Meeting Frank Calabrese Jr.

It was a tattoo that almost got Frank Calabrese killed. He'd had it etched across his back while he was in Milan prison in Michigan: a large map of America over which prison bars have been superimposed with a pair of hands reaching out through them in handcuffs. He'd designed it himself, to make a point, he says, about "how you are free in America but somehow not free".

The tattoo was drawn by a fellow inmate, against prison regulations, with the connivance of a guard whom they bribed to look the other way.

Soon after he'd had it done, Calabrese was walking around the prison exercise yard. He was wearing a wire, his torso wrapped in recording equipment like a Christmas tree. Walking beside him was one of the world's most dangerous men – a killing machine from the Chicago mob whose preferred method of assassination was the rope and knife.

Calabrese had just succeeded in enticing the other man into telling him about a succession of murders he'd committed, including that of Tony "The Ant" Spilotro and his brother Michael, immortalised by the film Casino. The unwitting confession was captured by the wire and recorded for later analysis by the FBI.

Suddenly the older man stopped and asked to see Calabrese's new tattoo. "Why've you been covering it up? Let me see it," he said. It was an instant death warrant. If Calabrese lifted up his shirt and revealed the wire, the older man, who was shorter than him but immensely powerful, would know he had been betrayed and would kill him on the spot with his bare hands. It was 300 yards to the prison door and Calabrese calculated he wouldn't make it, deciding instead to stand his ground and bluff it. He pulled his shirt down and refused, saying it would get him into trouble. The older man looked puzzled for a second, then relaxed and backed off.

Should Calabrese have been exposed at that moment as an FBI informant, it would have put an end to the largest mafia investigation in American history. As it was, he went on to hold many more hours of taped conversations with the older man that helped to blow apart the Chicago mob. The Outfit, the organised crime syndicate of Al Capone that had terrorised the city for 100 years, had finally got its comeuppance.

That exchange in the prison yard was significant for another, more personal, reason. The older man whom Calabrese was secretly recording, condemning him in the process to spending the rest of his life in prison, had the same name as him: Frank Calabrese. Senior. His father.

Hollywood revealed to Frank Calabrese Jr the truth about his father. Until he saw his own domestic life play out on screen, he'd assumed he was from a normal family.

Home life in the heavily Italian and mafia-frequented neighbourhood of Elmwood Park was dominated by his father's Sicilian roots. Three generations of Italian-Americans – his grandparents, parents and uncles, brothers and cousins – were crammed into the house they called the Compound. Frank Jr was the eldest of three sons, and his father's favourite.

What his father did all day was a mystery to the young boy. When other kids at school asked him how his dad made a living, he was nonplussed.

"Tell them I'm an engineer," Frank Sr would say.

"What, like a choo-choo-train engineer?"

"No, tell them I'm an operating engineer."

Calabrese was 12 when The Godfather came out. The Corleone family it portrayed was strikingly similar to his own. Art was imitating life, or was it the other way round? His father was friendly with Gianni Russo, who played Carlo Rizzi, the Godfather's son-in-law, in the movie. One night, Russo was being interviewed on a show and pulled out a knife he said had been given to him by a mobster.

"I gave him that knife," Frank Sr said as they sat watching TV.

Years later, in one of the taped conversations Frank Jr had with his father, Calabrese Sr remarked that Mario Puzo's account in the original book of the initiation ceremony for "made men" was spot on. "Whoever wrote that book, either their father or their grandfather or somebody was in the organisation," said Calabrese Sr, who, as a "made man" himself, knew what he was talking about.

"So you mean they actually pricked the hand and the candles and all that stuff?" Frank Jr asked.

"Their fingers got cut and everybody puts the fingers together and all the blood running down. Then they take pictures, put them in your hand, burn them. Holy pictures."

A few years after The Godfather came out, Frank Sr began to draw his son into the family business. It was a slow, almost imperceptible process. "He started to involve me in little things," Calabrese said. "It was like, 'Hey, son, do this for your dad. Go take this envelope, go deliver this to a store.'"

Calabrese was encouraged to keep a low profile. "We were taught to blend, to fly under the radar. My father told me to drive Fords and Chevies, not Cadillacs or BMWs. Wear baseball caps, not fedoras, ski jackets, not trenchcoats."

At 19, Calabrese was allowed to take part in mob activities, starting with collecting money from peep shows and graduating into keeping the books. It was an education of sorts. "I learned all my maths through the juice loan business." As he became more central to his father's racketeering and gambling concerns, the lessons became more specific. Calabrese was shown by his father how to hug someone to see if they were carrying a gun or wearing a wire.

