1920s-1960s

Joseph “Doc” Stacher (né Gdale Oistaczer)* was a New Jersey-based Mobster who made his foray into organized crime with Benjamin “Bugsy” Siegel and Meyer Lansky’s Bugs and Meyer Mob in Manhattan, N.Y. and then with Abner “Longie” Zwillman’s Third Ward Gang in Newark, N.J.

Eventually, he teamed up with local Mobsters, including Zwillman and Lansky, in various gambling businesses inside and outside of the United States. We briefly describe some of them.

United States — New Jersey

The East European immigrant, Zwillman and New York Mobster Frank “The Prime Minister” Costello were partners with New Yorker Frank Erickson in a hugely successful bookmaking operation during the 1930s and 1940s, thanks to Erickson’s mathematical acumen. At one point, the large enterprise boasted as many as 600 locations and 3,000 unofficial staff members throughout the U.S.

Also with Costello and Zwillman, Stacher ran “many New Jersey gambling emporia, from ‘sawdust joints,’ meaning undecorated betting factories, to ‘carpet joints,’ whose decor was swank, food exquisite, ambiance muted and clientele selectively rich,” wrote “Voice of Broadway” columnist Jack O’Brian (Monroe-News Star, March 17, 1977).

In 1938, Stacher and fronts, Barney “Sugie” Sugerman and Abe Green, founded Runyon Sales Co. The Newark-based company manufactured and distributed automatic coin-operated machines, including slot machines, pinball machines and jukeboxes.

United States — New York

Stacher ran the Arrowhead Inn, an illegal Saratoga Springs carpet joint, which he and lifelong friend Lansky owned and at times had additional owners, including Joe Adonis, associated with the Genovese crime family, and Jersey Mobster James “Piggy” Lynch. The lake house closed in 1949.

United States — Nevada

Stacher entered Nevada’s gambling industry in 1950, when he purchased, likely at Lansky’s urging, Jack Sullivan’s one-third interest in the then-popular Bank Club, “one of Reno’s oldest and best known gambling casinos in Reno,” (Nevada State Journal, June, 30, 1950). Local Mobsters William “Bill/Curly” Graham and James “Jim/Cinch” McKay co-owned it.

After making the move versus before, as required by Silver State law, Stacher sought a gambling license from the state and the city. He boasted that if he ran into trouble getting those, he simply would pay what he needed to, up to $250,000 ($2.7 million today). to make it happen. Regardless, the Nevada Tax Commission denied him the requisite license, and, thus, he had to forfeit his Bank Club stake.

Stacher and Lansky also focused on Las Vegas. There, along with Costello, the two provided the capital for construction of the Sands Hotel and Casino, which debuted in 1952. Behind the scenes, Stacher ran the gambling there while someone else, Texas gambler Jake Freedman for one, was the front. Also on behalf of Lansky, Stacher allegedly was involved, too, with the casino at the Fremont, which opened in 1956.

“Doc Harris virtually ran Las Vegas with more access to its gambling cash than Howard Hughes has now,” O’Brian wrote in 1971 (Monroe-News Star).

Caribbean — Cuba, Haiti, The Bahamas

During the 1940s when gambling was legal in Cuba, Stacher ran various casinos there for Lansky. Part of his duties included getting payola to then President Fulgencio Batista. Stacher also allegedly had a hand in ensuring the success of Lansky’s casinos in Haiti and the Bahamas.

“Ultimately, he would become one of Lansky’s most valuable aides in the control of international casino gambling,” wrote Hank Messick in the biography Lansky.

——————————————–

* Stacher also went by these names: Joseph Rosen, Morris Rose, Morris Rosen, Doc Rosen, Joe J. Stein, J.P. Harris, Doc Harris, Doc Weiner, George Kent and Harry Goldman.

Sources

1936

A man walked into the Greenleaf & Crosby jewelry store in New York’s Rockefeller Center at about 11 a.m. on Monday, January 6. Two others followed through the other entrance. “This is a stickup,” one of them said.

