Will Family Secrets Mob Trial Convictions Doom Chicago Mob?

Does Monday's conviction of four top mobsters mean the end of the Chicago Outfit?

Hardly.

The Outfit long has controlled illegal gambling operations -- from sports betting to video poker -- and has financed Chicago-area drug dealing, said Chicago Crime Commission President James Wagner, a former top FBI mob fighter. Money from those ventures often is invested in law-abiding businesses because "you've got to have somewhere to send that cash in order to legitimize it," Wagner said.

History has shown that when Outfit members get sent to prison, others take over. The most recent transfers of power happened long before the Family Secrets trial began, Wagner said. "This will solidify the positions of the people already out there," he said. The trial "hasn't eliminated anything."

Who runs the Chicago mob isn't clear. Reputed mobsters not charged in the Family Secrets case who are still powerful in the Outfit include John "No Nose" DiFronzo, Joe "The Builder" Andriacchi, Al Tornabene, Frank "Tootsie Babe" Caruso, Marco D'Amico and Michael Sarno, law enforcement sources said.

Al Egan, a former Chicago Police detective who investigated organized crime here for three decades, said the verdict wounded the Outfit but won't kill it.

"This put an extremely huge dent in it," said Egan, who worked on the federal Organized Crime Task Force. However, "It's not going to be stopped."

Thanks to Steve Warmbir and Chris Fusco

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Mum's the Word

Aheavy-set, gray-haired fellow stepped outside the Old Neighborhood Italian-American Club Monday afternoon, sat down at a picnic table and started trimming his fingernails with a set of pocket clippers just as I walked up.

I told him who I was and what I was doing, which was looking for reaction to Monday's across-the-board guilty verdicts in the big Family Secrets mob trial.

He glanced up without actually lifting his chin, shook his head, grunted and shook his head again.

I took it for a no comment.

The next guy out the door was friendlier. He laid his cane on the picnic table as he sat down, smiled when I made my introduction and said he reads the Sun-Times regularly. He even said he likes my column and mentioned another columnist here he doesn't like. I told him the other columnist was great.

"I'm just telling you the truth," he said. I told him that's all we can ask.

While this was going on, a big guy came to the door and asked the guy with the fingernail clippers if he could come inside a minute, which was just about the time I was asking the friendly guy about the verdict in the mob trial.

The friendly guy suddenly grew hard of hearing, a blank faraway expression crossing his face. I repeated my question. His look grew more pained. Words seemed to fail him.

Then the guy with fingernail clippers opened the door and told the friendly guy (he might have called him John) that he had a phone call. John asked me what the other guy had said, his mind having tried so hard not to hear me that it seemed to have blocked out all other sound as well. I told him he had a phone call -- and that he should assure them he hadn't told me anything.

By then, of course, the word was spread to everybody else inside the modern brick and stone structure at 30th Place and Shields that there was a reporter out front.

After that, most of them either slipped out the side door to get to the ONIAC members only parking lot surrounded by one of those black wrought iron fences favored by the mayor -- who after all grew up just down this very street -- or they marched past me without so much as a sideways glance as I tried to talk to them.

The reaction to my presence was only slightly different for those entering the club. They at least paused to hear me out before scurrying off.

"I no speak English. I no speak English," said one, not too convincingly.

It reminded me a little of the way defendants flee the Dirksen Federal Building, which was unfortunate, because I considered the Old Neighborhood Italian-American Club a good place to look for the opinion of older Italians, not older mobsters, and I do not consider one to be synonymous with the other. But the club also played a cameo role in the trial. Its founder was said to be Angelo "The Hook" LaPietra, the onetime boss of the mob's 26th Street crew. Defendant Frank Calabrese Sr., a LaPietra lieutenant, was a club member. The current club president, Dominic "Captain D" DiFazio, was a prosecution witness who testified about being the go-between for extortion payments to Calabrese from the owner of Connie's Pizza.

This gave me time to contemplate the significance of the silent treatment, which obviously hadn't come as a complete surprise. Whether you call this Bridgeport or Armour Square, this is not a neighborhood known to be welcoming to outsiders. It's also an area where there historically has been a nexus between the mob and Chicago politics. And what struck me is that, as important and valuable as this prosecution was, it doesn't really change the fundamentals. This is still a town where in certain places they know you don't talk about certain people because they still have power and influence.

