1951

Gambling is the lifeblood of organized crime.

This was U.S. Senator Estes Kefauver’s conclusion after the Special Committee on Organized Crime in Interstate Commerce, which he headed, concluded its investigation.

The Kefauver Committee’s work, in part, involved conducting hearings in 14 U.S. cities, during which they grilled (sometimes, unsuccessfully) about 600 witnesses, including big-time Mobsters, some of their associates and officials knowledgeable about Mob activity. The 15-month query shone a spotlight on gambling taking place at the time and for years before, most of it illegal, prohibited by law in most states.

The hearings were televised, and Americans tuned in, rapt. The broadcasts opened their eyes to the who, what,  where, when and how of gambling and other organized crime happening all around them. By March 1951, 72 percent of U.S. residents were familiar with the Kefauver committee and what it was doing.

Crackdown On Some Gamblers

As a result of the Senate committee’s findings, Kefauver recommended the federal government impose a 10 percent tax on all gambling. At the same time, U.S. residents, facing a likely federal personal income tax increase, expressed dissatisfaction at gambling operators (gamblers) paying little or no taxes on the loads of cash they made.

These two factors in large part pressured Congress to act, and it did in 1951 but not to the extent Kefauver had suggested. It imposed two taxes* on a subset of gamblers, individuals who received bets from people — bookmakers, numbers writers, and punch board and lottery operators.

The goal was to force these people to pay heavy taxes or go out of business, and in doing so, shrink the  gambling industry nationwide and generate a good chunk of revenue for the U.S.

Trio Of Mandates

One of the new federal levies, called the tax on wagers, was 10 percent of all gross receipts.

The other was an occupational tax, often referred to as the gambling stamp tax. It required wager takers to buy a special tax stamp every year by December 1 and display it in their place of business or, for those without such a location, on their person. The stamp cost $50 (about $525 today).

Anyone required to pay the special tax also had to register with the local Internal Revenue Bureau (IRB) collector and provide their name, home and business addresses and the name and home address of their partners, employees and clients. Once the bureau received the information, it provided a copy to local law enforcement officials and maintained its own public list of all gambling stamp purchasers.

These wagering-related taxes went into effect on November 1, 1951.

Failure To Comply

The penalty for not purchasing the $50 tax stamp was a fine of at least $1,000 ($10,300 today) but not higher than $5,000 ($51,500 today).

Gamblers who had a stamp but didn’t display it were fined, $50 for those who’d forgotten to do so and $100 for those who outright refused to do so.

Providing false information on the relevant forms was punishable by up to $10,000 in fines and five years of imprisonment.

Regarding the 10 percent tax on wagers, IRB Commissioner John B. Dunlap told the United Press that “cases of willful evasion or attempt to defeat the tax will be promptly referred to the department of justice with recommendation for criminal prosecution” (Nevada State Journal, Dec. 5, 1951).

Early Stamp Numbers

By the first deadline, December 1, 1951, a total of 7,706 gamblers had applied for the federal gambling tax stamp. The state of Washington submitted the most applications, at 1,412. Next was Montana, with 902. Nevada, where gambling was legal and wide open, accounted for only 33 applications.

It wasn’t long before problems with these latest federal taxes arose.

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Look for Part II next week.

* Congress enacted the two taxes on wage takers through the Revenue Act of 1951, which also temporarily raised federal individual income and federal corporate taxes.

Sources

With their involvement in Nevada casinos behind them, Silver State residents, Clifford “Cliff” A. Jones and Jacob “Jake” Kozloff, together accrued a string of gambling enterprises in and around South America.

Who They Were

Kozloff (1901-1976), was a Russia-born businessman who’d owned the Lebanon Valley Brewing Company in Pennsylvania for two decades. He’d sold it and moved to Las Vegas in the late 1940s. There, he’d invested in various hotel-casinos over the ensuing years, including the Thunderbird, Frontier, Golden Nugget, Royal Nevada and Hacienda.

