The Chicago Syndicate
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Friday, August 28, 2015

The Grandfather Clause

Some people think Phil Genovese, Jr. resembles his grandfather.

"Around the eyes, maybe," the world's newest novelist was saying the other day. Genovese has just had his first novel, "The Grandfather Clause," published by Author House.

It's the story of a legitimate New Jersey businessman who gets himself entwined in the underground world of his Mafia crime boss grandfatherThe Grandfather Clause.

Which is no stretch for the 50-something Jersey Shore resident, the grandson of Vito Genovese one of the most powerful mobsters in American history -- who controlled chunks of the gambling, loan-sharking and drug businesses of Staten Island.

Phil is far more a product of suburban America than of his grandfather's La Cosa Nostra, however. He was raised at the Shore by his mother and CPA father, usually seeing Don Vito only on Sundays when his grandfather would summon the family for dinner at his simple Atlantic Highlands home.

After graduating from Villanova University in the mid-1970s, the younger Genovese's first real job was at that stalwart of U.S. capitalism Johnson & Johnson. From there, he made a number of stops as an expert in moving cargo around the world.

Now he's with another Fortune 500 outfit, a corporation so huge it has offices in countries some of us have never heard of. He doesn't even like mentioning the company name while publicizing his book for fear of offending the higher ups.

"Separation of church and state," he explains. But there are flashbacks in his life that are undeniable.

He has a scene early in the very readable new book where the mob boss's young grandson stands on a chair to hand his grandfather ingredients for the tomato sauce that is being painstakingly prepared on the kitchen stove.

"That's a lot like it really was," he says of his childhood days before Vito Genovese was shipped off to federal prison, where he died in the late 1960s.

QUIET CONVERSATIONS

And he recalls vividly his grandfather's aging friends coming by on those Sundays for whispered conversations around cups of espresso. And of Vito's wake at the old Anderson's Funeral Home on Broad Street in Red Bank.

"The black FBI cars were parked across the street with the long camera lenses sticking out the windows," he said.

There were tales from his own father of living in Park Avenue luxury in the 1930s. "He used to see Eleanor Roosevelt on the elevator in his apartment house," said Genovese. And, maybe through some form of childhood osmosis, Phil learned something from his grandfather's business.

One lesson was that, just as in the legitimate world, in the mob, competency isn't always rewarded and messing up not always punished.

That was very much so in the case of Vincent "The Chin" Gigante.

Long before Gigante began famously roaming Greenwich Village's Carmine Street in bathrobe and slippers, he was a hit man for Don Vito. Needless to say, business was booming.

One day in May 1957, Genovese gave his underling a very important job. He was to travel uptown to the landmark Majestic Apartments on Central Park West. There, he was told he'd find one Frank Costello (real name Francesco Castiglia).

"I want him to disappear," Genovese said of his rival.

The young Gigante waited on the corner of 72nd Street until he saw Costello approaching the building's lobby door. Chin made his move, firing from close to point-blank range. He was high and wide. The bullet glanced off Costello's head, grazing him. Instead of imbedding deep into the skull of the fingered mobster, it would smack harmlessly into the marble lobby wall.

The bullet mark is still plain to see above the building entrance 50 years later.

"Botched job," Phil Genovese pointed out the other day. And one that began Don Vito's decline in organized crime.

"Chin screwed up, and what happened? He wound up eventually becoming the boss."

THE FAMILY ENDURES

The Genovese crime family didn't dry up and disappear when Don Vito died.

One of the bosses to follow Genovese was Funzi Tieri, a guy with deep Island connections who was known to be among the biggest bookmakers and loan-sharks in the country.

Once Tieri became the acting boss, you could find him almost daily at a restaurant on Third Avenue in Brooklyn.

One evening, he was met there by two Staten Island lawyers.

The older attorney, I'll call him Morty, had long handled Genovese bookmaking cases in the borough.

On this night, he'd brought a young friend along in hopes Tieri would toss some business to the new guy (who was clearly interested in climbing aboard what he saw as the Mafia gravy train).

Morty and the gangster drank wine and ate pasta and steaks and talked about old times for hours, while the younger attorney sat respectfully silent.

Late into the night, the older lawyer weaved as he was led to the car.

On the ride home to Todt Hill he told his young associate that he thought a good impression had been made.

"Kid," the conversation was remembered years later, "I think if you follow me, you're going to be OK."

The younger lawyer didn't answer.

He rolled to a stop in front of his mentor's house and hustled his rumpled associate out of the car as quickly as he could. Then he turned the car around and sped back over the Verrazano to the restaurant.

