Former FBI Agent, Now Head of Chicago Crime Commission and Mob Expert to Testify at Family Secrets Trial

Friends of ours: Joseph “Joey the Clown” Lombardo, James "Little Jimmy" Marcello, Frank Calabrese Sr., Nick Calabrese

An organized crime expert will be allowed to testify at the trial of several alleged mob figures accused of taking part in a conspiracy that included 18 murders, a federal judge ruled Thursday in Chicago.

U.S. District Judge James Zagel said former FBI agent James Wagner can discuss how the so-called Chicago Outfit is structured and how it operates, but he can’t talk about individual members or the defendants.

That was a major concern of defense attorneys, who did not want Wagner — the one-time head of the FBI’s organized crime unit in Chicago — to link their clients to the mob. Wagner now heads the Chicago Crime Commission.

Zagel disputed the argument made by defense attorneys that because organized crime has been widely covered in the media such an expert is not necessary.

“This is not well understood,” he said about the way organized crime is structured.

Zagel’s ruling, which was expected by defense attorneys and prosecutors, is nevertheless significant. In Wagner, prosecutors have an expert on the mob in Chicago whose credibility cannot be easily questioned — unlike some reputed mob members who may be called to testify.

Wagner doesn’t have “the baggage of these witnesses,” Rick Halprin, Joseph “Joey the Clown” Lombardo’s attorney said in arguing against allowing Wagner to testify.

That may be particularly important given that the prosecution’s star witness is Nicholas W. Calabrese, one of the defendants in what has been called the “Operation Family Secrets” investigation. Last week, Calabrese pleaded guilty to planning or carrying out 14 murders — including that of Tony “The Ant” Spilotro, long known as the Chicago mob’s man in Las Vegas and the inspiration for the Joe Pesci character in the film “Casino.”

Calabrese is expected to detail some of the very areas that Wagner likely will testify about the structure of the mob, but defense attorneys will surely try to attack his credibility.

The trial, expected to start next month, is the result of an investigation aimed at clearing up old, unsolved gangland slayings that date back decades. Among the 12 defendants are reputed major mob bosses James Marcello and Lombardo and Calabrese’s brother, Frank Calabrese Sr.

The case, expected to offer a glimpse into the workings of the Chicago mob, has already made the kind of headlines that might seem the stuff of novels and movies. In January, a federal marshal assigned to guard Nicholas Calabrese was charged with leaking information about Calabrese’s whereabouts to organized crime. He has pleaded not guilty.

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Net Loss

This is not necessarily on the topic of organized crime, but a "Friend of Mine" has written a detective mystery that I think many of you will find a compelling read. Should be a good piece of fiction for you to puruse while at the beach this summer.

Frustrated small-town loan officer Kyle Schmidt turns to online chat for a brief escape from his bleak reality. His fleeting affair awakens his online partner, Shelly Ruzinski, from a life of abject loneliness, and unleashes a love that quickly evolves into a dangerous obsession. She leaves a trail of murders as signs of her undying devotion, forcing the beleaguered police chief and a boy with unique perceptive abilities to stop her before she commits the ultimate act of love.

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Will Mob Family Secrets be Revealed?

Friends of ours: Tony Spilotro, James "Little Jimmy" Marcello, Nick Calabrese, Sam "Wings" Carlisi, Louie "The Mooch" Eboli, James LaPietra, John Fecarotta
Friends of mine: Michael Spilotro

Tony Spilotro and his brother Michael were heading to a meeting with top mobsters, and they were worried.

Tony Spilotro, already a made member of the mob and the Outfit's man in Las Vegas, was told he was going to be promoted. Michael was to become a "made" member. But they weren't acting like men in line for promotions, recently released court records show.

Michael gave his daughter his rings, a phone book and a cross to give to his wife. Tony gave the girl a briefcase containing money, rings and a phone book to pass on to his family in case he didn't return. The men never came back from the June 1986 meeting. It was a setup for them to be killed.