Missouri-born Jones (1912-2001) was an attorney, had founded the Jones, Jones Close & Brown law firm and had been the lieutenant governor of Nevada between January 1947 and December 1954. He’d held interests in Las Vegas resorts, including the Last Frontier Hotel, Lucky Strike Club, Pioneer Club, Westerner Club and Silver Palace.

Kozloff

Jones

Driving Forces

Both men had a reason to focus on opportunities outside of the U.S. Regarding Jones, the Nevada Gaming Commission in 1958 made him (and other Nevada gambling licensees in a similar situation) choose between his Nevada and his international holdings. (Then, Nevada law disallowed simultaneous ownership of gambling enterprises inside and outside Nevada). Jones divested of his domestic holdings and kept the one he held in Cuba, the Havana Hilton casino, until Fidel Castro became Cuba’s prime minister. At that time, in January 1959, Castro closed all of the country’s casinos, kicking out all of the Americans, many of them Mobsters, who owned and ran them.

As for Kozloff, Nevada’s gaming regulators had denied him a state gambling license in 1956.

New Casino Ventures

In four years’ time, doing business as Caribbean American Investment Inc., a Liberian corporation, partners Jones and Kozloff added the gambling concessions at four international casinos, all in different countries, to their holdings. They were as follows.

1958: HAITI

The duo first had success in Haiti, when, in 1958, government officials asked them to run the Casino International in Port-au-Prince. Kozloff and Jones became the casino’s primary shareholders. According to their gambling agreement, the Nevadans got 60 percent of the gross casino revenues, the Haitian government got 20 percent and the rest went toward maintenance.

“Since putting new life in Haiti’s government-owned casino, [Kozloff and Jones] announced plans to enlarge their horizon to include a chain of gambling parlors strategically placed throughout the tourist-popular West Indies,” reported The Miami Herald (March 15, 1959).

Casino International

1959*: ARUBA

Caribbean American Investment next garnered the casino concession at the new, $5 million Aruba Caribbean hotel sited on the white sands of the island’s Palm Beach. New York architect, Morris Lapidus, who’d designed many Miami Beach buildings, designed the property for owner Condado Caribbean Hotels Inc. This Chicago-based company also owned the Executive Hotel in the Windy Cindy, eventually the headquarters of James “Jimmy” R. Hoffa’s International Brotherhood of Teamsters.

Aruba Caribbean

“[Aruba] is being called the new Cuba at the Caribbean, since many Americans who previously  wintered in Cuba are now visiting Aruba to take advantage of the island’s miles of white beaches, its new hotel accommodations and the ever-popular gambling casino at the Aruba Caribbean Hotel,” reported The Salt Lake Tribune (Jan. 29, 1961).

1960: ECUADOR

Early in the following year, Jones and Kozloff expanded into Ecuador. They landed the gambling concession at the just built, elegant 250-room Hotel Quito located in and named after the country’s capital. At the resort designed by U.S. architect Charles McKirahan in a modernist style, the casino offered an array of games, including craps, blackjack, chemin de fer, poker, roulette and slot machines.

“The most popular feature of the hotel to the guests was the casino, operated on a high level by operators from Las Vegas,” Garth C. Reeves wrote in The Miami Times (Dec. 8, 1962).

Hotel Quito

1962: SURINAME

In 1962, Caribbean American Investment added to their portfolio a fourth casino, located at another new hotel. That one was the 80-room Torarica Hotel-Casino on the river in Paramaribo, the capital of Suriname,** formerly Dutch Guiana. Chicago’s Condado Caribbean Hotels also built and owned this property.

As for all of the above gambling opportunities, the two Nevadan gambling entrepreneurs never pursued them, Kozloff told The Miami Herald. Rather, officials in the various countries sought out him and Jones and proposed that the duo take on their casinos.

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* In 1959, before Aruba, it appeared as if the Puerto Rican government was going to grant the gambling concession at the new Barranquitas resort to Caribbean American Investment, but, ultimately, it decided against it.
** Until January 1978, the country’s name was spelled “Surinam.” Now, it’s spelled “Suriname.”

