14. The Trusteeship Complaint: on June 13, 1997, the GEB notified the CLDC of his intent to place the CDLC into trusteeship pursuant to section 3 of the EDP and Article IX, Section 7 of the LIUNA Constitution and the provisions of Title III of the Labor -Management Reporting and Disclosure Act ("LMRDA"),
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Title 29, United States Code, Sections 461-66 because such action was needed to rid the CLDC of the influence of organized crime and to restore democratic procedures. The complaint for trusteeship, a copy of which is attached as Exhibit A, alleged:
For at least the past twenty-five years, the leadership of the Chicago District Council has had strong, discernable ties to the leadership of organized crime in Chicago. Organized crime has exerted influence over the Chicago District council by placing and retaining mob members, mob associates and relatives of mob members in positions of leadership in the Chicago District Council and a number of its affiliated locals and funds. Control over leadership positions in the Chicago District Council benefits organized crime in Chicago by providing mob members, mob associates and relatives of mob 'members with: (1) significant sources of income and the appearance of legitimate jobs; (2) political and economic power;(3) control and influence over the finances of the Chicago District Council and its affiliated locals; and (4) influence over affiliated union pension, health & welfare, training and political action funds through power of appointment.
a. The trusteeship complaint stated that evidence of organized crime's influence over the Chicago Laborers District Council includes: (1) leadership of the Chicago Laborers District Council by mob members, mob associates and relatives of mob members; (2) a lack of democratic practices; (3) financial malpractice; (4) the appointment of mob members, mob associates and relatives of 'mob members to positions of authority over the affiliated funds of the Chicago Laborers District Council; and (5) a failure to challenge mob influence or to examine allegations of mob control within the Chicago Laborers District Council and
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its affiliated entities. The complaint listed 23 individuals with ties to the Chicago Outfit who have served as CLDC officers, delegates, or trustees, and listed 10 such individuals who have been arrested, indicted and/or convicted of organized crime activity.
b. The trusteeship complaint stated that a trusteeship was necessary to rid the Chicago Laborers District Council of the corrupting influence of organized crime, to end the undemocratic practices that have allowed corruption to flourish, to correct financial malpractice, and to carry out the legitimate objects of the Chicago Laborers District Council and its affiliated locals and funds.
15. CLDC Officers and The Outfit:
a. The top elected positions of the CLDC are the business manager, secretary-treasurer, president, vice president and sergeant-at-arms. Over at least the past twenty-five years, these leadership positions at the CLDC have been held by and transferred to organized crime members, associates or their relatives through uncontested nominations and appointments. All of these CLDC officers
have come from just six of the 21 CLDC affiliated local unions, Locals 1, 2, 5, 225, 1001 and 1006, which account for approximately 50% of the union membership under the umbrella of the CLDC. Moreover, all of the organized crime related CDC delegates and officers identified during the course of the trusteeship hearings have been members of and
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delegates from these same six local unions, all of which historically have been controlled by the Chicago Outfit,
b. At the time the GEB Attorney notified the CLDC of his intent to place the CLDC into trusteeship, the following four individuals with ties to the Chicago Outfit held the principal offices in the Chicago Laborers District council: John "Pudgy" Matassa, Jr., a made member and current boss of the North Side Crew of the Chicago organized crime family, was CLDC vice president and trustee of three affiliate employee benefit funds as well as president and business manager of Local 2; Bruno Caruso, a member or associate of the Chicago LCN family and the son of late Chicago LCN capo Frank "Skids" Caruso and brother of Frank M. "Toots" Caruso, a made member of the 26th Street Crew, was CLDC president and business manager and trustee of two affiliated employee benefit funds as well as president and business manager of Local 1001; Joseph A. Lombardo, Jr., the son of co-conspirator and Chicago LCN capo Joseph A. Lombardo, Sr., was CLDC secretary-treasurer and trustee of four affiliated employee benefit funds; and Leo Caruso, an associate of the Chicago LCN family and the nephew of late Chicago LCN capo Frank "Skids" Caruso and cousin of Bruno Caruso and Frank Caruso, was CLDC sergeant-at-arms and a trustee of an affiliate employee benefit fund as well as president and business manager of Local 1006.
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c. In addition to these officers, Frank M. "Toots" Caruso, a made member of the Chicago LCN and top lieutenant in the 26th Street Crew and son of late Chicago LCN capo. Frank "Skids" Caruso, held the position of director of the CLDC affiliated Pension Fund at that time, having been promoted to that position in 1995 after he resigned his LIUNA membership and his positions as CLDC sergeant-at-arms and a pension fund trustee rather than submit to a sworn deposition by the GEB Attorney. In addition, James DiForti, a made LCN member and boss of the 26th Street Crew, resigned his positions as a delegate and the coordinator of committees to the CLDC and secretary treasurer of Local 5 in June 1997 following his indictment for first degree murder allegedly committed in an unsuccessful effort to collect a mob "juice loan." DiForti replaced John Matassa as coordinator of committees, who had succeeded Vincent Solano a capo in the Chicago LCN and boss of the North Side crew, in that position following Solano's death in 1992.
16. The Trusteeship Hearing: The hearing on the trusteeship complaint commenced before LIUNA's Independent Hearing Officer (hereafter the "IHO") on July 16, 1997. During the course of the 19 trial days needed to complete the hearing, the GEB Attorney introduced over 200 exhibits and presented the testimony of 45 witnesses, including the testimony of a former special agent of the Federal Bureau of Investigation who related information and hearsay
20
statements from eight additional named individuals and 11 others he characterized as reliable, confidential informants. The picture which emerged from that hearing was devastating. The evidence clearly established that for at least the previous thirty years, the leadership of the CLDC has had strong, pervasive ties to the leadership of the Chicago Outfit. The CLDC was proven to be a "safe haven" for the employment of organized crime figures, associates and their -relatives. Organized crime had exerted influence over the CLDC by placing and retaining organized crime members, associates and their relatives in positions of leadership in both the CLDC and its constituent locals and in the CLDC affiliated benefit funds. As a result of this sustained pattern of organized crime influence and control over the central governing body of LIUNA in the Chicago area, the rights of rank and file union members were subverted, democratic practices were ignored and charges of organized crime control were left uninvestigated and unremedied.
