Rudy "The Chin" Fratto Pleads Guilty

“The Chin” has migraines.

It’s no wonder why Rudolph “Rudy The Chin” Fratto, 67, a reputed Chicago mobster, takes medicine for the crippling headaches.

Just a few months after he was released from prison for tax evasion, he pleaded guilty Thursday in federal court in Chicago to another crime — mail fraud for taking part in a scheme to rig bids for forklift contracts for trade shows at McCormick Place.

Fratto won one contract but couldn’t produce any forklifts, so the scheme made no money.

Still, Fratto is likely going to be sentenced to prison, from 18 to 24 months in February.

Despite all this stress, Fratto has been migraine-free recently, he told a federal judge Thursday afternoon. “But you haven’t had a migraine in the last few days?” U.S. District Judge Harry Leinenweber asked. “No, remarkably,” Fratto said.

In January 2005, Fratto met a consultant to a general contractor who set up trade shows at McCormick Place. The consultant was in debt to a Chicago attorney and mobsters in Cleveland after they invested in the consultant’s business, which failed.

Fratto offered to help the consultant with the debt but also wanted inside information on the forklift bids. Fratto was unaware that the consultant was already cooperating with the FBI and secretly recording conversations with him and others.

As it became clear to Fratto in 2008 that the feds were investigating him over bid rigging, he expressed confidence that he wouldn’t get caught, as long as everyone kept their mouths shut. Fratto worried out loud that the FBI could be bugging his phone but mentioned he was using payphones. He told the consultant to take the 5th Amendment if he was questioned before a federal grand jury.

“The only thing they could say is that we rigged the bid,” Fratto predicted. “How they gonna prove that?”

Outside court Thursday, the usually chatty Fratto, who once referred to himself as a “reputed good guy,” had no comment.

Thanks to Steve Warmbir

Tweet

ABC7 Chicago Investigative Report to Be Used by Feds in Michael Sarno Sentencing

Federal prosecutors are preparing to throw the book at Chicago mob boss Michael Sarno, using a page from an I-Team story.

In this Intelligence Report: Why the government's argument for a maximum sentence relies on something reported on ABC7.

Heading into Friday's sentencing, we have two very different portraits of Mike Sarno. He is either a good, family man and helpful member of the community, as his lawyers would have you believe, or he is a heavyweight mob boss with a ruthless management style as the government describes him.

Monday, U.S. prosecutors submitted to the court a 2003 I-Team report to support their argument that Sarno be sentenced to the longest possible term in prison.

ABC7's broadcast in June 2003 focused on a restructuring of the Chicago mob ordered by imprisoned outfit leader James Marcello. "Little Jimmy," as he is still known, was doing time for racketeering, gambling violations and extortion, and still running the outfit's business from the barbed-wire Hilton.

Included in the June 3, 2003, I-Team report was this information about who had been tapped to oversee the Chicago outfit: "This mob heavyweight, 350-pound Michael 'Fat Boy' Sarno, whom Marcello has just installed, according to U.S. law enforcement source."

Nine days later, 250 miles away, behind the walls of a penitentiary in Michigan, James Marcello and his brother Mickey discussed the I-Team's report.

JAMES MARCELLO: "How did they get a copy of the indictment? The motion?"

In recently released undercover FBI Marcello quizzes his brother on how the I-Team got its information.

MICHAEL MARCELLO: "Yea and ah, put together a new crew with the Trucker..."

A hand sign for a sizable waistline, according to prosecutors, is meant to indicate Michael Sarno, whose girth precedes him. Authorities say the gist of the jailhouse chatter: Sarno is connected to the top guy.

Based on his organized crime stature, this Friday, the government will ask that Sarno's sentence be enhanced to 25 years.

He was convicted last December with four other men of bombing a Berwyn video poker company that was competing with the mob. They were also found guilty in a string of outfit jewel heists.

In a separate filing Monday, defense attorneys dispute the contention that Sarno is a crime boss. They have submitted 100 letters from Sarno's friends, neighbors and relatives that portray him as a good family man and a fine American. They also cite his numerous health problems that they say could be compromised by a lengthy stay in prison.

Thanks to Chuck Goudie

Tweet

2010 Statistics on Law Enforcement Officers Killed and Assaulted

According to information released by the FBI, 56 law enforcement officers were feloniously killed in the line of duty last year; 72 officers died in accidents while performing their duties; and 53,469 officers were assaulted in the line of duty. The 2010 edition of Law Enforcement Officers Killed and Assaulted released today provides comprehensive tabular data about these incidents and brief narratives describing the fatal attacks.

Felonious Deaths

The 56 felonious deaths occurred in 22 states and Puerto Rico. The number of officers feloniously killed in 2010 increased by eight compared with the 2009 figure (48 officers). The five- and 10-year comparisons show an increase of eight felonious deaths compared with the 2006 figure (48 officers), and a decrease of 14 deaths compared with data from 2001 (70 officers).

Officer Profiles: Among the officers who were feloniously killed, the average age was 38 years. The victim officers had served in law enforcement for an average of 10 years at the time of the fatal incidents. Fifty-four of the victim officers were male, and two were female. Forty-eight of the officers were white, seven were black, and one was Asian/Pacific Islander.

Circumstances: Of the 56 officers feloniously killed, 15 were ambushed; 14 of the slain officers were involved in arrest situations; eight were investigating suspicious persons/circumstances; seven were performing traffic stops/pursuits; six were answering disturbance calls; three were involved in tactical situations (e.g., high-risk entry); two were conducting investigative activity such as surveillance, searches, or interviews; and one officer was killed while transporting or maintaining custody of prisoners.

