Friends of ours: Joseph "Joey the Clown" Lombardo
Friends of mine: Irwin Weiner
Emma Seifert had just gotten her sick 4-year-old son settled in the office she shared with her husband and was preparing to make her morning coffee when two gunmen burst through the door.
"I believe they said, 'This is a robbery and where is ...' I don't know if they called him my husband or 'that SOB,' " Seifert told jurors Thursday as she described how mobsters gunned down her husband, Daniel, on the morning of Sept. 27, 1974. "I screamed but obviously not loud enough, because Daniel didn't hear me," Seifert said.
She gave perhaps the most powerful testimony yet in the federal trial in Chicago of five alleged organized crime figures, including two prominent mob bosses.
Daniel Seifert was to be a key government witness against Joseph "Joey the Clown" Lombardo, who had been charged with ripping off a Teamsters Union pension fund. When Seifert was killed, the case against Lombardo evaporated. Lombardo is one of the five men on trial as federal prosecutors seek to pin 18 murders, including Seifert's, on the mob.
Emma Seifert testified that she couldn't be definite but believed one of the three gunmen she saw that day was Lombardo -- based on his height, build and lightness on his feet. "Joey was a boxer and very light on his feet," she said.
She acknowledged under questioning by one of Lombardo's defense attorneys that she did not initially tell police about her suspicion. She said she feared for her family's safety but did tell her brother-in-law that day of her belief, according to court testimony.
Her son, Joseph, was there the day his father was killed and also was in court Thursday to hear her testimony, as was his half-brother, Nick. "We felt that she was very courageous," Joseph said of his mom's testimony, speaking for himself and Nick.
He praised the prosecution, saying, "for us, it was an incredibly enlightening day of testimony, of hearing different details and different sides."
Testimony on Thursday revealed that Daniel Seifert became a business associate of mobsters after he did some carpentry work with a mobbed-up businessman, Irwin Weiner.
Weiner helped bankroll the fiberglass factory that Seifert operated. Weiner was friends with Lombardo, and soon Lombardo was hired at the factory, but Emma Seifert testified she never saw him do any work.
Lombardo and Seifert were close, so close that Seifert named his son, Joseph, after him. But relations soured, and Seifert left to start his own business, his widow testified. When the mob later learned that Seifert was cooperating with the feds, the threats began, culminating in his slaying, she told jurors.
Emma Seifert testified that her son had gone into the fiberglass factory first that morning, with her husband trailing behind. Two gunmen burst through a back door, pushed her to the floor and jumped Daniel Seifert in the entryway, hitting him in the head with a gun.
With her husband down, Emma tried to get into her office desk where there was a gun, but the drawer was locked and one of the gunmen herded her and her son into a bathroom, she told the jury.
She heard a gunshot and then heard nothing for a few seconds, told her son to stay put and went back to her desk, Emma said. She saw her husband running for his life across the factory parking lot -- the last time she would see him alive, she testified. Emma said she locked the office door and called police. Emma told jurors that her husband ran through another building, and one of the gunmen shot him. As he lay on the grass, a gunman came up to him and delivered a point-blank shot to his head, according to her testimony.
Thanks to Steve Warmbir
Saturday, June 30, 2007
The Mob Turns Down the CIA
The CIA released classified documents Wednesday admitting that the spy agency once recruited mafia hit man Johnny Roselli to try to kill Fidel Castro. However, the gangster turned the U.S. government down. The mob won't get in bed with just anybody.
Friday, June 29, 2007
Mob Scion Admits No-Show Job Scam
Mob scion Anthony Colombo copped a plea to defrauding a Manhattan construction company, cutting his losses to avoid a retrial four months after a federal jury deadlocked on the charge.
The son of murdered mob boss Joseph Colombo, who ran an off-shoot crew with his brother, Chris Colombo, likely faces 18 months behind bars after he 'fessed up to landing a pal a no-show job at EDP Construction from 1999 to 2000. "I assisted Philip Dioguardi in obtaining a job with EDP entities knowing that he did not actually perform at all times the work he was paid for," Colombo said as he pleaded guilty in Manhattan federal court yesterday.
The reputed wiseguy dodged conviction in February when a jury acquitted him of racketeering and extortion, and failed to reach a verdict on two additional extortion counts and conspiracy.
At the same trial, Chris, who gained notoriety in 2005 by filming the failed reality show "House Arrest" for HBO, was convicted on two counts of gambling. In his opening and closing statements, his defense attorney conceded Chris had committed those crimes, but the jury acquitted Chris of two extortion raps and deadlocked on racketeering and other charges. During trial testimony, EDP owner Dominick Fonti said he was also duped into putting Anthony Colombo on his payroll - knowing nothing about his mob ties - and then watched helplessly as his businesses were drained of cash.
Fonti said he doled out a weekly $600 salary to Colombo and more than $24,000 in bonuses, agreeing to make the checks out to gangster's wife, Carol.
The small-business owner claimed he eventually wised up to the fact he was dealing with a son of a murdered Mafia boss and thought to himself, "Boy, Dominick. You really got yourself in deep s- - - here."
Thanks to Kati Cornell
The son of murdered mob boss Joseph Colombo, who ran an off-shoot crew with his brother, Chris Colombo, likely faces 18 months behind bars after he 'fessed up to landing a pal a no-show job at EDP Construction from 1999 to 2000. "I assisted Philip Dioguardi in obtaining a job with EDP entities knowing that he did not actually perform at all times the work he was paid for," Colombo said as he pleaded guilty in Manhattan federal court yesterday.
The reputed wiseguy dodged conviction in February when a jury acquitted him of racketeering and extortion, and failed to reach a verdict on two additional extortion counts and conspiracy.
At the same trial, Chris, who gained notoriety in 2005 by filming the failed reality show "House Arrest" for HBO, was convicted on two counts of gambling. In his opening and closing statements, his defense attorney conceded Chris had committed those crimes, but the jury acquitted Chris of two extortion raps and deadlocked on racketeering and other charges. During trial testimony, EDP owner Dominick Fonti said he was also duped into putting Anthony Colombo on his payroll - knowing nothing about his mob ties - and then watched helplessly as his businesses were drained of cash.
Fonti said he doled out a weekly $600 salary to Colombo and more than $24,000 in bonuses, agreeing to make the checks out to gangster's wife, Carol.
The small-business owner claimed he eventually wised up to the fact he was dealing with a son of a murdered Mafia boss and thought to himself, "Boy, Dominick. You really got yourself in deep s- - - here."
Thanks to Kati Cornell
Chicago Pizza, Mob Style
Friends of ours: Jim Colissimo, Al Capone, Murray "the Camel" Humphreys, Sam "Momo" Giancana, Tony "the Big Tuna" Accardo, "Little" Jimmy Marcello, Angelo "the Hook" Lapietra, Nicholas Ferriola, Frank Calabrese Sr.
This is one of the "family secrets" that federal authorities exposed during their covert investigation of Chicago outfit bosses. The Connie's connection is among the secrets that will be revealed during the government prosecution of five ranking hoodlums-- a secret that we can tell you about tonight.
From Colissimo to Capone, Murray "the Camel" Humphreys to Sam "Momo" Giancana, "the Big Tuna" to "Little" Jimmy, for a century the backbone of Chicago organized crime has been the street tax on criminal activities such as gambling, jewel heists, prostitution and peep shows.
As video from a hidden FBI camera shows, vice operators pay when outfit toughs come calling, if they want to stay in business and keep their legs intact. According to federal investigators, from 1980 until 2001, the late outfit boss Angelo "the Hook" Lapietra ordered shakedowns totaling more than $300,000. Lapietra's nickname is derived from the meat hook from which he would hang debtors. Mob enforcers Nicholas Ferriola and Frank Calabrese Sr. were among those who collected the street tax.
Sometimes, they even muscled legitimate businesses for street taxes: from Rush Street taverns to restaurants, including beloved Chicago pizza maker Connie's.
For two decades, authorities say the owner of Connie's Pizza, Jim Stolfe, paid an outfit street tax of $500 per month to hoodlum Frank Calabrese Sr. The FBI contends Connie's was an extortion victim, pay up or pay the price, but Calabrese Sr.'s lawyer says the FBI has it wrong. "Mr. Stolfe went to my client's son's wedding-that'a all I really have to say. That doesn't sound like a shakedown," said Joe Lopez, Calabrese Sr. lawyer.
Connie's original location is on 26th Street, the heart of the outfit's 26th Street Crew that controlled crime syndicate rackets from the Loop to Chinatown. According to Calabrese Sr.'s, attorney, the pizzeria would actually employ mobsters to follow these familiar looking home delivery vans, reporting back to Connie's owner which drivers were sleeping on the job. "They were friends. My client was employed there for a number of years. They were friends and they remain friends," Lopez said.
Federal authorities say the Connie's connection surfaced during a meeting at the old neighborhood Italian-American Club in Bridgeport during Operation Family Secrets. While Calabrese's son Frank Jr. was working undercover for the FBI, he secretly recorded a conversation at the Italian-American Club with club president Dominic "Captain D" Difazio. Prosecutors say the tape reveals Difazio delivering the monthly street tax payment to the mob, on behalf of Connie's, which was owned by Difazio's brother-in-law.
Difazio did not return phone calls from the I-Team. Last year, Jim Stolfe turned over the management of Connie's Pizza to his son Marc, who declined the I-Team's invitation to speak on camera but left this phone message: "I really can't say much of anything without running the risk of getting myself in trouble with one side or the other. I hope you understand."
The I-Team left several messages at the home of former Connie's boss Jim Stolfe but didn't hear back. His son says Stolfe is out of town. Also, the I-Team did not receive a reply from the lawyer for Nick Ferriola, who pleaded guilty last week to his role in the outfit extortions.
Thanks to Chuck Goudie
This is one of the "family secrets" that federal authorities exposed during their covert investigation of Chicago outfit bosses. The Connie's connection is among the secrets that will be revealed during the government prosecution of five ranking hoodlums-- a secret that we can tell you about tonight.
From Colissimo to Capone, Murray "the Camel" Humphreys to Sam "Momo" Giancana, "the Big Tuna" to "Little" Jimmy, for a century the backbone of Chicago organized crime has been the street tax on criminal activities such as gambling, jewel heists, prostitution and peep shows.
As video from a hidden FBI camera shows, vice operators pay when outfit toughs come calling, if they want to stay in business and keep their legs intact. According to federal investigators, from 1980 until 2001, the late outfit boss Angelo "the Hook" Lapietra ordered shakedowns totaling more than $300,000. Lapietra's nickname is derived from the meat hook from which he would hang debtors. Mob enforcers Nicholas Ferriola and Frank Calabrese Sr. were among those who collected the street tax.
Sometimes, they even muscled legitimate businesses for street taxes: from Rush Street taverns to restaurants, including beloved Chicago pizza maker Connie's.
For two decades, authorities say the owner of Connie's Pizza, Jim Stolfe, paid an outfit street tax of $500 per month to hoodlum Frank Calabrese Sr. The FBI contends Connie's was an extortion victim, pay up or pay the price, but Calabrese Sr.'s lawyer says the FBI has it wrong. "Mr. Stolfe went to my client's son's wedding-that'a all I really have to say. That doesn't sound like a shakedown," said Joe Lopez, Calabrese Sr. lawyer.
Connie's original location is on 26th Street, the heart of the outfit's 26th Street Crew that controlled crime syndicate rackets from the Loop to Chinatown. According to Calabrese Sr.'s, attorney, the pizzeria would actually employ mobsters to follow these familiar looking home delivery vans, reporting back to Connie's owner which drivers were sleeping on the job. "They were friends. My client was employed there for a number of years. They were friends and they remain friends," Lopez said.
Federal authorities say the Connie's connection surfaced during a meeting at the old neighborhood Italian-American Club in Bridgeport during Operation Family Secrets. While Calabrese's son Frank Jr. was working undercover for the FBI, he secretly recorded a conversation at the Italian-American Club with club president Dominic "Captain D" Difazio. Prosecutors say the tape reveals Difazio delivering the monthly street tax payment to the mob, on behalf of Connie's, which was owned by Difazio's brother-in-law.
Difazio did not return phone calls from the I-Team. Last year, Jim Stolfe turned over the management of Connie's Pizza to his son Marc, who declined the I-Team's invitation to speak on camera but left this phone message: "I really can't say much of anything without running the risk of getting myself in trouble with one side or the other. I hope you understand."
The I-Team left several messages at the home of former Connie's boss Jim Stolfe but didn't hear back. His son says Stolfe is out of town. Also, the I-Team did not receive a reply from the lawyer for Nick Ferriola, who pleaded guilty last week to his role in the outfit extortions.
Thanks to Chuck Goudie
Thursday, June 28, 2007
The Shark Attacks: Focus on the Daniel Seifert Murder
Attorney Joseph "The Shark" Lopez, who is representing Frank Calabrese Sr. in the Chicago Family Secrets Mob Trial, has agreed to provide us with updates on his observations and thoughts regarding the various court proceedings.
Today, Shark responds to the testimony powerful testimony of Emma Siefert, the widow of murder victim, Daniel Siefert.
Today, Shark responds to the testimony powerful testimony of Emma Siefert, the widow of murder victim, Daniel Siefert.
"Another long day in court focused on the (Daniel) Seifert murder. Mrs. (Emma) Seifert was on stand and said one time her husband put on a hood and grabbed a shotgun and went into the plastic shop and shot over the heads of his employees! Wow! Then she said one resembled Mr. Lombardo, but she did not tell anyone this for a few decades.
She described the day of her husband's demise. She called the police. Another witness saw it happen: there were two cars a brown Ford and white and blue Charger. They fled the scene. The chief of police of Elmhurst testified that he was a rookie on this day and that he was in a two man squad when they heard over the radio of the shooting. They went to a Pontiac dealer on Grand and the Ford pulled into the lot right past them. A few minutes later the blue Charger arrived. They must have froze because occupants exited the Ford and Charger and took off. Two squads chased and they got away!!
Imagine if they had caught the car, we would know who was in the car. The ford was recovered it was modified with a hot ignition and drilled air filter with switches to turn off lights, 007 Chi-town Ford style. One witness claimed that the passenger looked like the Ant! (Tony Spilotro). Another witness said a tall guy got out of ford and said hi and stated his car was ready. The squad car was in the same lot when this was happening. If it had been Chicago CPD they would have been blasting away!
Its hard to imagine how they did not get caught and we still do not know who was in the car, but the driver was good. It hit a car and kept going in and out of traffic right into North lake... We saw photos as Matt Lydon ex-Assistant United States Attorney described his case against Irv Weiner, Lombardo and others. After Seifert was gone, the case fell apart. All were aquitted. Case against defendant Lombardo was dropped.
Today all three prosecutors took turns. Defense lawyers were awake and not sleeping, Judge Zagel doing an excellent job of moving trial along at a good pace and he is always very pleasant to all." - Shark
Hollywood Celebrity P.I. Prime Topic at Mob Trial
A top Hollywood private investigator, Anthony Pellicano, now in jail battling charges he illegally wiretapped enemies of the rich and famous, worked under reputed top mobster Joseph "Joey the Clown" Lombardo three decades ago when Pellicano lived in Chicago, according to court testimony Wednesday.
Pellicano allegedly had a mob henchman, Alva Johnson Rodgers, blow up a Mount Prospect home and was upset when the man wouldn't torch a restaurant, according to Rodgers' testimony in the historic Family Secrets mob trial in Chicago.
Pellicano allegedly had a mob henchman, Alva Johnson Rodgers, blow up a Mount Prospect home and was upset when the man wouldn't torch a restaurant, according to Rodgers' testimony in the historic Family Secrets mob trial in Chicago.
Pellicano's mob past in Chicago has long been hinted at, but the trial on Wednesday offered the first public, detailed testimony on what Pellicano allegedly did when he was in Chicago.
Pellicano's mob past in Chicago has long been hinted at, but the trial on Wednesday offered the first public, detailed testimony on what Pellicano allegedly did when he was in Chicago.
Pellicano's attorney, Steven Gruel, could not be reached Wednesday but has rejected claims that his client was mobbed up.
Rodgers, 78, testified with a Texas twang as he described to jurors how he went from a petty car thief to hanging out with Outfit members after he befriended Chicago mobster Marshall Caifano when they were both in prison in the early 1970s.
Rodgers said he saw Pellicano with Lombardo several times.
Rodgers burned down a Mount Prospect home that no one was living in at the time after Pellicano paid him $5,000.
Another time, Rodgers said Pellicano wanted him to close down a Chicago restaurant after a woman who had invested in the place wasn't getting any return.
Rodgers hired some kids to knock out the windows but said he balked when Pellicano wanted him to burn it down because the place was open 24 hours a day.
Rodgers, who mainly stole cars, came under a withering grilling by Lombardo's attorney, Rick Halprin, who mocked his testimony.
"You were, if you pardon the expression, just a bust-out loser?" Halprin asked.
"Probably, yeah," Rodgers conceded. But Rodgers added that he did do 11 years in prison for a bank robbery. "Is that heavy enough?"
"I'm glad you're not modest," Halprin said. "The bank robbery is probably the highlight of your career?"
"Well, sort of," Rodgers said.
Through his questions, Halprin mocked Rodgers' plan in the 1970s to take over the porn industry in Chicago.
Halprin asked how Rodgers could get the loans to buy millions of dollars of pornography.
"Based on your good credit, right?"
Thanks to Steve Warmbir
Pellicano allegedly had a mob henchman, Alva Johnson Rodgers, blow up a Mount Prospect home and was upset when the man wouldn't torch a restaurant, according to Rodgers' testimony in the historic Family Secrets mob trial in Chicago.Pellicano allegedly had a mob henchman, Alva Johnson Rodgers, blow up a Mount Prospect home and was upset when the man wouldn't torch a restaurant, according to Rodgers' testimony in the historic Family Secrets mob trial in Chicago.
Pellicano's mob past in Chicago has long been hinted at, but the trial on Wednesday offered the first public, detailed testimony on what Pellicano allegedly did when he was in Chicago.
Pellicano's mob past in Chicago has long been hinted at, but the trial on Wednesday offered the first public, detailed testimony on what Pellicano allegedly did when he was in Chicago.
Pellicano's attorney, Steven Gruel, could not be reached Wednesday but has rejected claims that his client was mobbed up.
Rodgers, 78, testified with a Texas twang as he described to jurors how he went from a petty car thief to hanging out with Outfit members after he befriended Chicago mobster Marshall Caifano when they were both in prison in the early 1970s.
Rodgers said he saw Pellicano with Lombardo several times.
Rodgers burned down a Mount Prospect home that no one was living in at the time after Pellicano paid him $5,000.
Another time, Rodgers said Pellicano wanted him to close down a Chicago restaurant after a woman who had invested in the place wasn't getting any return.
Rodgers hired some kids to knock out the windows but said he balked when Pellicano wanted him to burn it down because the place was open 24 hours a day.
Rodgers, who mainly stole cars, came under a withering grilling by Lombardo's attorney, Rick Halprin, who mocked his testimony.
"You were, if you pardon the expression, just a bust-out loser?" Halprin asked.
"Probably, yeah," Rodgers conceded. But Rodgers added that he did do 11 years in prison for a bank robbery. "Is that heavy enough?"
"I'm glad you're not modest," Halprin said. "The bank robbery is probably the highlight of your career?"
"Well, sort of," Rodgers said.
Through his questions, Halprin mocked Rodgers' plan in the 1970s to take over the porn industry in Chicago.
Halprin asked how Rodgers could get the loans to buy millions of dollars of pornography.
"Based on your good credit, right?"
Thanks to Steve Warmbir
Bust-out Loser Testifies Against Joey the Clown
Friends of ours: Marshall Caifano, Joey "the Clown" Lombardo
Friends of mine: Alva Johnson Rodgers, Anthony Pellicano
Alva Johnson Rodgers walked slowly into the Family Secrets trial Wednesday with a criminal record as long as his Texas drawl.
As Rodgers swore to tell the truth, he raised his left hand before quickly catching his mistake and thrusting his right hand into the air.
He's been in prison almost of third of his 78 years, Rodgers said with a hint of pride. There were auto thefts in Arkansas, Arizona and California; a bank robbery in New Jersey; the counterfeiting case in New Orleans; fake stock certificates in Florida; and a plan to bring "a boatload" of marijuana from South America. But he had never met a Chicago mobster until he helped free one from federal prison in Georgia. Rodgers, a jailhouse lawyer, said his legal research found a flaw in the sentence of his cellmate, reputed Outfit hit man Marshall Caifano.
"The Appellate Court believed us and turned him loose," Rodgers, testifying under immunity from prosecution, told a federal jury. Caifano didn't forget the favor, paying for the lawyer who was able to get Rodgers out too. It was 1973, and Rodgers was soon on his way to Chicago to start working for Caifano and his friends, including reputed mob boss Joey "the Clown" Lombardo, he said.
Lombardo and four others are on trial in an alleged conspiracy to carry out Outfit business that included 18 gangland slayings decades ago. Rodgers was called by the prosecution to tell what he knows about Lombardo's control over the mob.
Dressed in a dark suit, peach shirt and dark teal tie, the gray-haired Rodgers sometimes had to lean forward on the witness stand to hear questions. He was asked if he saw Lombardo in court Wednesday. "Yeah, I see him. He just stood up," Rodgers said. Lombardo then sat back down, leaned forward and rested his chin on one hand, appearing to pay close attention.
Under questioning by Assistant U.S. Atty. John Scully, Rodgers said his first memory of Lombardo was when Lombardo was promoted within the Outfit ahead of his friend Caifano. Soon he and Caifano were taking orders from Lombardo, Rodgers said. Rodgers said he sometimes drove Lombardo around town when Lombardo had a police scanner in his car. Once, he said, they realized they were listening to their police tail. "Apparently, they considered him to be 'the Clown,' and me 'the Rabbit,' " Rodgers said. "We heard every word."
Within a year, Rodgers said, Lombardo allowed him and Caifano to try to take over the porn industry in Chicago. Rodgers said he opened a fictitious business to make peep-show booths and among the visitors were Lombardo and Lombardo's friend Anthony Pellicano, who went on to become a Hollywood private investigator who is awaiting trial in a highly publicized wiretapping case.
The peep-show business was located just a few blocks from a Catholic church, Rodgers said. "When Lombardo found out about it, he came around and told me not to put the store there," Rodgers told jurors. He said he eventually was sent to to take a cut of the profits from a business being opened on North Wells Street by William "Red" Wemette who also testified against Lombardo this week.
Rodgers said he went on to give Lombardo the idea of setting fire to a rival's giant warehouse of pornography as part of the bid to take over the distribution in Chicago. Rodgers also said he set a house fire for Pellicano and delivered cryptic messages to movie production companies to "join the association." A lawyer for Pellicano did not immediately return a call seeking comment on the allegations.
On cross-examination, Lombardo's lawyer, Rick Halprin, mocked Rodgers and his alleged connection to the reputed mob heavyweight. Rodgers again leaned forward to try to hear. "I know I'm not the government, so maybe you should lean back," said Halprin, who then asked whether Rodgers was involved only in minor crimes.
"You were just a bust-out loser?" asked Halprin, quickly saying he meant no insult.
"I did 11 years in prison for that bank robbery," Rodgers said.
"I'm glad you're not modest," the lawyer shot back.
Halprin asked Rodgers where he was planning to get $2 million to replace the pornography he planned to destroy in the warehouse.
"Your good credit?" said Halprin, who feigned a talk Rodgers might have with a loan officer. "Oh, 'And I met Joey Lombardo in a sandwich shop?' "
Halprin scoffed at Rodgers' claim that his dealings with Wemette were on behalf of the mob. He suggested the two were just close friends and noted that Rodgers had once driven Wemette's car to California. Even some jurors smiled as Rodgers said that had been a stolen car -- with Wemette's plates on it.
