McDonough

1934-1935

An argument between two underworld men devolved into violence during a dance endurance competition in Hollywood, California on April 14, 1934.

Explosion Of Rage

At 7 a.m., the 21th consecutive hour of the walk-a-thon,* competing dancers sluggishly moved about the Winter Garden Auditorium floor. Mobster James “Socks” McDonough, among the spectators, sat at a table in a far corner, playing craps with some buddies.

Suddenly, angry shouting erupted and soon after, gunshots rang out, seven of them.

McDonough slumped in his chair. Chaos ensued.

Emergency personnel rushed the critically injured man to Georgia Street Receiving Hospital where he received emergency treatment for through-and-through bullet wounds to the chest and thighs. After, he was transferred to General Hospital. Reportedly, he had 15 scars from previous gunshots.

The Criminal Life

He likely had gotten those during his years as an alleged member of the Dean O’Banion** (né Charles Dean O’Banion) and Bugs Moran’s (né George Clarence Moran) North Side Gang in Chicago, Illinois. At the time of the walk-a-thon, McDonough had been in Los Angeles for about three years and continuing his criminal ways. At one point he’d been the city’s Public Enemy No. 1.

As such, police had questioned him frequently in connection with various crimes. In 1932, McDonough had gone to trial for allegedly participating in the $50,000 ransom kidnapping of E.L . “Zeke” Caress, betting commissioner at Agua Caliente, but the case again the Chicagoan was dismissed.

Hints Of Mob Involvement

Three to four hours after the potentially fatal incident, a citizen and former U.S. deputy marshal, H.W. Ballard, reported to police a car driving erratically in his neighborhood, about three miles from the Winter Garden.

An officer dispatched to the area discovered the reported car, parked, with actor Thomas O’Rourke, 37, behind the wheel. Lee Moore, 35, bookmaker, former prizefighter and previous bodyguard for professional boxer Jack Dempsey, was passed out in the back seat. When searched, Moore was found to have a small automatic pistol on his person. The officer took both men to the police station.

Faulty Memory, Denial

By this time, detectives working the McDonough case deduced, after hearing witness accounts, that Moore probably was the perpetrator. (McDonough knew who’d shot him but wouldn’t name the man.) On questioning, Moore said he was drunk and didn’t remember anything. O’Rourke relayed he and Moore had gone to the Winter Garden after attending the Hollywood Legion Stadium prize fights, but he didn’t recall a fight or shooting.

Moore was arrested for assault with a deadly weapon with the intent to commit murder and O’Rourke, for drunk driving. While in jail, awaiting trial, Moore served a previously received 30-day sentence for illegal gambling.

Underhanded Tactic

A few days after Moore’s arrest, Ballard received an anonymous phone call in which a man told him, “You better lay off if you don’t want to get yours.” Later, while the local resident was driving, a car pulled up alongside him, and the men inside verbalized a similar threat.

Meanwhile, McDonough remained alive, though barely.

“The shock from the seven wounds, police surgeons stated, probably will prove fatal unless the victim has unusual recuperative powers,” reported the Los Angeles Times (April 16, 1934.)

Mum’s The Word

By the time of Moore’s trial, in July, McDonough defied the odds and pulled through.

In court, nine witnesses, on the stand, suddenly couldn’t remember any specifics of the shooting despite having provided detailed accounts to detectives before. The Times described this phenomenon as “gangland’s shadow” dogging the witnesses. One of them recanted his entire former statement. O’Rourke pleaded the fifth. McDonough testified he didn’t know who’d shot him and denied ever having seen Moore before court.

Who’d gotten to these witnesses? It seems Moore was connected to a criminal entity, but which one? The Los Angeles Mob?

Because of their silence, none of the witnesses placed Moore at the scene of the crime. However, ballistics experts, determined the gun found on the defendant was the weapon that had been used, after comparing it to slugs and the bullet retrieved from the Winter Garden.

The defense countered this fact by having Moore claim he’d purchased the gun at 7:30 a.m., roughly a half-hour after the shooting, “from a guy about 6 feet 8 inches tall in a Hollywood Boulevard beer hall” (Los Angeles Times, July 31, 1934).

