Yes they drew attention but Penosi ultimately walked from the case. It wasn’t a terribly strong case. In my opinion (long time CT resident here), Castellano has side rackets with Genovese family in which he alone prospered and made a lot of money. Piccolo earned well and at that point Paul would only get a cut of Piccolos take. He sold a captain for profit. Piccolo want the only person getting caught on a wire, and not all of them were executed for it. Furthermore, In the the history of US LCN, there were worse members than Piccolo. The drugs were rumor— he was never convicted of any drug charge and aside from the Wayne Newton incident, his arrest jacket did not have many felonies if any— mostly gambling charges. This was a poor decision on Paul that further made it easier for Gotti to make his move. If you don’t protect yours, than what’s the point?