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The New York Daily News
Dec. 1, 1996



GOTTI PAL AN FBI MOLE

By Jerry Capeci

joewatts.jpg (9084 bytes)A one-time top lieutenant for John Gotti lived a dangerous double life as mob mole for the FBI, the Daily News has learned.

Joseph Watts served as an informer for about 13 months until early last year, sources said.

Watts, 55, had hoped to avoid jail time with his balancing act, but ultimately he and his FBI handlers became disenchanted with the arrangement.

The deal collapsed and Watts is serving six years in prison after pleading guilty to disposing of the body of a Gambino mobster. He is also awaiting trial for a Gotti-ordered murder in 1987 and could be sentenced to 25 years to life if convicted.

Watts's lawyer, James LaRossa, said:"Joe Watts absolutely denies being an informer for anybody." LaRossa cited the feds numerous cases against Watts, and said, "and now he's facing 25 years to life."

But his work as a Mafia mole was pieced together from interviews with law enforcement officials, underworld sources, defense lawyers and other investigative sources. Most of the court records are sealed.

In 1993, Watts was charged with taking part in killing Thomas (Tommy Sparrow) Spinelli. Also indicted were five Gambino mobsters.

In the same indictment, Watts was also charged with three other mob slayings, including that of godfather Paul Castellano.

Federal prosecutor Geoffrey Mearns suggested to defense lawyers that the government would consider relatively lenient jail terms of seven years if the defendants would plead guilty.

After numerous meetings, all the defendants except Watts agreed.

Having secretly cut his own deal, Watts publicly vowed to fight the case for himself, and for Gotti, by exposing the chief witness, mob turncoat Salvatore (Sammy Bull) Gravano, as a liar.

When another defendant said he'd fight, too, Watts reportedly said, "No good … The feds won't go for the deal … They don't really care about me. I'm not Italian."

In April 1994, the mobsters pleaded guilty and were sentenced to seven years. Watts was scheduled for trial in August.

The setting of a trial date was a charade in which Watts, his lawyer F. Lee Bailey, federal prosecutors Mearns and Laura Ward played roles, sources said.

In secret meetings, Bailey, Watts, prosecutors and FBI agents, including Gambino squad supervisor Bruce Mouw, agreed to a deal in which Watts would work as an FBI informer in return for no jail time.

Bailey, Watts, Mearns, Ward and Mouw would not discuss the case.

Valerie Caproni, chief of the Brooklyn U.S. attorney's Criminal Division, said, "We do not confirm or deny whether individuals are or are not informants."

But, sources said, Watts provided key information to the FBI. He detailed how Gotti sent instructions to his acting boss son, John A. (Junior) Gotti, from the federal prison in Marion, Ill., through visits and phone calls.

Once, Watts told the FBI, he spoke to the elder Gotti for about 15 minutes when the crime boss called a lawyer, according to sources.

Watts identified three capos — Peter Gotti, John (Jackie Nose) D'Amico and Nicholas (Little Nick) Corozzo — who assisted Junior and also met regularly with the Genovese family to iron out problems over joint rackets, sources said.

The information was used to keep Gotti in virtual isolation at Marion for longer than the usual three years.

Last week, The News revealed that Gotti's rule is all but over: Corozzo has been tapped to lead the Gambino crime family once the don's current appeal is exhausted.

But Watts has neither freedom nor power.

After a prolonged dispute over the nature of his deal, he went to trial in February on the 1993 indictment. He interrupted the trial to plead guilty to disposing of the body and was sentenced to six years in prison last June.