The Chicago Syndicate
The Mission Impossible Backpack

Tuesday, January 03, 2006

Mob Contract Under Review at UIC

Friends of ours: John "No Nose" DiFronzo, Peter DiFronzo

University of Illinois at Chicago administrators are taking a fresh look at a longtime snowplowing contract their institution has held with a construction firm that authorities say is controlled by two "made" members of the Chicago mob. The company, D&P Construction, has been paid nearly $500,000 by the public university during the past two years. D&P was widely publicized as linked to organized crime in 2001, when the Illinois Gaming Board took issue with it hauling trash from the site of what was supposed to become a Rosemont casino.

A recent report by a board hearing officer cited an internal FBI memo from 2003 that stated that D&P "obtained contracts through illegal payoffs or intimidation," though UIC officials said they've never witnessed such acts since the firm began plowing snow at their Near West Side campus in the late 1990s.

D&P, on paper is run by Josephine DiFronzo, whose name appears on the recently extended contract that D&P holds with UIC. But authorities contend the firm is "controlled" by her husband, Peter, and his brother, John. Law enforcement documents identify John "No Nose" DiFronzo, 76, as one of the three top organized crime leaders in the city. Peter DiFronzo, 72, allegedly is his chief lieutenant.

Thomas Hardy, communications chief for all University of Illinois campuses, said the D&P contract is now under review after inquiries by the Chicago Sun-Times. University officials initially told the newspaper they saw no reason to review the contract, but Hardy said Sunday that the university's vice chancellor for administrative services, Joseph Muscarella, will oversee a review that's set to begin this week. "We are reviewing the contract to ensure all procedures were followed properly and that the contractor remains a qualified bidder under state law," Hardy said. "You've raised a lot of questions, so we want to get to the bottom of it."

Josephine and Peter DiFronzo did not return telephone calls seeking comment.

The university paid D&P $203,574 in its 2004-2005 budget year and $267,740 in 2003-2004 to augment its own in-house snow-removing crews. In addition, UIC paid D&P about $10,000 each of those years to deliver mulch to the campus.

D&P is known more as a top waste-hauler in the Chicago area than for plowing snow. UIC officials asked six companies to bid on the snowplowing contract in 2002, but only D&P submitted a bid. (This is a common technique that was used in the past by the Mob. They would divide the work up among themselves first and then only the choosen company would bid on the contract.)

Thanks to Chris Fusco.

Saturday, December 31, 2005

Junior to Face Jury Solo

Friends of ours: John Gotti Jr., Michael Yannotti, John Gotti

When John Gotti Jr. goes on trial again in February, he'll face the jury alone. A federal judge yesterday acquitted Gotti co-defendant Michael Yannotti on charges he participated in a botched kidnapping plot against radio host Curtis Sliwa in 1992. A jury previously acquitted Yannotti of attempted murder for allegedly shooting Sliwa as he and another Gambino posing as a cabby tried to snatch him in a yellow taxi.

In a 26-page written opinion, Manhattan Federal Judge Shira Scheindlin sided with defense lawyer Diarmuid White, finding that Yannotti could not be retried on the remaining charge based on technical legal grounds stemming from the jury's vote. Yannotti will instead proceed directly to sentencing as the jury convicted him of additional racketeering conspiracy charges that could land him behind bars for 20 years.

Gotti, the 41-year-old son of the late Gambino boss John "Dapper Don" Gotti, still stands accused of ordering and orchestrating the kidnapping of Sliwa after the jury delivered a hung verdict on that charge.

On the Lighter Side

Because some kid sent this to me and it made me chuckle, I present to you the Real Internet Mafia .

My favorite was the mention of a $10,000 bill. Who knew those existed?
I hope his Mom lets him finish the site soon. :-)

Sam "Momo" Giancana Index

Sam Giancana was a famous and powerful mafioso and boss of the Chicago Outfit from 1957-66.Sam Giancana Originally nicknamed "Mooney", when he became Boss, Giancana shortened it to "Momo", which stood for "More Money". Born in Chicago's "Little Italy," Sam Giancana was arrested more than 70 times in his life, but was imprisoned only twice.

Giancana started his criminal career in the 1920s on Chicago's West Side as a member of a violent street gang called "The 42s". He soon developed a reputation for being an excellent getaway driver, high earner and vicious killer. These qualities got him noticed by the successor to Al Capone, Frank "The Enforcer" Nitti. It is widely reputed Giancana and other mobsters had been recruited by the CIA during the waning days of the Eisenhower administration to assassinate Cuban dictator Fidel Castro, who had taken power in January 1959. Giancana was himself reported to have said that the CIA and the Mafia are "different sides of the same coin." It is also widely reputed that at roughly the same time Joseph P. Kennedy recruited Giancana to help mobilize labor union voter and financial support behind his son, Massachusetts Senator John F. Kennedy in the latter's bid to secure the Democratic nomination for the 1960 Presidential election.

There are also strong suggestions that during his presidency, JFK maintained close links with Giancana and the Chicago Mafia as he continued the practice of covertly using the Mafia in a bid to assassinate Castro. The two men also shared the same lover, Los Angeles socialite Judith Campbell who also apparently acted as a courier between the two men, passing money and information.