He ordered the two salesmen there, Walter Gibson and Robert Mercadal, to sit and not turn their heads. With the other person present, a colleague from another company, he had his accomplices bind, gag and handcuff him to a table leg in the back room.

The thieves took from the cases the most valuable diamond pieces — one, a pendant, was valued at about $35,000 ($652,000 today). The trio got away with about $125,000 ($2.3 million today) worth of merchandise.

After the six minute long robbery, Gibson and Mercadal identified Frank Frost, by picking his photo out of mugshot books, as being one of the robbers and the trio’s leader, the one who gave the orders.

The Law Comes A-Calling

Three months later, Reno, Nevada police arrested Frost at his home on April 8 and confiscated an unloaded revolver they found in his wife Dorothy’s room. Before Frost went willingly and unarmed, he telephoned Jack Sullivan, the manager of the Bank Club casino, owned by local gambler-Mobsters William “Bill/Curly” Graham and James “Jim/Cinch” McKay.

Sullivan, a close Graham and McKay associate, arranged for an attorney for Frost (William McKnight) and raised and paid his $10,000 ($186,000 today) bail. A now free Frost was to be taken to New York to answer to charges there, but detectives couldn’t find him. Frost had chosen to hide such so that could stay in Reno for an upcoming habeas corpus hearing* that his attorney had requested and, simultaneously, protect his bail and stay out of jail. After some clever legal moves, Frost turned himself in and, again, was released on bail.

A Constructed Alibi?

At the hearing start on Monday, April 20, Frost kicked off a parade of about 40 people who would testify on his behalf. In contrast, the state of New York would present a single witness. The defendant recounted what he’d done up to, including and after January 6, 1936, the day of the heist, in which he claimed he hadn’t been involved.

Frank Frost

January 4: According to Frost, he and Graham left Reno’s Grand Central Garage in the morning and headed to Sacramento, California. They put chains on their vehicle’s tires in Truckee and later removed them at Baxter’s Camp. Once at their destination, they hung out at the Equipoise Club and stayed the night at the Senator Hotel.

January 5: Frost and Graham visited the Capital Clothing Company, where Frost bought three hats and, later, the two bet on some horse races. In the afternoon, they set out for Reno, first stopping on the way at the Rainbow Tavern and later at the Soda Springs Hotel for dinner with two of Graham’s friends. There, Frost phoned Dorothy to check in. Back in Reno, the men drove to Graham’s house, where Dorothy was staying with Graham’s wife. The Frosts drove in Graham’s car to the George Wingfield, Sr.-owned Golden Hotel, their place of residence at the time.

January 6: Frost walked to the Riverside Hotel to pick up some papers and while there, ran into Charles Mayer, a mining prospector with whom Frost had visited various properties. The two discussed possibly meeting up later to take another trip. Frost then went to the Bank Club, bet on a horse named Tamalpais racing at Santa Anita and when it won, collected his winnings. Afterward, he received the lease on a house he and Dorothy were interested in and later discussed it with rental agent, Maurice Burman. At night, Frost, back at the Golden, played cards in the bar room, and chatted with two men.

January 7: Frost signed the lease at Burman’s office, paid two months’ rent and applied for phone and electricity at the house. 

“Were you in New York on January 6,” McKnight asked him.
“No, sir,” Frost answered.
“Were you in New York any time after that?”
“No, sir.”

Graham testified next, saying he’d known Frost for years, having met him in New York. Frost had come to Reno in 1931 for the Baer-Uzcudun boxing match and, subsequently, the two met up a few times in San Francisco. Graham corroborated Frost’s account of their Sacramento trip and said he’d seen Frost at the Bank Club on January 6.

Next, six witnesses from California testified, at Graham’s request. He paid their expenses and even gave one an additional $20. The slew of others who took the stand collectively confirmed details Frost had testified to, and several reported having seen him at various times between January 4 and 7.

On the hearing’s third and final day, Gibson, one of the Greenleaf & Crosby salesmen, testified against Frost. He described the start of the robbery, saying, “I turned and faced him, and my eyes never left him. He directed me what to do — go over to a table and sit down,” he recalled (Reno Evening Gazette, April 23, 1936). Then “I was warned not to turn my head; what went on behind me was a matter of conjecture. My reaction [to the robbery] was not one of fear but was more of bewilderment— I was slightly stunned.”

