THE TYLENOL MURDERS

The city’s grim reputation is rooted back in the Roaring Twenties when Al Capone emerged victorious from gang warfare and went on to become a household name. Oddly enough, far less is known about his successors and their grip on the city during the last half of the twentieth century.But that is when Chicago’s Mafia became the single most powerful organized crime family in American history. While Mob bosses knocked each other off on the East Coast, in Chicago they united into a monolithic force called the Outfit. They would literally control the cops, the courts and the politicians – a corrupt trifecta that Capone dreamed about, but never came close to achieving. The Outfit demanded a cut of every criminal enterprise in the region, from a lowly car theft or private poker game to a jewelry heist. To enforce this “street tax,” their Hit Men killed with impunity, knowing that crooked judges would throw out any case against them. Their bookies brazenly took bets in nightclubs, at racetracks and even in government office buildings, confident that contacts in the police department (at one point as high up as the Chief of Detectives) would warn them before the vice squad could make a raid. Mobsters ran Chicago union locals, and national organizations for the Laborers and the Teamsters. This unprecedented combination of brute force and political clout let the bosses feed at the public trough with no-show jobs for their goons and municipal contracts for themselves and their associates. Government became one of their most lucrative rackets.

In his 1969 book, Captive City, investigative journalist Ovid Demaris called the Outfit, “the most politically insulated and police-pampered ‘family’ this side of Sicily” and estimated, even then, that their take was in the billions. With such total domination of their home turf, they could wander far and wide. By the Seventies, the FBI reported that Chicago’s Mob controlled all organized criminal activity west of the Mississippi – including and especially Las Vegas. Millions were skimmed from casinos like the Tropicana and the Stardust, and bundles of cash, stuffed in green army duffel bags, found their way back to the Outfit’s bosses. Meanwhile New York’s mobsters had to content themselves with the slim pickings of Atlantic City.

ORGANIZED CRIME AND THE LABOR UNIONS

PREPARED FOR THE WHITE HOUSE IN 1978

RE: CHICAGO LABORERS-PAGES 31-39

ORGANIZED CRIME AND THE LABOR UNIONS

This is a preliminary report on the organized crime influence in the labor unions today in the United States. The picture that it presents is thoroughly frightening. At least four international unions are completely dominated by men who either have strong ties to or are members of the organized crime syndicate. A majority of the locals in most major cities of the United States in the International Brotherhood of Teamsters (IBT), Hotel and Restaurant Employees Union (HRE), Laborers International Union of North America (Laborers), and International Longshoreman's Association (ILA) unions are completely dominated by organized crime. The officials of these unions are firmly entrenched; there is little hope of removing them by a free election process. Convictions for misconduct have been sparse and when one corrupt official is removed another soon takes his place. The result has been a complete domination of certain industries by hoodlums. Management personnel in the companies who must deal with these hoodlums have despaired of getting help from law enforcement authorities. They pay the price of labor peace so that they may survive. The cost is passed on to the consumer.

page 1

Action must be taken to eliminate this syndicate control. Not only is this syndicate domination a national disgrace, it is a threat to the free competition to certain parts of the economy.

Peter F. Vaira
Attorney in Charge
Chicago Strike Force

Douglas P. Roller
Attorney in Charge
Cleveland Strike Force

Page 2

Research and Intelligence Analysis for this report was performed under the direction of Hope Breiding, Intelligence Analyst and Research Coordinator, U.S. Department of Justice.

Page 3

PREFACE

This paper is an overview of the infiltration of organized crime in the labor unions of the United States. This is a preliminary report; other areas will be covered at a later date. After an initial period of research we decided to concentrate on the international unions which are most infiltrated by organized crime, and which pose the greatest threat to the economy. Without a doubt the worst are the International Brotherhood of Teamsters, International Longshoreman's Association, the Hotel and Restaurant Employees (this includes Bartenders and Culinary Workers) and Laborers International. We have sought to identify the major officers in these international unions and in most of the member local unions who are syndicate controlled, and the organized crime figures to whom they answer. This report is not intended to be exhaustive. There are hundreds of officers in these unions who are syndicate controlled in some manner. We have selected only the most significant and those which could be documented with more than a mere allegation.

There are many other unions which. are hoodlum infiltrated, such as the Laundry Workers and the Operating Engineers. Most

Page 4

of these unions are smaller in scope than the four mentioned above, and should be the subject of a supplemental report.

The information in this report is based upon reports made by the Federal Bureau or Investigation, Department of Labor and the Strike Forces. In each case attorneys and agents were interviewed to update the reports. Several journalists from national news organizations were interviewed, as well as investigative agencies outside the federal government.

Included in this report is a study of two cities, Chicago and Cleveland, as examples of how pervasive and disciplined the syndicate control can be, and the extent of the political and economic power which necessarily results.

New York City. Organized crime has a substantial foothold into the labor unions in the New York City area. Experienced investigators from the Labor Department list over 100 unions with members of organized crime or their associates in positions of power. The time schedule for the presentation of this report did not permit a thorough examination of the allegations and evidence concerning all these individual unions. Labor Racketeering in the New York area has been designated as the subject of a later report. The New York unions are set out in the Appendix to this report.

page 5

Teamster Central States Pension Fund. No attempt was made to analyze the organized crime influence in the Teamster Central States Pension Fund. The fund has been the subject of several investigations in the past two years by the Department of Labor and the Internal Revenue Service. There is much information which was uncovered by those two agencies however, a thorough summary of that voluminous information would have required much more time and man power than could be allotted for this report. 

The recommendations are preliminary, and are solely those of the writers of this report.

page 6

.

HOTEL AND RESTAURANT EMPLOYEES AND

BARTENDERS INTERNATIONAL UNION (HRE)

The Hotel and Restaurant Employees Union .represents the converse of the International Brotherhood of Teamsters. In the teamsters, the corruption and organized grime influence are a result from the massive infiltration of the local unions. The HRE on the other hand has been infiltrated from the top. This occurred as a result of the power wielded in the Chicago area locals and joint executive board by Joey Aiuppa, the underboss of the Chicago Syndicate. Edward Hanley was elected president of HRE International in 1973 on the power and influence of Aiuppa and the Chicago mob.

This is not to say that none of the locals are hoodlum controlled or that Hanley is the first corrupt president of the Union. Nevertheless, Ed Hanley represents the classic example of an organized crime take-over of a major labor union. Since his election, Hanley has moved to solidify his power, both in terms of the local Union officials and elements of organized crime. Likewise, the HRE, under Hanley's guidance has moved to insure support in the appropriate government circles by carefully selected and generous political campaign contributions.

The following is a summary of the International officers, their organized crime affiliation, and their method of operation.

page 7

I. UNION OFFICIALS

EDWARD T. HANLEY (International President) - Hanley was born in Chicago on January 21, 1932. His associates include Joey Aiuppa, organized crime boss of Chicago, and organized crime figures John Delasandro and Rich Conboys. Hanley's brother-in-law is Frank James Calabrese, burglar and loanshark collector. Hanley was hand-picked for his current position by Joey Aiuppa. Hanley started his union career in 1957 as Business Agent for Bartenders Local 450 in Cicero, Illinois, and held a similar post in Local 278 of the Chicago Bartenders union, both of which are tightly controlled by Aiuppa. In 1962 Hanley became president of the Culinary Workers Chicago Joint Executive Board, which is also under the control of organized crime. He became International President in 1973.

JOHN F. GIBSON (International Secretary-Treasurer) Gibson was the former President and a full-time Business Agent of Local 430, Miscellaneous Hotel Workers, St. Louis, Missouri. As a bartender in St. Louis, Gibson was a protege of Johnny Vitalk of the St. Louis organized crime family. He is also close to Morris Shenker, the powerful teamster lawyer

HERMAN "BLACKIE" LEAVITT (International Vice President) Leavitt was for years Secretary-Treasurer of Local 284, Bartenders, Los Angeles.

page 8

In 1968, Leavitt was sent by the International Union to Las Vegas to head the drive to organize the casino dealers. Local 7 was chartered and competed with the Seafarers Union in three NLRB elections. They lost all three - at the Sahara, Desert Inn and Silver Slipper.

