Special Two-Part Report by Bob Fitch
Giving fresh meaning to the old phrase a
"travesty of justice," LIUNA President Arthur Coia was
cleared on March 8th, of all 13 mob-related charges. The decision
- by Coia's hand-picked hearings officer-signals that one of the
longest and most bizarre judicial proceedings in U.S. legal history,
will probably end next year with Coia still in control of the
750,000 member union, 450,000 real members according to critics. Further tainting the verdict was the discovery
that Robert J. Luskin, the attorney Coia selected to carry out
the investigation, had received $500,000 in gold bars from an associate of the Patriarca
crime family. Coia's hold on his $255,000 position was first threatened
in November 1994 when he was named in a 212 page Department of
Justice RICO complaint charging he had "associated with and
been controlled by" mobsters including the Providence-based
Patriarca's.
But Coia - the accused in November 1994 -
was allowed in February 1995 by the DOJ to choose his own judge,
prosecutor and appellate judge to determine his fitness for office.
His name disappeared from the DOJ list of LIUNA officers controlled
by organized crime. Many have suggested a possible link between
LIUNA's $3.1 million in campaign contributions to the Clinton
Democrats during the '95-'96 election cycle and the extraordinary
self-clean up arrangement. As part of the deal, Coia chose to
serve as his prosecutor, Robert Luskin, the attorney he'd hired
in November to defend himself against the Justice Department charges.
A Republican-led House Judiciary Investigation in '96 failed to
turn up any evidence of wrongdoing. Investigators were unaware
that Luskin had received the gold bars during the time he was
acting as Coia's attorney.
In finding Coia fit to keep his job, the
Independent Hearing Officer Peter Vaira ruled:
"We're disappointed with the decision," said Scott Lassar, the U.S, attorney in Chicago who is leading the Department of Justice's investigation of LIUNA in a public statement. "While we believe the case was thoroughly investigated," he added, "we believe (Vaira's) opinion contains serious factual and legal errors." He urged Robert J Luskin to appeal.
- The 55 year old attorney had never been an associate of New England's Patriarca crime family. Coia's serving as Raymond Patriarca's personal lawyer didn't fall within the meaning of "barred conduct."
- The two families breeding dogs together didn't mean the Coia's and the Patriarca's were all that close.
- Coia's approval of a Local 66 (Melville, Long Island) trusteeship that put the two sons of freshly convicted racketeers in charge of the local's pension funds was understandable under the circumstances.
- Knowingly appointing a favorite of the Chicago "Outfit" to serve as LIUNA's top judicial officer was not disqualifying behavior.
- Even Coia's admission that he got his job in 1989 as LIUNA's General Secretary- Treasurer from the Outfit's Vincent Solano didn't warrant his removal from office.
- Vaira did declare Coia guilty of failing to pay federal taxes on a; $450,000 Ferrari he'd bought at a cut rate with the help of a union vendor, Now Coia must pay a $100,000 fine. His lawyer says he won't appeal the fine,
While Justice could still intervene until
next year when the '95 agreement expires, the DOJ has given up
further leverage over the investigative process, to Coia and his
appointees. Meanwhile, Coia has used the cleanup process to purge
the 30 LIUNA locals and district councils, Over 200 officials
have been ousted. LIUNA supporters call it an unprecedented
cleanup. A spokesman for the U.S. Attorney's office in Chicago
told New York Hard Hat News: "We're pleased with the reform
process, For the first time, elections have been held. The members
can vote."
No real cleanup
Critics insist that there's been no genuine
cleanup and no real election. The '96 contest simply pitted two
rival mob factions against each other: with heavy underdog Bruno
Caruso serving as the candidate of the Chicago Outfit against
Coia, the favored candidate of the New York and New England families.
They describe the "cleanup" process as a one-sided mob
war by other means: "going to the mattress" under DOJ
rules.