When Gibson pointed out Frost in the courtroom, Frost interjected, “Look me in the eye when you say that. Look me straight in the eye.”

Gibson continued, “but it was apparent that he was very nervous. He spoke rapidly, and while he related his story, Foster continued to glare at the witness,” the Reno Evening Gazette reported (April 22, 1936).

After two hours of cross-examination by McKnight, Gibson looked right at Frost and said, “I know the man sitting before me is the man who came into the store that morning” (Nevada State Journal, April 23, 1936).

Judge Thomas F. Moran

The opposing attorneys presented their final arguments, and Judge Thomas F. Moran ruled. He made the writ of habeas corpus permanent.

“From the evidence introduced by some reputable citizens of Reno,” he said, “I am led to believe the petitioner was not in New York on the morning of January 6.”

“Frost’s extradition to New York was blocked by a habeas corpus procedure,” noted the Nevada State Journal (Sept. 11, 1953). “It was the first of several legal moves which in later years prevented numerous notorious figures from being returned from Nevada to other states to face criminal charges.”

Eventually, New York dismissed the charges against Frost. The federal government could’ve pursued the charge they previously had filed against him of fleeing across a state border to avoid prosecution of an alleged felony, but it didn’t.

Had Frost been involved in the robbery of Greenleaf & Crosby, he got off scot-free.

Shady Intervention For Frost

Seventeen years later, in 1953, Frost wanted to explain away to Nevada gambling regulators his prior arrests for carrying an unconcealed weapon and for the jewelry store robbery. Regarding the latter, he had in his possession a letter that Sullivan had obtained when recently in New York and, by happenstance, Cartier’s, the jewelry store where former Greenleaf & Crosby salesman, Gibson, now worked. The letter was written by Gibson and indicated when he’d identified Frost as one of the 1936 robbers, he’d mistaken him for someone else and was sorry for his error.

Frost explained to the Nevada State Journal that Sullivan, while in Cartier’s, mentioned he was from Reno, and this led to the subject of the robbery, Gibson volunteering he’d misidentified Frost and then him giving Sullivan the letter.

Underhanded Tit For Tat?

Why did Graham and Sullivan seemingly go out of their way to help Frost? Yes, they reportedly were friends, but the extent to which they went for Frost suggests something larger at play. Perhaps Graham and/or Sullivan had put Frost up to robbing the jewelry store. Maybe one or more people in the Reno Mobsters’ circle owed Frost, perhaps for one or more favors or unpleasant jobs he’d done for them.

Two mysterious events occurred in Northern Nevada that fit the timeline and that might’ve been the outcome of those favors.

Suspicious Vanishing Of Key Witness

The first was the March 23, 1934 disappearance of Renoite Roy Frisch, who was to be the prosecution’s primary witness in Graham and McKay’s upcoming trial for swindling investors out of thousands of dollars via the mail. Frisch was the head cashier at Wingfield’s Riverside Bank, through which Graham and McKay had made their exploitive transactions.

The duo’s initial mail fraud trial resulted in a hung jury. (The two would be convicted in their third trial in 1938 and would go to the U.S. Penitentiary, Leavenworth in August 1939.) The prevailing theory about Frisch’s going missing is that “Baby Face Nelson,” né Lester Gillis, friend of Graham and McKay, killed Frisch and disposed of his body. Perhaps, instead, Frost had been the actual perpetrator. Murder seemed to be part of his criminal repertoire. In 1934, Frost allegedly had been living in Los Angeles at the time, an ideal cover for Frisch’s disappearance as Reno police wouldn’t have known about Frost and, thus, wouldn’t have suspected he’d been involved.