17. The Trusteeship Decision: On February 7, 1998, the IHO issued a 91-page decision ruling that a trusteeship was necessary to eliminate organized crime from the CLDC. In Re: Trusteeship Proceedings Chicago District Council, 97-30T, Order and Memorandum, dated February 7, 1998 (hereafter "CLDC Order") - A copy of the IHO's decision is attached hereto as Exhibit B and is incorporated herein by reference.
a. The IHO found that the imposition of a trusteeship over the CLDC was warranted in order "to expel the influence of
21
organized crime, to restore democratic procedures and otherwise carry out the legitimate business of the union-" CLDC Order at 2. In reaching this conclusion, the IHO found that the evidence presented by the GEB Attorney chronicled a history of organized crime "association and domination [over the CLDC that] dates from at least the 1960s" (Id. at 86) and that this "knowing association [by certain delegates and officers of the CLDC) with organized crime has had a direct and indirect effect on democratic process and the selection of District Council officers and trustees to affiliated benefit funds" (Id. at 2) In this regard, the IHO specifically found that 11[i]n the past twenty-five years at least 13 members or associates of organized crime . . . had been delegates to the District Council." Id. at 87. For example, the evidence established that during the '11970's and 1980's two District Council officers [Vincent Solano and Alfred Pilotto] were also high-ranking bosses in the Chicago Outfit, who oversaw the Chicago Outfit's illegal money-making activities in their geographic areas" (Id. at 86) and that 11[c]urrently three made members or associates of the Chicago Outfit [John Matassa, Jr., Bruno Caruso and Leo Caruso) are officers of the District Council (Id.) , all of whom had also served at various times as trustees on the CLDC's employee benefit funds (Id. at 88).
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b. The IHO further found that the selection by the Chicago outfit of District Council officers has ensured that certain individuals remain in the District Council to maintain the Chicago Outfit's control over LIUNA's labor jurisdiction. CLDC Order at 87. This corruption of the democratic process by organized crime is clearly manifested in the lack of contested elections in the CLDC over at least the last twenty-five year. As the IHO found, "[n]o officer has retired from office at the end of his term; all vacancies occurred by an officer resigning during his term, thus giving the [organized crime controlled] Executive Board the opportunity to appoint "a successor satisfactory to the Chicago Outfit. _Td. Not surprisingly, no CLDC delegate who testified, for example, had any idea "how the Executive Board determines who becomes an officer, nor could they describe how a delegate who wants to become a member of the Executive Board can bring his name to the attention of the appointing officers." Id.
c. Moreover, the IHO found that despite the obvious adverse impact of organized crimes' control over the District Council, the CLDC delegates and officers had failed to take steps to investigate allegations of organized crime influence and violations of law by its affiliates and members. District Council records reveal no investigations into or even discussions about the numerous arrests, indictments or convictions of various CLDC
23
officers and delegates or the numerous public and media reports of the alleged organized crime affiliation by certain CDC officials. CLDC order at 83-86. As a result, "organized crime members and associates have [over the years and continuing until the time of the trusteeship] received the benefits of union membership and the privileges of holding union office and acting as trustees over union funds worth more than $1 billion." Id. at 2.
18. Implementation of the Trusteeship: In February 1998, Robert Bloch, a Chicago labor attorney, was appointed by the GEB Attorney to administer the affairs of the CLDC. The GEB Attorney and Mr. Bloch filed a complaint in United States District Court to enjoin interference with the imposition of the trusteeship. LIUNA v. Chicago District Council, 98 C 0825 (N.D. 111. Judge Moran) . A copy of the GEB Attorney's Complaint is attached hereto as Exhibit C and is incorporated herein by reference. The GEB Attorney obtained a Temporary Restraining Order from United States District Court Judge Castillo on February 10, 1998, and obtained a preliminary injunction from Judge Moran on April 6, 1998, upholding the validity of the trusteeship. Copies of the TRO and Judge Moran's temporary injunction are attached hereto as Exhibits D and E, respectively, and are incorporated herein by reference. On January 6, 1999, Judge Moran granted the GEB Attorney's motion for summary judgment and dismissed all counterclaims filed by the defendants. Defendants thereafter appealed this decision to the
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Seventh Circuit. A copy of Judge Moran's Order and defendants' Notice of Appeal are attached hereto as Exhibits F and G, respectively and are incorporated herein by reference.
19. Actions of the Trustee: Since taking office in February of 1998, Mr. Bloch has removed the officers of the CLDC, has worked with the constituent locals of the CLDC to institute reform policies, and has negotiated a new labor agreement for the District Council. Mr. Bloch negotiated this historic three-year labor contract, effective June 1, 1998, with the direct participation of all the constituent Locals and not just the small group of local unions that traditionally had been controlled by the outfit. Through this more democratic negotiation process the new labor agreement: 1) provides for the highest wages and benefits ever negotiated by the CLDC; 2) implements for the first time a grievance procedure that permits the enforcement of contracts through arbitration; 3) establishes an apprenticeship program; 4) provides for the placement of an outside, trained steward on the job of any contractor that commits a serious wage violation; and 5) requires that every subcontractor performing Laborers work must sign a Laborers' Union contract or pay Laborers' Union wages and benefits. Under federal labor law, Mr. Bloch's term as trustee is presumed valid only until August 7, 1999.
20. Other Reform Actions: Since the implementation of the trusteeship against the CLDC, the GEB Attorney has placed Local 2 and Local 225 into trusteeship. See In Re: Trusteeship Proceedings Local 2, 99-25T, Order and Memorandum, dated July 29, 1999 and In
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The Matter Of Local 225 Trusteeship, 97-54T, order and Memorandum, dated March 17, 1998. Copies of the IHO's decisions together with the GEB Attorney's Trusteeship Complaint for each Local are attached hereto as Exhibits H and I, respectively and are incorporated herein by reference. In addition, Local 5 in Chicago Heights was placed under supervision for financial irregularities. Moreover, the GEB Attorney has obtained the resignations of two individuals and has entered into settlement agreements with three others, which include provisions permanently terminating the membership rights of each. The Independent Hearing officer also has issued orders permanently revoking the membership rights of two former CLDC officials, including former CLDC vice president and organized crime street boss John "Pudgy" Matassa, Jr. Matassa, however, has appealed this decision which only becomes effective if upheld by the LIUNA Appellate Officer. See In the Matter of: John Matassa, Jr., Local Union 2, 98-43D, Order and Memorandum, dated May 12, 1999 (hereafter "Matassa Order") . Copies of the IHO's decision together with the GEB Attorney's disciplinary charges are attached hereto as Exhibit J and are incorporated herein by reference. Charges are pending against five others, including former CLDC officials and organized crime associates or members Bruno, Frank and Leo Caruso and James DiForti. A copy of the GEB Attorney's charges against these former CLDC officials is attached hereto as Exhibit K and is incorporated herein by reference. No action, however, has as yet been taken by the GEB Attorney to charge former CLDC secretary-treasurer Joseph Lombardo, Jr., or to
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place into trusteeship Locals 1, 1001 or 1006, which have historically been controlled by organized crime in Chicago.
