Researchers at RSA's FraudAction Research Lab discovered one of the largest stolen data caches ever. Over the last 30 months a trojan virus, known as Sinowal, Torpig and Mebroot by various anti-virus companies, has stolen 270,000 online banking account credentials and 240,000 credit and debit account numbers. The virus is so sophisticated that it changes constantly to avoid detection by anti-virus programs, in fact, a test of the most recent virus showed that only 10 out of 35 security applications were able to detect it.
Sinowal works by hiding in the Master Boot Record of computers waiting till its victims visit one of 2700 bank and e-commerce sites where it displays new fields in to the existing website to capture personal and private information such as Social Security numbers, account numbers and passwords.
At this point it is not apparent who is behind the attacks but there is some interesting, if not revealing, evidence that suggests the Russian Mafia may be behind this crime.
Sinowal was tied to the Russian Business Network in its early days. The Russian Business Network was a hosting company in St. Petersburg, Russia that was disbanded last year after media pressure due to thier cyber-crime friendly policies and clients. With 500,000 stolen identities and accounts from at least 27 countries it is interesting that none were from Russia. Additionally, one of the Sinowal web servers also contained a spoof of the U.S. Marshals Web Site with bogus wanted posters for famous Russian people such as Mikhail Gorbachev, Leonid Brezhnev, Joseph Stalin, Vladimir Lenin and Vladimir Putin. What's more interesting is that these names were also the user names for gang members that logged in to this illegal web server.
Is all this proof? No, but that will be difficult to obtain. It does lead to a high level of suspicion though. Identity Theft Labs has stated previously that we fully expect large criminal organizations to become involved in identity theft, if they haven't already, because it is profitable and low risk. The Russian Mafia has already taken their operations in the U.S. in to other non-traditional income streams such as insurance fraud and personal injury lawsuits. Can identity theft really be far behind or have they already entered this criminal market? It may not be proven but the odds say that they have already hatched their master plan.
Thanks to Identity Theft Labs
Thursday, November 06, 2008
Organized Crime Increasing Activity on the World Wide Web
Research findings from Microsoft Corp.'s (NASDAQ: MSFT) latest Security Intelligence Report indicates that organized crime activity on the Internet is increasing and more general awareness and education should be increasing as well.
Mohammad Akif, national security and privacy lead for Microsoft Canada, explains the Microsoft Security Intelligence Report is conducted semi-annually, with its most recent volume spanning the six-month period from January 1 to June 30, 2008. Data is collected by analyzing over 450 million unique computers around the world, in addition to utilizing other security and vendor Web sites, such as the National Vulnerability Database
.
Perhaps the biggest takeaway from the report, Akif said, is realizing that organized crime on the Internet continues to increase.
“As the operating system (OS) becomes harder to attack, hackers and criminals are moving to the application layer,” Akif said. “In the last six months, 90 per cent of the vulnerabilities that were disclosed affected applications, whereas only 10 per cent affected the OS.”
Akif said the majority of today's malicious activities are driven by a motive for financial gain. As such, in Canada, he said the rise of malware or potentially unwanted software (PUS) is increasing. To put things into perspective, Akif said for the first six months of the year, there were 72 per cent more distinct computers found in Canada that reported malware or PUS, compared to findings from the last report.
The top two categories that were reported for disinfected machines in Canada were Trojan downloader and droppers at 24.7 per cent, and Adware at 23.2 per cent. PUS ranked third, coming in at 21.8 per cent. In Canada, Akif said the top threat is Zlob, a Trojan downloader and dropper. Zlob, he explains, takes advantage of Internet users by opening up pop-up boxes that appear to be official, but in fact, aren't.
“These will be boxes like, ‘You have spyware, so click here for free software to get your computer clean,'” he said. “Depending on the intensity and severity of this, your computer can then be breached and compromised. We saw 86,000 variants of Zlob in the last six months and we feel the reason this number is so high is because there's a financial upside to it.”