Sketchy Demise Of Miner, Gambler

The other suspicious happening was the death of Reno resident Art Zeller, in his 50s, who never returned from a trip to meet up with Nevada prospector, Tom Dalton, and Dalton’s mining camp near Winnemucca Lake on March 16, 1936. Before he set out that Monday morning, he told Frank Golden, the manager of Wingfield’s Golden Hotel, where Zeller lived, where he was going and that he’d return in the afternoon. However, Golden didn’t notify police that Zeller was missing until 10:30 p.m. Thursday; by that time, he was dead already, it would turn out.

On Friday, Washoe County Sheriff Ray Root and others began searching for Zeller. They discovered his abandoned Buick about 500 yards northeast of Winnemucca Lake and noted its clutch was damaged. From there, they traced footprints, presumably Zeller’s, for 30 miles but lost the trail.

The sheriff discovered Zeller’s frozen body about 10 miles to the southeast of the lake on Monday morning. The lawman hypothesized that Zeller had gotten stranded in the deep sands, had begun walking southward but after a few miles, perhaps confused and/or lost, had started wandering, “the trail sometimes leading to the shore of the lake, and at other times far into the desert” (Reno Evening Gazette, March 23, 1936). Root calculated that Zeller had traversed about 55 miles on foot.

Among the expected items in his pockets — cash, car keys, notebook, etc. — was a small, unlabeled brown pharmacy bottle containing a few drops of amber-colored liquid. Had someone replaced his medicine with something that would render him confused or delirious or, worse, slowly take his life?

Though Root ruled out foul play and the coroner’s jury determined Zeller succumbed from exposure, his death didn’t make sense entirely. For one, he had several years of experience scouting out mining properties. Two, Dalton had given Zeller a detailed map of the route to his property, which included the mile count at every turn. Dalton also had warned Zeller about the sand, telling him his car had stalled in it two weeks earlier. Further, one could see the highway from the place Zeller’s car was found, Dalton said.

“If he had walked west for 17 miles, he would have gotten on the Gerlach Highway,” Dalton told the Reno Evening Gazette (March 27, 1936).

When Zeller died, Frost had been living in Reno for four months and hadn’t been arrested yet for the New York jewelry heist. Oddly, since the Chicago Mobster had moved to Reno, he’d taken regular trips to mining properties with Zeller’s partner, Charles Mayer. Why suddenly had Frost been so interested in mining?

At the time of his passing, Zeller had been funding the excavation of a tunnel on the Manitouwoc property south of Quartz Mountain in Nevada’s Nye County. In the early 1920s, Wingfield, a miner, too, had expressed interest in Quartz Mountain after a new silver-lead discovery had been made there. That reportedly had led to a mad rush to the area, but mining had been short-lived because the deposit had been deemed shallow. Had Wingfield wanted Zeller out of the picture for some reason related to Manitouwoc or to mining?

Zeller also had been running roulette at Incline Village’s Cal-Neva Lodge, then owned by Graham and McKay and the casino run by Northern California Mobster, Elmer “Bones” Remmer. Police discovered a roulette wheel rigging device and a large opium supply in Zeller’s hotel room after his death. Had Zeller been murdered over something to do with gambling or drug dealing?

———————————————–

* A writ of habeas corpus, which translates in English to “produce the body,” is a court order mandating that an official, such as a warden but in this case, the Washoe County district attorney, deliver an imprisoned individual to the court and show a valid reason for their detention.

Photo from Pond5.com: Diamonds by ivan_kuprevich

Sources

Canada-born Jack Sullivan, né John D. Scarlett, had co-owned and run the Bank Club for two decades and prior to that, the Willows (it burned down in 1932) — both Reno, Nevada casino hotspots. He’d retired a mere six months before his death at age 72. He passed away on April 24, 1951 in a local hospital after a prolonged illness.

