Originator: FBI
From: ROEMER, WILLIAM F. JR.
To: DIRECTOR, FBI
Document date: 1959-02-03 00:00:00
Document type: PAPER, TEXTUAL DOCUMENT

# DOCID-32289261

## Page 1

JFK Assassination System

Identification Form

Agency Information

Date:

6/12/201

AGENCY :

RECORD NUMBER :

FBI

124-10201-10037

RECORD SERIES: HQ

AGENCY FILE NUMBER:

92-3182-40

Document Information

ORIGINATOR :

FBI

FROM:

TO:

ROEMER, WILLIAM F. JR.

DIRECTOR, FBI

TITLE :

Heleased under the John F. Kennedy

Issassination Records Collection Act ol

1992 (44 USC 2107 Note]. Case#:Nw

F5994 Diate: 11-01-2021

DATE: 02/03/1959

PAGES:

32

SUBJECTS :

GAL, INVEST, "TOP HOODLUM PROGRAM", ACT

DOCUMENT TYPE :

CLASSIFICATION:

PAPER, TEXTUAL DOCUMENT

Unclassified

RESTRICTIONS :

4

CURRENT STATUS :

Redact

DATE OF LAST REVIEW:

02/17/1998

OPENING CRITERIA: INDEFINITE

COMMENTS :

v9.1

NW 65994 Docld:32289261 Page 1

178

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## Page 2

REPORTING OFFICE

CHICAGO

TITLE OF CASE

GUS ALEX, aka.

FEDERAL BUREAU OF INVESTIGATION

OFFICE OF ORIGIN

CHICAGO

DATE

2.13/59

INVESTIGATIVE PERIOD

12/1/58 - 1/20/59

REPORT MADE BY

WILLIAM F. ROEMER, JR.

CHARACTER OF CASE

ANTI-RACKETEERING

TYPED BY

FBT

REFERENCE: Report of SA WILLIAM F. ROEMER, JR., dated 11/25/58,

at Chicago.

-P -

LEADS

THE BUTTE DIVISION

AT SUN VALLEY, IDAHO

As noted in my airtel dated January 21, 1959,

AlEx and his wife intend to spend 11 days at the sun valley Lodge,

sun Valley, Idaho, commencing February 12, 1959. Butte will

insure complete coverage of ALEX's activities, phone calls, and

associates

while in Sun Valley.

3-Bureau (92-3182) K8471V

2-Butte

1-Newark (Info)

1-New York (92-955) (Info)

2-Chicago (92-373)

DO NOT WRITE IN SPACES BELOW

92-3182=

FEB

9

1909

REC- 44

• то.

..--

SO E MAY 24 1972

COVER PAGE

PROPERTY OF FBI.-

-This report is loaned to you by the FBl, and neither it nor its contents are to be distributed outside the agency to which loane

67 MAR 16 1959

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## Page 3

CG 92-373

THE CHICAGO DIVISION

AT CHICAGO, ILLINOIS

Will continue to conduct investigation regarding

the current activities and so forth of GUS ALEX in conformance

with Bureau letter to New York dated 11/27/57, entitled

"TOP HOODLUM PROGRAM, AR"

COPIES TO OTHER OFFICES

One copy of this report is being designated for

Newark and one copy for New York for informational purposes,

due to the fact that the report contains information regarding

the trip to New York and New York City, taken by CG 6232-C,

where he solicited the cooperation of top hoodlums and other

prominent hoodlums in New Jersey and New York City and because

the results of this solieitation are reported therein.

INFORMANTS

Informant

Agent -

CG T-1

(On 10/14/58 and 11/20/58

CG 6232-C

tO SAS WILLIAM A. MEINCKE

and JOSEPH G.. SHEA)

CG T=2

(On 12/12/55, to SA JOHN J..

CG 6029-S

OITZINGER)

CG T-3

(On 11/20/58,to SA WILLIAM

CG 6272-C

F. ROEMER, JR.)

CG T-4

(On 11/21/58, to SAS VINCENT

PCI EUGENE LIEBERMAN

L. INSERRA and PAUL B. FRANKFURT)

CG T-5

(On 12/17/58 to SA WILLIAM

GEORGE E. Q. JOHNSON,

F. ROEMER, JR.)

Attorney, Bank

Clark

and

Adams, Chicago

COVER PAGE

NW 65994 Docld:32289261 Page 3

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## Page 4

FD-204

UNITED STATES DEPARTMENT OF JUSTICE

FEDERAL BUREAU OF INVESTIGATION

Copy to:

Report of: SA WILLIAM F

Date:

3 1959

ROENER, JR.

File Number:

Bureau 92-3182

Chicago 92-373

Office: CHICAGO

Title: GUS ALEX, aka.

Character: ANTI-RACKETEERING

Synopsis:

ALEX continues to reside at 4300 North Marine

Drive, Chicago, although he has been in New York

City, Las Vegas, Nevada and Europe during most of

the period covered by this report. Officials of

Atlas Brewing Company, unable to find records of

ALEX's past employment although information has 2^

been developed that he was a salesman there for

approximately 8 years.

Seven associates of ALEX

identified.

Informant advised that in order to

operate a handbook in the Loop of Chicago, & bookie

must obtain the sanction of ALEX and if given

approval, call all bets into a syndicate "clearing

house", where

ALEX splits the income from the book,

usually 50-50.

Informant involved in dispute with

a subordinate of ALEX obtained assistance of New

York and New Jersey hoodlums and was able, through

their help, to present true facts of dispute to

ALEX, with result that ALEX's subordinate was dis

credited and informant was able to make arrangements

with ALEX and his top aide FRANK FERRARO, to operate

gambling houses in the first ward of Chicago, which

is controlled for the syndicate by ALEX.

Veteran

Chicago Detective advised that he believes ALEX

kidnapped and probably killed CLEM GRAVER, Illinois

State Representative, in 1953, due to the fact that

This document contains neither recommendations nor conclusions

of any kind.

It is the property of the FBI, and is a loan to your

agency; it and/or its contents are not to be distributed outside

your agency.