PUS is also another problem for users to be cautious of, Akif said. PUS will notice end-user buying patterns and behaviour on the Internet. In Canada, this PUS is better known as ZangoSearchAssistant. By monitoring end-user purchasing habits and online behaviour, reports are then sent back to servers, which in turn store and sell the information to companies that can then solicit messages out to try to make money.
The key to solving these vulnerability problems, Akif said, is to raise general awareness levels. Akif said some people aren't educated about, or are simply unaware of security practices they could use to protect themselves and their workplace and information.
“Customers should be enabling a firewall, enabling automatic updates with Windows Vista, Windows Server and Windows XP, and they should also be installing up-to-date anti-virus and anti-spyware programs,” he said. “Users should also not go to Web sites they don't trust and should uninstall software they don't frequently use.”
To further help educate the market on security practices, Microsoft is currently in the process of updating its partner portal and is working to get programs such as its Hack and Defend workshops in place. Hack and Defend, Akif said, is a workshop designed for Microsoft partners and customers.
“This is a free workshop that Microsoft is conducting for partners to come in and see how some of these attacks are being conducted,” he said. “We show them what can be done to protect against and to prevent them from happening. These workshops will be conducted in the Q3, February and March 2009 timeframe. We're still figuring out which cities we'll have these workshops in, but we'll also have them available as Web casts for customers to participate in too.”
Thanks to Maxine Cheung
Mohammad Akif, national security and privacy lead for Microsoft Canada, explains the Microsoft Security Intelligence Report is conducted semi-annually, with its most recent volume spanning the six-month period from January 1 to June 30, 2008. Data is collected by analyzing over 450 million unique computers around the world, in addition to utilizing other security and vendor Web sites, such as the National Vulnerability Database
.
Perhaps the biggest takeaway from the report, Akif said, is realizing that organized crime on the Internet continues to increase.
“As the operating system (OS) becomes harder to attack, hackers and criminals are moving to the application layer,” Akif said. “In the last six months, 90 per cent of the vulnerabilities that were disclosed affected applications, whereas only 10 per cent affected the OS.”
Akif said the majority of today's malicious activities are driven by a motive for financial gain. As such, in Canada, he said the rise of malware or potentially unwanted software (PUS) is increasing. To put things into perspective, Akif said for the first six months of the year, there were 72 per cent more distinct computers found in Canada that reported malware or PUS, compared to findings from the last report.
The top two categories that were reported for disinfected machines in Canada were Trojan downloader and droppers at 24.7 per cent, and Adware at 23.2 per cent. PUS ranked third, coming in at 21.8 per cent. In Canada, Akif said the top threat is Zlob, a Trojan downloader and dropper. Zlob, he explains, takes advantage of Internet users by opening up pop-up boxes that appear to be official, but in fact, aren't.
“These will be boxes like, ‘You have spyware, so click here for free software to get your computer clean,'” he said. “Depending on the intensity and severity of this, your computer can then be breached and compromised. We saw 86,000 variants of Zlob in the last six months and we feel the reason this number is so high is because there's a financial upside to it.”
PUS is also another problem for users to be cautious of, Akif said. PUS will notice end-user buying patterns and behaviour on the Internet. In Canada, this PUS is better known as ZangoSearchAssistant. By monitoring end-user purchasing habits and online behaviour, reports are then sent back to servers, which in turn store and sell the information to companies that can then solicit messages out to try to make money.
The key to solving these vulnerability problems, Akif said, is to raise general awareness levels. Akif said some people aren't educated about, or are simply unaware of security practices they could use to protect themselves and their workplace and information.
“Customers should be enabling a firewall, enabling automatic updates with Windows Vista, Windows Server and Windows XP, and they should also be installing up-to-date anti-virus and anti-spyware programs,” he said. “Users should also not go to Web sites they don't trust and should uninstall software they don't frequently use.”
To further help educate the market on security practices, Microsoft is currently in the process of updating its partner portal and is working to get programs such as its Hack and Defend workshops in place. Hack and Defend, Akif said, is a workshop designed for Microsoft partners and customers.
