A crew of Lucchese associates went into a stripclub which was run by Ralphie Balsamo and the Genovese family. They didn't behave well and the Genovese thought the Lucchese were tryiong to take over the joint so Balsamo came with a crew of guys to confront them, which ended up in a fistfight. Afterward the two families had to settle the beef.

Pennisi was not made over this as he had already been proposed by that point. The Lucchese were not happy because they expected him to keep a low profile while his name was going around to the other families and this beef could jeapordize his induction. Ultimately, it didn't and he was made.

Interestingly, during the fight between the genovese and lucchese guys, nobody touched Pennisi because they thought he was a made guy. So apparently, he tried to fight with guys but they wouldn't go at him, which cause another embarassment as the Lucchese thought he was avoiding the fight.