The Chicago Syndicate
The Mission Impossible Backpack

Monday, July 30, 2007

Gangster Graveyard

Friends of ours: Joseph "Jerry" Scalise, Ken "Tokyo Joe" Eto, Joseph Ferriola, Gerald Scarpelli, James Peter Basile, Harry Aleman

After learning his mobster brothers planned to kill him, the stocky bank robber figured his only way out alive was to turn FBI informant.

So, for 16 months, the self-professed soldier secretly recorded 186 conversations with his Chicago Outfit associates. He also detailed about 40 unsolved mob murders.

It was during one of those chats that FBI agent Jack O'Rourke said his informant nonchalantly mentioned a mob graveyard in southeast DuPage County near the former home of syndicate enforcer Joseph "Jerry" Scalise, imprisoned at the time for a London jewelry heist. "What are you talking about?" O'Rourke, now a private consultant, recalls asking. "He said it was common knowledge."

For five months, an elite FBI-led task force excavated many acres near Route 83 and Bluff Road, near Darien. They found bodies of two low-level wise guys before calling it quits in October 1988.

Nearly 20 years later, the group's early intelligence work remains significant. It laid part of the foundation for the Family Secrets trial under way in Chicago in which five defendants are accused of racketeering conspiracy in an indictment that outlines 18 murders, gambling and extortion.

A construction crew also resurrected the field's ominous past in March 2007 after unearthing a third body just north of the site.

It's unknown if more vanquished mobsters remain there undiscovered. A fabled 45-carat gem known as the Marlborough diamond that Scalise stole also was never found. Some theorize he hid it on his property. And, finally, just who is the turncoat who led FBI agents long ago to the burial site?

For decades, Chicago gambling kingpin Ken "Tokyo Joe" Eto was a loyal soldier. That changed in February 1983 when he survived three gunshots in a botched hit. Eto played possum, and later turned informant. His would-be killers were later found dead in a trunk in Naperville - the price for not getting the job done right.

Eto proved to be a valued government witness before his Jan. 23, 2004 death, but he was not the one who led authorities to the graveyard. His attempted assassination, though, in part sparked the formation of the organized crime task force of FBI, Chicago, state and local officials in the mid-1980s to curb such mob violence.

An early goal was to bring down the crime family or "crew" of mob boss Joseph Ferriola of Oak Brook, who operated lucrative gambling rackets from Cicero to Lake County until his 1989 death.

Members of the task force said they focused on Gerald Scarpelli, who along with Scalise, known as Whiterhand because he was born minus four fingers, were Ferriola's busiest hitmen.

About this time, another mob guy started getting cold feet. O'Rourke identified him as James Peter Basile, a convicted Chicago bank robber best known as "Duke." Basile already had the FBI zeroing in on him for a 1983 race track robbery in Crete. So, after he also learned Scarpelli, his longtime associate, was planning to kill him, Basile realized he had no other choice but to break the mob's code of silence.

For 16 months, he helped the FBI listen in on his chats with Scarpelli and other associates before serving a few years in prison for the race track robbery and slipping into a witness protection program in the early 1990s.

Basile re-emerged briefly in June 1996 at a U.S. Senate judiciary committee hearing. "I finally decided to do something because it seemed there was no way out," he testified. "I began informing on the mob."

It was during one of his recordings of Scarpelli that the FBI first learned of the DuPage County graveyard. Basile later took them to the site, near Scalise's former home. The FBI heard there could be as many as seven bodies buried in the field.

It was painstaking work. For five months, task force members traded in suits, badges and guns for jeans, chain saws and shovels. They dug up acres of soil, trees and drained a pond. Members hand sifted truckloads of dirt through mesh screens for trace evidence. "We were meticulous," said Jerry Buten, a retired 30-year FBI supervisor. "This was way before CSI, but we knew the way you solve most major crimes was through physical evidence."

Authorities speculated the field held victims of the infamous chop shop wars of the 1970s, when the mob seized control of the stolen auto-parts trade and wiped out uncooperative dealers.

State police stood guard 24 hours a day. Large canopies were erected to block circling media helicopters. But they weren't the only pests. "I gave an order that anyone who came in was given a pair of work gloves because I got tired of all the suits showing up just to look at us," former DuPage Coroner Richard Ballinger said. "We'd spend 12 hours out there, come back to the office to do more work and sleep, then go back out the next morning."