Also Wednesday, prosecutors played for jurors undercover audio recordings of Lombardo from a 1979 investigation into labor racketeer Allen Dorfman. Lombardo could be heard threatening the life of a casino owner who failed to repay a loan.
And defense lawyers cross-examined Wemette, who had testified about paying street tax to the Outfit from his adult bookstore. Halprin asked Wemette when he had given the FBI information on the sensational 1955 murders of young brothers John and Anton Schuessler and their friend Robert Peterson. In a bid to undercut Wemette's credibility, the defense brought out that Wemette claimed that Kenneth Hansen had confessed to the triple murder in 1968 and that he tipped off the FBI in 1971. Yet Hansen wasn't charged and convicted until the 1990s.
"The people I did speak to about it were really not interested in what I had to say." Wemette said.
Prosecutors repeatedly objected, and Halprin was forced to drop the matter.
Thanks to Jeff Coen
Friends of mine: Alva Johnson Rodgers, Anthony Pellicano
Alva Johnson Rodgers walked slowly into the Family Secrets trial Wednesday with a criminal record as long as his Texas drawl.
As Rodgers swore to tell the truth, he raised his left hand before quickly catching his mistake and thrusting his right hand into the air.
He's been in prison almost of third of his 78 years, Rodgers said with a hint of pride. There were auto thefts in Arkansas, Arizona and California; a bank robbery in New Jersey; the counterfeiting case in New Orleans; fake stock certificates in Florida; and a plan to bring "a boatload" of marijuana from South America. But he had never met a Chicago mobster until he helped free one from federal prison in Georgia. Rodgers, a jailhouse lawyer, said his legal research found a flaw in the sentence of his cellmate, reputed Outfit hit man Marshall Caifano.
"The Appellate Court believed us and turned him loose," Rodgers, testifying under immunity from prosecution, told a federal jury. Caifano didn't forget the favor, paying for the lawyer who was able to get Rodgers out too. It was 1973, and Rodgers was soon on his way to Chicago to start working for Caifano and his friends, including reputed mob boss Joey "the Clown" Lombardo, he said.
Lombardo and four others are on trial in an alleged conspiracy to carry out Outfit business that included 18 gangland slayings decades ago. Rodgers was called by the prosecution to tell what he knows about Lombardo's control over the mob.
Dressed in a dark suit, peach shirt and dark teal tie, the gray-haired Rodgers sometimes had to lean forward on the witness stand to hear questions. He was asked if he saw Lombardo in court Wednesday. "Yeah, I see him. He just stood up," Rodgers said. Lombardo then sat back down, leaned forward and rested his chin on one hand, appearing to pay close attention.
Under questioning by Assistant U.S. Atty. John Scully, Rodgers said his first memory of Lombardo was when Lombardo was promoted within the Outfit ahead of his friend Caifano. Soon he and Caifano were taking orders from Lombardo, Rodgers said. Rodgers said he sometimes drove Lombardo around town when Lombardo had a police scanner in his car. Once, he said, they realized they were listening to their police tail. "Apparently, they considered him to be 'the Clown,' and me 'the Rabbit,' " Rodgers said. "We heard every word."
Within a year, Rodgers said, Lombardo allowed him and Caifano to try to take over the porn industry in Chicago. Rodgers said he opened a fictitious business to make peep-show booths and among the visitors were Lombardo and Lombardo's friend Anthony Pellicano, who went on to become a Hollywood private investigator who is awaiting trial in a highly publicized wiretapping case.
The peep-show business was located just a few blocks from a Catholic church, Rodgers said. "When Lombardo found out about it, he came around and told me not to put the store there," Rodgers told jurors. He said he eventually was sent to to take a cut of the profits from a business being opened on North Wells Street by William "Red" Wemette who also testified against Lombardo this week.
Rodgers said he went on to give Lombardo the idea of setting fire to a rival's giant warehouse of pornography as part of the bid to take over the distribution in Chicago. Rodgers also said he set a house fire for Pellicano and delivered cryptic messages to movie production companies to "join the association." A lawyer for Pellicano did not immediately return a call seeking comment on the allegations.
On cross-examination, Lombardo's lawyer, Rick Halprin, mocked Rodgers and his alleged connection to the reputed mob heavyweight. Rodgers again leaned forward to try to hear. "I know I'm not the government, so maybe you should lean back," said Halprin, who then asked whether Rodgers was involved only in minor crimes.
"You were just a bust-out loser?" asked Halprin, quickly saying he meant no insult.
"I did 11 years in prison for that bank robbery," Rodgers said.
"I'm glad you're not modest," the lawyer shot back.
Halprin asked Rodgers where he was planning to get $2 million to replace the pornography he planned to destroy in the warehouse.
"Your good credit?" said Halprin, who feigned a talk Rodgers might have with a loan officer. "Oh, 'And I met Joey Lombardo in a sandwich shop?' "
Halprin scoffed at Rodgers' claim that his dealings with Wemette were on behalf of the mob. He suggested the two were just close friends and noted that Rodgers had once driven Wemette's car to California. Even some jurors smiled as Rodgers said that had been a stolen car -- with Wemette's plates on it.
Also Wednesday, prosecutors played for jurors undercover audio recordings of Lombardo from a 1979 investigation into labor racketeer Allen Dorfman. Lombardo could be heard threatening the life of a casino owner who failed to repay a loan.
And defense lawyers cross-examined Wemette, who had testified about paying street tax to the Outfit from his adult bookstore. Halprin asked Wemette when he had given the FBI information on the sensational 1955 murders of young brothers John and Anton Schuessler and their friend Robert Peterson. In a bid to undercut Wemette's credibility, the defense brought out that Wemette claimed that Kenneth Hansen had confessed to the triple murder in 1968 and that he tipped off the FBI in 1971. Yet Hansen wasn't charged and convicted until the 1990s.
"The people I did speak to about it were really not interested in what I had to say." Wemette said.
Prosecutors repeatedly objected, and Halprin was forced to drop the matter.
Thanks to Jeff Coen
The Shark Attacks: Analysis of Family Secrets Mob Trial for 6/27
Attorney Joseph "The Shark" Lopez, who is representing Frank Calabrese Sr. in the Chicago Family Secrets Mob Trial, has agreed to provide us with updates on his observations and thoughts regarding the various court proceedings.
Today, Shark responds to the testimony of porn shop owner, William "Red" Wemette, Alva Rogers, and Jim Wagner
Today, Shark responds to the testimony of porn shop owner, William "Red" Wemette, Alva Rogers, and Jim Wagner
"What a day in court! Red Wemette as usual was a classic. Alva Rodgers, forgetaboutit! Lombardo's lawyer flattened him out. What a character. He used run the G&O at Grand and Ogden, I think it was on the southwest corner where Timo is now. There was a strip mall, it was kitty corner to the bike shop that is now a restaurant called Twisted Spoke. It was back in the day as they would say.
Rodgers is 78 and looks the part of grandpa with a mean streak. He went to the West Coast to tell someone to join the association. Not clear what that means, but he went by car. The jury is paying close attention to everything happening. The ex-FBI agent (James Wagner, now president of the Chicago Crime Commission) was kind of boring. It's clear he makes a lot more in the private sector than he did as government employee. Some people love the public service. He clearly did (as) he was on the force for a long time.
Back to Alva, get the transcript, Halprin was great as usual. He hammered away but in the end it was unclear why Alva was here. It had nothing to do with the charges.
Finally, Red (Wemette) admitted the IRS was on him. Alva said the same. Red admitted he lied under oath. Tomorrow is another day. At least we got Marcus Funk up there today, he added a new dimension to the prosecution team with his young blood and he is quite a sailor." - Shark
Wednesday, June 27, 2007
Lombardo Feels Like Sadaam
Friends of ours: Joey "The Clown" Lombardo, James Marcello, John “No Nose” DiFronzo, Alphonse “Pizza Al” Tornabene
He has one of the most famous names in Chicago. It ranks right up there with Daley, Sandburg, Oprah and Susie Snowflake. I’m talking about Joe Padula. Some brave people call him “Lumpy.”
His real name is Joe Lombardo. You probably know him as “Joey the Clown,” currently standing trial in federal court in Chicago as the highest-ranking member of the Chicago Outfit.
For more than 50 years, Joey “the Clown” Lombardo has had the most prominent moniker in a fraternity where everybody knows your nickname.
As you know, most clowns don’t talk much. They’re more into pantomime, sight gags and slapstick.
Joe Lombardo’s actions have always spoken louder than his words. Like when the feds say he gave the nod to Outfit hit men to kill people, including witnesses set to testify against him. Or when, the feds say, he had a guy killed in front of his wife and 4-year-old son. Or when he bribed and extorted people, skimmed from Las Vegas casinos, and stole from labor unions.
He’s never really talked much. There was the newspaper he once used as a facemask, complete with cutaway eyeholes, to hide from reporters after a court appearance.
Lombardo’s favorite pose for police mug shots was with his mouth stretched wide open, as if at the dentist, disfiguring his facial features.
Now 78, Lombardo must be going soft on the pratfalls and practical jokes. As he sat in court last week, he wanted to talk about serious things. With me.
Our conversation took place during a break while the lawyers were out of the room. A few deputy U.S. Marshals stood nearby to make sure the Clown didn’t try to escape in his wheelchair or use his cane as a ball bat.
He was talking with a deputy about how people in all types of jobs are replaceable. Even his job, Lombardo said, whatever that may be. And then the Clown looked squarely at me and said, “If reporters are killed, they’re replaceable too.”
What a jokester.
He muttered something about cockroaches and mosquitoes.
“I watched you when you were reporting in Iraq,” he then told me, referring to TV stories I filed from the Middle East last year. He said he watched on a big screen TV.
That means he was watching TV news in his final days of freedom. After being a federal fugitive for nine months, Lombardo was nabbed on Jan. 13, 2006, in Elmwood Park, a few days after I left Baghdad. “I feel like Saddam sitting here,” he told me. “I know what he felt must’ve felt like.”
Like Saddam, Lombardo was sporting a full, fluffy beard when he was arrested after hiding out. And like Saddam, who was hanged for the execution-murders of 148 people, Lombardo could effectively face a death sentence. At his age, if convicted, his sentence will ensure he will never again see freedom and will die in prison.
“You were right,” he told me. “When you were over there in Iraq. It’s all about the First Amendment. Freedom of Speech.”
“Do you know who should be here in this courtroom?” Lombardo asked me.
Without waiting for my answer, he provided his own. “Bush and Cheney,” he said.
“What would you charge them with?” I asked the man charged in a case that includes 18 gangland murders.
Lombardo thought for a moment and answered “murder.”
“Look at all those people who have been killed or injured,” he said, citing the thousands of Americans and Iraqis.
And then he said Bush and Cheney are like two bank robbers. If one shoots and kills a teller, the other is still liable for murder. Just like Bush and Cheney, he said.
Lombardo was about 15 feet away from me. He was sitting at the defense table, but another of the five defendants was seated between us. Jimmy Marcello, a Lombardo underboss, stared straight ahead as our words passed in front of him.
Marcello, or “Little Jimmy,” never said a word or acknowledged the conversation. Maybe Marcello, 65, was just deferring to his elder.
My tête-à -tête with Lombardo ended with a final shot from the Clown.
“They still don’t have the guy, do they?” he asked, implying that there was some mega-mobster out there still calling the shots.
“Who is the guy that they don’t have?” I asked Lombardo, thinking he was about to drop the name of John “No Nose” DiFronzo or Alphonse “Pizza Al” Tornabene. But Joe Lombardo was still thinking globally. “They still don’t have the guy, Osama bin Laden.”
But they have the Clown. And that’s no joke.
Thanks to Chuck Goudie
He has one of the most famous names in Chicago. It ranks right up there with Daley, Sandburg, Oprah and Susie Snowflake. I’m talking about Joe Padula. Some brave people call him “Lumpy.”
His real name is Joe Lombardo. You probably know him as “Joey the Clown,” currently standing trial in federal court in Chicago as the highest-ranking member of the Chicago Outfit.
For more than 50 years, Joey “the Clown” Lombardo has had the most prominent moniker in a fraternity where everybody knows your nickname.
As you know, most clowns don’t talk much. They’re more into pantomime, sight gags and slapstick.
Joe Lombardo’s actions have always spoken louder than his words. Like when the feds say he gave the nod to Outfit hit men to kill people, including witnesses set to testify against him. Or when, the feds say, he had a guy killed in front of his wife and 4-year-old son. Or when he bribed and extorted people, skimmed from Las Vegas casinos, and stole from labor unions.
He’s never really talked much. There was the newspaper he once used as a facemask, complete with cutaway eyeholes, to hide from reporters after a court appearance.
Lombardo’s favorite pose for police mug shots was with his mouth stretched wide open, as if at the dentist, disfiguring his facial features.
Now 78, Lombardo must be going soft on the pratfalls and practical jokes. As he sat in court last week, he wanted to talk about serious things. With me.
Our conversation took place during a break while the lawyers were out of the room. A few deputy U.S. Marshals stood nearby to make sure the Clown didn’t try to escape in his wheelchair or use his cane as a ball bat.
He was talking with a deputy about how people in all types of jobs are replaceable. Even his job, Lombardo said, whatever that may be. And then the Clown looked squarely at me and said, “If reporters are killed, they’re replaceable too.”
What a jokester.
He muttered something about cockroaches and mosquitoes.
“I watched you when you were reporting in Iraq,” he then told me, referring to TV stories I filed from the Middle East last year. He said he watched on a big screen TV.
That means he was watching TV news in his final days of freedom. After being a federal fugitive for nine months, Lombardo was nabbed on Jan. 13, 2006, in Elmwood Park, a few days after I left Baghdad. “I feel like Saddam sitting here,” he told me. “I know what he felt must’ve felt like.”
Like Saddam, Lombardo was sporting a full, fluffy beard when he was arrested after hiding out. And like Saddam, who was hanged for the execution-murders of 148 people, Lombardo could effectively face a death sentence. At his age, if convicted, his sentence will ensure he will never again see freedom and will die in prison.“You were right,” he told me. “When you were over there in Iraq. It’s all about the First Amendment. Freedom of Speech.”
“Do you know who should be here in this courtroom?” Lombardo asked me.
Without waiting for my answer, he provided his own. “Bush and Cheney,” he said.
“What would you charge them with?” I asked the man charged in a case that includes 18 gangland murders.
Lombardo thought for a moment and answered “murder.”
“Look at all those people who have been killed or injured,” he said, citing the thousands of Americans and Iraqis.
And then he said Bush and Cheney are like two bank robbers. If one shoots and kills a teller, the other is still liable for murder. Just like Bush and Cheney, he said.
Lombardo was about 15 feet away from me. He was sitting at the defense table, but another of the five defendants was seated between us. Jimmy Marcello, a Lombardo underboss, stared straight ahead as our words passed in front of him.
Marcello, or “Little Jimmy,” never said a word or acknowledged the conversation. Maybe Marcello, 65, was just deferring to his elder.
My tête-à -tête with Lombardo ended with a final shot from the Clown.
“They still don’t have the guy, do they?” he asked, implying that there was some mega-mobster out there still calling the shots.
“Who is the guy that they don’t have?” I asked Lombardo, thinking he was about to drop the name of John “No Nose” DiFronzo or Alphonse “Pizza Al” Tornabene. But Joe Lombardo was still thinking globally. “They still don’t have the guy, Osama bin Laden.”
But they have the Clown. And that’s no joke.
Thanks to Chuck Goudie
Prosecution Portraying Lombardo as Top Level Mobster
Friends of ours: Joseph Aiuppa, Joseph "Joey the Clown" Lombardo
Friends of mine: Alan Dorfman
Chicago’s top mob boss Joseph Aiuppa wasn’t happy.
He was at a meeting in a suburban restaurant in April 1979 with another reputed top mobster, Joseph “Joey the Clown” Lombardo, and Alan Dorfman, an insurance executive who was the middleman between the mob and the Teamsters pension fund.
Aiuppa was jamming his finger and hands into the table to accentuate his points, according to retired FBI Agent Art Pfizenmayer, who testified today on the meeting he did surveillance on. “Dorfman kind of sat there with his hands in his lap,” Pfizenmayer said.
Pfizenmayer was sitting at the bar and could only hear a few snatches of conversation over the tinkle of glasses as the bartender cleaned up from the lunch crowd and the piped-in music.
Pfizenmayer’s testimony was part of the prosecution’s effort to establish that Lombardo was a mobster involved in the very top level of mob communications. Lombardo is charged with four other men as part of the historic Family Secrets mob case in federal court in Chicago.
Dorfman would later be killed in 1983 after he was convicted with Lombardo of conspiring to bribe U.S. Sen. Howard Cannon. Federal authorities have said Aiuppa approved Dorfman’s murder.
Earlier in the day at trial, former Old Town porn shop owner William “Red” Wemette underwent vigorous questioning by Lombardo’s attorney, Rick Halprin.
Wemette had earlier testified that he paid street tax payments to men he believed were Lombardo’s underlings. But under questioning by Halprin, Wemette testified he had never personally given Lombardo a dime.
Wemette also admitted he signed a false affidavit in the 1970s with IRS agents in which he described payments he made to an alleged Lombardo associate as being part of a business deal, rather than street tax payments.
Wemette, though, testified he had a separate, secret source relationship with the FBI, to whom he told the truth about the street tax payments.
Thanks to Steve Warmbir
Friends of mine: Alan Dorfman
Chicago’s top mob boss Joseph Aiuppa wasn’t happy.
He was at a meeting in a suburban restaurant in April 1979 with another reputed top mobster, Joseph “Joey the Clown” Lombardo, and Alan Dorfman, an insurance executive who was the middleman between the mob and the Teamsters pension fund.
Aiuppa was jamming his finger and hands into the table to accentuate his points, according to retired FBI Agent Art Pfizenmayer, who testified today on the meeting he did surveillance on. “Dorfman kind of sat there with his hands in his lap,” Pfizenmayer said.
Pfizenmayer was sitting at the bar and could only hear a few snatches of conversation over the tinkle of glasses as the bartender cleaned up from the lunch crowd and the piped-in music.
Pfizenmayer’s testimony was part of the prosecution’s effort to establish that Lombardo was a mobster involved in the very top level of mob communications. Lombardo is charged with four other men as part of the historic Family Secrets mob case in federal court in Chicago.
Dorfman would later be killed in 1983 after he was convicted with Lombardo of conspiring to bribe U.S. Sen. Howard Cannon. Federal authorities have said Aiuppa approved Dorfman’s murder.
Earlier in the day at trial, former Old Town porn shop owner William “Red” Wemette underwent vigorous questioning by Lombardo’s attorney, Rick Halprin.
Wemette had earlier testified that he paid street tax payments to men he believed were Lombardo’s underlings. But under questioning by Halprin, Wemette testified he had never personally given Lombardo a dime.
Wemette also admitted he signed a false affidavit in the 1970s with IRS agents in which he described payments he made to an alleged Lombardo associate as being part of a business deal, rather than street tax payments.
Wemette, though, testified he had a separate, secret source relationship with the FBI, to whom he told the truth about the street tax payments.
Thanks to Steve Warmbir
All American Mafioso: The Johnny Roselli
Friends of ours, Johnny Rosselli, Al Capone
Big news this week when the CIA released several internal reports known as the "family jewels". The plethora or reports brought out additional confirmation the Mob was hired by the CIA to kill Castro. Cheri Rohn, who co-wrote Thief! The Gutsy, True Story of an Ex-Con Artist
with Slick Hanner reminded me that this CIA material was spelled out in detail in the 1991 book, All American Mafioso: The Johnny Rosselli. It was written by Charles Rappleye and Ed Becker. Proving it is a small world, Ed Becker was the literay agent for Thief.
In All-American Mafioso
, Rosselli, brought to this country from Italy as a child, was a key figure in organized crime for decades until he was murdered in 1976. Los Angeles freelance journalist Rappleye and private eye Becker trace the rise of this gangster who began his career working for Al Capone, moved to Hollywood at a time when the mob was making inroads into the film industry, switched his residence to Las Vegas when the first Cosa Nostra-financed casinos were built, and played a major role in the CIA's abortive attempts to assassinate Fidel Castro. The book draws a deeply depressing picture of American life with its contention that many important figures in business and politics are beholden to the Mafia, including John Kennedy, who, the authors suggest, was killed by the mob.
Big news this week when the CIA released several internal reports known as the "family jewels". The plethora or reports brought out additional confirmation the Mob was hired by the CIA to kill Castro. Cheri Rohn, who co-wrote Thief! The Gutsy, True Story of an Ex-Con Artist
with Slick Hanner reminded me that this CIA material was spelled out in detail in the 1991 book, All American Mafioso: The Johnny Rosselli. It was written by Charles Rappleye and Ed Becker. Proving it is a small world, Ed Becker was the literay agent for Thief.In All-American Mafioso
, Rosselli, brought to this country from Italy as a child, was a key figure in organized crime for decades until he was murdered in 1976. Los Angeles freelance journalist Rappleye and private eye Becker trace the rise of this gangster who began his career working for Al Capone, moved to Hollywood at a time when the mob was making inroads into the film industry, switched his residence to Las Vegas when the first Cosa Nostra-financed casinos were built, and played a major role in the CIA's abortive attempts to assassinate Fidel Castro. The book draws a deeply depressing picture of American life with its contention that many important figures in business and politics are beholden to the Mafia, including John Kennedy, who, the authors suggest, was killed by the mob.
Mobster's Visit Meets with Gunfire
Friends of ours: John Agathos Sr., Genovese Crime Family
A police officer fired a shot at a man who tried to ram a cop while making his getaway after shooting the front door of a residence where a reputed mob figure was visiting family, officials said.
Bernard Yanotta, 65, of Meadow Lane , made his first court appearance yesterday on three counts of aggravated assault and weapons offenses on charges that he shot at the home of Helene Agathos-Schoendorf, officials said. Police also alleged he tried to ram Sgt. Thomas Borrelli with his Ford Explorer and pointed a pistol at him, Hudson County Prosecutor Edward DeFazio said.
Neighbors and law enforcement sources say reputed Genovese crime family associate John Agathos Sr. was at the home at the time of the shooting. The bullet lodged in the front door and no one was injured, DeFazio said. Officials say there is no reason to believe Agathos was the target, saying only that the motive of the shooting was related to a dispute over money, officials said.
When Yanotta's Explorer collided with the police vehicle, Borrelli got out of his cruiser and fired a round at Yanotta's car as he drove with gun in hand, DeFazio said, adding that Yanotta was not hit. Yanotta was then arrested by other officers, DeFazio said.
Emmett Thompson, a neighbor who has lived across from the Agathos home since 1967, said he took a look when he heard the ruckus on the night of the shooting. "I looked out the window and saw a lot of police cars," Thompson said yesterday. "The father (John Agathos Sr.) came out of the house in a robe, then got in the car and drove away." Thompson said he's known the Agathos family for years. "I know Helene a long time, watched her grow up."
Yanotta, a first-time offender, appeared in court via video link from Hudson County jail in Kearny . When asked if he had any questions, Yanotta said: "I was just hoping to have the bail reduced. I've been a good citizen all my life." But Nieto said the charges were too serious.
According to a report to Congress by the Office of the Inspector General in 1996, Agathos was removed and banned for life from membership in the Hotel Employees & Restaurant Employees International Union Local 69 in Secaucus, where he served as president.
The report stated that "Local 69 President, John Agathos Sr., and fund administrator, John Agathos Jr., were associated with the Genovese "la cosa nostra" family." It was "also determined that John Agathos Sr. embezzled approximately $150,000 from the Local."
