Tuesday, September 11, 2012
Sunday, September 09, 2012
Carl Gibson, Founder of US UNcut, to Discuss Wall Street Crimes and More on Crime Beat Radio
On September 13, Carl Gibson, founder of US UNcut discusses corporate greed, Wall Street crimes and Occupy Wall Street movement on Crime Beat Radio.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
Friday, September 07, 2012
Gunshots Hit Chicago School Bus Packed with Children
Police say no one was injured when a bullet ripped through a school bus taking students to a Catholic school in the South Deering neighborhood of Chicago on Friday.
The bus had 25 children onboard and was picking up two more children for school around 7:48 a.m. at 106th Street and Calhoun Avenue when shots rang out, Chicago Police Department News Affairs Officer Laura Kubiak told NBC News.
Kubiak said a bullet entered the bus through a passenger side window, shattered the glass as it went through a seat and exited through the driver's side window.
The school bus was headed to Our Lady of Guadalupe School at 9050 S. Burley Ave. when it was struck by what appeared to be a bullet, according to Ryan Blackburn from the Archdiocese of Chicago’s Officer of Catholic Schools. The incident happened about two miles from the school.
"Gratefully none of the students were harmed, and this incident demonstrates why the school's mission is so critical to its families," Blackburn told The Chicago Tribune. "Teaching our students to learn well and live as disciples of Jesus Christ is what we do, and any action that threatens our children's safety cannot be tolerated."
The bus driver told investigators he didn't know what had hit the bus, and drove the bus to the school, Kubiak said.
Wednesday, September 05, 2012
James Holmes is Profiled by Renown Forensic Psychiatrist and Tracker of Elusive Serial Killer Discusses Her Discovery
Tomorrow, on Crime Beat Radio, Paula Todd discusses how she tracked down an elusive serial killer and discovered a mother of three. Also, Dr. Michael Stone, world renowned forensic psychiatrist, will profile alleged mass murderer James Holmes and the Aurora, Colorado massacre.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
Tuesday, September 04, 2012
Griselda Blanco, "Godmother of Cocaine" Killed by Motorcycle Hitman
A 69-year-old woman known throughout the drug world as the "Godmother of Cocaine" was gunned down by an assassin on a motorcycle in Colombia Monday, according to international news reports.
Griselda Blanco, once listed alongside Pablo Escobar as one of the "most notorious drug lords of the 1980s" by the Drug Enforcement Administration, was fatally shot as she left a butcher's shop in western Medellin Monday afternoon, according to a report by Univision and El Colombiano. Colombia's El Espectador reported authorities are looking for Blanco's killers and are investigating possible motives for the killing.
Blanco served nearly 20 years in an American prison on drug trafficking charges and was at one point tied to as many as 40 murders in the U.S., according to a 1997 Senate testimony given by then-director of DEA international operations Michael Horn. Horn said that Blanco ordered a Florida mall shooting in 1979 that left two dead and four injured, and she apparently enjoyed her line of work.
"To foster her reputation as the 'Godmother' of cocaine, [Blanco] named her fourth son Michael Corleone, after the fictional mob character portrayed in the movie 'The Godfather,'" Horn said.
Court documents filed in 1988, three years after Blanco was caught, detail the shadowy, decade-long hunt for the queenpin that involved federal agents chasing false identities and checking Miami hospitals for gunshot wound victims that matched Blanco's description. But she wasn't able to elude them forever and after being captured in 1985 in Irvin, Calif. and serving nearly two decades behind bars in America, Blanco was released from prison and deported back to Colombia in 2004.
The DEA referred all inquiries into Blanco's death to Colombian authorities, telling ABC News, "she served her time here." The Colombian National Police did not immediately respond to requests for comment for this report.
Thanks to Lee Ferran.
Griselda Blanco, once listed alongside Pablo Escobar as one of the "most notorious drug lords of the 1980s" by the Drug Enforcement Administration, was fatally shot as she left a butcher's shop in western Medellin Monday afternoon, according to a report by Univision and El Colombiano. Colombia's El Espectador reported authorities are looking for Blanco's killers and are investigating possible motives for the killing.
Blanco served nearly 20 years in an American prison on drug trafficking charges and was at one point tied to as many as 40 murders in the U.S., according to a 1997 Senate testimony given by then-director of DEA international operations Michael Horn. Horn said that Blanco ordered a Florida mall shooting in 1979 that left two dead and four injured, and she apparently enjoyed her line of work.
"To foster her reputation as the 'Godmother' of cocaine, [Blanco] named her fourth son Michael Corleone, after the fictional mob character portrayed in the movie 'The Godfather,'" Horn said.
Court documents filed in 1988, three years after Blanco was caught, detail the shadowy, decade-long hunt for the queenpin that involved federal agents chasing false identities and checking Miami hospitals for gunshot wound victims that matched Blanco's description. But she wasn't able to elude them forever and after being captured in 1985 in Irvin, Calif. and serving nearly two decades behind bars in America, Blanco was released from prison and deported back to Colombia in 2004.
The DEA referred all inquiries into Blanco's death to Colombian authorities, telling ABC News, "she served her time here." The Colombian National Police did not immediately respond to requests for comment for this report.
Thanks to Lee Ferran.
Monday, September 03, 2012
Friday, August 31, 2012
Where Does The Mob Keep Its Money?
THE global financial crisis has been a blessing for organized crime. A series of recent scandals have exposed the connection between some of the biggest global banks and the seamy underworld of mobsters, smugglers, drug traffickers and arms dealers. American banks have profited from money laundering by Latin American drug cartels, while the European debt crisis has strengthened the grip of the loan sharks and speculators who control the vast underground economies in countries like Spain and Greece.
Mutually beneficial relationships between bankers and gangsters aren’t new, but what’s remarkable is their reach at the highest levels of global finance. In 2010, Wachovia admitted that it had essentially helped finance the murderous drug war in Mexico by failing to identify and stop illicit transactions. The bank, which was acquired by Wells Fargo during the financial crisis, agreed to pay $160 million in fines and penalties for tolerating the laundering, which occurred between 2004 and 2007.
Last month, Senate investigators found that HSBC had for a decade improperly facilitated transactions by Mexican drug traffickers, Saudi financiers with ties to Al Qaeda and Iranian bankers trying to circumvent United States sanctions. The bank set aside $700 million to cover fines, settlements and other expenses related to the inquiry, and its chief of compliance resigned.
ABN Amro, Barclays, Credit Suisse, Lloyds and ING have reached expensive settlements with regulators after admitting to executing the transactions of clients in disreputable countries like Cuba, Iran, Libya, Myanmar and Sudan.
Many of the illicit transactions preceded the 2008 crisis, but continuing turmoil in the banking industry created an opening for organized crime groups, enabling them to enrich themselves and grow in strength. In 2009, Antonio Maria Costa, an Italian economist who then led the United Nations Office on Drugs and Crime, told the British newspaper The Observer that “in many instances, the money from drugs was the only liquid investment capital” available to some banks at the height of the crisis. “Interbank loans were funded by money that originated from the drugs trade and other illegal activities,” he said. “There were signs that some banks were rescued that way.” The United Nations estimated that $1.6 trillion was laundered globally in 2009, of which about $580 billion was related to drug trafficking and other forms of organized crime.
A study last year by the Colombian economists Alejandro Gaviria and Daniel MejÃa concluded that the vast majority of profits from drug trafficking in Colombia were reaped by criminal syndicates in rich countries and laundered by banks in global financial centers like New York and London. They found that bank secrecy and privacy laws in Western countries often impeded transparency and made it easier for criminals to launder their money.
At a Congressional hearing in February, Jennifer Shasky Calvery, a Justice Department official in charge of monitoring money laundering, said that “banks in the U.S. are used to funnel massive amounts of illicit funds.” The laundering, she explained, typically occurs in three stages. First, illicit funds are directly deposited in banks or deposited after being smuggled out of the United States and then back in. Then comes “layering,” the process of separating criminal profits from their origin. Finally comes “integration,” the use of seemingly legitimate transactions to hide ill-gotten gains. Unfortunately, investigators too often focus on the cultivation, production and trafficking of narcotics while missing the bigger, more sophisticated financial activities of crime rings.
Mob financing via banks has ebbed and flowed over the years. In the late 1970s and early 1980s organized crime, which had previously dealt mainly in cash, started working its way into the banking system. This led authorities in Europe and America to take measures to slow international money laundering, prompting a temporary return to cash.
Then the flow reversed again, partly because of the fall of the Soviet Union and the ensuing Russian financial crisis. As early as the mid-1980s, the K.G.B., with help from the Russian mafia, had started hiding Communist Party assets abroad, as the journalist Robert I. Friedman has documented. Perhaps $600 billion had left Russia by the mid-1990s, contributing to the country’s impoverishment. Russian mafia leaders also took advantage of post-Soviet privatization to buy up state property. Then, in 1998, the ruble sharply depreciated, prompting a default on Russia’s public debt.
Although the United States cracked down on terrorist financing after the 9/11 attacks, instability in the financial system, like the Argentine debt default in 2001, continued to give banks an incentive to look the other way. My reporting on the ’Ndrangheta, the powerful criminal syndicate based in Southern Italy, found that much of the money laundering over the last decade simply shifted from America to Europe. The European debt crisis, now three years old, has further emboldened the mob.
IN Greece, as conventional bank lending has gotten tighter, more and more Greeks are relying on usurers. A variety of sources told Reuters last year that the illegal lending business in Greece involved between 5 billion and 10 billion euros each year. The loan-shark business has perhaps quadrupled since 2009 — some of the extortionists charge annualized interest rates starting at 60 percent. In Thessaloniki, the second largest city, the police broke up a criminal ring that was lending money at a weekly interest rate of 5 percent to 15 percent, with punishments for whoever didn’t pay up. According to the Greek Ministry of Finance, much of the illegal loan activity in Greece is connected to gangs from the Balkans and Eastern Europe.
Organized crime also dominates the black market for oil in Greece; perhaps three billion euros (about $3.8 billion) a year of contraband fuel courses through the country. Shipping is Greece’s premier industry, and the price of shipping fuel is set by law at one-third the price of fuel for cars and homes. So traffickers turn shipping fuel into more expensive home and automobile fuel. It is estimated that 20 percent of the gasoline sold in Greece is from the black market. The trafficking not only results in higher prices but also deprives the government of desperately needed revenue.
Greece’s political system is a “parliamentary mafiocracy,” the political expert Panos Kostakos told the energy news agency Oilprice.com earlier this year. “Greece has one of the largest black markets in Europe and the highest corruption levels in Europe,” he said. “There is a sovereign debt that does not mirror the real wealth of the average Greek family. What more evidence do we need to conclude that this is Greek mafia?”
Spain’s crisis, like Greece’s, was prefaced by years of mafia power and money and a lack of effectively enforced rules and regulations. At the moment, Spain is colonized by local criminal groups as well as by Italian, Russian, Colombian and Mexican organizations. Historically, Spain has been a shelter for Italian fugitives, although the situation changed with the enforcement of pan-European arrest warrants. Spanish anti-mafia laws have also improved, but the country continues to offer laundering opportunities, which only increased with the current economic crisis in Europe.
The Spanish real estate boom, which lasted from 1997 to 2007, was a godsend for criminal organizations, which invested dirty money in Iberian construction. Then, when home sales slowed and the building bubble burst, the mafia profited again — by buying up at bargain prices houses that people put on the market or that otherwise would have gone unsold.
In 2006, Spain’s central bank investigated the vast number of 500-euro bills in circulation. Criminal organizations favor these notes because they don’t take up much room; a 45-centimeter safe deposit box can fit up to 10 million euros. In 2010, British currency exchange offices stopped accepting 500-euro bills after discovering that 90 percent of transactions involving them were connected to criminal activities. Yet 500-euro bills still account for 70 percent of the value of all bank notes in Spain. And in Italy, the mafia can still count on 65 billion euros (about $82 billion) in liquid capital every year. Criminal organizations siphon 100 billion euros from the legal economy, a sum equivalent to 7 percent of G.D.P. — money that ends up in the hands of Mafiosi instead of sustaining the government or law-abiding Italians. “We will defeat the mafia by 2013,” Silvio Berlusconi, then the prime minister, declared in 2009. It was one of many unfulfilled promises. Mario Monti, the current prime minister, has stated that Italy’s dire financial situation is above all a consequence of tax evasion. He has said that even more drastic measures are needed to combat the underground economy generated by the mafia, which is destroying the legal economy.
Today’s mafias are global organizations. They operate everywhere, speak multiple languages, form overseas alliances and joint ventures, and make investments just like any other multinational company. You can’t take on multinational giants locally. Every country needs to do its part, for no country is immune. Organized crime must be hit in its economic engine, which all too often remains untouched because liquid capital is harder to trace and because in times of crisis, many, including the world’s major banks, find it too tempting to resist.
Thanks to Roberto Saviano, a journalist and the author of the book “Gomorrah.” He has lived under police protection since 2006, when he received death threats from organized crime figures in Italy. This essay was translated by Virginia Jewiss from the Italian.
Mutually beneficial relationships between bankers and gangsters aren’t new, but what’s remarkable is their reach at the highest levels of global finance. In 2010, Wachovia admitted that it had essentially helped finance the murderous drug war in Mexico by failing to identify and stop illicit transactions. The bank, which was acquired by Wells Fargo during the financial crisis, agreed to pay $160 million in fines and penalties for tolerating the laundering, which occurred between 2004 and 2007.
Last month, Senate investigators found that HSBC had for a decade improperly facilitated transactions by Mexican drug traffickers, Saudi financiers with ties to Al Qaeda and Iranian bankers trying to circumvent United States sanctions. The bank set aside $700 million to cover fines, settlements and other expenses related to the inquiry, and its chief of compliance resigned.
ABN Amro, Barclays, Credit Suisse, Lloyds and ING have reached expensive settlements with regulators after admitting to executing the transactions of clients in disreputable countries like Cuba, Iran, Libya, Myanmar and Sudan.
Many of the illicit transactions preceded the 2008 crisis, but continuing turmoil in the banking industry created an opening for organized crime groups, enabling them to enrich themselves and grow in strength. In 2009, Antonio Maria Costa, an Italian economist who then led the United Nations Office on Drugs and Crime, told the British newspaper The Observer that “in many instances, the money from drugs was the only liquid investment capital” available to some banks at the height of the crisis. “Interbank loans were funded by money that originated from the drugs trade and other illegal activities,” he said. “There were signs that some banks were rescued that way.” The United Nations estimated that $1.6 trillion was laundered globally in 2009, of which about $580 billion was related to drug trafficking and other forms of organized crime.