Out Of Bogus Stories

Despite the setback for the prosecution, and no motive for the shooting made apparent, Moore was found guilty. The judge sentenced him to one to 14 years to be served in San Quentin State Prison.

The convicted man appealed the court’s decision and lost. He continued to fight, though, taking his case to the Supreme Court of California.

Best You Move On

In September, Los Angeles Captain of Detectives Bert Wallis called McDonough into his office. There, Wallis suggested the Mobster might want to leave the city or he’d likely get arrested for vagrancy. McDonough agreed to go. Wallis helped him procure a train ticket.

That night, he left on the Santa Fe, headed to Chicago. The press captured his departure.

What Comes Next

The following year, 1935, in May, the California supreme court reversed the lower court’s decision, on grounds the evidence on which Moore had been convicted had been insufficient. He was freed.

It wasn’t long, though, until he was in trouble again. He was arrested a year later for involvement in the July 1935 robbery of the Monte Carlo gambling ship.

———————————

* Jack Kearns, current and former manager of professional boxers Mickey Walker and Jack Dempsey, respectively, promoted the event.

** Dean O’Banion headed Chicago’s North Side gang during the 1920s until rival Mobsters murdered him in 1924. Bugs Moran took over for O’Banion. Throughout the decade, the North Side Gang violently fought the South Side Gang, helmed first by Johnny Torrio then Al Capone. In 1929, seven of Moran’s men were duped and gunned down by Mobsters dressed as policemen, suspected to be South Side Gang members, in what is known as the Valentine’s Day Massacre.

Sources

Wyatt Earp, age 21

Iconic American figure, Wyatt Berry Stapp Earp (1848-1929), is heralded for his courageous exploits as a lawman, but he was a gambler first and foremost, often relying on the then-respectable profession to earn income throughout his lifetime. He’s earned a spot in U.S. gambling history.

Earp’s Gambling Education And Practice

At age 20, the tall, slender native Illinoisan landed a job in Wyoming grading track for construction of the Union Pacific Railroad. During time spent at the railhead, Earp learned how to play and deal faro and run monte. Over the next several years, he honed the craft in various gambling houses, saloons and brothels of the frontier and became proficient. Eventually, he operated table games, too.

As a gambler, Earp reportedly was honest and garnered high repute wherever he went, and he traveled a lot.

“Earp rarely stayed in the same place for long, frequently becoming broke, bored, unwelcome or some combination of the three,” wrote John Caldbick in a History Link essay.

The nomad typically moved from boomtown to boomtown, and in every one he hustled as a faro banker. He did own some brick-and-mortar gambling establishments, too. Here are some of them:

It Was Westward Ho For Lawman

After a roughly decade-long stint as a law enforcement officer, most recently as a deputy U.S. marshal, Earp relocated to San Diego, California in the mid-1880s.

“There was another Wyatt Earp seldom remembered — an older, wiser gentleman who lived in San Diego and operated gambling halls; bought and sold urban property; refereed [bull and cock] fights and owned racehorses,” reported the San Diego Union (Oct. 17, 1978).

During his roughly decade of living off and on in America’s Finest City, Earp leased and operated four gambling saloons there, all four simultaneously at one point, reportedly. All of them were in the red light Stingaree district that teemed with con men, shifty gamblers and criminals.

They offered faro, monte, blackjack, poker, keno, pedro, monte and other games. Not much else is known about Earp’s gambling enterprises there except for their locations and that they were profitable, particularly during the city’s boom years, 1885 to 1888, during which the gambler could net as much as $1,000 a night.

His most famous and most popular gambling spot was the Oyster Bar, in the Louis Bank Building at 835 Fifth Avenue. The others were at:

• A corner of 6th and F streets (where he ran high stakes faro)
• The northeast corner of 6th and G streets
• 951 4th Street

On Sundays, Earp promoted and ran all types of gambling, including the big wheel, rouge et noir, faro, monte and even thimblerig in Tijuana, Mexico.