Not a single press account last March mentioned
that Viara, who was serving as Coia's judge - was being paid a
$140,000 salary by Coia. Or that attorney, Robert J. Luskin, who
was prosecuting Coia, had received over $500,000 in gold bars
from an associate of the Patriarca crime family about the time
Luskin was hired by Coia, Or that the appeal of Vaira's verdict,
which Luskin has filed, will be heard by another Coia appointee,
Clinton's former associate counsel, Neil Eggleston."I expect his decision in July,"
Luskin told New York Hard Hat. He declined to state the grounds
for his appeal to Eggleston of Vaira's decision. Luskin, however,
told the Engineering News Record that he will appeal only "limited
parts" of the decision. The ENR says Luskin isn't expected
to challenge the dismissal of the mob-related charges.
Innovation or whitewash?
This "innovative" exercise in the
privatization of justice, as LIUNA calls it, was set up after
an October 21, 1994 White House meeting in the Oval Office. Participants
were Coia, Clinton and former LIUNA attorney Harold Ickes, then
serving as Clinton's no.2 White House aide.
You wonder: did Coia discuss his RICO problem
with Ickes, Clinton or Hillary-who would keynote the Laborers
convention? Did he brag to associates about his White House clout?
Did the Laborers hire Ickes to gain influence with Clinton? Coia
has refused to answer these questions. And Luskin understandably
has chosen not to pursue them. How could be investigate the terms
of his own appointment?
The Clinton Justice Department's "Let
Arthur Do It" decision plainly ignored a FBI background check.
One made prior to appointing Coia to a Presidential Commission.
Wrote the FBI in 1994: "Coia is a criminal associate of the
New England Patriarca organized crime family." The FBI's report got Coia bumped from a position as an unpaid member of the President's Council on Competitiveness. But it didn't stop him from being allowed to hold a much more sensitive job: heading a clean up of an organization identified in the 1986 President's Commission On Organized Crime as one of the four most mobbed unions in the country.
Reversal of Fortune
Between November '94 when DOJ demanded that
Coia step down as General President and February 1995 some minds
apparently changed. Up until '95 Paul Coffey, the chief of the
OCRS indignantly and repeatedly rejected LIUNA's offer to clean
itself up. But then in February, a complete reversal: the Justice
Department which had identified Coia -as a "mob puppet"
in its 212 draft complaint - approved the clean-up-yourself deal.
(LIUNA explains the shift by claiming that the charges in the
complaint weren't really true -DOJ exaggerated the racketeering
problem to force the union into the clean-up deal.)
Not surprisingly, since it was his call,
Coia chose as his prosecutor, his defense attorney, Robert Luskin,
the earring wearing,' motorcycle driving attorney he'd hired -in
'94 to handle negotiations with the DOJ_ In Congressional hearings
in 1996 however, DOJ representatives denied they'd been pressured
by the White House. By allowing Coia to hire his own accusers
-and run his own organized crime cleanup a DOJ spokesman testified,
the government saved money.
Shortly after Justice turned over Coia's
prosecution to his retainers, serious amounts of LIUNA cash started
flowing to the Clinton White House, the Democratic National Committee
and Democratic elected officials. Coia had been one of Clinton's
earliest labor supporters - contributing $100,000 to the '92 campaign. But in the 1995-6 election cycle, the Center
For Responsive Politics found that LIUNA ranked sixth at $3,076,000
- among all campaign contributors outspending such noted money-throwers
as Merrill Lynch, Goldman Sachs, the American Medical Association
and the American Bankers Association Riding the momentum of his
cash flow, Coia visited the White House almost as often as Monica:
120 times. Plus he got to fly on Air Force One. Hillary accompanied
Coia to LIUNA's Florida convention despite staff warnings that
her host's scene was heavily mobbed up.
