The Chicago Syndicate
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Monday, May 22, 2017

Gangster Warlords: Drug Dollars, Killing Fields, and the New Politics of Latin America

In a ranch south of Texas, the man known as The Executioner dumps five hundred body parts in metal barrels. In Brazil's biggest city, a mysterious prisoner orders hit-men to gun down forty-one police officers and prison guards in two days. In southern Mexico, a crystal meth maker is venerated as a saint while imposing Old Testament justice on his enemies. A new kind of criminal kingpin has arisen: part CEO, part terrorist, and part rock star, unleashing guerrilla attacks, strong-arming governments and taking over much of the world's trade in narcotics, guns and humans. Who are these new masters of death? What personal qualities and life experiences have made them into such bloodthirsty leaders of men? What do they represent and stand for? What has happened in the Americas to allow them to grow and flourish? Author of the critically acclaimed El Narco: Inside Mexico's Criminal Insurgency, Ioan Grillo has covered Latin America since 2001, and gained access to every level of the cartel chain-of-command in what he calls the new battlefields of the Americas. Moving between militia-controlled ghettos and the halls of top policy-makers, Grillo provides a new and disturbing understanding of a war that has spiraled out of control - one that people across the political spectrum need to confront now. Gangster Warlords: Drug Dollars, Killing Fields, and the New Politics of Latin America, is the first definitive account of the crime wars now wracking Central and South America and the Caribbean.

Gangster Warlords: Drug Dollars, Killing Fields, and the New Politics of Latin America.

Thursday, May 18, 2017

Tamer Moumen, Former Crescent Ridge Capital Partners Hedge Fund Manager, Pleads Guilty to $9 Million Investment Fraud

A Leesburg man pleaded guilty to wire fraud in connection with his misuse of clients funds, some of which were invested through a purported hedge fund called Crescent Ridge Capital Partners.

According to the statement of facts filed with the plea agreement, Tamer Moumen, 39, defrauded over 50 clients between 2012 and 2017. Moumen falsely told investors that he was a successful trader who consistently beat the S&P500 and was overseeing tens of millions of dollars through his company, Crescent Ridge Capital Partners. Moumen encouraged dozens of clients, including many who were nearing retirement age, to liquidate their other investments and retirement accounts, and invest with him. Moumen did not tell investors that he actually had no experience managing a hedge fund, had a history of losing money in the securities market, and was relying on investor money to support his lifestyle and pay personal expenses. For example, Moumen used investor money to help finance the purchase of a $1 million personal residence in Leesburg, Virginia, a new Tesla, and to repay old investors. In nearly all instances, Moumen lost or spent his clients’ money within a matter of weeks or months of their original investment, but would conceal those facts by providing statements that showed the investment as steadily growing.

According to the statement of facts filed with the plea agreement, beginning in 2015, Moumen was involved with two fundraising efforts that solicited donations to benefit refugees, including a GoFundMe campaign and the Northern Virginia Refugee Fund. Moumen had sole control of the donated funds, some of which he transferred into accounts in his name, where the money was commingled with investor funds. Moumen used money in these accounts to pay personal expenses.

Moumen faces a maximum penalty of 20 years in prison when sentenced on July 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Tuesday, May 16, 2017

Scores: How I Opened the Hottest Strip Club in New York City, Was Extorted out of Millions by the Gambino Family, and Became One of the Most Successful Mafia Informants in FBI History

A gay man who created New York’s most notorious den of heterosexuality . . . an anxious, anything-but, hard-boiled lawyer who became one of the most successful undercover mob informants in history.

In this hilarious and fascinating account, Michael Blutrich takes you inside star-studded 1990s New York, mafia sit-downs, and the witness protection program.

Meet Michael D. Blutrich, founder of Scores, the hottest strip club in New York history. A resourceful lawyer at one of the city’s most respected firms, Blutrich fell into the skin trade almost by accident, but it was his legal savvy that made Scores the first club in Manhattan to feature lap dances and enabled him to neatly sidestep a law requiring dancers to wear pasties by instead covering their nipples with latex paint. Soon Scores, the club Howard Stern called “like being in a candy shop,” was a home away from home for everyone from sports superstars and Oscar-winning actors to pop singers and political notables alike.

The catch? The club was smack dab in John Gotti’s territory, and the mafia wanted a piece of the action. The Gambino family doesn’t take no for an answer . . . and neither, as it turns out, does the FBI. In his memoir, Blutrich recounts in detail how his beloved club became a hub for the mafia, and how he found himself caught up in an FBI investigation, sorely struggling to juggle roles of business owner and undercover spy.

As his life spiraled out of control, Blutrich would face the loss of almost everything dear to him. But whether marching a line of topless strippers as human exhibits into a trial to save the club’s liquor license or wearing wires to meetings with armed gangsters, he never lost his sense of humor or his nerve. In Scores: How I Opened the Hottest Strip Club in New York City, Was Extorted out of Millions by the Gambino Family, and Became One of the Most Successful Mafia Informants in FBI History, Blutrich finally tells all—from triumph to betrayal—in his own funny, self-deprecating voice.

Monday, May 15, 2017

Chicago Outfit Boss Rudy Fratto Stiffs Feds

Chicago Outfit boss Rudy Fratto has stopped paying restitution from a federal court tax evasion conviction and the government is going after him for more than $130,000, the ABC7 I-Team has learned.