A young man across the street in a city General Services Department T-shirt was walking a basset hound puppy. Between the puppy, his job and working on a double major at DePaul, he said he didn't have time to think -- about the mob trial or anything else. But he said, "It's everywhere."

He wouldn't give his name, but said the dog's name was Dolce.

"That's sweet in Italian," he explained.

Finally, a guy arrived who was happy to talk. I told him about the verdicts.

"That's life," he said, mentioning that he knew Frank "The German" Schweihs, one of the original co-defendants.

"What disappointed me is that they were hurting legitimate people, their own people, Italians," he said of the accused.

Just then, the door opened and the big guy stuck out his head again.

"Larry!" he shouted. "You got a phone call."

Dolce.

Thanks to Mark Brown

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Brother of Murder Victim Cheers Mob Trial's Guilty Verdicts

A relative of a mob murder victim wasted no time applauding the guilty verdicts in the Family Secrets case.

As CBS 2's Mike Parker reports, prosecutors asked everyone involved in the trial not to talk to the media yet, but one man decided to speak out.

Ron Seifert seemed eager to talk about the guilty verdicts after a federal jury convicted five men Monday in a racketeering conspiracy that involved decades of extortion, loan sharking and 18 murders aimed at rubbing out anyone who stood in the way of the ruthless Chicago mob. "It makes you feel good. Anybody would feel good," Seifert said.

His brother Danny was one of the victims of the Chicago mob. Danny Seifert was just 29 years old and the owner of a Bensenville plastics factory. The feds say Joey "The Clown" Lombardo muscled in on the business, and then helped kill Seifert when it looked like he'd testify against the outfit guy in a fraud trial.

"I'm just glad they convicted Joey, that's all. Why? Because I think he was involved with my brother, killing my brother," Ron Seifert said.

Emma Seifert and her son Joe had little to say after the convictions were handed down by the jury. But in July, the widow of Danny Seifert told CBS 2 News about the murder, at a time when son Joseph was only four years old.

"… And then when the other one was struggling with my husband and he took Joseph and I into the bathroom and held a gun to my head and just told me to be quiet. The next thing I remember hearing was a gunshot," Emma Seifert said.

A known associate of convicted mobster James Marcello was distraught, and seen in tears after hearing the verdict. Prosecutors say Marcello was involved in the murders of rogue mobsters, the Spilotro brothers.

Thanks to Mike Parker

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GUILTY for All 5 Family Secrets Mob Defendants

In a verdict announced this afternoon, a federal jury in Chicago convicted four reputed Outfit figures and a former Chicago police officer on all counts in the landmark Family Secrets mob conspiracy case.

Convicted on the most serious charge--racketeering conspiracy--were:

• James Marcello, 65, identified by authorities as Chicago's top mob boss two years ago when the indictment was handed down.
• Joey "the Clown" Lombardo, 78, a legendary reputed mob figure for decades who was convicted in the 1980s of bribing a U.S. senator.
• Frank Calabrese Sr., 70, whose brother and son provided crucial testimony for the prosecution.
• Paul "the Indian" Schiro, 69, the reputed Outfit member from Phoenix who is already serving a prison sentence for his role in a mob-connected jewelry theft ring.
• Anthony "Twan" Doyle, 62, the former Chicago cop accused of passing on confidential information about the federal probe to a mob friend.

Marcello also was convicted of conducting an illegal video gambling business, bribing Calabrese's brother in hopes of discouraging him from cooperating with authorities and obstructing the Internal Revenue Service.

Calabrese also was convicted of running a sports bookmaking operation and extorting "street taxes" from the Connie's Pizza restaurant chain.

Lombardo also was convicted of obstructing justice by fleeing from authorities after his indictment in the case. The jury deliberated four days last week and an hour this morning before reaching its verdict.

The riveting trial, which played out over 10 weeks this summer before overflow crowds in the largest courtroom in Chicago's federal courthouse, marks the most significant prosecution of the Chicago mob in decades.

According to the racketeering conspiracy charge, the defendants extorted protection payoffs from businesses, made high-interest "juice" loans and protected its interests through violence and murder.

