`Clown' Missing from Mob: Joseph Lombardo Vanishes

For more than 50 years, Joseph Lombardo has called the West Town neighborhood his home--at least, whenever he wasn't in prison. An early riser, he was often seen since his 1992 release from prison riding his bicycle with a small cigar firmly planted between his lips. But when federal agents went to the 2200 block of West Ohio Street Monday morning to pick him up, Lombardo was nowhere to be found.

Lombardo was one of just two of the indicted members of the mob not under arrest when the Operation Family Secrets charges were announced Monday afternoon.

Lombardo, 76, has known he has been a target for months. His attorney, Rick Halprin, has said Lombardo was being looked at as a suspect in the 1974 slaying of Daniel Seifert. Seifert was a Bensenville businessman scheduled to testify against Lombardo and others in a Teamster pension fund fraud case.

Halprin has said Lombardo was at a Chicago police station at the time of the slaying. "We will have to wait and see," Halprin said of whether his client would surrender.

Halprin doubted Lombardo would be wearing the famous newspaper mask he made after a 1981 court appearance. It was that goofiness, and Lombardo's flair for the theatrical, that led police to give him the nickname "The Clown."

The indictment does not spell out what role Lombardo allegedly played in the killings. "It is pitifully sketchy," said Halprin.

Lombardo has done two stretches in federal prison. He was released in 1992 after serving 10 years on two separate federal convictions. He was convicted of conspiring to bribe U.S. Sen. Howard Cannon of Nevada for help in defeating a trucking deregulation bill and convicted in a mob scheme to skim $2 million from a Las Vegas casino.

Robert Fuesel, who worked organized crime for 28 years for the Internal Revenue Service, said Lombardo was not only the chairman of the board, but also an enforcer. He said he once surrounded Lombardo's house with 10 agents as he hid inside to avoid being served with a subpoena. Fuesel told Lombardo's wife that the agents were not going to leave, and Lombardo came out a half hour later and accepted the subpoena. But Monday morning, Lombardo was nowhere to be found.

Among federal indictments announced Monday were charges related to 18 unsolved murders and one attempted murder between 1970 and 1986.

1 MICHAEL FRANK "HAMBONE" ALBERGO

Date of murder: August 1970

How he was killed: Disappeared

Motive for murder: Albergo was a mob enforcer who vanished after being charged in connection with a loan-shark operation.

In 2003, FBI agents excavated a parking lot near U.S. Cellular Field on a tip that his bones were buried there.

2 DANIEL SEIFERT

Date: Sept. 27, 1974

How killed: Seifert was killed with shotgun blasts ouside his Bensenville factory.

Motive: Seifert was scheduled to testify against Outfit leaders accused of defrauding the Teamsters' pension fund.

3 PAUL HAGGERTY

Date: June 24, 1976 (in Chicago)

How killed: Not available

Motive: Not available

4 HENRY COSENTINO

Date: March 15, 1977

How killed: His body was found in the trunk of a car at the Chicago auto pound.

He had been killed by blunt force to the neck.

Motive: Not available

5 JOHN MENDELL

Date: Jan. 16, 1978

How killed: He was found dead in the trunk of his car in Chicago after being tortured and having his throat slit.

Motive: He was wanted by police following the murder of a member of a burglary ring.

6/7 DONALD RENNO / VINCENT MORETTI

Date: Jan. 31, 1978

How killed: Both men were found in the back of Renno's car in Cicero with their throats cut.

Motive: Police suspect Moretti's burglary ring was fencing goods in Las Vegas against the mob's wishes.

8/9 WILLIAM DAUBER AND CHARLOTTE DAUBER

Date: July 2, 1980

How killed: The Daubers were gunned down as they drove on a rural road in Will County.

Motive: William Dauber, a suspected mob killer, had been arrested on federal drug charges and Outfit leaders were afraid he'd turn informant.

10 WILLIAM "BUTCH" PETROCELLI

Date: Dec. 30, 1980

How killed: He was found in the back seat of his car in Cicero with his throat slashed and his face burned.

Motive: Outfit leaders reportedly suspected Petrocelli of skimming collection money and shaking down robbers without permission.

11 MICHAEL CAGNONI

Date: June 24, 1981

How killed: A radio-controlled bomb beneath his car exploded as he drove on a tollway ramp at Ogden Avenue and I-294 in DuPage County.

