The Chicago Syndicate
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Friday, June 02, 2017

Feds want John "Pudgy" Matassa's union duties limited as reputed mobster awaits trial

Federal prosecutors want a reputed Chicago mob figure to curtail his day-to-day duties at a local laborers union while he faces charges stemming from an alleged scheme to fraudulently qualify for early retirement benefits.

John Matassa Jr., 65, pleaded not guilty Thursday to a 10-count indictment charging him with wire fraud, theft of government funds, embezzlement from a labor organization and making false entries in union records. The most serious charges carry a maximum of 20 years in prison if convicted.

U.S. District Judge Matthew Kennelly released Matassa on his own recognizance, requiring him to turn in his passport and firearm owner's identification card.

During the 10-minute hearing, Assistant U.S. Attorney Richard Rothblatt said prosecutors had a "sincere concern" that while awaiting trial, Matassa, secretary-treasurer of the Independent Union of Amalgamated Workers Local 711, would be free to communicate with witnesses in the case and continue to make decisions on how to spend union members' dues. Rothblatt said prosecutors would be asking for Matassa's communications and financial duties to be restricted while the case was pending.

Matassa's lawyer, Robert Michels, objected, saying the union has a board of trustees that is "fully capable" of making personnel decisions without court intervention.

Kennelly asked prosecutors to put the request in writing before he ruled.

Matassa, of Arlington Heights, appeared in court Thursday in a blue suit jacket and shirt with no tie. He spoke only to answer "Yes" in a husky voice when Kennelly asked him if he understood his rights.

An indictment handed down last week alleged that Matassa put his wife on Local 711's payroll in a do-nothing job in February 2013 while lowering his own salary, authorities charged. He then applied for the early retirement benefits from the Social Security Administration's Old-Age Insurance program, listing his reduced salary, enabling him to qualify for those benefits, the indictment alleged.

The charges also alleged that Matassa personally signed his wife's paychecks from the union and had them deposited into the couple's bank account.

In the late 1990s, Matassa, nicknamed "Pudgy," was kicked out as president of the Laborers Union Chicago local over his alleged extensive ties to organized crime.

Matassa's name also surfaced during the 2009 trial of a deputy U.S. marshal who was convicted of leaking sensitive information to a family friend with alleged mob ties, knowing the details would end up in the Outfit's hands.

The leak involved the then-secret cooperation of Outfit turncoat Nicholas Calabrese, whose testimony led to the convictions of numerous mob figures in the landmark Operation Family Secrets.

Thanks to Jason Meisner.

The First Vice Lord: Big Jim Colosemo and the Ladies of the Levee

My tendency to either skim books or proofread them (from early magazine days) has encountered a new one from former Cook County police chief Art Bilek that I can’t put down: The First Vice Lord: Big Jim Colosemo and the Ladies of the Levee.

This is a masterpiece of writing and excruciatingly accurate research that describes how Big Jim Colosimo rose from a lowly street-sweeper to the most prominent operator of whorehousesThe First Vice Lord: Big Jim Colosemo and the Ladies of the Levee, gambling joints, and low-life restaurants in the days leading up to Prohibition, with the collusion of the police and politicians and the managerial skills of John Torrio and Al Capone. When his increasingly notorious Colosimo’s CafĂ© combined with his growing desire for respectability, love for a young songbird, and failure to exploit the opportunities afforded by Prohibition, Torrio (we must presume) had him murdered in the vestibule of his elegant restaurant in 1920—and the band marched on.

Nowhere has Chicago’s graft and corruption been so carefully and entertainingly documented, with special attention to the backgrounds of Torrio and Capone, who worked hard to weld the new and competing bootlegging gangs into the greatest illicit booze empire the country has ever known--one that did not factionalize into Chicago’s bloody Beer Wars that began with the killing of North Side mob-leader Dean O’Banion four years later. My own work has concentrated on the years following Prohibition, so I’m especially happy to report that Bilek’s book explains what made the Roaring Twenties possible.

Reviewed by William J. Helmer, courtesy of On the Spot Journal.

Wednesday, May 31, 2017

19 Reputed Lucchese Crime Family Members Arrested by FBI

Federal agents in New York on Wednesday arrested 19 accused members of the Lucchese crime family, an alleged network of criminals who were the source of inspiration for the acclaimed mobster film "Goodfellas."