During the organized drive Leavitt was in constant contact with Sidney Korshak, who was giving Leavitt advice on how to lose the elections.

HERBERT D. "PINKY" SCHIFFMAN (International Vice President) is also President of Local 355, HREU in Miami, Florida. In December, 1976, he was convicted of Title 29, United States Code, Section 186(b)(1)(d) for accepting gratuities from hotel owners. Schiffman is an associate of several southern organized crime figures.

J. BELARDI (International Vice President) - is also president of the major local in San Francisco. He is a close associate of Tony Romano, a lieutenant in the Buffalo organized crime family who has recently moved to the San Francisco Bay area.

Hanley has increased the ranks of organizers for the International from 27 to 104 during his tenure as President of

1/ Korshak at that time was the Labor Relations Consultant for the Strip Hotels.

page 9

the Union. The increase in funds spent for organizing amounted to $4,800,000. In spite of this, the membership rolls of the Union have declined. Many of the persons placed on the payrolls as organizers are organized crime figures or friends of Hanley, mostly from Chicago. A few of the more noteworthy examples are as follows:

JACKIE PRESSER (International Organizer), was put on the International payroll one month after HANLEY assumed office and received $11,000 salary, $4,630 allowances and $301 expenses, for a total of $15,391 for Fiscal Year 1974. Until recently Presser was also President of Local 10, HREU, Cleveland, Ohio. The organized crime affiliation and involvement of Presser through, and independent of the Teamsters Union are well documented.

JOHN LARDINO (International Organizer) - is a major organized crime figure in Chicago. He asserted his Fifth Amendment privilege 73 times in testimony before the McClellan Committee, mostly in response to questions concerning his associations with Joey Aiuppa and other organized crime figures.

PAT BATTISTA (International Organizer) - is also president of the Local 278, Chicago. He recently purchased a home in Palm Springs for $89,500. He is also an associate of Joey Aiuppa. Battista was placed on the payroll shortly after Hanley assumed office.

page 10

ANTHONY SPANO International Organizer) - Spano is both a union organizer and the full time head of Cicero Local 450, where Hanley began his union career. The close relationship between Spano and organized crime is exemplified by an incident that occurred in 1968; a free parking permit for Arlington Park racetrack issued to Local 450 ended up on the car of Tony Accardo's wife.

TED HANSEN is a former Chicago fireman with no prior labor experience. He is Hanley's brother-in-law. Likewise, John O'Gara and Joseph McLaughlin are organizers with no prior experience. Both are Hanley's cousins.

The following is a summary of "he criminal influence in key HRE locals across the country.

Local 50 HRE - Hayward, California. Secretary Treasurer Joseph Medeiros is closely associated with Abe Chapman and Anthony Romano, Northern California Organized Crime Figures. Medeiros has often been suspected of committing arson against hotels while attempting to organize them. Medeiros is also under investigation for inflicting beatings upon union members during an intra-union power- struggle.

Local 30 HRE - Los Angeles.. The Secretary Treasurer, Joe Tinch, was allegedly hand-picked for this position by Los Angeles LCN figure Joseph John LiMandri.

page 11

Local 151 HRE - Atlanta. This local is controlled by Hanley supporter Herbert "Pinky" Shiffman. Shiffman who is also the President of a Miami local and an International Vice President, was recently convicted of accepting a discount for a room at an Atlanta hotel where his members are employed. Another Hanley man is President of Local 151, John T. Timperio.

Local 64 HRE - Kansas City. This local was formed as a result of a merger of 4 locals by the International. During the two years it was in receivership, the local was run by Michael Salerno, hand-picked by Hanley. Salerno is under investigation for allegedly embezzling organizing funds disbursed to him by the International. When the local was taken out of receivership in 1976, Baldasaro Palmentere, former bagman for Nick Civella's right hand man, Danny Lawson, appeared as the Secretary Treasurer of the local. Hanley supported Palmentere who according to DOL is trying to gain control over all the locals' funds.

Local 278 HRE - Chicago. The President is Pat Battista, also an International organizer. He was placed on the payroll soon after Hanley assumed the presidency of' the International. He is an associate of Chicago LCN member Joey Aiuppa.

Local 304 HRE - Chicago. Mickey Cogwell was president this local prior to his fraud conviction in the early 1970's.

page 12

Local 450 - Chicago. This local was started in the 1930's by organized crime boss Joseph J. Aiuppa. Hanley was a business agent- for the local in 1961.

Local 10 - Cleveland. Jack Presser, Cleveland LCN figure, and Teamster International Vice President, is former president of this local. He resigned when the DOJ began an investigation of the International Union. Jack Lubin, Vice President, is convicted arsonist. He is a principal subject in a Strike Force investigation involving a massive fraud on the Northern Ohio Bank.

.

Local 66 - Buffalo. Local president, Sam Cariola is an associate or Jimmy LaDuca, Buffalo LCN member, and an attendee of the famous Appalachia organized conference in 1958.

There is a suspected sweetheart contract between this local and the Costintino Hotel chain, which is owed LCN interests. The result of the sweetheart contract is that once employees are hired by the hotel chain, they are transferred to other HRE locals where wages and benefits are lower.

page 13

THE INTERNATIONAL LONGSHOREMAN'S ASSOCIATION (ILA)

The International Longshoreman's Association has a long history of organized crime influence. The New York Waterfront Commission was created in the 1950's to combat the corruption which was so pervasive on the piers at that time. A powerful novel "On the Waterfront" by Bud Schulberg was written in the 1950's about the Brooklyn waterfront. The situation today has changed little. Nearly all the international officers of the ILA are under the control of organized crime.

The union is the subject of one of the most concentrated Department of Justice investigative efforts in the country. Numerous ILA officers are under investigation for shaking down steamship and stevedoring companies. The corruption is so rampant that investigators assigned to the case feel that every international officer must be placed under scrutiny.

Doug Rago, an international vice president, is a member of the organized crime syndicate. He is generally conspicuous by his absence from the general offices. He answers directly to Anthony Salerno of the New York Genovese family.

The two officers of the ILA who are the major syndicate frontmen are Anthony Scotto, in Brooklyn, and George Barone, in Miami. The Eastern seaboard is divided up under their jurisdiction.

page 14

Anthony Scotto is president of Local 1814 in Brooklyn and an assistant general organizer of the international union. He began his career in Local 1814, under the guidance of syndicate figure Anthony Anastasia, his relative by marriage. He is a front for the New York Gambino family. Scotto was once hailed as a new breed of longshoreman union leader. He was appointed as a delegate to the International Labor Organization by Presidents Johnson and Nixon. He is currently a labor advisor to New York; Governor Carey. The FBI reported in December, 1973 that prior to attending one of the international conferences Carlo Gambino, New York mafia chieftan, summoned Scotto and gave him an envelope to deliver to an individual in Palermo, Sicily during his visit. In the late 1960's the New York Waterfront Commission held hearings on Scotto and his alleged interest in a business which received a quarter of a million dollar loan from a bank which had received $700,000 in ILA deposits. Scotto was also the subject of the McClellan hearings in 1969 Scoto is responsible to the Gambino for ILA activities north of Norfolk, Virginia.

George Barone is president of Local 1922 in Miami and an international vice president. He controls the ILA territory

page 15

south of Newark, New Jersey for the syndicate. There is evidence that Barone delivers payoff money directly to Doug Rago in New York. Barone is generally supervised by Fred Field, an international organizer from New York. Field was indicted in New York in 1976 for taking a $100,000 payoff from United Brands Fruit Company to allow delivery of produce during a strike.

George Boyle is vice president of the Local. Both Barone and Boyle are targets of the current Department of Justice investigation 'or taking payoffs.

The syndicate controlled ILA leaders extract money for labor peace. They also direct steamship companies to the stevedoring, container repair, and service companies which are to be employed. These favored companies either pay the union leaders for their efforts, or are owned or controlled by the syndicate. Those companies which do not pay simply do not get business. Steamship companies know that using an unauthorized company will result in slowdowns and breakage Any amount of delay in unloading or loading a ship is tremendously costly. Every hour is worth thousands of dollars.

