CHAPTER FOUR: THE CRYSTAL BALL
In the spring of 1990, Oldham moved from his apartment in Harlem to a loft on Mott Street in downtown Manhattan to be closer to the organized crime action. Mott Street ran the length of Little Italy and Chinatown, neighborhoods that teemed with criminals. There was a Gambino gambling parlor next door to Oldham's place. Down the block stood a social club with a warning sign on the wall inside saying, "This place is bugged." A few blocks east, Asian gangsters from the Ghost Shadows and Flying Dragons strutted the streets on the lookout for interlopers. On Mulberry Street mobsters sat playing cards outside John Gotti's Ravenite Social Club. The mafiosi didn't even attempt to keep a low profile. They pulled up in Cadillacs with tinted windows and Landau rooves, greeting each other with elaborate hugs and two-cheek kisses. The mafia was kind of a tourist attraction, part of the thrill and legend of New York City.
"The neighborhood was swarming with criminal conspiracy. I would walk out of my apartment and literally run into John Gotti and Sammy the Bull Gravano on a 'walk-and-talk' to avoid electronic listening devices. They were always trailed by a mob bodyguard -- and an entourage of federal agents and NYPD cops trying to record their conversation. The proximity to organized crime got my juices flowing. A lot of cops lived in the suburbs. Guys would drive two hours each way every day to escape crime and the city. I wanted to be in the thick of it. I could walk to headquarters. I could go to Mare Chiaro or La Donna Rosa and listen to the wiseguys talking. I could go to New Jeannie's on Mulberry Street for the steamed sea bass and watch the Ghost Shadows enjoying their Tsingtao. What I was really doing was getting myself known in the community. I wanted the regular people running their businesses to know that I was a cop and that I lived in the neighborhood. I became friendly with the guy running the newsstand on my street. I got to know the deli owner where I bought milk and beer. Dry cleaning, shoeshine, even the beat cops from the precinct, I made it my business to get to know them. It was my version of setting up a Rotary Club. Local business owners were often the victims of organized crime. I wanted them to trust me. If they needed help, I wanted them to come to me."
Despite the omnipresence of law enforcement in lower Manhattan, the cops and federal agents working surveillance weren't apparent to the untrained eye. Oldham made a sport of spotting as many surreptitious surveillance operations as he could as he walked the streets of Little Italy and Chinatown. Easiest to see was the FBI agent in black oxfords trying to pretend he was a bum reading a newspaper in front of a flophouse at the corner of the Bowery and Grand Street. Helicopters circled overhead. Vans parked on corners had sophisticated listening instruments trained on tenement buildings and Italian restaurants. Curtained windows on apartments were set up to disguise surveillance. A mere thirty square blocks contained FBI organized crime and special operation squads, the New York state Joint Organized Crime Task Force, the DEA's Group 41, among others. There was the Jade Squad, a small unit that worked exclusively on Asian organized crime, as well as the Manhattan DA's rackets squad. The NYPD's Organized Crime Investigating Division competed with the Organized Crime Monitoring Unit of the Intelligence Division. Lower Manhattan was practically a law enforcement convention. FBI agents trailing a car outfitted with a "bird dog" -- a radio transmitter attached to the undercarriage -- would get their signal crossed with a detective bird-dogging a Luchese. The voice transmitters used for wiring an informant had three frequencies. Often a receiver tuned to Sicilian voices would be interrupted by a squawk of interference from another wire and the voices would be in English. Another squawk would follow and the voices would be speaking Cantonese.
"Territories overlapped in law enforcement the way they did in the mob. There were law enforcement families, each with their own history and camaraderie but also old scores to settle and divergent agendas. No one shared information. Everyone wanted to make the big busts. The FBI was the worst. They would let defendants walk on state charges to protect a federal prosecution. They weren't going to give up the glory."
In the spring of 1990, the modern age of the American gangster seemed to be at its peak. Popular culture and the mafia fed upon each other, a symbiotic relationship that conflated glamour and violence. John Gotti, celebrity killer and heroin dealer, had been acquitted of assault -- again. Charged with ordering the murder of the president of the New York Carpenters Union, Gotti's third not-guilty verdict in a row established him as an outlaw hero for some, and the nickname "Teflon Don" appeared regularly on the front pages of the tabloids. The Godfather, Part III had just been nominated for best picture in the Academy Awards. Francis Ford Coppola's conclusion to his trilogy romanticized the mafia as the embodiment of cavalleria rusticana ("rustic chivalry"). Martin Scorsese's Goodfellas was nominated for best picture and Joe Pesci won for best supporting actor. The characters in Goodfellas were composites but recognizable to those in the know as real Luchese made men and associates. Henry Hill, the main character, had been a two-bit cokehead drunk and Luchese hanger-on. "A stolen print of the film made the rounds of made guys before it was released. Inside the mob it was known Hill had given away Paul 'Paulie' Vario, a captain in the family, who died of a heart attack in prison. Hill was a rat. The boys were not entertained."