Motive: Sources said he supervised the mob's produce hauling operations and was suspected of holding back some of the profits.

12 NICHOLAS D'ANDREA

Date: Sept. 13, 1981

How killed: He was found murdered in the trunk of his car in Chicago Heights.

Motive: Mob associates suspect he was involved in arranging a hit on mob figure Alfred Pilotto.

13/14 RICHARD D. ORTIZ / ARTHUR MORAWSKI

Date: July 23, 1983

How killed: Both men were shot to death while sitting in a car outside a Cicero bar owned by Ortiz.

Motive: Not available

15 EMIL VACI

Date: June 7, 1986

How killed: He was found shot in the head in a drainage ditch in Phoenix.

Motive: Weeks before his death he appeared before a grand jury investigating the Spilotro brothers in Las Vegas.

16/17 ANTHONY SPILOTRO AND MICHAEL SPILOTRO.

Date: June 14, 1986

How killed: The brothers were beaten, and buried in a shallow grave in a northwest Indiana cornfield.

Motive: Mob bosses allegedly were not happy with how Anthony Spilotro, an Outfit enforcer, was running operations in Las Vegas.

18 JOHN FECAROTTA

Date: Sept. 14, 1986

How killed: Fecarotta, a longtime mob muscleman, was gunned down outside a bingo hall on Belmont Avenue.

Motive: An informant later told federal agents Fecarotta was killed for botching the burials of the Spilotros.

Note: Charges also include the attempted murder of an unnamed victim in Lake County on April 24, 1982.

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Kudos for Detective Robert Moon's Work

When U.S. Atty. Patrick Fitzgerald's office singled out the late Detective Robert Moon for praise during Monday's announcement of sweeping indictments against the mob, the investigator's old friends from the Chicago Police Department were pleased but not surprised.

For 18 years Moon, who died last November, was an awe-inspiring weapon in law enforcement's fight against organized crime in Chicago, his friends and colleagues said. He was a "walking encyclopedia of everything that went on in the mob," said Harrison Area Detective Cmdr. Steve Peterson, who worked with Moon on the federal organized crime task force. "Nobody came even close to what he did in those cases."

Moon died of cancer Nov. 30, months before the case he had worked on with many other detectives and agents for years came to fruition.

His absence was felt by many who were involved in the massive investigation. Prosecutors extended "special thanks" to Moon in Monday's press release. "The investigation would not have been successful without Detective Moon's hard work and dedication," it said.

Moon first began to build his knowledge of the mob in Chicago in the 1980s when he was assigned to a federal task force working on auto theft cases, Peterson said.

Moon was a "bulldog and tenacious, and willing to help with anything," said Chicago Police Deputy Supt. Hiram Grau, who now heads the Chicago Police Department's investigative units.

Thanks to David Heinzmann

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Mob Charges Tell a Story, but More isn't Told: How can the Outfit survive without the help of crooked politicians, judges and cops?

How could the Chicago Outfit prosper and survive without the help of corrupt local police, politicians and judges? U.S. Atty. Patrick Fitzgerald didn't answer me Monday.

"All I'll say is that the indictment alleges that the Outfit, as part of its method of doing business, corrupted law enforcement," Fitzgerald said in his news conference about the FBI's Operation Family Secrets, which led to indictment of mob bosses allegedly responsible for 18 mob hits and the indictment of two cops.

"The indictment doesn't say anything beyond that, and I'm not going to comment about that," Fitzgerald said.

Afterward, I ran into a man who knows him well. "Why did you ask him that? You know he can't answer. It wasn't in the indictment.

"Do you really need an answer to that one?" he asked.

The investigation started when Outfit hit man Nick Calabrese thought he was a target for murder and began talking to the FBI about unsolved hits, taking them on tours around the city, including to a parking lot at Sox Park where enforcer Michael "Bones" Albergo was dumped in 1970.

Fitzgerald wasn't dodging my question. He could only discuss the indictment. Surely, he knows the answer. You do too.

It is why former U.S. Sen. Peter Fitzgerald (no relation) was right to bring Patrick Fitzgerald here, when the bosses of the Illinois political combine and their simpering mouthpieces called the senator crazy for insisting we needed an independent outsider as the federal hammer in Chicago.

With all the praise being larded on City Hall lately, consider this: The Hired Truck scandal at City Hall was crawling with Outfit-connected truckers from the 11th Ward. And the Duffs, some of whom boasted of their Outfit connections, drank with Mayor Richard Daley at the Como Inn. Then, for a nightcap, they got $100 million in affirmative-action contracts.