“This is a free workshop that Microsoft is conducting for partners to come in and see how some of these attacks are being conducted,” he said. “We show them what can be done to protect against and to prevent them from happening. These workshops will be conducted in the Q3, February and March 2009 timeframe. We're still figuring out which cities we'll have these workshops in, but we'll also have them available as Web casts for customers to participate in too.”
Thanks to Maxine Cheung
Tuesday, November 04, 2008
"What're you going to do now, tough guy?"
A jailed reputed mobster was charged on Monday with the 1977 slaying of a gangland rival who used his last words to taunt him in a motel parking lot.
"What're you going to do now, tough guy?" Giovanni "Coca Cola" Larducci asked when Michael Coppola's gun jammed during the New Jersey confrontation on Easter 1977, prosecutors said.
Coppola has bragged to cooperators that he responded by pulling out another pistol from an ankle holster and shooting Larducci dead, prosecutors said.
The slaying was recounted in court papers alleging Coppola also infiltrated and shook down a labor union for the Genovese organized crime family.
Coppola pleaded not guilty on Monday in federal court in Brooklyn to murder, extortion and other charges.
Defense attorney Henry Mazurek said outside court that the evidence against Coppola is flimsy. His client, he said, was "more than optimistic about beating these charges."
Coppola, 62, was arrested last year after becoming one of New Jersey's most-wanted fugitives. He went underground in 1996 with the help of his wife to duck a court order requiring him to submit a DNA sample in the Larducci slaying.
Over the next 11 years, the couple used various aliases while splitting time between an apartment in Manhattan owned by a Genovese associate and a home in San Francisco, prosecutors said. Following Coppola's capture in New York, investigators said they discovered a book in his apartment titled "The Methods of Attacking Scientific Evidence
."
A DNA sample taken from Coppola last year was compared to that from hair found on a hat left at the motel parking lot. The FBI analysis found that "Coppola could not be excluded as the source of the hair," court papers said.
Coppola already was serving time after pleading guilty to charges related to his flight. If convicted of the new charges, he faces life in prison.
"What're you going to do now, tough guy?" Giovanni "Coca Cola" Larducci asked when Michael Coppola's gun jammed during the New Jersey confrontation on Easter 1977, prosecutors said.
Coppola has bragged to cooperators that he responded by pulling out another pistol from an ankle holster and shooting Larducci dead, prosecutors said.
The slaying was recounted in court papers alleging Coppola also infiltrated and shook down a labor union for the Genovese organized crime family.
Coppola pleaded not guilty on Monday in federal court in Brooklyn to murder, extortion and other charges.
Defense attorney Henry Mazurek said outside court that the evidence against Coppola is flimsy. His client, he said, was "more than optimistic about beating these charges."
Coppola, 62, was arrested last year after becoming one of New Jersey's most-wanted fugitives. He went underground in 1996 with the help of his wife to duck a court order requiring him to submit a DNA sample in the Larducci slaying.
Over the next 11 years, the couple used various aliases while splitting time between an apartment in Manhattan owned by a Genovese associate and a home in San Francisco, prosecutors said. Following Coppola's capture in New York, investigators said they discovered a book in his apartment titled "The Methods of Attacking Scientific Evidence
."
A DNA sample taken from Coppola last year was compared to that from hair found on a hat left at the motel parking lot. The FBI analysis found that "Coppola could not be excluded as the source of the hair," court papers said.
Coppola already was serving time after pleading guilty to charges related to his flight. If convicted of the new charges, he faces life in prison.
What Happens to Chicago's Top Mob and Corruption Fighter After the Presidential Election?
Despite the national media's childlike fantasy that Illinois is something like Camelot—where the knights rise to power without staining their shining armor—we're still neck deep in corruption and sleazy pay-to-play politics.
The Chicago Outfit, though wounded, still reaches out to friendly pols. The bipartisan Illinois Combine that runs things isn't finished, though a Republican boss was indicted last week. The Democratic half of the Combine, Chicago's Daley machine, is now poised to leverage the awesome power of the White House. And what the machine wants is control of the federal hammer in its backyard.
Readers keep asking me the same question: Will the next president keep Patrick Fitzgerald as the U.S. attorney in Chicago?