NW 65994 Docld:32289261 Page 4

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## Page 5

CG 92 - 373

II.. ASSOCIATES

CHARLES "CHAPPIE" BERTUCCI

CG T-1,

who has furnished reliable information in

the past, advised that recently he was involved in a monetary

dispute with LOUIS TORNABENE. He

stated that TORNABENE was

a partner of his in a gambling operation located in the Santa

Fe Hotel on the corner of Polk and Dearborn, Chicago, and that

TORNABENE had cheated him out of a total of

approximately

$19,000.00. He stated that in order to arbitrate this dispute

to SAM BATTAGLIA, a high level syndicate hoodlum, who

turn met with

a representative of GUS ALEX's in order

settle the dispute. The

informant stated that the representative

of GUS ALEX'S waS one CBERTUCCI, well known as "CHAPPIE",

who resides at 303 West 32nd Street, chicago.

Illinois.

stated that BERTUCCI drives a 1954 blue Cadillac convertible.

He also advised that BERTUCCI is carried on the payroll of

the city of Chicago but that he does not work for the city of

Chicago even though he receives $100.00

a week from the city.

CG T-1 advised that on November 18, 1958,

he was

contacted and advised to meet GUS ALEX and his Lieutenant,

FRANK FERRARO, at the Normandy Bar, across the street from

City Hall, in Chicago. He stated that he met ALEX and FERRARO

and that after advising ALEX of his side in the dispute with

TORNABENE, ALEX placed a call for TORNABENE to join them

immediately. He stated that when TORNABENE arrived at the

Normandy Bar, he was accompanied by "CHAPPIE" BERTUCCI, who

stayed outside in the car when TORNABENE came inside.

It is noted that CG I-2, who has furnished rellable

information in the past, advised on December 12, 1955, that

CHARLES "CHAPPIE" BERTUCCI is part owner of "Joey's Tavern",

5496 South Lake Park, Chicago.

This informant also noted that

BERTUCCI was a close friend of JOSEPH JAMES BAGNOLA, former

Unlawful Flight to Avoid Prosecution • Murder fugitive, I:.

number 5920.

LOUIS BRIATTA

CG T-3, who has

furnished reliable information in

the past, advised that a top lieutenant of GUS ALEX

his LOU

172452

A8N4

= 40

ILL

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## Page 6

CG 92-373

GEORGE LEIDERMAN

CG T-3 advised that during the past several

years one GEORGEALEIDERMAN was a well known bookmaker, who

operated on a large,

scale in the Loop. He stated that in

the late 1940's, LEIDERMAN took a bet

from a better located

in the Southwestern portion of the United States. This better

lost and was unable to pay off LEIDERMAN., LEIDERMAN there

fore accepted ownership in an oil well in Texas or oklahoma

owned by the better. Several months later the well produced

sufficient oil to make a millionaire out of LEIDERMAN. Later,

largely as a result of the Kefauver hearings, LEIDERMAN left

the gambling business and now has an office as 188 Randolph

where he deals in oil.

It is noted that in approximately May, 1958, while

SA ROEMER was surveilling GUS ALEX in the Randolph Towers

barber shop, 188 Randolph, a well dressed man entered the

shop and was addressed by

(PH) by a barber.

ALEX immediately called to the man "GEORGE

come here"

It is believed this must have been LEIDERMAN

Motore ite we save be

what sA RoEMER felt was Mr., LEBERMAN

whom the informant described above.

He was approximately

50 years old, tall, medium-heavy build, dark hair.

On December 10, 1958, it was observed that the

building directory at 188 Randolph listed GEORGE LEIDERMAN

in suite 620-627.

When questioned as to the association

between LEIDERMAN and ALEX, informant stated that he knows

of none directly but due to LEIDERMAN's prominence in the

LOOP,

it certainly figures that he is acquainted with AlEX.

PATYMARCI

as described more fully below under the caption "position of

Gus Alex in the Chicago Crime Syndicate", it was PAT MARCI

who called the informant and set up the meeting.

He stated

that when he arrived at the Normandy Bar, MARCI met him and

brought him directly to the table of GUS ALEX and introduced

him to ALEX and FRANK FERRARO,

∞ 6 cou

NW 65994 Docld:32289261 Page 6

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## Page 7

CG 92-373

CG T»3 advised that LOUIE BRIATTA is the man

who keeps

line.

He said that under BRIATTA are

many underlings who constantly visit the bookies to insure

that ALEX's interests are well provided for and that no

one is crossing him. He identified one SID FRASER as

being one of these underlings.

CG T-3 stated that years ago, men like JOHN LYNCH,

MAL, CLARKE, GEORGE LEIDERMAN and EDWARD DOBKINS were the

"big bookies" in the loop but that within the pat several

years the syndicate has "pushed" these men more and more

until all of them decided that' it was not worth it anymore

and left the business in Chicago. Now, he said, the gamblers

in the Loop are almost entirely "dagos" and very few have

the personal integrity and good will which the old timers

had.

CG Tol advised, as previously reported, that GUS

ALEX interceeded in

a dispute between LOUIS TORNABENE,

notorious Chicago handbook operator and the informant,

by

taking TORNABENE's side in settling the matter

in favor of

TORNABENE.

CG T-1 stated that ALEX's influence was sufficient

to overcome the influence of SAM BATTAGLIA and other highly

placed hoodlums, who sided with the informant, probably due

to ALEX's control of the first ward, the area

which CG T-1

stated ALEX controls for the crime syndicate in Chicago.

The

informant has now furnished additional information concerning

this dispute regarding the role played in it by AlEX, as

follows:

On October 10, 1958, CG Tol stated that he had

gone out to collect a gambling debt of $6,000.00, which was

owed to himself and LOUIS TORNABENE. The informant explained

that he had taken the bet from an individual unknown to

LOUIS TORNABENE.

the sum of $6,000.00 to himself and LOUIS TORNABENE.

The individual lost and, therefore pared

informant advised that in his opinion he had been muscled out

of money honestly owed to him by TORNABENE and, therefore, took

it upon himself to keep the $6, 000. 00 and not turn over

TORNABENE's share to him.

