ours: Anthony Spilotro
Friends of mine: Michael Spilotro

Anthony Spilotro, left, and his brother, Michael, leave the federal building in Chicago.Reputed mobster Anthony Spilotro, left, and his brother, Michael, leave the federal building in Chicago after a bond hearing in this June 17, 1986 photo. Anthony Spilotro was known as the Chicago Outfit's man in Las Vegas and inspired the Joe Pesci character in the movie casino. He and his brother were beaten to death and buried in an Indiana cornfield in June 1986.

On Wednesday, Aug. 1, 2007, a forensic pathologist who did autopsies on the Spilotros, testified at the trial in Chicago of five men charged with taking part in a racketeering conspiracy that included 18 murders. He said there was no evidence that the two men were buried alive.

Cop Stories About The Chicago Outfit

Jim Jack and I are watching the world's biggest mob trial from a back bench, where he can whisper to me while pointing to this thug and that one.

All these decaying Chicago Outfit guys, they look like uncles and grandpas now. But Jack knew a few of them when they just looked mean. They hide it better now.

Jack, 79, was a Chicago cop. He got on the force in 1955, made detective a year later, and worked the old Gale Street District on the Northwest Side -- last stop before the suburbs. He and his longtime partner, Frank Czech, knew all the hinky joints and liked to poke their heads in.

Jack points across the courtroom to a balding fellow slumped in a chair. That's Frank Calabrese Sr., alleged hit man in love with his work.

Jack tells me about the first time he met Calabrese. It was 1958 and he and Czech were cruising around, looking for a suspect in a shooting. They stopped at a mob-connected joint called The Nest, in the 3800 block of North Central.

"It was like 2 o'clockish in the morning, a swinging place, Tony Smith playing on stage," Jack says. "And me and my partner walk in and it was jammed. I was lucky I had my feet on the floor. I take two steps to the bar and there's a space between two guys. I'm bothering nobody, just sticking my head in there to look down at the end of the bar."

One of the two guys swiveled on his stool, as Jack recalls, and offered a traditional Chicago greeting: "What the f--- you lookin' at?" Jack replied, "Nothing much."

"Evidently he took offense to that, because first thing I know he whacked me right in the mouth," Jack tells me now. "Later on, when he's under arrest, he says he's sorry -- he didn't know we were cops. Like if I were a regular patron, it's OK to do a tattoo on my face."

I look across the courtroom again at Calabrese. He still looks like somebody's uncle. But I wonder if he's wondering what the f--- I'm looking at.

James A. Jack has been attending the Family Secrets mob trial at the Dirksen Federal Building since it began June 21. He's thinking of writing a book about his cop days, and the trial fits in.

Jack already has written one award-winning bookThree Boys Missing: The Tragedy That Exposed the Pedophilia Underworld, Three Boys Missing: The Tragedy That Exposed the Pedophilia Underworld, just published by HPH Publishing. The book is Jack's account of his dogged police work in the days immediately after one of Chicago's most notorious crimes, the 1955 Peterson-Schuessler triple murders.

Jack didn't solve that crime. Decades would pass, in fact, before an aging pedophile would be convicted of the murders and tossed in prison. But in the course of working on the case, Jack and his partner rooted out two or three other sex offenders, and they discovered something that was almost like a secret in the more innocent 1950s -- pedophilia is frightfully common.

That's what happens when you're a cop: You learn the world is a darker place than most people know.

I ask Jack for another story, another tale from those jolly formative years. He tells me about his first partner as a detective, a cop who dressed in Gucci on a Florsheim salary.

"Phil Tolomeo -- the Outfit put him in there," Jack tells me. "The first month I was working with him, I didn't even know. I was new and just married.

"We're working midnights and he's driving, and he stops at a place on Harlem called Meo's," Jack continues. "He says, 'Wait here, I'll be right back,' and he goes in and it's like 45 minutes, then an hour. He comes out and I say, 'Jesus, where the hell you been?' He says, 'Oh, I just went to see a few guys.'"