I really can't say. What are political promises worth from politicians with debts to pay? But here's what I do know. There is no story more important to the people of Chicago and of Illinois than the future of Fitzgerald, who has systematically hunted down the corruption.
Corruption the Chicago Way doesn't only waste money and burden taxpayers. This isn't only about isolated instances of graft and amusing, earthy rapscallions. That is a cartoon. The reality is that Illinois political corruption is an infection that spreads. The people either are numbed and deny it, or they feel pressured to suck up to their overlords. That's not American. That's positively Medieval.
That's how important this is. Both John McCain and Barack Obama have promised to keep Fitzgerald here.
"If we lose him, we lose everything," said a Chicago FBI agent wise in the ways of Chicago politics and its symbiosis with the Chicago mob. "I can't imagine it happening. He's the guy who pulls the trigger on all these investigations. If it happens, if they get rid of him, forget it."
Fitzgerald, brought here as an independent with no political connections and no ambitions to run for governor or knock down seven figures at a law firm, has done more in a few years than could have been imagined.
A corrupt former Republican governor in prison. A Democratic governor with a creeping case of feditis that appears to be politically terminal. City Hall patronage bosses convicted. And the leaders of the Chicago mob are scheduled for sentencing in December, which means the Outfit is in no mood to play the enforcer for their favored politicians.
History shows us that governors are expendable, but mayors are not. In this city's fantastic history of corruption, a mayor has never gone down. Chicago mayors are like the queen bee, and all other bees protect her, because she lays the magic eggs. Without the eggs, what's the point of public service? After years of climbing, Fitzgerald is getting close to the hive.
McCain has no loyalty to the Republican half of the Combine, which backed Mitt Romney, who made it clear he would dump Fitzgerald if elected. But McCain was unequivocal in his support for Fitzgerald and said the prosecutor should remain where he is, fighting political corruption in Illinois, not promoted up or out.
"I'd keep him. I'd keep him," McCain said last November when I asked him at a session with the Tribune's editorial board, of which I am not a member. "I think he has done a good job and I think the American people are crying out for having this corruption cleaned up."
Obama, meanwhile, talks reform. But he's backed by the Chicago machine. And Obama's own longtime friend and real estate fairy, Tony Rezko, has been convicted of corruption and is believed to be preparing to talk to the feds.
Mayoral brother Bill Daley has been rumored for a Cabinet post in an Obama administration, and is expected to be on the transition team if Obama is elected. Bill Daley will look to protect his brother first. Although Bill is a thoughtful politician, somehow I just don't see the phrase "Barack, we've gotta keep Pat Fitzgerald" on Billy's lips in the personnel meetings.
Another Chicago connection, U.S. Rep. Rahm Emanuel (D-Tomczak), is being rumored as a possible White House chief of staff. Emanuel would also look first to protect the mayor. Washington Beltway reporters won't tell you this, because they must figure that what happens in Chicago stays in Chicago, but a few years ago, Emanuel was elected with the help of a massive patronage army of stooges on the City Hall payroll who pounded the precincts.
The fellow who directed this army for Emanuel is the corrupt former city water boss Donald Tomczak. He now sits in federal prison in Duluth, Minn., while Emanuel prepares to reform us all. It was Fitzgerald's office that put Tomczak away.
Back in March, Obama visited the Tribune's editorial board. He said that if elected president, he would keep Fitzgerald in place.
"I still think he's doing a good job," said Obama. "I think he has been aggressive in putting the city on notice and the state on notice that he takes issues of public corruption seriously."
Does your wanting to keep Fitzgerald in the job threaten any other political entities here in Chicago?
"I can't speculate on that," Obama said then. "I can't."
But you can.
Thanks to John Kass
The Chicago Outfit, though wounded, still reaches out to friendly pols. The bipartisan Illinois Combine that runs things isn't finished, though a Republican boss was indicted last week. The Democratic half of the Combine, Chicago's Daley machine, is now poised to leverage the awesome power of the White House. And what the machine wants is control of the federal hammer in its backyard.