Calabrese embraced his new life. "When I bought into it, I bought into it strong. Whatever my father told me to do, that's what I did. I didn't fear law enforcement, or jail, or death. If my father told me to walk full-speed into that wall, I would."

Then, at the age of 26, Calabrese was invited to take part in an initiation ceremony all of its own – his first gangland murder.

For a key prosecution witness in a massive mob case that took down 14 top mafia bosses, Frank Calabrese Jr comes across as remarkably relaxed. He's not in a witness protection scheme, lives under his own name, and when I visit him in a condo apartment outside Phoenix in Arizona, he readily opens the door and welcomes me in without so much as a frisking. How does he know I'm not a hit man sent from Chicago to exact revenge? "I don't," he says.

Calabrese looks the part of a Chicago hard man. His head is shaved, accentuating his large ears and piercing blue eyes. He's wearing a sleeveless vest and slacks, which display the product of hours spent pumping iron. When he speaks, though, Calabrese does so with a surprising softness and introspection. It's a bit like listening to Tony Soprano talking to his therapist (Calabrese is a big Sopranos fan – he watched the whole series with his mother and ex-wife, wincing at the parallels with his own family).

Hanging on the wall of his apartment is a framed photograph of Frank Sinatra, Dean Martin, Peter Lawford and Sammy Davis Jr from the original Ocean's 11. His father, he explains, was friendly with Sinatra's bodyguard.

Frank Calabrese Sr – aka Frankie Breeze – was born in 1937 into a poor Italian family on the west side of Chicago. He left school at 13 and could barely read and write. By 16 he had begun to make money as a thief and later developed a "juice" loan business, extracting exorbitant rates of return. It was a lucrative enterprise: at its peak he had $1m out on loan with collections of up to 10% per week. After the trial ended and the elder Calabrese was given multiple life sentences, the FBI searched his home and found $2m-worth of diamonds and almost $800,000 in bills and property deeds.

In 1964, Calabrese Sr was "whistled in" to the Outfit by a much-feared mafia underboss called Angelo "The Hook" LaPietra. The nickname came from what LaPietra would do to anyone who fell behind with their loan repayments: hang them on a meat hook and torture them with a cattle prod or blowtorch. Cause of death – suffocation from screaming. The younger Calabrese grew up thinking of LaPietra as "Uncle Ang".

Together with LaPietra and his own brother, Nick, Calabrese Sr developed a specialist role as the Outfit's murder squad. Calabrese Jr was given an insight into that as a teenager one night when his father came home and hurried him into the bathroom. With the fan on and the water running so no one else could hear, he breathlessly recounted a hit he'd just carried out. "We got 'im… Our guy wasn't listening to the rules, so we shotgunned him."

Those who were "retired" by Calabrese Sr and his brother included Michael "Bones" Albergo; John Mendell, who rather foolishly robbed the home of the Outfit's consigliere, Tony "Big Tuna" Accardo; a business rival called Michael Cagnoni, who was blown up in his car; rogue mobster Richard Ortiz; and Emil Vaci, a Las Vegas-based gangster the Outfit feared might inform against them. Then there were the Spilotros of Casino fame. Tony Spilotro was head of the Outfit's Vegas arm, running a gambling and "skimming" business (skimming off casino profits without telling the tax authorities). He got too big for his boots, and when the bosses found out he was having an affair with another made man's wife, they wanted him gone.

Tony Spilotro and his brother Michael were lured to Chicago under the pretext that Michael would be "made" and Tony would be promoted to capo. Instead, they had ropes thrown around their necks and were strangled – the legendary "Calabrese necktie".

The younger Calabrese's own brush with murder came in 1986 when he was chosen to take part in a hit on John "Big Stoop" Fecarotta. He was to sit in the back seat of the getaway car. "I was ready to murder for my dad," Calabrese says. "You always need two guys in the car, and I was to go with my uncle Nick. If I'd crossed that line, there would have been no coming back. But my uncle talks me out of it. He tells me, 'This ain't for you. You don't want this life.' He saved me."

That was a turning point for Calabrese, in both his relationship with the mob and, by extension, with his father. When he was young, his father was loving towards him, always ready with a hug. But as Calabrese Sr came increasingly under the influence of the murderous LaPietra, he changed, growing colder and more brutal towards his son. "His temper became shorter, he would be quicker with his hands, more controlling. He didn't think twice about cracking you in the face."

