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Wednesday, September 23, 2009

The Mafia Princess Plans for Grand Opening of The Las Vegas Mob Exhibition

Plans for a Mafia exhibit in Las Vegas would include artifacts that lift the veil on how Mafia bosses really lived -- down to their favorite chairs, fancy china and shotguns.

The Las Vegas Mob Exhibition could find a home at a fancy hotel on the Strip as soon as next year, says Antoinette "The Mafia Princess" Giancana, the project spokeswoman and daughter of notorious Chicago Outfit boss, Sam "Momo" Giancana.

"We've got my father's things. All the living room furniture from when my mom and dad were married in 1933," she said. "Crystal and flatware. We've got a slot machine and one of his rifles. He used to hunt."

Similar artifacts that belonged to Bugsy Siegel and Meyer "the Mob's Accountant" Lansky also will be on display, Giancana said.

Of course, the exhibit will face competition from the government. Las Vegas mayor, former high-profile mob lawyer Oscar Goodman, has his city backing a $50 million mob museum in the works called the Las Vegas Museum of Organized Crime and Law Enforcement.

Giancana said she's not worried about competition.

"That place will be more documentary and police-oriented," she said. "Our exhibit will be more about family."

Thanks to Mark J. Konkol

Sunday, September 20, 2009

John DiFronzo, Reputed Chicago Mob Boss, Connected to Two Constuction Companies That Receive Substantial Government Payments

It’s called Omerta – the code of silence. It’s an old world Mob term that still applies here in modern-day Chicago. And when we started asking about two companies tied to the Mob, we saw it in action.

“Will you get the hell out of here?” one woman yelled when we asked. “Jesus Christ!”

“We just want to know who runs the business,” FOX Chicago investigator Dane Placko replied.

“None of your damned business!”

“D & P Construction” and “JKS Ventures” in Melrose Park are family-run businesses. The family is headed by John DiFronzo, the 81-year-old reputed boss of bosses of the Chicago Outfit.

Former FBI agent Jim Wagner spent his career busting the mob. Now, the head of the Chicago Crime Commission says the businesses are being run by convicted felons. When Dane Placko showed Wagner our video of the business owner, Wagner said he looked like the John DiFronzo he remembered: “He’s actually remained in very good shape for a man his age.”

Back in the day, John DiFronzo earned his nickname “No Nose” when a shard of glass clipped his nose during a gun battle with police. In the historic “Family Secrets” mob trial, a government turncoat testified that DiFronzo took part in the murders of mobsters Michael and Anthony Spilotro, who were beaten to death and buried in an Indiana cornfield. He was named in open court, but DiFronzo has never been charged with the crime.

FOX Chicago investigator Dane Placko spent several days over the summer watching John DiFronzo going in and out of D & P Construction – sometimes spending hours inside. When we finally talked to him, he appeared to be right at home.

"What do you do for D & P Construction and JKS?" Placko asked.

"Me? Nothing. Nothing," DiFronzo replied.

"Well we see you here quite often,” Placko continued.

"It's just my brother. It's my brother."

"Peter?" Placko asked.

"Yes, that's my family,” said DiFronzo.

"Who owns D & P?"

"His wife I think."

Josephine DiFronzo signs her name as the owner of the business. When Placko asked whether Mrs. DiFranzo was in, people at the business did not seem happy.

"Go away. Don't worry about who's here,” said one woman.

"They're not here. Go away," said a man.

Ultimately, FOX Chicago News never saw Josephine Spilotro at the company’s headquarters on the Northwest side. She stayed at their multi-million dollar home in Barrington, while her husband Peter went to work.

Peter DiFronzo also is reputedly a made member of the Chicago Outfit. And we saw Joseph DiFronzo, the youngest brother, who just got out of federal prison after he was caught running a massive indoor marijuana farm. When he arrived at D & P headquarters driving his brother’s car, we approached him to ask some questions.

That’s when a woman on the property told DiFronzo to leave the property rather than talk to us. “Go, go, go,” she yelled at him through the closed windows of DiFronzo’s Chrysler 300.

No one wants to talk about it, but the DiFronzo family clearly has a keen sense of business. Trucks hauling gravel, Dumpsters and fancy Cadillacs pass through the gates all day long. And millions of your tax dollars help keep it going.