Readers keep asking me the same question: Will the next president keep Patrick Fitzgerald as the U.S. attorney in Chicago?
I really can't say. What are political promises worth from politicians with debts to pay? But here's what I do know. There is no story more important to the people of Chicago and of Illinois than the future of Fitzgerald, who has systematically hunted down the corruption.
Corruption the Chicago Way doesn't only waste money and burden taxpayers. This isn't only about isolated instances of graft and amusing, earthy rapscallions. That is a cartoon. The reality is that Illinois political corruption is an infection that spreads. The people either are numbed and deny it, or they feel pressured to suck up to their overlords. That's not American. That's positively Medieval.
That's how important this is. Both John McCain and Barack Obama have promised to keep Fitzgerald here.
"If we lose him, we lose everything," said a Chicago FBI agent wise in the ways of Chicago politics and its symbiosis with the Chicago mob. "I can't imagine it happening. He's the guy who pulls the trigger on all these investigations. If it happens, if they get rid of him, forget it."
Fitzgerald, brought here as an independent with no political connections and no ambitions to run for governor or knock down seven figures at a law firm, has done more in a few years than could have been imagined.
A corrupt former Republican governor in prison. A Democratic governor with a creeping case of feditis that appears to be politically terminal. City Hall patronage bosses convicted. And the leaders of the Chicago mob are scheduled for sentencing in December, which means the Outfit is in no mood to play the enforcer for their favored politicians.
History shows us that governors are expendable, but mayors are not. In this city's fantastic history of corruption, a mayor has never gone down. Chicago mayors are like the queen bee, and all other bees protect her, because she lays the magic eggs. Without the eggs, what's the point of public service? After years of climbing, Fitzgerald is getting close to the hive.
McCain has no loyalty to the Republican half of the Combine, which backed Mitt Romney, who made it clear he would dump Fitzgerald if elected. But McCain was unequivocal in his support for Fitzgerald and said the prosecutor should remain where he is, fighting political corruption in Illinois, not promoted up or out.
"I'd keep him. I'd keep him," McCain said last November when I asked him at a session with the Tribune's editorial board, of which I am not a member. "I think he has done a good job and I think the American people are crying out for having this corruption cleaned up."
Obama, meanwhile, talks reform. But he's backed by the Chicago machine. And Obama's own longtime friend and real estate fairy, Tony Rezko, has been convicted of corruption and is believed to be preparing to talk to the feds.
Mayoral brother Bill Daley has been rumored for a Cabinet post in an Obama administration, and is expected to be on the transition team if Obama is elected. Bill Daley will look to protect his brother first. Although Bill is a thoughtful politician, somehow I just don't see the phrase "Barack, we've gotta keep Pat Fitzgerald" on Billy's lips in the personnel meetings.
Another Chicago connection, U.S. Rep. Rahm Emanuel (D-Tomczak), is being rumored as a possible White House chief of staff. Emanuel would also look first to protect the mayor. Washington Beltway reporters won't tell you this, because they must figure that what happens in Chicago stays in Chicago, but a few years ago, Emanuel was elected with the help of a massive patronage army of stooges on the City Hall payroll who pounded the precincts.
The fellow who directed this army for Emanuel is the corrupt former city water boss Donald Tomczak. He now sits in federal prison in Duluth, Minn., while Emanuel prepares to reform us all. It was Fitzgerald's office that put Tomczak away.
Back in March, Obama visited the Tribune's editorial board. He said that if elected president, he would keep Fitzgerald in place.
"I still think he's doing a good job," said Obama. "I think he has been aggressive in putting the city on notice and the state on notice that he takes issues of public corruption seriously."
Does your wanting to keep Fitzgerald in the job threaten any other political entities here in Chicago?
"I can't speculate on that," Obama said then. "I can't."
But you can.
Thanks to John Kass
Monday, November 03, 2008
Was Frank "Lefty" Rosenthal a Snitch?
Back before he was mayor of Las Vegas, when he was the city's leading mob attorney, Oscar Goodman insisted he didn't represent snitches.