Businessman Strikes Gold With New Saloon

After the rush to Nome, Alaska Territory for gold began in 1899, Wyatt moved there. He and partner Charlie Hoxie built and operated the luxurious Dexter Saloon, the town’s hotspot for travelers, miners and locals to drink, gamble, discuss politics and do business. The establishment was hugely successful thanks, in large part, to Earp’s notoriety.

Dexter Saloon

Gamblers Disgruntled by Big Name Newcomer

While still a co-owner of The Dexter, in 1899, Earp debuted another gambling house: The Union Club. That one was in Seattle, Washington’s tenderloin and was a partnership with a local man, Thomas Urquhart.

The move was risky because The Emerald City prohibited gambling and the men running places offering games of chance regularly paid off the local officials to let them operate. Those gamblers were displeased with the famous lawman moving in on their territory and then, with the Union’s immediate success, having to compete with him.

Law enforcement erratically enforced Seattle’s anti-gambling ordinance and this created ongoing trouble for the Union’s co-proprietors. Consequently, within six months of opening, Earp pulled out of the joint venture.

Nomad Stakes Out Mining Camp

Earp sold his share of the Dexter to Hoxie and headed to Nevada, Tonopah specifically. There, in 1902, he opened the The Northern with partner Al Martin and ran a successful business. 

—————————————-

Know anything more about Earp’s gambling career? Let us know about it, please.

Sources

Cadell

1947-1950

Starting in 1947, Wiley “Buck” H. Cadell used his governmental position to build a statewide system of protection for illegal gambling operations in California, the first such concerted effort of this kind in the state. At the time Cadell worked as a gambling investigator, and previously an undercover agent, for California Attorney General Frederick N. Howser. Prior to that, he worked for 20 years as an officer for the Los Angeles Police Department.

Howser

Howser was in on (and perhaps the mastermind of) the conspiracy. His role was covering it up and shielding Cadell and his other agents — Charles Hoy and Walter Lentz — from external investigation and prosecution.

Hoy

Lentz

How It Worked

One part of setting up the protection racket involved getting all of the gamblers in a county to pay a monthly fee or close shop. In exchange, law enforcement wouldn’t interfere with their illegal business.

From gambling house owners, the colluding agents demanded anywhere from 20 to 50 percent of their enterprise’s gross earnings. For slot machine operators, the fee was $4 apiece. For punchboard users, it was $2. (A different group of men was involved in organizing a punchboard monopoly and protection system in The Golden State. They, too, did this with Howser’s blessing.)

For the protection scheme to work, the conspirators also had to get the police chief or sheriff in the same county on board. This meant the officers of the law had to agree to ignore the commercial gambling happening in their jurisdiction. For doing so, they’d receive a portion of the collected payoff monies. Another part of the graft went to Howser.

To sway these law enforcement heads, Howser’s representatives emphasized they had powerful friends in Sacramento. They even often outrightly stated they “had the approval and the authority of the attorney general’s office,” the California Crime Commission reported in its Final Report (Nov. 15, 1950).

Progress Made

Howser’s agents worked on expanding the scheme for over a year. During that time, they approached many of California’s counties. The crime commission knew of at least 16, including Los Angeles, San Luis Obispo and San Bernardino. There may have been more.

Unraveling Begins

Cadell’s involvement ended in June 1948 when he was indicted for related activity (and thus, quit working for Howser). The ensuing charges were for organizing a slot machine protection racket and for plotting to bribe Mendocino County Sheriff Beverly Broaddus.

Howser publicly announced he fully supported Cadell. The elected official also claimed the charges against the agent had been trumped up to frame him.

Despite the AG’s position, a jury convicted Cadell (and two others, a former police officer and a resident, both of Los Angeles), each on five counts of bribery and gambling conspiracy. The judge sentenced Cadell, whom he identified as the “arch conspirator,” to three consecutive prison terms (The Modesto Bee and News-Herald, Dec. 18, 1948). They were 1 to 14 years followed by another 1 to 14 years and, lastly, 1 to 3 years.

