The Mafia Encyclopedia (77 page)

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Authors: Carl Sifakis

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the sucker a small portion of his own money, inducing him to put up still more. Suddenly the money flow stops. The lender calls the loan shark. His calls go unanswered. There is nothing the sucker can do. He can hardly go to the police and tell them he has been financing a loan shark with contraband money. He would himself face criminal prosecution for tax dodging. Additionally, as a pillar of the community and highly regarded by friends, neighbors and associates, he cannot risk the embarrassment and loss of reputation a disclosure of the facts would cause.
Criminal informer Vinnie Teresa worked this loan shark scam to perfection, victimizing so-called honest businessmen. In one case Teresa took a man with a desire to play the supposedly profitable role of a "silent loan shark" for $30,000, and worked him up to $100,000 within a couple of weeks without even giving him a dime back. When the man started calling him, Teresa snarled in his best underworld tones, "You don't want to wind up in a box, you better not call again. You're a sucker ... you been taken. Now shut up."
Teresa was never bothered again.
See also:
Loan-sharking
.
Lockstep Surveillance: Law enforcement harassment
Lockstep surveillance, or "rough shadowing," is a technique of harassment employed by law enforcement agencies, especially against organized crime figures. Designed to make a target crack from the pressure of constant exposure, the surveillance is both obvious and constant.
Probably the most famous target of a lockstep surveillance was Sam Giancana, then boss of the Chicago crime family. In 1963 the FBI conducted a 24-hour watch of his every move as well as that of everyone in his household. The agency, in an effort to gather tip-offs on his criminal activities, had already used illegal bugs in homes, hotels and motels around the country to eavesdrop on his active love life.
Giancana was followed wherever he went and FBI cars maintained a constant vigil outside his house. FBI agents, as many as six at a time, shadowed him, even on the golf course, often playing right behind him and driving balls so close that his game was upset. Once on the sixth green he was so shook up by the FBI agents that he took 18 putts. The surveillance also fouled up Giancana's efforts to run his organizationhe liked to issue crime orders on the fairway to underlings playing with him.
Once, seeking to shake off his followers, Giancana took sanctuary in a church, but the FBI men followed him and verbally baited him for his ignorance of the mass ritual. He took his cue from other worshipers on when to stand, kneel and sit. The agents sat behind him and whispered: "Kneel, asshole ... Sit down, asshole." When such harassment continued at church Giancana had movies made of the FBI following him to St. Bernadine Catholic Church and to Mt. Carmel Catholic Cemetery where he claimed FBI vehicles blocked off both exits, trapping him and other visitors against their will.
In thwarted efforts to lose his shadows, Giancana often only managed to upset himself more. Once he pretended to retire for the night and then suddenly charged out of the back door of his house, threw open the garage door and roared off in his car. Two minutes later, after circling the block to shake the tail, he tried to back his car into the garage at high speed. He managed to hit the garage door casing, crushing a fender. Then, as he got out to assess the damage, he forgot to put on the brake and the car rolled down the street. Cursing, Giancana caught up to it and finally made a successful pass at the garage at more ordinary speed. By the time Giancana crawled into bed, he was more in need of rest than the FBI men.
Finally, Giancana brought a court action to get the FBI to cease lockstepping him. Remarkably, he won, and the agency was enjoined from continuing the practice. The decision was vacated for technical reasons and in the meantime local police agencies took up the chore.
Important gang figures, unlike Giancana, usually don't go to court to challenge possible lockstep surveillance since they will be forced to get on the stand to claim that none of their activities is a cause for law enforcement surveillance. They would then be subject to cross-examination about their activities and thus open themselves to a perjury charge.
The practice of lockstep surveillance is not limited to the FBI and police. It has been alleged that corrupt local authorities have used lockstepping against criminals as a way of getting leverage for bribes. Private detectives have been targeted in personal vendettas as well.
The courts are very much inclined to find for a private citizen who has been subjected to rough shadowing. Perhaps the classic example of this concerned the late author Iles Brody, who was jostled in crowds and awakened by late hour phone calls by private detectives. The lockstepping had been arranged by rich friends of the Duke and Duchess of Windsor in an effort to stop publication of Brody's breezy book
Gone With the Windsors
.
Brody won his case. The results for Sam Giancana were rather different. There are those observers who insist his hauling the FBI into court and loosing a flood of publicity proved upsetting to crime family senior bosses Paul Ricca and Tony Accardo and started the
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procedure whereby they clipped his leadership role within a couple of years. And some years later Giancana ended up murdered.