He represented Frank Rosenthal. Now that Rosenthal is dead, three former law enforcement sources with first-hand knowledge confirmed what was long suspected. Lefty Rosenthal was an FBI informant, whether his attorney knew it or not.
While Rosenthal was alive, no one would confirm it. Nobody wanted to be the one who got Lefty whacked. After he died of a heart attack in his Florida home Oct. 13 at the age of 79, it is confirmed Rosenthal was a "top echelon" informant, someone with firsthand knowledge of the top ranking mob bosses.
Rosenthal's code name was "Achilles," one source said. Was it a sly reference to the handsome Greek warrior who was invincible except for his heel? Or was he simply a heel? Sure beat the code name his mob buddies used when discussing him -- "Crazy."
I couldn't confirm exactly when he started informing to the FBI, but the relationship was lengthy and useful. His information helped the FBI develop a lot of organized crime and casino skimming cases.
Rosenthal was an informant even before the 1982 bombing of his Cadillac outside Tony Roma's restaurant on Sahara Avenue, one source said. After the bombing, the FBI tried to convince Rosenthal to enter the Witness Protection Program, but he refused.
Later, he told the Chicago Tribune he rebuffed the offer to become a federal witness. "It's just not my style. It doesn't fit into my principles." Instead, in 1983 he left Las Vegas, which had been his home since 1968, moving first to California, then Florida.
"He talked about everything and everyone, whether he had first-hand knowledge, like he did at the Stardust, or second- and third-hand knowledge like at the Tropicana," one source said.
Nobody had a definitive answer as to why Rosenthal would become a Chatty Cathy.
One source said Rosenthal was an expert handicapper. "He was a smart guy, he could see people were going down. As an oddsmaker, this was his chance to bet both sides of the game."
A second source said it was speculation, but "he may have felt he needed a way out at some point, and he knew cooperation was one way to get out."
Rosenthal was from Chicago, but since he was Jewish, he wasn't a made member of the Chicago Outfit, but he was a close mob associate. From childhood, he was friends with another mob watchdog, Anthony Spilotro, which ended with Spilotro's affair with Rosenthal's wife, Geri, the tale fictionalized in the movie "Casino."
When the mob needed someone to watch over its Las Vegas casino interests, Lefty was the man. From 1974 until 1979, San Diego businessman Allen Glick was the casino owner, but Rosenthal, despite his ever-changing titles, was the smooth operator.
Although federal officials claimed millions were skimmed from Glick's casinos, Rosenthal was never indicted. Nor did he testify against Midwest mob leaders as Glick did during the trial in Kansas City, which ended with mob boss convictions in 1986.
Las Vegas was an open city for the mob. No one organized crime family controlled all the casinos; different families shared the booty. The Chicago mob through the Argent Corp. had a foothold in the Stardust, Fremont, Hacienda and Marina.
The Tropicana was the playground of the Kansas City mob.
The boys in Detroit staked out the Aladdin.
The Dunes had ties with St. Louis mobsters.
Milwaukee bosses arranged for Glick's $62 million in loans from the Teamsters Union pension funds to buy Las Vegas hotels, then insisted Glick hire Rosenthal.
The indictments were many, so were the convictions. Despite the extensive wiretapping, Rosenthal was never charged, even though authorities described him as the man who "orchestrated the skim at the Stardust."
Inevitably, some of his buddies figured he wasn't charged because he was informing on them to the FBI. The late Joe Agosto -- entertainment director at the Tropicana and the Kansas City mob's guy on the scene -- was wiretapped in 1978 telling a Missouri mobster Rosenthal was "a snitch" who would "bite the hand that feeds him."
In John L. Smith's book "Of Rats and Men," Goodman said Kansas City mobster Nick Civella thought Rosenthal had become too friendly with the FBI. Civella called Goodman, his own attorney, and asked whether Rosenthal was crazy, apparently a code term for untrustworthy. "No, I don't think he's crazy," Goodman answered. "If I had agreed with Civella, Rosenthal would have been killed. I didn't know it at the time, but I apparently saved his life," Goodman told Smith.
