The U.S. Government participated in stopping General Motors from selling Saab to a Dutch automaker in December due to possible involvement in the deal by the Russian Mafia, a Swedish media outlet is reporting.
According to the Dagens Industri newspaper, the Swedish government asked its security force, the Sapo, to investigate the financial affairs of the Convers Group, a Russian investment group owned by the family of billionaire Alexander Antonov that was one of the major shareholders of Spyker when the Dutch automaker made the offer to buy Saab in December. That investigation reportedly turned up a "strong suspicion" of ties between the Antonovs and organized crime, information that was passed on to the FBI. The report goes on to say the the board of General Motors was then contacted by the U.S. Government and told to stop the sale.
Since then, Spyker founder Victor Muller has assumed ownership of the 4.6 million shares in Spyker that were controlled by the Convers Group, through a recently created holding group called Tenaci, which is run by Muller. This move apparently opened the door to another offer to purchase Saab, which was accepted by GM last week.
A spokesman for Spyker tells Foxnews.com that Victor Muller says the report is "nonsense and speculation."
In the weeks leading up to the sale several media outlets reported that GM was wary of the Antonovs' involvement over concerns that intellectual property rights could be transferred to competing automakers. When asked during a conference call following the agreement if GM was satisfied with the exclusion of the Antonov family from the deal, GM Vice President for Corporate Planning and Alliances John Smith responded, "as part of finding a sustainable solution for Saab, we are happy with the structures of the company that Victor Muller has put in place for Saab Spyker and I'll just leave it at that."
When contacted by Foxnews.com about the Dagens Industri story, General Motors issued the following statment:
"We are declining to comment in any way on the specifics of any negotiations, as they were covered by confidentiality agreements. Our interest was in finding a buyer that could create a viable future for Saab, and we believe we did."
Thanks to FoxNews
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Tuesday, February 02, 2010
Friday, January 29, 2010
Rudy Fratto Says that Not Paying Taxes for 7 Years Was Just a Mistake
Rudy Fratto, reputed top lieutenant in the Chicago Outfit, proudly told me just before his sentencing on Wednesday that he'd never before been convicted of a crime.
Given all the attention the FBI has paid to him over the years—plus the fear he inspires in wiseguys when they spot him in their rear-view mirrors and the silence at the mention of his name—that's surprising.
"Before this, no convictions. Not federal. Not state," said Fratto, 66, whose lucky streak ended when he pleaded guilty to evading federal income tax payments for seven years. "They make me out to be some bad guy. But really, John, I'm not that bad. I'm just a good guy who made a mistake."
Fratto's "mistake" was avoiding federal income taxes by funneling cash into a defunct trucking company until he got caught.
He didn't dress like some flashy HBO gangster. He wore a beige suit, dark tie, gray hair combed forward, glasses. He looked like a tired clerk.
Fratto's attorney, the esteemed criminal defense counsel Art Nasser, looked more the part. Art's big head of gleaming gray hair, the sharp blue suit, the tan, the white teeth, the sarcasm in the eyes. Nasser could wear a camel-hair coat draped over his shoulders, without putting his arms through, and get away with it.
In court, U.S. District Judge Matthew Kennelly sat through the tears and the familial pleas for mercy. He saw the truly heartbreaking sight of Fratto's sobbing teen-age sons begging to keep their dad out of prison. The boys, one in high school, one in college, used their neckties to dry their tears.
Then Fratto's wife, Kim, dressed in black, slowly hobbled up to the bench, gripping a walker. She sobbed that if Rudy went away, she'd lose the house and they'd be destitute. "And I've got two broken feet, judge, and now I'm going blind!" cried Kim, startling everyone in the courtroom.
Then Fratto spoke to the judge, admitted his crime, asked for mercy, and said, yes, indeed, his wife was going blind. "Yes, your honor, she told the doctor that she wanted to see the ocean, and he said she probably wouldn't see the ocean, or the beach, or whatever," Fratto said.
