CHICAGO
In February 2000, John Duff III was banned from the Hotel Employees & Restaurant Employees Union following the discovery that he had a no-show job with the union that paid $172,000 for several years and had organized crime ties.
In April 2000, 7 people, including Chicago LCN associates Anthony Dote and Carl Dote and former police officer Donald Scalise, and were indicted in Chicago on charges of racketeering and gambling involving a sports bookmaking operation that netted $2 million over 3 years.
In April 2000, 8 people, including former police detective William Handhart and Chicago LCN associate Paul "The Indian" Schiro, were indicted in Chicago on charges of running a $10 million jewelry theft ring, which had ties to the Outfit, that included 8 separate thefts of jewelry, watches, etc. in Wisconsin, Michigan, Ohio, Minnesota, Texas, Arizona, and California .
In April 2000, following an investigation into the murder of Chicago LCN associate Ronald Jarrett, 15 people, including Chicago LCN associates Chris Marcotte and Peter Frigo and members of the Latin Satan's Disciples street gang, were indicted in Chicago on charges of trafficking in up to $1 million in cocaine every 2 weeks in Chicago and Michigan.
In September 2000, Chicago LCN associates Robert Cechini and Lawrence Scialabba were were banned from the Grand Victoria riverboat Casino in Elgin, Ill. In April 2003, the casino agreed to pay a $3.2 million fine for giving a $300,000 air handling contract to Joseph and Jamie Bastone, the sons of late Chicago LCN figure Carmine Bastone.
In November 2000, Frank Zeuberis, an ex-official of LIUNA Local 5, was indicted in Chicago of embezzling $473,106 in union funds through increased salaries, bonuses, and vacations that benefited him, his wife, and former Secretary-Treasurer James DiForti, a Chicago LCN associate.
In articles in December 2000 and August 2002, it was reported that the Chicago LCN, under the leadership of John "No Nose" DiFronzo, Joseph "The Builder" Andriacchi, Joseph "The Clown" Lombardo, and James "Jimmy the Man" Marcello, was "less of a power, squeaking along with much less money, far fewer members (perhaps 50 compared to 200 in the 1980's, and from 7 crews down to 3), and a fraction of it's old political influence. However, this may have been by design, through keeping a lower profile by not shaking down every bookie, selling drugs at the street level, extorting legitimate businesses, avoiding violence, including simply cutting off dead beat gamblers, and generally having a "smaller core." And, whereas it was once "impressivley diversfied," the modern day Outfit relied heavily on a single source of income - illegal gambling, specifically sports boomaking and video poker. It also was said to continue to wield "sophisticated" influence in labor unions and invest in legitimate businesses like restaurants, strip clubs, real estate, and stocks; finance drug deals, maintain affiliation with groups involved in stolen goods, and pay off local politicians and police officials to protect gambling operations.
In January 2001, 3 Chicago Chicago LCN members, Frank Caruso Jr., Bruno Caruso, and Leo Caruso, as well as Joseph Lombardo Jr. (son of Joseph "Joey the Clown" Lombardo), all officials of LIUNA Locals 1001, 1006 and the Chicago Laborers District Council were removed from their positions. The following year, James Capasso Jr., who was already making over $100,000 a year as the executive director of the Laborers Annuity Benefit Fund of Chicago and allowed Local 1001 union members to collect inflated city pensions on top of their union pensions, resigned from Local 1001 and attempted to collect a pension, based on records showing union dues had been set aside for him over the past 18 years, despite him never holding an official position. In May 2004, LIUNA Local 1001 was put under federal trusteeship due to ongoing corruption and organized crime influence and Nicholas Gironda, who had replaced Bruno Caruso, was also removed from the Local for embezzling from the pension fund by receiving contributions for hous he never worked and for approving contributions for others who didn't qualify for them.
In March 2001, Illinois state regulators denied a license to Emerald Casino Inc. to operate a gambling boat in Rosemont, Illinois, citing the group's alleged connections to Chicago LCN associate Nick Boscarino and relatives of the late William "Potatoes" Daddano. In December 2002, the Illinois Gaming Board banned D&P Construction, owned by Chicago LCN boss John "No Nose" DiFronzo, from hauling trash from the casino. In July 2001, it was reported that Chicago LCN associates involved with the casino had donated almost $150,000 to local public officials.
