Frank “Mr. Big” Balistrieri: 1961-1993
Balistrieri was college educated and attended law school for six months. As a young man, he started working for the Milwaukee crime family, which owed allegiance to the powerful Chicago Outfit criminal organization in Chicago. Balistrieri soon built a reputation for arrogance, cruelty and ruthlessness. Balistrieri allegedly received the “Mad Bomber” nickname because he frequently used Improvised Explosive Devices (IEDs) attached to cars as weapons against his enemies. He married Antonina (Nina) Alioto and soon his father-in-law and Milwaukee boss, John Alioto, was grooming Balistrieri as his successor. Balistieri had already established a sizable loan shark “book”, monopolistic control over illegal sports betting and large-scale influence over vending machines. He would launch the criminal organization based in Milwaukee to greater illegal heights.

In 1961, John Alioto retired and Balistrieri took control of the Milwaukee family. Balistrieri eventually referred to himself as “the most powerful man in Milwaukee.” Balistrieri conducted his business at a table at Snug’s restaurant in Milwaukee’s Shorecrest Hotel, giving orders over a red telephone.

Jennie Alioto testified in January 1962 that on occasion she kept some records of the Hotel Roosevelt and The Pub at her home and worked thereon.

A search warrant was issued and executed on September 26, 1962, by Ernest G. Johannes, Special Agent, Intelligence Division, Internal Revenue Service, and other Special Agents of said division. The warrant authorized the search of Apartment 406, 1609 North Prospect Avenue, occupied by Jennie Alioto under the alias of Lorretta Fischer. The warrant gave permission to search for: books and records of the Hotel Roosevelt; The Pub; Ben Kay; Tower Tavern; Melody Lane; Bonfire; Badger State Boxing Club; and Frank Peter Balistrieri.

On April 13, 1963, the court made the following decision: the warrant issued regarding the property in Jennie Alioto’s apartment was not valid because it lacked sufficiency of designation of the objects of the search and seizure. The search and seizure conducted pursuant to the invalid warrant was illegal, and the objects obtained thereby must be returned to the movants.

In May of 1963, John Alioto’s son, Joseph, died at the age of 41.

Balistrieri, through his adviser Joseph Caminiti and the Teamsters Union, began supplying local politicians, including Mayor Henry W. Maier, with postage stamps. Rather than use cash or check, which may be easier traced, they decided this was a good way to influence the people who grant licenses. When questioned years later, Maier told reporters, “Balistrieri never asked me to do a damn thing for him — and I never did a damn thing for him.” He acknowledged that they had met, but never offered each other more than a greeting.

Around April 1964 (but possibly as early as September 1961), Frank was employing girls at the Downtowner cocktail lounge (340 West Wells Street) and at Henri’s restaurant (730 North 5th Street) to be prostitutes. The FBI brought in and identified either 38 or 83 of these girls, 13 of whom had prior vice arrests. One girl was Silia O. Pichs-Martin, who had actually been deported from Miami after getting arrested on June 16, 1960.

Around April 20, 1964, state prostitution charges were dropped against Noelle Marie DeMazelier, who went by the stage name of Darbi Wilde at the Downtowner. The prosecutor, Donald Steinmetz, reduced the charge to a city fine of $25 when it was learned that DeMazieler was in San Francisco undergoing surgery for an automobile accident.

November 13, 1964 — a sergeant with the Milwaukee Vice Squad informed the FBI that on at least three occasions he has seen a well-known gambler and pimp in the Downtowner or Gallagher’s with Balistrieri. He suspects that the prostitution may have gone “underground”, but that Balistrieri might be referring clients to the pimp.

January 1965 — Balistrieri and his bookkeeper Miss Jennie Alioto (2440 North Dousman Street) were indicted on charges of tax evasion (conspiracy to defraud the government).

By January 13, 1965, the Milwaukee Vice Squad became slightly less concerned with Balistrieri’s prostitution involvement, as they believed he would most certainly get sentenced for his tax evasion, and either rat out his friends or end up getting offed to prevent him from talking. In the words of one officer, he may “wind up in the river before he has a chance to say very much.”