The informant advised that he

telephoned TORNABENE and

told him that he planned to keep the

money, as he felt that the money was due him and that if

TORNABENE had any ideas otherwise, that the informant would

take the entire matter up with hoodlum contacts of his on the

10,8=

NW 65994 Docld:32289261 Page 7

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## Page 8

CG 92-373

East Coast.

The informant advised that he had planned

to make a trip to the East in order to settle the whole

dispute; however, the $6, 000.00 came into his hands before

he had time to make arrangements to go East. He advised

that he was positive that he would be able to straighten

the entire situation out because he recontacted his associates

in New York and New Jersey and felt that there was a minimum

of risk in holding out the money on TORNABENE.

Informant advised that he contacted TORNABENE

and told him that he would,. under no circumstances, pay him

any money, alter which he decided that he should immediately

leave chicago and make the necessary contacts in Newark and

New York to

back up the threats which he had made to TORNABENE.

On October 14, 1958, informant advised that since

he had departed from Chicago,

he had been in daily contact

with his wife who advised him that at about 1:00 p.m. on

Saturday, October 11, 1958, LOUIS TORNABENE and BENNIE BERNARD,

notorious Chicago cartage thief, came into their grocery store

and asked for the informant.

The informant said that these

two individuals told his wife, "I want you to know that your

husband has $6200.00 of ours and we want it - if he doesn't

come up with it we'll kill him." Informant advised that it

WAS LOUIS TORNABENE who made the above statements. At about

6:30 p.ll. on the same day, both TORNABINE and BERNARD again

appeared at the store and

told a young male employee,

Their not to open the store on Sunday.

advised that on Saturday night his wife had contacted the

Maxwell District, Chicago Police Department, advised that

she had been threatened, and asked for a police escort home,

and again in the morning to work., Informant advised that no

details were supplied to the police; however, one Lieutenant

GORE, who is known

to the informant, apparently for friendship

sake, caused informant's wife to be escorted to and from the

store. Informant advised that on Sunday, the lath, Informant

10:30 a.M., BENNIE BERNARD appeared at the store.

advised that LOUIS TORNABENE never made a re-appearance at

the store after Saturday, the 11th. BENNIE BERNARD on Sunday

stated "You know if he doesn't get that money up,

no matter

where he goes we have connections. We'll get him and kill

him."

Informant advised that on Monday, the 13th, his wife

said that BENNIE BERNARD again reappeared between 10:30 and

'11:00 a.m., at which time he said, "You know the money is not

LOUIS',

but his (meaning (BENNIE BERNARD) and his partner - he's

going to get hurt - guys we are with are angry." BERNARD said

= 9 ∞

NW 65994 Docld:32289261 Page 8

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## Page 9

CG 92-373

that he had gotten in touch with LOU and had calmed him

down, and that if the informant straightened things out

now everything would be okay. But 1f he did not, he would

get hurt. Well get him."

Informant advised that on October 14, 1958,

knowing that BENNIE BERNARD was on federal probation, he made a

telephone call to the United States Probation Office,

the name

and he told WITHORE that BENNIE BERNARD had come to his store

on several occasions, had made threats to his wife, attempted

threats were made.

Informant advised that on October 14, 1958, his

wife advised him that a

MITMORE had appeared at probation officer by the name of

the grocery store during the afternoon

o1 october 14, 1950, and had BENNIE BERNARD with bim.

The

probation officer interviewed the informant's wife in BERNARD"s

presence and asked if the allegations were true, at which

time BERNARD budded in and said, "All I said to her was 1f

(the informant)doesn't pay the $6200 back we're going to get

him and he'll get hurt."

Informant advised that his wife

told the probation officer that she was distraught and was

in no frame of mind to answer further questions.

Informant

advised that since that time, neither BERNARD nOr TORNABENE

appeared at the store. However.'last weekend.

the windows in the grocery

store were all smashed over the

On November 6, 1958, the informant contacted the

Chicago Office of

the FBI and advised that he had been

Newark contacting hoodlum connections, and had also been to

New York City, where he

contacted various people in an effort

to straighten

out his situation. He advised that he felt

sufficient pressure had been brought to bear by the New York

connections and he had been told to return andm harm would

be

done to him and that the matter with TORNABENE had been

settled.

The informant supplied the following information

regarding his contacts on the East Coast.

He said that about

- 10 c

a t.

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## Page 10

CG 92-373

October 16, 1958, he made his first contact with one

PETE LE BLANC in

Hasbrook Heights, New Jersey.

He advised

that during the time

New Jersey himself, hehat he ran gambling operations in

became well acquainted with PETE

LE BLANC, aS LE BLANC had been an active member at that

time in the Moretti, Addonis"& Anastasia Gang. He advised

that MORETTI,

ADDONIS and ANASTASIA, of course, are now

dead and that PETE LE BLANC has taken over in that section

of Jersey. He advised, however, that LE BLANC is, in effect,

a powerful man in himself; however, he no longer has any

organization behind him due to the

County area in New Jersey is pretty well cleaned up

regarding gambling and numbers, due to the extreme pressure

which had been brought to bear

•by. States Attorneys and police

in that area.

LE BLANC advised him that he no longer could

use a telephone and he was reluctant to make contacts with

other known hoodlums in the immediate area, due to the fact

that the FBI was conducting extensive investigation and was

apparently worrying them a great deal. Informant advised

that LE BLANC told him that he would take the matter into

consideration and that he might consider a trip to Chicago

to contact the proper authorities and plead the informant's

Informant advised that after a sufficient length of

time it became apparent to him that LE BLANC was going to

take no action.

Informant advised that the meet with LE BLANC

was at the offices of an attorney, N. CORELLA, at the corner

of Second and Summit, Lindhurst, New Jersey.

He advised

that CORELLA had set up the meet between himself and LE BLANC.

Informant advised that after it had become

apparent to him that LE BLANC was not the

answer to his

problem, hemoved into the Newark area, and on about October

23, 1958, he contacted one TONY BANANAS (described as white

west of Newark.