“This was not a case of operation of an isolated slot machine,” the judge told the defendants, “but the crimes with which you are charged are more serious, about as dastardly as any crimes that are committed” (The Modesto Bee, Dec. 18, 1948).

As for Howser, no irrefutable evidence linked him to the payoffs. However, “he was tainted by the association,” author Ed Cray wrote in Chief Justice.

Impact Of The Unwilling

Not every person Howser’s men approached on both sides, law enforcement and gambling, was keen on the scheme. Some rejected the proposal outright.

One gambler, Tiny Heller, an Alameda County bookmaker, refused to pay any graft. He was told by a member of the protection racket, Mobster-gambler Dave Kessel, that he could keep operating through the end of the football season but not afterwards. Heller continued taking bets. Soon after, before the deadline to close that Kessel cited, Heller’s business was raided, and Hoy arrested him.

Many other targets filed complaints or informed the crime commissioners about various people having tried to recruit them into the scheme. The crime agency detailed and published all such reported events in its 1950 report.

That exposure, combined with Cadell’s conviction and Howser’s failure to get re-elected in 1950, caused the system to crumble.

Sources

Faro stands out in U.S. gambling history. The imported card game dominated the industry here for a long time, about 100 years. “Tiger” was the country’s favorite gambling pastime during the 1800s, though played before and after. Men couldn’t get enough of it. It was ubiquitous.

Faro also is noteworthy for being the game in which the first rampant cheating at cards occurred in the States.

“No other card or dice game, not even poker or craps, has ever achieved the popularity in this country that faro once enjoyed, and it is extremely doubtful if any has equaled faro’s influence upon American gambling or bred such a host of unprincipled sharpers,” author Herbert Asbury wrote in Sucker’s Progress.

Shaving, Pricking, Sanding

The first cheating tricks in faro involved altering the playing cards. Sharpers could buy all types of prepared cards. However, the careful gamblers invested in shears, knives and trimming plates and modified the decks themselves.

One method was trimming certain cards in each suit in specific ways with shears. These cards are called strippers. The deck containing them was a stripped deck. The amount shaved off the cards was minute, about 1/16 or 1/32 of an inch in width.

Trimming shears

One type of strippers is wedges. Using shears, the sharper trimmed both long sides to make them narrower at one end, say the bottom, than at the other, the top. Ends are similar but instead of the sides being shaved, the ends, or short sides, were.

Then there are hollows and rounds, or bellies. With these, certain cards were cut using trimmer plates to be round, wider across the middle and tapered slightly toward the ends. The remaining cards were cut in the opposite manner, to be hollowed out, narrower in the middle and wider at the ends. Concave and convex are similar but their ends, instead of their sides, were modified.

Stripping plate

Cheaters also marked cards, known as readers. One way of doing this was making pinpricks in them, which the dealer could feel with a finger.

Sometimes cheaters roughened one side of certain cards. This made them better adhere to one another and, thus, easier to deal two at a time. This subtle texture was achieved with emery paper; spermaceti, a waxy substance sperm whales produce; a pumice stone; or a rosin-glass mixture.

Definite Advantages

With prepared cards, the cheater could stack the deck as desired and, thereby, know at all times which cards were where in it. Oftentimes in faro, he altered cards below seven and keep those separated at the top of the deck from the rest in the bottom. As needed, he took a card from the top and another from the bottom at one time. Sometimes, he hid one of two cards in his hand until he wanted to use it.

“Card sharping has been reduced to a science,” wrote John Maskelyne in Sharps and Flats. “It is no longer a haphazard affair, involving merely primitive manipulations, but it has developed into a profession in which there is as much to learn as in most of the everyday occupations of ordinary mortals.”

Advancement In Cheating

An American invention came along in the 1820s that allowed the sharper to better conceal his faro cheating tricks — the dealing box.

Faro dealing box

It led to a permanent change in how cards were dealt in the game. Beforehand, bankers dealt them from a face down deck in their left hand. Afterward, bankers dealt them from a face up deck in a dealing box.