Fresh details about the murders could come to light this week when a federal judge will hold a hearing on evidence from the Spilotro murders that could become part of the Family Secrets trial.

It's one of 18 murders charged in the case, which involves some of the top mobsters in the Chicago area.

Top mob boss James "Little Jimmy" Marcello doesn't want jurors to hear from a member of the Spilotro family, who would testify he called Michael Spilotro at home regarding the meeting where the brothers were killed. The family member has not been named in court records but apparently can recognize Marcello's voice.

Marcello also didn't want jurors to hear from one of the Spilotro brothers' widows, who can testify about statements the men made before they left for the meeting.

The brothers' brutal murders are easily the best known among the murders charged in the case. In the mob movie "Casino," the Spilotro brothers -- with Joe Pesci playing the character based on Tony Spilotro -- were beaten to death and buried in an Indiana cornfield.

In real life, they were slain in a basement in a Bensenville-area home and later buried in a cornfield.

Several top mobsters were waiting in the basement and attacked the Spilotro brothers as they entered. Among the attackers waiting downstairs were several mobsters, now dead, including top mob boss Sam "Wings" Carlisi, Louie "The Mooch" Eboli, James LaPietra and John Fecarotta.

The FBI learned the details of the murder from one of the men who was there, reputed mob hitman Nick Calabrese, who now is cooperating with the feds and is expected to testify at trial.

Marcello is charged in the murders and allegedly drove the Spilotro brothers to the Bensenville-area home and their deaths.

Tony Spilotro asked his killers if he could say a novena before he died. His request was denied, and the killers strangled the brothers.

Thanks to Steve Warmbir

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The Original Scarface

Loosely based on the life of Al Capone, Howard Hawks’s SCARFACE is one of the most shocking and powerful gangster films ever made, setting the standard for Hollywood screen violence for years to come.

Tony "Scarface" Camonte (Paul Muni) is an enforcer for Johnny Lovo, an ambitious gangster who wants to combine all the liquor rackets in Prohibition-era Chicago into one crime empire. To achieve this goal Tony embarks on a reign of terror, threatening citizens and clawing his way to power until he is the number one mobster in town. Muni’s fierce performance established the model for the Hollywood mobster, a violent yet charismatic figure. Censorship battles over the film delayed its release for two years, and resulted in additional moralizing scenes and an alternate ending. Visually dynamic and provocative, SCARFACE, produced by Howard Hughes, is one of the best films of the 1930s and the forerunner of the modern gangster film.

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Did Chicago and New York Mobsters Make a Move into Wisconsin?

Friends of ours: Meyer Lansky
Friends of mine: Morgan Murphy

Wisconsin State gaming officials raised serious questions over whether to grant Kenosha businessman Dennis Troha a gaming license so he could develop a proposed Indian casino at the old Dairyland dog-racing track in that city, according to documents released Friday.

The more than 1,000 pages of documents, which were part of a background investigation of Troha's now-defunct Kenesah Gaming Development LLC, show that state officials were aware of Troha's alleged links to organized crime and his past efforts to sway top state politicians into approving an earlier casino plan at the same dog track site. But a 46-page summary report on the documents stopped short of determining the accuracy of those allegations or recommending whether Troha should be granted the license.

Instead, as Gaming Administrator Robert Sloey noted in a cover letter releasing the report, Troha withdrew his request for the gaming license before the state could prepare a final report.

"Consequently, the report does not represent (any) conclusions drawn by the (Gaming) Division," Sloey wrote.

In a statement, Troha spokesman Jeff Fleming called the report "a compilation of every unsubstantiated innuendo and rumor. The contents of the report have not been verified or subjected to the routine review that the state would ordinarily conduct before making formal findings.

"Because of the circumstances, it is neither fair nor practical for Mr. Troha to respond to specific statements in the report," Fleming said.