He advised that this restaurant is fre-

quented by hoodlums in the area and TONY had selected it as

a meeting place.

sphere of influence is in Newark and he controls a good

a 18 di Newark

According to the informant, TONY BANANAS'

measure of the gambling occurring in the area.

He advised

that TONY is well placed in the syndicate and is considered

an extremely powerful man.

.= 11 .

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## Page 11

CG 92-373

The informant advised that the meet with TONY

BANANAS had been set up for him through a friend, one

AL DIVOTO, a bookie and an individual who has good contacts

among bookies and hoodlums in the Newark area. He advised

that AL DIVITO sells cars in Kearny, New Jersey, and

that he is employed by the Chevrolet Company on Kearny

Avenue.

The informant advised that this is the only

Chevrolet dealership on Kearny Avenue; however, he could

not recall the name.

He advised that DIVITO is not well

placed regarding the top hoodlums and is, in effect, letting

a rather small bookie operate at present.

However,

due

to the

operation that he now runs and those that he has

run in the past, he knows the right people and was able to

set up a meet with TONY BANANAS.

Informant advised that the sum and substance of

the meeting with TONY BANANAS was that TONY told him to

take his problem to PETE LE BLANC, who would be in a better

position to do something for him, as PETE knew of his past

reputation and would be in a better position to vouch for

the informant than he (TONY BANANAS) would be.

TONY advised

that if he didn't get any satisfaction, however, to return

and TONY would see that the situation was straightened out

in Chicago.

Intormant advised that he did not want to tell

BANANAS That PETE LE BLANC had been contacted and had offered

very little assistance, so he dropped the matter and made

no further effort to contact BANANAS.

He stated that on

about October 25, 1958, he contacted

LOUIS "Coca Cola".

He advised that this meeting took place in Newark

on 7th Avenue near High Street.

He advised that if one

was facing Broad Street, the place would be on the south

side of 7th Avenue.

He advised that the place was a little

store which contained a TV set and several tables and

chairs and nothing else.

He advised that it was a meeting

place for hoodlums in the area.

The informant described LOUIS "Coca Cola" as

white, male, late 40s, 175 pounds, 5'7-5'8", well built,

greying brow hair, Italian. He advised that LOUIS"Coca Cola"

was connected with the numbers and horse books in the Newark

He stated that the above mentioned store was used in.

connection with both activities; however, messages were taken

to and from the place by runners and although there was one

telephone in the place it was not used for business at all.

• 12 -

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## Page 12

CG 92-373

He advised that LOUIS "Coca Cola" is a powerful lieutenant

to RICHIE "The Boot", a 70 year old hoodlum who is one of

the most powerful individuals in numbers and horse books in

the Newark area.

He advised that LOUIS "Coca Cola" listened

to his story and

tried to find flaws in it, indicating that

LOUIS TORNABENE might have been right in his action. Informant

felt that LOUIS "Coca Cola" did not know him or his reputation

well enough to be in a position to help him.

He advised that

LOUIS "Coca Cola" asked if he knew JOHNNY MARSHALL (MARSHALL

CAIFANO) , Chicago top 10 hoodlum.

The informant had never

met MARSHAlL and, of course, denied that he knew him to LoUIS

"Coca Cola", and

that just about ended any further discussion.

The informant then advised that he felt that he

would be in a better position if he made some contacts in

the New York City area with some top hoodlums that he

knew over there and felt that he would get better satisfaction

and make faster headway than he was in the Jersey area.

Informant decided to contact one SALVATORE ESPOSITO. He advised

that SALVATORE ESPOSITO is a "bean man" for New York hoodlums

and at one time had been a member of Murder Incorporated.

Informant advised that he knew SALVATORE ESPOSITO personally

for a period of approximately 15 years' alter he had been

released from prison.

SALVATORE ESPOSITO had served about 12

years for murder. He advised that he had dealings with

ESPOSITO in the past when he (informant) was closely associated

with the Addonis and Moretti Gang in Jersey®

He advised that

ESPOSITO works for the New York City hoodlums; however, he

lives in New Jersey and he advised that ESPOSITO now resides

at 11-43 Hoehn street, Lodi, New Jersey, telephone number

Gregory 2-1663.. He advised

that he contacted SALVATORE ESPOSITO

and his brother, TONY, in New York City at a little social

club which is actually a store front location on 102nd Street

netween und and sra avenue. He

advised it is on the north

side of the street and the number is probably 245. He advised

that this store is a meeting place for hoodlums in New York

City and is simply an empty store which has several chairs

and tables and a television set. He advised that he met

SALVATORE and TONY for the first time about October 25, 1958.

SALVATORE told him immediately that he would be able to

straighten out the situation with little difficulty

0. 13 =

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CG 92-373

During the course of conversation, SALVATORE

mentioned the name FISCHETTI as a person who was presently

in New York, and the individual from whom he took orders.

He advised that he would get in touch with him as soon as

the informant left and attempt to get permission for himself

and his brother, TONY ESPOSITO, to come to Chicago for a

meeting with TORNABENE and anyone else TORNABENE might want

to have present. The informant advised that SALVATORE did

not mention the Ilist name of fIschettI, but did say that

this individual

then living in New York City.

Informant

advised that he was in no position at that time to inquire

further into the situation.

During the course of the conversa

SALVATORE ESPOSITO advised that the last time he was

in Chicago was in 1953, in connection with a killing

informant attempted to get the time of the year that SALVATORE

was in

Chicago;

however, he was unsuccessful. SALVATORE did

state,

however, that he spent most of

his time in the Rush

Street area of Chicago, at that time, and apparently knew

a lot of places and

people in that particular area of Chicago.

SALVATORE did not elaborate any further on the killing which

took place in 1953.

Upon leaving, the informant was assured

by ESPOSITO, that he had nothing to worry about. It would be

all taken care of and he would get in touch with him again.

He advised that several days later, about October

28, 1958, he was

contacted and ESPOSITO set up a meet for

Maschios

Restaurant in Lindhurst, New Jersey.

Informant

explained that Maschios is a place which he, the informant,

had once owned, and is a legitimate restaurant in Lindhurst

and was chosen

only because it was easily accessible by both,

individuals.