In addiction companies are forced to place hoodlums or their relatives on their payroll. For example, a son of

page 16

a New Jersey syndicate boss works for a steamship company in New Jersey. His job is to award contracts .to container repair companies. He owes his job to mafia influence. An associate of the Genovese family was placed on the payroll of a marine repair company in Staten Island by Anthony Scotto. He has absolutely no experience to justify his position.

Sweetheart contracts with the ILA take many forms. A common one is to allow a stevedoring company to have only a few union workers. The remainder are nonunion, earning as little as $3.00 per hour with no health and welfare or pension benefits. The profit benefit to the stevedoring company from such an arrangement is tremendous, permitting it to out bid other competitors. The price for such a contract is a substantial payoff to the union leader which is passed on to the organized crime syndicate.

These abuses are common throughout the jurisdiction of the ILA. The result is that the shipping industry is controlled completely by the LCN. The syndicate dictates who does business on the east coast and in what manner. No competition prevails. The flagrant operation of the syndicate and the ILA is a national digrace.

page 17

INTERNATIONAL TEAMSTERS

The International Brotherhood of Teamsters has long been dominated and indeed captivated by organized crime. Much has been written about this infiltration. It would be little more than repetitious to catalogue here the past abuses in the Union, particularly in the mismanagement of the Central States Pension Fund. One factor, however, appears quite evident by even a superficial review of the growth of the Teamsters over the past several years: Although there have been numerous prosecutions of high ranking Teamsters officials (e.g. Williams, Presser, Allen Dorfman, and Jimmy Hoffa) the domination of the Union by organized crime has gone unchecked.

Part of the problem of dealing with the organized crime infiltration of the Teamsters is a basic lack of concrete inside information. Although the files of the Justice Department are replete with examples of specific transactions involving numerous Teamster officials an overall review of the nationwide organized crime influence in the Union is difficult to prepare because of a lack of centralized intelligence. The recent investigation into the abduction and murder of James R. Hoffa has provided fresh information. Information developed during the Hoffa investigation has demonstrated the strong

page 18

links between organized crime figures such as Anthony Provenzano, Rosario Bufalino, Anthony Giacalone, Guv Guarnieri, Salvatore Provenzano, Angelo Bruno, Salvatore Briguglio and the Teamsters officials.

The investigation revealed clearly that Frank Fitzsimmons is closely associated with and is in continual contact with Anthony Provenzano, Anthony Giacalone, and Rosario Bufalino. Even more disturbing is that the Hoffa investigation disclosed that decisions directly affecting the operation of the International Brotherhood of Teamsters and the selection of its leaders are controlled completely by organized crime. Anthony Giacalone, Anthony Provenzano, Rosario Bufalino, Mattie Ian and others directed the murder and the obstruction of the investigation that followed.

Angelo Bruno head of Philadelphia LCN family has been instrumental in maintaining control of the witnesses from the New Jersey-Pennsylvania area who have appeared before the Detroit Grand Jury.

Organized crime not only controls Frank Fitzsimmons; but Union officers at all levels. International Vice President and organizer William J. ,McCarthy, is closely linked to Gennaro Angiulo of the Boston LCN. McCarthy is said to utilize the

page 19

syndicate's muscle to maintain his power. This power solidifies not only his position in the two international offices he holds but also as president of joint council 10 and local Union 25.

International Vice President Roy Lee Williams and Samuel Ancona, a general organizer, are closely associated with the Nick Civella organization in Kansas City.

William Presser is a major international officer allied with organized crime. His ties to the crime syndicate are spread across the country. He began his rise to power in Cleveland through the sponsorship of Anthony Milano, consiglieri of the Cleveland LCN family. Presser is a confidant of Anthony Liberatore, a convicted murderer, president of Cleveland Laborers Local 860, and a member of the Cleveland Sewer Board.

Presser also has an association with the LCN families on the west coast through Anthony Liberatore's brother John who is involved in the LCN structure in Los Angeles, and Peter John Milano, Anthony's son, who is also an LCN lieutenant in Los Angeles. Presser is connected to the Detroit syndicate through John San Filippo, Business Agent of Cleveland Teamster Local 346, who is allied to the Luanoli brothers of Detroit and Cleveland.

The ramifications of this LCN power are awesome. Witness the arrogant act of the murder of James R. Hoffa who was most

page 20

likely killed because of a fear of his potential rise to power to challenge the present union hierarchy.

Thus there is a nationwide "shadow" governing body supervising the affairs of one of the largest and most powerful Unions in the country.

The key to the controls of the international union is a continued domination of the major local unions throughout the country. The following review or hoodlum dominated locals illustrates the magnitude of the infiltration of the International Brotherhood of Teamsters by the crime syndicate.

page 21

Local 25 IBT - Boston. President William McCarthy is a close associate of Boston LCN figure Gennaro Angiulo.

McCarthy uses the Winter-Hill syndicate gang to help enforce his union policies. Local 25 is under investigation by the FBI and Department of Labor for misuse of union funds. There is a suspected alliance between Sal Provenzano of New Jersey and McCarthy. There is also a connection between Local 122 IBT and Local 25. Most recently officers of Local 122 have been successful in putting members of the Winter-Hill gang on the payroll of a local Budweiser plant, although all these men are all members of Local 25.

Local 398 - Buffalo. The vice president, Sam Campanella, is a syndicate member and an associate of Sal Gingello, Rochester underboss. John Frorino, a syndicate member, is a union steward. Capo Richard Morino served as a trustee of this local until his conviction for murder. James Canarozzo, svndicate associate, `'as Secretary Treasurer until he was convicted of a felony in 1976.

Local 693 - Binghamton Has been infiltrated to such an extent that de facto control is in the hands of syndicate bosses Russel Bufalino of Northeastern Pennsylvania and Guv Guarnieri of Binghamton.

page 22

Local 124 IBT - Detroit. Indictments and investigations have ousted Richard Fitzsimmons and his cohorts from Local 299. These individuals have now moved to start a new union, 124 Steelhaulers. They plan to take the truck drivers who haul steel to the auto companies and transfer them to Local 124.

They also plan to divert some funds to the new union. Some of the steel hauling companies are owned by organized crime figures. Through the use of sweetheart contacts with the hoodlum companies and labor slowdowns against their competitors, the syndicate will thereby control the steelhauling market in the Detroit area.

Local 614 IBT - Detroit. Joseph Bane, Secretary Treasurer, has recently been convicted of embezzlement of union funds and mail fraud. There is also a current investigation involving Bane, Frank Ryan, President of Industrial and Miscellaneous Worker, in an attempt to organize Vlasic Pickles. Bane and Ryan threatened to organize the drivers of Crowell Trucking, the freight hauler for Vlasic, unless Crowell made payments to Bane and Ryan.

page 23

Local 985 IBT - Detroit. The president of this union is William E. Bufalino, Jr., an attorney, and an old James R. Hoffa associate. Bufalino is currently coordinating the witnesses in the James Hoffa disappearance investigation. Bufalino has close ties to the Giacalones of Detroit, the Provenzanos of New Jersey, and Russel Bufalino, the boss of the Northeast Pennsylvania syndicate.

Ohio States Conferences of Teamsters - William Presser is the Chairman of this conference. His son, Jackie, is recording secretary, and John J. Felice, a confidant of Jimmy Hoffa, is Trustee.

Teamster Joint Council 41 IBT Cleveland - William Presser is the President and Jackie Presser is Vice President of this organization. John J. Felice, Jr., is recording secretary. John J. Felice is very close to Chuck O'Brien and Tony Giacalone. Also an employee of Joint Council 41 prior his death was John Nardi a major figure in the organized crime community in the Cleveland area.

Locals, 73, 293, and 796 IBT Cleveland - All three of these Teamster Locals are controlled by John J. Felice, Jr. In Locals 73 and 293 he is the Secretary Treasurer and his father is President. In Local 796 he is also Secretary

page 24

Treasurer with Jackie Presser being the President. As mentioned above Felice is a confidant of Chuck O'Brien and Tony Giacalone.

