He helped out Tony and himself by blaming Jackie Sr. for the Willie Overall thing. I don't see the harm in the misinformation, he wasn't snitching or giving up anything that could hurt anyone and Tony was pleased when he heard the news. Pretty smart really. Like Pussy said before they capped him "This disinformation is an effective technique!......it's a friggin' Ace!!!!" Only Puss was snitching and giving up legit info.