"A basic rule of government and politics in the United States of America is you do business with reputable companies,” says Andy Shaw of Chicago’s Better Government Association. “You don't do business with gangsters, you don't do business with mobsters. You don't do business with people with a long record of felony convictions. You don't do that.”

Well, it turns out they do that in Bellwood, Stone Park, Norridge, Harwood Heights, Schiller Park and River Grove.

Suburbs and government agencies which have made payments to D&P Construction and JKSS Ventures since 2001 from the Freedom Of Information Act:

Bellwood: $1,013,295
Stone Park: $61,052
Schiller Park: $79,670
Franklin Park: $1,586,722
Elmwood Park: $787,462
Leyden Township: $59,218
River Grove: $384,416
Cook Co. Forest Preserve: $32,212
Melrose Park: $1,088,041
Stone Park: 61,021
Harwood Heights: $300
Norridge: $1,300
Oak Park: $7,497
Elmhurst: $8,640
Northlake: $75,556

Thanks to Dane Placko

Thursday, September 17, 2009

Federal Stimulus Money Going to the Mob?

Everybody is looking for stimulus money.

From bridge builders to food stamp recipients, from roofers to subway riders, from teachers to housing project residents, people are eager to feel some part of a tidal wave of federal dollars in their lives.

The mob is eager, too.

Federal and state investigators who track organized crime believe that some members have geared up to take advantage of the swift and enormous cash influx — if they have not already — looking, as the old Sicilian expression goes, to wet their beaks.

Nimble, innovative and with a seemingly boundless appetite for the taxpayer’s dollar, the mob’s more sophisticated cadre has plundered municipal, state and federal coffers for generations.

So the F. B. I. office in New York has conducted an extensive analysis of the money flowing into the area to create a blueprint of its vulnerabilities, a process, an official said, that is being continually updated. Also, some of the 28 inspectors general who have oversight of the federal agencies receiving stimulus money are considering having federal agents sit in on selected screening interviews of contractors to tell them that if they lie to a federal officer, they could be charged with a crime, officials briefed on the matter said.

“Because there is so much money involved, criminals will look to exploit the system,” said Guy Petrillo, chief of the criminal division in the United States attorney’s office in Manhattan, referring to the New York area’s five Mafia families.

Because the money is being widely dispersed — flowing to federal agencies, then to states and localities and then to contractors and smaller groups — opportunities for fraud abound at a level rarely seen. And despite recent improvements, the screening of contractors sometimes still presents a challenge for local, state and federal agencies, which time and again have failed to halt the flow of public money to companies accused of having ties to organized crime or having otherwise troubling histories.

Indeed, even with the mob’s power waning, some members have profited handsomely in the past few years on projects large and small. They have benefited from new baseball stadiums for the Yankees and the Mets, the city’s $3 billion water filtration plant and the post-9/11 cleanup at ground zero, as well as from work on federal buildings, state highways and city schools and playgrounds.

The audacity and accomplishment exhibited by some contractors seem to match the gusto they have for government work. One mob associate, convicted in 1994 in a case stemming from organized crime’s control of lucrative Housing Authority window replacement contracts, pleaded guilty nearly a decade later in a case involving window replacement work on city schools. After serving nearly three years in prison, he got in trouble again last year for improprieties involving another window replacement contract, this one at the same federal courthouse where he was convicted in 1994.

In another case, Mayor Rudolph W. Giuliani’s pet project to spruce up City Hall Park was delayed because two successive concrete contractors were found to have ties to organized crime. The mob also had long cornered the market on the city’s lucrative emergency snow removal contracts, as well as controlling city school bus contracts.

The distinctiveness of the immediate challenge surrounding the stimulus money is owed in part to the bill’s twin imperatives: Get a lot of money out and get it out as fast as possible. And it is compounded by the fact that law enforcement agencies like the F. B. I. and prosecutors’ offices are hip deep in the competing priorities of counterterrorism and the explosion of corporate and mortgage fraud cases.

Making matters worse, the money is flowing into familiar territory for those with a history of feeding at the public trough. Two of the largest portions of the stimulus pie in the New York City area are going to sectors of the economy — Medicaid and infrastructure projects — where the mob and Eastern European crime groups have flourished for decades, perfecting old schemes and developing new ones. And it is not just criminals who are causing concern. Several officials noted that in an area where close to two dozen state and city legislators have been indicted in recent years, the flow of stimulus funds through government agencies will provide ample opportunity for corrupt public employees.