A study last year by the Colombian economists Alejandro Gaviria and Daniel MejÃa concluded that the vast majority of profits from drug trafficking in Colombia were reaped by criminal syndicates in rich countries and laundered by banks in global financial centers like New York and London. They found that bank secrecy and privacy laws in Western countries often impeded transparency and made it easier for criminals to launder their money.
At a Congressional hearing in February, Jennifer Shasky Calvery, a Justice Department official in charge of monitoring money laundering, said that “banks in the U.S. are used to funnel massive amounts of illicit funds.” The laundering, she explained, typically occurs in three stages. First, illicit funds are directly deposited in banks or deposited after being smuggled out of the United States and then back in. Then comes “layering,” the process of separating criminal profits from their origin. Finally comes “integration,” the use of seemingly legitimate transactions to hide ill-gotten gains. Unfortunately, investigators too often focus on the cultivation, production and trafficking of narcotics while missing the bigger, more sophisticated financial activities of crime rings.
Mob financing via banks has ebbed and flowed over the years. In the late 1970s and early 1980s organized crime, which had previously dealt mainly in cash, started working its way into the banking system. This led authorities in Europe and America to take measures to slow international money laundering, prompting a temporary return to cash.
Then the flow reversed again, partly because of the fall of the Soviet Union and the ensuing Russian financial crisis. As early as the mid-1980s, the K.G.B., with help from the Russian mafia, had started hiding Communist Party assets abroad, as the journalist Robert I. Friedman has documented. Perhaps $600 billion had left Russia by the mid-1990s, contributing to the country’s impoverishment. Russian mafia leaders also took advantage of post-Soviet privatization to buy up state property. Then, in 1998, the ruble sharply depreciated, prompting a default on Russia’s public debt.
Although the United States cracked down on terrorist financing after the 9/11 attacks, instability in the financial system, like the Argentine debt default in 2001, continued to give banks an incentive to look the other way. My reporting on the ’Ndrangheta, the powerful criminal syndicate based in Southern Italy, found that much of the money laundering over the last decade simply shifted from America to Europe. The European debt crisis, now three years old, has further emboldened the mob.
IN Greece, as conventional bank lending has gotten tighter, more and more Greeks are relying on usurers. A variety of sources told Reuters last year that the illegal lending business in Greece involved between 5 billion and 10 billion euros each year. The loan-shark business has perhaps quadrupled since 2009 — some of the extortionists charge annualized interest rates starting at 60 percent. In Thessaloniki, the second largest city, the police broke up a criminal ring that was lending money at a weekly interest rate of 5 percent to 15 percent, with punishments for whoever didn’t pay up. According to the Greek Ministry of Finance, much of the illegal loan activity in Greece is connected to gangs from the Balkans and Eastern Europe.
Organized crime also dominates the black market for oil in Greece; perhaps three billion euros (about $3.8 billion) a year of contraband fuel courses through the country. Shipping is Greece’s premier industry, and the price of shipping fuel is set by law at one-third the price of fuel for cars and homes. So traffickers turn shipping fuel into more expensive home and automobile fuel. It is estimated that 20 percent of the gasoline sold in Greece is from the black market. The trafficking not only results in higher prices but also deprives the government of desperately needed revenue.
Greece’s political system is a “parliamentary mafiocracy,” the political expert Panos Kostakos told the energy news agency Oilprice.com earlier this year. “Greece has one of the largest black markets in Europe and the highest corruption levels in Europe,” he said. “There is a sovereign debt that does not mirror the real wealth of the average Greek family. What more evidence do we need to conclude that this is Greek mafia?”
Spain’s crisis, like Greece’s, was prefaced by years of mafia power and money and a lack of effectively enforced rules and regulations. At the moment, Spain is colonized by local criminal groups as well as by Italian, Russian, Colombian and Mexican organizations. Historically, Spain has been a shelter for Italian fugitives, although the situation changed with the enforcement of pan-European arrest warrants. Spanish anti-mafia laws have also improved, but the country continues to offer laundering opportunities, which only increased with the current economic crisis in Europe.
The Spanish real estate boom, which lasted from 1997 to 2007, was a godsend for criminal organizations, which invested dirty money in Iberian construction. Then, when home sales slowed and the building bubble burst, the mafia profited again — by buying up at bargain prices houses that people put on the market or that otherwise would have gone unsold.
In 2006, Spain’s central bank investigated the vast number of 500-euro bills in circulation. Criminal organizations favor these notes because they don’t take up much room; a 45-centimeter safe deposit box can fit up to 10 million euros. In 2010, British currency exchange offices stopped accepting 500-euro bills after discovering that 90 percent of transactions involving them were connected to criminal activities. Yet 500-euro bills still account for 70 percent of the value of all bank notes in Spain. And in Italy, the mafia can still count on 65 billion euros (about $82 billion) in liquid capital every year. Criminal organizations siphon 100 billion euros from the legal economy, a sum equivalent to 7 percent of G.D.P. — money that ends up in the hands of Mafiosi instead of sustaining the government or law-abiding Italians. “We will defeat the mafia by 2013,” Silvio Berlusconi, then the prime minister, declared in 2009. It was one of many unfulfilled promises. Mario Monti, the current prime minister, has stated that Italy’s dire financial situation is above all a consequence of tax evasion. He has said that even more drastic measures are needed to combat the underground economy generated by the mafia, which is destroying the legal economy.
Today’s mafias are global organizations. They operate everywhere, speak multiple languages, form overseas alliances and joint ventures, and make investments just like any other multinational company. You can’t take on multinational giants locally. Every country needs to do its part, for no country is immune. Organized crime must be hit in its economic engine, which all too often remains untouched because liquid capital is harder to trace and because in times of crisis, many, including the world’s major banks, find it too tempting to resist.
Thanks to Roberto Saviano, a journalist and the author of the book “Gomorrah.” He has lived under police protection since 2006, when he received death threats from organized crime figures in Italy. This essay was translated by Virginia Jewiss from the Italian.
Thursday, August 30, 2012
Did the Judge Grant a Favor in Sentencing Jerry "The Monk" Scalise?
One of Chicago's most notorious mobsters was sentenced to federal prison Wednesday. But Jerry Scalise's sentence wasn't as long as it could have been.
In this Intelligence Report: Why a federal judge did a favor for Scalise's lawyer.
At the age of 74, Outfit legend Jerry "The Monk" Scalise has what federal prosecutors call an "unbroken history of criminal conduct." So, Scalise wouldn't seem to qualify for favors or special treatment by the justice system. But, Wednesday, that is just what he received when his lawyer asked for a favor in open court; and, even more surprising, received it.
Even as he was a special consultant on the Johnny Depp film about Dillinger, federal authorities say Jerry Scalise was plotting crimes for the Chicago Outfit.
The FBI had Scalise and his burglary crew under surveillance, and in 2010, the trio was arrested in mid-scheme. Scalise pleaded guilty to planning the take down of an armored car and a break-in at the home of a deceased Outfit boss.
Wednesday in court, prosecutors ticked off dozens of crimes Scalise has committed since 1960, including the 1980 theft of the 45-carat Marlborough diamond, still missing.
Assistant U.S. attorney Amarjeet Bhachu said Scalise did crimes for the thrill of hurting people and taking things, and requested a prison sentence of nearly 10 years.
Then Scalise's attorney Ed Genson asked for what he called "one favor for a man who probably doesn't deserve it": Mercy, the lowest legal sentence of eight years and 10 months.
Judge Harry Leinenweber, saying he probably shouldn't grant such a favor, did so anyway.
"It's unusual that I would ask," said Genson. "On the other hand, I don't usually step up for people who I've known for almost 40 years...Jerry Scalise is an extraordinarily exceptional man, exceptional family, he's erudite, he's gregarious, He's just an all-around good person. He's wasted his life. He knows it. This is sad for me because I'm fond of him. Hopefully he will have a few years out and make up for whatever he has done."
The I-Team asked Bhachu if he was surprised the judge granted the lawyer's requested favor. "Our response in court was that this is a man who is not deserving of mercy," said Bhachu. "He's a man who throughout his life has committed crimes and has appeared before any number of judges to be sentenced, and it seems from our position in court-- it seems somewhat incredible that you should be given mercy when you have devoted yourself over your life to the commission of criminal activity."
The rest of Jerry Scalise's mob crew is going to prison too. Wednesday, Robert Pullia received the same sentence as Scalise, after pleading guilty.
Previously, Art "The Genius" Rachel was convicted at trial and sentenced to about 8 and a half years.
Thanks to Chuck Goudie.
In this Intelligence Report: Why a federal judge did a favor for Scalise's lawyer.
At the age of 74, Outfit legend Jerry "The Monk" Scalise has what federal prosecutors call an "unbroken history of criminal conduct." So, Scalise wouldn't seem to qualify for favors or special treatment by the justice system. But, Wednesday, that is just what he received when his lawyer asked for a favor in open court; and, even more surprising, received it.
Even as he was a special consultant on the Johnny Depp film about Dillinger, federal authorities say Jerry Scalise was plotting crimes for the Chicago Outfit.
The FBI had Scalise and his burglary crew under surveillance, and in 2010, the trio was arrested in mid-scheme. Scalise pleaded guilty to planning the take down of an armored car and a break-in at the home of a deceased Outfit boss.
Wednesday in court, prosecutors ticked off dozens of crimes Scalise has committed since 1960, including the 1980 theft of the 45-carat Marlborough diamond, still missing.
Assistant U.S. attorney Amarjeet Bhachu said Scalise did crimes for the thrill of hurting people and taking things, and requested a prison sentence of nearly 10 years.
Then Scalise's attorney Ed Genson asked for what he called "one favor for a man who probably doesn't deserve it": Mercy, the lowest legal sentence of eight years and 10 months.
Judge Harry Leinenweber, saying he probably shouldn't grant such a favor, did so anyway.
"It's unusual that I would ask," said Genson. "On the other hand, I don't usually step up for people who I've known for almost 40 years...Jerry Scalise is an extraordinarily exceptional man, exceptional family, he's erudite, he's gregarious, He's just an all-around good person. He's wasted his life. He knows it. This is sad for me because I'm fond of him. Hopefully he will have a few years out and make up for whatever he has done."
The I-Team asked Bhachu if he was surprised the judge granted the lawyer's requested favor. "Our response in court was that this is a man who is not deserving of mercy," said Bhachu. "He's a man who throughout his life has committed crimes and has appeared before any number of judges to be sentenced, and it seems from our position in court-- it seems somewhat incredible that you should be given mercy when you have devoted yourself over your life to the commission of criminal activity."
The rest of Jerry Scalise's mob crew is going to prison too. Wednesday, Robert Pullia received the same sentence as Scalise, after pleading guilty.
Previously, Art "The Genius" Rachel was convicted at trial and sentenced to about 8 and a half years.
Thanks to Chuck Goudie.
Wednesday, August 29, 2012
Vice Presidential Nominee, Paul Ryan, Tied to Irish Mafia?
Forget Gangs of New York, the 'Irish mafia' has a new power base: Janesville, Wisconsin.
Home to representative Paul Ryan -- Mitt Romney's vice-presidential nominee -- this town of 64,000 people has suddenly been thrown into the spotlight as journalists the world over seek to get a handle on the new Sarah Palin. And, in anything that has been written, the Ryan family association with the so-called Irish mafia of Janesville invariably gets a mention. But as John Nichols -- a Washington correspondent for The Nation magazine -- explains, the Janesville mafia is not quite as sinister as it sounds.
"It's a slightly unfair term in that it's not like the Italian mafia," said Nichols. "It's not a criminal endeavour.
"Janesville was a factory town and a lot of Irish folks came there in the early years of the 20th Century to find jobs. Some of them started construction companies and, because they happened to be Irish, people started referring to them as the Irish mafia," he added.
The Ryan family -- owners of a major road-building company -- was just one of the families who fell under that umbrella.
"In general, you'd say they're known for business success," said Wisconsin state senator Tim Cullen, himself a member of one of the 'mafia' families. "But I think the big thing about being Irish for Paul is that he inherited a lot of the stereotypical Irish skills. He's a good-looking guy, he has a great smile and a great way of greeting people and talking with them," he added.
"He has all the Irish political skill. He's a 'hail fellow, well met' with the gift of the gab. All the clichés that people want to bring into play, he's got them all," agreed Nichols. But just how important is that connection today?
"They're old-school Irish in Janesville," said Nichols. "They like their St Patrick's Day parties. It's a very Catholic town and the people take their Irish connections pretty seriously ... but I wouldn't paint it like some neighbourhoods in New York or Chicago."
"[Ryan] played on his Irish ancestry a lot when he first ran for office," said Cullen, referring to an early campaign ad which showed the then 28-year-old Ryan walking among the tombstones of his ancestors in Janesville. "But he did that to associate himself with Janesville. He hadn't been in Wisconsin from the age of 18 to when he came back to run, so that TV ad was more about identifying him with the Ryan family history in Janesville," he added. And it worked. Ryan became one of the youngest ever members of the House of Representatives and has been re-elected with ease ever since.
Now one of the most influential Republicans in Congress (not to mention the pride and joy of his party's most conservative wing, the Tea Party) Ryan has made a name for himself as a man with a plan for the economy, and a very strict ideological take on government supports such as social security, Medicare and Medicaid.
"He's very conservative and just has complete faith that the free market system has all the answers," said Cullen who, despite coming from the other side of the divide, still speaks fondly of him.
So what would Ryan make of modern-day Ireland?
According to Cullen, there's little chance that he would approve of our "European-style" government. "Almost all his views are the antithesis of the social welfare system. He talks about not letting America become Greece, and you could almost substitute Ireland for Greece," said Cullen.
Regardless of what happens on election day in November, however, Cullen believes Ryan has been catapulted to a higher level in US politics for the rest of his career.
"If he comes out of this thing with a fairly good national reputation and Romney loses, Ryan will be the frontrunner for the 2016 presidential race," he said.
Thanks to Niamh Sweeney.
Home to representative Paul Ryan -- Mitt Romney's vice-presidential nominee -- this town of 64,000 people has suddenly been thrown into the spotlight as journalists the world over seek to get a handle on the new Sarah Palin. And, in anything that has been written, the Ryan family association with the so-called Irish mafia of Janesville invariably gets a mention. But as John Nichols -- a Washington correspondent for The Nation magazine -- explains, the Janesville mafia is not quite as sinister as it sounds.
"It's a slightly unfair term in that it's not like the Italian mafia," said Nichols. "It's not a criminal endeavour.