VII
CO-CONSPIRATORS NOT NAMED AS DEFENDANTS
21. Co-Conspirators: In addition to the CLDC, the following persons, along with others whose names are both known and unknown, are named as co-conspirators, but not defendants in this case:
a. JOHN "Pudgy" MATASSA, JR. is the current boss of the North Side Crew of the Chicago Outfit. At the time the LIUNA GEB Attorney imposed the trusteeship in February of 1998, Matassa was the vice president of the Chicago District Council as well as a trustee of the CLDC pension fund, training fund and laborers' political league. He had been a delegate and auditor of the CLDC since 1987 and also had served as the Coordinator of Committees for the CLDC, replacing co-conspirator Vincent Solano, a capo in the Chicago Outfit and boss of the North Side Crew, in that position following Solano's death in 1992. Matassa became a LIUNA member in 1985 and was immediately appointed as a field representative of Local 2 and in 1987, a mere two years after his initial membership, was elected business manager of Local 2 and appointed to the position of auditor of the CLDC. In 1989, he became president/business manager of Local 2 and in 1994 vice president of the CLDC. In his CLDC trusteeship order, the IHO expressly found that
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Matassa was "a made member of the Chicago Outfit" (CLDC order at 71) and that his numerous and acknowledged meetings with high-ranking made members of the Chicago Outfit, including co-conspirators Fred Roti, John Monteleone, Alfonso Tornebene and Michael Marcello, "indicate that he is deeply involved with organized crime in his daily activities" (-Td. at 72). For example, Matassa was surveiled by law enforcement officers on at least f our occasions during 1995 and 1996 meeting with known members of the Chicago Outfit, including co-conspirators Alfonse Tornebene and Michael Marcello. In addition, Matassa was surveiled meeting with co-conspirators. and Chicago Outfit it bosses John Monteleone and Alphonse Tornebene on March 12, 1998, following his attendance that morning at a hearing regarding the CLDC trusteeship before Judge ~ Moran in Laborers' International v. Caruso, No. 98 C 825. (Matassa Order at 34). As the IHO found in addressing the GEB Attorney I s disciplinary charges against Matassa: "Matassa I s rapid rise in LIUNA is no accident and is not due to his skill in the labor movement. By virtue of his LCN membership, he is required to do nothing to inhibit the influence of organized crime figures, or to acknowledge their presence to the hierarchy of LIUNA." (Id. at 40). However, despite these findings by the IHO and Matassa's removal from his CLDC positions as a result of the trusteeship and the subsequent decision by the IHO
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permanently revoking his LIUNA membership rights for barred conduct, Matassa remained the president and business manager of Local 2, without challenge, until the local was placed into emergency trusteeship in late May 1999. Matassa remains a member of LIUNA, having recently appealed the IHO's disbarment decision, which only becomes effective if upheld by the LIUNA Appellate Officer. (See Exhibit J) . These internal disciplinary charges were also the subject of the litigation in Matassa v. LIUNA, 98 C 7333 (N.D. Ill. Judge Bucklo).
b. BRUNO CARUSO is a member or associate of the Chicago Outfit. Caruso is the nephew of co-conspirator Fred Roti and the son of the late Chicago LCN capo Frank "Skids" Caruso, the boss of the 26th Street crew from the late 1950's through the 1970's. Caruso was the president and business manager of the CLDC at the time the CLDC trusteeship was imposed in February of 1998 as well as a trustee on the CLDC welfare fund and chairman of the laborers' political league. He had been a delegate to the CLDC since at least 1982. In the CLDC trusteeship order, the IHO determined that Caruso "is at least an associate of the Chicago Outfit." CLDC Order at 45. Moreover, the IHO expressly found that the contacts between Bruno Caruso and co-conspirators John Monteleone and Angelo LaPietra and other known Chicago Outfit associates such as former First Ward Alderman Fred Roti and reputed Mob fixer Pat Marcy
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have been "too numerous and too repetitive to be accidental" and that Caruso's testimony regarding his lack of knowledge of these individuals was "not credible." Id. at 44-45. Despite Caruso's removal from his CLDC positions as a result of the trusteeship and the subsequent filing of charges by the GEB Attorney seeking his permanent removal from the union for barred conduct, (See Exhibit K), Caruso retains his position as president and business manager of Local 1001 and remains a delegate to the CLDC. Caruso also continues to serve as the CLDC's delegate to the Chicago Building and Construction Trades Council and the Greater Chicago Port Council.
c. JOSEPH LOMBARDO, JR. was the secretary-treasurer of the CLDC and a trustee of four affiliated employee benefit funds at the time the LIUNA GEB Attorney implemented the CLDC trusteeship in February of 1998. He is the son of coconspirator and former Chicago Outfit street crew boss Joseph Lombardo, Sr. Lombardo, Jr. was employed as a business agent for the CLDC prior to his selection to be secretary-treasurer of the CLDC in 1987. Lombardo was appointed unanimously and without dissent even though at the time he was ineligible to hold the office because he was not then a delegate to the CLDC as required by Article VI of the Uniform District Council Constitution. Lombardo was appointed to this position to replace Chicago Outfit associate James Caporale who was ultimately forced to
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resign as a result of his incarceration on a RICO conspiracy conviction for looting over $2 million from the CLDC health and welfare fund on which he sat as a trustee. since his removal from office pursuant to the CLDC trusteeship, Lombardo, Jr. ran unopposed and was elected to the positions of vice president and CLDC delegate of Local 1. A protest of Lombardo's nomination has been lodged with the IHO by the LIUNA Inspector General charging that Lombardo, Jr. was again ineligible to hold this particular office since at the time of his nomination he had not then been working at the calling, as required by Article V, Section 4 of the Uniform Local union Constitution. This protest is pending.
d. LEO CARUSO is an associate of the Chicago outfit and the cousin of co-conspirators Bruno and Frank Caruso. At the time the CLDC trusteeship was imposed in February of 1998, Caruso, a delegate to the CLDC since 1986, was the CLDC sergeant-at-arms as well as a trustee to the CLDC pension fund, having replaced co-conspirator and Chicago Outfit member Frank "Toots" Caruso in these positions in 1995. In the CLDC trusteeship order, the IHO specifically found Leo Caruso to be "an associate of the Chicago Outfit." CLDC Order at 47. In 1991, Leo Caruso "resigned" from his street sweeping job with the City of Chicago's streets and sanitation department by whom he had been employed for over 25 years during the pendency of a "no-
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show jobs" investigation which implicated Caruso as well as a number of other city workers, including Frank Caruso and CLCC delegate and Caruso cousin, Nick Gironda. Despite Caruso's removal from his CLDC positions and the subsequent filing of charges by the GEB Attorney seeking his permanent removal from the union for barred conduct, (See Exhibit K) , he remains president and business manager of Local 1001 and a delegate to the CLDC.
e. FRANK "Toots" CARUSO is an member of the Chicago Outfit and the brother of Bruno Caruso and the nephew of coconspirator Fred Roti. Caruso was publicly identified as a member of the Chicago Outfit and 26th Street crew in a 1983 Senate hearing on organized crime. CLDC Order at 41. At the time the CLDC trusteeship was imposed in February of 1998, Frank Caruso was the director of the CLDC pension fund having previously resigned his union membership and CLDC positions rather than submit to a deposition by the GEB Attorney. Despite the circumstances of his resignation from LIUNA, Caruso retained his position as a paid employee of the CLDC affiliated pension fund for an extended period of time notwithstanding the repeated efforts by the GEB Attorney to convince the trustees of that fund, which included co-conspirators; John Matassa, Jr. and Leo Caruso, to remove him for his organized crime associations. In the CLDC trusteeship order, the IHO specifically found Frank Caruso to be "at least an associate of the Chicago Outfit."