John Agathos Sr. was in the news again in 2005 when union official David Feeback was convicted of stealing money from the local. Assistant U.S. Attorney Grady O'Malley told The Star-Ledger at the time that Feeback was brought into the local by "alleged mob associate John N. Agathos."
Numerous attempts to reach Agathos-Schoendorf by phone yesterday were unsuccessful. Secaucus police would not confirm or deny the shooting even happened, despite the fact one of their officers had fired his gun.
Thanks to Michaelangelo Conte
A police officer fired a shot at a man who tried to ram a cop while making his getaway after shooting the front door of a residence where a reputed mob figure was visiting family, officials said.
Bernard Yanotta, 65, of Meadow Lane , made his first court appearance yesterday on three counts of aggravated assault and weapons offenses on charges that he shot at the home of Helene Agathos-Schoendorf, officials said. Police also alleged he tried to ram Sgt. Thomas Borrelli with his Ford Explorer and pointed a pistol at him, Hudson County Prosecutor Edward DeFazio said.
Neighbors and law enforcement sources say reputed Genovese crime family associate John Agathos Sr. was at the home at the time of the shooting. The bullet lodged in the front door and no one was injured, DeFazio said. Officials say there is no reason to believe Agathos was the target, saying only that the motive of the shooting was related to a dispute over money, officials said.
When Yanotta's Explorer collided with the police vehicle, Borrelli got out of his cruiser and fired a round at Yanotta's car as he drove with gun in hand, DeFazio said, adding that Yanotta was not hit. Yanotta was then arrested by other officers, DeFazio said.
Emmett Thompson, a neighbor who has lived across from the Agathos home since 1967, said he took a look when he heard the ruckus on the night of the shooting. "I looked out the window and saw a lot of police cars," Thompson said yesterday. "The father (John Agathos Sr.) came out of the house in a robe, then got in the car and drove away." Thompson said he's known the Agathos family for years. "I know Helene a long time, watched her grow up."
Yanotta, a first-time offender, appeared in court via video link from Hudson County jail in Kearny . When asked if he had any questions, Yanotta said: "I was just hoping to have the bail reduced. I've been a good citizen all my life." But Nieto said the charges were too serious.
According to a report to Congress by the Office of the Inspector General in 1996, Agathos was removed and banned for life from membership in the Hotel Employees & Restaurant Employees International Union Local 69 in Secaucus, where he served as president.
The report stated that "Local 69 President, John Agathos Sr., and fund administrator, John Agathos Jr., were associated with the Genovese "la cosa nostra" family." It was "also determined that John Agathos Sr. embezzled approximately $150,000 from the Local."
John Agathos Sr. was in the news again in 2005 when union official David Feeback was convicted of stealing money from the local. Assistant U.S. Attorney Grady O'Malley told The Star-Ledger at the time that Feeback was brought into the local by "alleged mob associate John N. Agathos."
Numerous attempts to reach Agathos-Schoendorf by phone yesterday were unsuccessful. Secaucus police would not confirm or deny the shooting even happened, despite the fact one of their officers had fired his gun.
Thanks to Michaelangelo Conte
Tuesday, June 26, 2007
The Shark Attacks: "Red" Wemette
Attorney Joseph "The Shark" Lopez, who is representing Frank Calabrese Sr. in the Chicago Family Secrets Mob Trial, has agreed to provide us with updates on his observations and thoughts regarding the various court proceedings.
Today, the Shark responds to the testimony of porn shop owner, William "Red" Wemette.
Today, the Shark responds to the testimony of porn shop owner, William "Red" Wemette.
I almost fell asleep while this chuch (ass) was testfying. The tapes showed he was not in fear of his safety. He forgot to tell the jury how the outfit bankrolled his porno store and put in the video machines in the beat-off booths. This guy is something. If the IRS did not come sniffing around he would still be in business. "The German" protected him from the others. It's a shame how the feds twisted the story around, this guy thinks he is Elliot Ness you should see what a dofus he is on the stand. He is so boring, it was killing me. I was narcoleptic between him and mars. I do not know who is more monotone and dry with no emotion.
I am waiting for Jr. (Frank Calabrese Jr.) and Nick (Nicholas Calabrese) to hit the stand for the fireworks. At least i made the front page of the Trib. The drawing took almost the whole front page, it was great. - Shark
Mob Hired by CIA to Kill Castro
Friends of ours: Johnny Rosselli, Sam Giancana, Santo Trafficante
The CIA recruited a former FBI agent to approach two of America's most-wanted mobsters and gave them poison pills meant for Fidel Castro during his first year in power, according to newly declassified papers released Tuesday.
Contained amid hundreds of pages of CIA internal reports collectively known as ''the family jewels,'' the official confirmation of the 1960 plot against Castro was certain to be welcomed by communist authorities as more proof of their longstanding claims that the United States wants Castro dead.
Communist officials say there have been more than 600 documented attempts to kill Castro over the decades. Now 80, Castro has not been seen in public since handing power to his younger brother Raul while recovering from intestinal surgery last July. But in a letter published on Monday, the elder Castro claimed without providing details that U.S. President George W. Bush had ''authorized and ordered'' his killing. And while Cuban government press officials didn't return a call seeking reaction Tuesday, the pending release of the newly declassified CIA documents had already been noted in state media.
''Upon the orders of the White House, the Central Intelligence Agency tried to assassinate President Fidel Castro and other former personalities and leaders,'' the Communist Party newspaper Granma said Saturday. ``What was already presumed and denounced will be corroborated.''
Other aborted U.S. attempts to kill Castro have been noted in other declassified documents.
The papers released Tuesday were part of a report prepared at the request of CIA Director James Schlesinger in 1973, who ordered senior agency officials to tell him of any current or past actions that could potentially violate the agency's charter.
Some details of the 1960 plot first surfaced in investigative reporter Jack Anderson's newspaper column in 1971.
The documents show that in August 1960, the CIA recruited ex-FBI agent Robert Maheu, then a top aide to Howard Hughes in Las Vegas, to approach mobster Johnny Roselli and pass himself off as the representative of international corporations that wanted Castro killed because of their lost gambling operations.
At the time, the bearded rebels had just outlawed gambling and destroyed the world-famous casinos American mobsters had operated in Havana. The Sopranos: 50 Count Cigar Humidor
Roselli introduced Maheu to ''Sam Gold'' and ''Joe.'' Both were mobsters on the U.S. government's 10-most wanted list: Momo Giancana, Al Capone's successor in Chicago; and Santos Trafficante, one of the most powerful mobsters in Batista's Cuba. The agency gave the reputed mobsters six poison pills, and they tried unsuccessfully for several months to have several people put them in Castro's food.
This particular assassination attempt was dropped after the failed CIA-sponsored Bay of Pigs invasion of Cuba in April 1961. The CIA was able to retrieve all the poison pills, records show.
Thanks to Anita Snow
The CIA recruited a former FBI agent to approach two of America's most-wanted mobsters and gave them poison pills meant for Fidel Castro during his first year in power, according to newly declassified papers released Tuesday.
Contained amid hundreds of pages of CIA internal reports collectively known as ''the family jewels,'' the official confirmation of the 1960 plot against Castro was certain to be welcomed by communist authorities as more proof of their longstanding claims that the United States wants Castro dead.
Communist officials say there have been more than 600 documented attempts to kill Castro over the decades. Now 80, Castro has not been seen in public since handing power to his younger brother Raul while recovering from intestinal surgery last July. But in a letter published on Monday, the elder Castro claimed without providing details that U.S. President George W. Bush had ''authorized and ordered'' his killing. And while Cuban government press officials didn't return a call seeking reaction Tuesday, the pending release of the newly declassified CIA documents had already been noted in state media.''Upon the orders of the White House, the Central Intelligence Agency tried to assassinate President Fidel Castro and other former personalities and leaders,'' the Communist Party newspaper Granma said Saturday. ``What was already presumed and denounced will be corroborated.''
Other aborted U.S. attempts to kill Castro have been noted in other declassified documents.
The papers released Tuesday were part of a report prepared at the request of CIA Director James Schlesinger in 1973, who ordered senior agency officials to tell him of any current or past actions that could potentially violate the agency's charter.
Some details of the 1960 plot first surfaced in investigative reporter Jack Anderson's newspaper column in 1971.
The documents show that in August 1960, the CIA recruited ex-FBI agent Robert Maheu, then a top aide to Howard Hughes in Las Vegas, to approach mobster Johnny Roselli and pass himself off as the representative of international corporations that wanted Castro killed because of their lost gambling operations.
At the time, the bearded rebels had just outlawed gambling and destroyed the world-famous casinos American mobsters had operated in Havana. The Sopranos: 50 Count Cigar Humidor
Roselli introduced Maheu to ''Sam Gold'' and ''Joe.'' Both were mobsters on the U.S. government's 10-most wanted list: Momo Giancana, Al Capone's successor in Chicago; and Santos Trafficante, one of the most powerful mobsters in Batista's Cuba. The agency gave the reputed mobsters six poison pills, and they tried unsuccessfully for several months to have several people put them in Castro's food.
This particular assassination attempt was dropped after the failed CIA-sponsored Bay of Pigs invasion of Cuba in April 1961. The CIA was able to retrieve all the poison pills, records show.
Thanks to Anita Snow
America's Most Wanted and The Chicago Syndicate for 6-30-07
America's Most Wanted and The Chicago Syndicate have partnered on AMW's upcoming episodes for Fox.
Lyle Baade: In September of 1993, 59-year-old heart patient Lyle Baade got a new lease on life. A tragic twist of fate gave him the transplant he needed to survive—Lyle received the heart of a 16-year-old murder victim by the name of Benny Zweigle. Seven years later, alive and well in Arizona , Baade was attending a homeowner’s meeting. Suddenly, a disgruntled neighbor by the name of Richard Glassel burst into the room--opening fire on the homeowner’s committee. Witnesses say Baade sprang into action. It was almost as if Benny, the 16-year-old heart donor was acting from beyond the grave.
Vicki Ragins Hero: In December of 2004, Shahidah Harley, her five children, and her sister Sheba were headed home to Atlanta after Thanksgiving. Shahidah lost control of her car and swerved into a water-filled canal. At the same time, 57-year-old Vicki Ragins was on her way to her son’s for breakfast. She saw Shahidah sitting on the side of the road in shock that while most of her family escaped the canal, her 13-month-old was still trapped in the car. Vicki’s terrified of water, but that didn’t stop her from diving in and saving the child’s life.
Michel Barrera: Police say Michel Barrera is responsible for the armed robbery of two Florida banks, and the attempted murder of Miami-Dade police officers in 1998. Now, seven years later, there’s still no trace of Barrera—and police are looking to AMW to track him down.
Stepha Henry: Friends and family of Stepha Henry say it would be very unlike for her to run away. The 22-year-old law school hopeful from New York disappeared last month while vacationing in Florida . Hopefully this week, AMW viewers can re-unite her with her family.
New York/Florida Serial Rapist: In August of 2005, a 68-year-old homeless woman was raped in Westside Manhattan. Police say that they may have found the man responsible, and that he could be behind brutal rapes in Florida and New York . This week we’ll feature interviews with Jacqueline, the courageous 68-year-old New York determined to fight back.
Israel Corral: Cops say Israel Corral was responsible for distributing guns and drugs all over the city of Detroit . He’s made big bucks in the process. This week, police are hoping that AMW tipsters can help track him down.
Cyril Byrd: While attending a New Year’s party in 1998, police say Byrd opened fire on a crowd of people—striking and killing one man. Now, nine years later, Byrd is still on the run. Cops if he’s not still in Ohio , he could be in California.
Joseph Fontana: Cops say Joseph Fontana seemed like a good guy. But upon moving to Fort Walton Beach , Florida —his true identity was revealed. Fontana allegedly made a new friend with her two young sons. What his new friend didn’t know is that Fontana was sexually molesting the boys for years.
Duane Bedford: Duane Bedford was a Philadelphia man who police say has a hot temper. And on May 28, 2006, after a neighbor accused him of breaking a window—witnesses say that Bedford exploded, shooting and killing his long time acquaintance. A year later, we’re making it our job to track Bedford down.
Jason Brown: Jason Brown has been an “AMW Dirty Dozen” member for quite a while now. He earned his spot by allegedly killing a Dunbar armored car driver in front of a Phoenix , Ariz. Multiplex in 2005. Cops say Brown is a one of the worst of the worst, but AMW viewers have already provided some great tips that have this fugitive feeling the heat.
Lyle Baade: In September of 1993, 59-year-old heart patient Lyle Baade got a new lease on life. A tragic twist of fate gave him the transplant he needed to survive—Lyle received the heart of a 16-year-old murder victim by the name of Benny Zweigle. Seven years later, alive and well in Arizona , Baade was attending a homeowner’s meeting. Suddenly, a disgruntled neighbor by the name of Richard Glassel burst into the room--opening fire on the homeowner’s committee. Witnesses say Baade sprang into action. It was almost as if Benny, the 16-year-old heart donor was acting from beyond the grave.Vicki Ragins Hero: In December of 2004, Shahidah Harley, her five children, and her sister Sheba were headed home to Atlanta after Thanksgiving. Shahidah lost control of her car and swerved into a water-filled canal. At the same time, 57-year-old Vicki Ragins was on her way to her son’s for breakfast. She saw Shahidah sitting on the side of the road in shock that while most of her family escaped the canal, her 13-month-old was still trapped in the car. Vicki’s terrified of water, but that didn’t stop her from diving in and saving the child’s life.
Michel Barrera: Police say Michel Barrera is responsible for the armed robbery of two Florida banks, and the attempted murder of Miami-Dade police officers in 1998. Now, seven years later, there’s still no trace of Barrera—and police are looking to AMW to track him down.
Stepha Henry: Friends and family of Stepha Henry say it would be very unlike for her to run away. The 22-year-old law school hopeful from New York disappeared last month while vacationing in Florida . Hopefully this week, AMW viewers can re-unite her with her family.
New York/Florida Serial Rapist: In August of 2005, a 68-year-old homeless woman was raped in Westside Manhattan. Police say that they may have found the man responsible, and that he could be behind brutal rapes in Florida and New York . This week we’ll feature interviews with Jacqueline, the courageous 68-year-old New York determined to fight back.
Israel Corral: Cops say Israel Corral was responsible for distributing guns and drugs all over the city of Detroit . He’s made big bucks in the process. This week, police are hoping that AMW tipsters can help track him down.
Cyril Byrd: While attending a New Year’s party in 1998, police say Byrd opened fire on a crowd of people—striking and killing one man. Now, nine years later, Byrd is still on the run. Cops if he’s not still in Ohio , he could be in California.
Joseph Fontana: Cops say Joseph Fontana seemed like a good guy. But upon moving to Fort Walton Beach , Florida —his true identity was revealed. Fontana allegedly made a new friend with her two young sons. What his new friend didn’t know is that Fontana was sexually molesting the boys for years.
Duane Bedford: Duane Bedford was a Philadelphia man who police say has a hot temper. And on May 28, 2006, after a neighbor accused him of breaking a window—witnesses say that Bedford exploded, shooting and killing his long time acquaintance. A year later, we’re making it our job to track Bedford down.
Jason Brown: Jason Brown has been an “AMW Dirty Dozen” member for quite a while now. He earned his spot by allegedly killing a Dunbar armored car driver in front of a Phoenix , Ariz. Multiplex in 2005. Cops say Brown is a one of the worst of the worst, but AMW viewers have already provided some great tips that have this fugitive feeling the heat.
Porn Dealer Says Street Tax Paid for Mob Protection
William "Red" Wemette, dressed like a prosperous small-town banker, told jurors Monday how reputed top mobster Joseph "Joey the Clown" Lombardo shook him down for thousands of dollars so Wemette could keep his pornography shop open.
When Wemette threatened to stop paying the "street tax" of $250 a week, a collector told him, in a congenial way, that he "could have an accident," Wemette testified in the federal trial of five alleged mob figures. "My building could be burned down. Anything could happen," Wemette said he was told.
While Lombardo allegedly required the payments, Wemette said he never put any money in Lombardo's hands -- only those of underlings, including reputed hitman Frank "The German" Schweihs, who would visit Wemette at his porn shop in Chicago's Old Town neighborhood.
Schweihs is too sick to stand trial, but Wemette identified Lombardo, both in court and from a photograph taken decades ago. "He looked a lot better then than he does now," Wemette said Monday. A wry smile spread across Lombardo's face.
Earlier in the day, an attorney for another man on trial, Anthony "Twan" Doyle, a retired Chicago police officer, punctuated the end of his opening statement by dismissively throwing the indictment in the case into an old-fashioned street sweeper's pushcart that the attorney had rolled into the courtroom.
The lawyer, Ralph Meczyk, said his client was a street sweeper not a street thug. Later on, Doyle got a job with the police department.
Doyle had a fierce loyalty to his badge and to his old friend, Frank Calabrese Sr., one of the five defendants, but never to the mob, Meczyk told the jury.
Prosecutors are expected to play secret tape recordings the FBI made of Doyle when he visited Calabrese Sr. in prison.
Calabrese Sr.'s brother Nicholas Calabrese, an admitted mob hitman, came under attack again Monday in the opening statement by the attorney for Paul Schiro. Schiro is accused of taking part in a mob hit on his close friend Emil Vaci, who allegedly was killed because mobsters worried he was testifying against them.
Schiro's attorney, Paul Wagner, said the only man linking his client to the slaying was Nick Calabrese, who will be the government's star witness. Wagner said it was Nick Calabrese who killed Vaci.
Thanks to Steve Warmbir
When Wemette threatened to stop paying the "street tax" of $250 a week, a collector told him, in a congenial way, that he "could have an accident," Wemette testified in the federal trial of five alleged mob figures. "My building could be burned down. Anything could happen," Wemette said he was told.
While Lombardo allegedly required the payments, Wemette said he never put any money in Lombardo's hands -- only those of underlings, including reputed hitman Frank "The German" Schweihs, who would visit Wemette at his porn shop in Chicago's Old Town neighborhood.
Schweihs is too sick to stand trial, but Wemette identified Lombardo, both in court and from a photograph taken decades ago. "He looked a lot better then than he does now," Wemette said Monday. A wry smile spread across Lombardo's face.
Earlier in the day, an attorney for another man on trial, Anthony "Twan" Doyle, a retired Chicago police officer, punctuated the end of his opening statement by dismissively throwing the indictment in the case into an old-fashioned street sweeper's pushcart that the attorney had rolled into the courtroom.
The lawyer, Ralph Meczyk, said his client was a street sweeper not a street thug. Later on, Doyle got a job with the police department.
Doyle had a fierce loyalty to his badge and to his old friend, Frank Calabrese Sr., one of the five defendants, but never to the mob, Meczyk told the jury.
Prosecutors are expected to play secret tape recordings the FBI made of Doyle when he visited Calabrese Sr. in prison.
Calabrese Sr.'s brother Nicholas Calabrese, an admitted mob hitman, came under attack again Monday in the opening statement by the attorney for Paul Schiro. Schiro is accused of taking part in a mob hit on his close friend Emil Vaci, who allegedly was killed because mobsters worried he was testifying against them.
Schiro's attorney, Paul Wagner, said the only man linking his client to the slaying was Nick Calabrese, who will be the government's star witness. Wagner said it was Nick Calabrese who killed Vaci.
Thanks to Steve Warmbir
Family Secrets Mob 101
It was Mob 101 in the Family Secrets trial Monday, and the prosecution's first witness started his history of the Outfit with its most notorious name: Al Capone.
With violence and savvy during the 1920s, Capone succeeded in uniting Chicago's underworld, which before Prohibition had been a morass of competing ethnic and racial groups, testified James Wagner, the president of the Chicago Crime Commission.
The five defendants on trial—some of whom are accused of running the modern-day mob—listened impassively, staring ahead or leaning over to whisper to their attorneys.
Wagner, a former FBI supervisor who spent his career investigating mobsters, testified with the tone of a college professor.
Capone and his organization figured out how to earn "vast sums of money" by catering to public demand for vices such as prostitution and gambling and then used that wealth in part to corrupt politicians, the legal system and law enforcement, Wagner said. Unlike New York's disparate crime families, the Chicago Outfit has been united under a single boss since Capone, its six mob crews carrying out its work, Wagner said. "That group he was able to form took control," Wagner said of Capone.
The government will rely on Wagner's primer on how the mob works to show jurors how the defendants used gambling, juice loans, street tax and violence to grow a crime empire that stretched to Las Vegas.
Many jurors took notes with their blue pens, writing as fast as Wagner spoke.
After working cases against the Genovese and Gambino families in New York, Wagner continued his mob-busting efforts in Chicago beginning in 1976, eventually heading an organized-crime squad for five years before his retirement in 2000.
On trial for racketeering conspiracy are reputed mob figures Joey "the Clown" Lombardo, James Marcello, Frank Calabrese Sr. and Paul "the Indian" Schiro as well as former Chicago police Officer Anthony "Twan" Doyle. The men are accused of playing roles in the criminal enterprise that is responsible for 18 previously unsolved Outfit killings.
Wagner said the Chicago mob expanded from its traditional bookmaking and juice-loan operations to infiltrate labor unions and then used labor's pension funds to make loans to mob associates who built the gleaming mecca of gambling that Las Vegas became.
Its members expect absolute loyalty from one another. There is an elaborate "making" ceremony to get into the upper echelon of the Outfit, Wagner said, but no retirement parties. "There are no provisions for getting out once you're in," he said.
Before trial, defense lawyers had objected to Wagner's testimony. U.S. District Judge James B. Zagel, who is presiding over the landmark trial, limited Wagner to talking about the Outfit in general terms without providing any details he might know about the defendants.
That changed, however, when Lombardo's lawyer, Rick Halprin, made the strategic decision to question Wagner about his knowledge of a case involving labor racketeer Allen Dorfman and an attempt to bribe the late U.S. Sen. Howard Cannon of Nevada.
Zagel then allowed prosecutors in a later round of questioning to ask who else had been convicted in the 1982 case. "It was Joseph Lombardo," Wagner said.
On Monday, jurors also saw a well-known photo of Lombardo with other reputed top mobsters at a restaurant in 1976, dubbed "the last supper" by lawyers in the case.
In his cross-examination of an Internal Revenue Service agent who recovered the photo in a search, Halprin made a point to note that Lombardo was the only participant wearing a suit. The lawyer has sought to portray his client as a non-violent businessman who is only associated with the mob, not a key member of the conspiracy.
But William "Red" Wemette gave jurors what the prosecution contends is a real-life taste of how Lombardo allegedly collected street tax.
Wemette told jurors that he knew the mob would come knocking when he went to open an adult bookstore called "The Peeping Tom" on Wells Street in the early 1970s. Wemette, who has been relocated by authorities because of his cooperation, exhaled deeply on the stand as he talked about doing business with Lombardo's reputed Grand Avenue street crew. The 58-year-old with thin, reddish hair and a thinner mustache wore a gray, three-piece suit.
Asked to define street tax for the jury, Wemette replied, "Basically it's permission to be in a business without being hurt by someone or possibly being burned down."
He described going to see a South Side mobster for permission to open his store and was instructed to meet up with Lombardo. "The instructions were, 'Go see Joey, he's a good boy,'" Wemette said. "'He'll take care of you.'"
Wemette said he eventually agreed to split the proceeds from peep shows in the shop with the mob because Lombardo was powerful and he didn't want to have an "accident."
Prosecutors showed Wemette a series of pictures of the men with whom he said he dealt, including an old mug shot of Lombardo in which the reputed mob boss appeared to be staring off into space. Lombardo, 78, stood up as Wemette was asked whether the man he was talking about was in court. "He looked a lot better then than he does now," Wemette said.