Kennelly announced he was forced to impose a prison sentence, rather than send a bad message to faithful taxpayers. "A year and a day," Kennelly said.
"A year and a day?" asked Nasser, who tried to stop a smile, but then his lips broke free of his teeth and there it was. "A year and a day, judge, means he'll be able to get to a halfway house in a few …"
Kennelly cut him off. "I'm not interested in that," the judge said brusquely. "That's up for the Bureau of Prisons to decide."
In federal court, a sentence of one year would have been worse than a year and a day. That's because federal sentencing guidelines mandate that if a sentence is one year or less, the defendant must serve every day of the time. But anything over a year and the defendant serves about 85 percent. But not all of it in prison. Fratto will do a few months, perhaps at the Club Fed in Oxford, Wis., where corrupt politicians will know who he is.
Chances are they've even nodded at him, respectfully, from across some steakhouse floor.
After a few months, Fratto will be moved to a federal halfway house in Chicago, sleeping there at night, spending his day working or whatever. Currently, Fratto is employed as a "technical consultant for the electronic entertainment industry," Nasser said.
Don't you love it? It sounds like a great trade once legalized video poker comes to Rush Street.
Not a word was mentioned in court about Fratto's reputed ties to organized crime, or his relationship with restaurant and nightclub owners. But some close to Fratto worry about other criminal investigations.
Before entering court, Fratto confronted Joe Fosco, a blogger son of a late Teamsters union official who has filed a civil suit against Fratto alleging that he'd been threatened. In the hallway, Fosco said Fratto had taken him for a ride through Melrose Park, and pointed at a sign for D&P Construction—controlled by the brother of Outfit boss John "No Nose" DiFronzo—while implying that DiFronzo wasn't happy with Fosco.
"It's all lies!" Fratto said, rounding on Fosco. "Get out of here, liar! You pervert! I'm not going into court if he's going in."
After the sentencing, the Fratto women, their tears dried by the court's mercy, confronted Fosco in the hallway. One of the women who'd just finished pleading for compassion and forgiveness showered Fosco with earthy insults.
"This is all a (expletive) joke," Rudy Fratto said, walking away.
That may be. He insists he's just a good guy who made one mistake, even if it happened seven years in a row.
Still, there's no mistaking the notion that federal investigators aren't finished with Fratto.
Thanks to John Kass
Given all the attention the FBI has paid to him over the years—plus the fear he inspires in wiseguys when they spot him in their rear-view mirrors and the silence at the mention of his name—that's surprising.
"Before this, no convictions. Not federal. Not state," said Fratto, 66, whose lucky streak ended when he pleaded guilty to evading federal income tax payments for seven years. "They make me out to be some bad guy. But really, John, I'm not that bad. I'm just a good guy who made a mistake."
Fratto's "mistake" was avoiding federal income taxes by funneling cash into a defunct trucking company until he got caught.
He didn't dress like some flashy HBO gangster. He wore a beige suit, dark tie, gray hair combed forward, glasses. He looked like a tired clerk.
Fratto's attorney, the esteemed criminal defense counsel Art Nasser, looked more the part. Art's big head of gleaming gray hair, the sharp blue suit, the tan, the white teeth, the sarcasm in the eyes. Nasser could wear a camel-hair coat draped over his shoulders, without putting his arms through, and get away with it.
In court, U.S. District Judge Matthew Kennelly sat through the tears and the familial pleas for mercy. He saw the truly heartbreaking sight of Fratto's sobbing teen-age sons begging to keep their dad out of prison. The boys, one in high school, one in college, used their neckties to dry their tears.
Then Fratto's wife, Kim, dressed in black, slowly hobbled up to the bench, gripping a walker. She sobbed that if Rudy went away, she'd lose the house and they'd be destitute. "And I've got two broken feet, judge, and now I'm going blind!" cried Kim, startling everyone in the courtroom.