In March 2001, Chicago LCN associate and owner of the Admiral Theater strip club, Salvatore "Sam" Cecola, was nominated by the Nevada Gaming Commission to be included in the state's excluded persons list, known as the "Black Book."
In June 2001, 10 people, including Chicago LCN members Michael Spano, James "Jimmy the Icepick" Inendino, and the mayor of Cicero, were indicted in Chicago on charges of racketeering, bribery, official misconduct, wire fraud, bank fraud, mail fraud, interstate transportation of stolen property, tax evasion conspiracy, and money laundering involving the diversion of over $10 million from Cicero's insurance funds for personal benefit. In April 2010, Inendino was investigated regarding his operations outside a local currency exchange.
In August 2001, it was reported that the Menominee Indian tribe pulled out of a Kenosha casino deal because one of it's major investors was Morgan Murphy Jr., a former Chicago congressman who had ties to an Chicago LCN-connected labor official.
In September 2001, 4 people, including Chicago LCN associate Anthony Giannone, were indicted in Chicago on charges of conspiracy and trafficking in 220 lbs of marijuana over a 3 month period.
In January 2002 (?), Chicago LCN associate Anthony Calabrese was indicted in Chicago on charges of assault and armed robbery of a leather shop, tattoo parlor, and meat packing plant.
In February 2002, 8 people, including Chicago LCN associate William "Billy D" DiDomenico, were indicted in Chicago on charges of running a sports bookmaking operation over a 10 year period.
In March 2002, Richard Caravetta, an official of LIUNA Local 2, resigned due his organized crime ties and various union violations.
In April 2002, 10 people, including Phillip Cozzo (son of Chicago LCN member James "Jimmy" Cozzo) were indicted in Chicago for skimming over $3.2 million from illegal bingo games at the Grand Palace bingo hall.
In April 2002, 3 companies owned by the LCN-connected Duff family were investigated for winning a city contract worth tens of millions of dollars, while at the same time controlling the union their employees belonged to - the Liquor & Wine Sales Representatives, Tire, Plastic, and Allied Workers Union.
In July 2002, Joel Glickman, was arrested and pled guilty to collecting over $500,000 in illegal sports wagers. 2 years earlier, in July 2000, it was reported that Chicago Bears executive, Bryan Harlan, had placed bets with Glickman for the past 5 years. In July 2007, Glickman was taken into custody after he refused to testify about paying between $1,300 and $2,000 to Chicago LCN member, Frank "Frankie Breeze" Calabrese, during the Family Secrets trial.
In July 2002, 4 people (Chicago LCN connected?), including Peter "Cuz" Demondo (a printing products salesman), Richard Demondo, and Frank "Knuckles" Mattelli, were charged in Chicago with running a sports bookmaking business that took bets ranging from $50 to $2,000 and utilized a dozen cell phones. The operation reportedly took in $300,000 in profit from 1996 and 1999.
In October 2002, the report "The Teamsters: Perception and Reality" was released, resulting from the RISE investigation into ongoing organized crime influence and corruption in the International Brotherhood of Teamsters, which included investigations into IBT Locals 330 (associating with organized crime figures), 714 (bid-rigging; put under trusteeship in 2008), 726 (extortion of union members for jobs by former foreman who was an Outfit associate), 727 (business agent had possible mob ties; embezzlement from vision/dental plan), 743 (banned official possibly still have ties to local; current official may have entered into sham CBA's and is involved in video poker business, rigged elections), 781 (banned official may still have contact with local; local may be engaged in business with a benefit service provider run by the son of a slain Outfit associate), 786 (local official and benefits administrator associating with organized crime figures; misappropriation of union funds; Outfit control of a major local provider; use of non-union labor and failure to contribute to benefit funds), in Chicago. The report went on to state, "The Chicago area, more than anywhere else where Teamsters entities are concentrated, continues to furnish the conditions that have historically made the union vulnerable to organized crime infiltration and systemic corruption: an organized crime family that still has considerable strength, a corrupt business and political environment, and resistance to anti-racketeering reform by key Teamsters leaders."
In May 2002, Chicago LCN associates Nick Boscarino and Ralph Aulenta, were indicted in Chicago on charges of tax fraud, insurance fraud, and money laundering involving the siphoning of over $460,000 from the Village of Rosemont through a LCN-owned insurance company.