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CLDC order at 42. Caruso resigned as a LIUNA member in April 1995 and was eventually removed from his position as director of the CLDC pension fund in 1998. Although he no longer holds any official position with the CLDC or Local 1006, Caruso maintains his right to reinstate his membership in LIUNA. Accordingly, charges were recently brought by the GEB Attorney seeking Caruso's permanent removal from the union for barred conduct (See Exhibit K).
f. JAMES DiFORTI is an member of the Chicago outfit currently under indictment for an alleged organized crime related murder. Beginning in 1985, DiForti served as a business agent for Caruso Locals 1001 and 1006 before being designated as a business agent for Local 5 in Chicago Heights in March 1994 and shortly thereafter being appointed to fill a vacancy as secretary-treasurer and delegate to the CLDC. Within days of becoming a CLDC delegate, DiForti was appointed to succeed John Matassa, Jr. , another Chicago Outfit member, as CLDC coordinator of committees, a position he still held at the time the CLDC trusteeship was filed in June 1997. Evidence was presented at the CLDC trusteeship hearing that DiForti was a trusted lieutenant to Chicago Outfit boss John Monteleone in charge of gambling and juice loan and street tax collections for the 26th Street crew and that he had been dispatched on orders of Monteleone to take over Local 5 in Chicago Heights and to conduct organized crime operations in the
33
south suburbs. CLDC Order at 57 This testimony is corroborated by a March 2, 1994 surveillance of a meeting involving DiForti and co-conspirators John "Apes' Monteleone, Bruno Caruso and Frank Caruso as well as 2C h Street crew member, Joseph 'Shorty" Lamantia, the day before DiForti resigned his position in Local 1006 so he could transfer to Local 5. Although DiForti resigned as a CLDC official and a LIUNA member in July 1997, following his indictment on murder charges, he maintains his right to reinstate his membership in LIUNA. Accordingly, charges were recently brought by the GEB Attorney seeking DiForti Is permanent removal from the union for barred conduct. (See Exhibit K).
g. ANTHONY JOSEPH ACCARDO, also known as "Joe Batters," was, at various times from at least the late 1960's up to the date of his death on May 27, 1992, the boss or the consigliere of the Chicago LCN family. Anthony Joseph Accardo controlled and directed the activities of coconspirators Alfred Pilotto and Angelo Fosco and others with respect to LIUNA and the Chicago Laborers District Council and its affiliated local unions and funds. In 1981, in the case of United states v Anthony Accardo, et al., No. 81-230-CR-JWK, in the United States District Court for the Southern District of Florida, Anthony Accardo was indicted along with then LIUNA General President Angelo Fosco and CLDC officials and affiliated fund trustees
34
Alfred Pilotto and James Caporale and others for RICO conspiracy involving the payment and receipt of kickbacks related to the sale of insurance plans to the CLDC Welfare Fund on which Pilotto and Caporale were trustees. Although Accardo was acquitted of the charges by the jury, substantial evidence was presented during the trial that a portion of this kickback money was received by Accardo as boss of the Chicago Outfit for approving and facilitating the kickback scheme. Accardo also directly participated in interfering with the rights of the members of LIUNA in the selection of their officers and officials in that he engineered the selection of Angelo Fosco as General President of LIUNA and improperly influenced the appointment of CLDC officers acceptable to organized crime, including Joseph Spingola. and his son-in-law, Ernest Kumerow.
h. JOSEPH JOHN AIUPPA, also known as "Joey O'Brien" and "Joey Doves," was, from at least 1978 to at least 1985, the boss of the Chicago LCN family. As the boss of the Chicago LCN family, Joseph Aiuppa controlled LIUNA local union affairs in Southern Illinois and in the area of St. Louis Missouri, as well as in Chicago, Illinois. Aiuppa also had a familial relationship with Dominick Christopher, former president of Local 2, and his son Michael Christopher, the secretary-treasurer of Local 2 until the recent imposition of trusteeship. In addition, Michael Christopher's son,
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Mike Christopher, has been employed as a business representative for the CLDC employee benefit funds since at least 1993. In 1986, in the case of United States v. De Luna, et al., No. 83-00124-07-W-8, in the United States District Court for the Western District of Missouri, Joseph Aiuppa was convicted along with co-conspirators, Angelo LaPietra and Joseph Lombardo, Sr. and other high-level LCN bosses of conspiracy to travel in interstate commerce in aid of racketeering, in violation of Title 18, United States Code, Sections 371 and 1952, arising out of the skimming of gambling proceeds from certain Las Vegas casinos which through the exertion of influence by Aiuppa had originally been financed by the Central States, Southeast and Southwest Areas Pension Funds associated with the International Brotherhood of Teamsters. Joseph Aiuppa was sentenced to serve twenty and one-half years in prison. Aiuppa' s conviction was affirmed in United States v. Cerone, 830 F. 2d 938 (8th Cir. 1987), cert. denied, 486 U.S. 1006 (1988) ("the Argent casino skimming case"). Joseph Aiuppa subsequently was permanently barred from influencing the affairs of the International Brotherhood of Teamsters in United States v. International Brotherhood of Teamsters, etc. et al., No. 88 Civ. 4486 (DNE) , in the United States District Court for the Southern District of New York. Aiuppa was released from prison in January 1996
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and acted as an advisor to the Chicago Outfit until his death on February 24, 1997.
i. JAMES CAPORALE was, from at least 1970 to 1987, a CLDC executive board member and delegate from LIUNA Local 1, which historically was controlled by long-time president and Chicago Outfit street crew boss, Vincent Solano. During this time period, Caporale served as secretary -treasurer of the CLDC. He also held the position of business manager of the CLDC from 1982 until 1987 and served as a trustee on the CLDC pension and health and welfare Funds from 1970 at least until his conviction on RICO conspiracy charges in 1982. From at least 1970 until 1987, Caporale was an associate of the Chicago LCN family. CLDC Order at 52. In 1981, in the case of United States v. Anthony Accardo, et al., No. 81-230-CR-JWK, in the United States District Court for the Southern District of Florida, James Caporale along with then CLDC vice-president and Chicago LCN capo Alfred Pilotto was indicted for RICO conspiracy for agreeing to multiple acts of receiving kickbacks relating to influencing the sale of insurance plans to the CLDC welfare fund for which he was a union side trustee. The indictment alleged that a portion of the kickback money was paid to high level organized crime figures, including Chicago LCN boss Anthony Accardo, in return for their support of the kickback scheme. Caporale was convicted of these charges in 1982 and sentenced to a
37
twelve year term of imprisonment and ordered to forfeit all union positions pending appeal. Caporale's conviction was affirmed in United States v. Caporale, 806 F.2d 1487 (11th Cir. 1986), cert. denied, 463 U.S. 1021 (1967). Despite his conviction for looting the CLDC welfare fund of over $2 million and the court-ordered forfeiture of his union offices, Caporale was permitted to retain his position as s secretary-treasurer of the CLDC and in 1982 was unanimously appointed as business manager, positions he held until his incarceration in 1987. Caporale's. son-in-law, Vincent DiVarco, the son of convicted Rush Street crew member Joe "Cesar" DiVarco, as a CLDC delegate and recording secretary of Local 2 until the recent imposition of trusteeship. In addition, Caporale's grandson, Joe Gilloran, has been employed as a business representative of the CLDC employee benefit funds since at least 1990.