Testimony began Monday after the final two defense lawyers finished giving their opening statements. Attorney Paul Wagner told jurors that his client, Schiro, is a minor player in the case. Ralph Meczyk, the lawyer for Doyle, said his client is only a defendant because he's been a loyal friend to Calabrese.
Doyle was a good cop who came from the rough streets of the Bridgeport neighborhood, Meczyk said. He did not purposefully give Calabrese any damaging information on the Family Secrets case, as he is accused of doing, Meczyk said.
Doyle earned an honest living as an officer, the lawyer said, and before that pushed a street sweeper's cart for the city. Meczyk brought one of wooden carts into court, its metal wheels squeaking up the aisle. "He picked up maybe empty juice cartons," Meczyk said. "That's when he dealt in juice, ladies and gentlemen of the jury."
He told jurors that by the time the case was over, they would have an opinion about what the indictment in the case was worth and with that tossed a copy of the document into the cart with a thud.
Thanks to Jeff Coen
With violence and savvy during the 1920s, Capone succeeded in uniting Chicago's underworld, which before Prohibition had been a morass of competing ethnic and racial groups, testified James Wagner, the president of the Chicago Crime Commission.
The five defendants on trial—some of whom are accused of running the modern-day mob—listened impassively, staring ahead or leaning over to whisper to their attorneys.
Wagner, a former FBI supervisor who spent his career investigating mobsters, testified with the tone of a college professor.
Capone and his organization figured out how to earn "vast sums of money" by catering to public demand for vices such as prostitution and gambling and then used that wealth in part to corrupt politicians, the legal system and law enforcement, Wagner said. Unlike New York's disparate crime families, the Chicago Outfit has been united under a single boss since Capone, its six mob crews carrying out its work, Wagner said. "That group he was able to form took control," Wagner said of Capone.
The government will rely on Wagner's primer on how the mob works to show jurors how the defendants used gambling, juice loans, street tax and violence to grow a crime empire that stretched to Las Vegas.
Many jurors took notes with their blue pens, writing as fast as Wagner spoke.
After working cases against the Genovese and Gambino families in New York, Wagner continued his mob-busting efforts in Chicago beginning in 1976, eventually heading an organized-crime squad for five years before his retirement in 2000.
On trial for racketeering conspiracy are reputed mob figures Joey "the Clown" Lombardo, James Marcello, Frank Calabrese Sr. and Paul "the Indian" Schiro as well as former Chicago police Officer Anthony "Twan" Doyle. The men are accused of playing roles in the criminal enterprise that is responsible for 18 previously unsolved Outfit killings.
Wagner said the Chicago mob expanded from its traditional bookmaking and juice-loan operations to infiltrate labor unions and then used labor's pension funds to make loans to mob associates who built the gleaming mecca of gambling that Las Vegas became.
Its members expect absolute loyalty from one another. There is an elaborate "making" ceremony to get into the upper echelon of the Outfit, Wagner said, but no retirement parties. "There are no provisions for getting out once you're in," he said.
Before trial, defense lawyers had objected to Wagner's testimony. U.S. District Judge James B. Zagel, who is presiding over the landmark trial, limited Wagner to talking about the Outfit in general terms without providing any details he might know about the defendants.
That changed, however, when Lombardo's lawyer, Rick Halprin, made the strategic decision to question Wagner about his knowledge of a case involving labor racketeer Allen Dorfman and an attempt to bribe the late U.S. Sen. Howard Cannon of Nevada.
Zagel then allowed prosecutors in a later round of questioning to ask who else had been convicted in the 1982 case. "It was Joseph Lombardo," Wagner said.
On Monday, jurors also saw a well-known photo of Lombardo with other reputed top mobsters at a restaurant in 1976, dubbed "the last supper" by lawyers in the case.
In his cross-examination of an Internal Revenue Service agent who recovered the photo in a search, Halprin made a point to note that Lombardo was the only participant wearing a suit. The lawyer has sought to portray his client as a non-violent businessman who is only associated with the mob, not a key member of the conspiracy.
But William "Red" Wemette gave jurors what the prosecution contends is a real-life taste of how Lombardo allegedly collected street tax.
Wemette told jurors that he knew the mob would come knocking when he went to open an adult bookstore called "The Peeping Tom" on Wells Street in the early 1970s. Wemette, who has been relocated by authorities because of his cooperation, exhaled deeply on the stand as he talked about doing business with Lombardo's reputed Grand Avenue street crew. The 58-year-old with thin, reddish hair and a thinner mustache wore a gray, three-piece suit.
Asked to define street tax for the jury, Wemette replied, "Basically it's permission to be in a business without being hurt by someone or possibly being burned down."
He described going to see a South Side mobster for permission to open his store and was instructed to meet up with Lombardo. "The instructions were, 'Go see Joey, he's a good boy,'" Wemette said. "'He'll take care of you.'"
Wemette said he eventually agreed to split the proceeds from peep shows in the shop with the mob because Lombardo was powerful and he didn't want to have an "accident."
Prosecutors showed Wemette a series of pictures of the men with whom he said he dealt, including an old mug shot of Lombardo in which the reputed mob boss appeared to be staring off into space. Lombardo, 78, stood up as Wemette was asked whether the man he was talking about was in court. "He looked a lot better then than he does now," Wemette said.
Testimony began Monday after the final two defense lawyers finished giving their opening statements. Attorney Paul Wagner told jurors that his client, Schiro, is a minor player in the case. Ralph Meczyk, the lawyer for Doyle, said his client is only a defendant because he's been a loyal friend to Calabrese.
Doyle was a good cop who came from the rough streets of the Bridgeport neighborhood, Meczyk said. He did not purposefully give Calabrese any damaging information on the Family Secrets case, as he is accused of doing, Meczyk said.
Doyle earned an honest living as an officer, the lawyer said, and before that pushed a street sweeper's cart for the city. Meczyk brought one of wooden carts into court, its metal wheels squeaking up the aisle. "He picked up maybe empty juice cartons," Meczyk said. "That's when he dealt in juice, ladies and gentlemen of the jury."
He told jurors that by the time the case was over, they would have an opinion about what the indictment in the case was worth and with that tossed a copy of the document into the cart with a thud.
Thanks to Jeff Coen
Chicago Cop Only Friend to Mobster?
Friends of ours: John Fecarotta, Frank Calabrese Sr., Paul “The Indian” Schiro, Joseph "Joey the Clown" Lombardo, James Marcello, Nick Calabrese
Friends of mine: Michael Ricci, Anthony Doyle
The lawyer for retired police officer Anthony Doyle did his best Monday to explain away how his client wound up caught on tape telling alleged mob member Frank Calabrese behind-the-scenes details about an FBI investigation into a mob hit.
Prosecutors in the Chicago mob trial that began last week said it was because Doyle, of Arizona, is a mob associate who was feeding inside information in an attempt to help the mob scuttle the case against it for the hit on fellow mobster John Fecarotta Sept. 14, 1986. But Ralph Meczyk told jurors that Doyle knew Calabrese from growing up in Chicago’s Bridgeport neighborhood, that the two used to play handball together, and that Calabrese had gotten Doyle his first job at McCormick Place.
So when Calabrese, incarcerated in 1999 in Milan, Michigan, mentioned to someone that he’d like to see Doyle again, word was sent, Meczyk said. “Anthony (Doyle) is a little stunned, but pleased that his old friend remembers him,” said Meczyk.
Doyle drove to Michigan with Michael Ricci, of Streamwood, another retired Chicago cop, claimed Meczyk. Ricci since has passed away. Once the two arrived in Michigan, Calabrese asked Doyle, who worked in the evidence room of the Chicago Police department, to find out about the case, Meczyk said.
Doyle wasn’t pleased, claimed Meczyk, but passed along what he thought would be a useless bit of information - that the FBI had taken into its possession a blood-stained glove used during the hit.
“The issue is, really, what was (Doyle’s) intent? … One of the reasons he did it is it’s innocent, innocuous information,” claimed Meczyk.
And what about all that code talk Frank Calabrese used when talking to Doyle - code only a mobster would know?
“Anthony doesn’t know what’s going on, but he feigns that he does,” said Meczyk.
Federal investigators, said Meczyk, “want to turn friendship into a federal felony.”
Also Monday, attorney Paul Augustus Wagner gave his opening statements for defendant Paul “The Indian” Schiro, accused of helping to murder his friend Emil Vaci in Phoenix June 7, 1986. Paul Wagner said the only thing that ties Schiro to the murder is the unreliable word of the government’s star witness, confessed murderer Nick Calabrese, Frank Calabrese’s brother.
The attorney for Joey “The Clown” Lombardo, Rick Halprin, decided to withhold his opening statement until the prosecution rests.
Attorneys for Frank Calabrese of Oak Brook and James Marcello of Lombard gave their opening statements Thursday. All five defendants are charged with racketeering conspiracy in the commission of several crimes, including murder.
After Meczyk’s opening, prosecutors took testimony from James Wagner, a former FBI agent, about the structure and method of operation of the Chicago mob.
Thanks to Rob Olmstead
Friends of mine: Michael Ricci, Anthony Doyle
The lawyer for retired police officer Anthony Doyle did his best Monday to explain away how his client wound up caught on tape telling alleged mob member Frank Calabrese behind-the-scenes details about an FBI investigation into a mob hit.
Prosecutors in the Chicago mob trial that began last week said it was because Doyle, of Arizona, is a mob associate who was feeding inside information in an attempt to help the mob scuttle the case against it for the hit on fellow mobster John Fecarotta Sept. 14, 1986. But Ralph Meczyk told jurors that Doyle knew Calabrese from growing up in Chicago’s Bridgeport neighborhood, that the two used to play handball together, and that Calabrese had gotten Doyle his first job at McCormick Place.
So when Calabrese, incarcerated in 1999 in Milan, Michigan, mentioned to someone that he’d like to see Doyle again, word was sent, Meczyk said. “Anthony (Doyle) is a little stunned, but pleased that his old friend remembers him,” said Meczyk.
Doyle drove to Michigan with Michael Ricci, of Streamwood, another retired Chicago cop, claimed Meczyk. Ricci since has passed away. Once the two arrived in Michigan, Calabrese asked Doyle, who worked in the evidence room of the Chicago Police department, to find out about the case, Meczyk said.
Doyle wasn’t pleased, claimed Meczyk, but passed along what he thought would be a useless bit of information - that the FBI had taken into its possession a blood-stained glove used during the hit.
“The issue is, really, what was (Doyle’s) intent? … One of the reasons he did it is it’s innocent, innocuous information,” claimed Meczyk.
And what about all that code talk Frank Calabrese used when talking to Doyle - code only a mobster would know?
“Anthony doesn’t know what’s going on, but he feigns that he does,” said Meczyk.
Federal investigators, said Meczyk, “want to turn friendship into a federal felony.”
Also Monday, attorney Paul Augustus Wagner gave his opening statements for defendant Paul “The Indian” Schiro, accused of helping to murder his friend Emil Vaci in Phoenix June 7, 1986. Paul Wagner said the only thing that ties Schiro to the murder is the unreliable word of the government’s star witness, confessed murderer Nick Calabrese, Frank Calabrese’s brother.
The attorney for Joey “The Clown” Lombardo, Rick Halprin, decided to withhold his opening statement until the prosecution rests.
Attorneys for Frank Calabrese of Oak Brook and James Marcello of Lombard gave their opening statements Thursday. All five defendants are charged with racketeering conspiracy in the commission of several crimes, including murder.
After Meczyk’s opening, prosecutors took testimony from James Wagner, a former FBI agent, about the structure and method of operation of the Chicago mob.
Thanks to Rob Olmstead
Sunday, June 24, 2007
Mr. Capone: The Real - and Complete - Story of Al Capone
While doing some research for a reader
, I spoke with a friend of mine, Robert Schoenberg, who is the author of Mr. Capone: The Real - and Complete - Story of Al Capone. I know I have reviewed his book before, but with the Family Secrets Trial going on, this is another excellent book that gives you some historical background on the Chicago Outfit. In 1930 Al Capone was the most famous American alive. Mr. Capone reveals the real Capone and how he ran his operation. Schoenberg's scrupulous research shows that Capone was a man as calculating and brutal as his legend.
The NYTimes called it “fascinating,” the LATimes cited its “massive research” and “rich descriptions,” the Chicago Tribune said that readers will “revel in the old stories…and savor new tidbits,” The Washington Times said its “written with style and verve,” Chicago magazine called it “certainly the most thorough book on Capone yet published” and said that “Attention to detail, along with a sense of the period and a delightful writing style, makes Mr. Capone a treat for history, crime and Capone buffs.” The Detroit News simply called it “the definitive biography.”
, I spoke with a friend of mine, Robert Schoenberg, who is the author of Mr. Capone: The Real - and Complete - Story of Al Capone. I know I have reviewed his book before, but with the Family Secrets Trial going on, this is another excellent book that gives you some historical background on the Chicago Outfit. In 1930 Al Capone was the most famous American alive. Mr. Capone reveals the real Capone and how he ran his operation. Schoenberg's scrupulous research shows that Capone was a man as calculating and brutal as his legend.The NYTimes called it “fascinating,” the LATimes cited its “massive research” and “rich descriptions,” the Chicago Tribune said that readers will “revel in the old stories…and savor new tidbits,” The Washington Times said its “written with style and verve,” Chicago magazine called it “certainly the most thorough book on Capone yet published” and said that “Attention to detail, along with a sense of the period and a delightful writing style, makes Mr. Capone a treat for history, crime and Capone buffs.” The Detroit News simply called it “the definitive biography.”
Chicago Mobsters, Fraternity Pledges?
Forget about those nicknames.
So "the Clown," "the Indian," "the Breeze," "Twan" (also called "Captain Crunch") and "Little Jimmy" are now on trial at the Dirksen Federal Building. Sounds like a bunch of rascally fraternity pledges hauled into the dock for committing an overaggressive initiation prank, doesn't it?
Actually, of course, prosecutors allege that Joseph Lombardo, Paul Schiro, Frank Calabrese Sr., Anthony Doyle and James Marcello -- the real names of the above -- are ruthless killers who long presided over brutal, exploitative organized-crime activities. To me, the constant use in the media of these odd and usually unilluminating nicknames does little other than to add a little glamor, gloss and an appealingly clubby feel to the ugly business in which these men were allegedly engaged.
Media outlets that wouldn't even mention the names of Chicago street gangs for fear of giving those gangs an alluring renown think nothing of using organized-crime nicknames in a way that turns alleged mobsters into characters out of noir fiction. But they, like their alleged victims, are real people with real names. Let's use 'em.
Thanks to Eric Zorn
So "the Clown," "the Indian," "the Breeze," "Twan" (also called "Captain Crunch") and "Little Jimmy" are now on trial at the Dirksen Federal Building. Sounds like a bunch of rascally fraternity pledges hauled into the dock for committing an overaggressive initiation prank, doesn't it?
Actually, of course, prosecutors allege that Joseph Lombardo, Paul Schiro, Frank Calabrese Sr., Anthony Doyle and James Marcello -- the real names of the above -- are ruthless killers who long presided over brutal, exploitative organized-crime activities. To me, the constant use in the media of these odd and usually unilluminating nicknames does little other than to add a little glamor, gloss and an appealingly clubby feel to the ugly business in which these men were allegedly engaged.
Media outlets that wouldn't even mention the names of Chicago street gangs for fear of giving those gangs an alluring renown think nothing of using organized-crime nicknames in a way that turns alleged mobsters into characters out of noir fiction. But they, like their alleged victims, are real people with real names. Let's use 'em.
Thanks to Eric Zorn
The Last Mob Case in Chicago?
The FBI called the investigation "Operation Family Secrets,'' secrets that allegedly include at least 18 murders, pornography, bookmaking, loan-sharking, burglaries to order and more.
Members of the "Outfit,'' as the crime syndicate is known in Chicago, have been brought to trial before, but this is the first time the entire structure and enterprise have been dragged into court.
The trial, which began Tuesday before U.S. District Judge James B. Zagel, is expected to last four months. If a criminal trial is real-life drama, this one certainly has a cast of reluctant stars.
The leading players include James "Little Jimmy" Marcello, 65, considered the boss of the Outfit at the time of his arrest; Frank Calabrese Sr., 70, a member of the Mafia and once considered Chicago's top loan shark; Paul "the Indian'' Schiro, 69; and an Irish-American, former Chicago police officer Anthony Doyle 62. And don't forget Joseph "Joey the Clown'' Lombardo, 78, a wisecracker who kept the boys laughing even while he was busy killing someone.
Take Tony the Ant, for instance. That would be Anthony Spilotro. Tony liked to be known as "the Chicago mob's man in Las Vegas." Whether he was or not is open to question. But one thing is certain: Not everybody in the Outfit liked him.
Some years ago, he got the idea that it might be fun and profitable to skim the Las Vegas take that normally went to Anthony "Big Tuna'' Accardo, the fabled boss of bosses of the Outfit. Big Tuna didn't get the joke and put out a contract on the Ant. Accardo died of natural causes in 1992, one of the last of Al Capone's associates to pass on to the great sitdown in the sky. But before he died, Accardo saw the end of Tony the Ant.
In 1986, according to the feds, Joe Lombardo and Frank "the German'' Schweihs took Tony the Ant and his brother, Michael, for a ride. They stopped at a cornfield in northern Indiana, where the Clown and the German beat the two Spilotro brothers senseless with baseball bats. Then they buried them, still alive. The remains were found recently. The case was an inspiration for the plot to the 1995 Martin Scorsese film Casino, with Joe Pesci playing the Spilotro character.
The main witness for the prosecution is expected to be Nicholas Calabrese, the brother of the defendant, Frank Calabrese. He admitted taking part in 14 mob murders, and said he helped bury the Spilotro brothers alive. Frank Jr. also is expected to testify against his father.
Meanwhile, according to the Chicago Tribune, the federal courthouse in Chicago looks like a geriatric ward as the elderly bosses of the Outfit show up for trial. They come in on walkers or leaning on canes. Joey the Clown is in a wheelchair. But these were the young guns of the Roaring '20s and '30s, the capos of the 1940s and '50s.
The government even has a reputed expert witness they call a "mobologist.'' That would be James Wagner, current president of the Chicago Crime Commission and former chief of the Chicago FBI's organized crime section, according to the Tribune.
Joey the Clown appears to be enjoying all the fuss. And a former FBI agent who headed up the organized crime task force in Chicago said that this may very possibly be the last great mob case. "This will hurt the mob," Gus Russo, author of The Outfit and other books about organized crime, told The Associated Press. "But it won't end it."
"They always find a way to redefine themselves and bounce back."
Thanks to George McEvoy
Members of the "Outfit,'' as the crime syndicate is known in Chicago, have been brought to trial before, but this is the first time the entire structure and enterprise have been dragged into court.
The trial, which began Tuesday before U.S. District Judge James B. Zagel, is expected to last four months. If a criminal trial is real-life drama, this one certainly has a cast of reluctant stars.
The leading players include James "Little Jimmy" Marcello, 65, considered the boss of the Outfit at the time of his arrest; Frank Calabrese Sr., 70, a member of the Mafia and once considered Chicago's top loan shark; Paul "the Indian'' Schiro, 69; and an Irish-American, former Chicago police officer Anthony Doyle 62. And don't forget Joseph "Joey the Clown'' Lombardo, 78, a wisecracker who kept the boys laughing even while he was busy killing someone.
Take Tony the Ant, for instance. That would be Anthony Spilotro. Tony liked to be known as "the Chicago mob's man in Las Vegas." Whether he was or not is open to question. But one thing is certain: Not everybody in the Outfit liked him.
Some years ago, he got the idea that it might be fun and profitable to skim the Las Vegas take that normally went to Anthony "Big Tuna'' Accardo, the fabled boss of bosses of the Outfit. Big Tuna didn't get the joke and put out a contract on the Ant. Accardo died of natural causes in 1992, one of the last of Al Capone's associates to pass on to the great sitdown in the sky. But before he died, Accardo saw the end of Tony the Ant.
In 1986, according to the feds, Joe Lombardo and Frank "the German'' Schweihs took Tony the Ant and his brother, Michael, for a ride. They stopped at a cornfield in northern Indiana, where the Clown and the German beat the two Spilotro brothers senseless with baseball bats. Then they buried them, still alive. The remains were found recently. The case was an inspiration for the plot to the 1995 Martin Scorsese film Casino, with Joe Pesci playing the Spilotro character.
The main witness for the prosecution is expected to be Nicholas Calabrese, the brother of the defendant, Frank Calabrese. He admitted taking part in 14 mob murders, and said he helped bury the Spilotro brothers alive. Frank Jr. also is expected to testify against his father.
Meanwhile, according to the Chicago Tribune, the federal courthouse in Chicago looks like a geriatric ward as the elderly bosses of the Outfit show up for trial. They come in on walkers or leaning on canes. Joey the Clown is in a wheelchair. But these were the young guns of the Roaring '20s and '30s, the capos of the 1940s and '50s.
The government even has a reputed expert witness they call a "mobologist.'' That would be James Wagner, current president of the Chicago Crime Commission and former chief of the Chicago FBI's organized crime section, according to the Tribune.
Joey the Clown appears to be enjoying all the fuss. And a former FBI agent who headed up the organized crime task force in Chicago said that this may very possibly be the last great mob case. "This will hurt the mob," Gus Russo, author of The Outfit and other books about organized crime, told The Associated Press. "But it won't end it."
"They always find a way to redefine themselves and bounce back."
Thanks to George McEvoy
Mob Rat "Petey Cap", Wife Seized for Gaming
Friends of ours: Peter Caporino, Genovese Crime Family
Mob rat Peter Caporino is behind bars again on gambling charges stemming from a Hudson County ring and is being held without bail pending a hearing where prosecutors will ask a judge to undo the leniency he received for cooperating with the FBI, officials said yesterday.
Caporino, 70, of Hasbrouck Heights , was arrested Thursday night at his home and charged with leading an organized crime network, promoting gambling and possession of gambling records, Hudson County Assistant Prosecutor Thomas Carroll said yesterday.
His wife, Ann Caporino, 68, was also arrested and charged with possession of gambling records, Carroll said. Andy Rush, 70, of Liberty Avenue in North Bergen , was arrested at his home and charged with conspiracy to promote gambling, Carroll said.
The charges are in connection with an illegal lottery in Jersey City and Hoboken , said Carroll, who would not give details on the operation but said lottery records were found at the Caporino house.
In 2002, Caporino, known as "Petey Cap," pleaded guilty to money laundering involving illegal gambling proceeds and was sentenced to five years in prison, Hudson County Prosecutor Edward DeFazio said. That sentence was suspended because he agreed to wear a wire for the feds in an investigation into gambling, extortion and loansharking rackets in Hudson County . It led to the prosecution of 15 people reputedly associated with the Genovese crime family.
Caporino, who had been feeding information to the feds for years but had not previously worn a wire, was arrested again on Aug. 16 by Jersey City police in Hoboken and charged with promoting gambling and possession of gambling records.
Police said he had $6,500 in cash and records of at least $50,000 in gambling receipts when he was busted. After that arrest, DeFazio said his office would revisit that 2002 sentence, saying, "We have had a conversation with the federal authorities and they say Caporino is on his own."
At DeFazio's request, a judge has ordered Caporino held without bail at the Hudson County jail in Kearny pending a hearing next week, at which prosecutors will ask the judge to reverse the suspension of that five-year-sentence. If granted, that could put Caporino in jail for a long while, and the 70-year-old will then face up to 10 years if convicted on the most recent charges.
When arrested, Caporino was out on a $500,000 bail that was posted by his wife with $50,000 cash. An additional bail of $500,000 has been set since his arrest Thursday, but that is moot at this point. If he is allowed to bail himself out after next week's hearing, officials will not accept the money until after determining it has not come from nefarious activities.