Mob politicians have been pinched. The late Alderman Fred Roti (1st) went to prison. Roti's boss, mob fixer Pat Marcy, died before trial. The mayor broke up the old 1st Ward, called it the 42nd Ward, but that didn't fool anybody. The Outfit political office simply moved West.

Other experts insist there is no Outfit in Chicago. One was the late FBI chief J. Edgar Hoover. He liked to win at the track yet refused to believe in the existence of the Chicago Outfit.

Recently, other politicians insisted the Outfit is dead. One is State Senator Jimmy DeLeo (D-Chicago), sage adviser to Govenor Rod Blagojevich. When he started in politics, DeLeo once kept tens of thousands of dollars in his freezer. He probably didn't want it to spoil. "What does that mean, `mob associated?'" DeLeo asked rhetorically, in a 2001 Sun-Times story. "In the year 2001, is there really a mob in Chicago?"

Another political expert is state Rep. Angelo "Skip" Saviano (R-Elmwood Park), who echoed DeLeo. "The Italian Mafia is gone," Saviano was quoted as saying. "I don't see it happening around here." He probably meant on Grand Avenue in Elmwood Park. Outfit? What Outfit?

Then there are the county judges, such as the late Frank Wilson and others, who fixed Outfit murder cases. We've had more than 1,000 mob murders here since the 1920s, and few were solved. That can't happen without the judges.

Let's not forget the police brass. Former Chicago Police Chief of Detectives William Hanhardt was sentenced a few years ago for running an Outfit sanctioned nationwide jewelry theft ring, along with his colleague, the reputed hit man Paulie "The Indian" Schiro.

On Tuesday, Schiro was also indicted as part of the FBI's Family Secrets investigation. Other crooked Outfit-connected cops in other investigations include a former lieutenant in the Chicago Police Department's organized crime division who helped another top cop, James O'Grady, become Cook County sheriff in 1986. The Outfit-buster was James Dvorak, known as "The Bohemian," who was made undersheriff and was later convicted of taking bribes from then-Outfit boss Ernest "Rocco" Infelice to protect gambling.

Lt. James Keating, of the Cook County sheriff's office, was sentenced to 40 years on federal racketeering charges. He, like Hanhardt, had been smooched by the media as a hero cop while on the force. Later, Keating was found to have killed the investigation of the 1978 murders of thieves Donald Renno and Vincent Moretti, in Cicero, according to a 1989 Tribune review of the case.

Renno and Moretti were suspected of burglarizing the home of mob boss Anthony "Joe Batters" Accardo. The murders of Moretti and Renno were solved, according to Monday's indictments.

When I first wrote about Nick Calabrese in February 2003, I told you we'd wait for indictments, and they arrived Monday.

You already know the general outline. But the story isn't over. The main question hasn't been answered, specifically, with names on indictments. How can the Outfit survive without the help of crooked politicians, judges and cops?

Thanks to John Kass

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With Operation Family Secrets, Prosecutors Boast of 'a Hit on the Mob'

In one of the biggest strikes in Chicago's history against the mob, federal authorities today began rounding up alleged organized crime figures—including outfit boss Joseph "The Clown" Lombardo—in connection with a string of 18 unsolved murders and one attempted murder dating back to 1970.

In the culmination of what officials dubbed "Operation Family Secrets," a federal racketing indictment unsealed this morning took direct aim at Chicago's three dominant mob chapters: The Grand Avenue crew of Lombardo; the Melrose Park crew of brothers Jimmy Marcello and Michael Marcello, and the 26th Street crew of imprisoned mobsters Frank Calabrese Sr. and his brother, Nicholas Calabrese, who has turned mob informant.

Lombardo, 75, of Chicago, remains at large, authorities said. Lombardo previously was convicted in U.S. District Court in Chicago in another major mob investigation. He was released from prison in 1992. Another suspect was found dead of apparent natural causes— along with a substantial amount of cash and checks—in a Kane County hotel room, while a third is being sought in Florida. Everyone else named in the indictment is either under arrest or about to be arrested.

"This unprecedented indictment put a `hit' on the mob," said U.S. Atty. Patrick Fitzgerald. "It is remarkable for both the breadth of the murders charged and for naming the entire Chicago Outfit as a criminal enterprise under the anti-racketeering law."