Defendants with nicknames including "Paulie Roast Beef" and "Joey Glasses" were among those arrested on charges ranging from murder to the illegal sale of cigarettes, according to court papers.

The crimes were committed in connection to a larger racketeering scheme run out of New York and dating back at least 17 years, prosecutors said.

The Lucchese family is considered to be one of five long-established Mafia organizations that operate in New York City and New Jersey.

The group was suspected of pulling off the notorious 1978 airport heist that inspired Martin Scorsese's 1990 Academy Award-winning film "Goodfellas." That $6 million heist remains one of the most infamous unsolved crimes in the United States.

A spokeswoman for the Federal Bureau of Investigation's New York office said agents had arrested about 20 people on Wednesday in an organized crime bust.

The defendants are expected to appear in federal court in White Plains.

Tuesday, May 30, 2017

El Narco: Inside Mexico's Criminal Insurgency

The world has watched, stunned, the bloodshed in Mexico. Forty thousand murdered since 2006; police chiefs shot within hours of taking office; mass graves comparable to those of civil wars; car bombs shattering storefronts; headless corpses heaped in town squares. And it is all because a few Americans are getting high. Or is it part of a worldwide shadow economy that threatens Mexico's democracy? The United States throws Black Hawk helicopters, DEA assistance, and lots of money at the problem. But in secret, Washington is at a loss. Who are these mysterious figures who threaten Mexico's democracy? What is El Narco?

El Narco is not a gang; it is a movement and an industry drawing in hundreds of thousands, from bullet-riddled barrios to marijuana-covered mountains. The conflict spawned by El Narco has given rise to paramilitary death squads battling from Guatemala to the Texas border (and sometimes beyond). In this "propulsive ... high-octane" book (Publishers Weekly), Ioan Grillo draws the first definitive portrait of Mexico's cartels and how they have radically transformed in the past decade.

El Narco: Inside Mexico's Criminal Insurgency.

Friday, May 26, 2017

Umbrella Mike: The True Story of the Chicago Gangster Behind the #Indy500 @IMS

Editor's note: Much of the information that follows is from the book "Umbrella Mike: The True Story of the Chicago Gangster Behind the Indy 500" by Brock Yates, which was published in 2006 by A Thunder's Mouth Press

As the son of a Chicago South Sider, I learned long ago that if you want to get something done, "It takes a guy who knows a guy."

Michael J. "Umbrella Mike" Boyle was just such a guy.

One of most colorful and controversial labor leaders in the history of this country, Boyle ruled the Windy City's most-powerful electricians' union for more than a half century.

In a time when corruption and lawlessness gripped the city, Mike Boyle walked the fine line between crooked politicians and the Chicago Mob. He did it all the way to the pinnacle of the American labor movement, constantly doing it in a shroud of mystery.

When he wasn't in Chicago dominating union politics, he was racing at Indianapolis with his Boyle Racing Team, winning the Indianapolis 500 three times.

The early years

Born in rural Minnesota in June of 1879, Michael J. Boyle was one of 11 children raised on a potato farm. His early years were spent in parochial schools until he joined the International Brotherhood of Electrical Workers (IBEW) at the age of 16.

By 1905 he became certified as a full-time electrician for the Chicago Tunnel Company, the firm responsible for the construction and management of some 60 miles of underground tunnels that linked Loop businesses -- 40 feet below the streets of downtown Chicago.

Boyle joined the IBEW in Chicago 1906, and by 1909 was a business manager for Local 134. By the 1920s he rose to the position of vice president within the local and ruled IBEW Local 134 with an iron fist, eventually amassing a union membership of 10,000 steadfastly loyal electricians.

Early in his career, "Umbrella Mike" Boyle reportedly earned his nickname for his ability to gather "tributes" or "donations," if you will, from contractors and other citizens who sought his much-needed support for various business projects.

Boyle would simply hang his umbrella on the edge of the bar at Johnson's Saloon, his unofficial headquarters on West Madison Street, when he entered early in the evening. Those requesting his favors or guidance would then drop cash in the unattended umbrella. At the end of the evening Boyle would then retrieve the cash-laden umbrella on his way out.