The younger Calabrese came to see how manipulative his father was, switching personalities at the click of his fingers. "If you were sitting with him here right now, you'd love him. He'd charm you. But when you'd gone, he'd turn into his second personality – a controlling and abusive father. And his third personality was the killer."

To try to wriggle out of his father's tight embrace, Calabrese set up in business on his own. He opened Italian restaurants, and later began dealing cocaine. He kept that hidden from his father, knowing that if he was found out "the old man would have killed me". He also kept secret his own intensifying addiction to the drug. In a desperate move to break free and to keep his habit fed, Calabrese began stealing from a cache of about $700,000 in $50 notes his father had tucked behind a wall in his grandmother's basement.

Not a good idea. When his father discovered the losses, and who was responsible, he issued a decree. "From now on, I own you," he told his son. "The restaurants are mine, your house is mine, everything is mine."

A few months later his father asked Calabrese to join him for a coffee. They met at a lock-up garage used by the crew. "As I opened the door I realised, oh shit! He's setting me up. He slams the door, turns and sticks a gun in my cheek. Then he says: 'I would rather have you dead than disobey me.'"

Calabrese started sobbing and begging for forgiveness. "Somehow I got out of that garage. As we got back in the truck, he started punching me and back-handing me in the face. My tears were rolling down and all I could think about was how I could never trust this man again. From that day on, I have never trusted anybody. Nobody."

The decision to turn informant against his own father was taken in 1998 inside Milan prison where both Frank Calabreses were sent after being found guilty of racketeering and illegal gambling. Imprisonment was the best thing that happened to the younger man. It allowed him to kick his cocaine addiction, and to become healthy once again. Most important, it freed him from his father's control.

He became determined that as soon as he was released he would make a new life for himself. "I decided that I was going to quit the Outfit. I'd wound up in prison, on drugs. That wasn't what I wanted any more. I had to find a way to go straight when I came out."

But he knew a huge hurdle stood in his way: his father. He had a choice. Either he could wait until they were both out, then confront his father and tell him he wanted to leave the family business, in which case there would almost certainly be a showdown and one of them would end up dead. Or he could cooperate.

The FBI called their investigation Operation Family Secrets. The 2007 trial lasted three months and took into account 18 murders. In addition to his father's life sentences, long prison sentences were eventually handed out to seven other Outfit bosses. It was an extraordinary result given the history of the Chicago mob. In its 100 years, the Outfit had committed more than 3,000 murders, yet before this only 12 convictions had been secured. Until Calabrese took the stand, backed up by his uncle Nick, who had also turned prosecution witness, not a single made member had been held accountable.

During the trial, the younger Calabrese gave evidence against his father standing just feet away from him in the courtroom. "The one thing I wasn't ready for was the emotional part. I walk into the courtroom and it's the strangest feeling I've ever had. There was my dad. Part of me wanted to go over to him and hug him and say, Dad, I'm going to take care of you. It's going to be OK. Man, I wasn't prepared for that."

As he left the courtroom at the end of his testimony, "the tears just started streaming. An agent asks me, 'Are you OK?' And I say, 'No, I've just realised that's the last time I'll ever see my dad.'"

He was right about that. The elder Calabrese, now 74, is being held in a maximum security institution in Missouri where he has been kept for the past two years in almost total isolation. He is permitted no visitors, nor any contact with other prisoners in a regime reserved for a handful of the most serious terrorists and serial killers.

Calabrese left Chicago after the trial and moved to Phoenix, partly to get away from his past and partly because the hot, dry air of Arizona is good for his health. A few years ago he discovered he had MS and though he keeps it at bay with exercise, it causes him to limp.

He lives with his two children, Kelly and Anthony, and makes a living as a motivational speaker, telling law-enforcement conferences and self-help groups how he has turned his life around. He is unmarried, but his former wife Lisa lives nearby and they remain close. She is still deeply afraid, he says, that his father will seek retribution and she has pleaded with him to enter witness protection. But he continues to refuse. As he writes in his book: "I'm pragmatic. If people can kill presidents, they can kill me. Nobody is invincible and completely safe in today's world."

When I ask to see the tattoo that nearly got him killed, he pulls up his shirt to reveal that his back carries not only the drawing of the map of America with prison bars, but also seven small tattoos depicting bullet holes – like the ones you get on cowboy posters. "I feel I'm always going to have to watch my back," he explains, "so those bullet holes are a reminder to me to be alert every day."

Regrets, he has a few. He still finds it difficult to come to terms with the fact that he committed the mobster's ultimate sin by ratting on another. And though he is convinced he made the right decision, he is still deeply troubled by the outcome. "At this stage in his life, as my dad gets old, I wanted to be there for him. I wanted to be his protector, not his executioner."