Frank’s son Joseph Balistrieri earned a law degree from the University of Wisconsin-Madison in 1965.

One alleged prostitute being hunted by the FBI was Marilyn Shelton, who was very elusive. In August of 1965, the FBI searched credit bureau records and did not find her, and when interviewing the property manager (Olive Forrester) of the apartment where she may have lived (915 North 24th Street), Forrester claimed to never have heard of anyone named Shelton in the years that she was the manager.

Roughly May 19, 1966, Frank (living at 3043 North Shepard Avenue) filed to have his federal tax evasion case moved to the Southern District of Illinois, on the grounds that the newspapers of Madison and Milwaukee have given his case too much negative publicity.

In March 1967, Balistrieri was convicted of income tax evasion and was sent to prison for two years. In June 1971, he was released.

In March 1967, Balistrieri would be convicted for felony income tax evasion. He had no reason to fear losing control over the rackets because he had placed his brother Peter as his underboss and acting boss during his absence. He served two years at the federal prison located at Sandstone, Minnesota and was released in June 1971.

Peter Balistrieri, Part One: 1967-1971
While in prison Frank Balistrieri installed his brother Peter as acting boss and the crime family deteriorated.

Mayor Joseph Alioto of San Francisco, nephew of former mob boss John Alioto, threatened to sue Look magazine for $12.5 million on September 5, 1969 for an article they wrote claiming he had mob ties. The article said Alioto had provided Mafia leaders “with bank loans, legal services, business counsel and the protective mantle of his respectability. In return he has earned fees, profits, political support and campaign contributions.” They further alleged that when Alioto ran for mayor in 1967, “the Cosa Nostra did its part”. The magazine claims that Alioto, as board chairman for the First San Francisco Bank, “personally arranged” loans totaling $105,000 for Mafia hitman Jimmy “The Weasel” Fratianno. Alioto did not deny this claim. And regardless of his connections to the mob in San Diego, his connections to Milwaukee are quite clear.

On November 28, 1969, fourteen agents (ten from the Attorney General’s office) participated in a raid on the Scene, a nightclub which the press described as linked to Frank Balistrieri.

In June 1970 Warren objected to the Milwaukee Common Council’s granting of liquor licenses to taverns associated with Balistrieri.

Some point in 1970, convicted felon Joseph Alioto sold Alioto Distributing to his sister, Jane Alioto, for $500 because Joseph could not own a license. John Balistrieri was appointed manager.

Frank Balistrieri, Part Two: 1971-1983
On October 25, 1971 an informant told the FBI that John Alioto still held the position of a capodecina in the Milwaukee crime family.

Former mob boss John Alioto hosted a dinner at Alioto’s restaurant in honor of his nephew, San Francisco mayor Joseph L. Alioto on Thursday, March 30 1972. The mayor spoke to approximately 80 of his cousins, and stumped for Hubert Humphrey and his presidential bid. Introducing him was another cousin, attorney Joseph Balistrieri, son of mob boss Frank Balistrieri. One suspects this did not help dispel the rumors of Mayor Alioto’s mob ties.

Some time in July, Alioto fell while at his restaurant (3041 North Mayfair Road, Wauwatosa — which was still Alioto’s as of 2011) and had to be hospitalized. Alioto died on August 27, 1972 from a heart ailment at St. Michael’s Hospital. While constantly under suspicion from the FBI, he was never caught for any serious offense. The Milwaukee Journal honored him on September 1 with the headline, “Restauranteur Alioto Dies of Heart Ailment”. He had a funeral at St. Rita’s Catholic Church and was buried at Holy Cross Cemetery on September 6, 1972.

The FBI reports that capo Phil Priola of the Rockford crime family (and owner of Towne and Country Motel) was made aware of Alioto’s death by an informant, but declined to have any of the Rockford family attend the funeral for fear that this would lead to them being placed under surveillance by the police or FBI. This same informant did, however, say that every known member of the Milwaukee family attended the funeral. One unidentified member of the Madison crime family was also in attendance.