He left behind an estate valued at $844,952.00 (about $8 million today) and comprised of these assets:

TYPE	AMOUNT	BREAKDOWN
Cash:	$431,165.85
		$202,951.49 in a commercial account at Security National Bank
		$191,148.00 in a safety deposit box at First National Bank of Nevada
		$20,624.40 at the Bank Club
		$12,381.96 in a business account at a different FNB branch
		$4,060.00 in interest and dividends on investments
Bonds:	$245,893.45
Stocks:	$104,662.70
Loan Balance:	$25,000.00	(Amount due on loan he'd made to the Cal-Neva Lodge in 1948)
Miscellaneous:	$21,380.00
		$10,000.00 Diamond ring, 7 carat
		$4,500.00 Cadillac
		$6,880.00 Other
Real Estate:	$16,850.00
TOTAL:	$844,952.00

Post Mortem Withdrawals

The executor of Sullivan/Scarlett’s estate, First National Bank of Nevada, paid the federal taxes due, which amounted to $121,442.82. This reduced the estate value by 14 percent, to $723,509.18.

Then they paid the legal fees for the settling the estate, which totaled $65,307.16:

$42,619.40 went to Woodburn, Forman and Woodburn, the executor’s counsel
$17,187.76 went to FNB as a statutory commission
$3,500.00 went to Joseph P. Haller, the widow’s attorney
$2,000.00 went to McCarran, Rice, Wedge and Blakey, the heirs’ law firm

These expenses further reduced the estate’s value, by 9 percent.

What remained of Sullivan/Scarlett’s estate was $658,202.02 (about $6.3 million today).

Distribution Of Wealth

Sullivan/Scarlett left a will, which had been created in 1948, three years before his passing. He’d bequeathed the following:

To his widow: Half of all community property and the remainder of the estate after the other commitments were paid; the latter came to about $130,000.

To his daughter: $200,000. Held in a trust, the money was to be invested in U.S. government bonds and she was to be paid $400 a month from the investment returns until age 50. At that time, the trust was to be liquidated and the principal paid to her. 

In the event of her passing, the money was to be distributed equally to Sullivan/Scarlett’s three grandchildren once the eldest reached aged 21.

To his four sisters: $10,000 each.

Scarlett had left nothing to his brother, noting in the will that he’d provided for him when Sullivan/Scarlett was alive.

By year’s end, the gambler’s estate had been disbursed.

Sources

Photo from the University of Nevada, Reno Special Collections

Presumably to gain money, power and notoriety, a small clique of men monopolized gambling in Reno, Nevada during the 1920s and 1930s through violence, payoffs, intimidation, threats and other gangster techniques. The industry mostly was illegal, with some games allowed, until 1931.

The syndicate’s modus operandi became the example of how it was done in Nevada, a guide for their mobster friends who, later, would rule gambling in Las Vegas.

Along with games of chance, the Reno Mob offered endless alcohol during Prohibition and sex for sale. The hotbed of vice that was The Biggest Little City, along with a relaxed divorce law, spurred tourism long before Vegas became the state’s largest metropolis and took over as that industry’s leader. Further, with their dollars (and perhaps coercion), the racketeers were instrumental in getting gambling legalized in Nevada.

George Wingfield

The Strings Puller

George Wingfield, Sr. (born 1876): The man with the vision (and gobs of money at the time), he initially orchestrated the launch of illegal gambling in Reno, choosing the few men to effect his plan, getting them trained in casino operations and having them run games in town. Wingfield wanted the buildings he owned to be filled and believed the offer of gaming in them would achieve that end. Although he, himself, was a savvy card player, he needed what he believed to be a cleaner image to carry out his other pursuits, such as politics.

Bill Graham

Jim McKay

The Deadly Duo

James “Jim/Cinch” Carmichael McKay (born 1888) and William “Bill/Curly” James Graham (born 1888): After meeting in Tonopah, McKay and Graham became fast friends and crime partners. Wingfield had them learn the gaming business at one of his and Abelman’s casinos, The Big Casino in Tonopah, before he summoned them to Reno in the 1920s to establish illegal gaming there. While maintaining a thin allegiance to Wingfield, the pair quickly plotted their own course, which would, for starters, involve launching their own casino (Willows) and brothel (Stockade).  

William Justi

The City Councilman

William A. Justi (born 1873): Justi was the councilman for Reno’s liberal Third Ward, in which most casinos were located, between 1923 and 1944. He also was the council’s police committee chairman for a number of years. In those two roles, he could and did act on behalf of McKay and Graham, who allegedly owned him.