"Janesville was a factory town and a lot of Irish folks came there in the early years of the 20th Century to find jobs. Some of them started construction companies and, because they happened to be Irish, people started referring to them as the Irish mafia," he added.
The Ryan family -- owners of a major road-building company -- was just one of the families who fell under that umbrella.
"In general, you'd say they're known for business success," said Wisconsin state senator Tim Cullen, himself a member of one of the 'mafia' families. "But I think the big thing about being Irish for Paul is that he inherited a lot of the stereotypical Irish skills. He's a good-looking guy, he has a great smile and a great way of greeting people and talking with them," he added.
"He has all the Irish political skill. He's a 'hail fellow, well met' with the gift of the gab. All the clichés that people want to bring into play, he's got them all," agreed Nichols. But just how important is that connection today?
"They're old-school Irish in Janesville," said Nichols. "They like their St Patrick's Day parties. It's a very Catholic town and the people take their Irish connections pretty seriously ... but I wouldn't paint it like some neighbourhoods in New York or Chicago."
"[Ryan] played on his Irish ancestry a lot when he first ran for office," said Cullen, referring to an early campaign ad which showed the then 28-year-old Ryan walking among the tombstones of his ancestors in Janesville. "But he did that to associate himself with Janesville. He hadn't been in Wisconsin from the age of 18 to when he came back to run, so that TV ad was more about identifying him with the Ryan family history in Janesville," he added. And it worked. Ryan became one of the youngest ever members of the House of Representatives and has been re-elected with ease ever since.
Now one of the most influential Republicans in Congress (not to mention the pride and joy of his party's most conservative wing, the Tea Party) Ryan has made a name for himself as a man with a plan for the economy, and a very strict ideological take on government supports such as social security, Medicare and Medicaid.
"He's very conservative and just has complete faith that the free market system has all the answers," said Cullen who, despite coming from the other side of the divide, still speaks fondly of him.
So what would Ryan make of modern-day Ireland?
According to Cullen, there's little chance that he would approve of our "European-style" government. "Almost all his views are the antithesis of the social welfare system. He talks about not letting America become Greece, and you could almost substitute Ireland for Greece," said Cullen.
Regardless of what happens on election day in November, however, Cullen believes Ryan has been catapulted to a higher level in US politics for the rest of his career.
"If he comes out of this thing with a fairly good national reputation and Romney loses, Ryan will be the frontrunner for the 2016 presidential race," he said.
Thanks to Niamh Sweeney.
Monday, August 27, 2012
Mara Shalhoup Discusses "Big Meech and the Black Mafia Family" on Crime Beat Radio
Mara Shalhoup, journalist, discusses her riveting book about Big Meech and the Black Mafia Family on August 30th on Crime Beat Radio.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
Thursday, August 23, 2012
Julie Davis on Crime Beat Radio Tonight!
Julia Davis, a former Customs and border protection agent and a national security whistleblower, discusses her case against the Department of Homeland Security, as well as national security issues, tonight on Crime Beat Radio.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
On the air since January 28, 2011, Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is currently averaging 130,000 listeners plus each week, and the figure is growing. Crime Beat is hosted by award-winning crime writer and documentary producer Ron Chepesiuk (www.ronchepesiuk.com) and broadcast journalist and freelance writer Will Hryb.
Tuesday, August 21, 2012
Shadowbosses: Government Unions Control America and Rob Taxpayers Blind
Shadowbosses: Government Unions Control America and Rob Taxpayers Blind
tells a story of intrigue, drama, and corruption and reads like an organized crime novel. But it is actually a true story of how labor unions are infiltrating our government and corrupting our political process. This compelling and insightful book exposes how unions have organized federal, state, and local government employees without their consent, and how government employee unions are now a threat to our workers' freedoms, our free and fair elections, and even our American way of life. And, Mallory Factor reveals what's coming next: how unions are targeting millions of Americans--maybe even you--for forced unionization so that unions can collect billions more in forced dues and exert an even greater influence over American politics. A chilling expose, Shadowbosses is also a call to citizen action against those who really hold power in America today.
tells a story of intrigue, drama, and corruption and reads like an organized crime novel. But it is actually a true story of how labor unions are infiltrating our government and corrupting our political process. This compelling and insightful book exposes how unions have organized federal, state, and local government employees without their consent, and how government employee unions are now a threat to our workers' freedoms, our free and fair elections, and even our American way of life. And, Mallory Factor reveals what's coming next: how unions are targeting millions of Americans--maybe even you--for forced unionization so that unions can collect billions more in forced dues and exert an even greater influence over American politics. A chilling expose, Shadowbosses is also a call to citizen action against those who really hold power in America today.
Sunday, August 19, 2012
Cosa Nostra: A History of the Sicilian Mafia
Cosa Nostra vividly reconstructs the stories of the men and women who have lived and died in the mafia's shadow. It explains how the mafia began, how it responds to threats and challenges and how it maintains its grip on the society where it was born. Cosa Nostra takes us inside the thought-processes of the mafia's leaders and foot soldiers, its friends and its foes. Its cast of characters includes Antonino Giammona, the first man with a claim to the title 'boss of bosses'; Emanuele Notarbartolo, the honest and courageous banker who in 1893 became the mafia's first 'eminent corpse'; New York cop Joe Petrosino who underestimated the Sicilian mafia and paid for this with his life, and Bernardo 'the Tractor' Provenzano, the current boss of bosses who has been in hiding in Sicily since 1963.
Wednesday, August 15, 2012
Chicago Mob Challenged by Organized Crime Gangs from Eastern Europe
Organized crime wears a new face in Chicago — and the retiring special-agent-in-charge of the area’s FBI office says many times, it speaks a foreign language.
At the same time, the FBI’s Robert Grant said, the “Family Secrets” trial did not de-fang the Chicago Outfit.
“It’s like a cancer in remission,” or a bully who’s lost a few teeth, Grant said during the taping of Sunday’s WBBM Newsradio “At Issue” program, which airs at 9:30 a.m. and 9:30 p.m.
Grant said Eastern European-based organized crime has moved quickly into Chicago and now draws as much manpower and attention from his office as the Mafia.
“Fifteen years ago, we had two organized crime squads (in Chicago) focused strictly on the Outfit,” he said. “Now we have one that, a part of their apparatus is focused on the Outfit, but the other is focused almost exclusively on Eastern European organized crime activity.”
The Outfit, he said, has always been locally run, and has focused most of its illegal activities — gambling, prostitution, juice loans and the like — locally. Not so with these new gangs.
“Some of the actors are here in Chicago. A lot of the actors are in foreign countries,” he said.
Much of that is cyber and financial crime, he said. Grant said the FBI uses much the same techniques that it has in the past with locally-based organized crime and corrupt politicians, including wiretaps and hidden microphones, but said translating can sometimes be a problem. And he said the differences in laws can make it difficult to work with foreign law enforcement, no matter how good their intentions.
“When they pick up an organized crime figure and don’t have a place to put in in a witness protection program or they don’t have the ability to plea down their sentence in return for intelligence and cooperation that affects their ability to get inside of organized crime,” he said.
Grant said in some former Soviet-bloc countries, the distrust of clandestine agencies runs high because of the abuses of the KGB and similar organizations.
That is not to say that the problem is exclusively one with roots elsewhere.
Grant said street gangs also pose a growing problem and said the FBI continues to work closely with local law enforcement. He said that in all, more than 100 of the 500 agents in his office are devoted to organized crime activity.
Grant has headed the Chicago field office of the FBI for more than seven years, but will be stepping down Sept. 3 to work with the global security team at the Walt Disney Co., where he will assess security threats and recommend responses.
Thanks to "At Issue".
At the same time, the FBI’s Robert Grant said, the “Family Secrets” trial did not de-fang the Chicago Outfit.
“It’s like a cancer in remission,” or a bully who’s lost a few teeth, Grant said during the taping of Sunday’s WBBM Newsradio “At Issue” program, which airs at 9:30 a.m. and 9:30 p.m.
Grant said Eastern European-based organized crime has moved quickly into Chicago and now draws as much manpower and attention from his office as the Mafia.
“Fifteen years ago, we had two organized crime squads (in Chicago) focused strictly on the Outfit,” he said. “Now we have one that, a part of their apparatus is focused on the Outfit, but the other is focused almost exclusively on Eastern European organized crime activity.”
The Outfit, he said, has always been locally run, and has focused most of its illegal activities — gambling, prostitution, juice loans and the like — locally. Not so with these new gangs.
“Some of the actors are here in Chicago. A lot of the actors are in foreign countries,” he said.
Much of that is cyber and financial crime, he said. Grant said the FBI uses much the same techniques that it has in the past with locally-based organized crime and corrupt politicians, including wiretaps and hidden microphones, but said translating can sometimes be a problem. And he said the differences in laws can make it difficult to work with foreign law enforcement, no matter how good their intentions.
“When they pick up an organized crime figure and don’t have a place to put in in a witness protection program or they don’t have the ability to plea down their sentence in return for intelligence and cooperation that affects their ability to get inside of organized crime,” he said.
Grant said in some former Soviet-bloc countries, the distrust of clandestine agencies runs high because of the abuses of the KGB and similar organizations.
That is not to say that the problem is exclusively one with roots elsewhere.
Grant said street gangs also pose a growing problem and said the FBI continues to work closely with local law enforcement. He said that in all, more than 100 of the 500 agents in his office are devoted to organized crime activity.
Grant has headed the Chicago field office of the FBI for more than seven years, but will be stepping down Sept. 3 to work with the global security team at the Walt Disney Co., where he will assess security threats and recommend responses.
Thanks to "At Issue".
Tuesday, August 14, 2012
Saturday, August 04, 2012
The Artist, the Philosopher, and the Warrior: The Intersecting Lives of Da Vinci, Machiavelli, and Borgia and the World They Shaped
The Renaissance was a child of many fathers—none more important than the three iconic figures whose intersecting lives provide the basis for this astonishing work of narrative history: Leonardo Da Vinci, Niccolo Machiavelli and Cesar Borgia. Each could not have been more different. They would meet only for a short time in 1502 but the events that transpired, would significantly alter their perceptions—and the course of Western history.
In 1502, Italy was riven by conflict, with the city of Florence as the ultimate prize. Machiavelli, the consummate political manipulator, attempted to placate the savage Borgia by volunteering the services of Da Vinci as Borgia's chief military engineer. That autumn, the three men embarked together on a brief, perilous, and fateful journey through the mountains, remote villages and hill towns of the Italian Romagna—the details of which were revealed in Machiavelli's often-daily dispatches and Da Vinci's meticulous notebooks.
In a book that is at once a gripping adventure story and a trenchant analysis of how men make history, The Artist, the Philosopher and the Warrior limns each man's personality, their interactions, and the forces that shaped their world. Superbly written, meticulously researched, here is a work of narrative genius—whose subject is the very nature of genius itself.
In 1502, Italy was riven by conflict, with the city of Florence as the ultimate prize. Machiavelli, the consummate political manipulator, attempted to placate the savage Borgia by volunteering the services of Da Vinci as Borgia's chief military engineer. That autumn, the three men embarked together on a brief, perilous, and fateful journey through the mountains, remote villages and hill towns of the Italian Romagna—the details of which were revealed in Machiavelli's often-daily dispatches and Da Vinci's meticulous notebooks.
In a book that is at once a gripping adventure story and a trenchant analysis of how men make history, The Artist, the Philosopher and the Warrior limns each man's personality, their interactions, and the forces that shaped their world. Superbly written, meticulously researched, here is a work of narrative genius—whose subject is the very nature of genius itself.
Friday, August 03, 2012
Eugene Mullins, Former Cook County Official, Indicted on Kickback Charges
A former Cook County official was indicted on federal charges for allegedly fraudulently steering four county contracts, each just under $25,000, to four acquaintances and then soliciting a portion of the contract payments as a kickback from each of them, totaling approximately $34,700, federal and state law enforcement officials announced today. Eugene Mullins, who was director of the Cook County Department of Public Affairs and Communications between March 2008 and November 2010, was arrested today after being indicted on fraud and corruption charges. The four individuals who allegedly received county contracts and returned a portion of the payments to Mullins were each charged with misprision of a felony for allegedly concealing Mullins’ alleged fraud and kickback crimes.
Mullins, 48, of Chicago, was charged with four counts of wire fraud and four counts of soliciting kickbacks in a 12-count indictment that was returned by a federal grand jury yesterday and unsealed today when he appeared in U.S. District Court. He pleaded not guilty and was released on his own recognizance. A status hearing was scheduled for 8:45 a.m. on September 5, 2012, before U.S. District Judge Amy St. Eve.
The four co-defendants were not arrested and will be arraigned later on dates to be determined before Judge St. Eve. They are: Gary Render, 43, of Chicago; Michael L. Peery, 51, of Chicago; Clifford Borner, 45, of Chicago; and Kenneth Gregory Demos, 50, of Oak Park. Each was charged with one count of misprision of a felony.
The arrest and charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Patrick Blanchard, Cook County Inspector General. The charges stem from a joint state and federal corruption investigation that resulted previously in pending state charges against Carla Oglesby, a former Cook County official, who allegedly also illegally steered county contracts under $25,000.
Between January 2010 and January 2011, Mullins allegedly used his county position to submit and cause others to submit false documents to the county to assist the four co-defendants in obtaining professional and managerial service contracts and payment from the county. Mullins then solicited the individuals who obtained contracts for payments from the contract proceeds for his own benefit, the charges allege. Mullins also allegedly steered contracts under $25,000 to two other individuals who later returned the checks they received from the county in full and were not charged.
According to the indictment, county contracts for professional and managerial services under $25,000 required approval only by the county purchasing agent and did not require approval by the county Board of Commissioners. In 2010, Mullins’ public affairs and communications department, as well as other county departments, had access to federal funds and county money to promote awareness and increase response rates by county residents for the 2010 U.S. Census, to promote awareness and assist residents impacted by floods in 2008, and to promote and increase energy efficiency and conservation.
At various times in 2010, the indictment alleges that:
As part of an effort to conceal the scheme in late 2010 and early 2011, Mullins allegedly advised the contract recipients to falsely deny the circumstances surrounding the contracts if questioned by investigators. For example, he advised Peery not to say anything about the cash payment to Mullins and advised Borner to claim ownership of the invoice submitted in support of his census contract, the charges allege.
The indictment seeks forfeiture of approximately $34,700 from Mullins.
The government is being represented by Assistant U.S. Attorneys Lindsay Jenkins, Sarah Streicker, and Special Assistant U.S. Attorney Jack Blakey, chief of the Special Prosecutions Bureau of the Cook County State’s Attorney’s Office.