Troha was indicted in March on federal fraud charges for allegedly funneling more than $200,000 in illegal campaign contributions to Gov. Jim Doyle through several family members. Federal prosecutors allege that he gave the money in an attempt to win Doyle's approval of the $800 million casino project. Troha has denied any wrongdoing.

The records show that Troha invested at least $13 million of his own money into the project, which was also being funded by the Menominee tribe of Wisconsin and the Mohegan tribe of Connecticut. The two tribes bought out Troha's share of the project shortly before he was indicted.

Evan Zeppos, a spokesman for the Menominee, said he believes the report will not affect federal or state action on the project, but it could be used by casino opponents to try to build political opposition.

While the report did not recommend whether to grant Troha and his Kenesah firm a gaming license, Division of Gaming investigator Patrick O'Hern questioned Troha's role in the project based on the following "issues":

* Troha's role in an earlier effort by Nii-Jii Entertainment Inc. in the 1990s to develop an Indian casino at the site.

Troha was a partner in the project, which was headed by former U.S. Rep. Morgan Murphy of Illinois and businessman Joseph Madrigano. Murphy later came under federal investigation and had to abandon the project because of his partners' alleged ties to the Chicago mob.

In an interview with state investigators, Troha described himself as an "insignificant participant" who "gave Morgan Murphy the benefit of the doubt" because Murphy "seemed to be a nice guy ... (who) didn't seem to be anybody that would be involved in anything improper."

O'Hern said that other records, including testimony in a civil trial by other casino investors against Murphy, indicated Troha's role was much more significant, but did not reach any conclusions as to how significant that role was.

* Troha's "history of having business partners with ties to organized crime."

In the late 1980s, Troha was a partner in another firm seeking to manage the Dairyland dog track. Other investors in that firm were alleged to have been close associates of New York mobster Meyer Lansky. The report also recounted Murphy's alleged ties to the Chicago mob.

* Troha's reputed involvement "in using improper methods to influence public officials in order to obtain approvals needed to operate a gaming enterprise."

In the first such case, Troha and other business partners allegedly retained veteran lobbyist M. William Gerrard in the 1980s in order to get then-Gov. Tommy Thompson's to approve their management of the Dairyland dog track.

Troha, according to the report, allegedly asked Gerrard to see whether Troha could hire a Racing Board member to act as an attorney for Troha's trucking company. Troha also met with Thompson's top aides, including then Administration Secretary Jim Klauser and Thompson aide Nick Hurtgen, before the Racing Board acted on Troha's request. The Racing Board ultimately rejected that proposal.

In the second case, the Nii-Jii project was shut down after it was reported that several of Thompson's closest confidants would have received shares of stock in the project worth more than $46 million. "Given Mr. Troha's significant level of activity in Nii-Jii matters, he could have known of this deal long before it hit the papers," the report stated.

The company also allegedly gave "gifts" of shares in Nii-Jii to Hurtgen's wife and other top officials in a manner "singularly characteristic of influence peddling."

* Troha's record of "bad business practices on several occasions." These endeavors included the failed Nii-Jii project in which other Kenosha investors lost hundreds of thousands of dollars. The investors ultimately filed a class-action lawsuit against Murphy and other project leaders.

The report found that Troha also had disputes with the Teamsters union over his Kenosha-based trucking company over union representation of his drivers. The Teamsters claimed that Troha sought to circumvent union contracts "by transferring work to non-Teamster companies in a kind of shell game.'" And the report also stated that Troha's "right-hand man in the company's Kentucky location" was alleged to have told a subordinate to commit perjury in a wrongful death lawsuit brought by one of the company's employees.

* A "lack of due diligence" by Troha in some of his business dealings. Those failings include claims that Troha failed to learn about efforts by other partners in the 1980s dog track racing venture to bribe a member of the Wisconsin Racing Board.

* A failure to disclose previous law-enforcement contacts relating to the Dairyland dog racing application and the Nii-Jii venture on his application for the Kenesah license.

Thanks to David Callender

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