The Battle for Las Vegas: The Law vs. The Mob (24 page)

“Chicago Division is awaiting (redacted).

“Chicago will notify Headquarters upon the completion of the above and will then re-contact the United States Attorney’s Office, NDI, for a final prosecutive opinion on this matter.”

Based on the above document, it appears the FBI had a good idea of who was involved in the murders. It also seems that Albert Tocco, a long-time Outfit member, was a potential key witness. In spite of the information that had been gathered, the effort to charge and prosecute the slayers of the Spilotro brothers never came to fruition.

Former FBI agent Emmett Michaels received information on the Spilotro hits from what he considers reliable sources. His theory is partly supported by the FBI investigation. “Tony Spilotro was summoned to Chicago under the guise that he and his brother were going to be assigned by the mob to do a killing. It was not uncommon for men going out on a job to leave their identification and valuables at home. I believe the FBI report fits the scenario that the Spilotros thought they were going along on a hit. As it turned out, they were, but as the victims.”

All the facts of what happened in Indiana that June may never be known and the murders might remain officially classified as unsolved. But the FBI is continuing to work the case and could at some point in the future develop sufficient evidence to name and/or prosecute the killers.

Tony Spilotro’s death marked the end of an era in Sin City. The mob’s hidden ownership and control of the casinos was ended; the “King of the Strip” was gone. The battle for Las Vegas was over, and the law had won.

14

Update

O
n April 25, 2005, federal indictments were announced charging 14 reputed members and associates of Chicago organized crime with running a decades-old criminal enterprise that was responsible for committing 18 murders. The slayings included those of Tony and Michael Spilotro.

Among those named as a result of the FBI-led investigation dubbed “Operation Family Secrets” was Joseph “The Clown” Lombardo. Mr. Lombardo was allegedly one of Tony’s superiors during Spilotro’s Las Vegas years. He was considered by many to have been a friend of the Spilotro family.

After nearly 19 years, how was this news received by some of those who knew Tony best? In order to find out, I reached three such people by telephone on April 25 and 26. Following are their comments.

Nancy Spilotro. “I’m thrilled. Absolutely thrilled.” Tony’s widow had been critical of the government’s efforts to solve the killings of her husband and brother-in-law over the years. She explained: “I never said the FBI was doing nothing to solve the murders. But Tony and Michael weren’t the Kennedys.”

Regarding Joseph Lombardo. “I’ve known him like a cousin for forty years. But I’m going to withhold comment until I learn more details.”

Vincent Spilotro. Although there had been rumors of indictments in his father’s murder for some time, Vincent was pleasantly surprised when they actually happened. “I couldn’t be happier,” he said. In the weeks prior to the announcements, Chicago and Las Vegas reporters had contacted Vincent and his mother, hinting that major developments were pending and requesting interviews. No interviews were granted, however. The government gave them no prior warning of the indictments.

Frank Cullotta. Tony Spilotro’s one-time friend and associate is not surprised at the news. “There were people around who knew what happened. It was a matter of getting someone to talk.”

Cullotta’s theory of why the two brothers were killed goes this way. Joe Ferriola, the new Outfit boss at the time (now deceased), and Joe Lombardo were behind the killings. “Tony had outlived his usefulness [to the Outfit] by causing too much heat in Las Vegas. Michael wasn’t a made man, but he used his brother’s reputation to run his own criminal activities in Chicago, including bookmaking. I think he made waves by roughing up one of Ferriola’s bookies. On top of that, they [the Outfit bosses] knew that if they only hit one of them, the other would want revenge and there’d be a war. So they both had to go.”

Another person quite familiar with the Spilotro case is Dennis Arnoldy, the former FBI Las Vegas case agent for the Spilotro investigations. On April 27, Mr. Arnoldy provided his comments.

“The orders to kill Tony and Michael likely came down from Joe Ferriola. Lombardo would have had little choice but to carry them out. Remember, when it comes to protecting the Outfit, its bosses, or business interests, there is no such thing as friendship or even blood ties. Even if Lombardo was a personal friend to Tony and Nancy, it would have made no difference.”

Joseph Lombardo was not immediately arrested after the indictments were issued. Instead, he went into hiding and became a fugitive from justice. For nine months he avoided the law, but his luck finally ran out. On Friday, January 13, 2006, FBI agents nabbed him in Elmwood Park, Illinois, a Chicago suburb. As the charges against Lombardo and the other defendants move forward, perhaps the complete story of the demise of Tony and Michael Spilotro will be told.

