I think he was on the lam so he was not really able to run his crew. Gotti had enough and wanted a fully committed capo for this crew.
You're half right. He didn't go on the lam but he was under indictment and wanted to lay low. Kinda like Charlie Wagons Fatico was when Gotti took over A acting capo. But we know how Gotti felt about Acting positions. He wasn't having it