Can there be forgiveness between them, the Frank Calabreses? "I can forgive him. I love my dad to this day, I just don't love his ways. But I don't think he can forgive me. I really don't. I wish he could."

Calabrese says he's resigned to the grip his father has, and will for ever have, over him. "I know in my heart that the day my father dies he'll haunt me," he says. "This will go on for eternity. I don't know what to expect in the next life, but I do know that wherever it is he will be waiting there for me. And he's not going to be happy with me."

Thanks to Ed Pilkington

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Feds Raid House of Frank Calabrese Sr. - Discover Hidden Recording Devices, Tapes, Notes, Cash, & Jewelry

Federal agents say they discovered potentially incriminating tapes and notes -- along with almost $730,000 in cash and about 1,000 pieces of apparently stolen jewelry -- stashed behind a large family portrait during a search of the family home of convicted mob hit man Frank Calabrese Sr.

Authorities said they found recordings of what they believe could be "criminal conversations" that Calabrese taped with mob associates years ago.

They seized several recording devices, such as suction-cup microphones used to tap into telephone conversations, and 10 to 15 used microcassettes -- one of which appears to bear the last name of a convicted Outfit member, agents said.

There also were "handwritten notes and ledgers" that could be records of extortion and gambling activities, authorities said.

In addition, authorities discovered seven loaded firearms they believe had been used in criminal activity because they were wrapped so no fingerprints would be left on them.

In a court filing this afternoon, federal authorities said they want to seize the property to satisfy some $27 million that Calabrese was ordered to pay in forfeiture and restitution following his conviction for a series of gangland slayings and sentence of life imprisonment.

Calabrese's lawyer Joe Lopez said he was surprised to hear about the search at his client's home on Tuesday. He said Calabrese's wife and their two sons, one of whom is in college most of the year, live in the home.

He said the home had been searched on other occasions over the years by the FBI and said he was surprised the items were not uncovered in the past. "Now that this is coming up it leads one to wonder what is really going on in this case,'' said Lopez. "I was surprised, I think everyone was surprised who heard of this."

He said he did not know if family members knew about the items found in the home because he has not had a chance to speak to Calabrese's wife or his client. He said Calabrese does not have access to telephones and is "kept under lock and key."

He said that among the items that were found at the home was at least one recording that he believed was made in 1998 after Calabrese was in custody. He said that Calabrese was in brief custody in 1995 and was released on bond, and then surrendered himself to authorities in 1997 and was in federal custody in Michigan. "He's been in custody since 1997," said Lopez. "I have no idea what those recordings are. For all I know it's Frank Sinatra singing."

He said that the money is going to the government because the government went into the home to search for any assets that would go to the government as part of Calabrese's outstanding forfeiture order. "There is no recourse. The money belongs to them. They can seize assets to satisfy judgment just like any other judgment creditor,'' said Lopez.

Calabrese, 71, was one of the five Outfit associates convicted in the landmark Family Secrets trial that riveted Chicago for weeks with its lurid testimony about 18 decades-old gangland slayings.

The code name for the federal investigation came from the secret, unprecedented cooperation provided against Chicago mob bosses by Calabrese's brother, Nicholas, and his son, Frank Jr. Their testimony peeled back layers of Outfit history as they detailed hits, bombings, extortions and other mayhem by the mob's 26th Street crew.

When he was sentenced to life in prison a year ago, Calabrese denied he was a feared mob hit man responsible for more than a dozen gangland slayings. "I'm not no big shot," said Calabrese, dressed in an orange jumpsuit with a strap holding his glasses on his mostly bald head. "I'm not nothing but a human being, and when you cut my hand, I bleed like everybody else."

A federal judge didn't buy it. Saying he had no doubt Calabrese was responsible for "appalling acts," U.S. District Judge James Zagel sentenced him to life in prison at a hearing marked by emotional testimony from victims' relatives and a heated exchange with his own son.

Another of Calabrese's sons, Kurt, stepped to a lectern to tell Zagel that his father beat him throughout his life. "In short, my father was never a father," said the younger Calabrese, describing him instead as an enforcer who hurled insults as regularly as he threw punches, ashtrays, tools or whatever else was within reach when his temper exploded.

The son asked his father whether he might want to apologize for his conduct. "You better apologize for the lies you're telling," the father barked back in the crowded courtroom. "You were treated like a king for all the things I've done for you."

"You never hit me and never beat me up?" Kurt Calabrese answered incredulously before glaring at his father and stepping from the courtroom a moment later.