Goodman started representing Rosenthal in 1971 after Rosenthal was indicted on illegal betting charges. In 1975, a Las Vegas federal judge dismissed the indictment against him, saying the wiretap was illegal and should have been an investigative tool of last resort.
That same year, Sheriff Ralph Lamb submitted an affidavit to help Rosenthal restore the rights he lost after pleading no contest in North Carolina to trying to change the point spread for a college basketball game with a bribe in 1960. The sheriff said he had known Rosenthal for five years and "he has evidenced the highest integrity and his reputation for truth and veracity in the Las Vegas community is unexcelled. Mr. Rosenthal is among the most respected persons in the Las Vegas gaming community."
Contrast that with Glick's Kansas City trial testimony 10 years later about a 1974 meeting with Rosenthal in the Stardust coffee shop. Glick said Rosenthal told him: "You're not my boss. And when I say you're not my boss, I'm talking not just from an administrative position, but your health. If you interfere with what's going on here, you will never leave this corporation alive."
As one of the recipients of the Rosenthal Glare, I can vividly imagine how those words were delivered.
Goodman represented Rosenthal for decades, fighting to keep him licensed to operate the Argent casinos. Higher courts ultimately overturned Rosenthal's victories in lower courts. Gaming regulators put him in the Black Book.
Throughout his life, Rosenthal denied being an FBI informant, but said it wasn't for want of trying by the FBI.
In 1976, Rosenthal told gaming officials that in 1960, when he was working in horse racing in Miami, J. Edgar Hoover sent an agent who asked him to provide information about gambling throughout the country. He said the agent promised him "near total immunity, except murder."
In 1977, he claimed he was the victim of harassment because he refused to supply information to the FBI.
As recently as 2006, when asked why he never snitched, Rosenthal said, "It all comes down to style and doing what you feel comfortable with. I never talked about or testified against anyone and never will."
He may not have testified, but he definitely talked.
As far as Goodman not representing snitches, one knowledgeable source said, "I think he represented more than one, whether he was aware of it or not."
Thanks to Jane Ann Morrison
He represented Frank Rosenthal. Now that Rosenthal is dead, three former law enforcement sources with first-hand knowledge confirmed what was long suspected. Lefty Rosenthal was an FBI informant, whether his attorney knew it or not.
While Rosenthal was alive, no one would confirm it. Nobody wanted to be the one who got Lefty whacked. After he died of a heart attack in his Florida home Oct. 13 at the age of 79, it is confirmed Rosenthal was a "top echelon" informant, someone with firsthand knowledge of the top ranking mob bosses.
Rosenthal's code name was "Achilles," one source said. Was it a sly reference to the handsome Greek warrior who was invincible except for his heel? Or was he simply a heel? Sure beat the code name his mob buddies used when discussing him -- "Crazy."
I couldn't confirm exactly when he started informing to the FBI, but the relationship was lengthy and useful. His information helped the FBI develop a lot of organized crime and casino skimming cases.
Rosenthal was an informant even before the 1982 bombing of his Cadillac outside Tony Roma's restaurant on Sahara Avenue, one source said. After the bombing, the FBI tried to convince Rosenthal to enter the Witness Protection Program, but he refused.
Later, he told the Chicago Tribune he rebuffed the offer to become a federal witness. "It's just not my style. It doesn't fit into my principles." Instead, in 1983 he left Las Vegas, which had been his home since 1968, moving first to California, then Florida.
"He talked about everything and everyone, whether he had first-hand knowledge, like he did at the Stardust, or second- and third-hand knowledge like at the Tropicana," one source said.
Nobody had a definitive answer as to why Rosenthal would become a Chatty Cathy.
One source said Rosenthal was an expert handicapper. "He was a smart guy, he could see people were going down. As an oddsmaker, this was his chance to bet both sides of the game."
A second source said it was speculation, but "he may have felt he needed a way out at some point, and he knew cooperation was one way to get out."
Rosenthal was from Chicago, but since he was Jewish, he wasn't a made member of the Chicago Outfit, but he was a close mob associate. From childhood, he was friends with another mob watchdog, Anthony Spilotro, which ended with Spilotro's affair with Rosenthal's wife, Geri, the tale fictionalized in the movie "Casino."