Each count of wire fraud carries a maximum penalty of 20 years in prison: each count of soliciting kickbacks carries a maximum of 10 years in prison; and misprision of a felony carries a maximum of three years in prison and all counts carry a $250,000 maximum fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Mullins, 48, of Chicago, was charged with four counts of wire fraud and four counts of soliciting kickbacks in a 12-count indictment that was returned by a federal grand jury yesterday and unsealed today when he appeared in U.S. District Court. He pleaded not guilty and was released on his own recognizance. A status hearing was scheduled for 8:45 a.m. on September 5, 2012, before U.S. District Judge Amy St. Eve.
The four co-defendants were not arrested and will be arraigned later on dates to be determined before Judge St. Eve. They are: Gary Render, 43, of Chicago; Michael L. Peery, 51, of Chicago; Clifford Borner, 45, of Chicago; and Kenneth Gregory Demos, 50, of Oak Park. Each was charged with one count of misprision of a felony.
The arrest and charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Patrick Blanchard, Cook County Inspector General. The charges stem from a joint state and federal corruption investigation that resulted previously in pending state charges against Carla Oglesby, a former Cook County official, who allegedly also illegally steered county contracts under $25,000.
Between January 2010 and January 2011, Mullins allegedly used his county position to submit and cause others to submit false documents to the county to assist the four co-defendants in obtaining professional and managerial service contracts and payment from the county. Mullins then solicited the individuals who obtained contracts for payments from the contract proceeds for his own benefit, the charges allege. Mullins also allegedly steered contracts under $25,000 to two other individuals who later returned the checks they received from the county in full and were not charged.
According to the indictment, county contracts for professional and managerial services under $25,000 required approval only by the county purchasing agent and did not require approval by the county Board of Commissioners. In 2010, Mullins’ public affairs and communications department, as well as other county departments, had access to federal funds and county money to promote awareness and increase response rates by county residents for the 2010 U.S. Census, to promote awareness and assist residents impacted by floods in 2008, and to promote and increase energy efficiency and conservation.
At various times in 2010, the indictment alleges that:
- Mullins schemed to fraudulently steer a $24,980 disaster grant contract to Render, who returned $9,000 to Mullins;
- Mullins schemed to fraudulently steer a $24,985 energy grant contract to Peery, who returned $12,000 to Mullins;
- Mullins schemed to fraudulently steer a $24,995 census contract to Borner, who returned $5,000 to Mullins; and
- Mullins schemed to fraudulently steer a $24,997 census contract to Demos, who returned $8,700 to Mullins.
As part of an effort to conceal the scheme in late 2010 and early 2011, Mullins allegedly advised the contract recipients to falsely deny the circumstances surrounding the contracts if questioned by investigators. For example, he advised Peery not to say anything about the cash payment to Mullins and advised Borner to claim ownership of the invoice submitted in support of his census contract, the charges allege.
The indictment seeks forfeiture of approximately $34,700 from Mullins.
The government is being represented by Assistant U.S. Attorneys Lindsay Jenkins, Sarah Streicker, and Special Assistant U.S. Attorney Jack Blakey, chief of the Special Prosecutions Bureau of the Cook County State’s Attorney’s Office.
Each count of wire fraud carries a maximum penalty of 20 years in prison: each count of soliciting kickbacks carries a maximum of 10 years in prison; and misprision of a felony carries a maximum of three years in prison and all counts carry a $250,000 maximum fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wednesday, August 01, 2012
Tuesday, July 31, 2012
Robert Grant, Head of FBI in Chicago, Retires to Join Disney
Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation (FBI) announced today his retirement from government service, effective September 3, 2012, culminating a 29-year career with the FBI.
Mr. Grant has served as the head of the Chicago Office, the FBI’s oldest field office, since January of 2005. He is the longest serving special agent in charge in the history of the Chicago Office, which was first established in 1908. In this role, Mr. Grant has overseen many significant investigations, including the arrest of former Illinois Governor Rod Blagojevich on corruption charges, the racketeering indictment and conviction of numerous high-ranking members of the Chicago Mafia as part of the “Family Secrets” case, and the arrest of two Chicago men on charges related to the 2008 terror attacks in Mumbai, India.
Mr. Grant entered on duty with the FBI in 1983 and has served in the Memphis, New York, and San Antonio Field Offices, along with several different assignments at FBI Headquarters in Washington, D.C., including Chief Inspector.
In announcing his retirement, Mr. Grant noted the many positive changes and transformation of the FBI during his career. Said Mr. Grant, “I have witnessed the FBI do some amazing things. It has grown and stretched in ways I never thought possible. What I have come to realize is there is almost nothing the FBI cannot do when it sets a proper course and supports its tremendous people. There isn’t a day that goes by where I am not impressed and amazed at the work of the men and women of this organization, who I will miss greatly.”
Mr. Grant has received numerous awards and commendations during his career and was a 2008 recipient of the Presidential Rank Service Award. Under his direction, the Chicago Office has been recognized by numerous civic and community organizations for outstanding investigative accomplishments and service to the community. Mr. Grant has accepted a position with the Walt Disney Company in Los Angeles, where he will be part of their Global Security Team.
Sunday, July 29, 2012
Agent Ronald Hosko Named Assistant Director of FBI Criminal Investigative Division
FBI Director Robert S. Mueller, III named Ronald T. Hosko assistant director of the Criminal Investigative Division (CID) at FBI Headquarters (FBIHQ). Mr. Hosko most recently served as special agent in charge of the Washington Field Office (WFO) Criminal Division.
Mr. Hosko began his career with the FBI as a special agent in 1984. His first assignment was to the Jackson Division, where he investigated drug-related matters, white-collar crime, and organized crime. In 1988, he was transferred to the Chicago Division, where he investigated white-collar and financial crimes in addition to serving on the SWAT team. He also spent several months working undercover in the Sourmash investigation, which targeted fraudulent commodities trading at the Chicago Board of Trade.
In 1992, Mr. Hosko began serving on the Chicago Violent Crimes Task Force, where he focused on violent crime and fugitive investigations until he was promoted to supervisor in 1995. In this role, he continued to serve on the task force while also leading investigations into various federal crimes.
In 2001, Mr. Hosko reported to the Critical Incident and Response Group, first as supervisor and then as unit chief of the Crisis Management Unit. In this role, he served as deputy to the Joint Operations Center commander during the Winter Olympics in Salt Lake City, Utah, and led the FBI in its interagency cooperation during the 2002 sniper shootings in Washington, D.C.
In 2003, Mr. Hosko was promoted to assistant special agent in charge of the Philadelphia Division, where he was responsible for investigations into criminal matters. While in this role, he led the division’s surveillance and technical operations, and he served as the program supervisor for crisis management. In 2005, Mr. Hosko served as the on-scene commander of FBI personnel deployed to Afghanistan in support of Operation Enduring Freedom. Later that year, he served as deputy to the senior fellow law enforcement official following Hurricane Katrina.
In February 2006, Mr. Hosko served as deputy on-scene commander for FBI personnel supporting the Winter Olympics in Turin, Italy. He was promoted to inspector in 2007, before being assigned to his most recent post with the Washington Field Office in 2010.
Mr. Hosko earned his Bachelor of Arts degree in psychology and criminal justice from East Stroudsburg University of Pennsylvania, where he graduated magna cum laude in 1980. He earned his Juris Doctorate from the Temple University in 1984.
Mr. Hosko began his career with the FBI as a special agent in 1984. His first assignment was to the Jackson Division, where he investigated drug-related matters, white-collar crime, and organized crime. In 1988, he was transferred to the Chicago Division, where he investigated white-collar and financial crimes in addition to serving on the SWAT team. He also spent several months working undercover in the Sourmash investigation, which targeted fraudulent commodities trading at the Chicago Board of Trade.
In 1992, Mr. Hosko began serving on the Chicago Violent Crimes Task Force, where he focused on violent crime and fugitive investigations until he was promoted to supervisor in 1995. In this role, he continued to serve on the task force while also leading investigations into various federal crimes.
In 2001, Mr. Hosko reported to the Critical Incident and Response Group, first as supervisor and then as unit chief of the Crisis Management Unit. In this role, he served as deputy to the Joint Operations Center commander during the Winter Olympics in Salt Lake City, Utah, and led the FBI in its interagency cooperation during the 2002 sniper shootings in Washington, D.C.
In 2003, Mr. Hosko was promoted to assistant special agent in charge of the Philadelphia Division, where he was responsible for investigations into criminal matters. While in this role, he led the division’s surveillance and technical operations, and he served as the program supervisor for crisis management. In 2005, Mr. Hosko served as the on-scene commander of FBI personnel deployed to Afghanistan in support of Operation Enduring Freedom. Later that year, he served as deputy to the senior fellow law enforcement official following Hurricane Katrina.
In February 2006, Mr. Hosko served as deputy on-scene commander for FBI personnel supporting the Winter Olympics in Turin, Italy. He was promoted to inspector in 2007, before being assigned to his most recent post with the Washington Field Office in 2010.
Mr. Hosko earned his Bachelor of Arts degree in psychology and criminal justice from East Stroudsburg University of Pennsylvania, where he graduated magna cum laude in 1980. He earned his Juris Doctorate from the Temple University in 1984.
Saturday, July 28, 2012
Reputed Chicago Fugitive, Jose Hernandez Saldana, Arrested in Los Angeles and Charged with Attempted Murder
The FBI’s Fugitive Task Force arrested a Lawndale man believed to have fled Chicago after shooting a man in the head at the residence of his estranged wife, announced Timothy Delaney, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Robert Grant, the Special Agent in Charge of the FBI’s Chicago’s Field Office.
According to a federal criminal complaint filed in U.S. District Court in Chicago, detectives with the Chicago Police Department (CPD) obtained an arrest warrant for Jose Hernandez Saldana, a Lawndale resident, based on CPD’s investigation that identified Saldana as the suspect in the September 15, 1994 shooting of an Illinois man at the residence of Saldana’s estranged wife in Chicago, Illinois. On September 16, 1994, Saldana was charged with one count of attempted murder in the Circuit Court of Cook County, Illinois.
Attempts to locate Saldana at the time were unsuccessful and investigators with the CPD and the FBI established evidence indicating that Saldana left the state of Illinois and had likely fled to his native country of Mexico.
In 2012, a Cold Case Unit with CPD’s Area South Division revisited the case and enlisted assistance from the FBI’s Violent Crimes Task Force in Chicago, which is comprised of FBI agents, CPD detectives, and Cook County Sheriff’s Police investigators. Detectives and agents learned that a relative of Saldana’s had been arrested recently and that the relative’s vehicle had been released to a man identified as Carlos Rosalio Gonzalez. Investigators suspected the relative identified as Gonzalez was, in fact, their suspect, Jose Saldana, using a false name.
The FBI’s Special Processing Center in Clarksburg, West Virginia, was contacted and compared Saldana’s fingerprints with the fingerprints on file for the California driver’s license being used by the man identified as Gonzalez. The analysis resulted in a positive match for Saldana and confirmed that Saldana had been using the name Gonzalez.
On July 19, 2012, a federal warrant for Saldana was obtained after he was charged in U.S. District Court in Chicago with unlawful flight to avoid prosecution (UFAP).
Members of the Los Angeles Fugitive Task Force, which is comprised of agents and officers with the FBI and the Los Angeles Police Department, arrested Saldana in Lawndale without incident on Friday, July 20, 2012.
Saldana is being held in the custody of the Los Angeles Police Department pending extradition by the Cook County State Attorney’s Office. It is anticipated that the United States government will dismiss the federal warrant charging Saldana with UFAP and that he will remain in custody in Illinois while he awaits prosecution.
The fugitive investigation was the result of cooperation by the FBI’s Chicago and Los Angeles Field Offices; the Chicago Police Department, Area South, Cold Case Unit; and the Los Angeles Police Department.
According to a federal criminal complaint filed in U.S. District Court in Chicago, detectives with the Chicago Police Department (CPD) obtained an arrest warrant for Jose Hernandez Saldana, a Lawndale resident, based on CPD’s investigation that identified Saldana as the suspect in the September 15, 1994 shooting of an Illinois man at the residence of Saldana’s estranged wife in Chicago, Illinois. On September 16, 1994, Saldana was charged with one count of attempted murder in the Circuit Court of Cook County, Illinois.
Attempts to locate Saldana at the time were unsuccessful and investigators with the CPD and the FBI established evidence indicating that Saldana left the state of Illinois and had likely fled to his native country of Mexico.
In 2012, a Cold Case Unit with CPD’s Area South Division revisited the case and enlisted assistance from the FBI’s Violent Crimes Task Force in Chicago, which is comprised of FBI agents, CPD detectives, and Cook County Sheriff’s Police investigators. Detectives and agents learned that a relative of Saldana’s had been arrested recently and that the relative’s vehicle had been released to a man identified as Carlos Rosalio Gonzalez. Investigators suspected the relative identified as Gonzalez was, in fact, their suspect, Jose Saldana, using a false name.
The FBI’s Special Processing Center in Clarksburg, West Virginia, was contacted and compared Saldana’s fingerprints with the fingerprints on file for the California driver’s license being used by the man identified as Gonzalez. The analysis resulted in a positive match for Saldana and confirmed that Saldana had been using the name Gonzalez.
On July 19, 2012, a federal warrant for Saldana was obtained after he was charged in U.S. District Court in Chicago with unlawful flight to avoid prosecution (UFAP).
Members of the Los Angeles Fugitive Task Force, which is comprised of agents and officers with the FBI and the Los Angeles Police Department, arrested Saldana in Lawndale without incident on Friday, July 20, 2012.
Saldana is being held in the custody of the Los Angeles Police Department pending extradition by the Cook County State Attorney’s Office. It is anticipated that the United States government will dismiss the federal warrant charging Saldana with UFAP and that he will remain in custody in Illinois while he awaits prosecution.
The fugitive investigation was the result of cooperation by the FBI’s Chicago and Los Angeles Field Offices; the Chicago Police Department, Area South, Cold Case Unit; and the Los Angeles Police Department.
Friday, July 27, 2012
Former Cook County Commissioner Joseph Mario Moreno and Former Chicago Alderman Ambrosio Medrano Among 8 Indicted for Alleged Corruption Scheme
Two former local public officials and five businessmen who were arrested last month on public corruption charges were formally indicted today for allegedly participating in one or more corruption schemes. A federal grand jury returned indictments against former Cook County Commissioner Joseph Mario Moreno, former Chicago Alderman Ambrosio Medrano, and six others that mirror the charges filed last month in criminal complaints. One of the defendants is a businessman charged for the first time for allegedly engaging in an extortion scheme with Moreno during his tenure as an elected public official.