On May 16, 1988, members unearthed the first skeletal remains. On June 9, a second shallow grave was found. Both men were shot to death.

Authorities brought in experts from across the country, from archaeologists to soil scientists, including top forensic anthropologist Dr. Clyde Snow of Oklahoma. Snow had identified the remains of Nazi war criminal Josef Mengele in Brazil and some victims of John Wayne Gacy and the 1979 American Airlines crash near O'Hare.

Using dental records and facial reconstruction, Snow relied mostly on computerized skull-face superimposition to identify the corpses. The second body, buried in a ski mask and with a cache of pornographic materials, was that of Michael S. Oliver, 29, a Chicago machinist who vanished November 1979.

In the FBI recordings, Scarpelli is heard saying that Oliver was a minor hoodlum shot during a syndicate raid on an independent porn shop near Elk Grove Village.

Not sure how to dump the body, in a scene similar to that in Martin Scorsese's "GoodFellas," his underworld pals talked over a bite to eat as the corpse sat in the trunk.

It took more than one year to identify remains in the first grave as Robert "Bobbie" Hatridge, a 56-year-old Cincinnati man with a distinctive Dick Tracy square jaw, flat feet and a flair for fashion. The FBI said his girlfriend later told agents that Hatridge came to Chicago in April 1979 to meet with Scalise and Scarpelli about a big robbery. He never made it home.

Basile's graveyard tip was considered one of the task force's first big scoops. Nearly 20 years later, its intelligence work reverberates still.

The secret tapes Basile made led to Scarpelli's arrest in July 1988. He killed himself a year later, but not before making a 500-page confession that exposed many mob secrets. He also admitted to 10 murders, including some in the Family Secrets trial.

The task force also made history with another big bust. It brought down Ferriola's nephew, Harry Aleman, for killing a union steward in 1977. He was acquitted, then retried and convicted. Aleman, 68, and still in prison, is the only person tried twice for the same crime. Double jeopardy was discarded after it was learned his first judge took a bribe. "The entire (Ferriola) crew was prosecuted as a result of the task force," Buten said. "It marked the beginning of the Chicago Outfit's end."

The mob graveyard made news again in March when crews building townhouses unearthed a third body several blocks north of the field near 91st Street.

The remains were identified as Robert Charles Cruz of Kildeer, who vanished Dec. 4, 1997. Cruz, who was Aleman's cousin, had been on Arizona's death row just two years earlier until his conviction for a 1980 double murder was overturned.

The discovery of his body begs the question - Could more graves be found there?

Members searched far and wide, with one exception. At the time, a large drug rehab facility was being built there. Many wonder if beneath its foundation lie the bodies of more hoodlums. It's possible, task force members say, but unlikely. The bodies were unearthed in shallow graves less than 5 feet deep. They argue crews dug deeper when laying the foundation and probably would have found more graves if they existed.

Also still missing is the fabled $960,000 Marlborough diamond that Scalise stole during a 1980 London jewelry store heist. It was once owned by Sir Winston Churchill's cousin, the duchess of Marlborough.

Years ago, O'Rourke visited Scalise in his cell on England's Isle of Wight - the British version of Alcatraz - where he was imprisoned for the jewelry heist. "Scalise would do a lot of talking but never say anything," O'Rourke said. "Informants told us he shipped it to Chicago, where it was broken up and sold."

Scalise, 69, has kept a low profile since returning to the Chicago area after finishing an Arizona prison stint on drug charges. But, long ago, he was rumored to be working on his memoirs.

So far, though, he has upheld the mob's code of silence.