THE WINDOWS CASE
By May 1990, it seemed publicly that organized crime was rebounding from the convictions in the Commission Case. The opposite was the truth. Only days after painters union official Jimmy Bishop was murdered, the FBI was planning to arrest dozens of mafiosi in a prosecution that would come to be known as the Windows Case.
The investigation revolved around a mob scam to exploit a federal Department of Housing and Urban Development plan to finance the replacement of all the windows in New York City's public housing buildings. Heat consumption and the long-term cost of subsidized public housing for the poor would be reduced by using energy-efficient double-glazed thermal panes for 900,000 windows in government apartments throughout the city. The project would cost more than $150 million and take more than a decade to complete. It didn't take long for the mob to pounce. Peter Savino, a Genovese associate who controlled Local 580 of the Architectural and Ornamental Ironworkers Union, started a scheme of rigged bids and kickbacks. The collective bargaining agreements of the union were subverted, sweetheart deals were given out to keep labor costs down, and every window installed was "taxed" by the mafia to the tune of two dollars.
"It was common practice for law enforcement to exaggerate the sums of money involved in mafia corruption cases when arrests were made. Big bucks made the bust sound big and important. The same was true of drug cases. Millions of dollars' worth of pot or Quaaludes were seized, it was said, but using made-up prices. But the Windows Case really was a lucrative business for all five families. Millions truly were made. The proceeds bought a lot of Cadillacs and Brioni suits and thick gold bracelets."
In the Windows Case the disparate strands of the leak pattern started to come together. As indictments neared, the investigation had become an open secret in the organized crime industry of New York City -- both among mafia and law enforcement. In the mob, there was constant speculation about who was going to be indicted, and when. In the FBI, monthly reports on the investigation were written up tracking progress toward prosecution. FBI files were provided to the NYPD on a strictly confidential basis. Allegations, targets, action taken, and FBI actions planned were included in the comprehensive rundown of the investigation. But with so many co-conspirators it became difficult to keep intelligence confidential. The "takedown" date for arrests was set for the end of May 1990. More than a dozen wiseguys were to be arrested, including Gambino captain Peter Gotti, Genovese underboss Venero "Benny Eggs" Mangano, and Luchese boss Vic Amuso and underboss Anthony Casso. Arrests were planned to occur simultaneously in Brooklyn, Manhattan, Staten Island, Queens, and the Bronx. More than fifty NYPD detectives and federal agents were assigned to the takedown. It was going to be one of the biggest busts in the history of New York City. Timing was crucial.
Only days before they were to be arrested, Amuso and Casso vanished. Either they were clairvoyant, or they had been tipped off about the impending indictments. Detectives and agents working the Windows Case knew Amuso and Casso had to have been forewarned. In fact, Burt Kaplan's source in the Six-Three had told Kaplan the takedown was coming on the last Monday in May. Kaplan had passed word along to Casso, who then told Amuso. Going "on the lam" was a common tactic for mobsters fearing or facing indictment. It was learned that Amuso and Casso were not apprehensive about being charged with the murders of Jimmy Bishop and Otto Heidel or the attempted murder of Dominic Costa. All of those investigations were stalled and going nowhere. It was the pending RICO charges on the Windows Case that scattered them. Amuso disappeared first, leaving Casso to arrange for running the family in their absence. Casso spent the last weekend of May arranging continuity in the conduct of business for the Luchese crime family -- or what passed for continuity.
On the Sunday night before he went on the lam, Casso met with "Little AI" D'Arco at "the cannon" -- an antique cannon in Fort Hamilton, Brooklyn, a Revolutionary War historical site near the Verrazano-Narrows Bridge. Casso told D'Arco about the coming indictments and instructed him on the method the bosses would use to communicate with him and the other Lucheses without revealing their location to their colleagues or eavesdropping law enforcement officials. Pay phones around the city were identified and given a designated number. When Casso or Amuso wanted to contact an underling, they would send a numeric message to that man's beeper with the designated number of the pay phone making up the last digits of the code. Thus summoned, the recipient would go to the specified pay phone and wait for a call. As he left town Casso took Georgie Neck Zappola with him, a young and proven killer who could provide muscle if Casso needed it. At dawn on May 30, the FBI arrested fifteen top-echelon racketeers in raids throughout the city, including Genovese boss Vincent "the Chin" Gigante. Only hours before the FBI was set to swoop down, Casso slipped away in the dark of night.
FAT PETE
Gaspipe Casso had not shared his intelligence with his captain Fat Pete Chiodo. At dawn Chiodo was rousted and trucked off to jail, just like the others. Soon out on bail, Chiodo knew that in all likelihood he faced a long stretch in prison. With the Luchese bosses on the run, Fat Pete started to grow more and more nervous. "Going to trial was a crap shoot that was likely to turn into a turkey shoot. It was difficult to build a defense when you were guilty. But Chiodo didn't just have to calculate what the government might have on him. He had to worry about what his own brother gangsters might do to him. In the post-omerta age, the charges against Chiodo made him instantly suspect to his peers. What if he ratted, in return for a lesser sentence? The mafia was looking more and more like a sinking ship as the months passed in 1990, and rats were always the first to jump ship."