Local 856 IBT - Northern California. Rudy Tham, Secretary Treasurer, is associated with syndicate figures Jimmy Fratianno, Bernie Barish, Abe Chapman and Anthony Romano. Tham also serves as recording secretary or Joint Council 7, which is headed by Jack Goldberger, an associate of James Duardi and Fratianno.

Local 416 - IBT Cleveland. This local has long been a haven for members of the Cleveland LCN. A former official Pat Catalano was murdered in 1965 as the result of a gang war. Nick Nardi, the current Secretary Treasurer is a brother of the later Nick Nardi who was killed in May 1977 in a LCN power struggle. Nick Nardi, as was his brother, is a member of the Cleveland LCN.

Local 410 - IBT Cleveland. The former Secretary treasurer, John Nardi, who was recently murdered, has been identified as a member of the LCN. He has been involved in the investigation of a murder of an Akron, Ohio contractor.

Local 703 - IBT Chicago. This union represents the produce haulers. The Secretary Treasurer is Dominic Senese, a Chicago syndicate member and a relative by marriage of Anthony Accardo, Chicago Syndicate head. Senese is a powerful man in the

page 25

the Teamsters Union, and has been rumored for a job with the international. He is currently under investigation for taking payoffs for awarding health and welfare insurance contracts for his union to a syndicate company.

Local 714 IBT - Chicago. This local represents the exhibition contractors who set up trade shows at Chicago exhibition halls. The union is used by the Chicago syndicate for giving hoodlums jobs by placing them on the payrolls of the contractors. The union also shakes down contractors, forcing them to accept unwanted labor and selling them cleanup services. David Kaye, chief steward at McCormick Place Exhibition Hall, was recently convicted by the Strike Force on 74 counts of Taft-Hartley violations for forcing contractors to place him on a number of payrolls at the same time.

Local 727 IBT - Chicago. This union represents chauffeurs, funeral drivers, greasers and wash rack attendants. The secretary treasurer is James Eco Coli, a syndicate member. He is currently under investigation for misuse of union funds.

Local 705 IBT - Chicago. This is the largest Teamster local in Chicago. The union was recently under investigation for taking $2,000 per month in payoffs to allow Pacific Inter-

page 26

Mountain Express to deliver certain commodities without union drivers. The money passed through a paper company owned by a syndicate lieutenant.

Local 777 IBT Taxi Drivers - Chicago. This union is controlled by Joey Glimco, long time syndicate powerhouse in the union movement. Glimco is the henchman of Joey Aiuppa and Anthony Accardo. His influence extends far beyond his control of Local 777.

Local 239 IBT - New York. LCN member Anthony "Ducks " Corallo has always maintained control over this local which represents retail automobile salesmen. None of his relatives have appeared on the officer roster since the passage of the Landrum-Griffin Act. However, recently, his son has appeared on the local's roll as trustee.

Local 814 IBT - New York. The president is LCN member Saverio Aiello who is actually controlled by LCN member Orlando Caralluzo. This local controls the commercial movers in New York.

Local 295 IBT - New York. This was originally a paper local set up in the late 1940's by Johnny Dio and Abe Gordon. Harry Davidoff was one of the original officers. Davidoff recently turned the local over to his son Mark. Mark Davidoff

page 27

has recently been attempting to join all IBT locals who have organized airport freight handlers in a single group. This association of unions would thus have control over all freight operations at all the major New York airports, this giving Davidoff power to extort and shakedovm the airports. So far this attempt has been unsuccessful.

Local 805 IBT - New York. Abe Gordon, a Johnny Dio associate, is also the president of this local. He is currently under investigation for shaking down Japanese electronics firms.

Local 41 IBT - Kansas City. Roy Williams, Secretary Treasurer, is a powerful national teamster. Williams' ties to the syndicate date back to the early 1960's. At that time he was under indictment for embezzling union funds. The chief witness, Floyd Hayes, was shot gunned to death.

Law enforcement officials believe that Williams went to members of the Nick Civella family to have the killing done. Since then he has been in debt to the syndicate. Sam Ancona, a local organizer, is the go-between for the syndicate and Williams. Some observe believe that Williams is being groomed to take the place or Frank Fitzsimmons when he leaves office.

page 28

Civella, through Local 41, forces a local cartage company, Yellow Freight Lines, to put his otherwise unemployed hoodlums on the payroll.

Local 560 - New Jersey. Salvatore Provenzano is the current president although Anthony Provenzano is believed to be active in running the local. Sal Briguglio, Anthony Provenzano, Harold Koeingsburg are being investigated by the FBI for the kidnap murder of Anthony Castellito, a former 560 official in the early 1960's. Information has come to light through a witness who has recently agreed to testify against the participants. The Provenzanos and Briguglio are major subjects in the Hoffa investigation.

Joint Council 73 - New Jersey. Gerardo Catena, New Jersey syndicate boss, controls the Joint Council. Catena reportedly has the veto power over the establishment of any teamster chapter in New Jersey.

Local 810 IBT - New York. Milton Silverman, closely tied to Johnny Dio and Abe Gordon, is still unofficial power in the union, following his conviction of misuse of union funds. Silverman is under investigation for his part in a strike breaking effort against a rival local.

page 29

Local 182 IBT - New York. Officials of Local 182 are under investigation by the FBI for negotiating a sweetheart contract between the local and the P & R Corp., a company run by Guv Guarnieri, Binghamton syndicate leader.

Local 35 - Philadelphia. Frank Luicidi and Samuel Guidotti, local officers, are associates of Philadelphia syndicate boss Angelo Bruno. Both are under investigation for Taft-Hartley and Pension Fund violations.

Local 500 - Philadelhia. Secretary Treasurer William Brown is connected with syndicate lieutenant Frank Sindone. Brown is supposedly receiving kickbacks from payments made to a labor relations company by Food Fair Stores in return for labor peace.

Officials of Local 500 are also under investigation for receiving kickbacks from an administrator of. the severance pay fund.

Local 326 - Wilmington, Delaware. Secretary Treasurer Frank Sheeran is a former chauffeur for Russel Bufalino, Northeast Pennsylvania syndicate boss. Sheeran is under investigation with Bufalino and Philadelphia syndicate figure Robert Rispo for selling labor peace through Country-Wide Personnel, a company operated by their associate Eugene Boffa.

page 30

LABORERS INTERNATIONAL OF NORTH AMERICA (LABORERS)

This union generally represents unskilled manual laborers in the construction field. It has long been subject to organized crime control. The international president is Angelo Fosco, who succeeded to the office after the death of his father, Peter Fosco. Peter Fosco was the first ward committeeman of Chicago before he became an officer of the union. Peter Fosco's ties to organized crime go back to Al Capone. Angelo Fosco has followed in his father's footsteps. He is the tool of the crime svndicate. Major decisions regarding Laborers' union contracts are made by organized crime leaders, not Angelo Fosco. In Chicago Fosco follows the orders of Al Pilotto and Vincent Solano, two local union presidents who are also LCN lieutenants, and Joey Aiuppa, underboss of the Chicago syndicate.

The same syndicate control is apparent in other parts of the country. Jimmy "Blue Eyes" Alo(sp) of the New York Luchese family oversees the Laborers union activity in the Miami area. Similar organized crime infiltration can be found in Cleveland, St. Louis, Buffalo, and New York.

The following summary of the infiltration of some of the major locals across the country will indicate the influence of organized crime in the Laborers International Union.

page 31

Local 5 - Chicago. The president of this local is Alfred Pilotto, former bodyguard for the late Frank LaPorte, syndicate boss of the Calumet City-Chicago Heights area. Following LaPorte's death in 1973 Pilotto took over the syndicate control of the illegal activities in that area. His close associate is Al Tocco, recently released from federal prison. Pilotto is one of the five major lieutenants of the Chicago syndicate. In addition to his kickbacks for union activities, he receives a portion of the profits for gambling, loan sharking, and auto theft in south Chicago.

Local 1 - Chicago. The president, Vincent Anthony Solano, is a ruling member of the Chicago LCN. In addition to his duties as labor leader he also controls the illegal activities on the north side of Chicago. Joseph Aiello and Salvatore Gruttadauro, two Local 1 business agents, are also known LCN members. No one without hood connections can aspire to leadership in this Local.

