Accardo

1935-1965

Tony Accardo, né Antonino Leonardo Accardo (1906-1992), is credited with reviving and expanding the Chicago Outfit’s gambling business in the 1940s after the organization’s head Paul “The Waiter” Ricca named him underboss. Accardo himself had his hand in various gaming enterprises before and after, too.

Accardo is the great-grandfather of the National Football League’s Bosa brothers:* Nick, defensive end for the 49ers and Joey, outside linebacker for the Chargers.

Individual Participation

As early as 1940, Accardo and some Outfit partners owned and operated the prosperous Owl Club, an illegal casino-nightclub in Calumet City, Illinois, on the corner of Douglas and Plummer avenues.

The Mobster-gambler also ran book, oftentimes under the name Joe Batters, a nickname Al “Scarface” Capone had bestowed upon him for his prowess in thrashing people with a baseball bat. In the early 1940s, for example, Accardo conducted a bookmaking enterprise out of the Ogden building at 192 N. Clark St. in Chicago’s Loop.

Not only was Accardo an operator of games of chance; he also was a player and thus, a gambler in both senses of the word. Reportedly, he was one of the best patrons of his own joint, the Owl Club. Even when he older and less mobile, he kept up the activity, placing bets via the telephone.

Group Activities

While underboss, Accardo shifted the Outfit out of labor racketeering and into other areas of organized crime, including gambling. He pushed the syndicate into three specific areas: slot machines, wire service and casinos.

Slots: The Chicago Mob broadened its footprint by placing slots in various establishments beyond the main street gambling house. These included gas stations, restaurants and bars and the group’s favorite targeted outlet, social clubs and fraternal organizations. The Catholic War Vets, the American Legion Posts, the CIO Steel Workers Club, the Polish Democratic Club, and the Italian American Republican Club, are just some of the many local ones.

After successfully flooding its territory in and around Chicago with slots, the Outfit expanded geographically. It hit the neighboring cities first, then nearby states and eventually Nevada.

“Accardo made sure that all the legal Las Vegas casinos used his slot machines,” wrote John William Tuohy in the article “Accardo.”

Wire Service: During the mid-1940s the Outfit took over the Continental Press Service, the wire service that distributed race results throughout the U.S. It did so by killing the operator, James Ragen, after he’d refused to partner with the Chicago Mob.

Once under its control, Continental “became so big and lucrative that an investigating Senate committee later called it the ‘life blood’ of the syndicate,'” reported the Chicago Tribune (Nov. 18, 1984).

Casinos: Three, during the 1950s, the Outfit pursued gambling in a bigger scale. It moved into owning stakes in and skimming millions from casinos. It stuck primarily to legal gambling jurisdictions, first Havana, Cuba, while that lasted, and then Nevada. For instance, by 1961, Chicago owned controlling interests in the Riviera, Stardust, Fremont and Desert Inn, in Vegas.

Despite having a major hand in the Outfit’s gambling (and other lines of business), Accardo always denied being one of the organization’s members never mind a boss. Instead, he claimed he merely was a beer salesman for a Chicago brewery.

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* How Accardo and the Bosa Brothers Are Related

Sources

During the Prohibition years in California, 1919 to 1934, San Mateo County was a hotbed for illegal vices — gambling, prostitution and drinking. Even a Mobster, Hillsborough-based Sam Termini, said the county was the state’s most corrupt one in 1930. This was under the watch of James J. McGrath, the sheriff for 24 years starting in 1926.

McGrath

“There were numerous wide-open gambling joints operating in county territory under his jurisdiction; slot machines were operating in these establishments as well as in other public places; and bookmaking enterprises flourished throughout the county,” reported California’s Final Report of The Special Crime Study Commission on Organized Crime (1953).

Nothing changed after Prohibition ended except bootleggers moved into gambling.

“After years of violating liquor laws, the general attitude toward crime had softened. … Bookies prospered through illegal off-track betting and gambling dens,” wrote Carmen J. Blair in “The Most Corrupt County.”

Big, Big Business

Fast forward to 1949, and McGrath still was in office.* In his county, in the unincorporated community of Colma,** “Red” MacDonald (or McDonald, the spelling and true first name couldn’t be verified) launched a bookmaking enterprise, his area of expertise. The operation primarily was telephone based and a layoff spot for other U.S. bookies. It also served, though, as a West Coast clearinghouse for betting monies coming from and going to other areas of the country.

The business reportedly handled about $100,000 to $200,000 a day (about $1.2 to $2.3 million today).

