I found an interesting article, published in Wasington Post, March 15, 1962. With his own words, Lucky Luciano explained why and how he was allowed to switch prison from the dreadful Sing Sing to a more tolerable prison during the WWII. And it had nothing to do with him allegedy helping out the US Navy.

http://news.google.com/newspapers?nid=1356&dat=19620315&id=BcVOAAAAIBAJ&sjid=uw4EAAAAIBAJ&pg=4534,2786310