In another dramatic courtroom scene, Charlene Moravecek, widow of murder victim Paul Haggerty, yelled at Calabrese for cutting Haggerty's throat and stuffing him in a trunk. Her husband had no connection to the mob, she told Calabrese. "You murdered the wrong person," she said. "That shows how smart you all are."

"God will bless you for what you say," Calabrese replied calmly from the defense table.

"Don't you mock me, ever," Moravecek responded through tears.

In September 2007, the same jury that convicted Calabrese of racketeering conspiracy held him responsible for seven murders: the 1980 shotgun killings of hit man and informant William Dauber and his wife, Charlotte; the 1981 car bombing of trucking executive Michael Cagnoni; and the slayings of hit man John Fecarotta, Outfit associate Michael Albergo, and bar owner Richard Ortiz and his friend Arthur Morawski.

Zagel, using a lower standard of proof than the jury, held Calabrese responsible for six additional murders, including Haggerty's, making him eligible for life imprisonment.

Nicholas Calabrese had testified in gripping detail about how brother Frank beat and strangled many of his victims with a rope before cutting their throats to ensure they were dead. Zagel said it was that family betrayal that stuck with him as he presided over the trial.

"I've never seen a case in which a brother and a son -- and counting today, two sons -- testified against a father," the veteran judge said. "I just want to say that your crimes are unspeakable," Zagel said later.

Allowed to address Zagel before he was sentenced, Calabrese rambled for half an hour about how his family had conspired to steal from him and then falsely blamed him for mob crimes to keep him behind bars. He called his brother a wannabe gangster who collected for Outfit bookmakers. Calabrese didn't deny being a loan shark, but he said his organization never resorted to violence to collect debts.

Cagnoni's widow as well as relatives of Morawski and Ortiz testified about dealing with decades of grief over the violent deaths of their loved ones.

Richard Ortiz's son, Tony, said he was 12 when his father was shot in a car outside his Cicero bar. Ortiz said he ran to the spot where the killing had occurred.

"I remember the crunching of the broken glass under my feet," said Ortiz, who recalled that his father's trademark cigar was still lying on the ground.

"I picked it up and held onto it, knowing it was all I had left of him."

Thanks to Jeff Coen

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U.S. Seeks Nearly $4 Million in Restitution from Family Secret Mobsters

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION
UNITED STATES OF AMERICA )
) No. 02 CR 1050
v. ))
Judge James B. Zagel
FRANK CALABRESE SR., et al. )

MOTION FOR IMPOSITION OF RESTITUTION

This cause comes before the Court on motion of the United States for imposition of
restitution, pursuant to the Mandatory Victims Restitution Act (“MVRA”), in the above-captioned matter against defendants Frank Calabrese Sr., James Marcello, Joseph Lombardo, Paul Schiro, and Anthony Doyle.1 For the reasons discussed below, these defendants are jointly and severally liable for a total restitution amount of $3,909,166.30.2

I. INTRODUCTION

Defendants Frank Calabrese Sr., James Marcello, Joseph “The Clown” Lombardo, Paul “The Indian” Schiro, and Anthony “Twan” Doyle were convicted as a result of their criminal participation in a racketeering enterprise known as the Chicago Outfit. The charged conspiracy involved, among other categories of criminal conduct, the murders of 18 individuals. See Doc. #397 at 9-10. There is little dispute that these murders were part of the conspiracy, and were committed to advance the criminal objectives of the Chicago Outfit.

The jury in its Special Verdict forms, moreover, concluded that James Marcello, Joseph Lombardo, and Frank Calabrese Sr. personally participated in Outfit murders;3 the jury was unable to reach a unanimous verdict on Paul Schiro’s involvement in the Vaci homicide. In addition, Doyle, a long-time Chicago Police Officer and member of the conspiracy since the 1960's, knew full well that the Outfit committed homicides. Doyle in fact was taped discussing that the Outfit killed people with Calabrese Sr.,4 and indeed personally attempted to obstruct the investigation of the Outfit homicide of John Fecarotta. It would therefore be frivolous to argue that it was not foreseeable to defendants that the racketeering conspiracy they joined in the 1950's and 60's, and never withdrew from, involved homicides. Because defendants were convicted for their involvement in a the Outfit’s racketeering conspiracy, because the charged murders advanced the Outfit’s illegal objectives, and because such murders were known and/or foreseeable to the defendants, defendants Calabrese Sr., Marcello, Lombardo, Schiro, and Doyle must be held jointly and severally responsible for restitution to the estates of the murder victims.