The California organized crime commission dubbed it the Olmo Group because MacDonald ran it on George Olmo’s ranch and horse stables property, on Washington Street in Broadmoor Village.

“[The book] had operated virtually unmolested during nearly two years during this entire time with the connivance of certain law enforcement officials,” according to the Final Report, its findings based on the testimony of subpoenaed witnesses at hearings.

In Tight With Lawmen

MacDonald paid about $1,000 ($12,000 today) weekly in the form of bribes, most of them “related in one way or another to Sheriff James J. McGrath,” the Final Report noted.

McGrath ordered the occasional raid on the Olmo land, but no arrests were made. At most, officers removed telephones.  

Various relationships between lawmen and various Olmo associates were blatant conflicts of interest. For instance, all of the horse riding members of the San Mateo Sheriff’s Office kept their horses at the Olmo stables.

Also, the deputy sheriff, Milton Minehan, who went on all raids, was related by marriage to John O’Neil, a feed and grain dealer who partly financed the Olmo bookmaking endeavor and personally handled bets. O’Neil and McGrath were good friends.

Further, when the Olmo group’s bagman, collector and enforcer, Richard “Big Dick” Charles Trabert, transported large sums of money from or to the ranch, certain San Francisco Police Department officers escorted him.

The Other Principals

In addition to MacDonald, O’Neil and Trabert, the following men helped bankroll the Olmo bookmaking business:

Emilio “Gombo” Georgetti: an alleged member of the San Francisco-based Lanza Crime Family and the boss of all San Mateo County gambling activities for many years, including slot machine distribution. He ran several gambling establishments there, too, including the Willow Tree in Colma. Georgetti and Sheriff McGrath were close friends.

Ralph Cody: a longtime bookmaker involved in football and basketball pools.

Abe Fox: a bookmaker.

Cody and Fox had been arrested in 1946 in a raid on a different bookmaking business in San Francisco.

Reportedly, Arthur “Artie” H. Samish had financed Cody and Fox in the Olmo operation. Samish was a California lobbyist, representing the interests of race track owners, liquor and brewing producers, movie studios, attorneys and insurers.

John “Red” Robert Gregory: a race horse owner and trainer and a former associate of Southern California’s Guarantee Finance Company bookmaking syndicate.

Frank “Porky” X. Flynn: a lobbying associate of Samish

Circumstances Change

The Olmo group closed their enterprise in Colma in June 1950 and planned to move it to San Francisco as it is in a different county. Two major factors precipitated this: the odds were long that McGrath would get re-elected for a fifth term in the upcoming election, and the book’s leader MacDonald passed away earlier in the year. 

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* McGrath’s 24-year tenure as San Mateo County sheriff was the longest ever in the history of the office.

** Colma, known today as the City of Souls, always has been home to more dead bodies than living people. Due to cemetery overcrowding in San Francisco in the early 20th century, 150,000-plus corpses were transferred to and buried in Colma, which, since, was and still today is the burial ground for The City by The Bay.

Photo of money-filled suitcase from pond5.com: by maxxyustas

Sources

The maximum security, federal prison opened in 1934 on Alcatraz Island, 1.25 miles from the coast of San Francisco, California. The facility housed 1,576 of the U.S.’ most dangerous felons, treatment of whom was, at times, brutal and inhumane there. Over time, the penitentiary infrastructure deteriorated to the point where it needed rehabbing. The U.S. government deemed it more prudent to build a new prison rather than overhaul Alcatraz and closed it in 1963.

Among the 1,576 criminals for whom The Rock was home for some duration are five Mobster-gamblers. They are:

Whitey Bulger

In 1956, at age 27, James Joseph Bulger, Jr. (1929-2018) Bulger found himself locked up in the U.S. Federal Penitentiary, Atlanta, facing 20 years for armed robbery of several banks and truck hijacking. When the warden learned the inmate had been plotting to escape, he had Bulger transferred to Alcatraz in 1959. Bulger remained imprisoned there until 1962, then served the rest of his time at two other federal prisons. He was paroled in 1965.

Subsequently, he was an enforcer for the Winter Hill Gang in Somerville (near Boston), Massachusetts. By 1979, he’d became the boss and controlled a large part of Boston’s bookmaking, drug dealing and loansharking operations. While in power, he sanctioned numerous murders and turned FBI informant in 1975.

Bulger went into hiding in the mid-1990s, thereby landing on the FBI’s Most Wanted Fugitives list. He eluded capture until 2011, after which he was tried and found guilty of 11 murders, federal racketeering, extortion and conspiracy.