"The outfit maintained hidden interest in businesses, maintained hidden control of labor unions, corrupted law enforcement and acquired explosives," Fitzgerald said.

Fourteen suspects were named in the sweeping indictment, discussed at length by authorities at a news conference downtown this afternoon. The unsolved murders include those of the mob's top man in Las Vegas, Tony "The Ant" Spilotro, and his brother, Michael Spilotro, according to the nine-count indictment. Tony Spilotro, 48, a Chicago mob enforcer, ruled Las Vegas in the 1970s and early 1980s. Joe Pesci played a character based on Tony Spilotro in the 1995 movie "Casino.'' Spilotro and his brother, 41, were last seen alive on June 14, 1986. Their badly beaten bodies were found buried in an Indiana cornfield eight days later.

Eleven defendants formed the backbone of the Chicago mob by allegedly participating in illegal conduct such as extorting "street taxes" from businesses to allow them to operate; running sports betting and video poker machines; loan sharking; extortion; threats and violence.

The indictment seeks forfeiture of $10 million in alleged racketeering proceeds from the 11 men and the Marcello brothers' business, M&M Amusement. Three suspects were not indicted for racketeering conspiracy, but instead face charges of illegal gambling or tax fraud conspiracy.

The mob of Al Capone and Frank Nitti has long been entrenched in Chicago with its tentacles reaching into hallways of unions, casinos and police departments. In fact, the indictment alleges that two retired Chicago police officers aided the outfit

Retired officer Anthony Doyle, known as "Twan," is accused of being a mob mole inside the police department. He allegedly worked for Frank Calabrese Sr., keeping him informed of law enforcement's investigation into the murder of John Fecarotta, according to the indictment.

The other retired officer, Michael Ricci, is accused of working for the mob while he was a Cook County Sheriff's officer, passing messages from the jailed Frank Calabrese Sr. to other members of the mob. He is accused of lying to the FBI on behalf of the mob.

After a lengthy investigation, FBI and the IRS agents today began arresting the 14 suspects in Arizona, Florida and Illinois.

The indictment gives chapter and verse on the structure and chain of the mob's chain of command and how the crews carried out its criminal activities. The crews are known by their geographic locations and included Grand Avenue, Melrose Park, 26th Street, Elmwood Park, Rush Street and Chicago Heights.

The nine-count indictment was returned by a federal grand jury Thursday and unsealed today. The investigation started with 18 previously unsolved murders and one attempted murder between 1970 and 1986, all in the Chicago area except for one slaying in Arizona.

"What makes this indictment significant to us is for the first time we have the heads of multiple crews indicted in one indictment," said Robert Grant, special agent in charge of the FBI's Chicago office.

Referring to the mob as "LCN," for La Costa Nostra, Grant said, "This is the first indictment that I can recall that involved so many murders, which really gets at the heart of what LCN is, which is a bunch of murderous thugs."

Today's arrests, he added, will have a "significant impact" on organized crime by cutting its numbers in the region.

"From everything we've learned, the LCN has been reduced to six crews from four," Grant said. "We now believe there are four crews operating in the Chicago area—the Elmwood Park crew, the South Side 26th Street crew, the Grand Avenue crew and the Melrose Park-Cicero crew. Current membership from what we can estimate is over 100 members and associates."

Arrested in Illinois were:

James Marcello, 63, of Lombard, and his brother Michael Marcello, 55, of Schaumburg.

Nicholas Ferriola, 29, of Westchester.

Joseph Venezia, 62, of Hillside.

Thomas Johnson, 49, of Willow Springs, and his nephew Dennis Johnson, 34, of Lombard.

The defendants were expected to appear this afternoon before U.S. District Judge James B. Zagel, the U.S. attorney's office said.

Another defendant, Frank Saladino, of 59, was found dead of apparent natural causes in a hotel room in Hampshire, in rural Kane County. About $25,000 in cash and $70,000 in checks were found with the man's body, officials said.

Ricci, 75, is currently living in Streamwood and was expected to voluntarily surrender to the FBI. Doyle, 60, of Wickenburg, Ariz., was arrested in Arizona.

Frank "The German" Schweihs, 75, of Dania, Fla., and formerly of Chicago, is at large and being sought in Florida, authorities said.