Local 767 - Miami. Because of the surge or construction in the past ten years in the Miami area, a number of hoodlums have moved from New York to Miami and have entered the Laborers union in that area in order to gain control of the construction business. The most conspicuous is Local 767.

page 32

The Local president John Giardello, recording secretary and business agent Sal Tricario, and business agent Joseph Giardello, are connected with organized crime figure Johnny Dioguari of the New York Luchese family.

The attorney for the local union and the union trust funds is Seymour Gopman who is under investigation both in Miami and in Chicago for income tax evasion and kickbacks in violation of 18 U.S.C. 1954. Gopman is also under investigation in Miami for. participating in making union loans to Louis "Treetops" Imburgia, a syndicate associate from New York.

Gopman encouraged Local 797 officials to authorize $735,000 in loans to several companies, two of which have Imburgia participating in their operation, and a third in which Gopman and Laborers southeast district council president Bernard Rubin have an interest. Laborers District Council of Southeast Florida. Bernard Rubin is the president of the Laborers District Council of Southeast Florida. He has recently been convicted by the Miami Strike Force on 103 counts of embezzlement of union funds.

If Rubin's conviction is upheld, his position will most likely be filled by John Giardello, a henchman for the Luchese family. Bernard Rubin has allowed over $4OO,OOO in union funds to be

page 33

loaned to the Sage Corporation, an international development company headed by Canadian organized crime figure George Wuaneaux.

Local 110 - St. Louis. A business manager of the Local is D. Raymond Massud of the Syrian faction of the St. Louis syndicate. His son, John Massud, serves on the executive board. Leo Briguglio, an associate of Anthony Giardano, St. Louis LCN boss, is also on the executive board. Anthony Leisure, also a member of the Syrian faction, and a suspected fence, is a business manager. Francis Michaels, brother of Jimmy Michaels, head of the Syrian faction, is employed as an organizer. Matt Trupiano, a suspected member of the LCN, now an international representative, was an organizer for Local 110 until 1974.

Local 42 - St. Louis. The individuals in power in this Local were once a part of the late Buster Wortman gang. T. J. Harvel, president, is a strong arm man and a retired burglar. He was a close friend of mobster Lou Shoulders. Harvel was with Shoulders on the ill fated fishing trip in 1972 when Shoulders was killed in a violent explosion upon starting his car. Harvel is also secretary treasurer of the East St. Louis Laborers District. Council. Harvel's son is a business manager for Local 42.

page 34

Ray Flynn, an active fence who is currently under investigation by the FBI for interstate transportation of stolen property, is employed as a business manager. Frank Shoulders, brother of the late Lou Shoulders, is a business manager.

Local 210 - Buffalo. This Local is controlled by Joseph A. Pieri, a capo of the Buffalo LCN. His relatives, Joseph R. Pieri and John Pieri, also LCN members, are business managers. The following members of the Buffalo LCN are also officers:

Angelo Massaro - Business Manager

Joseph Todaro, Jr. - Business Manager

Victor Randaccio - Secretary Treasurer

Sam Caci - Trustee

Daniel Sansanese, Jr. - Trustee

Local 860 - Cleveland. Tony Liberatorte(sp), business manager,(see page 51) has served 20 years for a conviction for the murder of a policeman. He has recently been appointed to serve on the Cleveland Sewer Board despite heavy criticism from the press. In 1973 Liberatore supplied $150,000 in stolen securities to Harry Hall, a teamster hanger-on, for sale in Chicago.

page 35

CHICAGO

A classic example of the infiltration of labor unions by organized crime is in the city of Chicago. Al Capone was successful in dominating the labor movement in the 1930's in order to control legitimate businesses. That domination continues today. Nearly every major local of the Teamsters, Hotel and Restaurant Employees (Bartenders), Laborers International, as well as other unions within the city are controlled by the LCN.

Until his death in 1974 syndicate underboss Paul "The Waiter" Ricca appointed most officials of Chicago's major unions. After Ricca's death the power of appointment fell to Joey Aiuppa, the chief henchman of Anthony Accardo. In return Aiuppa receives a large share of the shakedowns and kickbacks. Problems in union discipline or with recalcitrant employers are solved with muscle supplied by Aiuppa.

The most striking and dramatic evidence of the hoodlum control in Chicago is in the Laborers International. In the 1960's the president of Local 1001, which represents the city street and sewer. workers, was Frankie Esposito (Frankie the X). Esposito was put in power by Sam "Mo Mo" Giancanna, then the syndicate boss. FBI electronic surveillance disclosed that

page 36

Esposito had angered Giancanna. Giancanna dispatched a team of hitmen headed by Jackie Cerone and James ""Turk" Torello to kill Esposito who was vacationing in Florida. According to tape recordings of the electronic surveillance, the killers planned to do away with Esposito, cut up his body in small pieces, and feed it to the sharks off the Florida coast. Esposito was warned of the plot by the FBI and he subsequently cooled the problems with Giancanna. He continued to act as president of the powerful union until his natural death in 1967. Esposito's nephew, Anthony Esposito, Jr. was the secretary treasurer for two years until he was convicted of selling cocaine. The current president, Joseph Spingola was appointed to his position by Paul "The Waiter" Ricca.

Local 5 of the Laborers is headed by Al Pilotto, one of the most powerful men in the country in the international union. Pilotto, like his counterpart Vincent Solano in Local 1, also holds a position of power in the Chicago syndicate. The men are two of the five lieutenants under Joey Aiuppa who control the illegal activities in the city. Solano has charge of gambling, prostitution, shakedowns on Chicago's north side, while Pilotto performs the same functions on the city's south side. Pilotto's power base

page 37

is Chicago Heights, which has been an organized crime stronghold since the days of Al Capone. Pilotto's brother Henry is the chief of police in Chicago Heights. Gambling, loan sharking, and other illegal activities thrive in Chicago Heights under the police protection. One of the most lucrative stolen car chop-shop operations in the country operates in that area because of the protection of the Pilotto brothers. They have fostered the operation of William Dauber, a hitman who has thirty killings to his credit.

Local 1 Laborers. The president of this local is Vincent Solano mentioned above. Solano, a syndicate lieutenant, was the chauffeur, bodyquard and companion of the late Ross Prio, the boss of Chicago's north side until his death in 1972. Solano inherited the territory after Prio's death. Also in this local are syndicate associates Joseph Aiello and Sal Gruttadauro, both union business managers. Gruttadauro has a brother who is a syndicate operative in the Gary, Indiana area. Gruttadauro was a close associate of Fiore Buccieri, LCN lieutenant until his death in 1972.

Frank De Monte and Frank Colaianni are two other syndicate associates who are business agents of Local 1.

page 38

Chicago Laborers District Council. Secretary treasurer of this organization is James Caporale, a lieutenant of Pilotto. Pilotto, Solano, and Caporale control Laborers International president Angelo Fosco.

Most recently the Chicago Strike Force uncovered a scheme in which Pilotto, Fosco, Caporale, and Dominic Senese of Teamster Local 703 were receiving payoffs from Consultants and Administrators, a small company owned by a syndicate associate which supplies medical services to members of their locals. Each received $l,OOO in cash per month plus a percentage of the gross receipts of the company. Payoffs also went to Joey Aiuppa who had the final approval of the contracts. This information was supplied by an officer of Consultants and Administrators who had actually made some of the payments. The FBI executed a search warrant for the company office at the time the payoff money was kept in a desk drawer awaiting distribution. Over $12,000 was seized in separate envelopes. Each envelope contained $1,000 except that intended for Aiuppa. That envelope contained over $5,000.

Teamsters.

The teamsters locals in Chicago are a reflection of their corruption-riddled International.

page 39

Local 703. This union represents the Produce and Dairy Haulers. The secretary treasurer is Dominic Senese, a relative through marriage of Anthony Accardo, the syndicate boss. Senese is a close associate of Joey Glimco, the syndicate's power man in the labor unions. Senese was Glimco's leg breaker when Glimco took control of Local 777. Senese took the Fifth Amendment when subpoenaed before the McClellan Committee in the late 1950's. Senese is a powerful man in the labor movement, and is rumored as being considered for a post in the international union. He was named Man of the Year in 1975 by the Joint Italian American Civic Committee of' Chicago.