After FBI agents found and arrested Bulger, he told CNN, “If I could choose my epitaph on my tombstone, it would be, ‘I’d rather be in Alcatraz,'” CBS in San Francisco reported (Aug. 12, 2013).

Frankie Carbo

Paul John Carbo (1904-1976) began his life of crime as a gunman for the New York-based Murder, Inc. enforcement-for-hire group. (He was arrested 17 times for murder and rumored to have assassinated Benjamin “Bugsy” Siegel.)

Eventually, Carbo became a member of the New York City Mafia’s Lucchese crime family, a partner in a New Jersey bookmaking ring and a corrupt boxing promoter.

“Frankie Carbo had become the Mob’s unofficial commissioner for boxing and controlled many fighters,” Gary Jenkins wrote in Gangland Wire. In that role, he illegally generated revenue from stealing part of boxers’ purses, fixing bouts and gambling on those.

One of Carbo’s various boxing extortion schemes involved muscling in on the promotional rights to boxer Don Jordan after he won the world welterweight championship in 1958. Carbo was caught threatening promoter Jackie Leonard and convicted of conspiracy and extortion in a trial Attorney General Robert F. Kennedy prosecuted.

The feds sent Carbo to Alcatraz with a 25-year federal prison sentence. When the penitentiary closed in 1963, Carbo was relocated to the McNeil Island Corrections Center in Washington.

Charles Carrollo

For many years, Charles Vincent Carrollo (1902-1979) was the Kansas City Mafia’s lug man, collector of the tax it charged the gambling houses to operate. The Combine controlled a $20 million ($307 million today) a year gambling business in the city as well as other rackets. When the boss John Lazia was assassinated, Carrollo took over as the top dog.  

His reign was short-lived, though, because soon after, he was convicted separately of tax evasion, mail fraud (using the U.S. postal service to promote a gambling scheme) and perjury for lying on his naturalization form. While doing his eight years at the U.S. Federal Penitentiary, Leavenworth, he was caught trafficking narcotics and liquor into the facility. For that, he was sent to Alcatraz in 1943, where he stayed until he was granted parole in 1946.

Mickey Cohen

After 20-plus years of working for the National Crime Syndicate in Los Angeles, Meyer Harris Cohen (1913-1976) lost his battle with the Internal Revenue Service in 1961. At age 49, he was imprisoned at Alcatraz for a 15-year stint for evading and underpaying his federal income taxes.

He served three months there then bonded out, the only Alcatraz prisoner to do so. After six months of freedom, he had to go back. Twenty-eight days after his return, fellow inmates John and Clarence Anglin escaped the supposedly impenetrable island prison. Allegedly, Cohen had arranged for a boat to pick up the brothers and for help getting them to South America.

“All of these big named people — Mickey Cohen, Whitey Bulger — they all wanted somebody to try it and make it,” one of the Anglin’s nephews, David Widmer, told a news outlet in 2016. “If somebody made it, they would all get out.”

Cohen’s involvement in gambling went back to his years in Chicago during Prohibition. There, he worked for the Outfit, both running card games and other forms of illegal gambling and as an enforcer.

Eventually, Meyer Lansky and Louis “Lou” Rothkopf sent Cohen to the West Coast to help Siegel gain control of the territory. There, Siegel and Cohen established a horse racing wire service, launched operations in bookmaking, other gambling, prostitution and drugs, and controlled the labor unions.

Bumpy Johnson

Ellsworth Raymond Johnson’s (1905-1968) career in illegal gambling started with shooting dice for money as a youth. Later, as the head of organized crime in New York’s Harlem, he ran a $50 million ($750 million today) a year numbers, or policy, game, in an alliance with Charles “Lucky” Luciano.

To obtain that business, Johnson “ran roughshod over the numbers bosses of Harlem, giving them the option of working for him or losing their businesses altogether,” reported the New York Post (Sept. 23, 2019). “Most accepted the former and took $200-per-week ($3,000 a week today) salaries, forsaking the thousands they earned on their own.”

Johnson expanded his empire to narcotics, which led to his 1953 conviction and 15-year prison sentence for selling heroin. Ultimately, he served 10 years, at Alcatraz.

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Photo of Alcatraz Island: by D. Ramey Logan, from Wikimedia Commons 

Sources

Frost, 1936

1906-1967

Frank “Frankie” Frost (1898-1967) spent about two decades working in Reno’s gambling scene and had close relationships with those in power locally, including gambler-Mobsters William “Bill/Curly” Graham and James “Jim/Cinch” McKay and banker and businessman, George Wingfield, Sr. Frost had a checkered past, which eventually got him blacklisted from Nevada’s gambling industry.

