The Mafia Encyclopedia (12 page)

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Authors: Carl Sifakis

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Page 25
more from the pot in generaland from one another in particular. Finally Civella and Balistrieri requested Chicago crime leaders arbitrate their dispute.
Chicago boss Joey Aiuppa and Jackie the Lackey Cerone, his underboss, served as mediators. Their verdict, a classic, underlined the preeminence of power in the affairs of the "Honored Society." Aiuppa and Cerone decreed that henceforth Chicago itself would take 25 percent of the money skimmed. The case was closed with both Civella and Balistrieri coming out losers.
Perhaps under the circumstances the simplest thing for Balistrieri to do in December 1985 was plead guilty and take a 10-year sentence on the skimming charges.
Banana War: Fight for dominance in organized crime
From 1964 to about 1969, the last great war in which a leading Mafia crime family sought to take over a kingsized portion of organized crime was fought. If the aggressors had succeeded, they might have altered the underworld nearly as much as Lucky Luciano's purge of the Mustache Petes. This new conflict of the 1960s was triggered by an aging don of towering self-assurance, Joseph C. Bonanno, the head of a relatively small but efficient New York crime family, known by nickname as the "Bananas" family. The war was called the Banana War.
In a sense the war was inevitable. Had Bonanno not struck first, other Mafia leaders would have hit him, having become upset about his "planting flags all over the world." Bonanno had established interests in the West, in Canada and in Italy where, as later related by the Italian Mafia's celebrated informer, Tommaso Buscetta, Bonanno was instrumental in getting Sicilian mafiosi to establish a commission, American style, to deal with disputes among the 30 Italian crime families. If Bonanno had been allowed to develop close contacts in Sicily with this commission, he would have been in a position to tie up the entire drug traffic out of Europe. In a broader sociological sense the Bonanno drive demonstrated that America was being polluted less by Italian criminals than Italy was being corrupted by American criminals.
As Bonanno watched many of the older American dons fade away, he decided it was time to strike out for greater glory and more loot. He developed an attack program for eliminating in one swoop such old-time powers as New York's Carlo Gambino and Tommy Lucchese, Buffalo's Stefano Magaddino and Los Angeles's Frank DeSimone. Bonanno involved in his plot an old ally, Joe Magliocco, who had succeeded another longtime Bonanno friend, the late Joe Profaci, as head of another Brooklyn crime family. Magliocco's loyalty to Bonanno was beyond question and he went along despite misgivings and his own ill health.
The plot began to unravel when Magliocco passed along the hit assignment on Gambino and Lucchese to an ambitious underboss named Joe Colombo, who had been a trusted hit man in the organization for Profaci. Colombo weighed the situation and, not realizing the extent of Bonanno's involvement, decided the Gambino-Lucchese forces looked the stronger. Colombo sold out to them. It did not take Gambino and Lucchese long to determine that Bonanno was behind the plot.
The national commission treaded softly on the matter, realizing that Bonanno could put 100 gunmen on the streets of Brooklyn and Manhattan and produce a bloodbath on a level unwitnessed in this country since the Capone era. Bonanno and Magliocco were summoned to a meeting with the commission, but Bonanno contemptuously refused to attend. Magliocco showed up, confessed and begged for mercy. The syndicate leaders let him live, deciding he lacked the guts to continue the battle and was so ill he'd probably die soon anyway. He was fined $50,000 and stripped of his power, which was given to Colombo. This leniency, not typical for treachery in the Mafia, was aimed at encouraging Bonanno's surrender. Within a matter of months, Magliocco was dead of a heart attack.
Bonanno took off for the safety of his strongholds in the West and in Canada, keeping on the move while avoiding orders from the commission to come in. In October 1964 he returned to Manhattan to appear before a grand jury. On the evening of October 21, he had dinner with his lawyers. Afterward, as he stepped from a car on Park Avenue, he was seized by two gunmen, shoved into another car and taken away. The newspapers assumed Bananas had been executed.
While Bonanno was out of sight, war broke out within the Bonanno organization. The national commission ruled that Bonanno had forfeited his position and installed Gaspar DiGregorio to take charge of the family. This split the family in two with many members backing Bonanno's son, Bill, while still hoping that Joe Bonanno would come back. After considerable shooting, DiGregorio called for a peace meeting with Bill Bonanno. The confab was to be held in a house on Troutman Street in Brooklyn. When Bill arrived, several riflemen and shotgunners opened up on him and his men. The Bananas men returned fire but in the dark, everyone's aim was off. There were no casualties.