Rush and Peter Caporino have long records of gambling related convictions and this isn't the first time Ann Caporino is been behind bars, either. She was arrested with her husband in 2002 but was not prosecuted as part of his deal with the feds.
Thanks to Michaelangelo Conte
Mob rat Peter Caporino is behind bars again on gambling charges stemming from a Hudson County ring and is being held without bail pending a hearing where prosecutors will ask a judge to undo the leniency he received for cooperating with the FBI, officials said yesterday.
Caporino, 70, of Hasbrouck Heights , was arrested Thursday night at his home and charged with leading an organized crime network, promoting gambling and possession of gambling records, Hudson County Assistant Prosecutor Thomas Carroll said yesterday.
His wife, Ann Caporino, 68, was also arrested and charged with possession of gambling records, Carroll said. Andy Rush, 70, of Liberty Avenue in North Bergen , was arrested at his home and charged with conspiracy to promote gambling, Carroll said.
The charges are in connection with an illegal lottery in Jersey City and Hoboken , said Carroll, who would not give details on the operation but said lottery records were found at the Caporino house.
In 2002, Caporino, known as "Petey Cap," pleaded guilty to money laundering involving illegal gambling proceeds and was sentenced to five years in prison, Hudson County Prosecutor Edward DeFazio said. That sentence was suspended because he agreed to wear a wire for the feds in an investigation into gambling, extortion and loansharking rackets in Hudson County . It led to the prosecution of 15 people reputedly associated with the Genovese crime family.
Caporino, who had been feeding information to the feds for years but had not previously worn a wire, was arrested again on Aug. 16 by Jersey City police in Hoboken and charged with promoting gambling and possession of gambling records.
Police said he had $6,500 in cash and records of at least $50,000 in gambling receipts when he was busted. After that arrest, DeFazio said his office would revisit that 2002 sentence, saying, "We have had a conversation with the federal authorities and they say Caporino is on his own."
At DeFazio's request, a judge has ordered Caporino held without bail at the Hudson County jail in Kearny pending a hearing next week, at which prosecutors will ask the judge to reverse the suspension of that five-year-sentence. If granted, that could put Caporino in jail for a long while, and the 70-year-old will then face up to 10 years if convicted on the most recent charges.
When arrested, Caporino was out on a $500,000 bail that was posted by his wife with $50,000 cash. An additional bail of $500,000 has been set since his arrest Thursday, but that is moot at this point. If he is allowed to bail himself out after next week's hearing, officials will not accept the money until after determining it has not come from nefarious activities.
Rush and Peter Caporino have long records of gambling related convictions and this isn't the first time Ann Caporino is been behind bars, either. She was arrested with her husband in 2002 but was not prosecuted as part of his deal with the feds.
Thanks to Michaelangelo Conte
Original Family Secrets Mob Trial Indictment
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES OF AMERICA )No. 02 CR 1050
)
v. )Violations: Title 18,
)United States Code,
NICHOLAS W. CALABRESE, )Sections 2, 371, 894,
JAMES MARCELLO, )1001(a)(2), 1510, 1951, 1955,
JOSEPH LOMBARDO, )and 1962(d)
also known as "The Clown," )
"Lumpy," and "Lumbo," )
FRANK CALABRESE, SR., )
FRANK SCHWEIHS, also known as )
"The German," )First Superseding Indictment
FRANK SALADINO, also known as )
"Gumba," )
PAUL SCHIRO, also known as )
"The Indian," )
MICHAEL MARCELLO, also known as )
"Mickey," )
NICHOLAS FERRIOLA, )
ANTHONY DOYLE, also known as )
"Twan," )
MICHAEL RICCI, )
THOMAS JOHNSON, )
JOSEPH VENEZIA, and )
DENNIS JOHNSON )
COUNT ONE
The SPECIAL AUGUST 2003-2 GRAND JURY charges:
I. THE ENTERPRISE
1. At times material to this indictment there existed a
criminal organization which is referred to hereafter as "the
Chicago Outfit." The Chicago Outfit was known to its members and
associates as "the Outfit" and was also known to the public as
"organized crime," the "Chicago Syndicate" and the "Chicago Mob."
The Chicago Outfit was an "enterprise" as that term is used in
Title 18, United States Code, Section 1961(4), that is, it
1
constituted a group of individuals associated in fact, which
enterprise was engaged in and the activities of which affected
interstate commerce. The enterprise constituted an ongoing
organization whose members functioned as a continuing unit for a
common purpose of achieving the objectives of the enterprise.
2. The Chicago Outfit existed to generate income for its
members and associates through illegal activities. The illegal
activities of the Chicago Outfit included, but were not limited to:
(1) collecting "street tax," that is, extortion payments required
as the cost of operating various businesses;(2) the operation of
illegal gambling businesses, which included sports bookmaking and
the use of video gambling machines; (3) making loans to individuals
at usurious rates of interest (hereafter referred to as "juice
loans"), which loans constituted "extortionate extensions of
credit," as that term is defined in Title 18, United States Code,
Section 891(6); (4) "collecting" through "extortionate means" juice
loans constituting "extensions of credit," as those terms are
defined in Title 18, United States Code, Sections 891(5), (7) and
(6), respectively; (5) collecting debts incurred in the Chicago
Outfit's illegal gambling businesses; (6) collecting debts incurred
in the Chicago Outfit's juice loan business, which debts carried
rates of interest at least twice the rate enforceable under
Illinois law; (7) using threats, violence and intimidation to
collect street tax and juice loan debts; (8) using threats,
violence, and intimidation to discipline Chicago Outfit members and
associates; (9) using murder of Chicago Outfit members, associates
2
and others to advance the interests of the Chicago Outfit's illegal
activities; (10) obstructing justice and criminal investigations by
intimidating, bribing, retaliating against, and murdering witnesses
and potential witnesses who could provide information adverse to
the enterprise's interests; and (11) traveling in interstate
commerce to further the goals of the criminal enterprise.
3. In order to carry out its criminal activities, the
Chicago Outfit maintained a structure and chain of command. The
criminal activities of the Chicago Outfit were carried out in part
by sub-groups, or "crews," which were generally given territories
in different geographic locations in the Chicago area. These crews
were known by their geographic areas, and included the Elmwood Park
crew, the North Side/Rush Street crew, the South Side/26th Street
or Chinatown crew, the Grand Avenue crew, the Melrose Park crew,
and the Chicago Heights crew. Each crew was run by a crew leader,
also known as a street boss or "capo," and these crew bosses
reported to an underboss, or "sotto capo," who was second in
command of the Chicago Outfit, and therefore referred to at times
as "Number Two." The overall leader of the Chicago Outfit was
referred to as the Boss or "Number One." The Chicago Outfit also
utilized a "consigliere," who provided advice to the Boss.
4. When an individual conducting illegal activities on behalf
of the Chicago Outfit proved himself particularly trustworthy and
was to be given special status in the enterprise, he was given
"made" status. An individual could not normally be "made" unless
he was of Italian descent, and had committed at least one murder on
3
behalf of the enterprise. An individual had to be sponsored by his
capo before he could be "made," which occurred at a ceremony in
which the person to be "made" swore allegiance to the enterprise.
This ceremony was attended by the individual's capo, as well as
other ranking members of the Chicago Outfit. Once "made," the
individual was accorded greater status and respect in the
enterprise. An individual who was "made" or who committed a murder
on behalf of the Outfit was obligated to the enterprise for life to
perform criminal acts on behalf of the enterprise when called upon.
5. Disputes between members of different crews were to be
resolved first by their respective capos, and, if no resolution
could be made between the capos, then the Boss would settle the
dispute.
6. During the course of the conspiracy, Anthony Accardo, also
known as "Big Tuna," and "Joe Batters," Joseph Aiuppa, also known
as "Doves," and "Joey O'Brien," Sam Carlisi, also known as "Wings,"
and John Monteleone, also known as "Johnny Apes," among others,
acted as Boss of the Chicago Outfit.
7. During the course of the conspiracy, Joseph Aiuppa, and
Jack Cerone, among others, acted as Sotto Capo, or Underboss, of
the Chicago Outfit.
8. During the course of the conspiracy, Joseph Ferriola was
a "made" member of the Chicago Outfit who reported directly to the
Boss. Harry Aleman, William Petrocelli, also known as "Butch,"
Jerry Scarpelli, and others, were criminal associates who reported
at various times to Joseph Ferriola.
4
9. Defendant JAMES MARCELLO was a member of the Melrose Park
crew, was a "made" member of the Chicago Outfit, and committed
murder and other criminal activities on its behalf. Defendant
JAMES MARCELLO continued to conduct criminal activities on the
Outfit's behalf while incarcerated through his brother, defendant
MICHAEL MARCELLO, and others.
10. Defendant JOSEPH LOMBARDO, also known as "the Clown,"
"Lumpy," and "Lumbo," was a member of the Grand Avenue crew, and
committed murder and other criminal activities on its behalf.
11. Defendant FRANK CALABRESE, SR., was a member of the South
Side/26th Street crew, was a "made" member of the Chicago Outfit,
and committed murder and other criminal activities on its behalf.
Defendant FRANK CALABRESE, SR., continued to conduct criminal
activities on the Outfit's behalf while incarcerated through
defendants FERRIOLA, DOYLE, RICCI, and others.
12. Other members of the South Side/26th Street crew were
James Torello, also known as "Turk," Angelo LaPietra, also known as
"the Hook," and "the Bull," and James LaPietra, all of whom served
as capos of this crew during the course of the conspiracy.
Additional members of this crew included John Monteleone, John
Fecarotta, Ronald Jarrett, James DiForti, Frank Furio, and Frank
Santucci.
13. Defendant NICHOLAS CALABRESE is the brother of defendant
FRANK CALABRESE, SR., was also a member of the South Side/26th
Street crew, was a "made" member of the Chicago Outfit, and
committed murder and other criminal activities on its behalf.
5
14. Defendant FRANK SCHWEIHS, also known as "the German," was
an enforcer for the Chicago Outfit, imposing and collecting "street
tax" for himself and Outfit members, and making additional
collections on behalf of the enterprise through the use of
extortionate means. Defendant SCHWEIHS also agreed to commit
murder on behalf of the Chicago Outfit.
15. Defendant FRANK SALADINO, also known as "Gumba," was a
member of the South Side/26th Street crew, and committed murder and
other criminal activities on behalf of the Chicago Outfit.
16. Defendant PAUL SCHIRO, also known as "the Indian," was a
criminal associate of defendant SCHWEIHS, "made" member Anthony
Spilotro, and Outfit associate Joseph Hansen, who committed murder
and other criminal activities on behalf of the Chicago Outfit.
17. Defendant MICHAEL MARCELLO, also known as "Mickey," is
the brother of defendant JAMES MARCELLO, and was a member of the
Melrose Park crew. Defendant MICHAEL MARCELLO assisted his
brother's participation in the activities of the enterprise while
defendant JAMES MARCELLO was in jail, by keeping his brother
informed of the enterprises's activities, delivering messages to
persons associated with the enterprise, and carrying out illegal
activities of the Chicago Outfit, including the operation of an
illegal video gambling business.
18. Defendant NICHOLAS FERRIOLA is the son of Joseph
Ferriola, and was a member of the South Side/26th Street crew who
assisted defendant FRANK CALABRESE, SR.'s participation in the
activities of the enterprise while defendant FRANK CALABRESE, SR.,
6
was in jail, by keeping defendant FRANK CALABRESE, SR., informed of
the enterprise's activities, delivering messages to persons
associated with the enterprise, collecting monies generated by
extortionate demands of defendant FRANK CALABRESE, SR., and
carrying out other illegal activities of the Chicago Outfit,
including the operation of an illegal sports bookmaking business.
19. Defendant ANTHONY DOYLE, also known as "Twan," is a
retired Chicago Police Department ("CPD") officer, who, at the time
he was employed as a CPD officer, assisted defendant FRANK
CALABRESE, SR.'s participation in the activities of the enterprise
while defendant FRANK CALABRESE, SR., was in jail, by keeping
defendant FRANK CALABRESE, SR. informed of a law enforcement
investigation into the murder of John Fecarotta, committed by
defendants FRANK CALABRESE, SR., NICHOLAS CALABRESE, and others.
Defendant DOYLE also agreed to pass messages from defendant FRANK
CALABRESE, SR., in jail to other members of the Chicago Outfit,
including messages designed to determine whether defendant NICHOLAS
CALABRESE or James DiForti, now deceased, was cooperating with law
enforcement about the activities of the enterprise.
20. Defendant MICHAEL RICCI is a retired CPD officer, who at
the time he was subsequently employed with the Cook County
Sheriff's Department, assisted defendant FRANK CALABRESE, SR.'s
participation in the activities of the enterprise while defendant
FRANK CALABRESE, SR., was in jail, by agreeing to pass messages
from defendant FRANK CALABRESE, SR., to other members of the
Chicago Outfit, including messages designed to determine whether
7
defendant NICHOLAS W. CALABRESE or James DiForti was cooperating
with law enforcement about the activities of the enterprise.
Defendant RICCI also agreed to assist defendant FRANK CALABRESE,
SR., in collecting monies generated by extortionate demands of
defendant FRANK CALABRESE, SR., and to provide materially false
information to special agents of the Federal Bureau of
Investigation.
II. THE RACKETEERING CONSPIRACY
21. From approximately the middle of the 1960s through the
date of the return of this indictment, the exact dates being
unknown to the Grand Jury, in the Northern District of Illinois,
Eastern Division, and elsewhere,
NICHOLAS W. CALABRESE,
JAMES MARCELLO,
JOSEPH LOMBARDO, also known as
"The Clown," "Lumpy," and "Lumbo,"
FRANK CALABRESE, SR.,
FRANK SCHWEIHS, also known as
"The German,"
FRANK SALADINO, also known as
"Gumba,"
PAUL SCHIRO, also known as
"The Indian,"
MICHAEL MARCELLO, also known as
"Mickey,"
NICHOLAS FERRIOLA,
ANTHONY DOYLE, also known as
"Twan," and
MICHAEL RICCI,
defendants herein, being persons employed by and associated with an
enterprise, that is, the Chicago Outfit, which enterprise engaged
in and the activities of which affected, interstate commerce, did
knowingly conspire and agree, with other persons known and unknown
to the Grand Jury, to conduct and to participate, directly and
8
indirectly, in the conduct of the affairs of the Chicago Outfit
through: (1) a "pattern of racketeering activity," as that term is
defined in Title 18, United States Code, Sections 1961(1) and
1961(5), and as further specified in paragraph 49 of this count,
and (2) the "collection of unlawful debt," as that term is defined
in Title 18, United States Code, Section 1961(6), and as further
specified in paragraph 50 of this count, both in violation of Title
18, United States Code, Section 1962(c).
22. It was part of the conspiracy that each defendant agreed
that a conspirator would commit at least two acts of racketeering
in the conduct of the affairs of the enterprise.
23. It was further part of the conspiracy that the
defendants, together with other persons known and unknown to the
Grand Jury, each agreed to conduct and to participate in the
conduct of the Chicago Outfit's affairs through the collection of
unlawful debt.
24. It was further part of the conspiracy that acts of murder
would be attempted and were committed to further the criminal
objectives of the Chicago Outfit and protect the enterprise from
law enforcement. Such murders and attempted murders included:
a. the murder of Michael Albergo, also known as "Hambone," in
or about August, 1970, in Chicago, Illinois;
b. the murder of Daniel Seifert, on or about September 27,
1974, in Bensenville, Illinois;
c. the murder of Paul Haggerty, on or about June 24, 1976, in
Chicago, Illinois;
d. the murder of Henry Cosentino, on or about March 15, 1977;
9
e. the murder of John Mendell, on or about January 16, 1978,
in Chicago, Illinois;
f. the murders of Donald Renno and Vincent Moretti, on or
about January 31, 1978, in Cicero, Illinois;
g. the murders of William and Charlotte Dauber, on or about
July 2, 1980, in Will County, Illinois;
h. the murder of William Petrocelli, on or about December 30,
1980, in Cicero, Illinois;
i. the murder of Michael Cagnoni, on or about June 24, 1981,
in DuPage County, Illinois;
j. the murder of Nicholas D'Andrea, on or about September 13,
1981, in Chicago Heights, Illinois;
k. the attempted murder of Individual A, on or about April 24,
1982, in Lake County, Illinois;
l. the murders of Richard D. Ortiz and Arthur Morawski, on or
about July 23, 1983, in Cicero, Illinois;
m. the murder of Emil Vaci, on or about June 7, 1986, in
Phoenix, Arizona;
n. the murders of Anthony and Michael Spilotro, on or about
June 14, 1986, in DuPage County, Illinois;
o. the murder of John Fecarotta, on or about September 14,
1986, in Chicago, Illinois.
25. It was further part of the conspiracy that at times
members of one crew would assist members of other crews in
homicides, by conducting surveillances of and luring intended
victims so that the victims would not be alerted that they were
targeted for murder.
26. It was further part of the conspiracy that cash payments
would be and were extorted from numerous individuals as "street
tax" to allow businesses run by those individuals to continue to
operate.
10
27. It was further part of the conspiracy that loans made at
usurious rates, or "juice loans," would be and were made to
numerous individuals. These loans carried interest rates generally
ranging from one percent (1%) to ten percent (10%) per week, which
translate into annual rates of 52% to 520%, respectively. In
making these juice loans, the conspirators agreed to rely and did
rely upon the borrower's understanding at the time the loan was
made that delay or failure to repay the loans could result in the
use of violence or other criminal means to cause harm to the
borrower. The conspirators also understood at the time each juice
loan was made that delay or failure to repay the loans could result
in the use of violence or other criminal means to cause harm to the
particular borrower.
28. It was further part of the conspiracy that "juice loan"
payments would be and were collected from numerous juice loan
debtors, who borrowed money from conspirators at the rates
described in the previous paragraph. The conspirators each
understood at the time they collected each juice loan payment that
delay or failure to repay the loan could result in the use of
violence or other criminal means to cause harm to the particular
debtor. The conspirators used violence, intimidation and threats
to collect these debts.
29. It was further part of the conspiracy that collections
would be made of debts incurred in connection with the juice loan
business described in this Count, which business charged rates of
interest at least twice the rate enforceable under Illinois law.
11
30. It was further part of the conspiracy that members and
associates of the Chicago Outfit would and did knowingly conduct,
finance, manage, supervise, direct, and own all or part of illegal
gambling businesses in violation of the laws of the State of
Illinois, including illegal sports bookmaking businesses, and
businesses which utilized video gambling machines for illegal
wagering.
31. It was further part of the conspiracy that members and
associates of the Chicago Outfit agreed to collect and did collect
debts incurred in connection with illegal gambling businesses
described in this Count.
32. It was further part of the conspiracy that members and
associates of the Chicago Outfit used violence, intimidation and
threats to: (1) instill discipline within the Chicago Outfit by
compelling adherence to the Chicago Outfit's edicts and
instructions; and (2) punish conduct by Chicago Outfit members,
associates and others, which the hierarchy of the Chicago Outfit
believed was adverse to the interests of the Chicago Outfit.
33. It was further part of the conspiracy that members and
associates of the Chicago Outfit would and did obstruct the due
administration of justice by: (1) intimidating, harming, and
killing witnesses and potential witnesses who could provide
information detrimental to the operations of the enterprise; (2)
providing false information to law enforcement officers; and (3)
paying money to individuals to keep them from cooperating with law
enforcement officials.
12
34. It was further part of the conspiracy that the
conspirators would and did use nominees, "fronts," and fictitious
names to hide the proceeds of criminal activities.
35. It was further part of the conspiracy that the
conspirators would and did use coded language in their discussions
and written materials, and utilized coded names for discussing
fellow conspirators and victims of their criminal activities.
36. It was further part of the conspiracy that the
conspirators would and did collect information from corrupt law
enforcement sources to determine and disrupt legitimate law
enforcement investigation into the activities of the enterprise.
37. It was further part of the conspiracy that the
conspirators would and did steal, store, and utilize "work cars"
for use in their criminal activities, including surveillance of
murder victims and committing murders.
38. It was further part of the conspiracy that the
conspirators would and did use walkie-talkies and citizen band
radios to communicate amongst themselves while conducting criminal
activities, including murder.
39. It was further part of the conspiracy that the
conspirators would and did monitor law enforcement radio
frequencies, and acquire radio equipment, monitors, and crystals to
do so, in order to detect and avoid law enforcement inquiry into
their activities, including murder.
40. It was further part of the conspiracy that the
conspirators would and did conduct surveillance to detect the
13
presence of law enforcement while they and coconspirators were
committing illegal activities, including murder.
41. It was further part of the conspiracy that the
conspirators would and did acquire explosives, explosive devices,
detonators, transmitters, and remote control devices with the
intent to murder individuals without needing to be in the immediate
vicinity of the intended victim.
42. It was further part of the conspiracy that the
conspirators would and did acquire and store firearms to be used to
commit murder.
43. It was further part of the conspiracy that the
conspirators would and did use pagers and pay phones in an effort
to reduce law enforcement's ability to intercept their
communications.
44. It was further part of the conspiracy that the
conspirators would and did maintain hidden interests in businesses,
from which they could receive income not traceable to them.
45. It was further part of the conspiracy that the
conspirators would and did maintain hidden control of labor
organizations and assets.
46. It was further part of the conspiracy that the
conspirators would and did utilize the threat of labor union
violence or disruptions to induce payments to the enterprise to
keep "union peace."
14
47. It was further part of the conspiracy that the
conspirators would and did maintain written records and ledgers for
their loansharking and bookmaking activities.
48. It was further part of the conspiracy that members and
associates of the Chicago Outfit misrepresented, concealed and hid,
caused to be misrepresented, concealed and hidden, and attempted to
misrepresent, conceal and hide the operation of the Chicago Outfit
and acts done in furtherance of the enterprise.
III. PATTERN OF RACKETEERING ACTIVITY
(First Alternative Ground of Liability)
49. The pattern of racketeering activity through which the
defendants agreed to conduct and to participate in the conduct of
the Chicago Outfit's affairs, consisted of multiple violations of
the following federal and state laws:
(a) Acts and threats involving murder chargeable under
the law of the States of Illinois, Arizona, and Nevada, which are
punishable by imprisonment for more than one year; that is, first
degree murder (Illinois: Illinois Revised Statutes, Chapter 38, §9
1; Arizona: Arizona Revised Statutes §13-1105), conspiracy to
commit murder (Illinois: Illinois Revised Statutes, Chapter 38, §8
2; Arizona: Arizona Revised Statutes §13-1003; Nevada: Nevada
Revised Statutes §199.480), and attempted murder (Illinois:
Illinois Revised Statutes, Chapter 38, §8-4);
(b) Making and conspiring to make extortionate extensions
of credit, indictable under Title 18, United States Code, Section
892;
15
(c) Collecting and conspiring to collect extensions of
credit by extortionate means, indictable under Title 18, United
States Code, Section 894;
(d) Interference with commerce by threats and violence,
and conspiring to commit this offense, indictable under Title 18,
United States Code, Section 1951;
(e) Acts and threats involving extortion in violation of
state law, which are punishable by imprisonment for more than one
year; that is, intimidation, in violation of Chapter 38, Illinois
Revised Statutes, §12-6 (which later became 720 ILCS 5/12-6 of the
Illinois Compiled Statutes) and conspiracy to commit intimidation,
in violation of Chapter 38, Illinois Revised Statutes, §8-2 (which
later became 720 ILCS 5/8-2 of the Illinois Compiled Statutes);
(f) Operating an illegal gambling business indictable
under Title 18, United States Code, Section 1955;
(g) Obstructing the due administration of justice,
indictable under Title 18, United States Code, Section 1503;
(h) Obstruction of criminal investigations, indictable
under Title 18, United States Code, Section 1510;
(i) Witness tampering, indictable under Title 18, United
States Code, Section 1512;
(j) Retaliating against a witness, indictable under Title
18, United States Code, Section 1513;
(k) Interstate travel in aid of racketeering enterprises,
indictable under Title 18, United States Code, Section 1952.