Here we present the “work” (criminal) highlights of Frost, tracking him geographically through Illinois, then California and, finally, Nevada.

Chicago, 1906-1930: Murder Charge By Age 30

Though Frost was born in California, he spent most of his youth in Chicago and eventually became part of its North Side Aiello–Moran gang (Giuseppe “Joe” Aiello and George “Bugs” Moran), which was involved heavily in bootlegging during the 1920s. Frost, who used the aliases Eddie Ryan, Frank Bruna and Frank Citro there, was arrested three or four times for disorderly conduct but wasn’t charged.

Also, Frost was the primary suspect in the November 16, 1928 machine gun murder of John G. Clay, head of the Laundry and Fyehouse Chauffeurs’ Union. Police theorized that Moran ordered the hit because Clay was thwarting Moran’s attempts to muscle in on the cleaning and dyeing racket in The Windy City’s West and South Sides, Alphonse “Scarface” Capone’s territory. Though Frost was arrested for the murder, he wasn’t charged.

In a supposed act of retaliation by Capone, some of his soldiers, disguised as police officers, lined up and machine gunned down six of Moran’s men on February 14, 1929, nearly wiping out his crew. Initially, Frost was thought to be among the victims of what was dubbed the St. Valentine’s Day Massacre. Afterward, Frost switched his allegiance to Capone.

When Chicago Tribune crime reporter, Alfred “Jake” Lingle was murdered June 9, 1930, police traced the gun, left at the scene, back to Frost but determined that a Leo V. Brothers was the shooter.

Frost

Los Angeles, 1930-1934: Not Staying Out Of Trouble

Frost was indicted by a grand jury for accessory to the Lingle crime because he presumably had guilty knowledge of the killer(s) and their motives, but he was in Los Angeles at the time, using the alias Frank Foreman. He was captured there on July 1, 1930, arrested, returned to Chicago and placed in the county jail. After five months, though, he had to be released by law, so he got out on a $20,000 ($309,000 today) bond.

In March of the next year, Frost testified at Brothers’ trial. Also called to the stand was a witness who said he saw Frost and Brothers flee the scene in different directions after Lingle was shot. One detail the witness recounted was seeing Frost help Brothers light a cigarette afterward so Brothers didn’t have to take one of his hands out of his pocket.

The trial of Frost, for his alleged involvement in Lingle’s murder, was scheduled for April 28, but it never took place because the witnesses disappeared. Frost was back in Los Angeles when he learned, in June, that charges against him were dropped.

In September, Frost was arrested on suspicion of extortion in connection with a scheme to extort money from the widow of soap magnate, Leo Bergin. Bergin racked up a gambling debt of at least $6,000 ($102,000 today) in a days-long dice game run by representatives of New York gambler-Mobster Arnold Rothstein. Bergin wrote some checks for what he owed but later stopped payment on some. Before Rothstein’s men could collect in full, Bergin died, so they went after Gladys Bergin for payment. Due to lack of evidence, Frost wasn’t charged.

The following year, 1932, in February, a patrol officer pulled over Frost, who was working at the time as a bail bondsman. A search of the new car he was driving yielded a fully loaded, 0.45-caliber automatic pistol. Frost also had with him a letter from a “Ben” in New York, possibly Benjamin “Bugsy” Siegel, which read in part, “Other people out there are trying to keep out of trouble, but are always in touch with New York. Glad you have gone into the bonding business, as that is good cover for the business you are in.” Frost was found guilty of carrying a concealed weapon, a misdemeanor. Because he then failed to appear at a hearing of arguments concerning a possible new trial, the judge issued a warrant for his arrest.

A month later, police in San Francisco raided an apartment in their investigation of a $100,000 ($1.8 million today) jewelry robbery and took the four men inside to the station. Frost was among them. It resulted in a vagrancy charge (that later would be removed) and him being returned to the City of Angels. He was sentenced to six months in the county jail for the concealed weapon offense. Frost, though, disappeared, and a nationwide hunt for him began. Before he could be found, the appellate court reversed his conviction.

Presumably, the man who repeatedly had gotten away with crimes laid low in Southern California for the next few years.

Reno, 1935-1967: Focus On Gambling, Business

Frost next turned up living with his wife in The Biggest Little City. Only five months later, in April 1936, he was arrested for allegedly stealing $125,000 ($2.3 million today) worth of jewelry from a New York City store that January. For the story, see next blog post, Reno Mobsters Aid Gangster From Chicago, Raising Suspicions.

In 1938, the owner of a New York clothing store, Cy Kronfield Inc., sued Frost for $630.85 ($11,500 today) for not paying for goods and services it provided to him between 1933 and 1939.