Louis Fazio was shot to death in an alley behind his home at 2805 North Humboldt Avenue on September 27, 1972.

By 1972 or 1973, Balistrieri was approached by California real-estate developer Allen Glick regarding Las Vegas. Glick had desired to build a casino in Las Vegas but lacked the funding. According to the testimony given by former Cleveland LCN Family underboss and acting boss Angelo “Big Ange” Lonardo, Balistrieri contacted Kansas City crime family boss Nicholas “Nick” Civella about a possible loan to Glick. Civella, with his influence over Teamsters Union official Roy D. Williams, was able to secure the funding. Williams was able to extract the funds from the Teamsters’ Central States Pension Fund. The pension fund had been a creation of previous Teamsters boss and the notoriously corrupt James R. Hoffa.

On March 20, 1974, Balistrieri met with Kansas City mobsters Nicholas Civella and Carl DeLuna, in Las Vegas. During the meeting, the mobsters agreed that Balistrieri would meet with the mafia front man in Las Vegas, Allen Glick, to secure an option to purchase part of his Argent Corporation. Glick would agree to sell half of the corporation’s ownership to Balistrieri’s sons, John Balistrieri and Joseph P. Balistrieri, for $25,000 which, as the mobster later claimed, “he had an obligation arising from the assistance to Glick in obtaining a pension fund commitment in the amount of $62.75 million.”

Soon Balistrieri and Civella were feuding over each other’s share from the skimming operations. Finally, they requested arbitration from The Outfit. The results of the arrangement, as ruled by Outfit leader Joseph “Joey Doves” Aiuppa and underboss John “Jackie The Lackey” Cerone, demanded that The Outfit receive a 25% tax as its cut in skimming operations until the racket collapsed in 1981.

The skim racket worked very easily. Monies collected from patrons were to be accounted for in what was known as the “count room”. Before the proper accounting was completed, portions of the casino’s earnings were collected and shipped back to crime bosses in Milwaukee, Kansas City, Cleveland and Chicago. An exact figure has never been given on how much was actually taken. Law enforcement, however, claims that from 1974 to 1981 that it was estimated to be well over $2 million. Lonardo, while giving his testimony to the U.S. Senate, states that Cleveland’s portion averaged $40,000 a month. Lonardo also said that a dispute over the illegal amounts arose between the criminal organizations of Milwaukee and Kansas City.

Vincent Maniaci was turned down for an operators license for Little Caesar’s (1758 North Water Street — the Trocadero in 2011) in July 1975 due to his criminal record. The city did, however, grant a license to 27-year old Richard W. Czarnecki who took over the business. This decision went against alderman Edward Griffin, who believed that despite Czarnecki’s clean record, his association with known and suspected underworld figures presented a risk.

If Balistrieri was influencing Las Vegas’s underworld, he also was held a tight grip over the day-to-day criminal operations and their operators based in Milwaukee. On September 11, 1975 gambling operator August Maniaci, a suspected informer, was murdered by five gun shots to the head in an alley outside his Milwaukee home at 2121 North Newhall Street. A witness claimed to have seen Chicago Outfit member and a suspected hit man, Charles Nicoletti, near Maniaci’s home moments after his murder. In contradiction to this, Robert D. Hardin testified that he helped Nick D’Andrea murder Maniaci. Maniaci apparently owed Chicago gangster Albert “Caesar” Tocco money. (Nick D’Andrea was later killed by another Chicago mobster, Nick Calabrese, in August 1981. His body was mutilated and placed in a burning car.) Maniaci, who had five bullet holes in his head, was moved to his garage. The gun that killed him would later be found by a sanitation worker in a storm drain near the Milwaukee River. At the time of his death, Maniaci’s official job was working as a salesman for Prize Steak Products at 4264 South 27th Street, Milwaukee.

By 1978, the gun involved in Maniaci’s slaying was traced… sort of. The gun, a .22 Browning automatic, had been purchased from Tamiami Gun Shop in Miami in 1967. From there it went to the Duome Import-Export Company, but was soon passed on to an unidentified owner.

Joseph Frank Alioto died in 1976 at age 39.