Then Fratto spoke to the judge, admitted his crime, asked for mercy, and said, yes, indeed, his wife was going blind. "Yes, your honor, she told the doctor that she wanted to see the ocean, and he said she probably wouldn't see the ocean, or the beach, or whatever," Fratto said.
Kennelly announced he was forced to impose a prison sentence, rather than send a bad message to faithful taxpayers. "A year and a day," Kennelly said.
"A year and a day?" asked Nasser, who tried to stop a smile, but then his lips broke free of his teeth and there it was. "A year and a day, judge, means he'll be able to get to a halfway house in a few …"
Kennelly cut him off. "I'm not interested in that," the judge said brusquely. "That's up for the Bureau of Prisons to decide."
In federal court, a sentence of one year would have been worse than a year and a day. That's because federal sentencing guidelines mandate that if a sentence is one year or less, the defendant must serve every day of the time. But anything over a year and the defendant serves about 85 percent. But not all of it in prison. Fratto will do a few months, perhaps at the Club Fed in Oxford, Wis., where corrupt politicians will know who he is.
Chances are they've even nodded at him, respectfully, from across some steakhouse floor.
After a few months, Fratto will be moved to a federal halfway house in Chicago, sleeping there at night, spending his day working or whatever. Currently, Fratto is employed as a "technical consultant for the electronic entertainment industry," Nasser said.
Don't you love it? It sounds like a great trade once legalized video poker comes to Rush Street.
Not a word was mentioned in court about Fratto's reputed ties to organized crime, or his relationship with restaurant and nightclub owners. But some close to Fratto worry about other criminal investigations.
Before entering court, Fratto confronted Joe Fosco, a blogger son of a late Teamsters union official who has filed a civil suit against Fratto alleging that he'd been threatened. In the hallway, Fosco said Fratto had taken him for a ride through Melrose Park, and pointed at a sign for D&P Construction—controlled by the brother of Outfit boss John "No Nose" DiFronzo—while implying that DiFronzo wasn't happy with Fosco.
"It's all lies!" Fratto said, rounding on Fosco. "Get out of here, liar! You pervert! I'm not going into court if he's going in."
After the sentencing, the Fratto women, their tears dried by the court's mercy, confronted Fosco in the hallway. One of the women who'd just finished pleading for compassion and forgiveness showered Fosco with earthy insults.
"This is all a (expletive) joke," Rudy Fratto said, walking away.
That may be. He insists he's just a good guy who made one mistake, even if it happened seven years in a row.
Still, there's no mistaking the notion that federal investigators aren't finished with Fratto.
Thanks to John Kass
Rudy "I'm a Reputed Good Guy" Fratto Heads to Prison and Yells at Blogger
For years, Rudy Fratto has been dubbed a reputed top Chicago mobster. But Fratto sees its differently.
“I’m a reputed good guy,” Fratto said Wednesday, outside a federal courtroom, just moments after a judge sentenced him to prison for a year a day for tax evasion.
Indeed, U.S. District Judge Matthew Kennelly found Fratto “has done an outstanding job of raising a family,” but said Fratto’s crime was too serious to allow him to sentence Fratto to home confinement, as Fratto wanted, rather than prison.
Fratto, 66, of Darien, had avoided paying taxes on more than $800,000 on income over seven years by having various firms, including a gaming technology company, pay him through a bank account of a defunct trucking company that Fratto controlled.
“I was living beyond my means, and I was taking care of my family,” Fratto explained.
Fratto could have been sentenced up to 18 months in prison. By being sentenced to a year and a day, rather than a year, Fratto becomes eligible for good conduct time and could serve as little as 10 months of his sentence.
Fratto’s family tearfully requested that he not be sent to prison, citing him as the family’s role model.
Right after his sentencing, outside the courtroom, tensions ran high as Fratto and his family clashed with a blogger who attended the court hearing and has written negatively about Fratto. Irate family members had to be restrained as Fratto yelled at the blogger, “Get out of here.”