Sources

Calvin Kovens

1924-1995

A Miami, Florida businessman and convicted felon, involved with at least one Nevada casino in the 1960s, later got special consideration from President Richard M. Nixon.

Gambling History

Calvin Kovens bought The Sierra Tahoe hotel-casino in 1966, defying Nevada gambling authorities’ order that he not become involved with the resort. He acquired the property with a James “Jimmy” Riddle Hoffa-approved loan from the Central States, Southeast, Southwest Areas Pension Fund of the International Brotherhood of Teamsters.

Having debuted in 1964, The Sierra Tahoe comprised a set of buildings, one on Lake Tahoe’s shore, the other across the street, in Incline Village. After several iterations, the property became the Hyatt Regency Lake Tahoe Resort, Spa and Casino.

Kovens made an undesirable gambler, in the eyes of the Nevada Gaming Commissioners, as he was Mafia connected, was twice convicted of crimes and was due to serve prison time pending appeal. Though he couldn’t get a Silver State gambling license as a result, he remained the landlord of The Sierra Tahoe for three years. (During that time, he renamed the hotel Lake Tahoe Hotel, and lessor of the casino Arthur “Art” L. Wood renamed the gambling house Incline Village Casino.)

In 1968, the Nevada Gaming Control Board suspected Kovens had a hidden interest in the Carousel Casino in Las Vegas. He denied it, and the agents couldn’t prove it.

Criminal Background

Born and raised in Baltimore, Maryland, Kovens served in the U.S. Army during World War II and moved to Miami in the early 1950s. Later in the decade, he launched two commercial real estate businesses: Ruedd Inc., a development company, and Cal Kovens Construction Corp., a building firm.

In 1962, he was fined $12,000 ($103,000) and placed on probation for loan fraud. He’d used Federal Housing Administration financing earmarked for a Miami shopping center for other purposes.

Subsequently, he became an expediter for the Teamsters pension fund. In 1964, he, as well as Hoffa and six others, was found guilty of mail fraud (five counts) and wire fraud (one count). The group had been providing false or inflated information to obtain loans as well as requiring and pocketing kickbacks. Kovens was sentenced to three years in federal prison and a $5,000 ($42,000 today) fine. (Hoffa got five years and a $10,000 fine).

Tit For Tat?

After remaining free for seven years, Kovens began his three-year stint at the minimum security Federal Prison Camp, Elgin in Florida. After his first parole request was denied in June 1971, he allegedly came down with a fever and “symptoms of heart difficulty,” for which he was hospitalized (Sunday Gazette-Mail, June 16, 1974).

Consequently, in December, the parole board, in a unanimous vote, granted Kovens the early release date of May 1, 1972 due to his supposed medical condition. By then, he would’ve served 15 months.

Three days later, Nixon ordered Hoffa be released from the U.S. Penitentiary, Lewisburg in Pennsylvania.

About a week later, former Senator George A. Smathers (D-Fla.) intimated to Charles “Chuck” W. Colson, White House office of public liaison director, in a phone conversation that Kovens should be freed., Smathers relayed to Colson the following dialogue he’d had with Charles “Bebe” G. Rebozzo, a close Nixon friend (The Breaking of a President, 1975):

Smathers: “Bebe, It looks to me that this would be a pretty good thing to do. [Kovens is] the most popular Jew in Dade County, South Florida. … This I know would at least give the president, and those who are going to help in this area, a very strong basis for going to the Jewish community and saying: For God’s sake, the one guy that went to bat for him was the president.”

Rebozzo: “I think [Nixon] ought to do it.”

Smathers: “I agree. There’s no negatives on this; it’s all pluses. … I’m sure the president can do it, and I’m sure, actually, [parole board] Chairman George Reed would probably approve of it.”

Colson sent to White House Counsel John Dean a transcript of this phone call with Smathers with the note: “The attached is much too hot for me to handle. … Obviously, [Smathers] makes a very good point, and I would assume if there is anything we can do properly, we should. On the other hand, in view of the personalities involved here, I would think this has to be handled with extreme care.”