Tieri was still there when he arrived, and waved the now lone lawyer back to the table.

"What happened kid?" he wanted to know. "Where's your friend?"

"With all due respect, Mr. Tieri" the younger lawyer said, "I don't think Mort is up to doing the job for you anymore. Why don't you hire me, instead?"

And so, Tieri, who always admired a man who could focus on his own best interests, did just that.

Thanks to Cormac Gordon

The Story of the Kansas City Mob, The Mafia and the Machine

Forget Las Vegas and Chicago — for most of the 20th century Kansas City was a gangster’s paradise.

The details of politics’ cozy relationship with organized crime in Kansas City stunned Frank Hayde while he was researching his book, The Mafia and the Machine: The Story of the Kansas City Mob.

“I think people in Kansas City are hungry for a story that is exciting and colorful,” said Hayde, a Prairie Village native. “My story is not sensationalistic at all — all my facts come from documented sources. Organized crime in Kansas City was a phenomenon of the 20th century and we should view it in a historical standpoint — it wasn’t all violence and tabloid talk.”

Hayde’s book looks at the link between organized crime and politics in Kansas City during a 100-year span.

He became interested in the topic when he started reading about organized crime in other cities. There was always some mention of Kansas City, which sparked his interest and his research.

He spent the next few years traveling back and forth to Kansas City from his Colorado home, looking up old newspapers, local history books, police reports, government reports and court files.

It wasn’t easy — a lot of police files from the early 20th century had simply vanished because the police department had been corrupted by the Mafia.

Making the research understandable also took time. “I didn’t want a 500-page book with footnotes,” Hayde said, with a laugh. “I really wanted something readable yet hard-hitting.”

Hayde, a U.S. park ranger, doesn’t regret the long evening hours and weekends spent working on his book. Writing had been his favorite hobby since he graduated from the University of Kansas with an English degree in 1993.

Plus, his job has allowed him to maintain his writing skills. “In the park service, you have to write a lot of incident reports, which forces you to write in a concise, descriptive way,” he said. “Most officers hate writing reports, but I don’t it because it’s helped me write a book.”

Although his co-workers were surprised at his latest literary accomplishment, his parents in Prairie Village didn’t blink an eye.

History is a big part of their lives — Hayde’s family has been residing in the Kansas City area since the 1860s.

His father, John, believes he may have helped whet his son’s appetite for organized crime in Kansas City.

Seeing the mob in the news was a big part of John Hayde’s childhood — he remembers when the Union Station Massacre was splashed across the local newspapers. “Those years — the jazz years in Kansas City — were so exciting and my parents talked about it all the time, it was all over the newspapers,” he said. “I was absolutely intrigued to read Frank’s book and think, ‘My golly, it’s all coming alive in my memory, like a movie.’”

Frank Hayde hopes his writing experience won’t end at the Kansas City Mafia — there are several local stories he would love to tell.

For now, however, he just wants to take his literary career one step at a time.

Thanks to Jennifer Bhargava

Tuesday, August 25, 2015

Chop Shop is Now Available on DvD & Digital HD

Chop Shop"Chop Shop" follows a group of car thieves in Los Angeles as they rise from the criminal underground to become big-time international players.

Stars: Ana Ayora, John Bregar, Luis Moncada

Monday, August 24, 2015

Karen Finley Pleads Guilty to Bribery in Chicago Red-Light Camera Scam

The former chief executive officer of Chicago’s first red-light camera vendor pleaded guilty to a federal bribery charge.

As the CEO of Redflex Traffic Systems Inc., KAREN FINLEY funneled cash and other personal financial benefits to a City of Chicago official and his friend, knowing that the payments would help persuade the city to award red-light camera contracts to Redflex, according to a plea agreement. The benefits included golf trips, hotels and meals, as well as hiring the city official’s friend as a highly compensated contractor for Redflex, according to the plea agreement.

The benefits flowed over a nine-year period, from 2003 to 2011, during which time the city expanded the Digital Automated Red Light Enforcement Program by awarding millions of dollars in contracts to Phoenix-based Redflex, the plea agreement states.

Finley, 55, of Cave Creek, Ariz., pleaded guilty to one count of conspiracy to commit bribery in a federal program. U.S. District Judge Virginia Kendall scheduled a sentencing hearing for Feb. 18, 2016. Finley faces a maximum sentence of five years in prison, a maximum fine of $250,000 or twice the gross gain or gross loss from the offense, and mandatory restitution.