16
IV. COLLECTION OF UNLAWFUL DEBT
(Second Alternative Ground of Liability)
50. The collection of unlawful debt through which the
defendants agreed to conduct and to participate in the affairs of
the enterprise, consisted of multiple acts of collecting and
attempting to collect debt incurred in connection with the Chicago
Outfit's operation of illegal gambling businesses and its lending
money at usurious rates, which loans were unenforceable under
Illinois laws relating to usury, such gambling and loan debts
constituting unlawful debt as defined in Title 18, United States
Code, Sections 1961(6)(A) and (B).
All of the above in violation of Title 18, United States Code,
Section 1962(d).
17
COUNT TWO
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From in or before 1996 and continuing through the date of this
indictment, in the Northern District of Illinois, Eastern Division,
and elsewhere,
JAMES MARCELLO,
MICHAEL MARCELLO, also known as
"Mickey,"
THOMAS JOHNSON,
JOSEPH VENEZIA, and
DENNIS JOHNSON,
defendants herein, together with other persons known and unknown to
the Grand Jury, knowingly conducted all or part of an illegal
gambling business, that is, a business involving the use of video
gambling machines and devices in the western Chicago suburbs and
surrounding areas, which business was in substantially continuous
operation for a period in excess of thirty (30) days, which
involved five or more persons who conducted, financed, managed,
supervised, directed, and owned all or part of the business, and
which was a violation of the following laws of the State of
Illinois: Illinois Revised Statutes, Chapter 38, Sections 8-2, 28
1(a)(1), (3), and (5) and 28-3, which later became 720 ILCS 5/8-2,
5/28-1(1), (3), and (5), and 5/28-3;
In violation of Title 18, United States Code, Sections 1955
and 2.
18
COUNT THREE
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From in or about 1998 and continuing until at least January
2003, in the Northern District of Illinois and elsewhere,
JAMES J. MARCELLO, and
MICHAEL A. MARCELLO, also known as
"Mickey,"
defendants herein, did willfully endeavor by means of bribery to
obstruct, delay, and prevent the communication of information
relating to violations of criminal statutes of the United States by
a person to a criminal investigator; that is, the defendants paid
and caused to be paid a monthly sum of money to and on behalf of
Nicholas W. Calabrese in order to maintain his allegiance to the
Chicago Outfit and to prevent and discourage his cooperation with
law enforcement authorities;
In violation of Title 18, United States Code, Sections 1510
and 2.
19
COUNT FOUR
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in the early 1980s and continuing until
approximately November 2002, in the Northern District of Illinois
and elsewhere,
FRANK CALABRESE, SR., and
NICHOLAS FERRIOLA,
defendants herein, knowingly committed extortion, as that term is
used in Title 18, United States Code, Section 1951(b)(2), which
extortion affected interstate commerce as that term is used in
Title 18, United States Code, Section 1951(b)(3), in that the
defendants would and did obtain money as "street tax" from a
restaurant operating in Chicago, with the consent of a
representative of the restaurant, induced by the wrongful use of
actual and threatened force, violence, and fear;
In violation of Title 18, United States Code, Sections 1951
and 2.
20
COUNT FIVE
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in 1992 and continuing until at least sometime
in 2001, in the Northern District of Illinois and elsewhere,
FRANK CALABRESE, SR., and
NICHOLAS FERRIOLA,
defendants herein, together with other persons known and unknown to
the Grand Jury, knowingly conducted all or part of an illegal
gambling business, that is, a sports bookmaking business, which
business was in substantially continuous operation for a period in
excess of thirty (30) days, which involved five or more persons who
conducted, financed, managed, supervised, directed, and owned all
or part of the business, and which was a violation of the following
laws of the State of Illinois: Illinois Revised Statutes, Chapter
38, Sections 8-2, 28-1(a)(1), (3), and (5) and 28-3, which later
became 720 ILCS 5/8-2, 5/28-1(1), (3), and (5), and 5/28-3;
In violation of Title 18, United States Code, Sections 1955
and 2.
21
COUNT SIX
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in the summer of 2001 and continuing until
approximately November 2001, in the Northern District of Illinois
and elsewhere,
FRANK SCHWEIHS, also known as
"the German,"
defendant herein, knowingly did attempt to commit extortion, as
that term is used in Title 18, United States Code, Section
1951(b)(2), which extortion would have affected interstate commerce
as that term is used in Title 18, United States Code, Section
1951(b)(3), in that the defendant would and did attempt to obtain
money as "street tax" from an adult entertainment club operating in
a suburb of Chicago, with the consent of a representative of the
club, induced by the wrongful use of actual and threatened force,
violence, and fear;
In violation of Title 18, United States Code, Sections 1951
and 2.
22
COUNT SEVEN
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in October of 2001 and continuing through
November 2001, in the Northern District of Illinois and elsewhere,
FRANK SCHWEIHS, also known as
"the German,"
defendant herein, knowingly participated in the use of extortionate
means within the meaning of Title 18, United States Code, Section
891(7), to collect and attempt to collect from the former owners of
an adult entertainment store operating in Indiana, an extension of
credit, within the meaning of Title 18, United States Code, Section
891(1); that is, the defendant did expressly and implicitly
threaten the use of violence to cause harm to the former owners of
the store in an attempt to obtain a sum of money from them by
November 1, 2001;
In violation of Title 18, United States Code, Sections 894 and
2.
23
COUNT EIGHT
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
On or about February 21, 2003, in the Northern District of
Illinois,
MICHAEL RICCI,
defendant herein, did knowingly and willfully make materially false
and fraudulent statements in a matter within the jurisdiction of
the Federal Bureau of Investigation (FBI), an agency within the
executive branch of the Government of the United States, in that
the defendant, in response to questions posed to him by special
agents of the FBI, stated: 1) that he, Anthony Doyle, and Frank
Calabrese, Sr., never discussed the FBI's taking possession of
evidence regarding the murder of John Fecarotta; 2) that Frank
Calabrese, Sr., never mentioned to him any concern as to whether
Nicholas Calabrese was cooperating with law enforcement regarding
the murder of John Fecarotta; 3) that Frank Calabrese, Sr., never
asked him to pass any messages to anyone about the Fecarotta
homicide; 4) that Frank Calabrese, Sr., never asked him to pass
messages to anyone concerning gambling, street tax, or any other
type of criminal activity; 5) that he did not pass any messages to
or from Frank Calabrese, Sr., to or from anyone; 6) that before his
previous interview by special agents of the FBI on or about May 4,
1999, he had never heard of James DiForti; and 7) that he had never
discussed James DiForti with Frank Calabrese, Sr. In violation of
Title 18, United States Code, Section 1001(a)(2).
24
COUNT NINE
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
1. At times material herein, defendant MICHAEL MARCELLO
operated a business that involved the placement, maintenance and
use of video gambling machines and devices. This business was
known as M & M Amusement, Inc. (also known to some of its customers
as Buff Amusement, Inc.), with MICHAEL MARCELLO as the sole
shareholder and officer. MICHAEL MARCELLO employed defendants
JOSEPH VENEZIA and THOMAS JOHNSON, among others, to help him
oversee the operation and maintenance of and the collection of
proceeds from the video gambling machines and devices. JAMES
MARCELLO assisted his brother MICHAEL MARCELLO by directing him and
advising him on the operation of the business.
2. Beginning in or about January 1996 and continuing
thereafter through at least April 2004, in the Northern District of
Illinois, Eastern Division,
JAMES MARCELLO,
MICHAEL MARCELLO, also known as
"Mickey,"
JOSEPH VENEZIA and
THOMAS JOHNSON,
defendants herein, did willfully and knowingly conspire and agree
together and with others known and unknown to the grand jury, to
defraud the United States by impeding, impairing, obstructing and
defeating the lawful government functions of the Department of
Treasury, in particular, the Internal Revenue Service (hereafter
referred to as "IRS"), in the ascertainment, computation,
assessment, and collection of the revenue: to wit, income taxes.
25
MANNER AND MEANS
3. It was part of the conspiracy that defendant MICHAEL
MARCELLO caused video gambling machines and devices to be obtained
for M & M Amusement, Inc., from other companies.
4. It was further a part of the conspiracy that defendants
and others then placed and caused the placement of these video
gambling machines and devices at various locations, such as
taverns, restaurants, and fraternal clubs, primarily in Cicero and
Berwyn, Illinois, and that co-conspirator owners, managers, and
representatives of the taverns, restaurants, and fraternal clubs
accepted placement of these gambling machines and devices in return
for a portion of the profits from the machines and devices.
A. To activate these video gambling machines and
devices, players at the taverns, restaurants, and fraternal clubs
had to insert currency into the money receptacles of the video
gambling machines and devices to put credits on the machines and
devices.
B. Players earned credits based upon the success of
their resultant play. Pay-outs to winning players were based on
the total of credits accumulated. These video gambling machines
and devices could be adjusted by the defendants either to raise or
lower the amount of credits earned by players.
C. These machines and devices used electronic systems
that guaranteed that the operator retained a portion (percentage)
of the wagers as profits. From a player's standpoint, the
operation of the machine and device was essentially random. As
26
such, players had no real control over what combination of symbols
would appear, and no element of skill was involved in the game.
D. The machines and devices electronically accumulated
"credits," and players were paid based upon the number of
accumulated credits. After a winning player had been paid by a
representative of the taverns, restaurants, and fraternal clubs,
the video gambling machines and devices had a "knock off" device
(normally a button or combination of buttons) that could be pushed
to clear the accumulated credits. Also, the video gambling
machines and devices had separate electronic counters inside the
machines and devices that recorded both the total number of plays
on the machine, and the total of winning credits won on and cleared
off the machines and devices.
5. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON, and others, instructed the
owners, managers, and representatives of the taverns, restaurants,
and fraternal clubs at which the video gambling machines and
devices were placed, on such topics as how to set up the machines
and devices; how properly to pay off the winners on the machines
and devices; how to "clear" or "knock off" the accumulated credits
from the machines and devices after the player had been paid off;
and other topics necessary to the conduct of the illegal gambling
business.
6. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON and others entered into verbal
understandings with the owners, managers, and representatives of
27
the taverns, restaurants, and fraternal clubs, regarding the
operation of the video gambling machines and devices. These verbal
understandings included, but were not limited to, agreements
regarding reimbursement for pay-outs to the players for their
earned credits and the distribution and splitting of the proceeds
from the video gambling machines and devices.
7. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON and others
would and did conduct their business, primarily in cash, with the
persons to whom they distributed the video gambling machines and
devices, that is, the co-conspirator owners, managers, and
representatives of the taverns, restaurants, and fraternal clubs.
8. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON and others would and did warn the
owners, managers, and representatives of the taverns, restaurants,
and fraternal clubs to be careful to whom they paid out money on
the video gambling machines and devices because of possible law
enforcement investigations. In particular, they warned the owners,
managers, and representatives only to pay money to winning
customers whom they knew well, and to beware of law enforcement
efforts. Those customers who were not known were to be told that
the video gambling machines were for amusement only.
9. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON and others would and did visit
the taverns, restaurants and fraternal clubs, in which the video
gambling machines and devices were placed, on a fairly regular
28
basis, normally at least weekly but at times on a more frequent
basis, to collect the cash proceeds from the machines.
10. It was further a part of the conspiracy that during these
visits, defendants JOSEPH VENEZIA and THOMAS JOHNSON and others
would determine the amount of money played since the last visit on
the machines (known as the "ins"), and the amount of money paid to
winning customers on the machines (known as the "outs").
Defendants JOSEPH VENEZIA and THOMAS JOHNSON and others would open
the machines and devices and read the electronic counters inside
the machines that recorded both the total number of plays on the
machines and the total number of winning credits won, and clear off
the machines since the last collection in order to determine to
date the amount of revenue on the machines. Defendants JOSEPH
VENEZIA and THOMAS JOHNSON and others would then confer with the
representative of each location and review the accounting. If
JOSEPH VENEZIA and THOMAS JOHNSON and others visited the location
on more than one occasion per week, two written copies of the
accounting since the last visit were written on small white sheets
of paper, one of which was provided to and retained by the
representative of the location and the other of which was retained
by JOSEPH VENEZIA and THOMAS JOHNSON and others, often in a small,
locked box at the location to which only JOSEPH VENEZIA and THOMAS
JOHNSON and others employed by M & M Amusement, Inc., had access.
The owners, managers, and representatives of the taverns,
restaurants, and fraternal clubs were credited for the amount of
money paid to winning customers (the "outs"). Later, on the
29
weekly settlement date, the small white sheets of paper were then
typically destroyed by JOSEPH VENEZIA and THOMAS JOHNSON and
others employed by M & M Amusement, Inc, as well as by the
representatives of the taverns, restaurants, and fraternal clubs,
often by burning them on the premises or by other means of
destruction.
11. It was part of the conspiracy that on an agreed upon
recurring settlement day of the week, defendants JOSEPH VENEZIA and
THOMAS JOHNSON, and others, under the direction of MICHAEL
MARCELLO, issued weekly M & M Amusement, Inc. collection reports,
yellow in color, to the owners, managers, and representatives of
taverns, restaurants, and fraternal clubs when they collected M &
M Amusement, Inc.'s share of the weekly receipts of the video
gambling machines and devices placed in such taverns, restaurants
and fraternal clubs. The information recorded on the collection
reports purported to represent the following: the name of the
establishment, its address, the date of collection, the total gross
receipts from the machines for that week, which was listed on the
receipts as the "Net Amount to Divide," and the fifty percent share
of the gross receipts for the establishment, which was listed on
the collection reports as the "Merchant's Share" and the fifty
percent share of the gross receipts for M & M Amusement, Inc.,
which was listed on the collection reports as the "Balance Due
Operator."
12. It was further part of the conspiracy that the collection
reports issued weekly by defendants JOSEPH VENEZIA and THOMAS
30
JOHNSON, and others, under the direction of MICHAEL MARCELLO, were
false, in that the collection reports substantially understated the
entire gross receipts generated by the video gambling machines, and
substantially understated the amounts of money reflecting the
taverns,' restaurants' and fraternal clubs' share of the gross
receipts as well as M & M Amusement, Inc.'s share of the gross
receipts.
13. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON, and others,
kept and maintained, and caused to be kept and maintained for the
records of M & M Amusement, Inc., copies of the false collection
reports provided to the taverns, restaurants and fraternal clubs.
14. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON, and others,
created, kept and maintained, and caused to be created, kept and
maintained handwritten summary sheets of the weekly collection
reports of M & M Amusement, Inc., reflecting the amounts on the
false collection reports provided to the taverns, restaurants and
fraternal clubs, which summary sheets thus substantially
understated the amounts of money reflecting the taverns,'
restaurants' and fraternal clubs' share of the gross receipts as
well as M & M Amusement, Inc.'s share of the gross receipts.
15. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON, and others,
failed to keep permanent records of the actual gross revenues
earned as the result of the gambling operation.
31
16. It was further a part of the conspiracy that defendant
MICHAEL MARCELLO delivered to his accountant and tax preparer
handwritten summary sheets of the weekly collection reports, which
reflected the false and inaccurate income information. Defendant
MICHAEL MARCELLO knew that the amounts listed on these handwritten
summary sheets ensured that an incorrect accounting of the gross
receipts and profits collected from the video gambling machines and
amusement machines would be reported to his accountant, and that
his accountant would rely on these false summary sheets to prepare
quarterly financial reports and tax returns.
17. It was further a part of the conspiracy that defendant
MICHAEL MARCELLO verbally advised this accountant each quarter that
he was providing the accountant the entirety of the gross revenues
for that quarter when in fact the figures he was providing the
accountant did not reflect the moneys paid to bettors nor did the
figures reflect the true amount of the profits to M & M Amusement,
Inc., and to the taverns, restaurants and fraternal clubs,
collected from the video gambling machines.
18. It was further part of the conspiracy that defendants
thus caused the preparation of false S Corporation income tax
returns (IRS Forms 1120S) for M & M Amusement, Inc. for the years
1996 through 2003, by creating and providing the false documents as
described above which were used by M & M Amusement, Inc.'s
accountant in the preparation of the S Corporation income tax
returns.
32
19. It was further part of the conspiracy that defendant
MICHAEL MARCELLO then signed and caused to be filed these false S
Corporation income tax returns with the Internal Revenue Service,
knowing that these S Corporation income tax returns had been
prepared using false information and that they therefore
understated M & M Amusement, Inc.'s gross receipts and profits.
20. It was further part of the conspiracy that defendant
MICHAEL MARCELLO thus caused the preparation of false individual
income tax returns (IRS Forms 1040) for himself for the years 1996
through 2003, by creating and providing the false documents as
described above which were used by his accountant in the
preparation of the individual income tax returns as well as the S
Corporation income tax returns.
21. It was further part of the conspiracy that defendant
MICHAEL MARCELLO then signed and caused to be filed these false
individual income tax returns with the Internal Revenue Service,
knowing that these individual income tax returns had been prepared
using false information and that they therefore understated his
total income.
22. It was further part of the conspiracy that defendants
caused the preparation and delivery of numerous false IRS Forms
1099 to the owners of the taverns, restaurants and fraternal
clubs, as the figures reported on the IRS Forms 1099 did not
reflect the true amount of the profits to the taverns, restaurants
and fraternal clubs, collected from the video gambling machines.
The owners of the taverns, restaurants and fraternal clubs then
33
knowingly provided these false IRS Forms 1099 to their accountants
and thereafter caused false individual and corporate income tax
returns to be filed with the Internal Revenue Service.
23. It was further part of the conspiracy that defendants
caused to conceal from the Internal Revenue Service a substantial
portion of the income received from the operation of the gambling
operation for the tax years 1996 through 2003, inclusive.
24. It was further part of the conspiracy that defendants
JAMES MARCELLO and MICHAEL MARCELLO caused money generated from the
under-reporting of gross receipts from operation of the gambling
business to be used for their own benefit.
25. It was further part of the conspiracy that defendants
JAMES MARCELLO and MICHAEL MARCELLO would discuss at the Federal
Correctional Center at Milan, Michigan, the operation of M & M
Amusement, Inc., as it related to the relationship with the owners,
managers, and representatives of taverns, restaurants, and
fraternal clubs. This included discussions involving the then
current Internal Revenue Service's criminal investigation of the
operation of video gambling machines and devices in taverns,
restaurants, and fraternal clubs in the Cicero and Berwyn, Illinois
area.
26. It was further a part of the conspiracy that defendant
MICHAEL MARCELLO failed to deposit all the weekly business receipts
to M & M Amusement, Inc.'s bank account, knowing that its tax
accountant determined income based upon the bank deposit method.
34
27. It was further part of the conspiracy that the defendants
would and did misrepresent, conceal and hide, and cause to be
misrepresented, concealed and hidden the purposes of, and acts done
in furtherance of, the conspiracy.
OVERT ACTS
28. In furtherance of the conspiracy and to effect the
objects thereof, in the Northern District of Illinois and
elsewhere, the following overt acts, among others, were committed
by the named defendants and others:
A. On or about the following dates, defendant MICHAEL
MARCELLO signed and caused to be filed false individual and S
Corporation income tax returns, with the Internal Revenue Service,
knowing that these income tax returns had been prepared using false
information regarding the gross receipts and profits for his
business, M & M Amusement, Inc.:
(1) On or about July 23, 1997, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1996 S
Corporation income tax return.
(2) On or about April 23, 1998, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1997 S
Corporation income tax return.
(3) On or about July 16, 1999, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1998 S
Corporation income tax return.
35
(4) On or about October 15, 1999, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1998
individual income tax return.
(5) On or about September 15, 2000, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
1999 S Corporation income tax return.
(6) On or about, September 15, 2000, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
1999 individual income tax return.
(7) On or about July 11, 2001, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2000 S
Corporation income tax return.
(8) On or about July 11, 2001, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2000
individual income tax return.
(9) On or about July 30, 2002, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2001 S
Corporation income tax return.
(10) On or about September 10, 2002, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
2001 individual income tax return.
(11) On or about March 27, 2003, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2002 S
Corporation income tax return.
36
(12) On or about April 25, 2003, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2002
individual income tax return.
(13) On or about February 27, 2004, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
2003 S Corporation income tax return.
(14) On or about April 14, 2004, defendant MICHAEL
MARCELLO knowingly caused to be electronically filed a false 2003
individual income tax return.
B. On or about the following dates, defendants MICHAEL
MARCELLO and JAMES MARCELLO had conversations at the Federal
Correctional Center at Milan, Michigan:
(1) December 20, 2002.
(2) January 9, 2003.
(3) January 30, 2003.
(4) April 24, 2003.
(5) May 15, 2003.
C. On a weekly basis from January 1996 through November
2003, defendants JOSEPH VENEZIA and THOMAS JOHNSON, and at times
others, delivered numerous false collection reports purporting to
represent the proceeds from the video gambling machines and devices
to representatives of numerous taverns, restaurants, and fraternal
clubs in the Berwyn and Cicero area of Illinois, each such delivery
constituting a separate overt act.
D. On a weekly basis from January 1996 through
November 2003, defendant MICHAEL MARCELLO deposited cash into M &
37
M Amusement, Inc.'s bank account, knowing that such cash was not
all of the weekly business receipts of M & M Amusement, Inc., and
that M & M Amusement, Inc.'s tax accountant determined income based
upon the bank deposit method, each such deposit constituting a
separate overt act.
All in violation of Title 18, United States Code, Section
371.
38
FORFEITURE ALLEGATION
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
1. The allegations contained in Count One of the indictment
are realleged and incorporated by reference for the purposes of
alleging forfeiture pursuant to Title 18, United States Code,
Section 1963.
2. As a result of the violation of Title 18, United States
Code, Section 1962(d), as alleged in the foregoing indictment
NICHOLAS W. CALABRESE,
JAMES MARCELLO,
JOSEPH LOMBARDO, also known as
"The Clown," "Lumpy," and "Lumbo,"
FRANK CALABRESE, SR.,
FRANK SCHWEIHS, also known as
"The German,"
FRANK SALADINO, also known as
"Gumba,"
PAUL SCHIRO, also known as
"The Indian,"
MICHAEL MARCELLO, also known as
"Mickey,"
NICHOLAS FERRIOLA,
ANTHONY DOYLE, also known as
"Twan," and
MICHAEL RICCI,
defendants herein:
(a) have acquired and maintained interests in violation of
Title 18, United States Code, Section 1962, which interests are
subject to forfeiture to the United States pursuant to Title 18,
United States Code, Section 1963(a)(1);
(b) have interests in, securities of, claims against, and
property and contractual rights affording sources of influence over
the enterprise described in Count One which defendants established,
operated, controlled, conducted, and participated in the conduct
39
of, and conspired to do so, in violation of Title 18, United States
Code, Section 1962, thereby making all such interests, securities,
claims, and property and contractual rights subject to forfeiture
to the United States of America pursuant to Title 18, United States
Code, Section 1963(a)(2);
(c) have property constituting and derived from proceeds which
obtained, directly and indirectly, from racketeering activity in
violation of Title 18, United States Code, Section 1963 (a)(3).
3. The interests of the defendants, jointly and severally
subject to forfeiture to the United States pursuant to Title 18,
United States Code, Section 1963(a)(1), (a)(2), and (a)(3) include
but are not limited to:
(a) $10,000,000;
(b) As to defendants JAMES MARCELLO and MICHAEL
MARCELLO only:
Real property at 5533 West 25th Street, Cicero,
Illinois, being more particularly described as:
Lot 78 in E. A. Cummings and Company's 25th Street
and Central Avenue Addition, being a subdivision of
the Southwest 1/4 of the Southwest 1/4 of the
Northwest 1/4 of Section 28, Township 39 North,
Range 13, East of the Third Principal Meridian, in
Cook County, Illinois.