On Monday, May 24, 1976 Frank La Galbo, who had previously been tied to two murders in Milwaukee, was found dead of a gunshot wound to the right side of his head. The weapon was a 6.35mm Astra automatic. Although it appeared as though he was getting into his car, the medical examiner ruled it a suicide. Two suicide notes were found in his home. Police did not investigate further, noting that La Galbo had been in fear of his life for a long time. His Peshtigo cottage, for example, was guarded by dogs and electrified wire. La Galbo’s brother-in-law, Joseph Regano, was with Frank the morning he died and said Frank was depressed, especially since suffering a stroke in January that left him paralyzed on his left side.

In June 1976, August Palmisano sold his one-third ownership of Palmy Corp (which owned Richie’s on Broadway) to his son, John A. Palmisano.

On October 2, 1976 (during the 1976 football season), FBI agents observed Sam Librizzi meet with Di Salvo in the parking lot of St. Michael’s Hospital. When they were observed, Librizzi had the trunk of his vehicle open and both were standing at the rear of the vehicle talking. Photographs were taken of them on this occasion by government attorney J. Kenneth Lowrie. Later on October 2, 1976, after Librizzi and Di Salvo left the St. Michael Hospital parking lot, Di Salvo was observed going to Frank Balistrieri’s house and then leaving a short while later.

On October 3, 1976, agents of the FBI observed Di Salvo again meeting with Sam Librizzi in the parking lot of St. Michael’s. Di Salvo was at the lot when Librizzi arrived. Upon arriving, Librizzi got into Di Salvo’s car. The two were observed discussing something in Di Salvo’s auto for approximately 10 minutes. On October 4, 1976, agents again observed Librizzi meet with Di Salvo at the hospital parking lot. On this occasion, Di Salvo got into Librizzi’s car for a short period of time and then both got out and stood alongside the vehicle. The meeting lasted approximately four minutes, and during it Di Salvo was gesturing in a forceful manner and speaking in a very loud voice. On this occasion, Librizzi said little or nothing, and was observed shrugging his shoulders.

On Tuesday, March 15, 1977, two pistol shots shattered the window of The Hair Company at 5:30pm. The Hair Company, on the second floor at 324 East Wisconsin Avenue, was owned by Charles Seth Gottlieb, the son-in-law of Frank Balistrieri. Gottlieb immediately called his business partner, Michael Haas, at his residence at 3240 North Gordon Place. Michael was not home, but his wife Marie informed Gottlieb that the home had also just been shot — with two shotgun blasts and four pistol shots.

On March 29, 1977, Charles Nicoletti received three .38 slugs to the back of his head while waiting in his Oldsmobile in a suburban Northlake, Illinois, restaurant parking lot. He was brought to the hospital where he died six hours later. Nicoletti’s car was never turned off, and consequently overheated and started on fire. Some said that Nicoletti was murdered in retaliation for a hit on a Milwaukee, Wisconsin mob leader, but this is probably a false lead.

Paul La Galbo sold his firm, Midwest Vendors, to Alioto Distributing in 1977 for $4100.

In 1977, Vincent Maniaci experienced car trouble and pulled over to find 20 sticks of dynamite under the hood of his car. He was the brother of slain mob member August Maniaci. Vincent soon fled to Hawaii.

On Thursday, August 11, 1977, rock star Peter Frampton testified in Milwaukee on a John Doe hearing investigated drug traffic by Charles Gottlieb. Frampton knew the Gottliebs because they were friends with Milwaukee native Penny McCall, Frampton’s girlfriend. When performing in Milwaukee, Frampton even wore a Hair Company jacket and the Gottliebs were backstage.

Frank Balistrieri’s football gambling business accepted $6,710 in wagers on December 23, 1977, $11,090 in wagers on December 24, 1977, $1,850 in wagers on December 25, 1977, and $12,060 in wagers on December 26, 1977.

On December 29, 1977, Dennis Librizzi was observed meeting with Nunzio Basile, a writer for Sam Librizzi’s 1977 bookmaking operation, at the Kohl’s Food Store parking lot on Mequon Road. This meeting occurred pursuant to arrangements made the previous day in a telephone conversation between Sam Librizzi and Basile.