Kissing Vincent's ring
For a parallel in the annals of American
injustice, the O.J. case naturally comes to mind. But at least
O.J. Simpson wasn't exonerated after testifying in a court that
he was guilty. The 55-year-old Coia himself admitted in sworn
testimony that he got his job as LIUNA's General Secretary treasurer
after assuring Chicago mob leader Vincent Solano of his good will
at a 1989 meeting in O'Hare Airport. Coia had to fly to O'Hare because in the
late '80s, the road to the top LIUNA offices in Washington DC
ran through Chicago, where "The Outfit" was running
the international union. Angelo Fosco, LIUNA's International President
was a buddy of Chicago Boss of Bosses Tony Accardo. But Fosco's
real support came from Solano. Fosco told Coia he had to check
with Serpico if he wanted the number 2 job. Solano, who led his own Chicago crime family on the
north side number 42 on a 1986 Fortune' list of top 50 mob organizations
- also served as boss of a Chicago laborers local.
Coia testified that he was led to a small
coffee shop at O'Hare, by John Serpico a mob associate serving
as an aide to President Fosco. Solano was holding court inside.
He told Coia to sit down and directed Serpico to get lost for
a while. Solano told Coia he could succeed his dad, but he told
him, "I want you to understand this - that John Serpico will
be the next General President of this union." Coia recalls
Solano pounding the table and saying, "We're grooming that
man over there to be the next General President." By meeting with Solano, wasn't Coia engaging
in barred conduct as defined in 18.U.S.C. 1961 (1) "knowingly
associating with any member or associate of the organized crime
syndicate known as La Cosa Nostra"? Not really, according
to Vaira, because Coia didn't know who Solano was. Evidently, Coia didn't read Fortune
or follow the 1983 Senate hearings highlighting Solano's control
of north side prostitution, gambling, loan-sharking and LIUNA's
Local 1
For a guy who didn't know who was-who in
the organization, Coia had clearly figured out how to advance
inside it. Coia Sr. - a long time associate of the murderous New
England crime family boss Raymond Patriarca Sr. - was gravely
ill, Coia Jr. grasped how be could move up to his father's number
2 position. Father and son had been indicted together by the US,
attorney in 1981 for conspiracy to loot benefit funds (They got off on a technicality.).
But this could hardly smudge Coia's credentials with the Chicago
mob, since Accardo, Solano and Fosco had all been co-indictees
in the same conspiracy case, And most important, as the eldest
son of the General Secretary Treasurer, and New England Regional
Manager, Coia was by mob custom and historical precedent the legitimate
heir to his dad's job.
New York crime families have handled the succession problems in the Mason Tenders the same way. After the New York Mason Tenders boss Gaspar Lupo died in 1991, James Massera, the Genovese crime family captain in charge of the District Council had to decide whom to appoint next. Gaspar's sons, Frankie and James both sought his approval for top union jobs. "Please Jimmy," the FBI transcript of the wiretap reads, "I know my father would want it this way." Massera replies, "Alright Frankie, if it means so fucking much already." Massera later explainsed, "I put him there because I figured he's qualified and it's only right because he was in line. Gaspar was put there by his father"
The Chicago boys
And Angelo Fosco - head of LIUNA - was put
there by his father, Peter. Now Angelo's death presented
an opportunity for Coia to ascend all the way to the top spot
- despite opposition from the Chicago mob. Chicago's candidate
was the relatively unknown Serpico - Solano's messenger boy at
the 1989 O'Hare airport meeting. Serpico was Fosco's chief assistant.
But as Vaira points out, "there was no public acknowledgment of Serpico holding that post.
And Serpico's main supporters - Solano and Tony Accardo -had just
died too. Sensing a power vacuum, Coia got to the board
members quickly - before Fosco. could be buried in Chicago. At
the funeral, Coia, explained in his Serpico's disciplinary hearing
testimony, The "Outfit" could have mobilized its formidable
local forces and directly pressured the Executive Board as they'd
done in '75 when Angelo Fosco's predecessor, Peter Fosco died.
Lobbying the board hard against Serpico, Coia says he argued it was impolitic to make someone
named in the 1985 Presidential Crime Commission reports (Serpico)
the General President of the union.