II. ARGUMENT

The MVRA defines a “victim” as:

[A] person directly and proximately harmed as a result of the commission of an offense for which restitution may be ordered including, in the case of an offense that involves as an element a scheme, conspiracy, or pattern of criminal activity, any person directly harmed by the defendant's criminal conduct in the course of the scheme, conspiracy, or pattern.

18 U.S.C. § 3663A(a)(2) (2000) (emphasis added); see also 18 U.S.C. § 3663(a)(1)(A) (authorizing restitution for defendants “convicted of an offense under [Title 18]”). If, as here, the victims of the violent crimes are deceased, the Court must order restitution payable to the victims’ estates. 18 U.S.C. § 3663A(a)(1). Moreover, according to 18 U.S.C. § 3664(h):

If the court finds that more than 1 defendant has contributed to the loss of a victim, the court may make each defendant liable for payment of the full amount of restitution or may apportion liability among the defendants to reflect the level of contribution to the victim's loss and economic circumstances of each defendant. There is substantial case law dealing situations where, as here, murder victims’ estates, the victims’ families, or the victims’ dependents, including widows and children, are entitled to receive restitution payments:

• United States v. Douglas, 525 F.3d 225, 253-54 (2d Cir. 2008) (affirming restitution award
for funeral expenses and lost income under 18 U.S.C. § 3663A(b)(3), (4));
• United States v. Serawop, 505 F.3d 1112, 1125, 1128 (10th Cir. 2007) (defendant convicted
of voluntary manslaughter ordered to pay restitution for lost income to estate of three-month
old victim);
• United States v. Cienfuegos, 462 F.3d 1160, 1164 (9th Cir. 2006) (finding the victim’s estate
was entitled to restitution);
• United States v. Oslund, 453 F.3d 1048, 1063 (8th Cir. 2006) (affirming restitution order
awarding lost future income under the MVRA and stating that “[w]hen the crime causes the
death of a victim, the representative of that victim’s estate or a family member may assume
the victim’s rights”) (citing 18 U.S.C. § 3663A(a)(2));
• United States v. Pizzichiello, 272 F.3d 1232, 1240-41 (9th Cir. 2001) (victim’s surviving
family members properly awarded lost income, funeral, and travel expenses under the
MVRA);
• United States v. Checora, 175 F.3d 782, 795 (10th Cir. 1999) (defendants convicted of voluntary manslaughter ordered to pay restitution for the support of the victim’s minor children that were directly and proximately harmed as a result of the victim’s death);
• United States v. Razo-Leora, 961 F.2d 1140, 1146 (5th Cir. 1992) (defendants convicted of charges related to a murder-for-hire conspiracy ordered to pay restitution for lost income to the murder victim’s widow);
• United States v. Jackson, 978 F.2d 903, 915 (5th Cir. 1992 )(“[T]he district court has the authority to order the defendants to pay the victims’ estates an amount equal to the victims’ lost income . . . .”);
• United States v. Roach, 2008 WL 163569, at *3-5, 9 (W.D.N.C. Jan. 16, 2008) (restitution awarded for lost income based on reasonable assumptions that murder victim would work 40 hours per week for 50 weeks per year until age 65 at state minimum wage and receive two percent increase per year);
• United States v. Visinaiz, 344 F. Supp.2d 1310, 1312-13 (D. Utah 2004) (MVRA requires restitution for lost income in homicide cases; no ex post facto implication); and
• United States v. Bedonie, 317 F. Supp.2d 1285, 1288-90 (D. Utah 2004), rev’d on other grounds, 413 F.3d 1126 (10th Cir. 2005) (court appointed an expert to calculate lost income who made reasonable and reliable race- and sex-neutral projections of future lost income without any discount for possible “consumption” of income by the victims).

In a conspiracy such as this, co-conspirators must be held jointly and severally liable for the total foreseeable restitution amount. See generally United States v. Rand, 403 F.3d 489, 495 (7th Cir. 2005) (“[Defendant] may be held responsible for losses caused by the foreseeable acts of his co-conspirators. Co-conspirators generally are jointly and severally liable for injuries caused by the conspiracy . . . .”), citing United States v. Martin, 195 F.3d 961, 968-69 (7th Cir. 1999); United States v. Amato, 540 F.3d 153, 163 (2nd Cir. 2008) (holding that it was “within the district court's discretion to make [defendant] jointly and severally liable for entire loss that [victim] suffered as a result of conspiracy even while apportioning liability of some of [defendant's] co-conspirators.”). The evidence at trial established the proposition, understood well by the co-conspirators, that an “authorized”/”okayed” murder was a powerful weapon in the Outfit’s punishment and control arsenal. In addition, the recorded February 11 and 12, 1962, discussions attached hereto as Government Exhibit A graphically highlight the Outfit’s long-standing use of murder to achieve its criminal objectives. During the two surreptitiously recorded Miami, Florida, meetings between Jack Cerone, Dave Yarras, Pete LNU, James Vincent “Turk” Torello, and others, the men discuss various Outfit murders (indeed, the men were assembled in Florida to kill union boss Frank Esposito). The foreseeability prong of the analysis therefore strongly favors a full restitution award.



