The couple’s harrowing experience started at their Las Vegas home.

Two men disguised with faux facial hair and odd outfits nabbed First National Bank of Nevada executive Reno N. Fruzza as he entered his garage at about 9 p.m. on Monday, May 23, 1977. They held him, 56, and his wife Polly, 50, captive there, overnight, at gunpoint.

Reno had worked for the financial institution for 36-plus years. Polly had had a career as a Western comedy star named Polly Possum in the 1950s and ’60s. The two were active in the community, avid fishermen and big art and antiques collectors.

The next morning, the kidnappers injected the Fruzzos with a poison requiring an antidote to stave off death, they told the couple. They instructed Reno to retrieve $1.22 million dollars from his bank’s vault and then follow directions he’d receive in notes left for him in various places. Otherwise, they’d withhold the antidote from Polly, and she’d die.

Elusive Money Swap

Reno obtained the cash and while doing so, told some bank employees what was happening. Per the typewritten note in his 1963 Cadillac’s glove compartment, he then went to the phone booth outside the Knight’s Inn. Meanwhile, his co-workers had notified the police who’d caught up to and started following Reno but allegedly lost him in traffic.

The next note told him to go into room 125 of the Sahara hotel-casino. There, in an ashtray was another instruction, to find and use the 1964 beige Cadillac sedan in the parking lot to follow spray paint marks on the road. Subsequently, various notes and Polaroid photos led Reno through numerous small rural towns, including Goodsprings, Sloan, Jean and Sandy Valley, and finally to the Calvada Inn in Pahrump, about 60 miles from Vegas. He arrived there at about 1 p.m., and was to stay in its Pony Express Bar until further notice.

While he was there, the perpetrators removed the money from the Cadillac’s trunk. They transferred it to a yellow Cessna 172 (which had false identifying numbers on it) and flew from Pahrump to the North Las Vegas Air Terminal, where they got in waiting cars and left. They phoned Reno at about 3 p.m., thanked him for his cooperation and said he was free to go. The freed captive immediately called police, who subsequently found Polly handcuffed to a bed post in Las Vegas’ Showboat hotel-casino.

Neither Polly nor Reno had been hurt, and the supposed poison they’d been injected with had been a hoax, requiring no lifesaving remedy.

Suspects Identified

FBI agents on the case determined the two culprits were Paul Michael Kodelja, a 30-year-old craps dealer at Circus Circus in Las Vegas and previously Harrah’s in Reno, and 50-year-old Craig Otte. Kodelja was a licensed pilot with no criminal background. Otte, however, had a record including burglary, larceny and other petty crimes. Most recently, though, he allegedly had robbed a Los Angeles bank of $40,000 in 1975, charges for which were pending against him in 1977.

For Otte and Kodelja’s criminal scheme, the federal government charged them with conspiracy, stealing bank money, assault with dangerous weapons and kidnapping.

Accountability On Horizon

The younger of the two turned himself in 10 days after the crimes and after his attorney Oscar Goodman negotiated his surrender. Kodelja posted $150,000 in bail and was released from the Clark County Jail. After pleading innocent to the charges, he turned to the Nevada Supreme Court for dismissal of the counts against him on the grounds that the grand jury indictment contained ambiguous language and other technical problems.

Kodelja, however, lost that appeal in November 1977. A trial date was set for January 4, 1978.

As for Otte, he’d disappeared. The stolen $1.22 million had, too.

————————————–

The story concludes in next week’s post, Casino Dealer, Accomplice Execute Elaborate Crime in Las Vegas, Part II.

Sources

Elliot Paul Price

1970-1973

When federal agents arrested Elliot Paul Price, 51, during a massive multi-city raid in 1970 and charged him with illegally transmitting race wire information across state lines via telephone, two dominos fell:

• He lost his job as a casino host at Caesars Palace in Las Vegas.

• The Clark County Sheriff’s Office pulled his work card, which is required for casino employment.

In April 1971, however, the sheriff’s department issued him a temporary permit to work in a similar position at Circus Circus. Within the week, though, the Nevada Gaming Commission (NGC) voted to pull it due to his being under federal indictment and allegedly having an unsavory background. On the NGC’s orders, the sheriff’s office revoked his card, leaving Price again unemployed.

Price Won’t Take No

Unable to obtain a casino job, he filed a lawsuit, but it went nowhere because, according to the judge, he hadn’t pursued all possible avenues for re-obtaining his employment permit.

Price asked the NGC and the Nevada Gaming Control Board (NGCB) to reinstate it, but they didn’t. This was because, in a hearing on the issue, he refused to answer questions about his suspected association with underworld individuals. Price hailed from Boston and gambling regulators believed he was entrenched in the Mafia there.

Lawsuit, Take Two

At the start of 1972, with Oscar Goodman as his attorney, Price sued Nevada Governor Mike O’Callaghan and the NGC, claiming the latter had rescinded his work card arbitrarily. The suit purported the agency’s decision hadn’t been based on established guidelines but, rather, on unrelated “charts of the Mafia, ancient newspaper articles, dime store novels, and secret and confidential information” (Nevada State Journal, June 13, 1972). It also asserted the NGCB hearings had violated his freedom of association right and forced him to be a witness against himself.

Goodman requested the withdrawal of Price’s work card be deemed unconstitutional and a temporary restraining order (TRO) be placed against the gambling regulating agencies, preventing them from interfering with his obtaining a new one.

The state, on the other hand, argued that were the court to afford the TRO until the issue got resolved legally, it would be substituting its judgment for that of Nevada in a state administrative matter. Also, were Price to prevail, it “could well emasculate the total regulatory concept of gaming” (Reno Evening Gazette, June 13, 1972).

District Court Judge Howard Babcock granted Price the TRO.

Nevada Fights Back

The NGCB responded with a suit of its own to overturn Babcock’s action on the grounds that the local court lacked jurisdiction in the matter. The NGC and NGCB conceded Price could work in a non-casino job at Las Vegas’ Riviera hotel.

District Court Judge Carl Christensen denied the State of Nevada’s motion to dissolve the TRO. This meant Price could return to his casino host post at Circus Circus until the high court weighed in.

Off To Higher Court Land

Next, Goodman took the case to the Nevada Supreme Court, asking it to allow Price to regain his work card, thereby protecting his constitutional right to due process.

Deputy Attorney General David Polley, for the state, argued that upholding Babcock’s ruling would “set a dangerous precedent which would be detrimental to the inhabitants of Nevada and their major industry” (Nevada State Journal, June 13, 1972).

Resolution Three Years Later

In 1973 the Nevada Supreme Court delivered the opinion that, yes, the lower, or district, court had jurisdiction to rule upon the validity of Price’s right to work in gaming.

In other words, Goodman and Price* won the legal fight. Their doing so established that Nevada couldn’t deprive someone of their work card without due process. Subsequently, Clark County instituted processes for suspending or revoking a work identification card and for an appeal by the card holder.

—————————–

* In 1979, Price would be indicted for multistate race fixing along with other members of Boston’s Winter Hill Gang, James “Whitey” Bulger’s associates, for which he would serve two months. Subsequently, he would disappear, never to be heard from again.

Sources

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