Thanks to Christy Gutowski

Top Ten Signs You're Watching A Bad Organized Crime Show

10. It chronicles the life and times of the Jackson family

Top Ten Signs You're Watching A Bad Organized Crime Show9. Mob bosses settle conflicts with spirited game of Trivial Pursuit

8. Only illegal activity is double parking

7. Mobsters whack an informant by driving up his cholesterol with rich desserts

6. Boss makes guy an offer he has the option of refusing

5. All nine mobsters played by Eddie Murphy -- remember "Norbit" is now available on DVD

4. They sit around eating sausage and pepperoni Hot Pockets

3. Everyone dies after catching tuberculosis from guy on airplane

2. Crime syndicate is run from behind bars by Paris Hilton

1. It's less violent than a typical episode of "The View"

Tipster Helps Put Mob Turncoat Peter Caporino, AKA Petey Cap, Behind Bars #GreedyPetey

Peter Caporino stood in a Jersey City courtroom last week in a green prison jumpsuit and blue slippers, with his hands cuffed behind his back. He held his head high but looked tired.

"Mr. Caporino, are you thinking clearly today?" Superior Court Judge Peter Vazquez asked him. "Yes," Caporino replied, nodding.

The exchange began the final ironic twist in the strange, sorry tale of "Petey Cap," one of the better-known and well-liked mobsters to grace or -- depending on your view -- plague North Jersey.

Caporino was the Hasbrouck Heights wiseguy who traded four decades of service in the mob for an FBI wire and the chance to spare himself and his wife from prison. He secretly recorded hundreds of conversations, and later helped federal prosecutors win convictions against 16 Jersey-based members and associates of the Genovese crime family. But as most of them marched off to prison last summer, a whisper campaign was in the works: Caporino, the rumors went, was not only back on the streets, but still brazenly running the lucrative six-figure gambling racket the feds had ordered him -- twice -- to shut down.

A new nickname was in the air. Greedy Petey, they called him.

Anonymous letters found their way to the Jersey City police, the county prosecutors, even The Star-Ledger, identifying locations where Caporino and underlings were said to still be operating. Someone was ratting out the rat.

Last month, police raided his home, seized betting records and cash and charged Caporino and his wife. The end came Thursday, when the 70-year-old mobster admitted his crimes in a plea deal with Hudson County prosecutors, and agreed to a seven-year prison term, most of which will probably be spent in isolation.

Caporino's punishment could ultimately be longer and lonelier than any given to most of the men he helped put away. "It's poetic justice, that's what it is," said Joseph Ferrante, a defense attorney who grilled Caporino on the witness stand during a federal racketeering trial last year. "You can't go and be a rat and put it in everybody's face."

Caporino wasn't a boss or even a ranking member in New Jersey's most dominant crime family. But he was a fixture -- a slight, chatty fellow, known and liked by cops, criminals and politicians alike, fond of fine wines and quick to pick up the tab. With his white hair and silver-rimmed glasses, he was more lottery agent than bruiser.

He was also the proprietor of a Hoboken members-only social hall, the Character Club, that occupied a faded brick building in the shadow of gleaming new condos. Like the building, its owner represented the new realities of the modern mob in New Jersey. A lifelong Genovese associate, Caporino turned informant to save the family that mattered most to him, but couldn't abandon the job. "It's all he knows," said his defense attorney, Sam DeLuca.

Caporino isn't the first wiseguy cooperator to return to his criminal ways. It happens so often that some in Garden State law enforcement circles have a saying about their witness protection participants: You can take the wiseguy out of Jersey, but you can't take Jersey out of the wiseguy.

Caporino refused to enter the program, even after he was forced to testify at the May 2006 trial of reputed Genovese soldier Michael Crincoli. On the stand, Caporino calmly admitted peddling information to the FBI for more than 15 years, including intelligence that helped in the prosecution of Louis "Bobby" Manna, a reputed Genovese underboss who ran operations in New Jersey.

He also acknowledged under oath that agents had repeatedly ordered him to end his numbers racket. But at the hearing Thursday, Caporino admitted he was running it again last June, weeks after the Crincoli trial, raising the prospect that he never really shut it down. "It certainly looked that way," said Assistant Hudson County Prosecutor Thomas Carroll.

Caporino was first arrested and released last summer on minor gambling promotion charges. At the time, Jersey City Police Lt. Gary Lallo credited "community complaints in various sectors of the city" for jump-starting the investigation, but declined to say more. But there was no shortage of suspects behind the campaign to topple him, according to attorneys, investigators and others who know him.

Near the top would be the wiseguys he helped convict, or their friends, looking to exact some revenge, even if it's not a traditional form. "They like to see a guy suffer," said Assistant U.S. Attorney V. Grady O'Malley, a veteran organized crime prosecutor who oversees that office's Strike Force. "He's going to suffer with this. You're talking about spending the remaining good years of his life in jail."