Weapons: Offenders used firearms to kill 55 of the 56 victim officers. Of these 55 officers, 38 were slain with handguns, 15 with rifles, and two with shotguns. One officer was killed with a vehicle used as a weapon.

Regions: Twenty-two of the felonious deaths occurred in the South, 18 in the West, 10 in the Midwest, and three in the Northeast. Three of the deaths took place in Puerto Rico.

Suspects: Law enforcement agencies identified 69 alleged assailants in connection with the 56 felonious line-of-duty deaths. Fifty-seven of the assailants had prior criminal arrests, and 19 of the offenders were under judicial supervision at the time of the felonious incidents.

Accidental Deaths

Of the 72 law enforcement officers killed in accidents while performing their duties in 2010, the majority of them (45 officers) were killed in automobile accidents. The number of accidental line-of-duty deaths was up 24 from the 2009 total (48 officers).

Assaults

In 2010, 53,469 law enforcement officers were assaulted while performing their duties. Of the officers assaulted, 26.1 percent suffered injuries. The largest percentage of victim officers (33.0 percent) were assaulted while responding to disturbance calls (family quarrels, bar fights, etc.). Assailants used personal weapons (hands, fists, feet, etc.) in 81.8 percent of the incidents, firearms in 3.4 percent of incidents, and knives or other cutting instruments in 1.7 percent of the incidents. Other types of dangerous weapons were used in 13.1 percent of assaults.

Tweet

William Anthony Degironemo, Reputed Chicago Outfit Operative, Pleads Guilty to Mail Fraud

A co-defendant of a man reputed to be a top operative for the Chicago Outfit pleaded guilty Thursday in the rigging of contracts to supply forklifts for two trade shows at McCormick Place.

William Anthony Degironemo, 67, an Inverness resident who operated MidStates Equipment Rental and Sales, pleaded guilty to mail fraud in federal court.

As part of the agreement, prosecutors will move to dismiss a charge of making a false statement to a federal agency and will recommend that Degironemo be sentenced to up to 21 months in prison. Sentencing was scheduled for Feb. 16.

Degironemo and Rudy Fratto, a Darien resident and reputed mob lieutenant nicknamed "the Chin," were charged in 2010 after they were accused of using confidential information about competitors' bids to undercut the competition and win the contracts.

A consultant who owed $350,000 to organized-crime figures in Cleveland allegedly gave the information to Fratto in exchange for Fratto's offer to intervene with the Ohio mobsters, according to court documents.

Fratto's trial is scheduled to begin next month.

Tweet

$1.6 Trillion Reported to Have Been Laundered by Organized Crime World-wide

Criminals may have laundered around $1.6 trillion in 2009, one fifth of that coming from the illicit drug trade, according to a new report by the United Nations Office on Drugs and Crime (UNODC).

The $1.6 trillion represents 2.7 per cent of global gross domestic product (GDP) in 2009, says the agency. This figure is in line with the range of two to five per cent of global GDP previously established by the International Monetary Fund (IMF) to estimate the scale of money-laundering.

The report, entitled Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimeAll criminal proceeds, excluding tax evasion, would amount to some $2.1 trillion or 3.6 per cent of GDP in 2009, according to the report., also says that the “interception rate” for anti-money-laundering efforts at the global level remains low.

Globally, it appears that much less than one per cent of illicit financial flows are currently being seized and frozen.

“Tracking the flows of illicit funds generated by drug trafficking and organized crime and analysing how they are laundered through the world’s financial systems remain daunting tasks,” stated UNODC Executive Director Yury Fedotov, who launched the report today in Marrakech, Morocco, during the week-long meeting of the Conference of the Parties to the UN Convention on Corruption.

The report points out that “dirty money” promotes bribery and corruption, finances insurgency and, in some cases, terrorist activities. It also destabilizes and deters legitimate enterprise, foreign investment and development.

All criminal proceeds, excluding tax evasion, would amount to some $2.1 trillion or 3.6 per cent of GDP in 2009, according to the report. Of this total, the proceeds of transnational organized crime, such as drug trafficking, counterfeiting, human trafficking and small arms smuggling, would amount to 1.5 per cent of global GDP, 70 per cent of which would likely have been laundered through the financial system.

The illicit drugs trade, which accounts for half of all transnational organized crime proceeds and one fifth of all crime proceeds, is the most profitable sector, UNODC notes.

The report focused on the market for cocaine, probably the most lucrative illicit drug for transnational criminal groups. Traffickers’ gross profits from the cocaine trade stood at around $84 billion in 2009.

While Andean coca farmers earned about $1 billion, the bulk of the income generated was in North America ($35 billion) and in West and Central Europe ($26 billion). Close to two thirds of that total may have been laundered in 2009.

The findings suggest that most cocaine-related profits are laundered in North America and in Europe. The main destination to process cocaine money from other subregions is probably the Caribbean.

The report says that for drug-related crime, there tends to be a significant “re-investment” of illicit funds into drug trafficking operations which have major negative implications for society at large.

Once illegal money has entered the global and financial markets, notes UNODC, it becomes much harder to trace its origins, and the laundering of ill-gotten gains may perpetuate a cycle of crime and drug trafficking.

“UNODC’s challenge is to work within the UN system and with Member States to help build the capacity to track and prevent money-laundering, strengthen the rule of law and prevent these funds from creating further suffering,” said Mr. Fedotov.

Tweet