“The motives for changing this game from the hand to the box were as base and nefarious as any that ever actuated the ingenious but wicked gambler; his object was nothing less than to be absolutely sure of stripping completely every man that should bet again him,” wrote self-described reformed gambler Jonathan H. Green in Gambling Exposed.

Evolution Of Dealing Boxes

A Virginian and notable card player named Major Robert Bailey designed the first dealing box in 1822. Made out of brass, it was a bit longer and wider than a deck of cards. The lid contained a small oblong hole in the middle for the dealer to insert his thumb or a finger and push a card out the slot on the side. This box didn’t catch on widely, though, because the top card couldn’t be identified.

Three years later, a Cincinnati, Ohio-based watchmaker, Joseph “Joe” Graves, debuted a variation in which the top card was fully visible. Casinos and faro dealers widely adopted this iteration, and over time, it became the standard.

Soon after Graves’ dealing box hit the market, a number of crooked ones appeared. The San Francisco, California-based company Will & Finck, for instance, manufactured 19 different kinds of boxes, only three of which weren’t rigged. Graves also made and sold crooked dealing boxes.

Variations Of The Device

Over time, these contraptions became more and more ingenious.

“Some were intricate contrivances of springs, levers, sliding plates, thumb screws and needle-like steel rods,” Asbury wrote.

The coffee mill, or crank box, for example, allowed the cheater to deal the second, rather than the first, card.

With the lever box, the cheater pushed an outside screw that activated a blade inside to thrust out the two top cards. Similarly, with a balance top, when the banker pressed down on one corner of it, the slot, or mouth, opened wider than usual, and he expelled two cards at once.

Yet another dealing box contained a spring mechanism that made a grinding noise only when it came into contact with a rounded card.

Other box variations included the tongue tell, sand tell, top sight tell, end squeeze, screw box, needle squeeze, lever movement and horse.

“Occasionally one of the gadgets got out of order and caused considerable embarrassment to the unlucky sharper who owned it, but as a result they worked perfectly in the hands of competent operators,” noted Asbury.

A Pretty Penny

Honest dealing boxes were about $20 a pop, but the rigged boxes cost as much as $200 for one. Louis David of Natchez, Mississippi, also a watchmaker, got wealthy in the 1840s selling his tongue-tell boxes made out of German silver for $125 to $175 apiece.

Wicked Combination

The use of altered cards in conjunction with gaffed dealing boxes took cheating at faro to a new level. With both, the sharper could deal two cards at a time, deal a card to lose when play on it to win was heavy and arrange the last turn such that it maximally benefitted the bank, among other tactics.

“The advantages thus given the dealer were so widely used that cheating soon became as much a part of faro in America as a pack of cards,” Asbury wrote.

Sources

1928-1972

Samuel “Sam” F. Termini (1903-1972) was known as a small-time racketeer who worked at and operated gambling enterprises mostly for others.

Here are 10 interesting tidbits about him and his life:

Gambling History

1) Termini was associated with Kansas City Mobster Charles Binaggio. Born and raised in Missouri, Termini had worked for Binaggio before moving to California in 1939 and was one of his godsons.

2) Termini became involved in gambling in Kansas City, Missouri, where, reportedly, he owned and operated some type of business at 404 Independence Avenue where he offered illegal gambling

In Northern California, Termini managed the illegal gambling at the Willow Tree in Colma (San Mateo County), co-owned by Mobsters Emilio Giorgetti and Elmer “Bones” F. Remmer. He held this job from 1942 until the sheriff closed the club in 1947. Also, Termini owned a 10 percent interest in the operation.

Subsequently, in the same county, Termini, using the alias Sam Murray, rented some space in the Silver Saddle tavern-café, in which he debuted and ran the Skyline Club in Redwood City. The illegal gambling there included craps and blackjack.

Termini leased and managed the gambling concession at the Tahoe-Biltmore in Crystal Bay, Nevada during the warm weather season of 1949.