There are other theories. One blames competitors coveting his lucrative turf. Or federal authorities angry at Caporino or looking for a way to force him into the protective custody he had repeatedly refused. Or local law enforcement, relishing the chance to embarrass the FBI by nailing one of its informants.

Another grapevine theory said Caporino's arrest was police payback after one of his right-hand men, Steve French, became a federal witness against a Jersey City detective, Frank D'Agosta, who was convicted of extorting the ring operators.

French became a cooperator after his arrest in a gambling raid by Hudson County investigators in 2002, the same one that snared Caporino, his wife, Ann, and more than a dozen others. By that point, Caporino had secretly been an FBI informant for more than a decade. But the prospect of he and his wife being sent to jail turned him into a full-fledged cooperating witness. In the two and a half years that followed, he recorded more than 300 conversations, most often with a microphone embedded on the pager he wore on his belt.

The racketeering indictment that ensued outlined loan-sharking operations, extortion attempts, and shakedowns against bettors by associates, soldiers, and Lawrence "Little Larry" Dentico, believed to be one of the ranking captains in the crime family.

One of Caporino's recordings captured Joseph Scarbrough, the reputed Jersey crew boss who presided at his own Hoboken social club, musing about whether to execute one gambler before his debts got too big. On another, Scarbrough waxed nostalgic about a particularly ruthless killer from Chicago. "Good man. Good (bleeping) man," said Scarbrough, who later pleaded guilty and was sentenced last year to five years in federal prison. "I loved the guy."

Caporino's role was more benign. He was the bank, the financier of an illegal daily lottery across North Jersey. He and his wife owned a house in middle-class Hasbrouck Heights, where they cared for their adult disabled daughter. Petey Cap's "office" -- the headquarters for the betting operation -- was a rented apartment in Staten Island, he admitted Thursday.

The take was sometimes as high as $40,000 a day, he testified last year, and he passed the proceeds both up and down the organizational ladder. Assistants and the legions of runners got paid for taking daily bets in office buildings, housing projects and storefronts. Scarbrough took as much as $5,000 a month, his "tribute" payment.

Caporino's cooperation won him a five-year suspended sentence in connection with the 2002 arrest and persuaded prosecutors to drop the charges against his wife.

The plea deal announced Thursday calls for Vazquez to reinstate the five-year term when he formally sentences Caporino in September. The judge is also expected to add a concurrent seven-year term for being the leader of an organized crime network. Again, prosecutors will drop their charges against Ann Caporino.

Thursday's plea hearing lasted just 15 minutes. Caporino stood at the defense table, guarded by two sheriff's officers and flanked on his left by DeLuca, his lawyer for more than 20 years. "Are you satisfied with the services of your attorney?" the judge asked. "Totally," Caporino said.

DeLuca then asked him a brief series of pre-arranged questions about the gambling ring and his role. Caporino limited his answers to one- or two-word replies. He wasn't asked to explain why he committed the crimes, though he'll get the chance to do so at sentencing. By that time, about half of the defendants he cooperated against will be free.

DeLuca said he hopes that Caporino will be eligible for parole in less than two years, although prosecutors said that was unlikely. Meanwhile, DeLuca said he will ask that Caporino serve his time somewhere outside of North Jersey.

He also can't expect any 11th hour assistance from the federal government. "We're not going to step in now and rescue him," said O'Malley, the federal prosecutor. "He takes the entire weight -- and he deserves it."

Thanks to John P. Martin.

Mob Candy

Friends of ours: John Gotti, Carlo Gambino
Friends of mine: Soprano Crime Family

Tony Avella, a City Council member and founder of the Council’s Italian-American caucus, was home in Whitestone, Queens, watching the local news when a segment about a new magazine caught his attention. Inaugural Issue of Mob CandyThe magazine was called Mob Candy, its publisher, Frank DiMatteo, told the camera in what he calls broken Brooklynese, and its focus was the gangster lifestyle.

“Everyone likes to read about Mafia stuff; that’s why ‘The Sopranos’ did so well,” said Mr. DiMatteo, a balding man with forearms that display Popeye-like tattoos of a Marine Corps bulldog and the names of his three children.