When once confronted on how he was able to amass a grand total of $350,000 on a weekly paycheck of $35, Boyle replied, "It was with great thrift."

Rising to the top in labor


The early 1900s was a period of great unrest between the corporate owners of American industry and the American worker. Long hours and low pay, coupled with abuse of the worker's rights, gave rise for the need of unions to protect the rights of working men and women.

As the country's industrial base prospered, workers across American united under the guidance of men who showed no fear in the face of overwhelming odds. Mike Boyle was such a man.

In one of the clearest examples of Boyle's power, in January of 1937 he yanked 450 of the 800 city-employed electrical workers off the job at 8 p.m., shutting off 94,558 municipal street lights, all the traffic lights in Chicago's Loop and put 38 of the 55 drawbridges that cross the Chicago River, in the up position.

Automobiles, streetcars and pedestrians were trapped, with the city's police force helpless as the power to their telephones was shut off, too. Two hours and 40 minutes later, Boyle acquiesced and turned the city back on, all with a simple phone call.

Racing at Indianapolis


Mike Boyle was a sportsman at heart who loved competition. That was what drew him to Indy-car racing. Once Boyle made up his mind that he wanted to go racing, he pursued his quest with abandon. Starting in 1926, Boyle first got his feet wet with a single-car entry in the 13th running of Indianapolis 500. In his first showing at Indianapolis, the No. 36 Boyle Valve Miller driven by Cliff Woodbury overcame a flat tire to capture third place, earning a purse of $5,000.

Over the next seven years Boyle entered a total of 15 cars in Indianapolis 500 competition with the best finish being a seventh place. He always entered top-notch equipment and hired the best drivers, such as Woodbury, Ralph Hepburn, Billy Arnold, Peter DePaolo and Lou Moore.

In 1934, all of Boyle's efforts came to fruition when "Wild Bill" Cummings in the No. 7 Boyle Products Special/Miller took the checkered flag in record time, earning a record purse of $29,725.

Having won the Indianapolis 500 only made "Umbrella Mike" thirst for more.

The next four years saw him enter 13 cars in the Memorial Day Classic, garnering three top-five finishes.

In 1939, having tired of trying to wring out more speed from the oversized Millers and Stevens-Offy he owned, Boyle reached across the Atlantic Ocean to a tiny Italian automobile company and without fanfare quietly purchased a Maserati 8CTF. The car was shipped to Boyle Racing headquarters in Indianapolis.

There Boyle turned the car over to his crew-chief, Harry "Cotton" Henning, a former riding mechanic. Henning was greatly respected by his peers and along with Boyle's money was able to outfit a pristinely kept racing operation that was second to none.

Then Boyle hired arguably the best "shoe" in the business, Indiana native Wilbur Shaw.

The marriage between Shaw and the Boyle Special Maserati was magic, dominating both the 1939 and 1940 Indianapolis 500s. Boyle's combined winnings for the two successive victories was $58,100. In addition, Boyle's other driver, the legendary Ted Horn, copped successive fourth place finishes to add another $9,325.

Following his two-year domination of the Indianapolis Motor Speedway, Mike Boyle raced again in 1941 and 1946, with the best results being a sixth and third-place finishes, respectively. But the war years took their toll on Boyle and he left Indy-car racing for good after 1946, while in his mid-60s.

During the course of his racing career, it was never clear where the money was coming from that funded one of the most well-equipped racing operations in the business. "Umbrella Mike's" livery on the cars was seemingly changing from season to season. Boyle Products, Boyle Valve, Boyle Racing Headquarters, the IBEW -- all these names were seen on the side of Mike Boyle's cars.

After retiring from Indy-car racing, "Umbrella Mike" still dominated union politics in Chicago through his role as a vice president of Local 134 of the IBEW. He died from heart failure in 1958 while in Miami Beach, Fla.

The Chicago Daily Tribune reported on the filing of Boyle's estate in probate court. It was revealed that his entire estate -- which included a 40-acre ranch in Texas -- was valued at only $19,000.

It would appear that "Umbrella Mike" left us with one more mystery.

Thanks to William LaDow

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