Starting around the mid- to late 1950s (see No. 9), Termini worked as a pit boss at the Horseshoe Club in Las Vegas, Nevada. At the time, his former associate Giorgetti owned it.

3) When Termini ran legal gambling at the Tahoe-Biltmore, Binaggio visited the financially troubled property and decided to bankroll his godson in what was to be “the biggest gambling joint west of the Rockies,” reported the California crime commission in its 1953 report. However, the assassination of Binaggio on April 6, 1950 ended the plan.

4) Police busted Termini for illegal gambling in 1928 at his Kansas City establishment and fined $25 (about $410 today).

Custom Home

5) Termini had a custom home built for him and his family in Hillsborough, California. Constructing a home at the time, in 1946, required veteran’s priority, which Termini didn’t have. So he transferred title of his property and obtained building permits for it in the name of a nephew, a World War II veteran living in Missouri, Jesse LaBoi. This was illegal.

6) Once completed, Termini’s home was an impenetrable fortress. A heavy electronic fence surrounded the property and was controlled from an underground room. This barrier was equipped with a ring of electric eyes linked to an alarm and motion activated floodlights. Gates allowed for entry but only through controls on the Terminis’ cars or by telephoning an unlisted number. The door to the wine cellar was armor plated. An house-wide intercom allowed Termini to hear any and all conversations taking place anywhere inside the home.

Suits Against Him

7) In 1951, the general contractor and the architectural firm that built and designed Termini’s house, respectively, sued him. The former asked for $103,000 ($1.1 million. The latter asked for $16,000 ($107,000 today). Both amounts were the unpaid balances owed them for their services. The case went to trial, and jurors ruled only in favor of Marshall. They awarded him $126,523 ($1.4 million), including interest and court costs.

8) The federal government tried Termini in 1952 for under-reporting his and his wife’s income and underpaying the amount of federal income taxes they owed. The years for which he was charged were between 1945 and 1949 for his taxes and 1945 and 1947 for hers. Termini was found guilty of tax evasion in the amount of about $92,000 ($976,000 today). The judge sentenced him to three years in federal prison and a fine of $20,000 ($212,000 today).

Last 20 Years

9) For the tax evasion, Termini spent three years in the McNeil Island Federal Penitentiary. After getting released, he reportedly lived and worked in Las Vegas. Eventually, he moved to Reno, Nevada.

10) Termini passed away on June 12, 1972 at age 69 in Reno. His body was interred at Mountain View Cemetery.

Sources

1936

A single penny got Los Angeles store owner Ethel Jamison convicted.

One day at her shop, Police Officer James Mulligan placed a penny in the slot machine, pulled the lever, received a penny premium and cashed it with her.

He arrested her, as slot machines were illegal in California, and the case went to trial. The jury found her guilty of possessing a gambling device. She was punished with a 30-day suspended jail sentence.

Source: Reno Evening Gazette (Nev.), “Transaction of Lonely Cent Gets Woman Jail Sentence,” Oct. 17, 1936.

1953

Harrah’s in Reno, Nevada proposed, to event officials, the casino host an exhibit about gambling at the California State Fair. With a backdrop of silver dollars, the display was to contain gambling equipment and pamphlets on how to play various games, among other items.

The idea went over about as well as the handling of a casino cheat caught in the act.

“What they are advertising is against our state law,” said Dr. J. E. McConnell, a member of the fair board of directors. “I can’t see why we should give them anything — even lip service.”

McConnell said the proposal sounded “as if we’re being taken for a bunch of country yokels.”

(This wasn’t the first gambling-related story involving a regional fair.)

Source: Nevada State Journal, “Californians Scorn Exhibits on Gambling,” July 18, 1953.

1952

The life of wealthy, prominent businessman with several connections to the gambling industry, Thomas “Tom” A. Keen, 56, was abruptly ended at about 10:07 a.m. on Tuesday morning, February 5. 

After giving some duck eggs to a neighbor, this San Mateo, California resident walked back home. He grabbed his coat, kissed his wife good-bye and went to their detached garage to leave for work.