When the mob needed someone to watch over its Las Vegas casino interests, Lefty was the man. From 1974 until 1979, San Diego businessman Allen Glick was the casino owner, but Rosenthal, despite his ever-changing titles, was the smooth operator.
Although federal officials claimed millions were skimmed from Glick's casinos, Rosenthal was never indicted. Nor did he testify against Midwest mob leaders as Glick did during the trial in Kansas City, which ended with mob boss convictions in 1986.
Las Vegas was an open city for the mob. No one organized crime family controlled all the casinos; different families shared the booty. The Chicago mob through the Argent Corp. had a foothold in the Stardust, Fremont, Hacienda and Marina.
The Tropicana was the playground of the Kansas City mob.
The boys in Detroit staked out the Aladdin.
The Dunes had ties with St. Louis mobsters.
Milwaukee bosses arranged for Glick's $62 million in loans from the Teamsters Union pension funds to buy Las Vegas hotels, then insisted Glick hire Rosenthal.
The indictments were many, so were the convictions. Despite the extensive wiretapping, Rosenthal was never charged, even though authorities described him as the man who "orchestrated the skim at the Stardust."
Inevitably, some of his buddies figured he wasn't charged because he was informing on them to the FBI. The late Joe Agosto -- entertainment director at the Tropicana and the Kansas City mob's guy on the scene -- was wiretapped in 1978 telling a Missouri mobster Rosenthal was "a snitch" who would "bite the hand that feeds him."
In John L. Smith's book "Of Rats and Men," Goodman said Kansas City mobster Nick Civella thought Rosenthal had become too friendly with the FBI. Civella called Goodman, his own attorney, and asked whether Rosenthal was crazy, apparently a code term for untrustworthy. "No, I don't think he's crazy," Goodman answered. "If I had agreed with Civella, Rosenthal would have been killed. I didn't know it at the time, but I apparently saved his life," Goodman told Smith.
Goodman started representing Rosenthal in 1971 after Rosenthal was indicted on illegal betting charges. In 1975, a Las Vegas federal judge dismissed the indictment against him, saying the wiretap was illegal and should have been an investigative tool of last resort.
That same year, Sheriff Ralph Lamb submitted an affidavit to help Rosenthal restore the rights he lost after pleading no contest in North Carolina to trying to change the point spread for a college basketball game with a bribe in 1960. The sheriff said he had known Rosenthal for five years and "he has evidenced the highest integrity and his reputation for truth and veracity in the Las Vegas community is unexcelled. Mr. Rosenthal is among the most respected persons in the Las Vegas gaming community."
Contrast that with Glick's Kansas City trial testimony 10 years later about a 1974 meeting with Rosenthal in the Stardust coffee shop. Glick said Rosenthal told him: "You're not my boss. And when I say you're not my boss, I'm talking not just from an administrative position, but your health. If you interfere with what's going on here, you will never leave this corporation alive."
As one of the recipients of the Rosenthal Glare, I can vividly imagine how those words were delivered.
Goodman represented Rosenthal for decades, fighting to keep him licensed to operate the Argent casinos. Higher courts ultimately overturned Rosenthal's victories in lower courts. Gaming regulators put him in the Black Book.
Throughout his life, Rosenthal denied being an FBI informant, but said it wasn't for want of trying by the FBI.
In 1976, Rosenthal told gaming officials that in 1960, when he was working in horse racing in Miami, J. Edgar Hoover sent an agent who asked him to provide information about gambling throughout the country. He said the agent promised him "near total immunity, except murder."
In 1977, he claimed he was the victim of harassment because he refused to supply information to the FBI.
As recently as 2006, when asked why he never snitched, Rosenthal said, "It all comes down to style and doing what you feel comfortable with. I never talked about or testified against anyone and never will."
He may not have testified, but he definitely talked.
As far as Goodman not representing snitches, one knowledgeable source said, "I think he represented more than one, whether he was aware of it or not."
Thanks to Jane Ann Morrison
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