The last time Rudy "The Chin" Fratto made news, he'd just been sentenced to prison for rigging $2 million in forklift contracts for a pair of trade shows at McCormick Place. That followed a tax evasion conviction-and court ordered restitution of $141,000. But the I-Team has learned Mr. Fratto still owes most of that. In newly filed court records, U.S. prosecutors say Fratto stopped paying his hefty bill more than a year ago.

Because of it, they say the government is "entitled to 25% of Fratto's disposable earnings for each pay period...until the debt is paid in full." Fratto claims he should only be paying 10 percent and there will be a federal court hearing on May 24.

Mr. Fratto is currently employed at a small electrical firm in Bartlett, "running pipe and wire," according to the company owner.

Such legit work may seem out of sync for someone considered prone to violence and over the years suspected by law enforcement in numerous crimes, including murder. Fratto has managed to avoid prosecution for acts of Outfit violence.

The hoodlum's jovial and engaging demeanor in public and outside court is in sharp contrast to the cut-throat position authorities say he holds in the mob. The west suburban Darien resident is an understudy of Outfit elder John "No Nose" DiFronzo, the mob's statesman of Elmwood Park, who is said to be in failing health.

Fratto has the mob in his DNA. He is the nephew of Louis "Cock-Eyed Louie" Fratto, so-named because his eyes were out of kilter. Cock-Eyed Louie, an associate of Al Capone and the Chicago Mob's emissary in Des Moines, Iowa Mob from 1930 until 1967.

Even if Fratto ponies up and starts paying his federal bill at garnishment rate he wants per week, it will take a while to whittle down what he owes. At 10 percent from his paycheck, he wouldn't pay off the debt for 25 years, at age 98.

Mr. Fratto's attorney has not responded to messages left by the I-Team. A spokesman for the United States Attorney in Chicago declined to comment on the case.

Thanks to Chuck Goudie.

Former Reputed Mobster Michael Magnafichi on Faith

Michael Magnafichi, once described by authorities as a “made” member of the Chicago mob, raised Catholic, says he prays every night before bed, believes in heaven for most people.

Nearly 20 years ago, an FBI document described Magnafichi as a “rising star” in Chicago’s underworld. How would he describe himself now, at 55?

“Well, not ‘up and coming in the mob,’ that’s for sure. I describe myself as first just enjoying life, I guess. . . . I still play a lot of golf.”

“I don’t do anything illegal any more. I was basically just in the gambling business . . . Truth of it is what’s legal today was illegal yesterday. Now, there’s gambling all over the place . . . It’s a thing people are doing at their office on their breaks,” going online.

Grew up in Bensenville, went to college for two years or so, including Northern Illinois University on a partial golf scholarship.

His dad Lee Magnafichi was a mob figure of some heft, a confidante of late Chicago Outfit overlord Tony Accardo and deceased boss Jackie Cerone. He died of cancer in 1989.

“We were a very structured family, meals at home . . . very normal.”

“Wasn’t beaten . . . over the head” with religion.

“We were born and raised Catholic, went to catechism” — in other words, Sunday school — “church every Sunday . . . My father didn’t go.” But his mom often did.

“She always . . . told us that you don’t have to go anywhere to have faith. You could say your prayers. As long as you believe in God and try to do good by God, God could hear you anywhere.”

His parish growing up was St. Alexis in Bensenville, though the family also attended Holy Ghost in Wood Dale sometimes.

Magnafichi’s dad didn’t discuss it but had religious beliefs. When he got ill, a friend’s wife gave him a saint’s medallion that he kept in his wallet.

“I always thought that religiously, that if you don’t pray during the good times and only in the bad times, that God wouldn’t hear you. But that’s not necessarily true.

“I’m no religious person. I don’t go to church . . . I do say prayers, though. I pray every night before I go to bed. . . . I say an Our Father, Act of Contrition and a Hail Mary. And I pray for . . . healthiness for all my friends and family.

“I believe that God does answer your prayers in His time. You can’t say a prayer, buy a Lotto ticket, say, ‘God make me win this Lotto.’

“I believe in, I don’t want to say karma, but it seems like good things happen to good people.”

How do mobsters reconcile religious convictions with a criminal life?

“A guy one time told me that God is not concerned with the person, he’s concerned with the person’s soul. So the person could do things that maybe aren’t God’s way, but, if the soul is good, that’s what God’s concerned with. And that’s how I think a lot of guys rolled with it, dealt with it that way.”

In other words, “This is my business, but this is my life, my life I choose to lead one way, my business” is different.

“I don’t know if that’s hypocritical, I don’t know if it just works for me, but it does.

“My dad was away when we were young. He went away for four years.

“I’m at peace with everything I’ve done . . . I wouldn’t have done it if I didn’t have peace with it . . . You can call that what you want, but that’s just my way.”

Once during mass as a kid, when the basket was being passed for donations, the priest said, “I want to hear a silent collection today” — meaning just bills, no change.

“You kind of lose respect for the Church. They’re a business, too.”

He’s godfather to several friends’ kids.

He stopped regularly going to church around 13. “I was sports-minded . . . I just didn’t make time for it.”

The 10 Commandments, “I’ve broken a few.”

“I’ve gotten caught up in some things, I’ve been in jail before . . . but I believe I paid the price for that.

“My idea of heaven would just be Augusta National, being able to play that every day.”

Believes most people make it to heaven.

But “I think what these terrorists are doing, I think that’s unforgivable . . . I don’t think God has a place for these people who kill innocent people for no reason.”

Thanks to Robert Herguth.

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