The Loyal Associate

Nathan “Nick” Abelman (born 1876): Abelman was Wingfield’s willing, sensible and most law abiding partner throughout the years. When he made Wingfield’s acquaintance in Goldfield, Nevada in 1904, he already had experience running saloons in the Midwest. Abelman went on to co-own, with various partners, numerous gambling enterprises.

The Willing Henchmen

These Reno Mobsters had a few, trusted men who worked at their various Northern Nevada casinos — Willows, Bank Club, Rex, Cal-Neva Lodge, Haymarket, Monte Carlo, Country Club — overseeing the gaming, ejecting troublemakers, assaulting cheaters, encouraging debtors to square up and the like. They also did other dirty work, such as menacing competitors and delivering graft. They were:

Jack Sullivan

Bones Remmer

Elmer “Bones” F. Remmer (born 1898): Jokingly called “Bones” due to his ample size, Remmer grew up in the Bay Area of Northern California. He was mean and feared. Seemingly more entrepreneurial than Sullivan and Hall, Remmer would go on to co-own the Cal-Neva Lodge, run several casinos and clubs on San Francisco Bay’s east and west sides and become embroiled with both Jewish-American, Italian-American and other mobsters.

Jack Sullivan né John B. Scarlett (born 1879): A professional boxer in his youth, Sullivan “was a large man with a brusque manner and an intimidating personality,” wrote Dwayne Kling in The Rise of the Biggest Little City. He moved to Reno from Tonopah with friend Henry “Tex” Hall in the 1920s. He would help open and run the Willows then own a portion of and operate Bank Club, both popular Reno casinos.

Henry “Tex” Hall (born 1878): A cowboy from Texas, Hall worked as a manager at several Graham-McKay casinos, including the Cal-Neva Lodge, of which he came to own a piece.

The Reno Mob’s dominion began to ebb when crises arose during the 1930s — financial ruin for Wingfield and prison terms for McKay, Graham and Hall.

The Business Model

These were the Mobsters’ 5 main tenets behind running unlawful gambling:

1) Pay Bribes: They paid whatever graft necessary — to members of the police force and sheriff’s office, the mayor, at least one city councilmember and some higher-level politicians — to continue their reign obstacle free. In return, they were permitted to serve alcohol until 1933 when Prohibition ended and offer gambling until 1931 when Nevada legalized it. In the instances they landed themselves in a legal bind, rare because they were generally protected from such occurrences, the officials in their pockets made the trouble go away.

2) Limit the Competition: The quartet decided who, if anyone, could open their own gambling enterprise in town. It usually had to be someone that at least one man in their group knew and/or would vouch for. If approved, however, the mobsters imposed stipulations, such as limits on the quantity or type of gambling offered. They demanded payments for being allowed to operate — 15 percent of the profits.

The gangsters were especially ruthless with men and women who opened shop without asking their permission beforehand and/or after they’d been warned to do so. In those cases, the four would  worm their way in and usurp the operation for themselves or, via threats, destruction of property and intimidation, they’d drive the proprietors out of their businesses and even out of town.

3) Do Whatever It Takes: The existence of laws didn’t deter the group, especially McKay and Graham, when they desired something. They exercised free will always and carried out (or, most often, had someone else carry out) whatever was necessary to remain on top in Northern Nevada’s gambling world. 

“Both were equally ruthless players within and outside the limits of the law,” wrote the authors of Baby Face Nelson about McKay and Graham.

4) Don’t Tolerate Cheating: McKay and Graham had no qualms about mangling and bloodying the bodies of cheaters, both customers and dealers, as punishment. Ironically, the zero tolerance rule didn’t apply to them; they ran various scams on primarily unsuspecting tourists, bilking them for fortunes at a time.

5) Reward Underling Loyalty:  The four acknowledged their subordinate’s obedience and solid work performance by affording them an ownership stake in one of their casinos.