4. To the extent that the proceeds and property described
above as being subject to forfeiture pursuant to Title 18, United
States Code, Section 1963, as a result of any acts or omission by
any defendant:
(1) cannot be located upon the exercise of due
diligence;
40
______________________________
_________________________________
(2) have been transferred or sold to, or deposited
with, a third party;
(3) have been placed beyond the jurisdiction of the
Court;
(4) have been substantially diminished in value, or;
(5) have been commingled with other property which
cannot be subdivided without difficulty;
it is the intent of the United States of America, pursuant to Title
18, United States Code, Section 1963(m) to seek forfeiture of any
other property of the defendants up to the value of the proceeds
and property described above as being subject to forfeiture;
All pursuant to Title 18, United States Code, Section 1963.
A TRUE BILL:
F O R E P E R S O N
UNITED STATES ATTORNEY
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES OF AMERICA )No. 02 CR 1050
)
v. )Violations: Title 18,
)United States Code,
NICHOLAS W. CALABRESE, )Sections 2, 371, 894,
JAMES MARCELLO, )1001(a)(2), 1510, 1951, 1955,
JOSEPH LOMBARDO, )and 1962(d)
also known as "The Clown," )
"Lumpy," and "Lumbo," )
FRANK CALABRESE, SR., )
FRANK SCHWEIHS, also known as )
"The German," )First Superseding Indictment
FRANK SALADINO, also known as )
"Gumba," )
PAUL SCHIRO, also known as )
"The Indian," )
MICHAEL MARCELLO, also known as )
"Mickey," )
NICHOLAS FERRIOLA, )
ANTHONY DOYLE, also known as )
"Twan," )
MICHAEL RICCI, )
THOMAS JOHNSON, )
JOSEPH VENEZIA, and )
DENNIS JOHNSON )
COUNT ONE
The SPECIAL AUGUST 2003-2 GRAND JURY charges:
I. THE ENTERPRISE
1. At times material to this indictment there existed a
criminal organization which is referred to hereafter as "the
Chicago Outfit." The Chicago Outfit was known to its members and
associates as "the Outfit" and was also known to the public as
"organized crime," the "Chicago Syndicate" and the "Chicago Mob."
The Chicago Outfit was an "enterprise" as that term is used in
Title 18, United States Code, Section 1961(4), that is, it
1
constituted a group of individuals associated in fact, which
enterprise was engaged in and the activities of which affected
interstate commerce. The enterprise constituted an ongoing
organization whose members functioned as a continuing unit for a
common purpose of achieving the objectives of the enterprise.
2. The Chicago Outfit existed to generate income for its
members and associates through illegal activities. The illegal
activities of the Chicago Outfit included, but were not limited to:
(1) collecting "street tax," that is, extortion payments required
as the cost of operating various businesses;(2) the operation of
illegal gambling businesses, which included sports bookmaking and
the use of video gambling machines; (3) making loans to individuals
at usurious rates of interest (hereafter referred to as "juice
loans"), which loans constituted "extortionate extensions of
credit," as that term is defined in Title 18, United States Code,
Section 891(6); (4) "collecting" through "extortionate means" juice
loans constituting "extensions of credit," as those terms are
defined in Title 18, United States Code, Sections 891(5), (7) and
(6), respectively; (5) collecting debts incurred in the Chicago
Outfit's illegal gambling businesses; (6) collecting debts incurred
in the Chicago Outfit's juice loan business, which debts carried
rates of interest at least twice the rate enforceable under
Illinois law; (7) using threats, violence and intimidation to
collect street tax and juice loan debts; (8) using threats,
violence, and intimidation to discipline Chicago Outfit members and
associates; (9) using murder of Chicago Outfit members, associates
2
and others to advance the interests of the Chicago Outfit's illegal
activities; (10) obstructing justice and criminal investigations by
intimidating, bribing, retaliating against, and murdering witnesses
and potential witnesses who could provide information adverse to
the enterprise's interests; and (11) traveling in interstate
commerce to further the goals of the criminal enterprise.
3. In order to carry out its criminal activities, the
Chicago Outfit maintained a structure and chain of command. The
criminal activities of the Chicago Outfit were carried out in part
by sub-groups, or "crews," which were generally given territories
in different geographic locations in the Chicago area. These crews
were known by their geographic areas, and included the Elmwood Park
crew, the North Side/Rush Street crew, the South Side/26th Street
or Chinatown crew, the Grand Avenue crew, the Melrose Park crew,
and the Chicago Heights crew. Each crew was run by a crew leader,
also known as a street boss or "capo," and these crew bosses
reported to an underboss, or "sotto capo," who was second in
command of the Chicago Outfit, and therefore referred to at times
as "Number Two." The overall leader of the Chicago Outfit was
referred to as the Boss or "Number One." The Chicago Outfit also
utilized a "consigliere," who provided advice to the Boss.
4. When an individual conducting illegal activities on behalf
of the Chicago Outfit proved himself particularly trustworthy and
was to be given special status in the enterprise, he was given
"made" status. An individual could not normally be "made" unless
he was of Italian descent, and had committed at least one murder on
3
behalf of the enterprise. An individual had to be sponsored by his
capo before he could be "made," which occurred at a ceremony in
which the person to be "made" swore allegiance to the enterprise.
This ceremony was attended by the individual's capo, as well as
other ranking members of the Chicago Outfit. Once "made," the
individual was accorded greater status and respect in the
enterprise. An individual who was "made" or who committed a murder
on behalf of the Outfit was obligated to the enterprise for life to
perform criminal acts on behalf of the enterprise when called upon.
5. Disputes between members of different crews were to be
resolved first by their respective capos, and, if no resolution
could be made between the capos, then the Boss would settle the
dispute.
6. During the course of the conspiracy, Anthony Accardo, also
known as "Big Tuna," and "Joe Batters," Joseph Aiuppa, also known
as "Doves," and "Joey O'Brien," Sam Carlisi, also known as "Wings,"
and John Monteleone, also known as "Johnny Apes," among others,
acted as Boss of the Chicago Outfit.
7. During the course of the conspiracy, Joseph Aiuppa, and
Jack Cerone, among others, acted as Sotto Capo, or Underboss, of
the Chicago Outfit.
8. During the course of the conspiracy, Joseph Ferriola was
a "made" member of the Chicago Outfit who reported directly to the
Boss. Harry Aleman, William Petrocelli, also known as "Butch,"
Jerry Scarpelli, and others, were criminal associates who reported
at various times to Joseph Ferriola.
4
9. Defendant JAMES MARCELLO was a member of the Melrose Park
crew, was a "made" member of the Chicago Outfit, and committed
murder and other criminal activities on its behalf. Defendant
JAMES MARCELLO continued to conduct criminal activities on the
Outfit's behalf while incarcerated through his brother, defendant
MICHAEL MARCELLO, and others.
10. Defendant JOSEPH LOMBARDO, also known as "the Clown,"
"Lumpy," and "Lumbo," was a member of the Grand Avenue crew, and
committed murder and other criminal activities on its behalf.
11. Defendant FRANK CALABRESE, SR., was a member of the South
Side/26th Street crew, was a "made" member of the Chicago Outfit,
and committed murder and other criminal activities on its behalf.
Defendant FRANK CALABRESE, SR., continued to conduct criminal
activities on the Outfit's behalf while incarcerated through
defendants FERRIOLA, DOYLE, RICCI, and others.
12. Other members of the South Side/26th Street crew were
James Torello, also known as "Turk," Angelo LaPietra, also known as
"the Hook," and "the Bull," and James LaPietra, all of whom served
as capos of this crew during the course of the conspiracy.
Additional members of this crew included John Monteleone, John
Fecarotta, Ronald Jarrett, James DiForti, Frank Furio, and Frank
Santucci.
13. Defendant NICHOLAS CALABRESE is the brother of defendant
FRANK CALABRESE, SR., was also a member of the South Side/26th
Street crew, was a "made" member of the Chicago Outfit, and
committed murder and other criminal activities on its behalf.
5
14. Defendant FRANK SCHWEIHS, also known as "the German," was
an enforcer for the Chicago Outfit, imposing and collecting "street
tax" for himself and Outfit members, and making additional
collections on behalf of the enterprise through the use of
extortionate means. Defendant SCHWEIHS also agreed to commit
murder on behalf of the Chicago Outfit.
15. Defendant FRANK SALADINO, also known as "Gumba," was a
member of the South Side/26th Street crew, and committed murder and
other criminal activities on behalf of the Chicago Outfit.
16. Defendant PAUL SCHIRO, also known as "the Indian," was a
criminal associate of defendant SCHWEIHS, "made" member Anthony
Spilotro, and Outfit associate Joseph Hansen, who committed murder
and other criminal activities on behalf of the Chicago Outfit.
17. Defendant MICHAEL MARCELLO, also known as "Mickey," is
the brother of defendant JAMES MARCELLO, and was a member of the
Melrose Park crew. Defendant MICHAEL MARCELLO assisted his
brother's participation in the activities of the enterprise while
defendant JAMES MARCELLO was in jail, by keeping his brother
informed of the enterprises's activities, delivering messages to
persons associated with the enterprise, and carrying out illegal
activities of the Chicago Outfit, including the operation of an
illegal video gambling business.
18. Defendant NICHOLAS FERRIOLA is the son of Joseph
Ferriola, and was a member of the South Side/26th Street crew who
assisted defendant FRANK CALABRESE, SR.'s participation in the
activities of the enterprise while defendant FRANK CALABRESE, SR.,
6
was in jail, by keeping defendant FRANK CALABRESE, SR., informed of
the enterprise's activities, delivering messages to persons
associated with the enterprise, collecting monies generated by
extortionate demands of defendant FRANK CALABRESE, SR., and
carrying out other illegal activities of the Chicago Outfit,
including the operation of an illegal sports bookmaking business.
19. Defendant ANTHONY DOYLE, also known as "Twan," is a
retired Chicago Police Department ("CPD") officer, who, at the time
he was employed as a CPD officer, assisted defendant FRANK
CALABRESE, SR.'s participation in the activities of the enterprise
while defendant FRANK CALABRESE, SR., was in jail, by keeping
defendant FRANK CALABRESE, SR. informed of a law enforcement
investigation into the murder of John Fecarotta, committed by
defendants FRANK CALABRESE, SR., NICHOLAS CALABRESE, and others.
Defendant DOYLE also agreed to pass messages from defendant FRANK
CALABRESE, SR., in jail to other members of the Chicago Outfit,
including messages designed to determine whether defendant NICHOLAS
CALABRESE or James DiForti, now deceased, was cooperating with law
enforcement about the activities of the enterprise.
20. Defendant MICHAEL RICCI is a retired CPD officer, who at
the time he was subsequently employed with the Cook County
Sheriff's Department, assisted defendant FRANK CALABRESE, SR.'s
participation in the activities of the enterprise while defendant
FRANK CALABRESE, SR., was in jail, by agreeing to pass messages
from defendant FRANK CALABRESE, SR., to other members of the
Chicago Outfit, including messages designed to determine whether
7
defendant NICHOLAS W. CALABRESE or James DiForti was cooperating
with law enforcement about the activities of the enterprise.
Defendant RICCI also agreed to assist defendant FRANK CALABRESE,
SR., in collecting monies generated by extortionate demands of
defendant FRANK CALABRESE, SR., and to provide materially false
information to special agents of the Federal Bureau of
Investigation.
II. THE RACKETEERING CONSPIRACY
21. From approximately the middle of the 1960s through the
date of the return of this indictment, the exact dates being
unknown to the Grand Jury, in the Northern District of Illinois,
Eastern Division, and elsewhere,
NICHOLAS W. CALABRESE,
JAMES MARCELLO,
JOSEPH LOMBARDO, also known as
"The Clown," "Lumpy," and "Lumbo,"
FRANK CALABRESE, SR.,
FRANK SCHWEIHS, also known as
"The German,"
FRANK SALADINO, also known as
"Gumba,"
PAUL SCHIRO, also known as
"The Indian,"
MICHAEL MARCELLO, also known as
"Mickey,"
NICHOLAS FERRIOLA,
ANTHONY DOYLE, also known as
"Twan," and
MICHAEL RICCI,
defendants herein, being persons employed by and associated with an
enterprise, that is, the Chicago Outfit, which enterprise engaged
in and the activities of which affected, interstate commerce, did
knowingly conspire and agree, with other persons known and unknown
to the Grand Jury, to conduct and to participate, directly and
8
indirectly, in the conduct of the affairs of the Chicago Outfit
through: (1) a "pattern of racketeering activity," as that term is
defined in Title 18, United States Code, Sections 1961(1) and
1961(5), and as further specified in paragraph 49 of this count,
and (2) the "collection of unlawful debt," as that term is defined
in Title 18, United States Code, Section 1961(6), and as further
specified in paragraph 50 of this count, both in violation of Title
18, United States Code, Section 1962(c).
22. It was part of the conspiracy that each defendant agreed
that a conspirator would commit at least two acts of racketeering
in the conduct of the affairs of the enterprise.
23. It was further part of the conspiracy that the
defendants, together with other persons known and unknown to the
Grand Jury, each agreed to conduct and to participate in the
conduct of the Chicago Outfit's affairs through the collection of
unlawful debt.
24. It was further part of the conspiracy that acts of murder
would be attempted and were committed to further the criminal
objectives of the Chicago Outfit and protect the enterprise from
law enforcement. Such murders and attempted murders included:
a. the murder of Michael Albergo, also known as "Hambone," in
or about August, 1970, in Chicago, Illinois;
b. the murder of Daniel Seifert, on or about September 27,
1974, in Bensenville, Illinois;
c. the murder of Paul Haggerty, on or about June 24, 1976, in
Chicago, Illinois;
d. the murder of Henry Cosentino, on or about March 15, 1977;
9
e. the murder of John Mendell, on or about January 16, 1978,
in Chicago, Illinois;
f. the murders of Donald Renno and Vincent Moretti, on or
about January 31, 1978, in Cicero, Illinois;
g. the murders of William and Charlotte Dauber, on or about
July 2, 1980, in Will County, Illinois;
h. the murder of William Petrocelli, on or about December 30,
1980, in Cicero, Illinois;
i. the murder of Michael Cagnoni, on or about June 24, 1981,
in DuPage County, Illinois;
j. the murder of Nicholas D'Andrea, on or about September 13,
1981, in Chicago Heights, Illinois;
k. the attempted murder of Individual A, on or about April 24,
1982, in Lake County, Illinois;
l. the murders of Richard D. Ortiz and Arthur Morawski, on or
about July 23, 1983, in Cicero, Illinois;
m. the murder of Emil Vaci, on or about June 7, 1986, in
Phoenix, Arizona;
n. the murders of Anthony and Michael Spilotro, on or about
June 14, 1986, in DuPage County, Illinois;
o. the murder of John Fecarotta, on or about September 14,
1986, in Chicago, Illinois.
25. It was further part of the conspiracy that at times
members of one crew would assist members of other crews in
homicides, by conducting surveillances of and luring intended
victims so that the victims would not be alerted that they were
targeted for murder.
26. It was further part of the conspiracy that cash payments
would be and were extorted from numerous individuals as "street
tax" to allow businesses run by those individuals to continue to
operate.
10
27. It was further part of the conspiracy that loans made at
usurious rates, or "juice loans," would be and were made to
numerous individuals. These loans carried interest rates generally
ranging from one percent (1%) to ten percent (10%) per week, which
translate into annual rates of 52% to 520%, respectively. In
making these juice loans, the conspirators agreed to rely and did
rely upon the borrower's understanding at the time the loan was
made that delay or failure to repay the loans could result in the
use of violence or other criminal means to cause harm to the
borrower. The conspirators also understood at the time each juice
loan was made that delay or failure to repay the loans could result
in the use of violence or other criminal means to cause harm to the
particular borrower.
28. It was further part of the conspiracy that "juice loan"
payments would be and were collected from numerous juice loan
debtors, who borrowed money from conspirators at the rates
described in the previous paragraph. The conspirators each
understood at the time they collected each juice loan payment that
delay or failure to repay the loan could result in the use of
violence or other criminal means to cause harm to the particular
debtor. The conspirators used violence, intimidation and threats
to collect these debts.
29. It was further part of the conspiracy that collections
would be made of debts incurred in connection with the juice loan
business described in this Count, which business charged rates of
interest at least twice the rate enforceable under Illinois law.
11
30. It was further part of the conspiracy that members and
associates of the Chicago Outfit would and did knowingly conduct,
finance, manage, supervise, direct, and own all or part of illegal
gambling businesses in violation of the laws of the State of
Illinois, including illegal sports bookmaking businesses, and
businesses which utilized video gambling machines for illegal
wagering.
31. It was further part of the conspiracy that members and
associates of the Chicago Outfit agreed to collect and did collect
debts incurred in connection with illegal gambling businesses
described in this Count.
32. It was further part of the conspiracy that members and
associates of the Chicago Outfit used violence, intimidation and
threats to: (1) instill discipline within the Chicago Outfit by
compelling adherence to the Chicago Outfit's edicts and
instructions; and (2) punish conduct by Chicago Outfit members,
associates and others, which the hierarchy of the Chicago Outfit
believed was adverse to the interests of the Chicago Outfit.
33. It was further part of the conspiracy that members and
associates of the Chicago Outfit would and did obstruct the due
administration of justice by: (1) intimidating, harming, and
killing witnesses and potential witnesses who could provide
information detrimental to the operations of the enterprise; (2)
providing false information to law enforcement officers; and (3)
paying money to individuals to keep them from cooperating with law
enforcement officials.
12
34. It was further part of the conspiracy that the
conspirators would and did use nominees, "fronts," and fictitious
names to hide the proceeds of criminal activities.
35. It was further part of the conspiracy that the
conspirators would and did use coded language in their discussions
and written materials, and utilized coded names for discussing
fellow conspirators and victims of their criminal activities.
36. It was further part of the conspiracy that the
conspirators would and did collect information from corrupt law
enforcement sources to determine and disrupt legitimate law
enforcement investigation into the activities of the enterprise.
37. It was further part of the conspiracy that the
conspirators would and did steal, store, and utilize "work cars"
for use in their criminal activities, including surveillance of
murder victims and committing murders.
38. It was further part of the conspiracy that the
conspirators would and did use walkie-talkies and citizen band
radios to communicate amongst themselves while conducting criminal
activities, including murder.
39. It was further part of the conspiracy that the
conspirators would and did monitor law enforcement radio
frequencies, and acquire radio equipment, monitors, and crystals to
do so, in order to detect and avoid law enforcement inquiry into
their activities, including murder.
40. It was further part of the conspiracy that the
conspirators would and did conduct surveillance to detect the
13
presence of law enforcement while they and coconspirators were
committing illegal activities, including murder.
41. It was further part of the conspiracy that the
conspirators would and did acquire explosives, explosive devices,
detonators, transmitters, and remote control devices with the
intent to murder individuals without needing to be in the immediate
vicinity of the intended victim.
42. It was further part of the conspiracy that the
conspirators would and did acquire and store firearms to be used to
commit murder.
43. It was further part of the conspiracy that the
conspirators would and did use pagers and pay phones in an effort
to reduce law enforcement's ability to intercept their
communications.
44. It was further part of the conspiracy that the
conspirators would and did maintain hidden interests in businesses,
from which they could receive income not traceable to them.
45. It was further part of the conspiracy that the
conspirators would and did maintain hidden control of labor
organizations and assets.
46. It was further part of the conspiracy that the
conspirators would and did utilize the threat of labor union
violence or disruptions to induce payments to the enterprise to
keep "union peace."
14
47. It was further part of the conspiracy that the
conspirators would and did maintain written records and ledgers for
their loansharking and bookmaking activities.
48. It was further part of the conspiracy that members and
associates of the Chicago Outfit misrepresented, concealed and hid,
caused to be misrepresented, concealed and hidden, and attempted to
misrepresent, conceal and hide the operation of the Chicago Outfit
and acts done in furtherance of the enterprise.
III. PATTERN OF RACKETEERING ACTIVITY
(First Alternative Ground of Liability)
49. The pattern of racketeering activity through which the
defendants agreed to conduct and to participate in the conduct of
the Chicago Outfit's affairs, consisted of multiple violations of
the following federal and state laws:
(a) Acts and threats involving murder chargeable under
the law of the States of Illinois, Arizona, and Nevada, which are
punishable by imprisonment for more than one year; that is, first
degree murder (Illinois: Illinois Revised Statutes, Chapter 38, §9
1; Arizona: Arizona Revised Statutes §13-1105), conspiracy to
commit murder (Illinois: Illinois Revised Statutes, Chapter 38, §8
2; Arizona: Arizona Revised Statutes §13-1003; Nevada: Nevada
Revised Statutes §199.480), and attempted murder (Illinois:
Illinois Revised Statutes, Chapter 38, §8-4);
(b) Making and conspiring to make extortionate extensions
of credit, indictable under Title 18, United States Code, Section
892;
15
(c) Collecting and conspiring to collect extensions of
credit by extortionate means, indictable under Title 18, United
States Code, Section 894;
(d) Interference with commerce by threats and violence,
and conspiring to commit this offense, indictable under Title 18,
United States Code, Section 1951;
(e) Acts and threats involving extortion in violation of
state law, which are punishable by imprisonment for more than one
year; that is, intimidation, in violation of Chapter 38, Illinois
Revised Statutes, §12-6 (which later became 720 ILCS 5/12-6 of the
Illinois Compiled Statutes) and conspiracy to commit intimidation,
in violation of Chapter 38, Illinois Revised Statutes, §8-2 (which
later became 720 ILCS 5/8-2 of the Illinois Compiled Statutes);
(f) Operating an illegal gambling business indictable
under Title 18, United States Code, Section 1955;
(g) Obstructing the due administration of justice,
indictable under Title 18, United States Code, Section 1503;
(h) Obstruction of criminal investigations, indictable
under Title 18, United States Code, Section 1510;
(i) Witness tampering, indictable under Title 18, United
States Code, Section 1512;
(j) Retaliating against a witness, indictable under Title
18, United States Code, Section 1513;
(k) Interstate travel in aid of racketeering enterprises,
indictable under Title 18, United States Code, Section 1952.
16
IV. COLLECTION OF UNLAWFUL DEBT
(Second Alternative Ground of Liability)
50. The collection of unlawful debt through which the
defendants agreed to conduct and to participate in the affairs of
the enterprise, consisted of multiple acts of collecting and
attempting to collect debt incurred in connection with the Chicago
Outfit's operation of illegal gambling businesses and its lending
money at usurious rates, which loans were unenforceable under
Illinois laws relating to usury, such gambling and loan debts
constituting unlawful debt as defined in Title 18, United States
Code, Sections 1961(6)(A) and (B).
All of the above in violation of Title 18, United States Code,
Section 1962(d).
17
COUNT TWO
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From in or before 1996 and continuing through the date of this
indictment, in the Northern District of Illinois, Eastern Division,
and elsewhere,
JAMES MARCELLO,
MICHAEL MARCELLO, also known as
"Mickey,"
THOMAS JOHNSON,
JOSEPH VENEZIA, and
DENNIS JOHNSON,
defendants herein, together with other persons known and unknown to
the Grand Jury, knowingly conducted all or part of an illegal
gambling business, that is, a business involving the use of video
gambling machines and devices in the western Chicago suburbs and
surrounding areas, which business was in substantially continuous
operation for a period in excess of thirty (30) days, which
involved five or more persons who conducted, financed, managed,
supervised, directed, and owned all or part of the business, and
which was a violation of the following laws of the State of
Illinois: Illinois Revised Statutes, Chapter 38, Sections 8-2, 28
1(a)(1), (3), and (5) and 28-3, which later became 720 ILCS 5/8-2,
5/28-1(1), (3), and (5), and 5/28-3;
In violation of Title 18, United States Code, Sections 1955
and 2.