Meanwhile Bonanno had been held captive by Buffalo's Magaddino, his older cousin. The rest of the commission apparently did not deal with Bonanno directly but Magaddino conferred regularly with them. It soon became clear to Bonanno that the commission did not want to kill him because that would only lead to further
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bloodshed. Instead, negotiations were carried on while at the same time Bonanno's foes tried to wipe out Bill Bonanno and his loyalists.
Bonanno offered a deal. He would retire from the rackets, give up control of his crime family and move to Arizona. He wanted his son Bill and his brother-in-law Frank Labruzzo to take charge. The commission would not buy this, realizing they would just be puppets and Bonanno would remain in control. Instead, they said they would name the new family head. Bonanno was in no position to hold out and finally agreed.
Bonanno was released and then surprised the commission by not returning to New York but disappearing again. He was still out of sight when DiGregorio was named and the Troutman Street ambush was attempted.
In May 196619 months after he had been kidnappedBonanno reappeared. It soon became obvious to the other Mafia leaders that Bonanno had no intention of sticking to their arrangement. Upset with DiGregorio's failure to prosecute the war successfully, they dumped him and brought in a tougher man, Paul Sciacca. However, Sciacca could not handle a Joe Bonanno-led opposition. Several of his men were badly shot up in gun battles and in the most spectacular incident in the war three Sciacca henchmen were machine-gunned to death in a Queens restaurant. In short order five others on each side died.
Then in 1968 Bonanno, felled by a severe heart attack, flew off to his Tucson, Arizona, home. He sent word now that he was retiring, a statement the commission not surprisingly greeted skeptically. They continued to wage war in Brooklyn and appeared to make some moves against Bonanno and his followers in Arizona. A bomb went off at the Bonanno home, and, in a bizarre development a number of other bombs were exploded at other homes; some or perhaps all of these were planted by a rogue FBI agent.
Finally the conflict petered out and an arrangement was made. The Bonannos kept control of their Western interests but Sciacca (and later Natale Evola) was accepted as the boss of New York. The war was over and with it Bonanno's dreams of vast new powers.
It may be the Banana War made a valuable object lesson for the other Mafia leaders. When Bonanno's long-imprisoned underboss Carmine Galante emerged from prison in the 1970s, took command of the family and started a violent drive to extend his power, he was summarily executed. Galante was accorded no opportunity to come before the board and explain his actions.
Bank Manipulation by Mafia
The mob's interest in the banking system was undoubtedly triggered by its laundering problemsthe need to move safely its huge profits from gambling operations (especially casino skimming) and narcotics and other heavy cash-flow enterprises. With Mafia-financed banks, especially in Florida, this laundering requirement was fulfilled, as was the need for a stolen securities repository against which good-money loans could be written.
As the Mafia became more accustomed to the intricacies of banking, the mobsters began to see the banks as something worth robbing. As Slick Willie Sutton had maintained, they were "where the money is."
Many crime families engage in bank looting on a straight and simple basis. Operating through front men, mafiosi buy up enough shares in a bank to gain effective control and either install their own management or make existing management totally compliant to their wishes. Loans are then made to Mafia applicants and businesses. These loans are never repaid. If the banks have insufficient insurance and supervision, the depositors will take the loss.
Another even more sophisticated manipulation involves keeping the bank healthy and viable and using it to furnish phony statements of worth for mob figures who, in turn, are able to obtain loans from other banks. By scattering the loans to many banks around the country, it can be a long time before the original bank comes under suspicion.
The mob has also found it worthwhile to use a captive bank as an intelligence resource, since a bank can get financial information from other banks regarding any individual or company in the country. Banks share information with each other on a level financial reporting firms are unable to match. With such intelligence the mobster can zero in on logical victims or even check up on individuals ostensibly cooperating with them to make sure they are not enjoying more revenue than the criminals want them to have.
Bankruptcy Scams
The discovery of the bankruptcy laws must have been to the Mafia what the wheel was to early man. Bankruptcies are used by legitimate businessmen as protection from the collection of debts. Organized crime, having seen how easy it was to pull a bankruptcy scam, moved its operators in. According to one estimate by U.S. Justice Department sources, crime syndicates pull off at least 250 such scams or "bustouts" annually, all netting anywhere from a quarter of a million dollars up to several million.