Coia prevailed but not without antagonizing
the Outfit. Serpico and John Matassa, a "made" member
of the Chicago mob, told Coia at his father's '93 funeral that
'the boys did not like what (Coia) did by stealing and taking
the Presidency from Chicago".
Peter Vaira, the Hearings officer, consistently
interprets Coia's behavior in the most favorable possible light.
Instead of asking, "Why did you invite these goombas
to your family funeral?' he takes Outfit members' complaints as
evidence that Coia is opposed by organized crime as a whole.
Vaira - who barred Coia's opponents from
distributing -the Justice Department's 212 page complaint to the
delegates at the 1996 Las Vegas Convention - explains all Coia's
mob associations as fleeting, unknowing, understandable, or even
as laudable tactical maneuvers to fight the job. For him, they
show not that Coia was playing a devious game, first kissing up
to the Outfit to get the no.2 position, then kissing them off once he'd consolidated his
position. But rather before becoming LIUNA's NO.2, Coia simply
didn't know whom he was dealing with; and afterwards, he used
shrewd tactics to resist the Chicagoans,
But who can believe that Coia didn't know
who Solano was, given that the two were indicted together in '81
in the welfare fund raiding scam? Equally far-fetched are Vaira's assumptions
in the Serpico case Vaira blew off the charge that Coia should
be punished for appointing Chicago mob favorite Serpico as LIUNA's
chief judicial hearings officer. For Vaira, this was not wrong
because Coia was merely choosing the lesser evil. Serpico had
asked for LIUNA's no.2 job. But Coia wouldn't let him have it,
but instead appointed Serpico hearings officer at $100,000 a year.
Besides, Vaira points out, when Serpico got the 100G's, he agreed
to step down from the LIUNA executive board.
Patriarcha on "Arthur's Balls
It's possible to argue, as Raymond Patriarcha Jr. does that "Arthur has forgotten where he's come from." And that since '95, he's turned his back on his former associates. But explaining Coia's career path up to '95 without the mob, is like imagining Dracula without his coffin.
Coia admits he got his no.2 position after he applied to mob boss Solano. He acknowledges further he was opposed for the Presidency by the Chicago LCN. Was it just Coia's persuasive powers that got him the top job? Or did he have support from other factions in organized crime - including aid from his family's New England base. To establish that Coia is just not a mob manipulator, but a mob fighter, Vaira has to argue that continuing intimate contacts between the Coia's and the Patriarcha's going back more than forty years, didn't amount to all that much. At least Vaira can say he's got Raymond Patriarcha's word for it. Patriarcha told FBI agents he didn't have a relationship with Coia. Nor did any of his subordinates. And besides, observed Patriarcha Jr., "Arthur does not have the balls to be a gangster."
How does Patriarcha know about "Arthurs's balls"? Because Coia was his lawyer. And he met regularly with Coia in Coia's law offices between '81 and '86. Isn't this evidence of barred conduct with a mobster? No explains Vaira. The Coia's and the Patriarcha's were indicted together in '81 in the Hauser case. Coia was charged with accepting a $30,000 "fee" which was really intended as a bribe for his dad to permit the looting of a LIUNA benefit plan. Most of the meeting between Coia and Patriarcha were necessary for common defense against this charge. And therefore not barred conduct. Besides, after the case was settled, there weren't many other meetings between the two: Coia's law partner testifies that Arthur billed Patriarcha for only six hours legal work when he incorporated a Patriarcha company.
What about the dog breeding? Did Coia's breeding Rottweilers with Patriarcha suggest a certain intimacy with the mob leader? As Vaira explains it, no. It turns out that Coia bred Rottweilers with lots of people because he owned a kennel - Southwind Farms. And that Raymond Patriarcha coincidently happened to be a Rottweiller fancier too. He had one of his dogs bred at Southwind Farms in '82 or '83. But it wasn't Arthur that supervise the mating. It was his wife. And besides, the mating produced no puppies.