Loesch, Frank J. (18531944): Chicago Crime Commission founder
A venerable corporation counsel, a founding member of the Chicago Crime Commission and five times its head, Frank J. Loesch coined the term
public enemy
in the 1920s. Referring to the syndicate gangsters who plagued Chicago, Loesch sought to dispel the romantic aura the yellow press of the city and nation had given gangsters.
In the 1930s the FBI director recoined the term for such armed stickup men as John Dillinger, the Barker Brothers, Baby Face Nelson, Pretty Boy Floyd, Clyde Barrow and Bonnie Parker, and Machine Gun Kelly. Experienced crime observers have snickered at Hoover's description of public enemies, which never included the real enemies whose depredations looted the pockets of every person in the countrythe syndicate gangsters like Luciano, Costello, Lansky, Lepke, Schultz, Anastasia and others. Some said Hoover, who in the early 1930s and indeed for decades thereafter denied there was any such thing as organized crime, shifted the emphasis to distract public opinion from syndicate to freelance crimeand in all but a few cases, relatively trivial and overrated gangsters, stumblebums of crime, like Machine Gun Kelly. Machine Gun never fired his weapon at anyone, ever, in his career.
Loesch saw the syndicate mobsters as the prime opponents of law and order, and combatted them with direct action. He was one of the few citizens Capone, number one on Loesch's list, either feared or respected. It was Loesch who went to Capone following the bombthrowing, April 1928 Republican primary in which professional terrorists on both sides, most Capone mobsters, murdered party workers, bombed the houses of candidates and intimidated voters. The police did nothing and appeared ready to do nothing again in the November elections.
"Now look here, Capone," Loesch demanded, "will you help me by keeping your damned cutthroats and hoodlums from interfering with the polling booths?"
"Sure," Capone announced benignly. "I'll give them the word because they're all dagos up there, but what about the Saltis gang of micks on the West Side? They'll have to be handled different. Do you want me to give them the works, too?"
Loesch, not to be outdone, said he would be delighted.
"All right," Capone said. "I'll have the cops send over squad cars the night before the election and jug all the hoodlums and keep 'em in the cooler until the polls close.'
Capone kept his word and the police dutifully followed orders, sweeping the streets in an election day dragnet.
"It turned out to be the squarest and most successful election day in forty years," Loesch was to say later. "There was not one complaint, not one election fraud and no threat of trouble all day."
It was of course an awesome display of raw power by the greatest mob leader in Americabut also a tribute to the ability of Frank Loesch to exert a considerable measure of influence.
See also:
Pineapple Primary; Public Enemies
.
Lombardo, Antonio "the Scourge" (?1928): Capone consigliere
Nicknamed "the Scourge," Antonio Lombardo concealed a Machiavellian bent behind an urbane exterior as a wholesale grocer.
While Johnny Torrio is credited with teaching Al Capone everything he knew, Lombardo, after Torrio's departure from Chicago in 1925, took up the role of mentor. In return, Capone made Lombardo his consigliere and utilized him as his prime adviser.
The Scourge urged Capone to make accommodation with the Irish North Side Gang, even after Capone killers had dispatched their colorfully murderous chief, Dion O'Banion. Since the surviving O'Banions were upset about Dion's passing, Lombardo, with his noted pragmatism, told the North Siders he would arrange to have O'Banion's killers, the hit team of Albert Anselmi and John Scalise, delivered to them. Such double-dealing and treachery was justified on Lombardo's part as being for the greater good of the mob. Capone by his own standards considered himself too honorable to accept such terms. As for handing over the hit men for execution he said, "I wouldn't do that to a yellow dog." It was one case where even a barbarian like Capone would not accept Lombardo's deviousness. Yet the Scourge managed to turn the entire episode into a major underworld public relations coup, declaring it proved that "Big Al's the best buddy any of his boys could ever hope to have."
Capone got to appreciate Lombardo almost as much as he did Torrio. He adopted court tasters to sample his food before eatinga custom Lombardo himself practiced. Ultimately, Capone installed him as president of Chicago's large branch of the Unione Siciliane, a fraternal organization which during Prohibition became a front for bootlegging and other criminal activities in Chicago. Despite his association with Capone and the fact that he fingered many men for death, Lombardo
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received a rather favorable press, even succeeding in getting published a glowing testimonial he wrote for himself:
Chicago owes much of its progress and its hope of future greatness to the intelligence and industry of its 200,000 Italians, whose rise in prestige and importance is one of the modern miracles of a great city
.