In February 2003, 17 people, including Chicago LCN associate Rick Rizzolo, who were involved with the Crazy Horse Too strip club in Nevada were indicted on charges of racketeering, corruption, extortion, robbery, and tax fraud.
In March 2003, 4 people, (Chicago LCN connected?) Frank DiCostanzo, Joseph Galiano, Vincent Saviano, and Marvin Topel were indicted in Chicago on charges of running a sports bookmaking operation from November 1989 through September 1999.
In August 2003, 2 people, including Chicago LCN associate Joseph "Pooch" Pascucci and Mary Daddano, the daughter of the late Outfit figure, Willie "Potatoes" Daddano, were indicted in Chicago on charges of running a sports bookmaking operation.
In September 2003, 7 people associated with the LCN-connected Duff family were indicted in Chicago on charges of racketeering, conspiracy, mail fraud, wire fraud, and money laundering involving winning $100 million in city contracts through sham women and minority-owned businesses and evading more than $3 million in payments to the workers compensation insurance premiums.
In November 2003, 9 members of the Projectionist Union Local 110, which had past ties to the Outfit, were indicted in Chicago on charges of conspiracy and arson involving 20 incidents in movie theaters in 10 states related to labor contract disputes.
In June 2004, 5 people, including Chicago LCN associates Joseph "Pooch" Pascucchi and Demitri "Jimmy" Stavropolous, were indicted in Chicago on charges of running a bookmaking operation that grossed $3 million over 3 years. In April 2010, it was reported that the family-owned bank of a Democratic Senate candidate, Alexi Giannoulis, had loaned $20 million to Stavropolous and Michael Giorango. Stavropolous would later be identified in November 2011 as a $5,000 a week consultant to the politically connected Polekatz strip club.
In July 2004, after being banned in 1999 from LIUNA Local 2, Chicago LCN member John "Pudgy" Matassa Jr. was reported to be the secretary-treasurer of Amalgamated Transit Workers Union Local 711.
In November 2004, the "Hired Truck Program" scandal broke, in which at least 28 people and 26 trucking and carting companies, including JMS Trucking owned by Chicago LCN member James Inendino, Dialex Trucking owned by the son of the late Chicago LCN member Joseph "Shorty" LaMantia, Chica Trucking Inc. owned by the sister-in-law of Chris Spina, Karen's Kartage owned by the wife of former LCN-connected trucking magnate Fred Barbara, and Miffy Co. Inc. owned by a relative of the late LCN-connected Alderman Fred Roti, were charged in Chicago in a series of indictments with racketeering conspiracy, bribery, bid-rigging, theft, billing at union wages while using non-union labor, and obstruction of justice in a scheme to obtain $40 million in city contracts.
In February 2005, it was reported that a tribal casino boat (Lac du Flambeau) off the coast of Cancun Mexico had a Chicago attorney, Alexandar Salerno, who had represented Chciago figures such as Harry Aleman and Michael Spano Sr. , as an investor.
In April 2005, 14 people, including Chicago LCN members James "Jimmy the Man" Marcello, Joseph "The Clown" Lombardo, Frank "Brankie Breeze" Calabrese, and Nicholas Calabrese, were indicted in Chicago on charges of racketeering, conspiracy, running sports bookmaking and video poker operations, extorting a "street tax" from restaurant and 2 porn shops, tax evasion, and multiple murder counts. In January 2007, a U.S. Marshal, John Ambrose, was indicted in Chicago with illegally disclosing information about turncoat Nicholas Calabrese to Outfit members.
In articles in May 2005 and September 2007, it was reported the Chicago LCN had 25-30 members, a little over 100 associates, and had downsized from 6 crews to 4: the Elmwood Park crew, the Grand Avenue crew, the Cicero/Melrose Park crew, and the 26th Street/Chinatown crew. These crews were said to be run in "northern and southern sections." The Chicago LCN was said to still be involved in sports bookmaking, video poker machines, loansharking, extorting "street taxes" from businesses, as well as infiltrate legitimate businesses and labor unions.
In a series of 5 news stories from November 2005 to August 2011, it was reported that D&P Construction and JKS Ventures, owned by Chicago LCN boss John "No Nose" DiFronzo, had received over $5 million in contracts from 15 local townships on projects including a church, a bridgehouse, a strip mall, a canal, the University of Illinois, a Catholic Seminary, local public schools, and a a construction site in Chicago harbor.