j. SAMUEL A. CARLISI, also known as "Black Sam" and "Wings," at various times from at least the late 1970'st headed the Carlisi street crew of the Chicago Outfit which controlled illegal gambling operations, loan sharking and other illegal activities in the Cicero, Melrose Park and Countryside area. Carlisi also operated as underboss of the Chicago LCN under Joseph Aiuppa. Following the conviction and incarceration of Aiuppa in 1986, Carlisi took over as acting boss in Aiuppa' s absence, a position he held at least until his own incarceration in 1992. In
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1993, in the case of United States v. Carlisi, et al., No. 92 CR 1064, in the United States District Court for the Northern District of Illinois, Samuel A. Carlisi, his crew's underboss James J. Marcello and six upper echelon members of Carlisi's organized crime street crew were convicted of RICO conspiracy involving conducting an illegal gambling business, loan sharking, extortion and conspiracy to commit murder and arson. Carlisi was sentenced to serve twelve and one-half years' imprisonment but died in prison on January 1, 1997, while his conviction was on appeal. The convictions of Carlisi's co-defendants were affirmed in United States v. Zizzo, 120 F.3d 1338 (7th Cir. 1997). Carlisi directly participated in interfering with the rights of the members of LIUNA and the CLDC in that he engineered and improperly influenced the placement of Chicago LCN members and associates as well as certain of his relatives, including his nephews Nicholas and Dominick DiMaggio, in the CLDC and its constituent locals and the CLDC's Training Center and other affiliated funds.
k. ANGELO FOSCO was the General President of the LIUNA from October 1975 up to the date of his death on February 19, 1993. Fosco became the General President of LIUNA, succeeding his father, the late Peter J. Fosco, through the corrupt actions of LCN members, including Chicago LCN boss Anthony Accardo. Prior to his appointment as General President, Fosco had served as an International Vice-
39
President and regional manager of" the Chicago Regional Office of LIUNA. Fosco's actions in these positions were controlled by Chicago LCN capo and long-time Local 1 president, Vincent Solano. In 1981, in the case of United State.5 v. Anthony Accardo, et al., No. 81-230-CR(JWK), in the United States District Court for the Southern District of Florida, Angelo Fosco was indicted along with Chicago organized crime boss Anthony Accardo and CLDC officials and affiliated fund trustees Alfred Pilotto and James Caporale and others for RICO conspiracy involving the payment and receipt of kickbacks related to the sale of insurance plans to the CLDC welfare fund on which Pilotto and Caporale were trustees. Although Fosco was acquitted of these charges by the jury, substantial evidence was presented during the trial indicating that illegal kickbacks were received by Angelo Fosco for exerting his influence as a high-level LIUNA official in furtherance of the kickback scheme. Following his acquittal in that case, Angelo Fosco appeared before the President's Commission on organized Crime on or about April 22, 1985, and, asserting his privilege against self incrimination, refused to answer the questions of the President's Commission on organized Crime relating to whether members of organized crime were involved in LIUNA in Chicago and New York. Fosco also refused to answer the questions of the President's Commission regarding his imposition of trusteeships against local unions and about
40
his associations with the LCN. Angelo Fosco was the third successive General President of LIUNA who carried membership in a CLDC local union and was only the fourth LIUNA General President since 1908.
1. ANGELO LaPIETRA, also known as "The Hook," a long-time. member of the Chicago Outfit, was, from at least 1983 until his incarceration in 1986, a capo and street boas of the 26th Street/Chinatown Street Crew, having succeeded longtime street boss Frank "Skids" Caruso, the father of coconspirators Bruno and Frank Caruso. In 1986, in the case of United States v. DeLuna, et al. No. 83-00124-07-W-8, in the United States District Court for the Western District of Missouri, Angelo LaPietra was convicted along with co-
conspirators Joseph Aiuppa and Joseph Lombardo, Sr., of conspiracy to travel in interstate commerce in aid of racketeering, in violation of Title 18, United States Code, Sections 371 and 1952, arising out of the skimming of gambling proceeds from certain Las Vegas casinos originally financed by the Central States Pension Fund of the International Brotherhood of Teamsters and sentenced to sixteen years' imprisonment. LaPIETRA s conviction was affirmed in United States v. Cerone, 830 F. 2d 938 (8th Cir. 1987), cert. denied, 486 U.S. 1006 (1988) ("the Argent casino skimming case"). Angelo LaPietra subsequently was permanently barred from influencing the affairs of the International Brotherhood of Teamsters in United States v.
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International Brotherhood of Teamsters, etc. et al., No. 88 Civ. 4486 (DNE) , in the United States District Court for the Southern District of New York. Angelo LaPietra named his brother James LaPietra as the interim crew boss but continued defacto control of the street crew while in prison. When released from prison, LaPietra acted as an advisor to Chicago Outfit until his recent death on March 28, 1999.
m . JOSEPH LOMBARDO, SR., also known as "The Clown", a long-tire member of the Chicago Outfit, was, at least until his incarceration in 1982, and capo and street crew boss of the Grand Avenue Crew. In 1982 , in the case of United States v. Allen M. Dorfman, et al., No. 81 CR 269.1 in the United States District Court for the Eastern District of Illinois, Joseph Lombardo, Sr., was convicted along with former International Brotherhood of Teamsters President Roy Williams and others of conspiracy, wire fraud and interstate transportation in aid of racketeering in connection with a scheme to bribe former United States Senator Howard Cannon in an effort to influence proposed trucking legislation. Lombardo was sentenced to serve 15 years in prison. Also in 1986, in the case of United States v. De Luna, et al., No. 83-00124-07-W-8, in the United States District Court for the Western District of Missouri, Joseph Lombardo, Sr., was convicted along with co-conspirators Angelo LaPietra and Joseph Aiuppa and
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others of conspiracy to travel in interstate commerce in aid of racketeering, in violation of Title 18, United States Code, Sections 371 and 1952, arising out of the skimming of gambling proceeds from certain Las Vegas casinos originally financed by the Central States Pension Fund of the International Brotherhood of Teamsters obtained through the influence of Lombardo and co-defendant Joseph Aiuppa. Lombard received a sentence of 16 years' imprisonment to run concurrent to his previous sentence. Joseph Lombardo's conviction was affirmed in United States v. Cerone, 830 F. 2d 938 (8th Cir. 1987), cert. denied, 486 U.S. 1006 (1988) ("the Argent casino skimming case") , Thereafter, Lombardo, along with other leaders of the Chicago LCN family and members of the LCN Commission, was permanently barred from influencing the affairs of the International Brotherhood of Teamsters in United States v. International Brotherhood of Teamsters, etc. et al. , No. 88 Civ. 4486 (DNE) , in the United States District Court for the Southern District of New York. Lombardo was released from prison in November 1992 and has acted in the capacity as an advisor to the Chicago outfit since that time. Lombardo' son, Joseph Lombardo, Jr., was appointed to the position of secretary-treasurer of the CLDC in 1987, even though he was constitutionally ineligible at the time to hold that office.