The new defendant, Ronald Garcia, 53, of Lockport, owned and operated Chicago Medical Equipment & Supply Co., which was certified by Cook County as a minority business enterprise (MBE). Between March 2008 and July 2009, Moreno and Garcia allegedly conspired to extort a company that won a county contract to force it to use Garcia’s company as a minority subcontractor.
The indictments also allege the following bribery schemes that were charged last month:
A 10-count indictment returned today alleges that Moreno, a Cook County commissioner for 16 years until 2010, and Medrano, the former alderman who later worked on Moreno’s county staff, accepted bribes in return for using their influence as county officials to steer public contracts to businesses. This indictment charges the alleged bribery schemes involving the contracts for bandages and the alleged extortion to hire Garcia’s company, as well as Moreno’s alleged Cicero bribe.
Moreno, also known as “Mario Moreno,” 59, of Chicago, was charged with three counts of bribery, two counts of wire fraud, and one count each of extortion and conspiracy to commit extortion. Medrano, 58, of Chicago, was charged with two counts of wire fraud and one count each of bribery and conspiracy to commit bribery. Moreno and Medrano were both released on secured bonds following their arrests last month.
Also charged in the same indictment were:
Wozniak and the Lombardis—who were agents of Chasing Lions LLC, a disabled veterans-owned business in west suburban Lisle—were also released on bond following their arrests in June. All six defendant will be arraigned on dates to be determined in U.S. District Court.
The new allegations regarding Moreno and Garcia state that Garcia provided Moreno and his wife with a $100,000 home mortgage loan in July 2007. In November 2007, Cook County requested bids on a contract to assist county health facilities in reducing costs and increasing revenue. Company A submitted a bid that proposed using Garcia’s Chicago Medical company as a minority subcontractor, which was supported by Moreno. Company B submitted a bid that proposed using minority subcontractors but did not include Chicago Medical.
Moreno and Garcia allegedly conspired to use Moreno’s influence as a commissioner to take actions adverse to Company B’s attempts to obtain and maintain the county contract unless Company B used Chicago Medical as a subcontractor for that contract. During the time that Moreno allegedly was pressuring Company B, Garcia released the $100,000 mortgage even though Moreno had not fully repaid the loan. As a result of Moreno’s and Garcia’s actions, Company B paid Chicago Medical approximately $460,000, according to the indictment.
The indictment seeks forfeiture of approximately $100,000 from Moreno and approximately $460,000 from Garcia.
A second, single-count indictment was returned today against Medrano, James Barta, 70, of Fremont, Nebraska; and Gustavo Buenrostro, 49, of Arlington Heights, charging them each with conspiracy to commit bribery. Barta, the president and owner of Sav-Rx, a Fremont, Nebraska-based national provider of managed care prescription medication services; and Buenrostro, an associate of Barta and former employee of Sav-Rx, were also released on bond following their arrests. This indictment alleges that the defendants conspired to bribe an undercover FBI agent and a fictitious official of the “County A” hospital system—with Barta allegedly making a $6,500 payment to the undercover agent last month—to do business with Sav-Rx. Medrano, Barta, and Buenrostro will be arraigned on dates to be determined in this case.
The indictments were announced by Gary S. Shapiro, Acting United States Attorney for the Northen District of Illinois; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas Jankowski, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The FBI’s Chicago City Public Corruption Task Force led the investigation with assistance from the Chicago Police Department’s Internal Affairs Division, a task force member.
In both cases, the government is represented by Assistant U.S. Attorneys Christopher J. Stetler and Steven Grimes.
The charges in the indictments carry the following maximum penalties on each count: wire fraud, extortion, and extortion conspiracy—20 years in prison and a $250,000 fine; bribery—10 years in prison and a $250,000 fine; and conspiracy to commit bribery—five years in prison and a $250,000 fine. The court may also impose a fine on the wire fraud counts totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The new defendant, Ronald Garcia, 53, of Lockport, owned and operated Chicago Medical Equipment & Supply Co., which was certified by Cook County as a minority business enterprise (MBE). Between March 2008 and July 2009, Moreno and Garcia allegedly conspired to extort a company that won a county contract to force it to use Garcia’s company as a minority subcontractor.
The indictments also allege the following bribery schemes that were charged last month:
- an alleged effort by Moreno, Medrano, and two Chicago area businessmen to use bribery and kickbacks to sell bandages to public hospitals, including Cook County’s John H. Stroger Hospital;
- an alleged effort by Medrano and two other businessmen, including the owner of a Nebraska-based provider of prescription drug services that claims 11 million subscribers, to use bribery and kickbacks to obtain business from an unnamed out-of-state hospital system; and
- Moreno’s alleged acceptance of $5,000 as part of a bribe to ensure development of a waste transfer station in suburban Cicero while he sat on a town economic development panel.
A 10-count indictment returned today alleges that Moreno, a Cook County commissioner for 16 years until 2010, and Medrano, the former alderman who later worked on Moreno’s county staff, accepted bribes in return for using their influence as county officials to steer public contracts to businesses. This indictment charges the alleged bribery schemes involving the contracts for bandages and the alleged extortion to hire Garcia’s company, as well as Moreno’s alleged Cicero bribe.
Moreno, also known as “Mario Moreno,” 59, of Chicago, was charged with three counts of bribery, two counts of wire fraud, and one count each of extortion and conspiracy to commit extortion. Medrano, 58, of Chicago, was charged with two counts of wire fraud and one count each of bribery and conspiracy to commit bribery. Moreno and Medrano were both released on secured bonds following their arrests last month.
Also charged in the same indictment were:
- Stanley Wozniak, 49, of Chicago; two counts of wire fraud and one count of bribery;
- Gerald W. Lombardi, also known as “Jerry Lombardi, Sr.,” 59, of Darien; two counts of wire fraud and one count each of bribery and conspiracy to commit bribery;
- Jerry A. Lombardi, Gerald Lombardi’s son, 33, of Downers Grove; one count of conspiracy to commit bribery; and
- Garcia; one count each of extortion, conspiracy to commit extortion, and bribery.
Wozniak and the Lombardis—who were agents of Chasing Lions LLC, a disabled veterans-owned business in west suburban Lisle—were also released on bond following their arrests in June. All six defendant will be arraigned on dates to be determined in U.S. District Court.
The new allegations regarding Moreno and Garcia state that Garcia provided Moreno and his wife with a $100,000 home mortgage loan in July 2007. In November 2007, Cook County requested bids on a contract to assist county health facilities in reducing costs and increasing revenue. Company A submitted a bid that proposed using Garcia’s Chicago Medical company as a minority subcontractor, which was supported by Moreno. Company B submitted a bid that proposed using minority subcontractors but did not include Chicago Medical.
Moreno and Garcia allegedly conspired to use Moreno’s influence as a commissioner to take actions adverse to Company B’s attempts to obtain and maintain the county contract unless Company B used Chicago Medical as a subcontractor for that contract. During the time that Moreno allegedly was pressuring Company B, Garcia released the $100,000 mortgage even though Moreno had not fully repaid the loan. As a result of Moreno’s and Garcia’s actions, Company B paid Chicago Medical approximately $460,000, according to the indictment.
The indictment seeks forfeiture of approximately $100,000 from Moreno and approximately $460,000 from Garcia.
A second, single-count indictment was returned today against Medrano, James Barta, 70, of Fremont, Nebraska; and Gustavo Buenrostro, 49, of Arlington Heights, charging them each with conspiracy to commit bribery. Barta, the president and owner of Sav-Rx, a Fremont, Nebraska-based national provider of managed care prescription medication services; and Buenrostro, an associate of Barta and former employee of Sav-Rx, were also released on bond following their arrests. This indictment alleges that the defendants conspired to bribe an undercover FBI agent and a fictitious official of the “County A” hospital system—with Barta allegedly making a $6,500 payment to the undercover agent last month—to do business with Sav-Rx. Medrano, Barta, and Buenrostro will be arraigned on dates to be determined in this case.
The indictments were announced by Gary S. Shapiro, Acting United States Attorney for the Northen District of Illinois; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas Jankowski, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The FBI’s Chicago City Public Corruption Task Force led the investigation with assistance from the Chicago Police Department’s Internal Affairs Division, a task force member.
In both cases, the government is represented by Assistant U.S. Attorneys Christopher J. Stetler and Steven Grimes.
The charges in the indictments carry the following maximum penalties on each count: wire fraud, extortion, and extortion conspiracy—20 years in prison and a $250,000 fine; bribery—10 years in prison and a $250,000 fine; and conspiracy to commit bribery—five years in prison and a $250,000 fine. The court may also impose a fine on the wire fraud counts totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Sale of James Marcelle's Reputed Ranch Could Get Expensive for Former Owners
Being married to the mob can get expensive. For one senior citizen couple, William and Ann Galioto, it could wind up costing them $473,485.62. Plus interest.
The potentially big bill marks the end of a fascinating tale involving a horse ranch in Big Rock, just west of Aurora, a chatty mistress, and the head of the Chicago mob.
It begins as many sad stories do, as a love story — or at least as a story of mutual attraction in the flattering lighting of a Cicero strip club more than 25 years ago. That 's where a young woman, tending bar, met an up-and-coming Chicago mobster named James “Little Jimmy” Marcello. Marcello fell hard for the bartender, so hard he began a relationship with her lasting for decades.
In 1986, Marcello signed a contract to buy a ranch in Big Rock for him and his mistress. They used assumed names, Connie and James Donofrio, and even gave the property a cute name — the C&J Ranch, records show.
Marcello paid his mistress thousands of dollars a month for living expenses. He figured she would never rat on him, even though Marcello learned early on that his mistress had once been a snitch for the federal government. Little Jimmy was wrong.
Just how wrong he would learn in 2007, as he sat in a federal courtroom in Chicago, as a defendant in the historic Family Secrets mob trial, watching his former mistress testify against him.
By then, Marcello ran organized crime in Chicago. His conviction in the Family Secrets case would send him to prison for life. Marcello helped murder several people for the Chicago mob, including setting up Anthony and Michael Spilotro. In 1986, Marcello drove the brothers to the Bensenville area home where they thought they were receiving promotions within the mob. Instead, they were beaten to death.
As part of Marcello’s sentence, a federal judge ordered him to pay more than $4.4 million in restitution. The court order would create complications for the Galiotos.
Ann Galioto is James Marcello’s sister and an entrepreneur in her own right. She is listed as the president of a company that ran a strip joint, Allstars Gentlemen’s Club, for years in west suburban Northlake, before the club burned down in 2010. At the time, the fire attracted the attention of federal investigators, as did the financially creative way some of the club’s strippers were allegedly being paid, according to a law enforcement source.
Ann’s husband, William, is a former Chicago cop, who made headlines in 1995 when Mayor Daley killed a multimillion-dollar low-interest city loan to him and his partners to build a movie studio on the West Side, over concerns about Galioto’s past.
More recently, William Galioto had his name on another real estate deal — Marcello’s horse ranch in Big Rock, the feds say.
While the feds allege Marcello bought the property, it was put in William Galioto’s name. At one point, while Marcello was in prison, he was secretly taped by the feds discussing whether the property should be transferred out of his brother-in-law’s name to one of Marcello’s flunkies. Marcello was worried he couldn’t trust the Galiotos, according to the feds.
That never happened, and in 2008, after Marcello was convicted in the Family Secrets case, Galioto sold the ranch for about $500,000. The feds contend that William Galioto was merely acting as a front for his brother-in-law, Little Jimmy. Prosecutors call William Galioto nothing more than Marcello’s “alter ego” in the ranch sale. The feds want those sale proceeds, however they can get it.
A federal judge will decide if the Galiotos will be on the hook for the money. An attorney for the Galiotos declined to comment Monday.
So for now, the federal tab goes to the couple — $473,485.62. Plus interest.
Thanks to CST.
The potentially big bill marks the end of a fascinating tale involving a horse ranch in Big Rock, just west of Aurora, a chatty mistress, and the head of the Chicago mob.
It begins as many sad stories do, as a love story — or at least as a story of mutual attraction in the flattering lighting of a Cicero strip club more than 25 years ago. That 's where a young woman, tending bar, met an up-and-coming Chicago mobster named James “Little Jimmy” Marcello. Marcello fell hard for the bartender, so hard he began a relationship with her lasting for decades.
In 1986, Marcello signed a contract to buy a ranch in Big Rock for him and his mistress. They used assumed names, Connie and James Donofrio, and even gave the property a cute name — the C&J Ranch, records show.
Marcello paid his mistress thousands of dollars a month for living expenses. He figured she would never rat on him, even though Marcello learned early on that his mistress had once been a snitch for the federal government. Little Jimmy was wrong.
Just how wrong he would learn in 2007, as he sat in a federal courtroom in Chicago, as a defendant in the historic Family Secrets mob trial, watching his former mistress testify against him.
By then, Marcello ran organized crime in Chicago. His conviction in the Family Secrets case would send him to prison for life. Marcello helped murder several people for the Chicago mob, including setting up Anthony and Michael Spilotro. In 1986, Marcello drove the brothers to the Bensenville area home where they thought they were receiving promotions within the mob. Instead, they were beaten to death.
As part of Marcello’s sentence, a federal judge ordered him to pay more than $4.4 million in restitution. The court order would create complications for the Galiotos.
Ann Galioto is James Marcello’s sister and an entrepreneur in her own right. She is listed as the president of a company that ran a strip joint, Allstars Gentlemen’s Club, for years in west suburban Northlake, before the club burned down in 2010. At the time, the fire attracted the attention of federal investigators, as did the financially creative way some of the club’s strippers were allegedly being paid, according to a law enforcement source.
Ann’s husband, William, is a former Chicago cop, who made headlines in 1995 when Mayor Daley killed a multimillion-dollar low-interest city loan to him and his partners to build a movie studio on the West Side, over concerns about Galioto’s past.
More recently, William Galioto had his name on another real estate deal — Marcello’s horse ranch in Big Rock, the feds say.
While the feds allege Marcello bought the property, it was put in William Galioto’s name. At one point, while Marcello was in prison, he was secretly taped by the feds discussing whether the property should be transferred out of his brother-in-law’s name to one of Marcello’s flunkies. Marcello was worried he couldn’t trust the Galiotos, according to the feds.
That never happened, and in 2008, after Marcello was convicted in the Family Secrets case, Galioto sold the ranch for about $500,000. The feds contend that William Galioto was merely acting as a front for his brother-in-law, Little Jimmy. Prosecutors call William Galioto nothing more than Marcello’s “alter ego” in the ranch sale. The feds want those sale proceeds, however they can get it.