No people bare achieved so much from such small beginnings, or given so much for what they received in the land of promise to which many of them came penniless. Each life story is a romance, an epic of human accomplishment
.
Antonio Lombardo is one of the most outstanding of these modern conquerors. ... He was one of hundreds who cheered joyously, when, from the deck of the steamer, they saw the Statue of Liberty, and the skyline of New York, their first sight of the fabled land. America. With bis fellow countrymen be suffered the bardships and indignities to which the United States subjects its prospective citizens at Ellis Island without complaint, for in his heart was a great hope and a great ambition
.
Mr. Lornbardo ... accepted the hardships as part of the game, and with confidence in his own ability and assurance of unlimited opportunities, began his career. ...
Such glowing testimony undoubtedly swelled the Capone gangsters with pride at having such a man of words in their ranks. But words were hardly enough to shield Lombardo from attack by Big Al's enemies. On September 7, 1928, Lombardo was killed in a rushhour crowd at State and Madison Streets, one of the busiest intersections in the world. Two dum-dum bullets tore away half his skull. An angry Capone vowed that "the dirty rats who did the job"the Aiello Mafia mobwould pay for the crime. Capone kept his promise.
Lombardozzi, Carmine "the Doctor" (19101992): Dollar-wise capo
When crime boss Paul Castellano, the reigning head of the Gambino family, was gunned down on a New York street in December 1985, journalists instantly speculated on the most likely masterminds for the hit within the crime family. Speculation was also made on which capos within the organization became likely targets on account of the hit. Generally exempted on both counts was 75-year-old Carmine Lombardozzi, known as the financial wizard of the Gambinos.
A genuine moneymaker, Lombardozzi has earned such nicknames as "the Doctor, "the King of Wall Street" and "the Italian Meyer Lansky." More important, although listed as a capo in the family, Lombardozzi was said to run all the family's lucrative loan-sharking and stock operations, and, as such, was too valuable to be caught up in any power-struggle warfare. One of the conferees at the notorious Apalachin conclave in November 1957, he later was described by Federal Judge Irving R. Kaufman as "an important member of loan-shark and gambling rackets in Brooklyn, and an associate of premier criminals for most of his life."
In the early 1960s Lombardozzi and his partner, Arthur Tortorello, alias Artie Todd, and Joey Grasso, were charged with operating several stock swindles. They went to federal prison in 1963 for parole violation. Through usurious loans to securities business back-office staffs, Tortorello had mounted operations that permitted him to gain control of a number of stock brokerage houses. Through one firm, Carlton Securities, almost $1 million in unregistered worthless oil stock was sold. Also issued was a million shares of worthless stock in an electronics firm.
In 1962 $1.3 million in negotiable securities were stolen from the brokerage firm of Bache & Companyú A stock record clerk had been prevailed upon to tuck the stolen stocks under his shirt. (The later Wall Street joke was: "When the Mafia talks, stock clerks listen.") John Lombardozzi, Carmine's brother, was arrested for attempting to dispose of the securities; and what was described as solid information was unearthed disclosing that Carmine had distributed some of the securities which eventually turned up in banks in Switzerland.
Edward H. Wuensche, an ex-convict fence turned informer, told a U.S. Senate subcommittee he was aware of or handled $40 to $50 million in stolen securities between 1958 and 1963, and that on one occasion "I received stolen securities ... from Carmine Lombardozzi. These securities, I believe, were part of a theft in 1962 from Bache & Co. They included shares of AT&T, General Motors, and Union Oil Co. I believe, in total, there were about 25,000 shares of stock which we got from Lombardozzi."
Wuensche also told the senators: "In the early sixties ... Mr. Carmine Lombardozzi used to bear the title of 'The King of Wall Street.' ... Carmine had more young clerks under his thumb who where either trapped because of indebtedness, gambling and otherwise, and if he said, 'Go get me XYZ,' they darn well went in and got it, because they were afraid of losing their lives."
Lombardozzi, according to officials, handled all the loan-sharking operations for the Gambino family and was considered quite facile at rolling over the funds so received and in infiltrating the securities industry. His criminal sophistication gained him respect as an elder of

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