Jack didn't like Tolomeo's Gucci shoes. He didn't like that Meo was the last three letters in Tolomeo. He didn't like what he had heard when he started asking around -- that Meo's was a favorite mob hangout.

"They're all in there, every day and every night -- Tony Accardo, Aiuppa, Cerone, Murray the Camel," Jack says. "I'm not Charlie Chan, but I'm beginning to figure it out."

The last straw came the third or fourth night Tolomeo left Jack waiting outside Meo's. All of a sudden, as Jack sat there in the dark, flashbulbs began popping in the weeds from a vacant lot across the street. Somebody was taking pictures.

Back at the police station, Jack finally had a talk with Sgt. George Murphy, the supervisor of detectives. "Sarg, what's going on?" he said. "I'm gonna get myself fired."

Murphy nodded and clued Jack in. Yeah, he said, that was probably the FBI taking surveillance pictures from the weeds. And he already knew all about Tolomeo.

"Somebody had to be his partner, Jim," Murphy said, "and you're new and we didn't think you'd get in trouble with him."

"Get me off," Jack said.

The next month, Jack had a new partner, Frank Czech. And 35 years after that, long after leaving the police force, Phil "Philly Beans" Tolomeo -- who was, indeed, related to the owner of Meo's -- entered the federal witness protection program. He explained to the FBI exactly how Frank Calabrese's extortion racket worked.

Jack wasn't a Chicago cop for long. He left the police force in 1968 and became head of national security for Toys R Us. He had a family to support, and he was tired of moonlighting to make ends meet. One good-paying job made more sense than two or three poor paying jobs. Not bad for an ex-boxer from the West Side who grew up in an orphanage. But before turning in his badge, Jack gathered enough great cop stories for a lifetime.

Like the story about getting into a huge bar fight with Tony Spilotro, the vicious mob boss of Las Vegas who wound up dead in an Indiana cornfield.

Jack's story about Spilotro is a long one, starting in 1961 and ending in 1963. It's also a good one, involving a nightclub singer, a pretty girl and a grudge that wouldn't go away. But in the space I've got left here, I could never do it justice.

"You really should write that book," I tell Jack, whispering to him at the Family Secrets trial.

Up on the witness stand, a forensic pathologist is describing how Tony Spilotro and his brother Michael were beaten to death with nothing but fists, knees and feet.

"I just might," Jack says. "It was something."

Thanks to Tom McNamee

Lawyer on Lombardo: Hustler? Yes, Gangster? No

Friends of ours: Joey "The Clown" Lombardo, Frank Calabrese Sr., Anthony Doyle, Nicholas Calabrese
Friends of mine: Frank Calabrese Jr.

Lawyer Rick Halprin stood a step from the jury box Monday at the Family Secrets trial and painted a picture of a vastly misunderstood Joey "the Clown" Lombardo.

Lowering his normally deep, echoing voice, Halprin contended the reputed leader of the Outfit's Grand Avenue street crew was "a hustler and not a gangster," telling jurors that his client's ambition got him tangled up with the wrong crowd and mislabeled a mobster. "Joey Lombardo is not, was not and never has been a capo or a made member of the Chicago Outfit," Halprin said.

His remarks came after federal prosecutors completed seven weeks of often-dramatic evidence and the defense opened for the five men on trial in a conspiracy case that at its heart involves 18 long-unsolved gangland slayings.

The trial's next few days could be pivotal as Lombardo and another key defendant, Frank Calabrese Sr., are expected to testify on their own behalf, their attorneys said. Former Chicago Police Officer Anthony Doyle, another defendant in the case, may testify as well.

The investigation's Family Secrets code-name came as a result of cooperation by Calabrese's brother and son. In recent testimony, the brother, Nicholas, an admitted Outfit hit man, implicated Calabrese in more than a dozen of the mob killings. The son, Frank Jr., also testified after secretly recording conversations with his father.

The task could be tall as well for Lombardo, 78, as he tries to dispel his image as one of Chicago's most clever and colorful organized-crime figures of recent decades.