Local 714. This local represents the men who carry and set up the exhibition equipment in McCormick Place Exhibition Hall. Because McCormick Place is one of the largest and busiest exhibition halls in the United States this union wields tremendous power. Any delay in a trade show or convention incurs irreparable damage. Exhibition contractors cannot protest the slightest demand from the union. As a result the chief steward who supplies the manpower to the contractors is all powerful and can demand extra pay, extra benefits, and force the contractors to take on some of the

page 40

most unsavory individuals--convicted felons, dope peddlers, cartage thieves, as workers on their crews. Many such workers will not show up for work or steal the merchandise while they are collecting a full days pay.

The last two chief stewards have been convicted in federal court and have been sent to jail for shakedowns. Davey Kaye, the latest steward, spent eight years of a twenty year sentence in Florida for shooting a recalcitrant union member and dumping him in a canal. Kaye was convicted in 1976 by the Chicago Strike Force on 74 counts of taking money from employers in violation of the Taft-Hartley law. Local 714 has made a point of placing organized crime figures on the payrolls of exhibition contractors.

There was a major scandal in October, 1976 when the Chicago Tribune reported that Rocco Infelice, syndicate member, and Mario Garelli, his associate, both on appeal bond after being convicted of distributing heroin, had been placed on the payroll at McCormick Place by David Kaye.

Local 714 has been designated as the local which will attempt to organize the Chicago Police in 1977.

Local 727. This is a small union of slightly over 3,000 members. It is the personal fiefdom of James Eco Coli, syndicate member, burglar, convicted armed robber and strong

page 41

arm man. He is a close associate of Joey Aiuppa and Anthony Accardo. Experienced investigators have termed his misuse of union 'funds as one of the most egregious abuses of union power they have seen. For example, the union usually takes in approximately $400,000 per year in union funds. In one year alone Coli had $150,000 paid to himself for salary and benefits. The union constitution, carefully drawn by some of the best labor lawyers, vests all power in Coli to give raises and benefits. Coli is currently under investigation by the Chicago Strike Force for misuse of union funds.

Local 705. This local is one of the largest local unions in Chicago. Recent FBI investigations have revealed that some unidentified union officials at the highest levels within the union were getting $2,000 a month in kickbacks from a major trucking firm for exceptions to their contract for hauling special commodities into Chicago.

The conduit was a sham company run by organized crime figure George Dicks, a strong arm man for Gus Alex. These contract exceptions could not have been allowed without concurrence from top union officials.

Local 777 Taxi Drivers. Secretary treasurer of this local is Joey Glimco, whose true name is Giuseppe Primavera, one of the most feared and powerful men in the Chicago labor

page 42

movement. He has been in labor politics since 1933 when he was an organizer for the Poultry Handlers Union. One of his sources of power was the late Murray "The Camel" Humphreys, a top syndicate lieutenant. Glimco was twice indicted by federal authorities. The first, in 1954, involved shakedowns of merchants at the Fulton Street Market. He was acquitted after several witnesses changed their stories. The second was £or taking payoffs in violation of the Taft-Hartley Act in 1965. He entered a plea of nolo contendere and was fined $40,000. Local 777 also controls truckers on the waterfront who haul the goods from the piers after they are unloaded by the longshoremen. The International Longshoreman's Union strongly opposed this move, but Glimco was successful in carrying it out. Through Glimco's syndicate power he exerts his influence into many-other unions in the Chicago area.

Local 46 Laundry Workers The president of this local is Gus Zappas(sp), frontmen for the late Murray "The Camel" Humphreys. Zappas has a record of over 43 arrests. He served time in the state penitentiary in the 1940's for burglary.

Testimony before the McClellan Committee revealed that Zappas had plotted to peddle the ransom money from the Greenlease Kidnap Murder in the 1950's for a commission. He is an

page 43

associate of Ernest Infelice, convicted dope peddler and Joey Aiuppa, underboss of the Chicago syndicate.

Local 110 Motion Picture Operators Union. This local has been completely hoodlum dominated since the 1930's. The history of the union is riddled with violence and murder. Until recently the president was Clarence Jalas, frontmen for the late underboss Paul "The Waiter" Ricca. The union's current roster includes names and relatives of hoodlums that reads like the syndicate version of Who's Who. Hoodlums who would have a difficult time loading an instamatic camera are $15,000 a year projectionists. Anthony Accardo's son is a motion picture projector operator and union official. Most recently there has been a wave of theatre bombings in Chicago in an attempt to organize small local theatres. The object or this organizational effort is to force the theatre to place a second projectionist' on the job, although only one is required. The second position is simply a featherbedding cover for the syndicate men who need the appearance of legitimate jobs. An investigation is under way into this and other practices of the union.

Local 136 Machinery Movers. This union like Local 714 IBT also has jurisdiction over certain aspects of the

page 44

exhibition shows at McCormick Place in Chicago. Like Local 714 it is a haven for hoodlums. The president, Charles La Tour has a felony record for armed robbery and assault with intent to commit murder. He served a sentence of five years in state penitentiary. La Tour and Davey Kaye, convicted chief steward of McCormick Place, are close associates.

Local 450 Hotel and Restaurant Employees (Bartenders). This union was chartered by Joey Aiuppa in 1935 as an effort to keep syndicate ccntrol of the tavern business. The local, like other HRE locals, are creatures of organized crime. The present international president of HRE, Edward Hanley was once a business agent for this local. The current president was installed in 1958 by syndicate members John Lardino and Joey Aiuppa after the McClellan hearings. As an example of the organized crime connection of the union, in 1968 a free parking permit, for a local racetrack that was issued to Local 450 was ultimately used on the car owned by Tony Accardo's wife.

Local 278 Hotel and Restaurant Employees (Bartenders). The current president is Pat Battista. Battista is associated with Joey Aiuppa and John Lardino. In addition to living in Chicago he also has an $89,000 home in Palm Springs.

page 45

Local 304 Hotel and Restaurant Employees (Bartenders). This union operates mostly on the south side of Chicago. The president in the early 1970's was Mickey Cogwell. Cogwell was forced out office after his federal conviction for mail fraud for misusing HEW education funds. He was carried on the books as salaried janitor. He was also appointed as an organizer by the international president. Cogwell was gunned down in gangland style in February 1977. Prior to his death the FBI had determined that he was using Local 304 business agents as runners and pickup men in a policy business.

This Chicago summary indicates that the syndicate influence is not only heavily concentrated but disciplined. The control comes directly from the top of the Chicago organization. The rosters of these locals are littered with the names of men whose job it is to serve the syndicate as enforcers and muscle men. The collective bargaining agreements, health and life insurance contracts and investment of union funds are negotiated by men who have as their primary aim the protecting of syndicate business interests and lining their own pockets.

page 46

CLEVELAND

The leaders of organized crime captured control of the major portion of the labor movement in Cleveland at an early date. This domination continues to this day.

One of the first documented association between organized crime and the labor movement dates back to the early 1940's when John Scalish, the former head of organized crime in Cleveland, and his close associate Frank Embrescia, came into the control of the Cleveland Federation or Labor. Scalish's contact was William Finnegan the Secretary of the Federation. Embrescia and Scalish were both associates of Mickey Cohen, the notorious Los Angeles racketeer.

The real influence of organized crime in Cleveland's Labor Unions begins with Anthony Milano, who during the late 1920's and early 1940's was consiglieri of the Mayfield Road gang, the predecessor organization to the current Cleveland syndicate. Milano gained a foothold in the Teamsters Union by organizing the Commission House Workers Teamster Local 400. The Teamsters were unable to organize the commission house workers and Milano made a deal that if the Teamsters would place an individual of his choosing as the head of the Union he would see that the commission house workers were organized.

page 47

The Teamsters agreed, and Milano organized the workers. The Teamsters subsequently placed Charles Cimino as the head of that organization pursuant to Milano's request. 