He advised that on about October 28, 1958, TONY

and SALVATORE met him at Maschios and they continued the

discussion of the informant's problem. At this time,

informant paid $1000.00 to SALVATORE and TONY and he was told

by SALVATORE and TONY ESPOSITO that he could sall up his wife

and tell her not to worry about a thing, that nobody would

be around the grocery store and that the matter had been

completely taken care of. At this time SALVATORE scheduled

another meet for Sunday, November 2, 1958.

At this time, the informant again met the above.

individuals at Maschios, at which time he was advised by

them that he now had a partner and advised that SALVATORE

and TONY ESPOSITO were to get an additional $2000.00 if the

matter had been completely cleared up and that the informant was

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## Page 14

CG 92-373

to expect no more trouble under

any circumstances from

either

LOUIS TORNABENE or any of his associates. Informant

advised that he said no deal to this proposition, but

advised that SALVATORE and TONY ESPOSITO would get the $2000.00

when they came to Chicago and entered into a conversation with

LOUIS TORNABENE and his associates. Informant advised that

at the end of this meeting he had been conpletely satisfied

that TONY and SALVATORE ESPOSITO would get the $2000.00.

Informant advised that the ESPOSITOs said that they

agreeable to

the situation some time before the Christmas holidays.

The informant advised that under the circumstances,

of course, he would be immediately suspicious of & shake-down

by the ESPOSITOs, however, he advised he has know them for

many years, has had dealings with them in the past, and has

found that they were extremely reliable in anything they said

and felt they were in no position to go sour on him or attempt

to shake him down.

Informant advised that he felt positive

that nothing more would come of any trouble with the TorNAßENes.

Informant advised that since the windows in his

or any member of his family. Informant advised that he has

been back in Chicago for several days and has, in effect,

notified LOUIS TORNABENE of the fact that he

he could be located and also indicates that he considers the

matter of $6200.00 closed.

The informant advised that regarding the New York

city situation, the city is running good on horse books and

that the payoff is $1800 per month per telephone to the New

York City police. He advised that the situation regarding horse

books in New York City and in other parts of the East is

different from Chicago, in that the syndicate hoodlums do not

exert, the pressure upon it that they do in Chicago, and they

take far less from the bookie take.

He advised that the main

occupation on the part of & bookie as far as his expenses are

concerned is the $1800.00 per month per phone that he must

pay to the law.

CG T-1 stated that he was contacted on November 18,

1958, by PAT MARCI, who called the informant at his place

of business and said that he wanted to set up a meeting

between the informant and GUS ALEX at the Normandy Bar, vicinity

of 100 North Le Salle

Street.

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## Page 15

CG

92-373

The informant advised that he arrived at the

Normandy Bar and Cocktail Lounge, 5:00 on November 18, 1958.

He advised that PAT MARCI brought him directly to the table

Of GUS ALEX and introduced him to ALEX and an individual

that was with GUS AlEX, who was introduced to him only as

FRANK, but whom he learned later was FRANK FERRARO.

The informant advised that after MARCI made the

introductions, MARCI went to another table and did not

participate in any of the following conversation.

The informant advised that the individual,

introduced to him as FRANK, began the conversation and

indicated that he had gotten a call from some people in

FRANK advised the informant that he knew all of

the details pertaining to the informant's difficulty and dispute

with LOUIS TORNABENE.

Further,

FRAnK wanted the informant to

reiterate the entire facts to Gus ALri and himself.

Informant advised that he went into complete detail regarding

the entire dispute whereupon ALEX asked him if he wanted to

face LOUIS TORNABENE with his story and his accusations. The

Informant advised that of course he would, whereupon gus abix

placed & call for TORNABENE to join them immediately.

The informant advised that TORNABENE arrived about

fifteen or twenty minutes later and was driven to the Normandy

Bar and Cocktail Lounge by CHAPPIE BERTUCCI. The informant

, advised that CHAPPIE BERTUCCI stayed outside in the car while

LOUIS joined them in conversation.

GUS ALEX and FRANK FERRARO aggressively and minutely

questioned LOUIS TORNABENE regarding the particulars of

the

gambling dispute with the informant.

The informant advised

that TORNABENE was unable to give coherent answers, did not have

the facts and figures in his mind and was obviously lying,

whereupon ALEX became furious, called TORNABENE & "degenerate

gambler" and stated emphatically TORNABENE had never had the

sanction of the outfit regarding his own personal gambling.

The informant explained that what ALEX meant was that although

TORNABENE had

sanction of the outfit to runs book he had not

been permitted to gamble, on his own. The informant gathered

from the dispute between TORNABENE and GUS ALEX, that this was

not the first time that TORNABENE had gotten himself into

trouble with ALEX in connection with his own personal gambling.

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CG. 92-373

The informant advised that while ALEX was still

CHAPPIE, Who was still in the car.

FRANK FERRARO left to intervie

When FRANK returned,

he made it obvious that from his interview with CHAPPIE,

CHAPPIE was unable to come up with straight answers regarding

the entire affair and both FRANK and ALEX became furious

with TORNABENE.

The informant advised that the entire dispute

was settled in favor of himself and that ALEX was apologetic

about the treatment he had received from TORNABENE.

At the

end of the dispute ALEX turned to TORNABENE and said "Now

you're responsible for( the informant's) safety". TORNABENE

turned and professed not to know what ALEX was talking about

whereby ALEX clarified himself by saying that he knew TORNABENE

had hired soneone to kill the informant and now he better

hire someone to protect him because if anything happens to

him it would be his, TORNABENE's, end.

The informant advised that GUS ALEX specifically

inquired about any physical damage that had happened to the

informant's store as a result of the dispute with TORNABENE,

whereupon the informant told him about the broken windows and

the malicious spattering of paint, and so forth. ALEX said,

"That's BENNIE BERNARD's work, he has been doing that for

years." ' The informant said that ALEX was extremely bitter

towards BENNIE BERNARD and he said he would take care of BENNIE

himself.

ALEX'S

The informant advised that he was very surprised at

attitude toward BENNIE BERNARD and that Alfx said that

BENNIE BERNARD would not be allowed in the Loop in the future.