In December 2005, 2 parole officials in Springfield were indicted on charges of voting to release Chicago LCN associate Harry Aleman in exchange for one of the official's sons receiving help to secure employment as a singer in Las Vegas.
In February 2006, 9 people, including Chicago LCN associate Frank "Gumba" Saladino, were indicted in Rockford for running a sports bookmaking operation that netted over $500,000.
In July 2007, 7 people, including Melrose Park Chief Vito Scalvo, who had past ties to the Chicago LCN, were indicted in Chicago on charges of racketeering, conspiracy, false billing, and concealment of profit, involving the use of police officers for personal use in Scalvo's security company; which local businesses were forced to use.
In September 2007, it was reported that the Chicago LCN, under the leadership of John "No Nose" DiFronzo, Peter DiFronzo, Joseph "The Builder" Andriacchi, and Michael "The Large Guy" Sarno, had 28 members and over 100 associates in 4 crews run in "northern and southern sections" - the North Side/Elmwood Park crew, the West Side/Grand Avenue crew, the Cicero/Melrose Park crew, and the South Side/26th Street/Chinatown crew. In June 2011, it was reported the Outfit was down to 2 or 3 crews.
In February 2009, 30 Chicago LCN-connected video poker machines were seized from 10 businesses on the South Side.
In March 2009, 2 people, including former Chicago LCN associate Mario Rainone, were indicted in Chicago on charges of burglary.
In March 2009, a civil RICO complaint was filed in Chicago against 7 people, including Chicago LCN members John "No Nose" DiFronzo, Peter "Greedy Petey" DiFronzo, and Rudolph "Uncle Rudy" Fratto, that charged them with extortion, intimidation, loansharking, and murder conspiracy involving ownership of a Melrose Park medical clinic. It was later alleged that the DiFronzos and complicit executives had been involved in a scheme to deplete the resources and credit lines of a local grocer (Certified Grocers) in order to increase business for another grocer (Central Grocers).
In May 2009, 8 people, including Chicago LCN member Michael "The Large Guy" Sarno, Casey Szaflarski (son in law of Frank "Toots" Caruso), Chicago police officers Dino Vitalo and James Formato, and Outlaw Motorcycle Gang member Mark Polchan, were indicted in Chicago on charges of racketeering, conspiracy, engaging in nine jewelry robberies worth over $1.8 million, transportation and fencing of stolen cigarettes, distributing video poker machines, arson of a rival video poker business, obstruction of a criminal investigation, wire fraud, and tax evasion.
In September 2009, Chicago LCN member Rudolph "Uncle Rudy" Fratto was indicted in Chicago on charges of tax evasion.
In December 2009, 10-12 locations on the South Side were raided for video poker machines, which were tied to the late Outfit member Joseph "Shorty" LaMantia.
In March 2010, Chicago LCN member Rudolph "Uncle Rudy" Fratto and an associate were indicted in Chicago on charges of mail fraud involving a contract bid-rigging scheme to provide forklift trucks for local trade shows.
In April 2010, as well as a superseding indictment in January 2011, 3 Chicago LCN connected burglars, Joseph Scalise, Robert Pullia, and Arthur Rachel, were were indicted in Chicago on charges of racketeering conspiracy to rob both a bank and the home of late Chicago LCN member Angelo "The Hook" LaPietra.
In August 2010, Anthony Boscarino was indicted in Tuscon, AZ on charges of wire fraud, money laundering, mail fraud, tax evasion, and firearms involving an internet gambling investment scam that took $7.7 million from investors.
In December 2010, the All Stars strip club, owned by Chicago LCN associate William "Billy" Galioto, caught fire. Organized crime experts said that the club had been struggling financially and had several tax liens.
In January 2012, it was reported that former Chicago LCN bookie, Ralph "Curly" Peluso, had been rehired at his $76,000 a year job with the Illinois Department of Transportation, with back pay of $103,000, due to the intervention of the Teamsters Union.
In May 2012, (shelved?) Chicago LCN member, Michael Magnafichi, was arrested in Naperville, IL on charges of retail theft. It was his 5th shoplifting offense in recent years.