A federal judge will decide if the Galiotos will be on the hook for the money. An attorney for the Galiotos declined to comment Monday.
So for now, the federal tab goes to the couple — $473,485.62. Plus interest.
Thanks to CST.
Thursday, July 26, 2012
"Gangster Squad" Movie Release Delayed to Move Final Gunfight Outside of Movie Theater
It's official, "Gangster Squad" will not grace theaters nationwide this September. Warner Bros. Pictures has announced that the much-talked-about mob thriller will be pushed back to January 11, 2013.
As reported previously, the studio aims to reshoot a climatic scene in the movie that features a gunfight in the Grauman's Chinese Theatre. The theater shoot-out scene recently sparked controversy in the wake of the recent Aurora massacre that claimed the lives of 12 people during "The Dark Knight Rises" midnight screening.
The new release schedule will give time to the filmmaker to find an alternate gunfight scene that doesn't take place in a movie theater. With the new date, the Sean Penn-starring movie is set to face off Jeremy Renner's delayed pic "Hansel and Gretel: Witch Hunters".
"Gangster Squad" centers on Penn's Mickey Cohen, a ruthless Brooklyn-born mob. He runs the show in the town, reaping the ill-gotten gains from the drugs, the guns, the prostitutes and every wire bet placed west of Chicago.
Cohen runs the dirty businesses with the protection of not only his own paid goons, but also the police and the politicians who are under his control. It's enough to intimidate the bravest, street-hardened cop, except a secret crew of LAPD outsiders led by Sgt. John O'Mara (Josh Brolin) and Jerry Wooters (Ryan Gosling), who come together to try to tear Cohen's world apart.
The Ruben Fleischer-directed film was originally slated for a September 7 U.S. release this year.
As reported previously, the studio aims to reshoot a climatic scene in the movie that features a gunfight in the Grauman's Chinese Theatre. The theater shoot-out scene recently sparked controversy in the wake of the recent Aurora massacre that claimed the lives of 12 people during "The Dark Knight Rises" midnight screening.
The new release schedule will give time to the filmmaker to find an alternate gunfight scene that doesn't take place in a movie theater. With the new date, the Sean Penn-starring movie is set to face off Jeremy Renner's delayed pic "Hansel and Gretel: Witch Hunters".
"Gangster Squad" centers on Penn's Mickey Cohen, a ruthless Brooklyn-born mob. He runs the show in the town, reaping the ill-gotten gains from the drugs, the guns, the prostitutes and every wire bet placed west of Chicago.
Cohen runs the dirty businesses with the protection of not only his own paid goons, but also the police and the politicians who are under his control. It's enough to intimidate the bravest, street-hardened cop, except a secret crew of LAPD outsiders led by Sgt. John O'Mara (Josh Brolin) and Jerry Wooters (Ryan Gosling), who come together to try to tear Cohen's world apart.
The Ruben Fleischer-directed film was originally slated for a September 7 U.S. release this year.
Saturday, July 21, 2012
Gangster Squad
Los Angeles, 1949. Ruthless, Brooklyn-born mob king Mickey Cohen (Sean Penn) runs the show in this town, reaping the ill-gotten gains from the drugs, the guns, the prostitutes and--if he has his way--every wire bet placed west of Chicago. And he does it all with the protection of not only his own paid goons, but also the police and the politicians who are under his control.
It's enough to intimidate even the bravest, street-hardened cop...except, perhaps, for the small, secret crew of LAPD outsiders led by Sgt. John O'Mara (Josh Brolin) and Jerry Wooters (Ryan Gosling), who come together to try to tear Cohen's world apart. "The Gangster Squad" is a colorful retelling of events surrounding the LAPD's efforts to take back their nascent city from one of the most dangerous mafia bosses of all time.
Friday, July 20, 2012
Thursday, July 19, 2012
How to Avoid Investment Fraud
- Don’t believe claims that there is no risk—there is always risk in any investment.
- Be careful of any investment opportunity that makes exaggerated earnings claims.
- Get all details about an investment opportunity in writing.
- Steer clear of “offshore” investments. These are often promoted as a way to avoid taxes, but you may still be liable for taxes, plus the investments can be very risky.
- Consult an unbiased third party, like an unconnected broker or licensed financial advisor, before investing.
- Take the time to check out investment offers by contacting your state’s securities regulator.
- Never put all of your “eggs” (investments) in one basket.
- Be careful of any investment opportunity that makes exaggerated earnings claims.
- Get all details about an investment opportunity in writing.
- Steer clear of “offshore” investments. These are often promoted as a way to avoid taxes, but you may still be liable for taxes, plus the investments can be very risky.
- Consult an unbiased third party, like an unconnected broker or licensed financial advisor, before investing.
- Take the time to check out investment offers by contacting your state’s securities regulator.
- Never put all of your “eggs” (investments) in one basket.
Tuesday, July 17, 2012
Sheldon Adelson Alledgedly Linked to Organized Crime by Investigative Report
Casino magnate Sheldon Adelson, the biggest Republican donor in the 2012 election, has come under new scrutiny for possible violations of federal anti-bribery law and ties to Chinese organized crime. The potential violations stem from Adelson’s efforts to build casinos and other projects in Macau.
An investigation by the University of California, ProPublica and PBS Frontline found Adelson may have violated the Foreign Corrupt Practices Act when he instructed a top executive to give $700,000 to a Macau legislator who aided his company’s efforts there. Officials are also probing possible ties between Adelson’s company, Las Vegas Sands, and Chinese organized crime. The projects in Macau helped Adelson amass a personal fortune estimated at $25 billion. He has given tens of millions of dollars to Newt Gingrich, Mitt Romney and other Republican causes, and has spoken of spending upwards of $100 million to defeat President Obama’s re-election.
Thanks to Democracy Now.
Jesse Jackson Jr Called to Explain Ties to Reputed Mob Affiliated Union
In 1995 United States Congressman Mel Reynolds (D-IL), in the glorious tradition of Chicago Democrats, wound up in prison on corruption charges. There were also charges that the married Reynolds had an inappropriate relationship with an under-aged girl. Tsk. Tsk.
Jesse Jackson, Jr. was one of the candidates who threw his hat into the ring to fill the vacant seat left by Reynolds.
Jesse Jackson Jr. resigned his job as a union “organizer” to run for Congress. Supposedly he “organized” hotel and restaurant employees through the National Rainbow Coalition, founded by his father, on behalf of the Hotel and Restaurant Employees International Union (HERE).
HERE was one of the most politically powerful unions in Chicago. Its president, Edward Hanley was one of the most powerful and politically important men in Chicago. HERE and Edward Hanley were dominated, controlled, and owned by the Chicago Crime Syndicate.
Jackson’s fifty-six thousand dollar salary was paid by HERE. Reverend Jesse Jackson knowingly and willingly entered into a political partnership and alliance with a well-known notorious Mob union. The Mob union paid his son’s salary in exchange for “organizing,” whatever that is. Conveniently or coincidently, during the time Jackson was working for the union it was very publicly under fire by the government, again, for being dominated by the Mob.
Why would the good, upright, overly self-righteous reverend forge a political alliance and relationship with a notorious organized crime entity?
HERE was started, owned and operated by the Chicago Crime Syndicate. For over three decades the union had been continuously and publicly investigated for being controlled by organized crime.
Chicago Crime boss Tony Accardo and underboss Joey “Doves” Aiuppa owned HERE president, Edward Hanley, lock, stock, and barrel. HERE also had ties to the Gambino and Columbo crime families in New York City as well as La Cosa Nostra in Philadelphia.
As far back as 1958 the McClellan Committee revealed that the Chicago Mob had infiltrated the Chicago restaurant industry through domination and control of its unions, especially HERE. Accardo and Aiuppa had total control over HERE for over forty years. HERE president Edward Hanley was alleged to have been hand picked by Accardo to run the union through Aiuppa.
In 1977, the United States Department of Justice (DOJ) revealed that HERE was a classic example of organized crime's domination of a major labor union. HERE was investigated for ties to organized crime again in 1984. Testifying before the United States Senate, union president Hanley took the Fifth Amendment 36 times.
In 1985, the President's Commission on Organized Crime claimed that HERE was one of the four most corrupt unions in the United States.
In 1995, the year Jackson Jr. worked for them HERE was investigated for racketeering and corruption. They finally agreed to take on a federal court appointed monitor to clean up the union.
When questioned by the media over his ties to the Mob union, candidate Jesse Jackson Jr. could not remember where, when, or how he did “organizing” for the union. He could not even remember the name of the union president who paid his salary.
People who work for the Mob have a propensity to develop extremely bad memories.
Even if he had known about the union being controlled by the mob he still would have taken their money? That is a startling admission. More astounding, he claimed he did not know he was being paid by the Mob. Everyone in Chicago with half a brain knew who controlled and operated HERE.
During a media candidate’s forum, when Jackson’s judgment over taking Mob money was questioned, “Jackson shot back that as a magna cum laude undergraduate and a graduate of the University of Illinois Law School, 'I don't think my judgment is questionable.'" (Chicago Tribune/John Kass)
Maybe not, but his intelligence, ethics, integrity, and morals were beyond questionable.
Reverend Jesse Jackson, Sr. said in an interview that working to help people get better wages and benefits was more important than HERE’s known Crime Syndicate control. The ends justify any evil means when it comes to social and moral justice, whatever those are.
What did the Mob get from the Jackson Family in exchange for the “political alliance and relationship” and Junior’s generous salary? The Chicago Mob is not exactly known for its altruistic tendencies or social proclivities. If they give they expect something more, way more in return. In effect, they own you.
That is the way it is and always has been. Anyone who thinks otherwise does not live on this planet.
Why is all this important? The missing without a trace congressman is running for reelection. Being the Chicago Machine candidate means Jackson does not have to do anything except stay missing. Jackson will be reelected. He will reappear on the day congressmen are sworn in. Maybe he will disappear immediately afterward.
It’s not like anyone will notice or care anymore.
Since we never vetted President Obama and others, we learned a very important lesson; it is extremely critical that every single candidate, especially incumbents, be thoroughly vetted.
What exactly did Jesse Jackson do in return for being a paid Mob union “organizer”? What did the Jackson Family get in return for selling their soul to the Mob? What did they give in return?
Who did Junior organize, where did he organize, how did he organize, what did he organize, and when did he organize? How many known Mob associates assisted him in his “organizing” efforts?
Or, as is more likely and typical, was he just paid for a Mob union no show job, kicking back part of his salary to the boys? That is the way mob union “organizing” jobs usually work.
There are more questions than answers. Jesse Jackson Jr. needs to explain his Mob ties.
As soon as we find him.
Thanks to Peter Bella.
Jesse Jackson, Jr. was one of the candidates who threw his hat into the ring to fill the vacant seat left by Reynolds.
Jesse Jackson Jr. resigned his job as a union “organizer” to run for Congress. Supposedly he “organized” hotel and restaurant employees through the National Rainbow Coalition, founded by his father, on behalf of the Hotel and Restaurant Employees International Union (HERE).
HERE was one of the most politically powerful unions in Chicago. Its president, Edward Hanley was one of the most powerful and politically important men in Chicago. HERE and Edward Hanley were dominated, controlled, and owned by the Chicago Crime Syndicate.
Jackson’s fifty-six thousand dollar salary was paid by HERE. Reverend Jesse Jackson knowingly and willingly entered into a political partnership and alliance with a well-known notorious Mob union. The Mob union paid his son’s salary in exchange for “organizing,” whatever that is. Conveniently or coincidently, during the time Jackson was working for the union it was very publicly under fire by the government, again, for being dominated by the Mob.
Why would the good, upright, overly self-righteous reverend forge a political alliance and relationship with a notorious organized crime entity?
HERE was started, owned and operated by the Chicago Crime Syndicate. For over three decades the union had been continuously and publicly investigated for being controlled by organized crime.
Chicago Crime boss Tony Accardo and underboss Joey “Doves” Aiuppa owned HERE president, Edward Hanley, lock, stock, and barrel. HERE also had ties to the Gambino and Columbo crime families in New York City as well as La Cosa Nostra in Philadelphia.
As far back as 1958 the McClellan Committee revealed that the Chicago Mob had infiltrated the Chicago restaurant industry through domination and control of its unions, especially HERE. Accardo and Aiuppa had total control over HERE for over forty years. HERE president Edward Hanley was alleged to have been hand picked by Accardo to run the union through Aiuppa.
In 1977, the United States Department of Justice (DOJ) revealed that HERE was a classic example of organized crime's domination of a major labor union. HERE was investigated for ties to organized crime again in 1984. Testifying before the United States Senate, union president Hanley took the Fifth Amendment 36 times.
In 1985, the President's Commission on Organized Crime claimed that HERE was one of the four most corrupt unions in the United States.
In 1995, the year Jackson Jr. worked for them HERE was investigated for racketeering and corruption. They finally agreed to take on a federal court appointed monitor to clean up the union.
When questioned by the media over his ties to the Mob union, candidate Jesse Jackson Jr. could not remember where, when, or how he did “organizing” for the union. He could not even remember the name of the union president who paid his salary.
People who work for the Mob have a propensity to develop extremely bad memories.
“Though not being able to supply specifics, the younger Jackson said, 'I organized at hotels, I organized at picket lines around this country, organized workers and fought to raise the minimum wage.' 'We have a very mutual and a very cordial relationship,' he said of the partnership between the Rainbow Coalition and the hotel workers union. Later, he said that even if he had known about the union's questionable history, he would still have taken the money because it helped him improve the lives of working people.” (Chicago Tribune/John Kass)
Even if he had known about the union being controlled by the mob he still would have taken their money? That is a startling admission. More astounding, he claimed he did not know he was being paid by the Mob. Everyone in Chicago with half a brain knew who controlled and operated HERE.
During a media candidate’s forum, when Jackson’s judgment over taking Mob money was questioned, “Jackson shot back that as a magna cum laude undergraduate and a graduate of the University of Illinois Law School, 'I don't think my judgment is questionable.'" (Chicago Tribune/John Kass)
Maybe not, but his intelligence, ethics, integrity, and morals were beyond questionable.
Reverend Jesse Jackson, Sr. said in an interview that working to help people get better wages and benefits was more important than HERE’s known Crime Syndicate control. The ends justify any evil means when it comes to social and moral justice, whatever those are.
What did the Mob get from the Jackson Family in exchange for the “political alliance and relationship” and Junior’s generous salary? The Chicago Mob is not exactly known for its altruistic tendencies or social proclivities. If they give they expect something more, way more in return. In effect, they own you.
That is the way it is and always has been. Anyone who thinks otherwise does not live on this planet.
