Despite being arrested numerous times as a young man, Meyer Lansky never served a prison sentence. He worked hard to keep a low profile. But, his profile got a lot higher when he was twice subpoenaed to appear before Senator Estes Kefauver’s Investigations Subcommittee in 1950-51. Lansky comported himself well, and the hearings weren’t a trial or a court of law. But, lots of people suddenly got very interested in this proverbial “little Jewish guy” who seemed so high up in the Mob:

The town fathers of Saratoga Springs NY and Hallandale FL were shocked—yes, shocked—to discover that he was operating casinos in their saintly hamlets. He was convicted on a minor gambling rap in Saratoga Springs and served less than three months in the local lockup—his only time behind bars. A reporter and photographer from the New York Sun accosted him as he boarded a ship to Italy to visit his old pal Charlie Luciano, and splashed the story over multiple columns. NYPD arrested him in 1958 on a visit to the city, and charged him with “vagrancy”—a favorite ploy for harassing unsavory characters. The FBI caught his famous “we’re bigger than US Steel” remark on an unauthorized wiretap in his hotel room. Hank Messick, a reporter for the Miami Herald, in 1965 wrote a series of articles on Lansky, claiming he was “Boss of the Eastern Syndicate” and was “worth $300 million.” Both were wild exaggerations, but they stuck to him forever. Nixon’s Justice Department organized a “Get Lansky” squad, similar to the “Get Hoffa” squad under the Kennedys.

That’s when Lansky decided to leave the US for Israel. Lansky was not an observant Jew, and he was figuring “out of sight, out of mind.” But, Lansky always had a soft spot for Israel, running arms to the Jewish state during its War of Independence, and sending regular donations. But, the Justice Department was still on his case:

Israel’s Law of Return states that any Jew, defined as someone born of a Jewish mother, has the right to live in Israel and become a citizen. An amendment to the law in 1954 enables the government to bar or deport any Jew who poses a threat to Israel’s national security. Lansky’s sole conviction on a minor gambling rap hardly constituted a threat to Israel’s national security. But, the Justice Department convinced Israel’s Interior Minister, who had authority over immigration, that little Meyer was the arch-fiend. And, when the Minister brought his case to Prime Minister Golda Meier, she replied: “Mafia? No Mafia in Israel!” Lansky was ordered to leave.

He had the right to appeal to Israel’s Supreme Court. He hired a crack legal team and even participated with Israeli journalist Yuri Dan in an “authorized biography” (Dan knew nothing of US organized crime, and Lansky BS’d him up, down and sideways). But, the Justice Department invited the government’s lawyer to Washington, rolled out the red carpet for him, and gave him access to everything on Lansky in the FBI’s files. Most of it was hearsay, or obtained via illegal or unapproved surveillance, and would have been inadmissible in an American court. But, it was enough to convince Israel’s Supreme Court: Lansky had to go. He made several attempts to avoid returning to the US (including trying to enter Paraguay as an “agricultural worker”). But, the FBI bird-dogged him all the way. Lansky landed at Miami International in November 1972 and faced several serious charges.

The first was a drug charge: He was found with an ulcer medication for which he couldn’t produce a prescription. But, his lawyer got the charge dismissed because Lansky had been arrested and charged by Miami Dade police in the international customs area of Miami International, which is federal property.

Lansky next was charged by the feds with failure to answer a subpoena, served on him in Israel, to appear before a grand jury; he claimed to be too sick to travel, and sent a doctor’s note instead of showing up. He was convicted and sentenced to a year and a day in prison. But, his lawyer showed an appellate court that the overzealous US Attorney had given Lansky only two days to wrap up his affairs in Israel and appear before the grand jury—too little time for even a well man to prepare. The court agreed and the conviction was overturned.

Next, the government charged Lansky with money laundering. Fat Vinnie Teresa, former New England Mafiosi turned government informant, clamed he’d delivered $100,000 to Lansky in Hallandale from a London casino run by Lansky’s old friend and associate Vincent (Jimmy Blue Eyes) Alo. But, Lansky’s lawyer proved that his client was in a Boston hospital recovering from hernia surgery on the day he was supposed to have received the money, and his surgeon testified that his patient was too weak to have climbed out of bed, flown to Hallandale, and then returned to the hospital. How could Lansky be in two places at once, his lawyer asked Teresa. Fat Vinnie, never the most reliable witness, replied, “I dunno, he musta had a double.” The jury acquitted Lansky.

The fourth charge concerned a $200,000 fee Lansky received from Morris Landsburgh, a Mob-connected hotel operator, for the sale of the Flamingo Hotel in Las Vegas. Lansky was up-front about the transaction, and declared it on his income tax returns. But, the same overzealous US Attorney claimed it proved he had an illegal “hidden ownership interest” in the Flamingo. This time Lansky claimed to be too sick to participate in his defense, and a court-appointed doctor confirmed it. But the US Attorney persisted, even after the judge “suggested” that the charge be dropped. Finally, after numerous delays caused by Lansky’s health problems, the judge ordered the charges to be dismissed.

Score: Lansky 4, The Law 0.

But, Lansky’s victory was Pyrrhic. Constant government harassment prevented him from pursuing his lucrative gambling interests. Legal fees ate up his savings. He blew his last $50k on an unsuccessful operation to cure a chronic neurological disorder in his ne’er-do-well son Buddy. He died almost broke. Many think he had millions hidden away in Swiss bank accounts or elsewhere, but none, including Jimmy Blue Eyes, have been able to find it.

Turnbull. Well done my friend! And I largely agree with this assessment about the trajectory of Lansky's life and his finances.

I do believe that towards the end of his life he had spent most of whatever fortune he had accumulated during his lifetime. Not that he was a pauper. I'm sure he had a few incomes coming in from whatever moves he was currently earning and lived comfortably. But as far as a $300-Million stash, or even having one million dollars cash, I don't doubt him when Meyer stated to a newspaper reporter that he wishes he had 1 million.

His life had many twists and turns, and he traveled and lived (and hid) all over the world. That takes big money. And he lived very well also. He knew good things and bought the best. It takes cash.

He blew his balls in Havana, He sometimes lost in other ventures as well. He had plenty of partners. And from the "giddy-up" mob guys NEVER make the kind of money that law enforcement and the media make them out to earn.

So was he broke? I doubt it. But we he flush? I'm not so sure. And he may have been scrapping the bottom of his bankroll.

Only he and his kids will ever know for sure.....the rest of us can only speculate.

Yes, Lansky was never flashy but he lived well when he had money. Modest home in Hallandale FL, but lived in fancy apartment buildings in NYC. Always well dressed, but conservatively. Liked fine restaurants, often visited the kitchens and gave advice on what to buy. Did better during Prohibition than afterward. Lost $4 million when Castro seized his Havana Riviera Hotel 9 months after it opened. Also lost money on oil wells in Michigan. He did ok skimming several Vegas hotels. His family life was a mess.

doesn't figure that he died broke, too many casino holdings for many years, money must have been stashed, too smart of a man to die broke,

Logic is on your side, Binnie. But, no if he did have money stashed away, one has ever been able to find any of it in nearly 40 years.

but his relatives, would never say because, they would not want the IRS to know, you can bet the IRS has been snooping around since he died

He had a ton of money when he died. It just wasn't in his own name. According to his own daughter, he had $15 million to his own name when he transferred much of his wealth to his brother. That was in 1969. Sadly, Jake died shortly after Meyer died and Jake's widow knew nothing of this arrangement. Some idiot here said Jake saved and saved. That couldn't be further from the truth. You should see how Jake's family is living these days. They own property all over the country.