The Teamsters Union was also infiltrated by organized crime figures Louis "Babe" Triscaro, Frank Brancato, Michael Rini, John J. Felice and several others, all with the assistance of Milano and Scalish. Mike Minaden an LCN member and currently an official of Laundry Workers Local 1 was an associate of Milano dating back to the early 1920's.

Although Milano's influence within the labor movement has diminished recently because of his age and inactivity, John Scalish and his close associate Maishie Rockman continue the control of the labor unions, especially in the Teamsters through Bill and Jackie Presser. It is generally believed that William Presser gained his position as International Vice President through the Cleveland organized crime family connections with the Detroit and Chicago organized crime syndicates.

There are organized crime figures or close associates of organized crime figures in virtually every Teamster organization in the Cleveland area. A discussion of Teamsters in Ohio and the Cleveland area must begin with William Presser. He is closely allied to all major organized crime figures in the area including Anthony Milano, John Scalish, and John DeMarco, now

page 48

deceased, and on a national level, Allen Dorfman. Presser, had been a close ally of Hoffa, and now Frank Fitasimons.

Jackie Presser, his son, has continued to build his public image in the area through appointment to various civic organizations and favorable publicity in the media. He is cultivating political contacts including a close association with Governor Rhodes, and appears on his way to surpassing his father in power and influence throughout Ohio. His goal is reportedly the presidency of the International Teamsters Union.

Closely allied with William and Jackie Presser is Harold Friedman, brother in law of William Presser, who controls Bakery and Confectionery Workers Local 19 as President. Harold Friedman is a convicted felon and a former close associate of Hoffa.

Tony Hughes, Teamster Local 507 Recording Secretary, former prizefighter and muscleman, is a close associate of Jackie Presser and co-owner with Presser's wife of the Forge Restaurant.

John San Filippo, Teamster Local 346 Business Agent, is an associate of Thomas Licavoli, who was the head of the prohibition era Detroit-Toledo Purple Gang and convicted killer who was released from Ohio Penitentiary in 1971. San Filippo was also associated with LCN members Babe Triscaro and Frank

page 49

Brancato, both deceased. Since "Babe" Triscaro's death in 1974, Local 436, one of the largest Teamster locals in the area, has been placed in trusteeship with William Presser as a Trustee. Sam Busacca, Triscaro's son-in-law and Local 436 Vice President has been permitted to continue to operate the local under the trusteeship.

Teamster Local 410 is made up of vending machine service employees. It's primary function appears to be to maintain peace in the vending machine industry through assurance of sites and locations of machines and equipment. Organized Crime figures have been deeply involved in the vending machine business, including the late John Scalish, Milton Rockman, and Frank Embrescia. Carmen Milano, son of Tony Milano, and an attorney, has, over the years been paid a retainer for few, if any, services to this Local along with similar payments he has received from other Teamster Locals including Local 436. 

Nick Francis, President, Teamster Local 416, a local made up of non-skilled employees, received the charter for this Local in 1958 through the intercession of Tony Milano. Local 416 has become a haven for organized crime personalities. In the late 1960's Pat Catalano began clashing with Harold Friedman of Local 507 over organizational jurisdiction. In addition, he began openly displaying a lack of respect for Tony

page 50

Milano. In April, 1968, Catalano was killed, his body has never been found nor his murderer apprehended. After Catalano's disappearance, Nick Oriti, long-time friend and associate of Milano and boyhood friend of Frank Brancato, succeeded Francis as Local 146 Secretary-Treasurer. Nick Nardi, brother of the late LCN member John Nardi, and nephew of Tony Milano, is Trustee and Business Agent of Local 416.

Teamster Local 415 chartered in October, 1973, has as its principal officers, Dennis Francis and Robert Nardi, sons of Nick Francis, Teamster Local 416 Secretary-Treasurer and the late John Nardi.

John Felice, Senior and his son John, Junior, control Local 292. John Sr., is now semi-retired and control of the organization has been gradually turned over to John Jr. Felice Sr., has been close associate of William Presser and Babe Triscaro through the years. The Felice family is known to have been closely associated with Yonnie Licavoli. Felice Sr., visited Licavoli while in the Ohio Penitentiary and identified himself as a second cousin. Felice Jr., is associated with Jackie Presser in Loca1 796 as Secretary-Treasurer nephew of deceased LCN figure Frank Minnitti Tony Liberatore is Business Agent, of Laborers Local 860. Liberatore spent 20 years in the Ohio Penitentiary for a

page 51

gangland-style killings of two Cleveland Detectives. He was a close associate of the late Babe Triscaro. Liberatore was the local representative of the Hoover-Gorin Public Relations Firm, which was awarded a contract for $1.3 million annually by the International Teamsters Union. William Presser was instrumental in arranging this contract between the Teamsters and newly formed Hoover-Gorin. Liberatore is present on the Sewer Board of the City of Cleveland.

The President of Laundry Workers Local l is Michael Minaden, known LCN figure and former organization bagman. 

Longshoremen Local 1317, which provides the manpower for the Port of Cleveland has a long history of violence going back to the days when Danny Greene headed the Union. Greene was removed from Office following a conviction for violations of the Landrum Griffin Act.

Greene has been associated with various organized crime figures over the years. He has a very close association with Frank Brancato. Since leaving Local 1317 he has been involved in a rubbish hauling association. Greene is believed to be behind many of the bombings which have occurred in Cleveland in recent years. He is also believed to have been involved in a shakedown of contractors on major construction projects in the area along with Brancato.

page 52

Ironworkers Local 17 has a long history of violence, muscle, shootings, bombings, assualts, and murders. It has been a haven for ex-convicts over the years.

Restaurant Workers Local 10 is an amalgamation of former waitresses, bartenders, cooks, and miscellaneous restaurant workers locals, which controls the restaurant industry in Cleveland. The local President until recently was Jackie Presser. Another official is Jack Lubin, a suspected loanshark and convicted arsonist.

Local 18, Operating Engineers, is a state-wide organization engaged primarily in operation of heavy equipment. This Local has a long history of violence, muscle, and bombing activity. The trade relationship between Local 18 and teamster Local 436 and Liberatore's Laborers Local 860 has resulted in a close working relationship between the three. Nick Satullo, a known bomb expert, was part of Local 18 operation for many years. There has also been a close relationship between this organization, Teamsters Local 436, Laborers Local 860, and the Excavating and Paving Contractors Association.

A consequence of organized crime's total domination of the labor movement in Cleveland has been the exertion of power in political and commercial circles where dependence upon unions is a necessity. For instance, the City of Cleveland

page 53

operates the Cleveland Convention Center and Public Hall. The undisputed but yet unofficial boss of the Cleveland Convention Center is Teamster Local 407 President Eddie Lee. Although Lee's sole function is the head of the Local which unloads and moves about exhibits for conventions, he controls the entire hall. The consequence of such activity is the enrichment of Eddie Lee and the chaotic running of this major source of source of revenue for the community. These abuses are under investigation by the Cleveland Strike Force.

The most significant result of organized crime influence over the labor unions is the resulting political influence. The Cleveland area is primarily an industrial community in which the unions wield a tremendous amount of political power. Corrupt union leaders are able to dictate their wishes to political candidates. Judges and prosecutors must curry their favor.

Michael Rini, former Teamster Local 400 President and now Administrative assistant and Labor Advisor to Mayor Ralph Perk plays a dominant role in hiring and firing of county officials. Rini is also know as a "fixer" for any problems that may arrive for influential organized crime figures. Rini was responsible for the transfer of a Police Sergeant who was harrassinq

page 54

prostitution activities at the Sterling Hotel, a Local organized crime and Teamster hangout. Ernest Zeve, owner of record of the Sterling Hotel is an associate of William Presser. Rini is a protege of Babe Triscaro who was responsible for Rini's rise to power.

Michael Rini is also partially responsible, along with Anthony Milano, for placing Anthony Liberatore on the Cleveland Sewer Board.

Cleveland is a labor town, and the labor unions are in the hands of organized crime. Through this power organized crime has a definite say in the political and economic life of the city.

page 55

THE ABUSE OF POWER

The uses to which a syndicate controlled union can be put are many. Control of a labor union results in jobs for hoodlums, access to millions of dollars in union and pension funds, and gives a base for political and economic power.