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n. JAMES J. MARCELLO, also known as "Little Jimmy," from at least 1979 until his arrest and incarceration in 1992 acted as the underboss of the Carlisi Street Crew headed by Samuel Carlisi. With Carlisi's ascent to acting boss of the Chicago Outfit following the incarceration of Joseph Aiuppa in 1986, Marcello took over the role of boss of the Carlisi Street Crew and served as Carlisi's underboss of the Chicago Outfit. In 1993, in the case of United States v. Carlisi, et al., No. 92 CR 1064, in the United States District Court for the Northern District of Illinois, James Marcello, Samuel Carlisi and six upper echelon members of Carlisils organized crime street crew were convicted of RICO conspiracy involving conducting an illegal gambling business, loan-sharking, extortion and conspiracy to commit murder and arson. Marcello, was sentenced to serve twelve and one-half years in prison. His conviction was affirmed in United States v. Zizzo, 120 F.3d 1338 (7th Cir. 1997). Marcello, is the uncle of former CLDC delegate and Local 225 business manager John Galioto, who permanently resigned his membership in LIUNA following the recent imposition of a trusteeship over Local 225 and the filing of disciplinary charges against him by the GEB Attorney. In addition, Marcello's son, Rocco Marcello, has been employed as a field representative for the CLDC benefit funds since approximately 1994. Marcello has directly participated in interfering with the rights of the
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members of LIUNA and the CLDC in that he has improperly influenced the placement of Chicago LCN members and associates as well as certain of his relatives in the CLDC and its constituent locals and the CLDC's Training Center and other affiliated funds.
0. MICHAEL MARCELLO is the brother of incarcerated former Chicago Outfit underboss James Marcello. Prior to the conviction and incarceration of James Marcello, Michael Marcello assisted James Marcello in the operation of the Carlisi street crew's gambling operations. Michael Marcello has since risen to assume the role as a lieutenant to Joe Andriacchi, the former brother-in-law of Joseph Lombardo, Sr. and a current Chicago LCN underboss in charge of the Elmwood Park and North Side Crews. During the course of his testimony at the CLDC trusteeship hearing, John Matassa, Jr., the former vice president of the CLDC, admitted that he regularly met with Michael Marcello on almost a weekly basis. Matassa Order at 33. Law enforcement surveillances confirmed a number of these meetings. Id. at 31-32.
p. JOHN MONTELEONE, also known as "Johnny Apes," a longtime member of the Chicago LCN family, has, since the recent conviction and incarceration of many high-level Chicago organized crime figures, risen to the position of underboss of the Chicago Outfit, assuming control of operations for the south side of Chicago and the south and
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part of the western suburbs and replacing the 'Late Chicago LCN capo Vincent Solano as the "overseer" of the Laborers Union in Chicago. In 1985 in the case of United States v. Monteleone, No. 65 CR 40, in the United States District Court for the Eastern District of Wisconsin, John Monteleone was convicted of criminal contempt for his refusal in 1963 and 1984 to give testimony before a federal grand jury following a judicial grant of immunity, which had resulted in Monteleone's incarceration for a period of approximately three months for civil contempt. The grand jury at that time was investigating possible obstruction of justice charges in connection with Monteleone's 1979 refusal to testify before a previous grand jury concerning his knowledge of the 1977 contract bombing murder of an LCN associate in Milwaukee. Following his conviction by a jury on these charges, Monteleone was sentenced to a term of four years' incarceration. Monteleone's conviction was affirmed in United States v. Monteleone, 804 F.2d 1004 (7th Cir. 1986), cert. denied, 480 U.S. 931 (1987). Evidence presented during the course of the disciplinary hearing of John Matassa, Jr., the former vice president of the CLDC, established that Matassa continued to met with Monteleone even after the IHO's findings in the CLDC trusteeship proceeding that Monteleone and Alphonse Tornebene were top mob figures, including a two hour meeting immediately following a hearing before Judge Moran in connection with
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the CLDC trusteeship. Matassa Order at 34. Monteleone has directly participated in interfering with the rights of the members of LIUNA in the selection of their officers and officials in that he has improperly influenced the selection of officers of the CLDC and its constituent locals as well as employees of the CLDC's affiliated funds, including the employment of his son, August Monteleone, by the CLDC's Training Center.
q. ALFRED PILOTTO was, from at least 1970 to 1982, the president of LIUNA Local 5, located in Chicago Heights, Illinois. From 1975 to 1982, Pilotto also served as a Special International Representative of LIUNA and vice-president of the Chicago Laborers' District Council and a trustee of the CLDC's welfare fund. From at least 1970 to 1982, Alfred Pilotto also was a capo in the Chicago LCN family. In 1982, in the case of United States v. Anthony Accardo, et al., No. 81?230?CR?JWK, in the United States District Court f or the Southern District of Florida, Alf red Pilotto along with then CLDC secretary?treasurer James Caporale was convicted of RICO conspiracy by agreeing to multiple acts of receiving kickbacks relating to the sale of insurance plans to LIUNA?related benefit funds. Pilotto reportedly was the target of a botched organized crime hit approximately a month after he was indicted in that case. On September 14, 1982, Pilotto was sentenced to serve twenty years in prison and shortly thereafter resigned his
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positions in the CLDC and in Local 5. Pilotto I s conviction was affirmed in United State?v. Caporale, 806 F. 2d 1487 (11th Cir. 1986), cert. denied, 483 U.S. 1021 (1987).
Pilotto died on July 20, 1999.
r. FRED B. ROTI, a politically powerful former Chicago First Ward alderman, is the uncle of former CLDC president/ business manager Bruno Caruso and former CLDC official and Pension Fund Director Frank "Toots" Caruso. In 1992, in the case of United States v. Pat Maxey, et al. 90 CR 1045 (N.D. Illinois), Fred Roti was convicted of RICO conspiracy, bribery and extortion regarding the fixing of criminal cases in the Circuit Court of Cook County, including murder cases involving organized crime members or associates and was sentenced to 48 months' imprisonment. Roti was released from prison in 1997. As First Ward alderman, Roti was a key political patronage boss and, along with his co?defendant Pat Marcy, a fixer for the Chicago Outfit. Roti has directly participated in interfering with the rights of the members of LIUNA in the selection of their officers and officials in that he has improperly influenced the selection of officers of the CLDC and has been responsible for the pervasive hiring of LaPietra crew members and associates at the Chicago streets and sanitation department. Roti is a made member of the Chicago Outfit.