Once in his green Cadillac Fleetwood, he stepped on the starter. Dynamite hidden under the floorboards ignited and blew up. The fatal explosion propelled Keen’s body into the car’s back seat and sheared off his legs.

Car parts took flight. One side of the garage blasted apart. Windows of the Keen’s 16-room mansion shattered, covering the driveway and sidewalk with glass. Two windows of a home across the street also broke into pieces.

“The terrific explosion scattered flesh, metal and wood over a wide area,” reported The Humboldt Times (Feb. 6, 1952). “It was heard for blocks by residents.”

Connections To Gambling

Example of a more modern dog racing tote board

The San Mateo, California resident had worked for the past couple of decades years in the field of dog racing and horse racing. First, he’d built and operated the dog racing tracks in Belmont and Bayshore City in The Golden State. He’d co-invented the mechanical hare used in the sport. When California outlawed dog racing, he’d shifted his business focus to manufacturing and supplying totalizators,* also called totalizers and tote boards, for race tracks. Currently, he was president of the International Totalizer Company, based in Belmont.

Keen’s work took him around the U.S., to states where dog and horse racing were legal. Most recently, he’d been to Phoenix, Arizona to install one of his totalizators at a dog track. One month earlier, he’d installed five of his quinella** machines in the Miami Beach Kennel Club for purposes of demonstration.

Keen had ties with many dog and horse track operators, many of them connected. At the time, Mobsters controlled many such tracks in the country.

The Tucson-born track betting equipment mogul owned stakes in many tracks, including Sportsman’s Park in Cicero, Illinois; the Multnomah Kennel Club in Portland, Oregon; and the Mile High Kennel Club in Denver, Colorado.

“He had no one to fear,” said Keen’s friend and sports shop owner Joe Darcy. “He was never afraid. He did nothing but good for hundreds of people. Who could have done something so horrible?”

Keen

Theory No. 1

According to San Mateo Police Chief Martin McDonnell, Keen likely was killed because he took business into a territory out of which he’d been warned to stay. His department’s investigation led McDonnell to deduce Keen had been killed because he’d tried to place his quinella machines in a certain Florida hotel. The chief also surmised there most likely had been two killers, carrying out the assassination on behalf of a Mobster boss somewhere on the East Coast.

Theory No. 2

The second hypothesis was put forth by the California Crime Commission, which had held an unprecedented closed hearing in early May 1952 to investigate the Keen case. In its final report, the commission purported that Keen had been murdered because he’d owed the Olmo Group bookmaking enterprise about $20,000 (roughly $210,000 today).

Allegedly, Keen had been an Olmo customer and a heavy bettor and had refused to pay his debt even after the group’s enforcer Richard “Big Dick” C. Trabert had tried “persuading” him to do so. As a result, supposedly Mobster-gambler Emilio Giorgetti and John O’Neil, also part of the Olmo ring, had been forced to cover the loss. (Keen’s estate at the time he passed away was worth $204,000 (about $2 million today).

The San Mateo County District Attorney Louis B. Dematteis, who wasn’t corrupt, didn’t give the bad debt theory much credence, he said. The timing — Keen being murdered two years after the Olmo Group had disbanded — didn’t make sense. Dematteis thought it more probable the murder was tied to more recent events.  

The actual motive behind the murder of Thomas Keen remains a mystery; the crime still is unsolved.

————————————–

* A totalizer is the system for running parimutuel betting. It’s an electrically operated board that flashes the changing odds and total bets before dog and horse races and the payoff amounts after.
** A quinella, or quiniela, is a bet in which the first two places in a race must be predicted, but not always in the correct order. Quinella machines, which displayed these types of bets, were used in dog, but not horse, racing.

Part II and Part III.

Sources

Joseph “Doc” Stacher (born Gdale Oistaczer, 1902-1977) was a “a genial, shrewd, witty gent” who could be “homicidally tough,” wrote “Voice of Broadway” columnist Jack O’Brian (Monroe News-Star, March 17, 1977). Closely aligned with fellow Jewish Mobsters, Meyer Lansky and Abner “Longie” Zwillman, this immigrant had “galvanic” power and extreme wealth.