18
COUNT THREE
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From in or about 1998 and continuing until at least January
2003, in the Northern District of Illinois and elsewhere,
JAMES J. MARCELLO, and
MICHAEL A. MARCELLO, also known as
"Mickey,"
defendants herein, did willfully endeavor by means of bribery to
obstruct, delay, and prevent the communication of information
relating to violations of criminal statutes of the United States by
a person to a criminal investigator; that is, the defendants paid
and caused to be paid a monthly sum of money to and on behalf of
Nicholas W. Calabrese in order to maintain his allegiance to the
Chicago Outfit and to prevent and discourage his cooperation with
law enforcement authorities;
In violation of Title 18, United States Code, Sections 1510
and 2.
19
COUNT FOUR
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in the early 1980s and continuing until
approximately November 2002, in the Northern District of Illinois
and elsewhere,
FRANK CALABRESE, SR., and
NICHOLAS FERRIOLA,
defendants herein, knowingly committed extortion, as that term is
used in Title 18, United States Code, Section 1951(b)(2), which
extortion affected interstate commerce as that term is used in
Title 18, United States Code, Section 1951(b)(3), in that the
defendants would and did obtain money as "street tax" from a
restaurant operating in Chicago, with the consent of a
representative of the restaurant, induced by the wrongful use of
actual and threatened force, violence, and fear;
In violation of Title 18, United States Code, Sections 1951
and 2.
20
COUNT FIVE
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in 1992 and continuing until at least sometime
in 2001, in the Northern District of Illinois and elsewhere,
FRANK CALABRESE, SR., and
NICHOLAS FERRIOLA,
defendants herein, together with other persons known and unknown to
the Grand Jury, knowingly conducted all or part of an illegal
gambling business, that is, a sports bookmaking business, which
business was in substantially continuous operation for a period in
excess of thirty (30) days, which involved five or more persons who
conducted, financed, managed, supervised, directed, and owned all
or part of the business, and which was a violation of the following
laws of the State of Illinois: Illinois Revised Statutes, Chapter
38, Sections 8-2, 28-1(a)(1), (3), and (5) and 28-3, which later
became 720 ILCS 5/8-2, 5/28-1(1), (3), and (5), and 5/28-3;
In violation of Title 18, United States Code, Sections 1955
and 2.
21
COUNT SIX
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in the summer of 2001 and continuing until
approximately November 2001, in the Northern District of Illinois
and elsewhere,
FRANK SCHWEIHS, also known as
"the German,"
defendant herein, knowingly did attempt to commit extortion, as
that term is used in Title 18, United States Code, Section
1951(b)(2), which extortion would have affected interstate commerce
as that term is used in Title 18, United States Code, Section
1951(b)(3), in that the defendant would and did attempt to obtain
money as "street tax" from an adult entertainment club operating in
a suburb of Chicago, with the consent of a representative of the
club, induced by the wrongful use of actual and threatened force,
violence, and fear;
In violation of Title 18, United States Code, Sections 1951
and 2.
22
COUNT SEVEN
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
From sometime in October of 2001 and continuing through
November 2001, in the Northern District of Illinois and elsewhere,
FRANK SCHWEIHS, also known as
"the German,"
defendant herein, knowingly participated in the use of extortionate
means within the meaning of Title 18, United States Code, Section
891(7), to collect and attempt to collect from the former owners of
an adult entertainment store operating in Indiana, an extension of
credit, within the meaning of Title 18, United States Code, Section
891(1); that is, the defendant did expressly and implicitly
threaten the use of violence to cause harm to the former owners of
the store in an attempt to obtain a sum of money from them by
November 1, 2001;
In violation of Title 18, United States Code, Sections 894 and
2.
23
COUNT EIGHT
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
On or about February 21, 2003, in the Northern District of
Illinois,
MICHAEL RICCI,
defendant herein, did knowingly and willfully make materially false
and fraudulent statements in a matter within the jurisdiction of
the Federal Bureau of Investigation (FBI), an agency within the
executive branch of the Government of the United States, in that
the defendant, in response to questions posed to him by special
agents of the FBI, stated: 1) that he, Anthony Doyle, and Frank
Calabrese, Sr., never discussed the FBI's taking possession of
evidence regarding the murder of John Fecarotta; 2) that Frank
Calabrese, Sr., never mentioned to him any concern as to whether
Nicholas Calabrese was cooperating with law enforcement regarding
the murder of John Fecarotta; 3) that Frank Calabrese, Sr., never
asked him to pass any messages to anyone about the Fecarotta
homicide; 4) that Frank Calabrese, Sr., never asked him to pass
messages to anyone concerning gambling, street tax, or any other
type of criminal activity; 5) that he did not pass any messages to
or from Frank Calabrese, Sr., to or from anyone; 6) that before his
previous interview by special agents of the FBI on or about May 4,
1999, he had never heard of James DiForti; and 7) that he had never
discussed James DiForti with Frank Calabrese, Sr. In violation of
Title 18, United States Code, Section 1001(a)(2).
24
COUNT NINE
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
1. At times material herein, defendant MICHAEL MARCELLO
operated a business that involved the placement, maintenance and
use of video gambling machines and devices. This business was
known as M & M Amusement, Inc. (also known to some of its customers
as Buff Amusement, Inc.), with MICHAEL MARCELLO as the sole
shareholder and officer. MICHAEL MARCELLO employed defendants
JOSEPH VENEZIA and THOMAS JOHNSON, among others, to help him
oversee the operation and maintenance of and the collection of
proceeds from the video gambling machines and devices. JAMES
MARCELLO assisted his brother MICHAEL MARCELLO by directing him and
advising him on the operation of the business.
2. Beginning in or about January 1996 and continuing
thereafter through at least April 2004, in the Northern District of
Illinois, Eastern Division,
JAMES MARCELLO,
MICHAEL MARCELLO, also known as
"Mickey,"
JOSEPH VENEZIA and
THOMAS JOHNSON,
defendants herein, did willfully and knowingly conspire and agree
together and with others known and unknown to the grand jury, to
defraud the United States by impeding, impairing, obstructing and
defeating the lawful government functions of the Department of
Treasury, in particular, the Internal Revenue Service (hereafter
referred to as "IRS"), in the ascertainment, computation,
assessment, and collection of the revenue: to wit, income taxes.
25
MANNER AND MEANS
3. It was part of the conspiracy that defendant MICHAEL
MARCELLO caused video gambling machines and devices to be obtained
for M & M Amusement, Inc., from other companies.
4. It was further a part of the conspiracy that defendants
and others then placed and caused the placement of these video
gambling machines and devices at various locations, such as
taverns, restaurants, and fraternal clubs, primarily in Cicero and
Berwyn, Illinois, and that co-conspirator owners, managers, and
representatives of the taverns, restaurants, and fraternal clubs
accepted placement of these gambling machines and devices in return
for a portion of the profits from the machines and devices.
A. To activate these video gambling machines and
devices, players at the taverns, restaurants, and fraternal clubs
had to insert currency into the money receptacles of the video
gambling machines and devices to put credits on the machines and
devices.
B. Players earned credits based upon the success of
their resultant play. Pay-outs to winning players were based on
the total of credits accumulated. These video gambling machines
and devices could be adjusted by the defendants either to raise or
lower the amount of credits earned by players.
C. These machines and devices used electronic systems
that guaranteed that the operator retained a portion (percentage)
of the wagers as profits. From a player's standpoint, the
operation of the machine and device was essentially random. As
26
such, players had no real control over what combination of symbols
would appear, and no element of skill was involved in the game.
D. The machines and devices electronically accumulated
"credits," and players were paid based upon the number of
accumulated credits. After a winning player had been paid by a
representative of the taverns, restaurants, and fraternal clubs,
the video gambling machines and devices had a "knock off" device
(normally a button or combination of buttons) that could be pushed
to clear the accumulated credits. Also, the video gambling
machines and devices had separate electronic counters inside the
machines and devices that recorded both the total number of plays
on the machine, and the total of winning credits won on and cleared
off the machines and devices.
5. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON, and others, instructed the
owners, managers, and representatives of the taverns, restaurants,
and fraternal clubs at which the video gambling machines and
devices were placed, on such topics as how to set up the machines
and devices; how properly to pay off the winners on the machines
and devices; how to "clear" or "knock off" the accumulated credits
from the machines and devices after the player had been paid off;
and other topics necessary to the conduct of the illegal gambling
business.
6. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON and others entered into verbal
understandings with the owners, managers, and representatives of
27
the taverns, restaurants, and fraternal clubs, regarding the
operation of the video gambling machines and devices. These verbal
understandings included, but were not limited to, agreements
regarding reimbursement for pay-outs to the players for their
earned credits and the distribution and splitting of the proceeds
from the video gambling machines and devices.
7. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON and others
would and did conduct their business, primarily in cash, with the
persons to whom they distributed the video gambling machines and
devices, that is, the co-conspirator owners, managers, and
representatives of the taverns, restaurants, and fraternal clubs.
8. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON and others would and did warn the
owners, managers, and representatives of the taverns, restaurants,
and fraternal clubs to be careful to whom they paid out money on
the video gambling machines and devices because of possible law
enforcement investigations. In particular, they warned the owners,
managers, and representatives only to pay money to winning
customers whom they knew well, and to beware of law enforcement
efforts. Those customers who were not known were to be told that
the video gambling machines were for amusement only.
9. It was further a part of the conspiracy that defendants
JOSEPH VENEZIA and THOMAS JOHNSON and others would and did visit
the taverns, restaurants and fraternal clubs, in which the video
gambling machines and devices were placed, on a fairly regular
28
basis, normally at least weekly but at times on a more frequent
basis, to collect the cash proceeds from the machines.
10. It was further a part of the conspiracy that during these
visits, defendants JOSEPH VENEZIA and THOMAS JOHNSON and others
would determine the amount of money played since the last visit on
the machines (known as the "ins"), and the amount of money paid to
winning customers on the machines (known as the "outs").
Defendants JOSEPH VENEZIA and THOMAS JOHNSON and others would open
the machines and devices and read the electronic counters inside
the machines that recorded both the total number of plays on the
machines and the total number of winning credits won, and clear off
the machines since the last collection in order to determine to
date the amount of revenue on the machines. Defendants JOSEPH
VENEZIA and THOMAS JOHNSON and others would then confer with the
representative of each location and review the accounting. If
JOSEPH VENEZIA and THOMAS JOHNSON and others visited the location
on more than one occasion per week, two written copies of the
accounting since the last visit were written on small white sheets
of paper, one of which was provided to and retained by the
representative of the location and the other of which was retained
by JOSEPH VENEZIA and THOMAS JOHNSON and others, often in a small,
locked box at the location to which only JOSEPH VENEZIA and THOMAS
JOHNSON and others employed by M & M Amusement, Inc., had access.
The owners, managers, and representatives of the taverns,
restaurants, and fraternal clubs were credited for the amount of
money paid to winning customers (the "outs"). Later, on the
29
weekly settlement date, the small white sheets of paper were then
typically destroyed by JOSEPH VENEZIA and THOMAS JOHNSON and
others employed by M & M Amusement, Inc, as well as by the
representatives of the taverns, restaurants, and fraternal clubs,
often by burning them on the premises or by other means of
destruction.
11. It was part of the conspiracy that on an agreed upon
recurring settlement day of the week, defendants JOSEPH VENEZIA and
THOMAS JOHNSON, and others, under the direction of MICHAEL
MARCELLO, issued weekly M & M Amusement, Inc. collection reports,
yellow in color, to the owners, managers, and representatives of
taverns, restaurants, and fraternal clubs when they collected M &
M Amusement, Inc.'s share of the weekly receipts of the video
gambling machines and devices placed in such taverns, restaurants
and fraternal clubs. The information recorded on the collection
reports purported to represent the following: the name of the
establishment, its address, the date of collection, the total gross
receipts from the machines for that week, which was listed on the
receipts as the "Net Amount to Divide," and the fifty percent share
of the gross receipts for the establishment, which was listed on
the collection reports as the "Merchant's Share" and the fifty
percent share of the gross receipts for M & M Amusement, Inc.,
which was listed on the collection reports as the "Balance Due
Operator."
12. It was further part of the conspiracy that the collection
reports issued weekly by defendants JOSEPH VENEZIA and THOMAS
30
JOHNSON, and others, under the direction of MICHAEL MARCELLO, were
false, in that the collection reports substantially understated the
entire gross receipts generated by the video gambling machines, and
substantially understated the amounts of money reflecting the
taverns,' restaurants' and fraternal clubs' share of the gross
receipts as well as M & M Amusement, Inc.'s share of the gross
receipts.
13. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON, and others,
kept and maintained, and caused to be kept and maintained for the
records of M & M Amusement, Inc., copies of the false collection
reports provided to the taverns, restaurants and fraternal clubs.
14. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON, and others,
created, kept and maintained, and caused to be created, kept and
maintained handwritten summary sheets of the weekly collection
reports of M & M Amusement, Inc., reflecting the amounts on the
false collection reports provided to the taverns, restaurants and
fraternal clubs, which summary sheets thus substantially
understated the amounts of money reflecting the taverns,'
restaurants' and fraternal clubs' share of the gross receipts as
well as M & M Amusement, Inc.'s share of the gross receipts.
15. It was further a part of the conspiracy that defendants
MICHAEL MARCELLO, JOSEPH VENEZIA and THOMAS JOHNSON, and others,
failed to keep permanent records of the actual gross revenues
earned as the result of the gambling operation.
31
16. It was further a part of the conspiracy that defendant
MICHAEL MARCELLO delivered to his accountant and tax preparer
handwritten summary sheets of the weekly collection reports, which
reflected the false and inaccurate income information. Defendant
MICHAEL MARCELLO knew that the amounts listed on these handwritten
summary sheets ensured that an incorrect accounting of the gross
receipts and profits collected from the video gambling machines and
amusement machines would be reported to his accountant, and that
his accountant would rely on these false summary sheets to prepare
quarterly financial reports and tax returns.
17. It was further a part of the conspiracy that defendant
MICHAEL MARCELLO verbally advised this accountant each quarter that
he was providing the accountant the entirety of the gross revenues
for that quarter when in fact the figures he was providing the
accountant did not reflect the moneys paid to bettors nor did the
figures reflect the true amount of the profits to M & M Amusement,
Inc., and to the taverns, restaurants and fraternal clubs,
collected from the video gambling machines.
18. It was further part of the conspiracy that defendants
thus caused the preparation of false S Corporation income tax
returns (IRS Forms 1120S) for M & M Amusement, Inc. for the years
1996 through 2003, by creating and providing the false documents as
described above which were used by M & M Amusement, Inc.'s
accountant in the preparation of the S Corporation income tax
returns.
32
19. It was further part of the conspiracy that defendant
MICHAEL MARCELLO then signed and caused to be filed these false S
Corporation income tax returns with the Internal Revenue Service,
knowing that these S Corporation income tax returns had been
prepared using false information and that they therefore
understated M & M Amusement, Inc.'s gross receipts and profits.
20. It was further part of the conspiracy that defendant
MICHAEL MARCELLO thus caused the preparation of false individual
income tax returns (IRS Forms 1040) for himself for the years 1996
through 2003, by creating and providing the false documents as
described above which were used by his accountant in the
preparation of the individual income tax returns as well as the S
Corporation income tax returns.
21. It was further part of the conspiracy that defendant
MICHAEL MARCELLO then signed and caused to be filed these false
individual income tax returns with the Internal Revenue Service,
knowing that these individual income tax returns had been prepared
using false information and that they therefore understated his
total income.
22. It was further part of the conspiracy that defendants
caused the preparation and delivery of numerous false IRS Forms
1099 to the owners of the taverns, restaurants and fraternal
clubs, as the figures reported on the IRS Forms 1099 did not
reflect the true amount of the profits to the taverns, restaurants
and fraternal clubs, collected from the video gambling machines.
The owners of the taverns, restaurants and fraternal clubs then
33
knowingly provided these false IRS Forms 1099 to their accountants
and thereafter caused false individual and corporate income tax
returns to be filed with the Internal Revenue Service.
23. It was further part of the conspiracy that defendants
caused to conceal from the Internal Revenue Service a substantial
portion of the income received from the operation of the gambling
operation for the tax years 1996 through 2003, inclusive.
24. It was further part of the conspiracy that defendants
JAMES MARCELLO and MICHAEL MARCELLO caused money generated from the
under-reporting of gross receipts from operation of the gambling
business to be used for their own benefit.
25. It was further part of the conspiracy that defendants
JAMES MARCELLO and MICHAEL MARCELLO would discuss at the Federal
Correctional Center at Milan, Michigan, the operation of M & M
Amusement, Inc., as it related to the relationship with the owners,
managers, and representatives of taverns, restaurants, and
fraternal clubs. This included discussions involving the then
current Internal Revenue Service's criminal investigation of the
operation of video gambling machines and devices in taverns,
restaurants, and fraternal clubs in the Cicero and Berwyn, Illinois
area.
26. It was further a part of the conspiracy that defendant
MICHAEL MARCELLO failed to deposit all the weekly business receipts
to M & M Amusement, Inc.'s bank account, knowing that its tax
accountant determined income based upon the bank deposit method.
34
27. It was further part of the conspiracy that the defendants
would and did misrepresent, conceal and hide, and cause to be
misrepresented, concealed and hidden the purposes of, and acts done
in furtherance of, the conspiracy.
OVERT ACTS
28. In furtherance of the conspiracy and to effect the
objects thereof, in the Northern District of Illinois and
elsewhere, the following overt acts, among others, were committed
by the named defendants and others:
A. On or about the following dates, defendant MICHAEL
MARCELLO signed and caused to be filed false individual and S
Corporation income tax returns, with the Internal Revenue Service,
knowing that these income tax returns had been prepared using false
information regarding the gross receipts and profits for his
business, M & M Amusement, Inc.:
(1) On or about July 23, 1997, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1996 S
Corporation income tax return.
(2) On or about April 23, 1998, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1997 S
Corporation income tax return.
(3) On or about July 16, 1999, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1998 S
Corporation income tax return.
35
(4) On or about October 15, 1999, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 1998
individual income tax return.
(5) On or about September 15, 2000, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
1999 S Corporation income tax return.
(6) On or about, September 15, 2000, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
1999 individual income tax return.
(7) On or about July 11, 2001, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2000 S
Corporation income tax return.
(8) On or about July 11, 2001, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2000
individual income tax return.
(9) On or about July 30, 2002, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2001 S
Corporation income tax return.
(10) On or about September 10, 2002, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
2001 individual income tax return.
(11) On or about March 27, 2003, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2002 S
Corporation income tax return.
36
(12) On or about April 25, 2003, defendant MICHAEL
MARCELLO knowingly signed and caused to be filed a false 2002
individual income tax return.
(13) On or about February 27, 2004, defendant
MICHAEL MARCELLO knowingly signed and caused to be filed a false
2003 S Corporation income tax return.
(14) On or about April 14, 2004, defendant MICHAEL
MARCELLO knowingly caused to be electronically filed a false 2003
individual income tax return.
B. On or about the following dates, defendants MICHAEL
MARCELLO and JAMES MARCELLO had conversations at the Federal
Correctional Center at Milan, Michigan:
(1) December 20, 2002.
(2) January 9, 2003.
(3) January 30, 2003.
(4) April 24, 2003.
(5) May 15, 2003.
C. On a weekly basis from January 1996 through November
2003, defendants JOSEPH VENEZIA and THOMAS JOHNSON, and at times
others, delivered numerous false collection reports purporting to
represent the proceeds from the video gambling machines and devices
to representatives of numerous taverns, restaurants, and fraternal
clubs in the Berwyn and Cicero area of Illinois, each such delivery
constituting a separate overt act.
D. On a weekly basis from January 1996 through
November 2003, defendant MICHAEL MARCELLO deposited cash into M &
37
M Amusement, Inc.'s bank account, knowing that such cash was not
all of the weekly business receipts of M & M Amusement, Inc., and
that M & M Amusement, Inc.'s tax accountant determined income based
upon the bank deposit method, each such deposit constituting a
separate overt act.
All in violation of Title 18, United States Code, Section
371.
38
FORFEITURE ALLEGATION
The SPECIAL AUGUST 2003-2 GRAND JURY further charges:
1. The allegations contained in Count One of the indictment
are realleged and incorporated by reference for the purposes of
alleging forfeiture pursuant to Title 18, United States Code,
Section 1963.
2. As a result of the violation of Title 18, United States
Code, Section 1962(d), as alleged in the foregoing indictment
NICHOLAS W. CALABRESE,
JAMES MARCELLO,
JOSEPH LOMBARDO, also known as
"The Clown," "Lumpy," and "Lumbo,"
FRANK CALABRESE, SR.,
FRANK SCHWEIHS, also known as
"The German,"
FRANK SALADINO, also known as
"Gumba,"
PAUL SCHIRO, also known as
"The Indian,"
MICHAEL MARCELLO, also known as
"Mickey,"
NICHOLAS FERRIOLA,
ANTHONY DOYLE, also known as
"Twan," and
MICHAEL RICCI,
defendants herein:
(a) have acquired and maintained interests in violation of
Title 18, United States Code, Section 1962, which interests are
subject to forfeiture to the United States pursuant to Title 18,
United States Code, Section 1963(a)(1);
(b) have interests in, securities of, claims against, and
property and contractual rights affording sources of influence over
the enterprise described in Count One which defendants established,
operated, controlled, conducted, and participated in the conduct
39
of, and conspired to do so, in violation of Title 18, United States
Code, Section 1962, thereby making all such interests, securities,
claims, and property and contractual rights subject to forfeiture
to the United States of America pursuant to Title 18, United States
Code, Section 1963(a)(2);
(c) have property constituting and derived from proceeds which
obtained, directly and indirectly, from racketeering activity in
violation of Title 18, United States Code, Section 1963 (a)(3).
3. The interests of the defendants, jointly and severally
subject to forfeiture to the United States pursuant to Title 18,
United States Code, Section 1963(a)(1), (a)(2), and (a)(3) include
but are not limited to:
(a) $10,000,000;
(b) As to defendants JAMES MARCELLO and MICHAEL
MARCELLO only:
Real property at 5533 West 25th Street, Cicero,
Illinois, being more particularly described as:
Lot 78 in E. A. Cummings and Company's 25th Street
and Central Avenue Addition, being a subdivision of
the Southwest 1/4 of the Southwest 1/4 of the
Northwest 1/4 of Section 28, Township 39 North,
Range 13, East of the Third Principal Meridian, in
Cook County, Illinois.
4. To the extent that the proceeds and property described
above as being subject to forfeiture pursuant to Title 18, United
States Code, Section 1963, as a result of any acts or omission by
any defendant:
(1) cannot be located upon the exercise of due
diligence;
40
______________________________
_________________________________
(2) have been transferred or sold to, or deposited
with, a third party;
(3) have been placed beyond the jurisdiction of the
Court;
(4) have been substantially diminished in value, or;
(5) have been commingled with other property which
cannot be subdivided without difficulty;
it is the intent of the United States of America, pursuant to Title
18, United States Code, Section 1963(m) to seek forfeiture of any
other property of the defendants up to the value of the proceeds
and property described above as being subject to forfeiture;
All pursuant to Title 18, United States Code, Section 1963.
A TRUE BILL:
F O R E P E R S O N
UNITED STATES ATTORNEY
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