Turning to what evidence the Court can consider in its effort to determine the total loss, the MVRA specifically provides for restitution to “the victim for income lost by such victim as a result of the offense,” and states that the restitution amount shall represent “the full amount” of the victim’s loss. 18 U.S.C. § 3663A(b)(2)(C); § 3664(f)(1)(A); see also Roach, 2008 WL 163569, at *8-9 (restitution awarded for lost income based on reasonable assumptions that murder victim would work 40 hours per week for 50 weeks per year until age 65 at state minimum wage and receive two percent increase per year). Applied to the present case, the inquiry thus centers on approximating the future income of the above-described murder victims. Cienfuegos, 462 F.3d at 1164 (“Any victim suffering bodily injury or death necessarily incurs the income lost only after the injury, i.e. in the future, as a consequence of the defendant’s violent act.”).5 This income figure must include prejudgment interest through the date of sentencing “to make up for the loss of the funds’ capacity to grow.” United States v. Shepard, 269 F.3d 884, 886 (7th Cir. 2001) (relying on 18 U.S.C. § 3663A(b)(1)(B)(i)(II) and In re Oil Spill by the Amoco Cadiz, 954 F.2d 1279, 1311-35 (7th Cir.1992)).

“The determination of appropriate restitution is by nature an inexact science.” United States v. Williams, 292 F.3d 681, 688 (10th Cir. 2002). Though not required to do so, the government has engaged Financial Forensic Expert and Certified Public Accountant Michael D. Pakter to prepare a report calculating the lost estimated earning capacity of the identified murder victims. See generally Cienfuegos, 462 F.3d at 1169 (requiring non-speculative basis for calculations). Michael D. Pakter’s twenty-two page report is attached hereto as Government Exhibit B.

III. CONCLUSION

The calculations set forth in the attached report are based on conservative assumptions,6 see Government Exhibit B at 16-18, and constitute the best available evidence of the proper restitution amount under the MVRA. The government has therefore sustained its burden of demonstrating by a preponderance of the evidence the losses sustained by the victims, and has established that Outfit murders were at a minimum reasonably foreseeable to Calabrese Sr., James Marcello, Lombardo, Schiro, and Doyle. See generally 18 U.S.C. § 3664(e) (Court resolves restitution disputes by preponderance of the evidence standard); Razo-Leora, 961 F.2d at 1146 (“The prosecution has the burden of demonstrating the amount of loss sustained by the victim and proving this loss by a preponderance of the evidence.”); see also Doc. #839 (government’s summary of trial evidence presented against each defendant). The government therefore asks this Court to hold defendants Calabrese Sr., James Marcello, Joseph Lombardo, Paul Schiro, and Anthony Doyle jointly and severally liable for restitution in the amount of $3,909,166.30. See Government Exhibit B at 7.

Respectfully submitted,
PATRICK J. FITZGERALD
United States Attorney
By: s/ T. Markus Funk
T. MARKUS FUNK
Assistant U.S. Attorney
219 South Dearborn, Room 500
Chicago, Illinois 60604
(312) 886-7635

1 Defendant Nicholas Calabrese at trial admitted his involvement in a number of Outfit murders. That testimony, however, was given pursuant to the Court’s grant of immunity. Tr. 2299-2300. Moreover, with the exception of the murder of John Fecarotta, the information provided by Nicholas Calabrese to law enforcement was at all times proffer-protected. See Tr. 2870. The government is restricting the instant restitution request to victims who were not lifelong associates/members of the Chicago Outfit; the Fecarotta homicide is therefore not part of the government’s calculations, and accordingly no restitution is sought as to Nicholas Calabrese.

2 This restitution amount is separate and distinct from defendants’ forfeiture liability. See United States v. Webber, 536 F.3d 584, 602-03 (7th Cir. 2008) (“Forfeiture and restitution are distinct remedies.”).