Kovens got paroled eight days later, on Jan. 6, 1972. He’d served 11 months of his 36-month sentence. He was 47.

“The past and present chairmen of the parole board in Washington denied contact or behind-the-scenes pressure in the release of Kovens,” reported The Daily Review (April 9, 1974).

Shortly thereafter, Kovens delivered $30,000 ($187,000 today) in cash, reportedly a campaign contribution, to John Mitchell, Nixon’s campaign manager.

Referring to this secret donation and financier Robert L. Vesco’s $200,000 cash payment, columnist Andrew Tully wrote, “If you think these cash transactions have a Mafia flavor, you said it, I didn’t” (Albuquerque Journal, Oct. 9, 1973).

A new law required that Nixon disclose all campaign monies he’d received and from whom, however, he left Kovens’ $30,000 off of the list.

End Of Life

The ex-convict lived another 23 years as a free man, until February 1995, when he passed away, not from cardiovascular disease but from complications related to myelodysplastic syndrome, a type of bone marrow disease that may evolve into cancer. He was 70.

In his obituary he was lauded for his philanthropy, including having raised $20 million for Miami’s Mount Sinai Medical Center and $5 million for Florida International University. Among numerous other honors, the Miami Beach Chamber of Commerce named Kovens Man of the Year in 1990, and the Florida International University and Tel Aviv University awarded him honorary doctorates.

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Sources

1944 stock certificate signed by Pat Mooney

1940-1953

In 1946, Pat Mooney, chief field deputy of the Nevada Internal Revenue (IR) Bureau office, made gambler-Mobster Elmer “Bones” F. Remmer* an offer he couldn’t refuse.

If the gambling club owner purchased $52,400 ($699,000 today) worth of shares in the Mountain City Consolidated Copper Co. (MCCCC) then his 1945 federal tax debt in that same amount would be erased and prosecution avoided. Mooney would prepare Remmer’s tax return to ensure that be the case.

The Bay Area-based racketeer accepted. Remmer paid $2,400 ($32,000 today) for 6,000 shares at $0.40 apiece.

Like him, hundreds of other California and Nevada and business people, including convicted abortionist Gertrude Jenkins of San Francisco, took a similar deal over the previous handful of years. Here are some of The Silver State gamblers who did so between July 1943 and May 1946 and what they paid:

These and all of the other people who bought MCCCC stock had tax problems that disappeared subsequently.

Mining Misrepresentations

Along with Mooney, the key perpetrators of the scam were Ernest M. Schino, chief field deputy for the tax bureau in Northern California, and Martin Hartmann, an ex-con turned MCCCCC sales agent. They told prospective shareholders that the corporation owned a reputable, producing copper mine sitting on valuable property that included 14 mining claims, a mill site and water rights. They touted the fact that the land adjoined that of the producing Rio Tinto copper mine in Nevada’s Elko County, owned by Anaconda subsidiary Mountain City Copper Co., a different entity from MCCCC. 

In reality, MCCCC didn’t have a working mine. The company had no value, and, thus, the stock was worthless. The property was nothing more than “a rathole in Nevada,” Frank Dwyer of the San Francisco Stock Exchange told the San Francisco Examiner (Aug. 29, 1950).

Mooney founded and incorporated MCCCC in 1937, allegedly spent $137,000 on some work there, including a geophysical survey of the land and some underground work in 1944, but that was all. By 1950, MCCCC had about 600 shareholders, a major one being Robert L. Douglass, an IR collector in Nevada.

Compounding The Crime

As promised, Mooney calculated and filled out Remmer’s tax returns not just for 1945 but for all of the five years between 1942 and 1947, a violation of IR regulations. Specifically, the bureau’s employees were prohibited from doing any work that could affect a person’s tax liability and/or from moonlighting in any capacity in which their personal and professional interests would conflict.

Scandal Sees Sunlight

In early 1950, the San Francisco Examiner exposed the IR scheme and the workers involved. Subsequently, William A. Burkett testified before Senator Estes Kefauver’s United States Senate Special Committee to Investigate Crime in Interstate Commerce in San Francisco in November 1950, telling them what he knew about it.  He previously quit his position as the IR intelligence chief for Northern California after his department ignored his reports on the MCCCC stock extortion in what he alleged was a coverup.