The informant advised that during ALEX and FRANK'S

interview, LOUIS TORNABENE was badly shaken and left in a

highly nervous condition. ALEX also got LOUIS TORNABENE to

admit that he had actually threatened the informant's life

and was seriously admonished for it.

ALEX called TORNABENE

a liar and after he left advised the informant that TORNABENE

had been a good

man for him until he started fooling around

with the horses, himself.

The informant advised that the

entire matter had been settled in the informant's favor and

GUS ALEX told him, the informant, that he had been very highly

recommended by New York people. ALEX was also quite interested

in the informant's gambling situation in Chicago and asked

how many phones he had and if they were operating.

The informant

advised that he had several phones and an apartment location and

was ready to operate, however, he had been holding the entire

operation at a standstill until the above dispute was

settled.

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## Page 17

CG 92-373

ALEX expressed a great interest in the details in which

the informant had set up his operation and told the informant

to keep everything down for the moment and that he, ALEX,

would see him again in regard to the gambling operation.

The informant advised that after TORNABENE had

left ALEX was

talking freely about his displessure with

TORNABENE and said "that he might take everything away from

him"•

The informant advised that the entire meeting took

approximately two and one half hours and that he went home

from the Normandy about 7:30 in the evening.

The informant advised that he called SALVATORE

Esposito at bodl, New Jersey, the following morning,

Wednesday, November 19, 1958, and told SALVAToRE the outcome

of the meeting and att

the particulars as to what had

transpired. ESPOSITO gave his approval and told the informant

"to be sure and not give them a nickel, it was all taken care

of by them". SALVATORE advised that he and TONY ESPOSITO

would still come to Chicago sometime in the near future and

the informant also agreed to send an additional $1000.00 to

SALVATORE within a week for the services which they and their

two friends in New York had performed in connection with this

dispute..

The informant advised that SALVATORE and TONY ESPOSITO

would probably simply come to Chicago to make contact with

the individuals responsible for the mediation of the above

dispute and perhaps handle some other personal business.

The

informant advised that his own dispute was now over and

that

he did not expect the ESPOSITOs to take any action regarding

it and he felt that they had performed their function as he

had expected.

On November 26, 1958, CG T-1 advised that at about

7:45 P.M., on November 25, 1958, he received a telephone call

in Chicago from SALVATORE ESPOSITO.

SALVATORE advised that

he had flown into Chicago and wanted to see the informant and

have supper at the singapore.

SALVATORE ESPOSITO said that he

and his brother, DOMINIC, had driven from New Jersey and were

staying at the Croydan Hotel in Chicago.

that he met SALVATORE and DOMINIC at the Singapore where they

had dinner and nothing of a business nature was discussed.

The informant advised that after dinner he drove them to the

hav the that a Due

Croydan Hotel where they were already registered in Room 1009.

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## Page 18

CG 92-373

The informant advised that he went up to

the room with SALVATORE and DOMINIC where SALVATORE and

DOMINIC told him that they wanted to collect $5000.00.

The informant advised that SALVATORE and DOMINIC tried to

explain to him that the $6200.00 which the informant took

prior to his trip did not belong to LOUIS TORNABENE and

that they had come out to collect $5000.00 and turn it over

to its rightful owner.

They said they wanted $2500.00 that

day and $2500.00 within a week. The informant advised that

DOMINIC and SALVATORE knew about the meeting which he had

had with GUS. ALEX.

DOMINIC and SALVATORE confirmed the

fact that ALEX was very displeased with TORNABENE's action.

The informant advised that neither DOMINICIOr SALVATORE

would tell him to whom the $5000.00 was to be paid and he,

the informant, took the attitude that DOMINIC and SALVATORE

were simply trying to shake him down for

$5000.00 and promptly

told DOMINIC and SALVATORE that he would not come up with

the money under any circumstances unless he knew to whom it

was going.

The informant advised that he could not understand

at that time the reversal in SALVATORE'S and DOMINIC's

attitude toward the dispute. The informant advised that if

SALVATORE and DOMINIC were not attempting to extort $5000.00

from him, then GUS ALEX must be behind the pressure somewhere.

The informant advised that he left the Croydan Hotel after

P.M. the following day for further discussion.

prol sta 1ol10va planned tour

promising to meet DOMINIC and SALVATORE at the hotel at I:00*

The informant

advised that he planned to tell DOMINIC and SALVATORE that

under no circumstances would he come up with any money and

they could do as they please about it.

The informant was seen entering at 11:36 A.M. and

While the informant was in the

Let 1954 or 1 Montaire Merory nite and red sedan,

was noted in the parking lot adjacent to

the Croydan Hotel.

The license number was noted as 1958. New Jersey BJ6634.

At

12:10 P.M. the radio message was received that the informant

was calling regarding the meet. At 12:13 P.M. telephonic

contact was made with the informant at which time he explained

that DOMINIC and SALVATORE were waiting for him in the lobby

of the Croydan Hotel and that they seemed to be in a great deal

of a hurry and wanted to get back to New Jersey for Thanksgiving.

They explained that they were leaving immediately. They told

him that they would relay the message that the informant was not

going to pay the money to their contacts and that they would

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## Page 19

CG 92-373

be back to see him again in Chicago. They instructed the

informant to call SALVATORE the following Sunday in New

Jersey.

The informant advised that neither SALVATORE nor

DOMINIC made very little more reference to the $5000.00,

saying "all right so you haven't got it, we'll straighten

it out later".

He advised that with that he left.

On December 2, 1958, the informant was again

contacted at which time he advised that he had received a

telephone call Sunday, November 30, 1958, from SALVATORE

ESPOSITO, indicating that he would fly out to Chicago the

following Monday or Tuesday. The informant advised that on

Tuesday, December 2, 1958,

SALVATORE ESPOSITO again called

and said that DOMINIC, his brother, and one other individual

would be out to see him the same day.

SALVATORE said they

were flying to Chicago via American Airlines, Flight 737,

arriving from Idelwild Airport, New York, at Chicago, at

3:05

P.M., December 2, 1958. The informant was instructed to

meet

the plane.