Using the name Frank Foster, Frost was arrested in Elko, a city about 300 miles northeast of Reno, in May 1940 for attempted burglary of the Reinhart general merchandise store. Two months later, he was arrested and served 30 days in jail in Reno for “prowling through parked automobiles” (Reno Evening Gazette, Dec. 10, 1940). In June 1941, he was arrested for petty larceny after getting caught trying to sell children’s clothes he’d stolen from somewhere.

Frost reportedly ran or helped run the race horse pool at Graham and McKay’s Bank Club for several years, after which he opened and operated his own book, the Reno Turf Club.

In 1947’s first half, Frost applied for another gambling license from the city, this one for a new entity, Washoe Sports News, which was to supply race results from the Trans-America News and Publishing Co. wire service to local outlets. On behalf of Capone, Siegel was tasked with forcing bookmakers on the West Coast to switch to Trans-America from Continental Press. While the city council was mulling over whether or not to eliminate the existing cap on the number of race pools allowed in Reno, because granting Frost the license would’ve exceeded it, Trans-America went bankrupt and folded after its primary owner-operator was murdered. Soon afterward, Siegel was killed, too, and Frost withdrew his gambling application.

In 1951, Frost sold the Reno Turf Club. Afterward, he returned to working at the Bank Club, supposedly wrapping money. However, members of the Nevada Tax Commission, the entity which in 1947 gained the task of issuing state gambling licenses, saw him overseeing a game of faro there once. Because of his criminal background, the commissioners didn’t want Frost involved with running the gambling in any Silver State casino.

However, they spotted him again doing just that, counting money and giving orders at Reno’s Palace Club. After a related brouhaha, the casino banned him from working there in 1953, and after that, according to Frost, he no longer could get a job in the state’s gaming industry.

Dorothy Frost

In 1955, Frost’s wife Dorothy, a Manitoba, Canada native, took her life by overdosing on sleeping pills.

His Final Years

The widower remained in Reno and was involved subsequently in some shady business dealings, which came to light through various lawsuits. Frost held and breached the lease on the Mt. Rose Sawmill. In an incident that led to a lawsuit, Frost physically prevented a competing lumber firm (Frost owned the Nevada Pine Mill and Lumber Co.) from taking from the sawmill wood it purchased. Also, he was sued for failing to pay for lumber he bought from a Lake Tahoe man.

In another arrangement, Frost was a co-partner with McKay and Marion T. Weller in F.M.W. Drilling Co. In 1957, an employee sued F.M.W. for not paying him $1,650 ($15,000 today), the remainder of wages due him for building an oil derrick.

In 1961, a Frank Frost appeared to be working at the local Buick dealership as the assistant general sales manager. It may or may not have been him.

The Mobster Frost, who’d left a trail of crime in his wake, passed away on April 1, 1967 at age 68 in Nevada.

Sources

An innocent man was placed in law enforcement’s crosshairs in late 1930s Los Angeles for a heinous crime … the frame-up stuck.

George “Les” Bruneman

Caught Unawares

While strolling on Southern California’s Redondo Beach Strand, or boardwalk, with a female employee on a July Monday night after dinner with friends, George “Les” Bruneman, 40, was shot in the back. The bullet, which entered his left shoulder, pierced a lung and entered his abdomen. He survived but spent months in the hospital.

“I’m living on borrowed time,” Bruneman told a detective lieutenant. “I’ve got about six weeks more. They’ll get me the next time. They won’t send the same pair, though. They’ll send experts after me the next time” (Oakland Tribune, Oct. 25, 1937).

Bruneman owned/operated the Surf Club gambling house in Redondo Beach and had many horse racing bookmaking establishments throughout that Los Angeles County beach area.

In Cold Blood

Six weeks after his release from the hospital, on October 25, while drinking with friends in Los Angeles’ Roost Café in the wee hours, Bruneman was executed, sustaining four shots from a distance followed by six more at close range. An innocent bystander, Frank A. Greuzard, ran after the killers, but they fatally gunned him down, too.

Police theorized that Bruneman’s murder was related to a gambling feud of some sort, perhaps even rivals wanting his territory for themselves.

Pete Pianezzi, 1981

Seeking A Suspect

While various persons of interest were questioned and released, an informant led police to Peter “Pete” Attillio Pianezzi, an ex-convict from San Francisco, California with bank robbery charges pending against him. He was arrested for the murders of Bruneman and Greuzard.