Marc La Vorgna, a spokesman for Mayor Michael R. Bloomberg, whose administration will dole out nearly $1 billion for infrastructure projects and $2.5 billion in Medicaid and social service money, played down concerns about the vetting of contractors. The amounts to be awarded, he said, are far from astronomical for a city with a $60 billion budget and “robust fraud- and waste-prevention measures,” which include a staff that has doubled in eight years and an additional layer of review for stimulus contracts.

Mr. La Vorgna added, “The notion that the city’s vendor integrity mechanisms will somehow be taxed is false.”

State officials said they, too, were comfortable with their vetting procedures. Gov. David A. Paterson appointed a panel last month to coordinate the state’s antifraud efforts. And Congress has appropriated about $220 million in additional money to assist 23 of the 28 federal inspectors general involved in overseeing stimulus money, said Ed Pound, a spokesman for the Recovery Accountability and Transparency Board, the federal stimulus watchdog. But despite these measures, the speed with which the program has been put in place, along with what many officials have called insufficient oversight, has left some in law enforcement with grave concerns.

“It’s coming out without the internal controls in place,” said a law enforcement official who spoke on condition of anonymity because he was not authorized to discuss the issue publicly. “It’s like putting a bank robber in a toll booth.”

Thanks to William K. Rashbaum

Wednesday, September 16, 2009

Family Secrets Jury Deliberations Were Systematic, Often Contentious

The anonymous jury that decided the Family Secrets case was exhausted.

After methodically working through stacks of evidence to convict four mob figures and a former Chicago police officer of racketeering conspiracy, jurors had become bogged down during a second round of deliberations.

For the first time in three months, personality conflicts flared and jurors snapped at one another as they tried to decide if the four mobsters could be blamed for 18 gangland slayings stretching back decades.

"There were times when we all looked out the window for a while and no one talked to each other," one juror recalled.

Two years after the landmark Family Secrets mob trial gripped Chicago with its lurid details of mob mayhem, jurors who sat in judgment have finally broken their silence.

Two of the jurors -- a man and a woman -- spoke last week to a Tribune reporter at a Loop restaurant, insisting their identities remain secret out of continued concern for their safety.

Even two years after the summerlong trial in 2007, few of the jurors know the names of one another, they said. Their identities had been publicly concealed to protect them from possible retaliation by the Chicago syndicate and to shield them from the news media.

Instead, jurors addressed one another by nicknames. Some took on names of characters in the trial, while others won monikers that might have been passed on by the mob itself. A tall juror became "Shorty" and another was called "Puzzles" because he often sat solving them during trial breaks.

As they began their deliberations, jurors pored over their notes -- one juror filled 16 pads of paper -- and sorted through carts of prosecution evidence -- documents, photos and even ski masks worn by hit men.They wrote questions on large "post-it" notes and stuck them to the wall. When they ran out of space, jurors took down decorative pictures to make more room for their notes.

The two jurors said the panel began the initial deliberations by deciding whether a criminal enterprise known as the Chicago Outfit existed. Then they considered the alleged role of each of the defendants they had spent months staring at from the jury box.

"I found them all to look mild-mannered and pleasant and grandfatherly," the female juror said of defendants James Marcello, Joey "the Clown" Lombardo, Frank Calabrese Sr., Paul "the Indian" Schiro, and Anthony "Twan" Doyle, the ex-Chicago cop.

The man said most of the jurors began to figure out the importance of the trial after hearing about the infamous murders of mobster Anthony Spilotro and his brother, Michael, whose bodies were found in an Indiana cornfield in 1986.

The jurors said the first round of deliberations went smoothly. If anyone was uncertain, others would calmly go back over the testimony, according to the two. The evidence was strong, they said, and jurors took four days to convict all five defendants on a host of counts, voting by a show of hands.

The jury was surprised, though, to find out that their work was not over after three months, the two said.

They again placed notes on the wall, building a chart with the 18 murder victims on one side and the four mobsters on trial across the top. They placed check marks by the defendant's name if they felt he could be held responsible for a particular murder.

"There was a lot more talking and a lot more disagreement," the female juror said. "People were passionate about Round 2."

The jurors said the panel delved more deeply into the centerpiece of the prosecution case -- the testimony of mob turncoat Nicholas Calabrese. The former hit man admitted committing 14 murders himself and linked the four mobsters -- including his own brother -- to many of the gangland killings.