In 1978, John Balistrieri helped Jennie Alioto to purchase a rental property at 1601 North Jackson Street in Milwaukee. Since the purchase, John Balistrieri has assisted Alioto in managing the property.

A suspected informer, August Palmisano, was slain by a car bomb on June 30, 1978. He was inside his underground garage at Juneau Village Garden Apartments at 1319 North Jackson Street. Frank Balistrieri was quoted as saying, “He called me a name — to my face — and now they can’t find his skin!” Approximately twenty other cars in the garage were damaged, too.

On July 29, 1978, in the presence of an undercover agent, Peter Frank Balistrieri, Joseph Zito, Charles F. Vince, Phillip Joseph Emordeno, and Benjamin “Leftie” Ruggiero, Frank Balistrieri stated, with respect to one August Palmisano, “he called me a name — to my face”; he was “arrogant,” and “now they can’t find his skin.” In the same conversation, it is reported, Frank Balistrieri stated, with respect to one Vincent Maniaci, “he was an informer too.” Also with respect to the July 29 meeting, after the undercover agent was introduced to Frank Balistrieri, Balistrieri pointed a finger at the undercover agent and stated, “I know all about you,” “we been looking for you all week — we figured you were the G” — and “We were gonna hit him — we didn’t know what this was about — we thought he was the G.”

On August 25, 1978, Special Agents Gail T. Cobb and Joseph Pistone of the FBI, acting in undercover capacities, and Benjamin Ruggiero went to Snug’s Restaurant in Milwaukee, where they observed Balistrieri seated at a table with DiSalvo and others. Balistrieri motioned Ruggiero over to his table, and Cobb and Pistone remained in the bar area. After about 20 minutes, Cobb and Pistone were escorted to Balistrieri’s table and Pistone was introduced to Balistrieri and DiSalvo. After this meeting, Ruggiero told Cobb and Pistone what Balistrieri had said to him before they were escorted to his table. Ruggiero’s statements were recorded en route from Snug’s to the Midway Motor Lodge in Agent Cobb’s automobile. In this recorded conversation, Ruggiero repeated in substance that Frank Balistrieri had told him that football was the biggest thing in Milwaukee and that he (Balistrieri) had his own “office” which he wanted to discuss with Ruggiero and Pistone. Agent Pistone, experienced in these matters, understood Balistrieri’s reference to “office” to mean that Balistrieri had his own bookmaking operation.

Late the next evening, at the Peppercorn Restaurant in Milwaukee, Balistrieri and Di Salvo revealed their roles as owner and manager respectively of the gambling business operated by Sam Librizzi in 1977. This conversation began with a discussion between Pistone and Di Salvo concerning the upcoming football season and bookmaking in general. As the conversation proceeded, Di Salvo advised Pistone in the presence of Cobb, Balistrieri, and Ruggiero, that he was the one who handled Balistrieri’s sports bookmaking operation, that he wanted to get out of it, and that he was trying to talk Balistrieri out of the bookmaking business. The reason given by Di Salvo was that most of the bookmakers in Milwaukee were “stool pigeons” and he was attempting to convince Balistrieri to charge the other bookmakers in Milwaukee $1,000 a week in order to operate. In this way, Di Salvo explained, the bookmakers would be prevented by their own illegal activities from going to the FBI. Di Salvo further stated that there were so many stool pigeons in Milwaukee that they would need “Castro’s army to kill all the stool pigeons that Milwaukee had.” At this point in the conversation, Balistrieri confirmed that Di Salvo was in charge of his bookmaking operation and that he “Was looking for an individual to oversee the day-to-day operation, because the person that was running it last year, by the name of Sam, did not tend to business and wasn’t doing a good job and he was looking for someone he could trust to run the daily, the day-to-day operation for the upcoming football season.” Balistrieri further advised that they wanted somebody to take over this gambling operation from Sam, “so Steve wouldn’t have to spend so much time taking care of the book.”