Pianezzi went on trial for the killings in February 1940, when he was 38. In court, one of the owners and the bartender of the Roost Café identified him as being the shooter. The prosecutor went for the death penalty, but the jury couldn’t agree on a verdict.

In Pianezzi’s second trial, which ended two months later, the panel of his peers convicted him of first degree murder, and the judge sentenced him to life imprisonment at Folsom State Prison.

Around the same time, he was found guilty on three counts of first degree robbery netting $17,000 in bank holdings. For those, he was given three life sentences. All four periods were to be served concurrently.

Long Overdue Exoneration

Pianezzi served 13 years, getting released in May 1953. For the next several decades, he worked to clear his name with respect to the murders and always maintained his innocence regarding them. He especially wanted his wife Frances to see him cleared, but it didn’t happen by the time she passed away.

“I’ve been pretty upset and depressed,” Pianezzi said. “I wanted her to see it. But even if she’s not around, I’m going to hang in there. I didn’t commit the murders, and that’s it” (Folsom Telegraph, June 26, 1981).

In 1966, California Governor Edmond “Pat” G. Brown, offered Pianezzi a pardon on the grounds that he’d been rehabilitated. He turned it down though because he wanted exoneration based on his innocence.

Fifteen years later, in 1981, Brown’s son, California Governor Gerald “Jerry” Brown pardoned Pianezzi, then age 79 and retired from a job distributing newspapers in Mill Valley.

Moceri on left, Bompensiero

Later Revealed

Roughly four decades after Bruneman and Greuzard’s murders, the identity of the actual killers and the motive for the crime supposedly came to light. Two hitmen, members of the Los Angeles Mafia — Leonard “Leo/Lips” C. Moceri and Frank Bompensiero — committed the murders, according to Jimmy “The Weasel” Fratianno, one of their cohorts who became an FBI informant. Jack Dragna, head of that crime family, ordered the hit, he said. (Moceri and Bompensiero had died, by murder, before Pianezzi’s pardon, the former in 1976, the latter in 1977.)

What allegedly led up to the hit on Bruneman was a dispute between him and Johnny Rosselli, whom the Chicago Outfit had dispatched to Los Angeles to protect Nationwide, the only horse racing wire service provided in California at the time. Bruneman had been bootlegging the service. A rumor swirled that Bruneman wanted to take out Rosselli, then a respected member of the Dragna crime family. When Dragna heard it, he acted pre-emptively.

According to Fratianno, Moceri had described to him years earlier how the assassination had gone down and the fallout, concluding with: “Want to hear the payoff? The cops arrested some dago, Pete Pianezzi, and believe it or not, the son of a bitch was convicted and he’s still serving time on that murder rap. It’s a bum beef.”

Sources

Photo of Bruneman: from the Oakland Tribune, Oct. 25, 1937, by the Associated Press
Photo of Pianezzi: from the Arizona Republic, June 25, 1981, by the Associated Press

U.S. FBI seal

1970-1975

In a massive, coordinated effort, federal agents raided illegal bookmaking operations throughout the U.S. with ties to organized crime.

On December 12, 1970, Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS) agents struck in 11 states and 26 cities, including Las Vegas, Los Angeles, New York, Detroit, Miami Beach, six in Ohio and five in Georgia. The feds served 160 search warrants and made 27 arrests.

Mobsters Wanted

In Nevada, the Feds targeted Caesars Palace and the Rose Bowl Sports Book in Sin City. The following men were arrested, among others, for allegedly running an illegal sports book, in connection with the nation’s top bookmakers, between Palm Springs, California and Las Vegas. They were charged with violating interstate gambling laws.

• Frank “Lefty” Rosenthal, Rose Bowl Sports Book manager and alleged Chicago Outfit member

• Jerome Zarowitz, former Caesars Palace casino manager and reputed mob associate in partnership with the New York Genovese and Boston Patriarca crime families

• Elliot Paul Price, Caesars Palace casino host and alleged Patriarca crime family associate

• Sanford Waterman, executive vice president of Caesars Palace

When FBI agents raided Caesars Palace, they seized about $1.6 million in $100 bills (about $9.9 million today), mostly from Zarowitz’s lockboxes kept at the casino, the rest from those of Price and Waterman.

Watertight Case … Or Not

With the defendants free on bond, a trial was set, and the defendants retained attorney Oscar Goodman to represent them.

“The case hinged on wiretap information, which solidly established the multi-state connections and the activity of the group. In short, they were dead,” Goodman said in Of Rats and Men, John L. Smith’s biography of the attorney who later became Las Vegas’ mayor.