15

Loose Ends

T
his final section contains information on what happened to some of the key players in the book after Tony Spilotro’s death in 1986. Not all of those persons are updated here. The primary reasons for these omissions are either the unavailability of useful information or the individual requested to be excluded.

Chicago

Joseph Ferriola, the man who allegedly ordered Tony Spilotro’s execution, had only a three-year stint as boss of the Outfit. He died of natural causes in 1989.

Tony Accardo died in 1992 at the age of 86. Unlike many of his colleagues, he avoided serving any lengthy prison terms and his death was the result of natural causes.

Joseph Aiuppa passed away in February 1997. The 89-year-old was in prison at the time of his death as a result of his convictions in the casino skimming cases.

Las Vegas

The six members of the HITWG who were arrested for the Bertha’s burglary were eventually prosecuted in Clark County, with their trials and pleadings occurring after Tony Spilotro’s death. The dispositions of their cases, and their current status, are:

Wayne Matecki was found not guilty of burglary by a jury verdict. He is now living in Illinois.

Leo Guardino pled guilty to burglary and is now deceased.

Ernest Davino pled guilty to burglary. He is out of prison and residing in New Jersey.

Lawrence Neumann pled guilty to burglary. In 1983, while awaiting prosecution in the Bertha’s case, he was convicted in Illinois of the 1979 murder of a Chicago jeweler. Frank Cullotta was the chief prosecution witness against Neumann at trial. The now 77-year-old is currently serving a sentence of life without the possibility of parole for that killing. He is housed in the state prison facility at Menard, Illinois, where he is known as prisoner number N33971.

Frank Cullotta pled guilty to attempted burglary. After switching sides and becoming a government witness, Cullotta testified at several trials and appeared before federal and state investigative bodies across the country. He currently operates a profitable small business, and is considered one of the success stories of the government’s Witness Protection Program.

Mr. Cullotta also served as an adviser for the 1995 movie
Casino
, in which he made a cameo appearance. Near the end of the film there are several scenes in which potential witnesses against the mob are being eliminated. One of the murders depicted is identified as taking place in Costa Rica and involves a man being chased through his house and killed near the swimming pool. This incident was based on the 1979 murder of Jerry Lisner in Las Vegas, in which Frank Cullotta admitted to being the killer. He appeared in the movie recreation as the shooter.

Joe Blasko, the former cop, served five years in state and federal prisons for his crimes while working with the Spilotro gang. He died of natural causes in November 2002, at the age of 67.

Oscar Goodman, the defense attorney who represented Tony Spilotro and several other alleged mobsters, was elected Mayor of Las Vegas in June 1999. He began serving his second term in April 2003 and has enjoyed high approval ratings while in office. Mr. Goodman often describes himself as “the happiest mayor in America.”

Judge Harry Claiborne, who was a client of Oscar Goodman and the first federal judge in the nation’s history to be convicted of criminal charges while sitting on the bench, committed suicide in January 2004 at the age of 86.

Spilotro lieutenant Herb Blitzstein was convicted of credit-card fraud in 1987 and received a five-year prison sentence. After his release in 1991, he decided to resume loansharking and fencing stolen property activities in Las Vegas. He was found dead in his Vegas townhouse in January 1997, shot execution style. Two men were arrested for the murder and pled guilty prior to going to trial. Two other men with ties to the Los Angeles and Buffalo organized-crime families were subsequently charged with hiring the hit men to kill Blitzstein so they could take over his illegal businesses. They were acquitted of those charges, but were convicted of running an extortion scheme to take over Herbie’s loansharking and insurance-fraud operations. Blitzstein’s death marked the passing of one of the last remnants of the Spilotro gang in Las Vegas.

Frank “Lefty” Rosenthal lives in Florida and is still involved with the world of sports betting. He has a sports-related Web site at http://www.frankrosenthal.com.

Ned Day, newsman and columnist, died in September 1987 while vacationing in Hawaii. An autopsy determined the 42-year-old died of a heart attack. Bob Stoldal, Day’s boss at KLAS-TV and a personal friend, said he is “ninety percent sure” the autopsy report is accurate, but he continues to harbor an element of doubt about the findings. He believes that due to Day’s frequent reports attacking organized-crime figures, foul play can’t be completely ruled out.