The heart of the charges involved 18 gangland slayings dating back decades. Among them was the infamous 1986 murders of Anthony and Michael Spilotro, whose bodies were found buried in an Indiana cornfield.

The prosecution case hinged on the testimony of Calabrese's brother, Nicholas, one of the highest-ranking mob turncoats in Chicago history who linked his brother to many of the murders. Calabrese's son, Frank Jr., also secretly tape-recorded conversations with his imprisoned father. The unprecedented cooperation by relatives of a target prompted federal authorities to code-name the probe Operation Family Secrets.

Even with the guilty verdicts, the jury's duties are not yet concluded. After hearing another round of argument by lawyers and prosecutors that could take part of a day, jurors will have to decide if any of the reputed Outfit figures are guilty of any of the 18 murders. If found guilty in this second round, the defendants could face sentences of life in prison.

Frank Calabrese Sr. has been accused of taking part in 13 murders, Marcello three and Lombardo and Schiro one each. Doyle was not charged with a murder.

Thanks to Jeff Coen

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Bus Union Under Mafia Control Concludes Independent Counsel

An independent counsel appointed to investigate the union representing 15,000 New York City school bus drivers has concluded that there is substantial evidence that “organized crime has infiltrated and controlled” it.

The counsel’s report, written in January and made public yesterday by dissident union members, said that top officers of the union, Local 1181 of the Amalgamated Transit Union, were involved in what it called racketeering activity that included extortion, kickbacks and bribes.

Salvatore Battaglia, the local’s former president, is facing trial on federal charges accusing him of extortion, receiving bribes and hiding Mafia involvement in the union. He has pleaded not guilty. The local’s secretary-treasurer, Julius Bernstein, was forced to resign by federal prosecutors and has pleaded guilty to obstructing justice.

The independent counsel, Richard W. Mark, called on the parent union to bring internal charges against Mr. Battaglia and Mr. Bernstein and to conduct a further investigation “to determine the extent of criminal activity.”

Leo Wetzel, the general counsel of the parent union, said the union had decided against bringing charges against those officials because they had both retired and cannot run again for union office. “It was the judgment of the union,” Mr. Wetzel said, “that the resources and attention of the international and local union were better directed to putting the local on the right course and to leave those matters to federal prosecutors.” Mr. Wetzel said the parent union assigned auditors to review Local 1181’s books for financial wrongdoing.

At a news conference yesterday, a dozen bus drivers complained that the two trustees whom the parent union had named to oversee the local had hired 11 of the local’s executive board members who had worked under Mr. Battaglia.

The drivers said those people had helped perpetuate an intimidating atmosphere that discourages criticism of union leaders. They also complained that not enough was being done to recoup the more than $2.7 million that federal officials say Mr. Battaglia obtained improperly.

“The international didn’t bring in any new faces,” said Simon Jean-Baptiste, who belongs to a dissident faction called Members for Change. “The same people are there who stopped people from talking. It’s a bad situation.”

Another bus driver, Clifford Magloire, said that in May, when he was distributing leaflets criticizing the local’s leaders, one union official pushed him against a fence and started screaming at him as others surrounded him.

Defending the decision to hire the 11, Mr. Wetzel said: “It is essential that you have experienced personnel to represent the union members. If you sweep house and bring in a bunch of people who have no experience, that is not a good idea.”

Mr. Wetzel said the 11 executive board members were hired for staff positions only after they passed a background check by the parent union. He said one executive board member was not hired because of questions about his integrity.

The independent counsel’s report criticized several officials from the parent union who knew for decades about mob involvement in Local 1181 but did nothing.

Last September, Matthew Ianniello, the acting boss of the Genovese crime family, admitted that he had helped arrange for bus companies to make payoffs to Local 1181 officials. Some payoffs, prosecutors say, went to Mr. Battaglia, who in exchange agreed not to attempt to unionize certain bus companies.

Mr. Ianniello also said he shared kickbacks and extorted money with Local 1181’s leaders. He made those admissions when he pleaded guilty in Federal District Court in Manhattan to obstructing justice.

Mr. Wetzel said that union officials planned to enact a stronger ethics code at their convention this month that would, among other things, require union officials to notify headquarters if they know of any union official mishandling funds or involved in corruption.

Thanks to Steven Greenhouse

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