In prepping for the case, Goodman noticed an irregularity on the wiretap authorization, that someone other than U.S. Attorney General (AG) John Mitchell had signed his name. The defense attorney later determined the assistant AG had signed for his boss, which is illegal.

On that basis, Goodman requested the court dismiss the case. It did, but an appeal followed.

Ultimately, in late 1975, District Court Judge Roger Foley ended the saga for good. He determined the federal government hadn’t exhausted all other investigative avenues before they’d resorted to bugging and that made the wiretap evidence inadmissible.  Without it, prosecutors didn’t have a case.

“Every defendant walked away without a scratch from the biggest federal assault on the national bookmaking syndicate since the Roaring ’20s,” Smith wrote in Of Rats and Men.

Sources

1941

In an override of Governor Edward Carville’s veto, Nevada legislators legalized bookmaking.

The law explained that “the receiving of bets or wagers on horse races held without the state of Nevada shall be deemed to be a gambling game,” thereby making it permissible for those with a gambling license to take such bets on such events.

1945-1955

In the late 1940s, three bookies — or commissioners, as they preferred to be called — operated on Sunset Strip in West Hollywood, California under the name, Golden News Service. Hy Goldbaum, George Capri and Edward Cooke, all in their late 40s or early 50s at the time, specialized in assuming large bets that solo bookies couldn’t carry, and covering or placing them nationally with other bookmakers, which earned them the moniker, the bookie’s bookies.

The trio left California in 1949 and went to Las Vegas, Nevada, where they could ply their trade legally. Goldbaum went on to work at the Flamingo and the Stardust.

Two years later, the men became ensnared in a federal crackdown on bookmakers and were charged with income tax evasion and conspiracy, resulting from their having filed fraudulent returns. The government claimed the men together had done $6 million in business in California (about $70 million today!), but had only claimed income of $289,000 ($3.3 million today). Goldbaum also was charged individually for under-reporting his income.

They were convicted on 11 of 13 counts of tax evasion and conspiracy and sentenced to three years per count to be served concurrently.

“I’m convinced that a general conspiracy existed to defraud the laws of the United States, of Nevada and of California,” said the judge (Reno Evening Gazette, Feb. 5, 1952), but he also noted he imposed a lenient punishment because the defendants had been cooperative.

The U.S., however, wasn’t done with Goldbaum. The government filed a $1.6 million tax lien against him for past personal taxes it claimed he owed.

Time Served

After two years and five months at the McNeil Island Corrections Center, the three “commissioners” were released on $10,000 ($89,000 today) bail each, pending the outcome of their appeal to the U.S. Supreme Court. In 1955, it looked like they might catch a break when the justices ordered the lower federal court to reconsider its ruling.

But the court of appeals in California affirmed its earlier decision, making the case overall a win for the federal government.

Photo from freeimages.com: “Graphic of Abacus” by Cyndi Papia

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Einstoss

1939-1941

Bernard “Bernie” Einstoss was a well-known gambler in Northern Nevada for nearly two decades, between 1947 and 1965.* Prior to that, he masterminded and executed a scheme to fix horse races** in California by bribing and threatening jockeys to “pull” the horses they commandeered, or keep them from winning.

Einstoss went by the name Barney Mooney and introduced himself to people as Mooney.** He earned the nickname “Big Mooney,” wrote John Christgau, “because he liked to sweep into fancy nightclubs and set up the house with drinks — especially champagne, if he was flush from a big winning bet” (The Gambler and The Bug Boy). Einstoss began placing bets in grade school on marbles and chocolates and by high school, which he dropped out of, had progressed to wagering on prize fights, horse racing, baseball and more.

How It Worked

Einstoss, 27, with the help of some accomplices, launched his race fixing scheme with the season’s start in 1939 in Southern California, where he ran a suite of bookmaking rooms in Los Angeles with fellow gamblers, Benjamin Chapman and I.W. “Doc Kebo” Kivel.

The three spread tips around Hollywood movie lots that specific horses were sure to win in certain races, and they’d take the bets on them. Specific targets were high rollers like George Raft and Don Ameche. Then Einstoss would have the jockeys riding those horses deliberately lose the races. The trio profited from the betters’ (or suckers’) losses, assuredly and amply.

Manipulation Of Jockeys

Einstoss had intermediaries recruit and pay jockeys who could be bribed, typically those who were young, under age 20 for instance, vulnerable and desperate for money. Based on handicapping percentages, Einstoss determined which horses he wanted to lose and got word to the corresponding jockeys to “pull” them, sometimes multiple horses for one jockey in a day. Einstoss paid the riders $200 (about $3,500 today) per favorite and $100 ($1,700 today) per longshot horse they pulled and paid the go-betweens $200 per jockey they turned.