In a highly unusual, strategic move Monday, Halprin delivered his opening statement on Lombardo's behalf weeks after the landmark trial began in late June and other defense lawyers addressed jurors. Halprin denied his client took part as charged in the massive criminal conspiracy but admitted he had one connection to questionable activities on the West Side. "He did, in fact, run the oldest, most reliable craps game on Grand Avenue," Halprin said with a smile.

Lombardo sat back at his defense table, watching his lawyer. At one point he looked toward the courtroom gallery while adjusting his glasses, as if gauging reaction.

Halprin's remarks lasted about 30 minutes. He stood away from a lectern, gesturing with his hands and explaining Lombardo's point of view.

Halprin portrayed Lombardo as a businessman who fell into trouble after mixing with the wrong people. He was friends with men such as mob-connected bail bondsman Irwin Weiner and labor racketeer Allen Dorfman and got swept up in their schemes, he said. Lombardo was convicted with Dorfman in an attempt to bribe the late U.S. Sen. Howard Cannon of Nevada, Halprin told jurors, and was later convicted of skimming millions of dollars from a Las Vegas casino. But Lombardo played a minor role, Halprin said, and didn't see a dime of any casino cash. He was snared in the case because he spent time at Dorfman's office while the FBI was wiretapping conversations there.

In prison in the 1980s, Lombardo had an epiphany, the lawyer said. "He knew for the rest of his life, in the public's perception, [it would be]: reputed mobster, reputed gang boss," Halprin said. "He decides to withdraw from his past life."

Lombardo took out a newspaper ad in the early 1990s claiming he wasn't a made member of the mob and asking anyone who witnessed him commit a crime to call his probation officer or the FBI.

He has held to a lawful lifestyle ever since, Halprin said, working at an upholstery factory and minding his own business.

Jurors would not see a witness come into the courtroom and identify the Lombardo of the past decade as anything "other than older, smarter, wiser and a decent citizen," Halprin promised.

Halprin denied Lombardo played any part in the 1974 murder of federal witness Daniel Seifert, the lone killing in which he has been implicated. Seifert was fatally shot before he could testify against Lombardo and others in a fraud case. But Halprin said his client was 20 miles away in a restaurant at the time of the killing.

Also Monday, a defense witness testified he witnessed the 1983 murders of Richard Ortiz and Arthur Morawski and contradicted the testimony of Nick Calabrese, the government's star witness. Terry Pretto, 56, who was the first witness called for Frank Calabrese Sr., testified he lived above the Cicero bar owned by Ortiz at the time of the murder.

Pretto said several times that he was "petrified" to be testifying and faced the wrong way as he was about to be sworn in Monday. U.S. District Judge James Zagel asked him to turn around and face the bench. "Sorry guy," Pretto said.

The gray-haired Pretto said he left his pregnant wife upstairs to buy a six pack of beer on the night of the shooting when he saw a man standing in front of Ortiz's car. Pretto said a single gunman with no mask or gloves shot the men. He identified the gunman as a Cicero police sergeant.

Calabrese testified that he and his brother carried out the killing after Ortiz crossed the Outfit.

On cross-examination by Assistant U.S. Atty. Mitchell Mars, Pretto acknowledged he never gave a statement about what he contends he saw until May 2000, 17 years after the murders.

Mars pressed him for details, and Pretto admitted again that he was flustered. "I'm scared," said Pretto, even telling the prosecutor "you might come after me tonight."

"No, I guarantee it won't be me," Mars answered.

Mars also asked if it was possible Pretto was naming the police officer because he had a grudge against him. He asked if Pretto remembered giving a statement saying that the officer had once handcuffed him in Cicero and beaten him up.

Pretto said he didn't recall. "I've been handcuffed a lot of times in Cicero," he said.

Thanks to Jeff Coen

Monday, August 13, 2007

Feds Rest Their Case at Family Secrets Trial

Federal prosecutors rested their case Monday at the racketeering trial of alleged mob boss Joseph "Joey the Clown" Lombardo and four other reputed members of the Chicago underworld.