“The Internal Revenue office hearing [before the Kefauver Committee] showed … that established law enforcement and investigative officers were in many cases the exploiters rather than the exploited in their relationships with the underworld,” William Howard Moore wrote in The Kefauver Committee and the Politics of Crime, 1950-1952.

Probe, Legal Action Ensue

After an investigation by East Coast U.S. Treasury agents into related tax cases going back to 1940, the federal government pursued a lawsuit against Mooney, Schino and Hartmann for a single extortion case, the one involving Jenkins, the abortionist, who purchased $5,000 worth of MCCCC shares. By this time, Mooney was 81 and retired, Schino was 55 and fired. Hartmann was 63.

A federal grand jury indicted the trio for attempting to defraud the U.S. government by attempting to obstruct the IR bureau’s prosecution of Jenkins for income tax evasion.

Ralph Read, head of the IR bureau’s intelligence unit in San Francisco, said that his team, after investigating the Jenkins case years earlier, concluded “there was nothing involving any Internal Revenue personnel” and “there was nothing in the nature of solicitation of a bribe or any act to influence an Internal Revenue officer” (San Francisco Examiner, Aug. 30, 1950).

In early 1952, federal prosecutors tried Mooney, Schino and Hartmann together. A jury found all three guilty.

Schino and Hartmann appealed the ruling, but in December 1953, the Ninth U S. Circuit Court of Appeals upheld it. Schino’s sentence was two years in prison, Hartmann’s was two years in prison plus a $5,000 ($49,000 today) fine. Mooney got two years’ probation and a $5,000 fine.

As for gambler-Mobster Remmer, he later was convicted of federal tax evasion and sentenced to a $20,000 ($194,000 today) fine and five years prison, of which he served 2.5.

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* Remmer’s gambling houses included the Cal-Neva Lodge at Lake Tahoe in Crystal Bay, Nevada; and in California, the Menlo Club, 110 Eddy and B&R Smokeshop in San Francisco; the 21 in El Cerrito; and the Oaks Club in Emeryville.

Sources

1919-Today

The now infamous Joseph “Joe” Conforte, known for having owned the Mustang Ranch brothel and having fought for the legalization of prostitution, both in Nevada, found himself behind bars there in fall 1960.

The avid gambler officially asked for a reprieve from his 25-day jail sentence so he could wager on the outcomes of the elections to be held in about five days. That year’s highlight was the contest between John F. Kennedy (Dem.) and Richard M. Nixon (Rep.) for U.S. president, but Conforte was concerned more with the local races as the winners could affect his business, status and dreams, either positively or negatively.

The impasse to Conforte getting his way, though, was that election betting was illegal in The Silver State, where he resided. He thus was told.

“No kidding!” he responded.

Like the controversial businessman, many others, before and after him, erroneously assumed that given Nevada’s pro-gambling history, it allowed political betting. In fact, the state first prohibited such activity in 1919 on the grounds that it could, and likely did, influence election results.

That ban, originally part of the state’s election laws and subsequently added to the Nevada Revised Statutes in 1960 as NRS 293.830, reads, “Any person who makes, offers or accepts any bet or wager upon the result of any election, or upon the success or failure of any person or candidate, or upon the number of votes to be cast, either in the aggregate or for any particular candidate, or upon the vote to be cast by any person, is guilty of a gross misdemeanor.”

Even though the ban had been in effect since 1919, it often wasn’t enforced in the 1900s’ first half, such as in 1932, one year after Nevada legalized most forms of gambling (but not political betting). That year, Franklin D. Roosevelt (Dem.) and Herbert Hoover (Rep.) were at odds (no pun intended) for the presidential bid. In early November, the local gambling houses had $15,000 ($285,000 today) in various wager offers on their boards.