Einstoss had thrashed a jockey who hadn’t done what he’d asked, and most expressed a fear of him and belief that he’d kill them if provoked. In at least one instance, when a jockey failed to lose a race because he couldn’t physically restrain the horse, Einstoss told him, “You cost me $30,000! Thirty-thousand dollars! I’ve thrown boys in the ocean for less” (The Gambler and The Bug Boy). (This is equivalent to about $532,000 today.)

“These boys, I feel sorry for personally because I believe that they are just young kids, that is all, and they are not mature. They have not the state of mind to think things out … and they are tempted with easy money … far more than they ever saw before in their lives,” Jerry Giesler, chairman of the California Horse Racing Board, said at a hearing where numerous jockeys were compelled to tell what they knew about the race fixing.

Perpetrators Caught, Plot Halted

In November 1940, following an investigation, Einstoss was arrested and, eventually, so were his partners in crime. They were his brother, gopher and bet taker, Jack Einstoss; gamblers Chapman and Kivel; and two middlemen, Saul “Sonny” Greenberg, a horse trainer, and James Joseph Murphy, real name Irving Sangbusch, a race track follower.

Because fixing races wasn’t illegal (yet) in California, the group was charged with conspiracy and contributing to the delinquency of minors (the jockeys).

The Prosecution’s Case

At the trial, which began on February 28, 1941, the State of California argued that the defendants ran bookmaking establishments and through control of jockeys, altered the outcomes of races on which they’d accepted wagers and themselves had bet at the tracks. Prosecutors alleged that the group had fixed more than 100 races at various tracks — Hollywood Park, Del Mar, Bay Meadows and Tanforan — yielding an estimated $1 million (about $17.7 million today).

Sangbusch/Murphy testified for the state in exchange for removal of the charges against him. He explained that Reno, Nevada mobster and illegal gambler William “Bill/Curly” Graham had suggested to him that he contact Einstoss and had furnished the phone number. Sangbusch followed through, and the next day met with Einstoss, Kivel, Chapman and others at the bookies’ Hollywood headquarters, where they discussed the race fixing strategy. Subsequently, Sangbusch began working as an intermediary for the group. He admitted to having distributed about $20,000 ($355,000 today) in bribes from Einstoss to certain jockeys.

Defense: Gambler With Scruples

When Einstoss, free on $3,000 bail, took the stand, he claimed he made money by gambling on odds as opposed to race fixing through bribing jockeys. His attorney, Paul McCormick, argued that Einstoss was “always an honest gambler” (Los Angeles Times, May 3, 1941) yet admitted that Einstoss had given money to the jockeys and had known the jockeys, of their own accord, likely were going to pull their horses.

“But the facts are that the jockeys approached Einstoss,” not the other way around, McCormick added. “They were touting him to bet on certain horses and he paid them money for their tips. It is very probable that they might have pulled those horses to make their tips good and therefore collect more money.”

During final arguments, Einstoss “burst into tears,” got up, left the courtroom, went into an adjoining room, sat and sobbed (Nevada State Journal, May 16, 1941).

The End Result

After two months of testimony, at May’s end, the jury found Einstoss guilty on four misdemeanor counts of contributing to the delinquency of minors but not on the conspiracy charge. The judge ordered he serve a year in county jail and pay a $1,000 ($17,000 today) fine. The convicted man did both.

Subsequently, Einstoss moved to Reno, Nevada. Over the ensuing decades, he co-owned and had some involvement in the casino operations at the Mapes and Riverside hotels and the Horseshoe Club in Reno, along with the Bal Tabarin at Lake Tahoe in Crystal Bay. He had a smaller, nonoperational ownership in Caesars Palace in Las Vegas.

Most of the jockeys who participated in the plot were suspended indefinitely from horse racing in California.

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* Bernard Einstoss died in 1966 at age 53 in Southern California.
** Horse racing under the parimutuel wagering system has been legal in The Golden State since 1933.
*** The name “Mooney” comes from the Gaelic word “maoin,” which translates into “wealthy” or “descendant of the wealthy one.”

Sources

Pasadena, California in 1945

1948

When Pasadena, California vice squad officers got a tip that chef/restaurant owner Paul B. Weston, 56, was sidelining as an illegal bookie, they raided his home and found gambling paraphernalia — where else? — under the stove.

And, sealing Weston’s fate, while the police were in his residence, they fielded 10 phone calls to Weston in which the callers, unaware they were speaking to the law, asked for betting information. Weston was arrested.

Photo from Wikimedia Commons/The National Archives