Sources

Photos of McKay, Graham and Sullivan: from the University of Nevada, Reno’s Special Collections
Photo of Wingfield: from the Nevada Historical Society

Teletypewriters

1940-1941

In a series of raids in December 1940, Washoe County deputy sheriffs confiscated gambling-related paraphernalia from three Reno, Nevada locations:

1) Bank Club casino

2) Washoe Publishing Company (WPC) (room 311 in the Lyons Building)

3) Western News Company (WNC) (room 15 in the Fordonia Building).

The equipment taken included teletypewriters,* Teleflash** units, telephones, switch boxes, typewriters and a radio. Documents seized were racing forms and sheets, forms for recording wagers, client phone numbers and account records, and more.

Unlawful Business Segment

These three enterprises received and distributed horse racing information — entries, betting odds, parimutuel prices, results and the like — to western United States locales.

The problem was that bookmaking, pool selling (the selling or distribution of chances in a betting pool) and dissemination of horse race data were against Nevada law. All gross misdemeanors, each carried a penalty of a $500 to $1,000 fine ($9,000 to $18,000 today), imprisonment of one to six months or both. Betting on horse races held in Nevada, however, was legal.

Two information streams involving the Reno businesses occurred regularly:

1) Data from the East Coast were teletyped to the Bank Club, which then phoned them to the WPC. From there, they were forwarded to 900 bookmaking/pool selling places in Nevada, California and Washington.

2) Data from the West Coast were teletyped to the WNC, which passed them on to the Bank Club and Reno’s Palace Club. The flow then continued from the Bank Club as with the East Coast info.

Steps To Eradication

Washoe County District Attorney (D.A) Ernest S. Brown filed a charge of illegal distribution of horse racing info against Bank Club Inc. and eight people, including Jack Sullivan and Raymond J. Poncia.

Sullivan (né John D. Scarlett) was the Bank Club manager and co-owner with mobsters William “Bill/Curly” J. Graham and James “Jim/Cinch” C. McKay, who were serving time in the U.S. Penitentiary, Leavenworth in Kansas at the time for conspiracy and using the U.S. mail to perpetrate fraud. Poncia was the casino’s book operator. The other defendants were linked to the WPC and WNC.

Brown also had phone service to the three entities disconnected and ordered the Bank and Palace Clubs to cease bookmaking immediately due to it being a public nuisance. The gambling houses complied.

The D.A. clarified that the county’s efforts in this regard were to “‘clean up’ a condition which gave Reno a bad name throughout the West,” not to quell horse race wagering, reported the Nevada State Journal (Dec. 2, 1940).

Ultimately, Sullivan and Poncia were arrested but released on $1,000 bail ($18,000 today) apiece.

Gambling Law Revisions

Roughly a year later, in April 1941, the Nevada Legislature legalized both bookmaking and betting on horse races occurring outside of the state. Once that occurred, the Bank and Palace Clubs restarted their bookmaking operations. Distributing horse race information, however, remained illegal.

The Defendants’ Fate

Later in the month, a hearing took place on the demurrer and motion to dismiss the charges against Sullivan and Poncia filed by their attorneys, George B. Thatcher and William Forman. (A demurrer is a response in a court proceeding in which the defendant acknowledges the truth of the allegation but claims it isn’t sufficient as a cause of legal action.)

Before Judge Benjamin F. Curler Jr. in district court, Forman asserted:

• the facts didn’t constitute a public offense
• the alleged offense fell outside the jurisdiction of Nevada’s Second Judicial District Court
• the horse race info law was unconstitutional in that it encompassed a topic not in the title
• the same law interfered with the freedoms of speech and the press.

Brown countered all of the defense’s points. He requested the judge overrule the demurrer and a preliminary hearing scheduled. Forman then responded to Brown’s arguments.

Six days later, Curler delivered his ruling. He ordered the charge against the two men and Bank Club Inc. be dismissed and the bond they’d paid returned.

—————————-

* A teletypewriter, teletype for short, was a character printer connected to a telegraph. Teletype also was a brand of teletypewriter.

** Teleflash was the brand name for a system that provided radio-type broadcast programming to commercial entities via telephone lines versus airwaves.

Sources