Here are some facts about Stacher that provide insight into the man and his life in organized crime.

1) Stacher was involved in various gambling businesses in North and South America, from slot machine distribution and bookmaking to casino ownership and management.

2) Throughout the years Stacher owned various pieces of real estate and commercial enterprises. His many assets included two homes, one in Beverly Hills, California and the other in Orange, New Jersey; nightclubs in California; hotel-casinos in Las Vegas, Nevada and New York (oftentimes, as a silent partner); and assorted other businesses. He even owned a hidden stake in Columbia Pictures. With Zwillman, Stacher owned Runyon Sales Co., which manufactured and distributed automatic coin-operated machines.

“[Stacher] was worth many millions (some experts’ estimates say he still can put his canny hands on upwards of $100 million at any given, or taken, moment,” wrote O’Brian (Monroe News-Star, 1971).

3) Between ages 22 and 26, while an active member of the Bugs and Meyer Mob during the 1920s, Stacher racked up a slew of arrests and charges:

1924, November 26:     breaking, entering and larceny
1926, April 21:               assault and battery
1926, August 18:           assault and battery
1927, June 7:                atrocious assault and battery
1927, July 11:                atrocious assault and battery
1927, August 15:           robbery
1927, December 4:       interfering with an officer guarding a still for federal authorities
1927, December 9:       atrocious assault and battery
1928, May 29:               an “open charge,” which later was dismissed

4) At Lansky’s request, Stacher organized a 1931 meeting, at the Franconia Hotel, of all of the top New York-area Jewish mobsters. They decided, at the conference, to join forces with the U.S.-based Italian Mafia. Charles “Lucky” Luciano, representing the Italian Mafioso, agreed, and the National Crime Syndicate was formed.

5) Stacher first got in tax trouble in 1952, when the Internal Revenue Bureau (IRB) claimed he owed $340,000 (about $3.6 million today) in unpaid taxes for the nine years between 1933 and 1941. After the IRB issued liens against him, Stacher paid the amount in full.

6) In the same year, a federal grand jury in New York indicted Stacher on charges of illegal gambling and conspiracy in connection with the Arrowhead Inn (which he’d owned with Lansky during the 1920s). After successfully fighting extradition from Nevada for a year, Stacher eventually returned to The Empire State in 1953 and pleaded guilty to 20 charges. He was fined $10,000 ($104,000 today) and given a one-year suspended jail sentence.

7) The U.S. Immigration and Naturalization Service (INS) revoked Stacher’s citizenship in 1956 and sought to deport him. This was because he hadn’t not disclosed his criminal record on his citizenship application 26 years earlier. The INS could not return Stacher to his homeland (what now is Poland), however, because federal law forbade deportations to Communist countries.

8) Stacher pleaded guilty, in 1964, to two counts of evading payment of federal taxes. He was fined $10,000 and given the choice of going to prison or leaving the country. He opted for the latter and sought refuge in Israel. Its Law of Return, passed in 1950, granted every Jew the right to immigrate there and become an Israeli citizen.

9) A rabbi/member of the Knesset, or Israeli parliament, defrauded Stacher. Worried that Israel would refuse him citizenship, Stacher asked friend Frank Sinatra to seek help from this politician who owed the crooner a favor. Also, Stacher donated to the same man $100,000 ($897,000 today) to be used for charitable purposes. The rabbi/Knesset member, though, used the money to build the Central Hotel in Jerusalem.

“Outraged at being ripped off, Stacher sued in a court case that drew headlines and laughs throughout the country,” reported Mafia Stories. “Israelis were amused that such a giant figure in American crime could be so taken by a meek-looking rabbi.”

Eventually, Stacher recouped the money.

10) Stacher passed away in a Munich, West Germany, hotel room on February 28, 1977, reportedly from a heart attack, and his body was transported back to Israel. There, only eight people, all men, attended his funeral. He was buried secretly and the name on his grave was changed to conceal his interment site.

——————————

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. 

———————————–

* 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