The tax evasion charge, investigated by the IRS, marks the first time Fratto’s been convicted of a crime.
Before his current problems, “I never been arrested for anything,” Fratto explained. “Not traffic. Not a DUI. Nothing.”
But he’s been a target of FBI investigators for years.
Most recently, federal investigators listed him as a top threat to Nick Calabrese, a former mob hitman who had turned into the star witness at the Family Secrets mob trial.
Fratto also allegedly attended a meeting in 2001 to approve the expansion of the video gambling territory of top mobsters James Marcello and his half-brother, Michael.
On Wednesday, Fratto tried to appear unruffled about the proceedings, but as he walked down the hall he shouted, “What a f------ joke!”
Thanks to Steve Warmbir
“I’m a reputed good guy,” Fratto said Wednesday, outside a federal courtroom, just moments after a judge sentenced him to prison for a year a day for tax evasion.
Indeed, U.S. District Judge Matthew Kennelly found Fratto “has done an outstanding job of raising a family,” but said Fratto’s crime was too serious to allow him to sentence Fratto to home confinement, as Fratto wanted, rather than prison.
Fratto, 66, of Darien, had avoided paying taxes on more than $800,000 on income over seven years by having various firms, including a gaming technology company, pay him through a bank account of a defunct trucking company that Fratto controlled.
“I was living beyond my means, and I was taking care of my family,” Fratto explained.
Fratto could have been sentenced up to 18 months in prison. By being sentenced to a year and a day, rather than a year, Fratto becomes eligible for good conduct time and could serve as little as 10 months of his sentence.
Fratto’s family tearfully requested that he not be sent to prison, citing him as the family’s role model.
Right after his sentencing, outside the courtroom, tensions ran high as Fratto and his family clashed with a blogger who attended the court hearing and has written negatively about Fratto. Irate family members had to be restrained as Fratto yelled at the blogger, “Get out of here.”
The tax evasion charge, investigated by the IRS, marks the first time Fratto’s been convicted of a crime.
Before his current problems, “I never been arrested for anything,” Fratto explained. “Not traffic. Not a DUI. Nothing.”
But he’s been a target of FBI investigators for years.
Most recently, federal investigators listed him as a top threat to Nick Calabrese, a former mob hitman who had turned into the star witness at the Family Secrets mob trial.
Fratto also allegedly attended a meeting in 2001 to approve the expansion of the video gambling territory of top mobsters James Marcello and his half-brother, Michael.
On Wednesday, Fratto tried to appear unruffled about the proceedings, but as he walked down the hall he shouted, “What a f------ joke!”
Thanks to Steve Warmbir
Wednesday, January 27, 2010
Rudy Fratto Sentenced to One Year and One Day in Federal Prison
Rudy Fratto, a reputed lieutenant in the Elmwood Park street crew of the Chicago Outfit, was sentenced in federal court today to a year and one day in prison for tax evasion.
Fratto, 65, of Darien, pleaded guilty last year to failing to report nearly $200,000 in income in 2005. Fratto, 65, admitted he had employers issue his checks to a defunct company that had an account he used for his expenses. Fratto said he did this between 2001 and 2007.
Fratto has been identified by authorities as an Outfit figure, and his name came up in recent years at the sentencing of corrupt Chicago police chief of detectives William Hanhardt and at the trial of former U.S. Marshal John Ambrose.
Thanks to Jeff Coen
Fratto, 65, of Darien, pleaded guilty last year to failing to report nearly $200,000 in income in 2005. Fratto, 65, admitted he had employers issue his checks to a defunct company that had an account he used for his expenses. Fratto said he did this between 2001 and 2007.
Fratto has been identified by authorities as an Outfit figure, and his name came up in recent years at the sentencing of corrupt Chicago police chief of detectives William Hanhardt and at the trial of former U.S. Marshal John Ambrose.
Thanks to Jeff Coen
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