“Despite the law, the betting fever is apparent everywhere, particularly in the gambling halls of Reno where those with the courage of their convictions merely have to offer any sum of money for any type of bet desired,” reported the Mason Valley News (Nov. 4, 1932).

Outside Of Nevada

For most of the rest of the United States, election betting was outlawed by the federal government via the Professional and Amateur Sports Protection Act, or Bradley Act, which went into effect on Jan. 1, 1993. Along with Nevada, three other states — Delaware, Texas and Oregon — were exempt from PASPA because they already had gambling laws in place that disallowed political wagering.

Only Option Available

Today, the only way for people in the States to put money down on the country’s election results is via an online bookmaker located overseas, such as MyBookie.com and BetOnline.ag.

At both online gambling sites, as of Oct. 28, 2020, Joe Biden (Dem.) was favored over Donald Trump (Rep.) to win the Nov. 3 presidential election. These were the odds:

MyBookie.com
Joe Biden (-170)
Donald Trump (+130)

BetOnline.ag
Joe Biden (-210)
Donald Trump (+180)

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Illustration from Pond5: “Election Concept” by Chris Gorgio

Sources

Bones Remmer

An unpleasant, self-described “big gun,” Elmer “Bones” F. Remmer was “once one of the San Francisco Bay Area’s flashiest and most successful gambling czars,” having owned numerous clubs in which he offered illegal games of chance, noted the Oakland Tribune (June 12, 1963). Before solely working in Northern California, Remmer worked in Northern Nevada for the Wingfield syndicate, the local Mobsters who then controlled gambling there.

He likely is most associated with his Menlo Club in San Francisco, which he operated during the 1940s, and the Cal-Neva Lodge at Lake Tahoe in Crystal Bay, Nevada, which he ran in the 1930s in association with the Wingfield Syndicate. He also owned, during the 1940s, the 21 Club in El Cerrito, the Oaks Club in Emeryville, and the 110 Eddy and B&R Smokeshop in San Francisco — all in California.

Here are 10 true tidbits about Remmer:

1) He was shafted by “It Girl,” actress Clara Bow in September 1930, when she stopped payment on three checks totaling $13,900 (about $198,000 today), which were meant to cover the gambling debt she’d racked up at the Cal-Neva Lodge. (This was even after he’d gifted her with a bottle of whiskey when she’d arrived at the property.)

2) His wife divorced him the following month on grounds of physical and other cruelty. She claimed she’d given Remmer $15,000 ($220,000 today) to buy into the Cal-Neva Lodge and quoted him as telling her, “I got so much publicity out of Clara Bow’s bum checks that now I know everyone and am hobnobbing with the elite. You’re no help to me now — just a detriment.” In the divorce settlement, Remmer had to pay her $15,000 ($270,000 today) in cash and $150 ($2,700 today) per month as alimony.

3) Remmer freely paid off state and local politicians to ignore his illegal gambling operations in the Golden State’s Bay Area. For one, he donated $170,000 ($1.9 million today) in campaign contributions to California Attorney General Frederick “Fred” N. Howser.

4) He was arrested and charged with intoxication, along with three others, following a drunken fight in the Encore bar-restaurant in West Hollywood one early morning in December 1950. The other brawlers were Edmund M. Scribner, a Bakersfield gambler who’d worked for Remmer before; Thomas J. Whalen, St. Louis gambler, and his companion, actress Vici Raaf.

5) While in police custody following the melee, he was served by federal agents with a subpoena, which he’d been dodging, to testify at the upcoming Kefauver Committee hearing. During the hearing in 1951, Remmer couldn’t be found, as he allegedly was waiting it out in Mexico, and never testified. One that threat was gone, he returned to Northern California.

6) Remmer went to trial twice, in 1948 and 1949, in San Francisco for operating illegal gambling houses and using business fronts to do so. Both cases ended in hung juries.

7) Jury tampering was alleged during Remmer’s first tax evasion trial in 1951-1952. An outsider, who claimed to know Remmer, approached and suggested to one of the jurors he make a deal with Remmer, insinuating Remmer would pay for a vote in his favor. The juror refused and notified the judge. The United States Federal Bureau of Investigation investigated but concluded nothing untoward had occurred. Ultimately, on appeal, the conviction of Remmer stood, and no charges against the reported interloper were pursued.