Three other defendants—Frank Calabrese Sr., 68, of Oak Brook, his brother Nicholas W. Calabrese, 62, of Chicago and Paul "The Indian" Schiro, 67, of Phoenix—already were in federal custody.

Eleven of the defendants were charged with conspiracy, including conspiracy to commit murder and attempted murder, in connection with illicit organized crime activities including loan sharking and bookmaking.

All 11 also face charges including obstructing justice, extorting "street taxes" from businesses, sports bookmaking, operating video gambling machines, making "juice loans" charging ruinous interest rates and using extortion, threats, violence and intimidation to collect on those loans.

Thanks to Todd Lightly

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Dominick "Tootsie" Palermo, Reputed ex-Mob Leader for South Suburbs Dies

Dominick "Tootsie" Palermo, the reputed organized crime boss of the south suburbs until his 1991 conviction for extorting protection money from northwest Indiana bookmakers, has died in a federal prison hospital. The former resident of South Holland and Orland Park was 88.

Palermo, who also was suspected of having a role in the 1986 murders of crime syndicate figure Anthony Spilotro and his brother, Michael Spilotro, died Friday in the Federal Prison Medical Center in Rochester, Minn., a spokesman said Tuesday. The cause of death was not disclosed.

Palermo and five members of his reputed crime family were convicted Aug. 16, 1991 by a federal jury in Hammond of racketeering charges arising from a scheme to extort protection money from vice and gambling operators in northwest Indiana. He was sentenced in 1992 to 32 years and 3 months in prison and fined $250,000. Palermo was due to be released from prison Aug. 10, the medical center spokesman said.

John Hoehner, the U.S. attorney in Hammond at the time, predicted Palermo's conviction would have "a substantial impact on organized crime in northwest Indiana."

In fact, syndicate crime has diminished considerably in the region south and southeast of Chicago, federal authorities and organized-crime observers said. But the reduction, they said, probably has more to do with changes in society than with the imprisonment of many people who had controlled vice in the area,

"The world has changed from the 1950s and 1960s when organized crime still thrived," said John Binder, a professor at the University of Illinois at Chicago who wrote "The Chicago Outfit (IL) (Images of America)," a book detailing the history of the crime syndicate.

"Gambling, which was the lifeblood of the mob's operations in the south suburbs, has been legalized as a result of the riverboat casinos," Binder said. "Furthermore, people have become a lot more knowledgeable about organized crime. Consequently, they no longer put up with mobsters infiltrating local labor unions or operating in their communities the way they used to."

Not much was known publicly about Palermo's activities until his trial and sentencing. "The guys that controlled the south suburbs kept a low profile because they had everything locked up in their neck of the woods," Binder said.

Federal authorities said Palermo, who worked as a Laborers International Union field representative, became the reputed head of the south suburban mob after former rackets boss Albert Tocco, a one-time Chicago Heights sausage-maker, was convicted in 1989 of ruling a crime family through acts of murder and extortion.

Attorney Kevin Milner, who represented Palermo during his 1991 trial, remembered his client Tuesday as "a grandfatherly type of guy, soft-spoken and friendly." But prosecutors saw Palermo, then in his 70s, as something else, describing him as a "top mob capo" who, along with his underlings, employed terror tactics, including threats of bodily harm and arson, to collect "street taxes," or protection money, from vice and illegal gambling operators.

At Palermo's trial, 11 people testified that they paid the money rather than risk harm to themselves, their families or their businesses. And two FBI agents who developed evidence against Palermo's shakedown operation testified that they secretly recorded the group regularly counting extortion money in a Calumet City restaurant.

Among those convicted with Palermo in 1991 was Nick Guzzino of Chicago Heights, whom the FBI identified as Palermo's underboss in the south suburbs. Guzzino, who was 50 when he was convicted, was sentenced to 39 years and 6 months in prison and fined $185,000.

Guzzino, Palermo and Tocco, who is serving a 200-year prison term, were suspected of taking part in the Spilotro murders after Tocco's estranged wife, Betty, testified in 1989 that her husband told her that he and the other two were involved.

At the time of their deaths in 1986, Anthony Spilotro, 48, was the reputed overseer of the Chicago mob's Las Vegas gambling operations and was awaiting trial on racketeering charges in Nevada. His brother, Michael, 41, was under indictment in Chicago on federal extortion charges. Their bodies were unearthed in a Newton County, Ind., cornfield.

The murders remain unsolved.

Thanks to Stanley Ziemba

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