Why is all this important? The missing without a trace congressman is running for reelection. Being the Chicago Machine candidate means Jackson does not have to do anything except stay missing. Jackson will be reelected. He will reappear on the day congressmen are sworn in. Maybe he will disappear immediately afterward.
It’s not like anyone will notice or care anymore.
Since we never vetted President Obama and others, we learned a very important lesson; it is extremely critical that every single candidate, especially incumbents, be thoroughly vetted.
What exactly did Jesse Jackson do in return for being a paid Mob union “organizer”? What did the Jackson Family get in return for selling their soul to the Mob? What did they give in return?
Who did Junior organize, where did he organize, how did he organize, what did he organize, and when did he organize? How many known Mob associates assisted him in his “organizing” efforts?
Or, as is more likely and typical, was he just paid for a Mob union no show job, kicking back part of his salary to the boys? That is the way mob union “organizing” jobs usually work.
There are more questions than answers. Jesse Jackson Jr. needs to explain his Mob ties.
As soon as we find him.
Thanks to Peter Bella.
Monday, July 16, 2012
Gangsters and Organized Crime in Buffalo: History, Hits and Headquarters
The first book to chronicle the history of the Mafia in Buffalo, NY has hit the bookshelves. "GGangsters and Organized Crime in Buffalo: History, Hits and Headquarters" is the first book to "put it all together," as former Buffalo News reporter Lee Coppola stated.
Buffalo author and tour business owner Michael F. Rizzo spent the last 10 years gathering information from the FBI, books, newspaper articles and listening to tales from others to write this book. "I started the writing 10 years ago," stated Rizzo, "but put it aside for a while. Last fall I decided I wanted to put the story together and approached The History Press who became my publisher."
Rizzo spent the next six months working almost non-stop to complete the book for a summer release. "It was a grueling six months where my family saw little of me at times, but the end product was worth every minute."
The book includes less-known gangsters, but concentrates on the Buffalo Mafia and its former leader Stefano Magaddino and its history from the early 1900s through the 1980s. Hundreds of people are named and dozens of murders, many unsolved, are detailed. The final chapter includes hundreds of addresses for the amateur sleuth to check out.
Although concentrating on Buffalo, the book delves into the Rochester and Hamilton families, which were once under Magaddino's control. "I couldn't write the Magaddino history without including some of the areas he controlled. The man was as powerful as Al Capone, but because he and his people kept out of the spotlight there is little known or written about him."
The 256 page book is action packed, the first of its kind, with 691 references and over 75 photos, some never seen before, and others very rare.
Buffalo author and tour business owner Michael F. Rizzo spent the last 10 years gathering information from the FBI, books, newspaper articles and listening to tales from others to write this book. "I started the writing 10 years ago," stated Rizzo, "but put it aside for a while. Last fall I decided I wanted to put the story together and approached The History Press who became my publisher."
Rizzo spent the next six months working almost non-stop to complete the book for a summer release. "It was a grueling six months where my family saw little of me at times, but the end product was worth every minute."
The book includes less-known gangsters, but concentrates on the Buffalo Mafia and its former leader Stefano Magaddino and its history from the early 1900s through the 1980s. Hundreds of people are named and dozens of murders, many unsolved, are detailed. The final chapter includes hundreds of addresses for the amateur sleuth to check out.
Although concentrating on Buffalo, the book delves into the Rochester and Hamilton families, which were once under Magaddino's control. "I couldn't write the Magaddino history without including some of the areas he controlled. The man was as powerful as Al Capone, but because he and his people kept out of the spotlight there is little known or written about him."
The 256 page book is action packed, the first of its kind, with 691 references and over 75 photos, some never seen before, and others very rare.
How Defective Bullets Turned Ken "Tokyo Joe" Eto into a Government Witness Against the Chicago Outfit
Nothing says July in Chicagoland quite like the bodies of those two bumbling Outfit hit men found stuffed in the trunk of a car almost three decades ago this weekend in Naperville.
They'd tried to kill Outfit bookie Ken "Tokyo Joe" Eto, whom Outfit bosses considered a liability after he was indicted on federal gambling charges. But the hit men botched the job. After Eto was shot three times in the head, the hit men walked away, thinking their labors were done. But Eto miraculously survived and turned government witness. For 17 years, he testified against mobsters, against labor union and political figures. He even spilled secrets on the Chicago Outfit's top cop, Chicago Chief of Detectives William Hanhardt. And for their failure, the two hit men, Jasper Campise, 68, and John Gattuso, 47, a deputy sheriff, were found strangled and stabbed on July 14, 1983. They'd been missing for a few days.
"These two stooges really screwed up, and they paid for it," said Arthur Bilek, 83, then the incorruptible chief of the Cook County sheriff's police and now the executive vice president of the Chicago Crime Commission.
I asked Bilek about the story I'd heard: That the hit men used defective bullets taken from the Cook County sheriff's office. "Exactly," he said Friday. "One put the gun right against Eto's head, pulled the trigger, and the bullet hit the skull, ricocheted under the flesh, ran all around his head. There were three shots, and with blood all over, they thought he was a goner, so they left. But he wasn't dead. He was alive. And later he testified on the Outfit."
Bilek went on to become a professor of criminal law, and most recently he's been at the crime commission. He knows the secret of organized crime: Without corrupt law enforcement and corrupt politicians, organized crime isn't very organized.
The feds had arrested Campise and Gattuso and tried to flip them, but they refused to talk. Still, the two made bail. Each was able to put up cash bond of about $1 million. In the fascinating Japanese documentary film on Eto titled "Tokyo Joe: The Man Who Brought Down the Chicago Mob," former FBI Agent Elaine Smith lamented their decision to make bail. She was Eto's case agent. "Why did they even want to get out (of jail)?" Smith said. "The bosses gave them that money. Because they were going to have you caught. They were going to kill you."
As she speaks, she makes a slicing motion with her hand across her throat.
Why did they decide to bond out? They must have thought there was a happy ending somewhere, but instead all they got was the trunk of that metallic blue Volvo. A 1983 Tribune story quotes a Naperville resident noticing a foul odor coming from the car. The neighbor said "it stunk to high heaven. It was covered in flies."
The documentary, directed by Ken'ichi Oguri, uses law enforcement photos of the time to show the open trunk. A man's leg is raised and bent oddly, but I couldn't tell which hit man it belonged to. What you could see were gray trousers pulled up past a pale calf. And black socks scrunched down to the ankle. The black dress shoes had a decent shine.
In his years in the federal witness program, Eto would often testify while covering his face in a pointy black hood, holes for his eyes, slits for his mouth. To one federal commission he told the story of how he drove to a meeting near Grand and Harlem, Gattuso beside him in the front seat, Campise behind him.
"As soon as I parked, 'bang!' I got shot in the head," Eto testified, with his hood on. "And I thought, well, I knew it. Second time I got shot. And I thought wow, it's not taking any effect. So the third time happened like the first and the second shot, and I thought I better play dead. So I put up my hands like that … and I laid down on the seat (shaking his hands above his head, leaning to the right). I heard the door slam shut. I heard feets (yes, he said "feets") running away."
Eto later testified against Outfit boss Ernest "Rocco" Infelice, and he told federal authorities about Hanhardt and many other figures. He even testified against influential former state Sen. James DeLeo, who was charged with tax evasion in the federal Operation Greylord probe of court corruption. Eto told the court that he bribed DeLeo with $900 to fix parking tickets when DeLeo was a bailiff.
"I would present the tickets to Mr. DeLeo, and he'd go to the back room," Eto said in court. "He'd come out and tell me what it would cost me."
The jury deadlocked at 11-1 in favor of acquittal. DeLeo later pleaded guilty to a misdemeanor tax charge in a plea deal.
In 2004, Eto, living under the identity Joe Tanaka, died of cancer at the age of 84. Agent Smith said that in all his years helping the government, Eto never changed his story. "I just wonder if America will ever realize how much we gained from Ken Eto," she said in the film. But Campise and Gattuso deserve some credit, too, don't they? In a way, they were just two more victims of corrupt local government. Maybe if they hadn't used lousy Cook County bullets, we wouldn't know their names. Or the color of their socks.
Thanks to John Kass.
Sunday, July 15, 2012
Burn Out Family Mafia Hit with Indictment of 40 Reputed Members and Associates
A federal grand jury in Oakland recently indicted 40 reputed members and associates of the Burn Out Family Mafia gang for drug trafficking, identity theft and firearm possession charges, U.S. Attorney Melinda Haag announced Friday.
The indictments and arrests stem from an 18-month-long investigation conducted by the U.S. Drug Enforcement Administration, the U.S. Secret Service and Oakland Police Department.
According to one indictment, 31 defendants are alleged to have engaged in the daily sales of heroin and cocaine on three corners in East Oakland controlled by the Burn Out Family Mafia gang.
A second indictment charges four defendants with various identity-theft related crimes. Five other defendants have been charged with firearms possession in separate indictments.
Haag said in a statement, “Illegal open-air drug markets operating on our street corners in East Oakland beget violence and other criminal activity.”
She said, “By shutting down the open-air drug markets run by the Burn Out Family Mafia – particularly the three markets targeted by this investigation, which operated within feet of Oakland schools – we hope to contribute to the reduction of violence in East Oakland.”
Haag said, “These indictments demonstrate that criminal street gangs are branching out beyond traditional drug-trafficking operations to other illegal enterprises such as identity theft.”
Authorities announced two weeks ago that the investigation also resulted in the arrest of four reputed Burn Out Family gang members on charges of conspiracy to commit murder and premeditated attempted murder for allegedly attempting to kill a member of a rival East Oakland gang.
Those four suspects are scheduled to enter pleas in Alameda County Superior Court on Monday.
Thanks to CBS SF.
Sheriff Joe Arpaio's Office Announces Charges in Reputed Assassination Plot by Mexican Mafia Gangsters
On Wednesday, three gang members were charged with plotting to assassinate Maricopa County Sheriff Joe Arpaio.
According to a Maricopa County Sheriff's Office (MCSO) press release, investigators within the MCSO's Threats Unit "arrested three maximum security inmates for conspiracy to commit murder stemming from a complex plot from assassinating Sheriff Arpaio to killing a fellow inmate."
Those charged were Mexican Mafia gang members Mark Cons, 33, and Rudolfo Santos, 37, both of whom are currently being held in the 4th Avenue Jail on other felony charges. Also charged was Samuel Matta, 29, who is described as "a member of a documented street gang" and currently incarcerated in the state prison in Florence. All three have been charged with conspiracy to commit murder.
Samuel Matta was reportedly planning to publicly assassinate Sheriff Arpaio with a high powered rifle once he was released from jail. However, he failed to make bond and was unable to carry out his plan. Matta "believed that the sheriff was personally responsible for the deportation of some of his members of his family to Mexico from their home in El Mirage, AZ,” the release states.
Sheriff Arpaio told reporters: “Given our jailhouse clientele, my staff is always monitoring situations which can potentially lead to violent criminal activity both inside and outside of the jail walls. In this case, their professionalism and perseverance prevented two potential murders.”
According to the MCSO, this is the third assassination plot against the sheriff uncovered this year alone.
Of course, Sheriff Arpaio is arguably the most high-profile law enforcement official in the country, as always, with increased notoriety comes increased danger.
This, combined with Arpaio's tough stance on illegal immigration, the numerous arrests he has made of both drug and human smugglers and his refusal to back down against the Obama administration, it is little wonder the five-time sheriff is so often targeted.
In March, the MCSO's Cold Case Posse announced that their investigation uncovered evidence suggesting Obama’s birth documentation is fraudulent.
Arpaio is set to hold another news conference on July 17, in which he has promised to announce more "shocking" evidence against President Obama's eligibility.
Thanks to Dave Gibson.
Saturday, July 14, 2012
U.S. Attorney Announces Largest Federal Organized Crime Prosecution in Indianapolis History
Earlier this week, more than 300 federal, state, and local law enforcement officers, including 11 different SWAT teams, simultaneously converged on more than a dozen locations across Indianapolis. In a matter of hours, 42 arrest warrants and 17 search warrants were successfully executed without incident or serious injury. It was the largest combined federal-local operation in Indianapolis history.
This afternoon, joined by these law enforcement partners, United States Attorney Joseph H. Hogsett announced the arrest and federal indictment of 42 Indianapolis-based members of the Outlaws Motorcycle Club (OMC), an international criminal organization alleged to have operated out of a clubhouse located at 305 Jefferson Avenue, on the near-eastside of Indianapolis.
“If you are operating an organized criminal gang in this city, the clock is ticking,” Hogsett said. “It might be tomorrow, it might be weeks from now, but it is only a matter of time before you wake up to the sound of law enforcement at your door.”
In the seventy page, 37-count charging document unsealed this morning, it is alleged that beginning in May 2009, members of Indianapolis OMC engaged in organized criminal activity in Indianapolis and across the state. The indictment charges the 42 alleged gang members with a wide variety of offenses, including racketeering, mail fraud, money laundering, extortion, drug charges, wire fraud, witness tampering, and operating an illegal gambling operation.
“For more than three years, a volatile mixture of guns, drugs, and motorcycles allegedly fueled a dangerous criminal organization in Indianapolis as sophisticated as any business in this city,” Hogsett added. “This morning, we closed down that business for good.”
“This enterprise-based investigation and today’s takedown focused on disrupting and dismantling what the indictment alleges to be a violent, criminal outlaw motorcycle gang by targeting its senior leaders and key members,” said FBI Special Agent in Charge Robert Allan Jones. “The U.S. Attorney’s Office, FBI Safe Streets Task Force, and our partner agencies are committed to making the streets of Indiana safer by the disruption and dismantlement of gangs like the Outlaws Motorcycle Club.”
Examples of alleged criminal activities include numerous instances in which OMC members used violence and the threat of force to collect personal debts from individuals in Indianapolis and elsewhere. The members are also alleged to have operated an illegal lottery scheme in Indianapolis that trafficked in thousands of dollars a day.
Additionally, the indictment describes an alleged March 2010 scheme in which members of OMC allegedly recruited and paid an individual to purposely drive a U-Haul truck into the rear of a vehicle containing numerous OMC members, all of whom then filed insurance claims totaling tens of thousands of dollars. In other instances, OMC members are alleged to have hidden the vehicles of other OMC members so as to allow them to collect auto insurance claims for their supposedly stolen vehicles.