On December 3, 1958, the informant advised that

he met the above airplane which landed at Midway Airport,

Chicago, at 3:10 P.M., December 2, 1958. He advised that

DOMINIC ESPOSITO was accompanied by one ANTONIO (TONY) TROMBINA.

The informant advised that he drove DOMINIC ESPOSITO and TONY

the informant's, place of business,

where TROMBINA said he wanted to use the phone to get in touch

with GUS ALEX immediately.

Upon arrival at the store,

the

informant advised that TROMBINA told him to get in touch with

GUS ALEX right away.

The informant said that he was going to call PAT

MARCI, who would set up a meetfor ALEX with TROMBINA. TROMBINA

inquired as to who MARCI was and when the informant explained,

TROMBINA showed some surprise that a politician would be the

one to set up a meet but the informant explained that that was

the way it was done and he could not set up a meet in any other

way o

way one a den and the

TROMBINA then told the informant to call MARCI, which he

did.

The informant advised that he called MARCI and explained

that he wanted to see ALEX. MARCI indicated that ALEX would

be hard to reach and probably would be unavailable for a meet

but said he would call back in a few minutes.

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## Page 20

CG

92-373

The informant advised that MARCI called back

from the Normandy Lounge and at this time TROMBINA grabbed

the telephone and began talking to MARCI: in Italian.

The

informant advised that the only thing he could overhear was

that TROMBINA introduced himself on the phone, spelling out

his name and saying that he was sent by TOTO or TATA frOm

New York, a good friend of his.

Within a few minutes the

telephone rang again and the informant was pretty sure that

FRANK FERRARO was on the telephone and after TROMBINA talked

to him for a few minutes a meet was made to see GUS ALEX

in about fifteen minutes at the Normandy Lounge. The informant

advised that they left about 4:30 P.M. by cab and drove

directly to the Normandy Lounge.

When they arrived the informant advised that he

SaW DE ARCO, PAT MARCI, FRANK FERRARO and someone whom he

did not know, occupying a table at the Normandy Lounge.

The

informant explained that DE ARCO and apparently ALEX have

a booth in this lounge which they always use and receive

telephone messages on a yellow telephone in this booth.

The

informant explained that FRANK FERRARO introduced himself to

TROMBINA. He explained that FRANK FERRARO and TROMBINA then

went to another table and engaged in some conversation.

He

and ESPOSITO were kept separate.

He advised that in a

few

minutes GUS ALEX entered and joined the conversation with

FERRARO and TROMBINA. He advised that in about twenty minutes

they sent for DOMINIC ESPOSITO, who also joined the conversation.

The informant advised that he was kept too far away to hear

any of the conversation.

The informant advised that in about

an hour they sent for him and GUS ALEX dominated the following

conversation:

ALEX explained that the informant owed $5000.00

but did not make it clear at this point to whom the money was

to be paid, however, indicated that it was either to ALEX

dicated that it a

Or FERRARO.

ALEX did not seem to press for the money and told

the informant he would have plenty of time to get it up and

tentatively set one year from that day to come up with the

money•

The informant said that he seemed to get mad and

ALEX bawled him out in no uncertain terms starting off by

saying, "How long have you been in Chicago?"

The informant

replied and ALEX said,

"Men with your experience and being

in Chicago, you should know that no one operates in that district

without my OK". At this point ALEX explained that the $5000.00

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CG 92-373

which they were talking about did not have any particular

significance in the dispute that the informant had had

with LOUIS TORNABENE.

which he took did not belong to the informant entirely

indicating that some of that money, It It had gone

through the proper channels and had not been stopped by

the informant, would have gone to TORNABENE and then part

of the money to GUS ALEX.

ALEX explained then that the informant had

done right by going to New York in an effort to reach

well placed people to straighten out his dispute with

TORNABENE, however, he made a mistake by taking the $6200.00

first. ALEX then said that in this instance, as far as he

is concerned, the $5000.00 was not the important thing as

he certainly was in no need of money but said that the

principle of the thing was involved and indicated that the

$5000.00 payment would be simply a payment to ALEX and FERRARO

to allow the informant to erate.

gambling interests in the

district which they control.

Then ALEX became very interested in the book

set up which the informant had, inquiring as to how many

phones he had, customers, and so forth.

ALEX then said

that he would

see to it that the informant could operate

and that "we will send some people over".

At the conclusion of the meeting the informant

advised that everyone was on friendly terms and ALEX said

that he would set the informant up and not to hurry about

the $5000.00. ALEX said he would see to it that he would

make plenty of money and that the $5000.00 owed to ALEX would

be, in effect, insignificant.

The informant advised that they did not discuss

any particulars as to how the money was to be paid, in what

amounts, or when, however, there was no doubt left in his mind

that either FERRARO Or ALEX would

receive the payments.. The

informant advised that the remainder of the meeting was on

_friendly terms and that the meetingbroke up about 6:45 P.M.

when the informant went home.

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CG 92-373

The informant advised that about 12:30 A.M.

on December 3, 1958, he got a telephone call at his home

from DOMINIC ESPOSITO, who said that he wanted to see the

informant the following day at 9:00 at his hotel room at

the St. Claire Hotel,, 160 East Ohio Street. The informant

inquired as to how he would know what room to go to and

ESPOSITO said that he was there under an assumed name but

had forgotten how he had pronounced or spelled the assumed

name.

The informant said that the best DoMINIC could was

that it sounded like SPELLO,

Then DOMINIC said, "oh, the

hell with the name, just come up to Suite 20E".

The informant

advised that he made the meet at which time TROMBINA and

ESPOSITO said that there would be no more heat and GUS ALEX

had set him up in business and that they had provided the

informant with an excellent standing in the syndicate in

Chicago. They reiterated the fact that GUS ALEX would set

the informant up and he,

operation.

They advised the informant that they were going

to see ALEX and FERRARO that morning before leaving again for

New York and New Jersey.