The bustout is worked either by taking over an established company with a good credit reputation, the preferred method, or by setting up a new firm. To accomplish the latter, the New York crime families use a
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''front man" who has no criminal record and give him "nut money"anywhere from $30,000 to $100,000which is put in a bank to establish credit; the firm orders supplies that are quickly paid for in full. Then, as orders are increased, payments start coming through just a bit slower. It is very difficult for a supplier to turn its back on an account whose orders are increasing. When the orders become king-sized, business greed or hunger on the supplier's part tends to overwhelm its caution.
The mob concentrates on businesses with goods that can be turned over rapidly and thus shipped off to another company, often under control of the mob as well. Liquor supplies frequently go in the front door of a mob restaurant and bar and right out the back door. When the nut money is suddenly pulled out of the bank and the business is shut down, all creditors will find is a bankrupt shell of a company and absolutely no assets.
A mob restaurant-bar in Queens, New York, simply vanished with the placing of a sign in its window, reading: "Closed due to oven fire. Will reopen shortly." Of course, it never reopened and creditors found not a thing on the premises; all liquor, food supplies and furnishings were gone. If there had been an oven fire, it was not evident. The oven had been carted off as well.
Not long ago a conglomerate, stuck with a publishing division some $3 million in debt, was approached by a front man representing New Jersey syndicate operators who offered to take over the publishing company for $10,000 and the assumption of the $3 million debt. The parent firm jumped at the offer. It turned out the $10,000 was paid in the form of two rubber checks, but that very first week the mob got hold of a cash flow of $90,000 and made them good.
Then the publishing firm's creditors were contacted and told the past debts would be paid off over a period of 18 months but that they would have to continue to service the company's printing needs and that current bills would be paid as they came in. The creditors agreed and the operators soon ran up another couple of million in added debts.
The old bills were not paid nor were the newer ones. In the meantime funds continued to be siphoned out of the cash-flow pipeline. Expensive typesetting machines and electronic typewriters were ordered and quickly disappeared. In the end everyone dealing with the firm was stuck, except for the operator of a copy-machine firm who personally appeared to reclaim his machines, wheeling them out of the offices while threatening to run over anyone getting in his way. He had, he told an inquirer, been burned too often by scammers before.
The speed with which the mob can move in such a scam is illustrated by an operation by the Genovese family. They took over a large New York meat whole-saler after getting it in the family's debt and then insisting on putting in their own man as president to watchdog their money. Over a 10-day period poultry and meat were bought up at high prices and sold off at lower amounts. Then the Genovese man disappeared, leaving the company once more in the hands of the old managementwith the advice that it declare immediate bankruptcy. Everyone got stuck except the mob.
Barbara, Joseph, Sr. (19051959): Apalachin Conference host
The fact that the Apalachin Conference of 1957 was broken up by a New York State police raid couldn't help but throw Joseph Barbara Sr. into public attention. The owner of the mansion where the gangsters met, Barbara was dubbed "The Underworld's Host" by journalists. In fact, Barbara's home was the site of many underworld conferences, of national and regional scope. According to Joe Bonanno's memoirs, the Barbara mansion had been the site not only of the underworld's 1956 national convention but also of the election of members to the national commission for the next five years.
Despite the fiasco of 1957, the mob generally held conferences in safe areas, which the Barbara estate had otherwise been. Since Barbara was a regular Mafia host it would have been inconceivable that "protection" had not been taken care of; the underworld slates meetings only at areas deemed policeproof. According to Joe Bonanno, in his autobiography
A Man of Honor
(a work that might be deemed spurious for many of its claims, but credible concerning Apalachin), Barbara's connections with many law enforcement agencies had up until that time assured privacy. But over the year preceding Apalachin, Bonanno said, Barbara had been at odds with some law enforcement people over money matters.
Barbara had come to the United States from Sicily in 1921 when he was 16. He emerged in crime as an enforcer in Buffalo, New York, Mafia circles and was arrested several times in connection with a number of murders in Pennsylvania, then within the influence of the aggressive Buffalo family. One Barbara victim was believed to have been racketeer Sam Wichner, who came to Barbara's home in 1933 apparently to discuss business matters with Barbara, Santo Volpe and Angelo Valente, Wichner's silent partners in bootlegging operations. According to the police, Barbara personally strangled Wichner to death. However, as in all the other murder investigations, nothing that would stand up in court could be produced and Barbara remained free from prosecution. Throughout a criminal career that spanned more than three and a half decades Barbara

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