Lucrative Salaries. Syndicate controlled union officials draw extraordinary salaries. For example, the trustees of the Central States Teamster Pension Fund make $400 per day plus expenses when working on pension fund business. They usually log 200 days per year for the fund. This salary is in addition to the salaries many others are collecting from their other local union jobs. Union leaders often draw salaries from more than one organization within the union, or from more than one union. Joseph Spingola, president of Laborers Local 1001 in Chicago, a frontmen for syndicate leader Al Pilotto, is an officer of three separate Laborers organizations drawing a total salary of $80,000 per year.

The following are examples of the salary and allowances of two ranking officials in the Teamsters union.

page 56

INCOME CHART FOR 1974 SALARIES OF PRESSER AND PROVENZANO

William Presser's Multiple Salaries For 1974 Total $126,448

Salvatore Provenzano's Multiple Salaries For 1974 Total $84,945

page 57

All the benefits are not reflected in salaries and expenses. For example, James Eco Coli, syndicate member and secretary treasurer of Local 727, Teamsters in Chicago, is a member of the union's pension, severance, and health and welfare plans. In addition, in 1974 he was given a fully funded trust initially worth $150,000 which he will receive when he leaves the union.

Availability of Legitimate Jobs. Hoodlum control of unions enables the syndicate to provide their henchmen, strong arm men, and runners with jobs to give them the appearance of having legitimate employment. Syndicate members and associates can justify their fancy homes and lifestyle to the IRS by means of their positions as business agents or organizers. Often employers are forced to put syndicate workers on the payroll to provide the necessary legitimate source of income.

Availability of Union, Pension, and Welfare Funds. Union control gives control of millions of dollars of general union, pension and welfare funds. Control of these funds allows the syndicate to be a powerful force in the economic lifeblood of the country. Pension funds may be loaned to those who agree to pay a necessary kickback. Consultant fees are given to

page 58

syndicate associates.

Necessary side benefits to syndicate associates. At one time Allen Dorfman, a close Hoffa associate, wrote the insurance policies on nearly all property that was mortgaged with loans from the pension. With use of this syndicate money unchecked there are serious long range threats to legitimate enterprise in industries in which the syndicate choose to invest. Huge blocks of money can have the effect of reaching corrupt bank officials who can be persuaded to provide services and loans to syndicate members and companies in return for the deposit of funds in the bank. A major Chicago bank is currently under investigation for loans made to syndicate projects in return for favorable teamster business. In New Jersey certain banks are under investigation for making direct kickbacks to New Jersey unions through title companies in return for the deposit of union funds.

Pension and welfare funds continue to accrue, often without any possible payment to beneficiaries. Unions such as the Laborers or Hotel and Restaurant Employees which represent many seasonal or transitory workers build up pension and welfare funds which will never be collected. This unused, uncollectable money is found wealth in the hands of corrupt union leaders. It only remains for them to figure out methods to drain off the

page 59

funds that appear legal. In this endeavor they have received considerable help from some of the best minds of the legal profession.

Union Services Awarded to Hoodlum Enterprises. Control of the union allows employment of hoodlum run enterprises to obtain service contracts with the union. Insurance, accounting, legal, travel, banking, and consulting services which can amount to millions of dollars per year when dealing with a large international or local union can be awarded to businesses run by friends, fronts, or relatives of organized crime figures.

Control of the Industry. This particular facet of labor racketeering has the most serious consequences. The union through the power to force slow downs, or negotiate preferential contracts to companies of its choosing can dictate who will prosper in an industry and who will go bankrupt. The recent investigation into the ILA is a most dramatic example of a union dominating an entire industry. Aside from collecting a certain amount per month to insure labor peace and absence of slow downs, the union also dictated which stevedoring companies and service companies received business from the shipping companies. In order to keep its customers the stevedoring

page 60

company was required to make payments to the union leaders. If they did not, a work slow down would result when the stevedoring company unloaded a ship. Unnecessary breakage would result. For a shipping company, time at a pier is money-every hour over schedule results in enormous cost. The shipping companies quickly learned which stevedoring companies were preferred. The others lost business. The same preferential treatment is being used to direct companies to the "right" ship supply and container repair companies. Through this method the union has gained control of the entire east coast shipping industry.

The selective use of power allows the union to permit a company to negotiate a favorable contract with the union so that its cost base may be such that it can thwart competition. The union can extract a payoff to allow a company to remain unorganized. The Hotel and Restaurant Employees Union is noted for examples of the latter. Blackie Leavitt, Secretary Treasurer of Loca1 284 in Los Angeles, was sent to Las Vegas to organize the casino dealers at three strip hotels. Leavitt conferred often with Sidney Korshak, syndicate connected labor consultant for the hotels that were being organized. Confidential source information reveals Leavitt and Korshak

page 61

plotted how to thwart the election. The union lost the certification vote at all three hotels. Shortly thereafter Leavitt purchased a large ranch in San Diego County. According to the source the money came from the payoff to Leavitt to throw the election.

The economic ramifications of these abuses hold grave consequences for portions of the economy, yet the hoodlum dominated union leaders grow more arrogant. Witness the attitude within the Teamsters union regarding the disappearance of James Hoffa. Hoffa was about to ripple the waters; he was done away with. The union leadership was unconcerned about the public reaction. In Chicago, Davey Kaye, chief teamster steward at McCormick Place, not only shookdown employers but in doing so consistently took jobs from at least three to five other teamsters each time. Instead of firing Kaye for taking jobs that could have gone to other workers, the union leadership, including the union attorney, contended Kaye was within his rights in doing so. Kaye remains on the job after his conviction in federal court, pending appeal.

This abuse of power cannot continue to go unchecked.

page 62

RECOMMENDATIONS

1. Information concerning Labor Racketeering is not systematically analyzed by the Department of Justice. There is no unit which monitors Labor Racketeering which can give any report on the status of the problem`.. It should be a function of the Organized Crime and Racketeering Section to receive copies of all CIR's, investigative reports, and surveys concerning Labor Racketeering so that an up to date status of the problem can be maintained.

For example, the writers of this report discovered in the short time spent assembling the information for it they were able to identify problem areas, key individuals and illegal trends which could not have been easily discerned from isolated reports.

The writers of this report volunteer to act as such a monitoring unit. All that would be required would be the services of one intelligence analyst. We would meet periodically to analyze intelligence information and case reports. We could keep apprised of developments in the area and could advise the Organized Crime and Racketeering Section and the Criminal Division management of problems and trends. We could report also as to the lack of information in certain areas. We feel this up to date information would be valuable for planning

page 63

investigations and advising the Attorney General, the Congress or the White House. At present there is no fast, efficient method of making a detailed report on organized crime in the Labor Unions.

2.The two agencies which have jurisdiction over Labor Racketeering have no systematic approach to collecting information. An information request on Labor Racketeering sent out by the Department of Justice in 1975 to the Federal Bureau of Investigation and the Department of Labor resulted in mediocre replies. Most of the Department of Labor information submitted was ten years old.

A Federal Bureau of Investigation field office in a city with a most heavy concentration of hoodlum infiltrated unions filed a three page reply consisting of vague allegations. If there is to be any realistic approach to the problem the Federal Bureau of Investigation and the Department of Labor must begin a systematic collection of information concerning the organized crime infiltration in the Labor Unions.

3. New methods must be explored for investigating Labor Racketeering cases. Investigation of these matters requires a thorough knowledge of the nature of the inductry involved, the collective bargaining agreements, the custom and usage within the trade, and the history of the union involved.

page 64

Training sessions on the industry should be conducted within an agency before any investigations are begun. 

4. New methods of legal action must be explored. A single conviction of a corrupt union official does not usually clean out the corrupt influence. Civil remedies pursuant to the Rico statute (18 U.S.C. 1961 et seq.) and other statutes should be studied and instituted. If action can be taken to tie up the funds and the power of the corrupt officials, half the battle will be won.

There should be a meeting of the Strike Force Chiefs and some of their key attorneys in the near future with the specific purpose of' exploring new methods of combating Labor Racketeering

page 65