8) He was found guilty of federal tax evasion in 1952, but the appeals court ordered a retrial because of the alleged jury tampering. Tried again in 1958, he was found guilty a second time, and the higher court upheld the decision. He was sentenced to a $20,000 fine (about $185,000 today) and five years in prison. He served 2.5 of those, at the Federal Correctional Institution, Terminal Island in San Pedro, California, getting paroled in 1961.

9) He had money problems later in life. Before prison, Remmer paid the requisite pieces of casino income to various mob bigwigs, including Benjamin “Bugsy” Siegel, New York mobster; Johnny Rosselli, member of the Chicago Outfit; and Jimmy Lanza, head of the San Francisco crime family. Remmer also freely gave money to various local and state politicians. After paying the Internal Revenue Service his tax arrears of $63,000 (about $530,000 today), finances were tight. After prison, he sold cars, until his death four years later, for his brother William Remmer, who co-owned a lot in Oakland, California.

10) Nicknamed “Bones” as a joke because of his fluctuating, 225- to 300-pound size, he is said to have struggled, all of his adult life at least, with an endocrine disorder. Remmer passed away after “undergoing treatment following surgery for a glandular ailment” at age 65 in 1963 (San Mateo Times, June 12, 1963).

Sources

Las Vegas Strip, 1970s

1971

Actress Jane Fonda and renowned activists led about 900 people down the Las Vegas Strip on March 6, 1971, a Saturday, in protest of welfare cutbacks.  

“Today we launched a spring offensive and a national campaign against repression,” said participating civil rights leader Rev. Ralph Abernathy (Reno Evening Gazette, March 8, 1971).

Starting at a parking lot behind Circus Circus around 1 p.m., the group, displaying signs with various messages, such as “Nevada Starves Children” and “Don’t Gamble with Human Lives,” slowly meandered the four miles to Caesars Palace.

Once there, they went inside and while waving banners and signs, chanted and sang “We Will Overcome.” They marched through the casino, held a brief rally near the back of the building, during which the resort’s management closed the gaming tables, about 15 to 30 minutes.

The group then returned to the front steps for a sit-in that blocked the front entrance. Guests were re-routed to a separate doorway.

(Fonda left sometime during the march to fly to San Francisco.)

The Precipitating Factor

Earlier that year, Nevada welfare director George Miller removed about 1,128, or 20 percent, of people from the state’s list of welfare recipients because they allegedly had lied about their income when they’d applied for public assistance. Miller’s action affected about 3,000 individuals.

Fonda accused Nevada of forcing women “off welfare rolls to become prostitutes” (Desert Sun, March 6, 1971).

The National Welfare Rights Organization claimed the state had stopped the aid checks without affording the recipients the due process the law guarantees. The group demanded the firing of Miller and reversal of what he’d done. However, Nevada Gov. Mike O’Callahan refused to order either.

Subsequently, NWRO’s executive director George Wiley vowed to protest by disrupting the gambling industry in the city that it dominated, Las Vegas, until Nevada reinstated all dropped welfare recipients. Another aim was to warn other states not to do what The Silver State had done.

A Second Go

On the Saturday following the initial protest, the NWRO and about 250 people again marched, for the same purpose, along the Strip, this time from the Las Vegas Convention Center to the Sands. Moving slowly, the group blocked traffic on South Las Vegas Boulevard and refused to disperse on orders from law enforcement officers.

Consequently, about 85 protesters were arrested. While that was happening, members of the throng shouted, “Arrest George Miller” and other commands and declarations.

When the demonstrators arrived at the hotel-casino, they tried to enter it to disrupt the gambling taking place, but security guards blocked the doors with furniture and their bodies.

“Aren’t we allowed in this hotel like anyone else?” Wiley asked.

Others yelled, “Does the hotel take no responsibility for those children who are starving, for mothers who have to turn to prostitution or to crime? Someone may be burning this hotel down.”