To some jurors, Calabrese was a tortured man who calmly named names as he recounted murders he was forced to commit with other Chicago Outfit members, but others on the jury wouldn't rely on his word alone to find blame in a killing. "Fundamentally, Nick was himself just like one of those guys in the room," the female juror said. "Some people just weren't able to get past it."

The result, the jurors said, were strained arguments and frazzled tempers.

The male juror was among the leaders who thought Calabrese was believable because other evidence corroborated his testimony. He recalled one instance when Calabrese fought tears on the witness stand as he recounted how an attempt to blow up the car of a businessman targeted by the mob almost resulted in killing the man's wife and child. "That was either the best acting job ever or somebody who's facing some serious demons," the juror said.

The jury wound up finding Lombardo, Marcello and Frank Calabrese Sr. responsible for 10 of the murders, but deadlocked on the other eight slayings. The two jurors said the jury deadlocked on murders that relied only on the word of Nicholas Calabrese.

The jury found Marcello responsible for the Spilotro killings, but it was close, they said. Calabrese testified Marcello drove him to a house where the brothers had been lured by the promise of mob promotions and helped beat them to death in the basement.

Calabrese had alone put Marcello at the murder scene, but the jurors said there was just enough evidence to buttress his account. Relatives of the Spilotros had testified that Marcello called their home the day the brothers were killed and that Michael Spilotro worried enough about the meeting to have left his jewelry at home. But there were discrepancies in the government evidence, the jurors noted. Calabrese had put a mobster at the murder scene who was actually under FBI surveillance at the time, making his presence there impossible. But the jurors said they chalked it up to a memory lapse and moved on, confident they had made the right decision.

The jurors said they weren't surprised to see Marcello, Lombardo and Frank Calabrese Sr. each sentenced to life in prison this year. Both said they supported the controversial 12-year prison sentence that U.S. District Judge James Zagel imposed on Nicholas Calabrese.

The male juror said he thought the judge had done a good job explaining his decision, even though some family members of victims found the sentence unfair. No one would dispute that Calabrese was a killer, he said. "You have to look at what he was able to bring forward on all of this -- he gave people answers," the juror said. "But I'm glad I didn't have to make that call."

Thanks to Jeff Coen

Has the Mob Left Philly?

A recent Inquirer article detailed the near extinction of the Philadelphia family of La Cosa Nostra. From approximately 80 members in the 1980s, the Philadelphia mob has dwindled to roughly 20 "soldiers," of whom almost half are in prison. Philadelphia has but 10 mafiosi left to do the work that once took eight times as many.

Law enforcement officials would have us believe that this is the result of good police work, but don't believe it. Like cockroaches, the mob cannot be eradicated once it moves in.

No, there can be only one reason for this outcome: The mafia has departed for greener pastures.

What further proof do we need that this is a city in crisis? Of all the miserable milestones along our path to perdition, this one, above all, should give us pause.

It means that we have so little going for us that we can't even attract and keep a decent-sized organized-crime family. Things have deteriorated so badly that not even these bums want to live and commit crimes here. And it's not like we are competing against the garden spots of America for the mob's attention. Back in the 1970s, when I was an eager young prosecutor in the Justice Department's Organized Crime and Racketeering Section, we had a strike force in every city with a mob family. These were places like Newark, Detroit, Cleveland, Buffalo, and Brooklyn. Philadelphia can't even hold its place in that lineup?

To put this into context, we have a municipal budget in free fall, threatened cutbacks of city services, and whole neighborhoods that resemble Dresden after the Royal Air Force paid it a visit. The deficit is so large that Philadelphia will soon have to call itself "the city that loves you back, due to budget cuts, every other Wednesday."

And now this: The mob is voting with its feet.

But where are the mobsters going? Have they moved to the suburbs? How would that work? Would it really be possible for some thug to claim with a straight face that he is the boss of the Bryn Mawr family? I mean, where do you stuff a body in a Prius? Don't the batteries get in the way?

Of course, these and other important questions are beside the real point: Once again, Philadelphia has placed last. As with our industrial base and business community, our underworld entrepreneurs have taken a hike, leaving us to try to put a happy face on what can only be considered a major source of civic embarrassment.

Thanks to George Parry

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