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s. JOHN SERPICO is a longtime organized crime associate of the Chicago LCN family. Serpico has served as an International vice-president of LIUNA and the assistant to the president under former LIUNA General President Angelo Fosco as well as trustee on various LIUNA affiliated International employee benefit funds. Following Fosco's death in 1993, Serpico was de8ignated by newly appointed General President Arthur A. Coia as chairman of the influential General Executive Board hearing panel which hears and makes recommendations regarding all appeals, charges, trusteeships and other disciplinary matters within the judicial power of the General Executive Board. Serpico was also president and business manager of LIUNA Local 8 in Chicago. While Serpico's local was in the territorial jurisdiction of the Chicago District Council, Local 8, in direct contravention of specific provisions of the LIUNA constitution, was permitted to affiliate with the Serpico controlled Central States Joint Board, an amalgamation of Local 8 and various local unions of the International Union of Allied Novelty and Production Workers, AFL-CIO. In April 1985, John Serpico appeared before the President's commission on Organized Crime. While Serpico acknowledged during his testimony that he personally knew and socialized with numerous individuals publicly identified as associated with organized crime, including former Chicago outfit boss Joseph Aiuppa and street crew bosses Vincent Solano, Fifi
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Buccieri, James "Turk" Torello, Joseph Feriolla and Ernest "Rocky" Infelise, he denied that either he or his union was dominated or influenced by organized crime. On January 18, 1995, John Serpico was suspended from his positions on LIUNA's General Executive Board and subsequently charged under the then newly enacted Ethics and Disciplinary Procedure with barred conduct for knowing association with members and associates of organized crime and with permitting such persons to exercise control and influence in the affairs of LIUNA. Serpico resigned his International positions prior to the completion of his disciplinary hearing on these charges and agreed to step down from his local union offices effective January 1996. From the date of his suspension until his final resignation from all positions with LIUNA over 85 percent of the membership of Local 8 was "transferred" without notice to LIUNA to various locals of the organized crime influenced Central States Joint Board controlled by Serpico. On August 4, 1999, in the case of United States v John Serpico, et al., No. 99 CR 570, in the United States District Court for the Northern District of Illinois, John Serpico was charged in an 11-count indictment along with another former LIUNA Local 8 official with racketeering, fraud and other offenses, alleging that they controlled the affairs of the Central States Joint Board, of which Local 8 was affiliated, for their personal benefit through a
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pattern of criminal activity that included multiple acts of nail fraud, bank fraud, labor kickbacks, money laundering and the illegal structuring of currency transactions. During his tenure with LIUNA, the decisions and actions of John Serpico with respect to LIUNA were influenced by organized crime. Despite his resignation from LIUNA, disciplinary charges have been filed against Serpico and another former Local 8 officer seeking their permanent bar from LIUNA membership for obstructing LIUNA's investigation into the affairs of Local 8.
t. VINCENT SOLANO was, from at least 1977 to the date of his death on November 16, 1992, a capo in the Chicago LCN family in charge of illegal gambling and vice activities on the near North side of Chicago. He also was the long time president and business agent of LIUNA Local I and from the 1970's until his death in 1992 served as a delegate to the CLDC and the CLDC's coordinator of committees as well as a trustee to the affiliated pension fund. Beginning in approximately 1982, Vincent Solano had the responsibility, on behalf of the LCN, to control co-conspirator Angelo Fosco with respect to Angelo Fosco's actions, decisions, and other matters relating to his service as General President of LIUNA. Vincent Solano appeared before the President's Commission on Organized Crime on April 22, 1985, and, asserting his privilege against self incrimination, refused to answer the questions of the
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President's Commission on Organized Crime relating to whether members of organized crime had influence over LIUNA matters in Chicago. Solano also refused to answer the questions of the President's Commission regarding his associations and conversations with Ken Eto, an LCN associate of Solano I s who was the target of an unsuccessful Mob hit ordered by Solano. In 1987, Solano arranged for the appointment of his son, Anthony Solano, as administrator of the newly created Chicago Laborers' Training Center. Since its inception, the Training Center has provided employment for a number of relatives of Chicago Outfit members, including a nephew of coconspirator Sam Carlisi and the sons of current Chicago LCN bosses John Monteleone and Alfonse Tornebene.
U. ALFONSO TORNEBENE, a cousin of former Chicago Outfit boss Sam Carlisi, is a long-time organized crime -member and current capo of the former Carlisi street crew and top lieutenant to Outfit underboss John Monteleone. Evidence presented during the course of the disciplinary hearing of John Matassa, Jr., the former vice president of the CLDC, established that Matassa had met with Tornebene on various occasions and continued to met with him even after the IHO's findings in the CLDC trusteeship proceeding that John Monteleone and Tornebene were top mob figures, including a two hour meeting immediately following a hearing before Judge Moran in connection with the CLDC trusteeship.
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Matassa Order at 34. Tornebene has directly participated in interfering with the rights of the members of LIUNA in the selection of their officers and officials in that he has improperly influenced the selection of his son, Roy Tornebene, as an employee of the CLDC's Training Center.
VIII
CORRUPTION OF THE CHICAGO DISTRICT COUNCIL
22. As set forth in paragraph 11 above, the Chicago Laborers District Council is the central governing body of the 21 constituent local unions in the greater Chicago metropolitan area and has supervisory powers on all matters relating to the Locals. The CLDC enters into collective bargaining agreements on behalf of its constituent local unions with private employers and the City of Chicago and also holds and controls the CLDC's $1.5 billion employee benefit funds through the appointment of union?side fund trustees. The rank and file do not directly participate in the process of governing the district council; nor does the rank and file have the right to approve or reject actions taken by the CLDC, including the negotiation of collective bargaining agreements. Thus, the officers of the Chicago Laborers District Council are entrusted with, and have ultimate power over, the fundamental contractual and statutory rights of the union members.
2 3. For decades, officers and delegates to the Chicago Laborers District Council from certain local unions, specifically Locals 1, 2, 5, 225, 1001 and 1006, have abused this trust and power. These
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CLDC officials, sore of whom are themselves members or associates of organized crime, have assisted and facilitated the LCN's domination and control of the CLDC and its constituent locals and affiliated funds through a pattern of abuse, including: (1) the avoidance of elections through uncontested nominations; (2) repeated transfer of power through the filling of vacancies between elections; and (3) the longstanding failure to address allegations of organized crime influence within the CLDC and to investigate and discipline union corruption involving the CLDC, its members and its constituent locals and affiliated funds. By affirmative misconduct, by failure to fully carry out their fiduciary obligations and by their deliberate refusal to exercise the CLDC's supervisory powers, these officers and delegates of the Chicago Laborers District Council created an environment in which decisions regarding the CLDC and its constituent locals and affiliated funds were made by members of organized crime and fostered a regime of corruption, extortion and intimidation at all levels of the union throughout the Chicago metropolitan area. This regime, as stated below, rested on a pattern of racketeering activity in violation of RICO.