3 Frank Calabrese Sr. was found to have participated in the murder of Michael Albergo, William Dauber, Charlotte Dauber, Michael Cagnoni, Richard Ortiz, Arthur Morwawki, and John Fecarotta; James Marcello was found to have participated in the murders of Anthony Spilotro and Michael Spilotro; and Joseph Lombardo was found to have participated in the murder Daniel Seifert.

4 See 2-19-2000 Transcript (Doyle telling Calabrese Sr. how James LaPietra and John “Apes” Monteleone without authorization beat another mob associate and as a result were almost ordered killed by Outfit Boss “Skid” Caruso; Doyle: “Had it been where the Old Man was still alive, they’d of went.”)

5 Indirect loss or consequential damages should not be included in any restitution order; only direct, actual losses may be awarded. United States v. Frith, 461 F.3d 914, 921 (7th Cir. 2006), citing 18 U.S.C. § 3663A(a)(2); United States v. George, 403 F.3d 470, 474 (7th Cir. 2005) (“‘Loss’ means direct injury, not consequential damages.”). On the other hand, no expenses for consumption should be deducted from any potential claim for lost future wages; such deductions are not permissible under the MVRA, which provides only for an award of “income lost,” not net income lost. 18 U.S.C. § 3663A(b)(2)(C). Additionally, restitution must be ordered for necessary funeral and related services. 18 U.S.C. § 3663A(b)(3).

6 The government reserves the right to submit an adjusted report if and when the government receives additional/revised income or other information for the victims.

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Co-op Exec Said to Have Paid Mob to Avoid Union Trouble

Friends of ours: Tony Accardo, Frank Calabrese Sr., Nick Calabrese, Michael Spano, Rocky Infelice
Friends of mine: Michael Cagnoni

The head of a cooperative association specializing in shipping fruits and vegetables was also delivering a briefcase stuffed with cash to mob figures before his murder, a witness testified Thursday.

"Yes, I believe that was one of the gentlemen," security expert Fred Pavlich told the trial of five alleged mob members after studying an FBI surveillance photo of the late Chicago mob boss Tony Accardo.

Pavlich said he resigned as head of security for the shipping cooperative that Michael Cagnoni headed only weeks before a powerful bomb erupted under the driver's seat of Cagnoni's Mercedes on June 24, 1981. Pavlich said the night before he resigned, he got a threatening phone call that didn't mention Cagnoni by name but still persuaded him that it would be prudent to give up his post as the association's security director.

Federal prosecutors say convicted loan shark Frank Calabrese Sr. was responsible for the Cagnoni murder. Calabrese's brother, Nicholas, the government's star witness, described how a bomb was planted and detonated by an automatic radio-controlled device. An eyewitness, who was at one time a U.S. Marines explosives expert, testified Wednesday that the blast sent huge hunks of metal flying through the air, produced a giant cloud of smoke and tore Cagnoni's body in half.

Calabrese, 69, is among five men charged with taking part in a racketeering conspiracy that included extortion of "street tax" from businesses as well as illegal gambling, loan sharking and 18 murders.

Pavlich testified Cagnoni was a brilliant shipping executive who figured out a way of setting up a cooperative association consisting of Chicago and New York grocers and California produce growers. He said thousands of trucks were going back and forth between Chicago and the West Coast every week aboard railroad cars with the association's shipments.

On arriving in the Chicago area, some trucks went to local grocers while others went on to New York to supply produce to supermarkets there. But every week Cagnoni also carried a briefcase stuffed with thousands of dollars in cash to Flash Trucking, a suburban Cicero company that made most of his Chicago-area deliveries, Pavlich testified.

Flash was owned by brothers, Michael and Paul Spano. Michael Spano is serving a 12-year prison sentence for his 2002 conviction for helping former Cicero town president Betty Loren-Maltese swindle the suburb -- long plagued by mob influence -- out of millions of dollars in insurance money.

Prosecutors say that when longtime Cicero mob boss Rocky Infelice was sent to prison in the early 1990s he dubbed Michael Spano his successor.

Pavlich said sometimes money was delivered to a meeting in a Rosemont hotel that Cagnoni and a number of other men attended.

"I of course kept my distance and went downstairs as I was told to do," Pavlich said. But he identified an FBI surveillance photograph of Accardo, who for decades was one of the most powerful mob bosses in the country, as that of one of the men on hand for at least one meeting. "I believe Rocky was there every time I was there," the former security director said, speaking of Infelice.

Calabrese attorney Joseph Lopez asked Pavlich whether he made the payments to avoid union problems. Pavlich said that as he understood it, that was one of the reasons.

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