Defendants named within the indictment include:
Joshua N. Bowser, age 32
Kent D. Whitinger, age 49
James W. Bain, age 50
Dominic R. Mangine, age 71
Michael A. Schlicher, age 38
Stephen M. Whitinger, age 57
Lawrence Gregory, age 47
Stephen D. Duff, age 22
Steve A. Reynolds, age 37
Joseph Alarcon, age 32
David L. Whitinger, age 54
Ronald P. Taylor, Jr., age 43
Jose Diaz, age 36
Justo Rojas, age 43
Hector Nava-Arrendondo, age 29
Jorge Sedeno-Callejas, age 27
James Stonebraker, age 58
Norvel Terry, age 45
Thomas Swan, age TBD
Michael A. Knoll, age 47
Michael E. Hamilton, age 53
Edward J. Bolen, age 47
Michael Medlin, age 68
Jamie A. Bolinger, age 34
Vance Canner, 43
Bryan E. Glaze, age 20
Richard C. DeMarco, Jr., age TBD
Mark A. Bisel, age 49
Charles N. Ernstes, II, age 52
Joseph Maio, age 59
Pamela K. Cummins, age 44
Rigo Rocha-Lopez, age 34
Carlos Mena, age 47
Jorge Daniel Ledezma-Cruz, age 26
Cesar Granados, age 31
Brian T. Peacock, age 60
Russell Pryor, age TBD
Steven Lecclier, age TBD
Anthony Leach, age 44
William Anderson, age 42
Terrell Adams, age 28
Scharme L. Bolinger, age 34
The indictment further describes the structure and hierarchy of local OMC chapters. Each chapter has a president, vice-president, treasurer, and enforcer. OMC maintained chapters in Indianapolis and Fort Wayne. These local chapters answer to a regional chapter—in this case, the “Black Region”—and finally are under the umbrella of a national leadership body, which coordinates the activities of the numerous regions within OMC.
According the indictment, members are admitted to the OMC after a lengthy, phased process designed to measure a potential member’s commitment to the organization and to guard against law enforcement infiltration. After associating with OMC for a period of time, an individual may become known as a “hangaround,” and, after one year, a hangaround may be sponsored as a “probate,” or prospective member. At all times during this process, it is alleged that these individuals must follow orders by OMC members, often including criminal activity.
After at least six months of acting as a probate, individuals are eligible to become a full member of the OMC by unanimous vote, at which point they may be “patched” and wear identification associated with the gang. This OMC identification involves a leather vest and often includes numerous symbolic patches, including “MC” (motorcycle club), “AOA” (American Outlaws Association), and “1%er” (meant to describe a non-law-abiding motorcycle rider). Other patches and tattoos identified within the indictment include “Snitches are a Dying Breed,” as well as “GFOD,” which stands for “God Forgives, Outlaws Don’t.”
Today’s arrests are the culmination of a lengthy investigation as part of the U.S. Attorney’s Violent Crime Initiative involving the Federal Bureau of Investigation, the Internal Revenue Service, FBI Safe Streets Task Force, the Indiana State Police, the Marion County Sheriff’s Department, as well as the Indianapolis Metropolitan Police Department.
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, all 42 defendants face up to decades in prison and substantial fines if they are found guilty. Blackington also noted that, if convicted, many of the assets gained through the alleged criminal activity would be eligible for federal forfeiture. A large portion of those proceeds would be reinvested in local law enforcement efforts.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Nora Schweihs of Mob Wives Chicago, Tries to Move On
Nora Schweihs is looking beyond all the screaming, name calling and hair pulling that has characterized the first few episodes of "Mob Wives Chicago." But mostly, she's trying to get past the past.
Schweihs, the daughter of Frank "The German" Schweihs, said she's on the show to get closure following the 2008 death of her father, whose body was recently exhumed at the request of his family. As soon as a blood test confirms the body is her father, Schweihs plans to bring his ashes to Florida, where she lived with him, but place some of his remains in a necklace she has made.
Schweihs said she is also honoring him by creating a pinot noir called "The German," which she hopes will bring positive spin to the nickname given to her father, an alleged mob enforcer. In a one-on-one interview with RedEye, she dismissed the murder charges against her father as "hearsay."
"Now you won't ever hear 'The German' as 'Oh, he was a hitman,'" she told RedEye outside the Bebe store in Water Tower Place.
Schweihs is very defensive of her father, who has become a hot-button issue on "Mob Wives Chicago," which began airing last month on VH1. The show features Schweihs and four other local women with ties to the "Chicago Outfit" who bicker about whose father did what and who is the least classy.
Schweihs is often in the middle of the drama, which she calls 100 percent real. In one recent episode, she becomes upset when another cast member shows up late to a memorial for her father. The confrontation turns violent.
"It is our life and it really is real," said Schweihs, wearing a sheer purple top and white jeans. "For me, the whole point of the show is for my father and nothing else and I am thisclose to getting closure."
Part of the premise of the show is Schweihs' return to Chicago after living in Florida with her father, who she calls her best friend. Schweihs, 49, said she now lives in Bridgeport and recently celebrated finishing her business master's degree at Robert Morris University.
She said she was taking multiple courses when she was filming "Mob Wives Chicago," which added to her stress level. Some of friendships she had going into the show have been strained, but she said she has gotten closer to fellow castmates Christina Scoleri and Leah Desimone.
Schweihs, the daughter of Frank "The German" Schweihs, said she's on the show to get closure following the 2008 death of her father, whose body was recently exhumed at the request of his family. As soon as a blood test confirms the body is her father, Schweihs plans to bring his ashes to Florida, where she lived with him, but place some of his remains in a necklace she has made.
Schweihs said she is also honoring him by creating a pinot noir called "The German," which she hopes will bring positive spin to the nickname given to her father, an alleged mob enforcer. In a one-on-one interview with RedEye, she dismissed the murder charges against her father as "hearsay."
"Now you won't ever hear 'The German' as 'Oh, he was a hitman,'" she told RedEye outside the Bebe store in Water Tower Place.
Schweihs is very defensive of her father, who has become a hot-button issue on "Mob Wives Chicago," which began airing last month on VH1. The show features Schweihs and four other local women with ties to the "Chicago Outfit" who bicker about whose father did what and who is the least classy.
Schweihs is often in the middle of the drama, which she calls 100 percent real. In one recent episode, she becomes upset when another cast member shows up late to a memorial for her father. The confrontation turns violent.
"It is our life and it really is real," said Schweihs, wearing a sheer purple top and white jeans. "For me, the whole point of the show is for my father and nothing else and I am thisclose to getting closure."
Part of the premise of the show is Schweihs' return to Chicago after living in Florida with her father, who she calls her best friend. Schweihs, 49, said she now lives in Bridgeport and recently celebrated finishing her business master's degree at Robert Morris University.
She said she was taking multiple courses when she was filming "Mob Wives Chicago," which added to her stress level. Some of friendships she had going into the show have been strained, but she said she has gotten closer to fellow castmates Christina Scoleri and Leah Desimone.
Friday, July 13, 2012
Brendolyn Hart-Glover Charged with Scheming to Falsify Documents for State Review of Federally Funded Jobs Program
The former acting director of a Cook County job-training program was arrested today on federal charges for allegedly engaging in a scheme to falsify documents related to a state review of the county’s 2009 Summer Youth Program, which was funded by a federal grant. The defendant, Brendolyn Hart-Glover, was field operations manager and, during 2010, served as acting director of the Cook County President’s Office of Employment Training, or POET, which last year was renamed Cook County Works. POET received federal grants through the Illinois Department of Commerce and Economic Opportunity (DCEO), which allocated approximately $5.67 million to POET for summer youth jobs in 2009 and 2010, with POET enrolling approximately 1,400 participants in the 2009 program.
Hart-Glover, 42, of Chicago, who supervised POET’s field offices in Oak Forest, Cicero, Maywood, and Chicago Heights, was charged with engaging in a scheme to falsify documents in a criminal complaint that was unsealed today following her arrest. She was scheduled to appear at 4 p.m. today before U.S. Magistrate Judge Jeffrey Gilbert in Federal Court.
According to the complaint, in October 2009, DCEO sent POET a letter identifying problems with hundreds of participant files, including approximately 70 files that were missing entirely. In July 2010, DCEO informed POET that it would not reimburse approximately $1.4 million in questioned costs based on the documentation that POET had produced to that point, and DCEO gave POET another month to provide additional documentation.
According to several cooperating witnesses, including POET employees at the time, Hart-Glover instructed them to “reproduce” or “recreate” the files that were needed to maintain the funding. “Let me make something clear. It is not an option for you to not have the Summer Youth files,” she allegedly told a small group of employees in the summer of 2010. In August 2010, Hart-Glover wrote a letter that POET sent to DCEO along with two boxes containing allegedly recreated files and documents. The letter stated that 56 six of the approximately 70 missing files were located and submitted.
However, the charges allege that POET employees did not “locate” the files that POET produced to DCEO and, instead, POET employees recreated those files by forging, altering, and backdating documents. Also, contrary to statements in the letter, POET staff did not verify an applicant’s compliance with the Selective Service Act or check an applicant’s low-income status at the intake site because POET employees did not have access to computers at those locations, the complaint states.
In March 2011, federal agents interviewed Hart-Glover. The complaint alleges that she denied knowing the following: that POET employees falsified documents provided to the state agency; that some birth certificates were missing from the summer youth files; that birth certificates were being recreated by POET employees; and that anyone fabricated the public aid printouts so that the print date appeared to be the date of the application.
The arrest and charge were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of Inspector General in Chicago; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas P. Brady, Inspector in Charge of the U.S. Postal Inspection Service in Chicago. The Cook County Inspector General and the current administration of Cook County Works cooperated with the investigation.
The government is being represented by Assistant U.S. Attorney Greg Deis.
Making false statements carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If It’s Too Good To Be True, It Might be a Ponzi Scheme
If a respected member of your community offered you an investment opportunity, you might consider it. Especially if it’s a man of the cloth.
For nearly a decade, Martin Sigillito—a bishop in the American Anglican Convocation and a St. Louis attorney—convinced 200-plus people to do more than just consider it: they actually entrusted him with their money to invest in a financial venture. But this venture turned out to be an old-fashioned Ponzi scheme, and in April of this year, Sigillito was convicted of leading a conspiracy that swindled $52 million from victim investors.
How the scam began. In late 2000, Sigillito opened a law office but didn’t actually practice law—instead, he advertised his “international business consulting services.” One of the “services” he offered was participation in the British Lending Program (BLP), transformed by Sigillito into a Ponzi scheme. Through the BLP, investors could “loan” money to a real estate developer in the United Kingdom for short periods of time, mostly one year, at high rates of return—between 10 and 48 percent.
This real estate developer, according to Sigillito, had a knack for spotting undervalued properties he could flip for a profit, had options on land that would become valuable when re-zoned, and had inside connections with British authorities. It sounded like a win-win for investors.
Unfortunately, this British developer was not the wunderkind Sigillito made him out to be—he was just another link in the criminal conspiracy.
How did Sigillito convince his investors to part with their money? He exploited his personal ties to people and particular groups he was affiliated with—like his church, social clubs, professional acquaintances, family, and neighbors—in a technique known as affinity fraud. He also held himself up as an expert in international law and finance and claimed he was a lecturer at Oxford University in England (when in reality he had simply taken part in a summer legal program at Oxford).
Sigillito, who also conspired with another American attorney, insisted that his investors’ funds initially be placed into his trust account, from which he would take exorbitant fees for himself and his co-conspirators. Even though he told investors he would then transmit the money to the U.K., Sigillito actually kept most of the funds in one or more American bank accounts he controlled.
For a while, the scam was self-sustaining: Many investors let their interest payments accrue and rolled their loans over every year, plus Sigillito brought in enough new investors to make interest and principal payments to any previous investor who asked for payment. And all the while, he made enough in “fees” to support his affluent lifestyle: exclusive club memberships, expensive vacations, a country home, a chauffeur, private school for his kids, and collections of rare and antique books, maps, prints, coins, jewelry, and liquor.
How the scam ended. Eventually, an increasing number of investors meant increasing payout requirements, which resulted in the BLP making late interest payments or missing interest payments all together. Then investors began clamoring to withdraw their funds. And finally, Sigillito’s own assistant became suspicious of his activities and contacted the FBI.
The takeaway from this case? Fully investigate any investment opportunity before handing over your hard-earned money.
For nearly a decade, Martin Sigillito—a bishop in the American Anglican Convocation and a St. Louis attorney—convinced 200-plus people to do more than just consider it: they actually entrusted him with their money to invest in a financial venture. But this venture turned out to be an old-fashioned Ponzi scheme, and in April of this year, Sigillito was convicted of leading a conspiracy that swindled $52 million from victim investors.
How the scam began. In late 2000, Sigillito opened a law office but didn’t actually practice law—instead, he advertised his “international business consulting services.” One of the “services” he offered was participation in the British Lending Program (BLP), transformed by Sigillito into a Ponzi scheme. Through the BLP, investors could “loan” money to a real estate developer in the United Kingdom for short periods of time, mostly one year, at high rates of return—between 10 and 48 percent.
This real estate developer, according to Sigillito, had a knack for spotting undervalued properties he could flip for a profit, had options on land that would become valuable when re-zoned, and had inside connections with British authorities. It sounded like a win-win for investors.
Unfortunately, this British developer was not the wunderkind Sigillito made him out to be—he was just another link in the criminal conspiracy.
How did Sigillito convince his investors to part with their money? He exploited his personal ties to people and particular groups he was affiliated with—like his church, social clubs, professional acquaintances, family, and neighbors—in a technique known as affinity fraud. He also held himself up as an expert in international law and finance and claimed he was a lecturer at Oxford University in England (when in reality he had simply taken part in a summer legal program at Oxford).
Sigillito, who also conspired with another American attorney, insisted that his investors’ funds initially be placed into his trust account, from which he would take exorbitant fees for himself and his co-conspirators. Even though he told investors he would then transmit the money to the U.K., Sigillito actually kept most of the funds in one or more American bank accounts he controlled.
For a while, the scam was self-sustaining: Many investors let their interest payments accrue and rolled their loans over every year, plus Sigillito brought in enough new investors to make interest and principal payments to any previous investor who asked for payment. And all the while, he made enough in “fees” to support his affluent lifestyle: exclusive club memberships, expensive vacations, a country home, a chauffeur, private school for his kids, and collections of rare and antique books, maps, prints, coins, jewelry, and liquor.
How the scam ended. Eventually, an increasing number of investors meant increasing payout requirements, which resulted in the BLP making late interest payments or missing interest payments all together. Then investors began clamoring to withdraw their funds. And finally, Sigillito’s own assistant became suspicious of his activities and contacted the FBI.
The takeaway from this case? Fully investigate any investment opportunity before handing over your hard-earned money.
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