The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph M. Ferguson, Inspector General for the City of Chicago; and Stephen Boyd, Acting Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.

According to the plea agreement, Redflex first began competing for the Chicago contract in early 2003, while Finley was then Redflex’s vice president of operations. In the course of the competition, Finley learned that John Bills, who was then an assistant Chicago transportation commissioner in charge of the city’s red-light camera program, was championing Redflex by providing pointers and inside information to Redflex, the plea agreement states.

After Redflex was awarded its first Chicago contract in approximately late May 2003, Finley hired Bills’ friend Martin O’Malley as a contractor for Redflex, in an effort to ensure that Bills would continue to provide assistance to Redflex in future contract negotiations with the city. Finley admitted in the plea agreement that she knew O’Malley was a friend of Bills and that it was important to Bills that Redflex hire him. Finley personally signed O’Malley’s contract, which included provisions for lucrative increases in O’Malley’s compensation as new red-light cameras were added, according to the plea agreement.

After Finley became CEO of Redflex in 2007, O’Malley’s commissions escalated and Bills continued to assist the company, including having at least one red-light contract “sole-sourced” to Redflex, the plea agreement states. Finley states in the plea agreement that she knew Redflex was also paying personal expenses for Bills in order to buy his influence and expand Redflex’s business with the city. These expenses included meals, golf outings, rental cars, airline tickets to Phoenix, rooms at the Biltmore Hotel and other entertainment, according to the plea agreement.

Redflex’s technology uses cameras to automatically record and ticket drivers who run red lights. Between 2004 and 2008, the city paid Redflex approximately $25 million, according to the indictment against Finley, Bills and O’Malley. Bills was a voting member of the city’s Request For Proposal evaluation committee that recommended awarding the contracts to Redflex, the indictment states. In February 2008, the city awarded the “sole-sourced” contract to Redflex, paying the company approximately $33 million, according to the indictment. The city followed up that contract with another one the same month – agreeing to pay Redflex approximately $66 million for the installation of nearly 250 additional red-light cameras.

Bills, 54, of Chicago, was indicted on nine counts of mail fraud, three counts of wire fraud, three counts of federal program bribery, three counts of filing a false federal income tax return, and one count each of extortion and conspiracy to commit federal program bribery. He has pleaded not guilty and is scheduled to proceed to trial on Jan. 11, 2016, before Judge Kendall. Bills retired from the city in 2011.

O’Malley, 74, of Worth, pleaded guilty in December to one count of conspiracy to commit bribery in a federal program. No sentencing date has been set.

The government is represented by Assistant United States Attorney Laurie J. Barsella.

Thursday, August 20, 2015

Bomb Threat Against the Statue of Liberty @StatueEllisNPS

Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that JASON PAU.S.ITH was arrested in Lubbock, Texas, for communicating a hoax threat to bomb the Statue of Liberty that precipitated the evacuation of more than 3,200 people from Liberty Island in New York Harbor. SMITH is expected to be presented later today in federal court in the Northern District of Texas.

As alleged in the criminal Complaint unsealed in Manhattan federal court:

On April 24, 2015, SMITH initiated a call to the emergency 911 system (the “911 Call”) from his iPad using a service that assists hearing-impaired individuals with making and receiving telephone calls (the “Service”). In the 911 Call, SMITH identified himself as “Abdul Yasin,” described himself as an “ISI terrorist,” and threatened that “we” are preparing to “blow up” the Statue of Liberty.

Law enforcement officers responded to the threat that SMITH conveyed in the 911 Call, and conducted a sweep of the areas in and around the Statue of Liberty and Liberty Island with the aid of canine units trained to detect explosives. Canine units alerted to the area of the visitor lockers at the base of the Statue of Liberty, prompting law enforcement officers and emergency responders to evacuate the more than 3,200 people who were on Liberty Island at the time. Subsequently, the threat conveyed by SMITH was determined to be unfounded.

The iPad registered in SMITH’s name has used the Service to make other 911 calls, including at least two calls in May 2015 from a user who identified himself as “Isis allah Bomb maker” and who threatened to attack Times Square and kill police officers at the Brooklyn Bridge.

SMITH, 42, of Harts, West Virginia, is charged with one count of conveying false and misleading information and hoaxes, which carries a maximum sentence of five years in prison. The maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force—which principally consists of agents from the FBI and detectives from the NYPD. Mr. Bharara also thanked the United States Park Police for its assistance.

The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney David Zhou is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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