Mr. Avella, whose father’s family came from the Naples area, was incensed by what he saw as pejorative stereotyping of Italian-Americans. In the past, he has spoken out against “Shark Tale,” the animated film in which criminal sea creatures speak with Italian-American accents, and attacked PBS for naming a series “The Medici: Godfathers of the Renaissance.”

On July 20, Mr. Avella took to the steps of City Hall to protest Mob Candy, accompanied by representatives of several Italian-American groups. He held a copy of the cover of the magazine’s premiere issue, which depicts a scantily clad, Glock-toting moll. “The magazine glorifies criminality,” he said. “It’s offensive to Italian-Americans and it degrades women.”

The other day, sitting at the bar of a Court Street pizzeria in Carroll Gardens, Brooklyn, just blocks from where he was born, Mr. DiMatteo pondered Mr. Avella’s position.

“Am I glorifying crime?” asked Mr. DiMatteo, 51, whose grandparents, like Mr. Avella’s, come from southern Italy. “Maybe I am, but I’ve had a lot of great teachers: The Post, The News, The Times, the History Channel, Hollywood.”

Mr. DiMatteo, who previously distributed the pornographic magazine Screw, said his new magazine offers “an entertaining history lesson.” And he added, “I ain’t making nothing up here.”

The 92-page first issue, which costs $4.99 and should be on newsstands by Thursday, offers an article about the legacy of Carlo Gambino and a history of a half-century of what the magazine describes as Mafia rats. There is also a pull-out poster. On one side is a collage of photographs of John Gotti; on the other, an image of the cover model, wearing a lace-up bustier and garter belt, toying suggestively with a grape Blow Pop. “That’s the candy side,” explained Tyrone Christopher, 39, the magazine’s co-founder.

Despite the publication’s glossy appearance, all the articles in the first issue were written by its two creators, and there are no advertisements. In the opinion of Mr. DiMatteo, the attention Mr. Avella called to his magazine may change that situation. “Ultimately,” he said, “it helps.”

Thanks to Emily Brady

Duke's Life of Crime

An edited text of James "Duke" Basile's June 1996 testimony in Washington, D.C. before a Senate judiciary committee. He hasn't been heard from publicly since.

I have lived a life of crime since 1958, two years after I was honorably discharged from the Marines.

I was 23 and in my second year of college when, by coincidence, I became connected with organized crime by signing on to work in the Owl Club in Calumet City as an operator for roulette, poker, blackjack and dice games. When the bosses moved their gambling operations to Las Vegas in 1962, I stayed in Chicago to do outfit work.

During my tenure, I worked under several bosses -- Sam Giancana and Joe Ferriola were a few. I knew them on a first-name basis.

I became a main soldier in about 1976 after I was discharged from prison after serving five years for bank robbery. My duties included taking care of loan sharking, lending and collecting, gambling, bookmakers, chop-shops, prostitutes, restaurants and other business collections -- collections which were all extortion to allow these operations to continue doing their business.

I averaged about $300,000 a month. I was allowed to keep $5,000 monthly for myself.

During this time in 1982, I was called before the federal grand jury and given immunity. I served 15 months for my refusal to testify and earned the added respect from the outfit, being that I had kept quiet.

I was told to lay low afterward because I became too popular and had bad press. I then temporarily returned to burglaries and because of my high living and constant need for more money, I continued.

Although I was a loyal member of the Chicago outfit for 38 years, in 1986, I began for the first time to have my doubts. I finally decided to do something because it seemed there was no way out. I began informing on the mob.

The rest of my story is all documented in FBI files. I have made approximately 186 taped conversations. I was told that I kept 15 agents busy for months working on all the information I provided. I was able to provide the FBI with detailed information on 40 murders together with other details of the entire mob and its activities. I also testified against other members.

I always pride myself as having never pulled the trigger on any hits, although I was part of setting up and assisting hits.

I remain relatively straight, but it's hard. I haven't been able to get any good jobs. I've been turned down, on my worst day, at McDonald's. I've been living hand-to-mouth with jobs whenever I can get one. I'm not here looking for sympathy. I don't even deserve it.

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