DOMINIC ESPOSITO told the informant

that now he has a partner in Chicago, GUS ALEX, and that he,

DOMINIC, is also a partner in New Jersey and that the informant

is to contact DOMINIC by telephone and report the progress of

his booking enterprise.

The informant said that he put little credence

in the fact that DOMINIC ESPOSITO tried to cut in as a

partner and said that he simply humored ESPOSITO at the time

knowing full well that once he got going DOMINIC ESPOSITO would

receive nothing from any operation which he was running.

The

informant advised that as things turned out DOMINIC reälized

that he had made the informant look powerful in the eyes of

ALEX and that he, the informant, now was apparently going to

get a real good deal, which ESPOSITO wanted to cut himself

in on.

Information has previously been reported, showing

that GUS ALEX

is the syndicate leader who controls

the Policy

Racket on the

south side of Chicago.

Information has also

been developed through CG T-3 that ALEX is syndicate leader

of the Loop but has no interests on the south side.

This

informant stated that he knows reliably that RALPH PIERCE

controlled the south side for the syndicate. This seemingly

conflicting information appeared irreconcilable until the

following information was developed:

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CG 92-373

CG T-4, who has furnished reliable information

in the past, advised that he became involved in a dispute

concerning LENNY PATRICK, Chicago top hoodlum. He stated

that PATRICK was involved in a shakedown and that he went

to Lieutenant ENRIGHT, Acting Captain, 25th Police District,

in Chicago, in order to have ENRIGHT force PATRICK to cease

and desist in his shakedown. Lieutenant

ENRIGHT informed

the informant that he was unable to do anything about the

situation because PATRICK is connected with policy in

•.....

the 25th District and because policy is controlled in the

LOOP..

Lieutenant ENRIGHT stated that if PATRICK was operating

a book in the 25th' District, Lieutenant ENRIGHT could tell

him to stop his shakedown or threaten to close the book, but

since the policy, being operated in the Loop, was not being

controlled from Lieutenant ENRIGHT's district, ENRIGHT was,

therefore, powerless to stop the shakedown even though the

shakedown was occurring in the 25th District.

In view of the above

information furnished by

CG T-4, it would appear since ALEX controls the Loop and

policy

is controlled from the Loop, that ALEX does, in fact,

oversee the policy racket for the syndicate as has

been

previously reported.

2. Possible Involvement of

ALEX in Gang Crime in

Chicago

Sergeant CHARLES FITZGERALD, Chief of Detectives,

Chicago Police Department, advised SA LENARD A. WOLF, on

December 3, 1958,

that several State. Representatives are paid

$30,000.00 per year to

vote as they are told by the syndicate

in the Illinois State Legislature.

legislators have become popularly known as the West Side,

Bloc".

Sergeant FITZGERALD stated that he received information

from what he considers to be a reliable authority, who is in

a position to know that CLEM GRAVER, who was a member of the

Illinois State Legislature, and who was kidnapped in 1953,

was killed because he was a member of the"West Side Bloc"?

and therefore on the payroll of the syndicate and because he

refused to vote the way he was instructed by the syndicate.

Sergeant. FITZGERALD stated that his informant advised that GUS

ALEX waS

the triggerman for the syndicate, who disposed of

GRAVER•

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CG

92 - 373

The following informants are furnishing current

information

regarding ALEX:

CG 5973--C

CG 6232-C

CG 6272-C

The following informants have furnished recent

information concerning ALEX, but have not furnished any

information during the period covered by instant report:

CG 6215-C

CG 6241-C

The following Potential Criminal Informants are

furrishing current information concerning ALEX:

TURA FOLTZ

RAY LONGTREE

PAUL RAFFLES

In addition to the above, Sergeant MICHAEL A.

SERRITELLA of Evergreen Park, Illinois, Police Department,

who enjoys a certain amount of ALEX's confidence, having

grown up in ALEX's old neighborhood contemporaneously with

him,

is contacted regularly. He now resides two blocks from

ALEX's mother's residence in Evergreen Park. Also, Mr. and

Mrs. JOSEPH VINCENT, who reside across the street from ALEX'S

mother and brother,

are contacted regularly. It is noted that

ALEX receives his mail at his mother's address and visits

there often.

In order to aid in the determination of a possible

move on the part of ALEX and his wife, arrangements have been

perfected with BENJAMIN LEVIN, Superintendent of the Lake

View Post Office, which covers ALEX's residence at 4300 North

Marine Drive, Chicago.

Mr. LEVIN, who was last contacted

on October 13, 1958, advised that he will immediately contact

this office in the event he receives a removal notice from

either ALEX or his wife, MARIANNE RYAN. It is noted that it

ADMINISTRATIVE PAGE

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CG 92373

is not felt likely that ALEX would request a removal notice,

but it is

felt extremely likely that MARIANNE RYAN, due to

her career

of furnishing

as a professional model, would be most desirous

a forwarding address to the Post Office.

It is noted that CG 6272-C, who has furnished

reliable information in the past regarding ALEX, whom he

has known for approximately 20 years, was developed from an

initial approach regarding ALEX, last summer.

He has now

qualified as a criminal informant by furnishing information

of interest regarding practically all Chicago top hoodlums

plus information concerningmany other prominent Chicago

hoodlums and six top hoodlums of other offices.

Attention is drawn tó

the information set out

in the details of this report under the caption "Criminal

Activities" and subcaption "Postion of Gus Alex in Chicago

Crime Syndicate"

, wherein information obtained from CG 6232-C

(T-1) is set out.

Investigation conducted by the Newark Office

verified the existence of the places referred to in New Jersey

by the informant and the existence of hoodlums in New Jersey

who were contacted by the informant during his successful

in Chicago. As a matter of interest the Newark Office determined

that "TONY BANANAS" is identical with ANTONIO ROCCO CAPONIGRO,

Newark top hoodlum and that LOUIS "Coca Cola", is probably

identical with LOUIS DE BENEDETTO, an associate of RUGGERIO

BOIARDO, also known as "RICHIE the Boot", a former Newark

top hoodlum.

The Newark Office also determined that other hoodlums

contacted by the informant were well known New Jersey hoodlums.

ADMINISTRATIVE PAGE

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