“Then shouts of ‘let’s burn it’ arose from the crowd, which was crushing up against the doors,” noted the Nevada State Journal (March 14, 1971).

Check is in the Mail

Later that month, Federal Judge Roger Foley ruled the State of Nevada, in cutting people off from receiving welfare, had violated their rights. As such, he ordered their names be replaced in the register immediately.

In fact, they were. Soon after, the affected people all got a check in the mail.

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

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

1940

They couldn’t just agree to disagree. They were the sheriffs of two bordering counties in different states.

Sheriff Guy Joyner of Shelby County, Tennessee insisted illegal gambling was taking place just past the state line in The Magnolia State whereas Sheriff Elton S. Baxter of DeSoto County, Mississippi asserted no such activity was occurring in his jurisdiction.  

Fueling The Embers

Joyner reignited and escalated the ongoing dispute when on Monday, December 9, 1940, he had a 10-by-30-foot sign erected on the side of the highway in his county that read:

“Down the road in Mississippi are gambling dens run by thieves; they cheat you, they rob you, they slug you, they get your money.”

In this message, “down the road” referred to DeSoto County, and in fact many nightclubs operated there, within about 100 yards of the border. Joyner had armed deputies guard the sign around the clock. “Anyone who thinks he can drive by and shoot it down will have his tires blown off, and he will be dealt with severely,” he publicly warned (The Kingsport Times, Dec. 12, 1940).

Striking Back

Mississippians were unhappy with the sign. Citizen groups expressed their outrage, as did local newspaper editorial writers who suggested Memphis first “‘clean its own house’ before seeking to reform the world.”

Baxter said, “The battle that is raging between Tennessee and Mississippi is not over morals. Memphis and Shelby County want to keep the money that is being spent in the night clubs at home. It isn’t gambling and drinking or anything like that which is causing the rumpus, but a question of cold, hard cash on the part of Tennessee interests. Memphis people are running DeSoto County’s night clubs.”

When Mississippi Governor Paul E. Johnson was asked to weigh in, he paraphrased a Bible verse in Proverbs. “As Solomon said, ‘He that meddleth in strife not of his own making is like he who passeth by and pulleth a dog’s ear.’”

Upping The Ante

Joyner wrote in a letter to Baxter that “some day or night with axes, bloodhounds and sledgehammers, ‘I will break down those doors,’” referring to the clubs, “‘and make kindling wood of all gambling equipment’” (The Kingsport Times, Dec. 15, 1940).

Countering The Threat

On Saturday, Baxter replied: “I advise you to confine your activities north of the state boundary line. There are plenty of citizens in this county who are anxious to defend the county against your proposed activity. I intend to treat you like I would any other ordinary law violator if you, any of your deputies or any person connected directly or indirectly with your offices comes into the state of Mississippi and especially DeSoto County and undertakes to presume the prerogatives of officers of this county.” He reiterated he was unaware of any places with gambling operating in his county, but if they existed, he wouldn’t protect them.

Softening The Blow

Then, Joyner sought to learn where the exact boundary line between the two counties lay. He noted the dividing line hadn’t been established in court. “It may be, after all, those dens are in Tennessee,” he said (The Biloxi Daily Herald, Dec. 16, 1940).

Eight days after having the billboard installed, Joyner modified it, adding the words “two miles” and “Memphis,” perhaps thinking that might pacify Mississippians. The new version read:

“Two miles down the road in Mississippi are gambling dens run by Memphis thieves; they cheat you, they rob you, they slug you, they get your money.”

Taking A Stand

Subsequently, Johnson said he’d ordered operators of the stateline establishments to close and leave Mississippi. After praising the governor for that move, Joyner ordered the sign painted over. It was done. He noted it would be taken down soon, and that was done, too.

With the final word on the issue, in 1940 at least, Baxter said he hadn’t heard from Johnson that he’d kicked out the gamblers.

Sources

Mississippi photo from Wikimedia Commons: by Thomas R. Machnitzki
Tennessee photo from FourSquare.com: by KaShon N.