IX
THE DOMINATION AND CONTROL OF THE
CHICAGO LABORERS' DISTRICT COUNCIL BY THE LA COSA NOSTRA
24. At various times relevant to this complaint, the Chicago organized crime family of the LCN, an organized crime group that operated in the Northern District of Illinois and elsewhere, infiltrated, and sought to control and dominate the Chicago
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Laborers District Council, its constituent local unions and the affiliated trust funds. By virtue of their relationship with various officers, delegates and agents of defendant Chicago Laborers District Council -- certain of whom have themselves been members or associates of organized crime -- the co-racketeers identified in paragraph 21 above endeavored to influence, dominate and control and conduct the affairs of the enterprises defined in paragraphs 27 and 40 below through the manner and means, among others, set forth below.
a. Selection of Officers to Control LIUNA: LCN control of the Chicago Laborers District Council and other elements of LIUNA is demonstrated by its influence in the selection of officers at every level of the union as illustrated by the facts set forth below:
(1) Outfit Selection of international Union Officials:
(a) The LIUNA Draft Complaint: In the fall of 1994, the Department of Justice sent a copy of a draft civil RICO complaint against LIUNA to officials of the international union. The Department informed the union that the case would be filed in United States District Court for the Northern District of Illinois if the officials did not enter into an agreement whereby corruption in LIUNA (a) The LIUNA Draft Complaint: In the fall of 1994, the Department of Justice sent a copy of a draft civil RICO complaint against LIUNA to officials of the international union. The Department informed the union that the case would be filed in United States District Court for the Northern District of Illinois if the officials did not enter into an agreement whereby corruption in LIUNA was eliminated. Venue for the suit in Chicago was based on the fact, among other matters, that the Chicago LCN
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family historically had controlled the highest officer in the union, the General President.
(b) The General President: In 1926, the late Joseph V. Moreschi was elected as General President of LIUNA. Since that time there have been only three other General Presidents of LIUNA: the late Peter J. Fosco, General President of LIUNA from 1968 until his death in 1975; Peter J. Fosco's son, Angelo Fosco, who was the General President of LIUNA from October 1975 until his death in February 1993; and Arthur Armand Coia, the current General President, who was elected General President by the General Executive Board upon the death of Angelo Fosco. The three former General Presidents were members of LIUNA local unions in Chicago, Illinois, which have historically been controlled or influenced by organized crime. Joseph Moreschi was a member of LIUNA Local 1; Peter J. Fosco and Angelo Fosco both were members of Local 2 of LIUNA.
(c) The Death of Peter Fosco: In the summer of 1975, it became known that Peter Fosco was ill and might soon die. In order to maintain control over the affairs of LIUNA, co-conspirator Anthony Accardo, also known as "Joe Batters,"
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who was at that time either the boss or the consigliere of the Chicago LCN family, ordered that co-conspirator Angelo Fosco, Peter Fosco's son and then the regional manager of the Chicago Regional Office of LIUNA, would become the General President of LIUNA. These orders were followed by Angelo Fosco and others because Anthony Accardo was a leading figure in the Chicago LCN family.
(d) The Selection of Angelo Fosco: Peter Fosco died in October 1975. At a meeting of the General Executive Board held at the Rodeway Inn in Chicago, Illinois for the purpose of selecting the new General President, the name of Angelo Fosco was placed in nomination by the late Michael Lorello, then an International vice-President and the regional manager of the LIUNA's New York-New Jersey Regional Office and an associate of the Genovese LCN family. Accardo arranged to have a Board member flown in at the last moment to attend this meeting so that the deciding vote could be cast for Angelo Fosco.
(e) Arthur E. Coia: In the middle 19801s, Arthur E. Coia began an effort to challenge Angelo Fosco for reelection as General President
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of LIUNA. Coia undertook this campaign because he lacked respect for Fosco and believed that Fosco's conduct harmed LIUNA and the LCN's control of LIUNA. Shortly before the 1986 General Convention of LIUNA, Arthur E. Coia met with Joseph A. Todaro, Sr. , the boss of the Buffalo LCN family, who advised Arthur E. Coia that he should abandon his effort to challenge Fosco because the Chicago LCN family would not yield its control of the position of the General Presidency of LIUNA. In addition, shortly before the 1986 General convention of LIUNA, Arthur E. Coia was instructed by unknown LCN figures to stop his effort to challenge Fosco, and he complied. Angelo Fosco was reelected General President of LIUNA without opposition at the 1986 General Convention.
(f) Arthur A. Coia: In 1989, Arthur A. Coia sought to take his father's place as Secretary Treasurer of LIUNA. When Arthur A. Coia sought Angelo Fosco's approval for this maneuver, Fosco stated that the move was fine with him, but that Coia needed to obtain the approval of John Serpico, a member of the General Executive Board of LIUNA and a native of Chicago. Serpico arranged for a meeting in Chicago where Coia met
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with Vince Solano, the business manager of Local 1 and also the boss of the North Side LCN crew. Solano informed Coia that he could take his father's place as the number two man in LIUNA, but that the Chicago Outfit controlled the presidency of the international.
(g) "We made you...": The control and domination by the LCN of the General Presidency of LIUNA is best illustrated by the following statement made to then General President Angelo Fosco by Chicago organized crime street crew boss and co-conspirator Alfred Pilotto, referred to at paragraph 21 q. above: "We made you General President, we made your father General President before you and we made Moreschi General President before him. We can unmake you General President just as fast." See Exhibit B, CLDC Order at 49.
(2) Selection of Chicago District Council and Local Officials;
(a) CLDC Officers and The Outfit: In June 1997, when LIUNA's GEB Attorney notified the CLDC of his intent to place the CLDC into trusteeship, the following members or associates of the Chicago organized crime family were the principal officers of the Chicago Laborers
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District Council: John "Pudgy" Matassa, Jr., was CLDC vice president and trustee of three affiliate funds; Bruno Caruso was CLDC president and business manager and trustee of two affiliated funds; Joseph A. Lombardo, Jr., the son of co-conspirator and Chicago LCN capo Joseph A. Lombardo, Sr., was CLDC secretary treasurer and trustee of four affiliated funds; Leo Caruso, was CLDC sergeant-at-arms and a trustee of an affiliate fund; James DiForti was the coordinator of committees to the CLDC and Frank M. "Toots" Caruso held the position of director of the CLDC affiliated pension fund.
(b) The Trusteeship Hearing: Evidence presented at the CLDC trusteeship hearing demonstrated that no less than 14 members and associates of organized crime in Chicago have at various times served as officers of or delegates to the CLDC and/or as trustees, officers or employees of the CLDC affiliated employee benefit funds. In addition, at least 11 other individuals who are close relatives of Chicago organized crime members or associates were then serving or had previously served as officers of or delegates to the CLDC and/or as trustees, officers or
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employees of the CLDC affiliated employee benefit fun