Giancana was forced to step down as Mafia boss in 1966 because of his greed (refusing to share the profits of his Latin American gambling operations--a major violation of Mafia protocol) excessively high-profile personal behavior (openly associating with various popular entertainers like singers Phyllis McGuire and Frank Sinatra) and serious legal problems, serious enough to have had the FBI place Giancana under close, intense and relentless surveillance. In response to these setbacks, the dethroned Giancana spent the next seven years (1967-74) in exile in Cuernavaca, Mexico until the Mexican government (under pressure from the US Justice Department) had him deported to the United States. Returning to Chicago, Giancana was assassinated on 19 June 1975 in the basement of his home in Oak Park, Illinois (which had been under close FBI and Chicago Police observation) shortly before he was to appear before a Senate committee investigating CIA and Mafia links to plots to kill Castro.

The unknown assassin shot Giancana in the head seven times with a silenced .22 caliber handgun. Although some suspected the CIA was responsible for the shooting (as Giancana had a somewhat troubled history with the agency), CIA Director William Colby was quoted as saying, "We had nothing to do with it." Many researchers believe Colby's claim as it seems much more likely that Giancana's onetime friend and Chicago Mafia boss Joseph "Joey Doves" Aiuppa ordered the hit on the disgraced "Momo" because he had become too talkative and Aiuppa feared Giancana would reveal everything he knew about Chicago mob operations (including Giancana's alleged complicity in orchestrating the JFK assassination) during his upcoming Senate committee appearance.

Friday, December 30, 2005

Crime Commission Officially Gains New Boss

Former FBI agent James Wagner ws officially introduced on December 14th as the new boss at the Chicago Crime Commission, a mixed blessing for the good citizens of our city and state.

On the plus side, it should prove an exciting shot in the arm for the Crime Commission, the venerable civic organization that was born in the lawlessness of Chicago circa 1919 and thrived on a crimebusting image earned during the heyday of Chicago hoodlums, but has seemed to struggle with its sense of purpose in recent decades.

In Wagner, the Crime Commission gets a real law-enforcement veteran with not only historical perspective but up-to-date knowledge of organized crime, both the players and their activities -- the mission that should remain at the top of the commission's reasons to exist.

Wagner, though, gained some of his knowledge during the past six years as the top investigator for the Illinois Gaming Board, which is where the downside to the public factors into the equation. The Gaming Board, which rides herd on Illinois' riverboat gambling industry, was already woefully short of investigators, whose not-so-simple task is to keep organized crime from infiltrating the casinos. Losing Wagner could be another serious blow.

Because of state budget cuts and hiring freezes under Gov. Blagojevich, the Gaming Board has gone from 18 investigators when Wagner started there to just eight at present. "That's just not enough to do the job over there," Wagner told me Tuesday, admitting that frustration with the situation at the Gaming Board was a major factor in his decision to leave after he was recruited for the Crime Commission opening.

There are 10,000 casino employees in Illinois, each of whom has to undergo a background check by the investigative staff before they can be licensed. Owners and managers are supposed to get more extensive background investigations. The Gaming Board also must investigate the companies that supply gaming equipment to the casinos. "I really was not comfortable we had enough people to do a satisfactory job. We did the best we could, but I would strongly recommend that the state increase the manpower there," said Wagner with the understatement one would expect from a career FBI agent.

Does that mean the door has already been left open for organized crime to get a foothold in Illinois? "I wouldn't go that far," Wagner said. "My concern is that it has left open the opportunity for infiltration that would be unbeknownst to us because we're not looking in all the places that we should be looking."

It's a warning that Gaming Board officials have been issuing for several years now -- to no avail. State government has many unmet needs at present, but sooner or later, this one is going to catch up to us.

It was my first chance to meet Wagner, a distinguished-looking 62-year-old with a full head of silvery hair who grew up on a farm in downstate Newman and taught high school four years before joining the FBI in 1969.

Wagner had just come up on retirement age when federal prosecutor Sergio Acosta took over as administrator of the Gaming Board and persuaded Wagner, then the coordinator of the bureau's Chicago Organized Crime Section, to join him in March 2000. His tenure included the investigation that so far has helped block Emerald Casino from locating a new riverboat in Rosemont, partially based on organized crime concerns.

Returning to the bright side, Wagner can continue this kind of work from the bully pulpit provided by the Crime Commission, which will benefit from someone who has credibility with the law enforcement community and the news media, although the latter will need to persuade him to loosen up a bit.

To many, the Crime Commission must seem an anachronism, a throwback to the days when organized crime figures operated openly and conspicuously within this city. But the Hired Truck scandal at City Hall, the still unfolding Family Secrets investigation and even the Emerald episode have provided fresh evidence that organized crime is still active in our city, having burrowed deeply into our institutions.

Wagner offers a sobering perspective. "Organized crime is alive and well in Chicago and, unfortunately, probably always will be," he said. "There is a concerted effort on the part of some, I don't know if you'd call them apologists, but people often like to believe we put them out of business by putting them in jail, and that doesn't eradicate anything. They're still there, and they're still working."

"They are strong. They have done a great job of insulating themselves through investments and what we would consider to be legitimate businesses and getting out of the limelight and going below into the shadows again." Wagner should find plenty to keep him busy. Let's make sure the Gaming Board is empowered to move forcefully to complete the work he left behind.

Thanks to Mark Brown

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