ORGANIZED CRIME AND THE LABOR UNIONS
PREPARED FOR THE WHITE HOUSE IN
RE: CHICAGO LABORERS-PAGES
ORGANIZED CRIME AND THE LABOR
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.
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
Douglas P. Roller
Attorney in Charge
Cleveland Strike Force
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.
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
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
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.
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.
HOTEL AND RESTAURANT EMPLOYEES AND
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.
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
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.
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 1/ 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.
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
(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.
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
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
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.
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.
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.
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.
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
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
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
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
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
links between organized crime figures such as
Anthony Provenzano, Rosario Bufalino, Anthony Giacalone, Guv Guarnieri, Salvatore
Provenzano, Angelo Bruno, Salvatore Briguglio and the Teamsters
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
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
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
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.
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
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 th s 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.
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
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.
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
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
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
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-
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
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.
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.
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
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
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.
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.
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.
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
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.
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
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.
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
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
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
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.
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.
The teamsters locals in Chicago are a reflection of their
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.
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
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
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
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 Łor 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
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
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
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
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.
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.
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
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.
The Teamsters agreed, and Milano organized the workers. The
Teamsters subsequently placed Charles Cimino as the head of that organization pursuant to
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
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
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
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 indudtry 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
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
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
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.
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
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
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.
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
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.
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.
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
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
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
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
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
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
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
This abuse of power cannot continue to go
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
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
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.
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
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