Local 66: the Son Also Rises
Breeding was also a factor in Vaira's ruling
in the Local 66 case Coia, he ruled, can't be blamed in '89 for
approving a trusteeship that put the sons of convicted racketeers
Michael LaBarbara Jr. and Abbiatello Sr. in charge of Local 66'
pension funds. Nor was Coia wrong to decide that the members should
pay the $400,000 in legal bills LaBarbara and Abbiatello ran up
in defending themselves against 51 charges they engaged in racketeering in concert with
the Luchesse crime family.
You have to understand LIUNA's institutional
culture, argues Vaira. Coia testified that he had to approve the
deal that had been set up by Sam Caivano - then LIUNA's regional
trustee. Caivano was forced to resign in 1997 as an associate
of New Jersey's De Cavalcante crime family. But in '89, Sam put
his son David in charge of Local 66 as trustee. Son David, in
turn put Labarbara 3d and Abbiatello Jr. in charge of the Local's pension funds. According
to Vaira, Coia complained to Sam Caivano about the "negative
perception" putting racketeer's kids in charge of the members'
money. But Caivano wasn't listening.
Coia, who was then the no.2 LIUNA officer,
is charged with permitting mob influence. But Vaira rejects the
charge. "The argument fails to recognize the institutional
make-up of the International Union at that time." You see,
"at that time, a local union was autonomous and the International
Officers had very limited power over it." Keeping the racketeer
influence in place was Caivano's fault, not Coia's.
Luskin's Gold Bars
Many of the charges against Coia seem telling.
But like the dog breeding, they've been chewed over in the press
since.'95. Why didn't Robert Luskin the prosecutor come up with
more new material? "Coia cut the compensation rates that
private investigators received," observed Jim McGough, a
Chicago based LIUNA rank and file activist. "They could get
$150 an hour working for AMOCO in the private sector. LIUNA cut
their rates from $100 to $80 an hour. Besides a lot of guys were
afraid to come forward."
Other critics like Ken-Boehme, director of
the conservative National Legal and Policy Center who petitioned
the Criminal Division of the Justice Department last year to have
Luskin removed, insist that the fix was on from the beginning.
"He was Coia's defense lawyer, How could he turn around and
suddenly be his prosecutor?" asks Boehme. "It's unprecedented
in legal history."
Certainly, Luskin didn't improve his credibility
in March 1999 by his admission to a U.S. attorney that he'd received
45 gold bars from Stephen Saccoccia, a New England metal dealer
and ex-con who'd been identified as a Patriarca crime family associate.
Saccoccia got 666 years for money laundering. Saccoccia hired
Luskin for routine appeals work, paying him $169,171 in money
transfers from a Swiss bank and gold bars worth $505,000. US Attorney.
Sheldon Whitehouse settled the case when Luskin agreed to pay
the government $245,000 as proceeds of a criminal enterprise.
Luskin insist that Saccoccia was not a Patriarca
associate. But federal customs officials insist he is. And court
papers from a previous Saccoccia conviction show that the metals
dealer operated as a Patriarca money launderer.
Conclusion
Given that Luskin's appeal won't contest
the mob related charges, Coia is almost certain to keep his international
job that paid him total compensation in 1997 of $419,950,87. How
does Luskin feel now that he is about to lose the biggest case
of his life? Actually, he sounded pretty perky over the phone
when I spoke: with him last month. Maybe the nearly $5,000,000
in legal fees he's received from the man he's prosecuting, Arthur
Coia, serves as compensation of a sort. Then too, Luskin says
again and again that under his leadership as GEB Attorney, the
union's been purged of racketeering influence and is acting like
a union again.
Next issue: The conspiracy to keep LIUNA dirty. How racketeers friendly to Coia kept power in locals across the country - while the beatings went on in Connecticut and the $60,000,000 in missing funds from the New York Mason Tenders' District Council was never found.
Copyright Hard Hat News@1999