News of the reporter’s death sent shock waves throughout Las Vegas and beyond. He received accolades from his peers, politicians, crime figures and loyal fans, all expressing their respect and sadness over his passing.

Gwen Castaldi left KLAS in 1980. She began an 18-year career with KVBC-TV in January 1981, as a main anchor and reporter. In September 2003, she was hired by Nevada Public Radio as host and senior producer of KNPR’s “State of Nevada” program. In November 2004, the highly successful show was expanded from a one-hour to a two-hour format. She and her husband left Las Vegas in 2005 and moved to Utah.

Ms. Castaldi also appeared in
Casino
, playing the part of a reporter interviewing the Robert De Niro character.

Vincent Spilotro, Tony’s adopted son, remains in the Las Vegas area. For a period of time after his father’s death, he was intent on getting revenge against the people who had murdered Tony. Drinking heavily, he planned to conduct his own investigation, identify the killers, and administer justice. He went so far as to stockpile guns and explosives to use against his father’s enemies. Family members finally convinced him that retaliation was a bad idea and he abandoned his plans.

But his lifestyle led to other problems. Vincent experienced some serious health issues, including alcohol and substance abuse. He survived a bout with colon cancer, but is afflicted with pancreatitis and has chronic problems with kidney stones. His current health difficulties are not life threatening.

Nancy Spilotro, Tony’s widow, is alive and well and still lives in the Las Vegas area.

The Feds

Joe Yablonsky, former special agent in charge of the Las Vegas office, is retired and living in Florida. He has written a manuscript about his stint in Las Vegas and is currently marketing it.

Charlie Parsons, the agent who visited Frank Cullotta in jail and informed him there was a contract on him, is the Executive Director and COO of the Drug Abuse Resistance Education (DARE) program, headquartered in Los Angeles.

Emmett Michaels, the electronics and surveillance expert who had exceptional luck when gambling with government money, is the Vice President of Corporate Security & Surveillance for Station Casinos, Inc.

Dennis Arnoldy, Las Vegas case agent for the Spilotro investigations, is a private investigator working for The Advantage Group in Las Vegas. He also operates a separate polygraph business as Dennis Arnoldy & Associates.

Lynn Ferrin, Las Vegas case agent for the Strawman investigations, is retired and lives not far from Las Vegas.

Stan Hunterton, former Strike Force attorney, has his own law practice in Las Vegas.

Las Vegas Metropolitan Police Department

Gene Smith is enjoying retirement and lives north of Las Vegas.

Gary Lang, LVMPD attorney, is practicing law in Las Vegas.

David Groover owns and operates a private investigative agency in Las Vegas doing business as David Groover & Associates, Inc.

Kent Clifford obtained a real estate license while working for Metro. After leaving the department he considered attending law school and an attorney had agreed to hire him upon graduation. As he was contemplating his future, he closed his first escrow on a vacant parcel of land. His commission on that one transaction was nearly what his potential employer had quoted him as an annual salary.

“At that time, I had a wife, three kids, and a dog all counting on me for support,” Clifford remembered. “I decided to stay in real estate.”

Today Clifford owns and operates Clifford Commercial Real Estate in Las Vegas.

John McCarthy moved to the Dallas, Texas, area in 1988, where he began a second career working as a civilian crime analyst for the Dallas Police Department. He retired in December 2004, at age 70.

Clark County District Attorney’s Office

Jim Erbeck went on to prosecute organized-crime members as a federal prosecutor. In 1989 he was selected by President George H. W. Bush as United States Attorney for Nevada. He later operated a law practice in Las Vegas. He is currently semi-retired and living in New Jersey, where he cares for his elderly mother.

Mr. Erbeck views the 1982 conviction of Frank Cullotta, which made Cullotta receptive to law-enforcement initiatives to cooperate, as one of the highlights of his career. He also had this to say about his time in the Clark County DA’s Office:

“Working with Gene Smith, Kent Clifford, Emmett Michaels, Dennis Arnoldy, Stan Hunterton, and especially Chief Deputy District Attorney Bill Koot were the most memorable and important things I ever did. It was an honor to work with Metro Intelligence, the FBI, and all those who were so committed to fighting the mob.”