In that life and especially when you are at the top you need people that you can trust, nothing like BLOOD.

Peter, was in charge of collecting all the money for J.G.

I am assuming that J.G. got him made because that was a really important job, and that by P.G. being made would afford him some protection on the street.

And than later on as a PROXY,/PUPPET boss that would just follow his instructions with out question.

The admin just left him as official boss so that he would take at least some of the heat.