U.S. District Judge James B. Zagel quickly denied requests by the defendants for immediate acquittal and began setting the stage for perhaps a week of defense witnesses -- including Lombardo himself -- at Chicago's biggest mob trial in years. "It's quite plain that all of these motions for acquittal at the end of the government's case must be denied and I deny them," Zagel said.

Besides the 78-year-old Lombardo, those on trial are James Marcello, 65, Frank Calabrese, 69, Paul Schiro, 70, and Anthony Doyle, 62.

They are charged with operating Chicago's organized crime family -- known as the Chicago Outfit -- as a racketeering enterprise that included gambling, extortion, loan sharking and 18 long-unsolved murders.

Among those murdered was Tony "The Ant" Spilotro, for years the mob's man in Las Vegas and the inspiration for the Joe Pesci character in the movie "Casino." He and his brother Michael were beaten and strangled in 1986 and buried in an Indiana cornfield.

Lombardo plans to take the witness stand in his own defense sometime this week, attorneys said. Defense attorneys for Calabrese and Doyle did not rule out the possibility that their clients also could testify.

Lombardo's defense is based on the claim that, after serving years in prison for attempting to bribe a U.S. senator and involvement in Las Vegas casino skimming, he swore he would never take part in any further crimes.

Zagel said he would allow Lombardo to talk about his withdrawal from a life of crime despite grumbling from prosecutors that it amounted to letting him vouch for his own good behavior.

On cross examination, prosecutors are guaranteed to ask him why he went on the lam for months after the indictment was unsealed. He was arrested after FBI agents cornered him in an Elmwood Park alley.

Saturday, August 11, 2007

Gambino Ambassador to Sicilian Mobsters

Friends of ours: Frank "U Frankie" Cali, Gambino Crime Family, Dominic "Italian Dom" Cefalu

A reputed Gambino crime-family soldier serves as ambassador to Sicilian mobsters trying to pump millions of dollars in illicit drug and extortion proceeds into real estate and other business in New York, officials said yesterday.

Wiretapped conversations picked up by Mafia-hunters in Palermo identified Frank "U Frankie" Cali as the suspected Gambino point man between his crime family and their counterparts in Sicily, Italian authorities said.

Sources said the only Frank Cali listed in the Gambino family in the United States is a 42-year-old Sicilian native living Bensonhurst, Brooklyn. He could not be reached for comment last night.

The bombshell disclosure came after Italian police rounded up 14 suspected mobsters in Palermo on an array of charges, including aiding fugitive boss Salvatore Lo Piccolo, one of Palermo's most powerful mob figures and possible successor to Bernardo Provenzano, the undisputed boss of bosses. Provenzano was captured last year after 43 years on the lam.

The probe uncovered evidence that Cali, who has close ties to a once-prominent Mafia family in Italy, the Inzerillos, would likely help the Sicilians launder tens of millions of euros in speculative real-estate deals in Brooklyn and retail businesses in Manhattan. Authorities did not disclose what those investments might be.

Telephone wiretaps and listening devices discovered close relations between the Palermo families and the American Mafia, according to a statement by Palermo police.

The Mafia has already made an agreement with the Italian-Americans in view of shared opportunities, Pietro Grasso, Italy's national anti-Mafia prosecutor, said at a recent news conference. In this new strategy, the American connections are indispensable.

Grasso explained that the Sicilians have a difficult time laundering their money in their homeland and are increasingly turning to the United States and other countries, where they have allies to launder cash.

Last May, The Post reported that the Sicilian mobsters, with their infamous history of violence and drug trafficking, were re-emerging as major powers in the Big Apple, and their ranks were expected to grow with the release of notorious Pizza Connection Mafiosi.

Sources say Cali appears to be a legitimate businessman, but investigators believe he is closely aligned with Dominic "Italian Dom" Cefalu, 60, who is currently considered the underboss of the Gambino crime family.

Thanks to Murray Weis

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