Chiodo became convinced Luchese bosses were out to get him. The signs of his peril were small but telling. Before he had been arrested, Chiodo had been promoted to capo and was supposed to be the personal representative for Casso. Yet Casso had grown distant. Chiodo had run the painters union for years but Amuso had given control to another Luchese without offering a reason why. Angered and resistant, Chiodo had argued with Amuso, a rash burst of insubordination. Soon after, Amuso had shouted at him in front of other people at a gathering at El Caribe, a sign of deep disrespect in the mafia. The past played over in Chiodo's memory. The previous Christmas, following their tradition, Casso and Chiodo had shared a lavish meal. Usually Casso picked up the tab but this year Casso had stiffed Chiodo for the bill. "Fat Pete was smart enough to put the pieces together. The language of the mob existed in gesture and implications. Measuring the mood of the bosses was a necessity. Falling out of favor could be fatal. The eye of suspicion, once cast, could not be taken away. Once a made guy started to feel like he was maybe being set up, his brain was always racing."
One thing Chiodo knew to a certitude was that Amuso and Casso would kill him if they suspected him of cooperating with the government. It didn't matter if he actually betrayed the family. A hunch was enough. The Luchese bosses would go to any length to protect themselves. He had seen firsthand their method of dealing with alleged snitches. The year before, Chiodo's crew had been given the hit on a Luchese associate named Sonny Morrissey, an Ornamental Ironworkers union official. Morrissey was good friends with Amuso and loyal to the family. But Morrissey had dealings with Peter Savino, the Genovese who had set up the Windows scam in the first place. The source Amuso and Casso had in law enforcement had told them Savino was a rat. Savino belonged to another family so the Luchese leaders couldn't kill him without starting a war. But as the Windows investigation closed in, the Luchese bosses had decided Morrissey had to go, along with three other mafia members, simply for their association with Savino. It didn't matter if Morrissey had gone bad. If Savino was a snitch it followed, in the minds of the Luchese bosses, that Morrissey had to be killed. Logical consistency, factual reality, personal history -- all were irrelevant.
Chiodo had chosen "Richie the Toupee" Pagliarulo, Tommy "Irish" Carew, and Michael "Mikey" DeSantis to help with the job. The crew lured Morrissey to a housing development in New Jersey, supposedly to meet with Amuso. Morrissey never figured he was in trouble himself; he had done nothing wrong. When Chiodo and his crew got to the development they took Morrissey to a half-constructed house. Chiodo went out the back door saying he was going to go find Amuso. The Toupee opened up on Morrissey. He had a silencer on his gun but it didn't work. He shot Morrissey twice but then his gun jammed. "The Lucheses weren't the gang who couldn't shoot straight -- they were the gang that couldn't clean a gun. Tommy Irish started firing. He had a six-shot but there were only four bullets in the thing. Chiodo heard the shots. He came back in to see what was going on. Morrissey was lying on the floor of the house, writhing in pain, begging to be killed. Morrissey's last words were that he wasn't a rat. In real life watching a man defend himself with his last breath is pretty goddamn convincing. Remembering this had to play on Chiodo. He had to know Morrissey wasn't a rat. Fat Pete had to know it didn't matter if he had ratted or not, he could just as easily be killed by Amuso and Casso."
After his arrest in 1990, Chiodo continued to follow the orders of Amuso and Casso. Told to report to a pay phone in Coney Island with documents related to the Windows Case prosecution, Chiodo did as he was told. But Chiodo trusted no one, not even the members of his own crew -- particularly members of his own crew. The pressure was unbearable. Chiodo faced years in prison but his fear of the Lucheses made him turn his own home into a prison. He wouldn't leave the house for any reason. His health was suffering. Chiodo was grossly overweight. Finally on Father's Day in 1990 -- June 18, only three weeks after he'd been arrested -- he suffered a heart attack. Chiodo was taken to a hospital on Staten Island. In the hospital, Chiodo was arrested again. This time, as had been predicted by Amuso and Casso's law enforcement source, Chiodo was charged with racketeering in the Painters Union Case -- the same investigation the late Jimmy Bishop had been cooperating with. The concentric circles of overlapping conspiracies were starting to tighten into nooses. The suspicions about Chiodo because of his indictment in the Windows Case were doubled by the new Painters prosecution. A short time later, released from the hospital and free on bail, Chiodo met with D'Arco, who told him other Lucheses were staying away from him because of Chiodo's legal jeopardy.
"Chiodo was caught in a squeeze play -- the mob was closing in on one side, and the law was closing in on the other. Every conversation was parsed by Fat Pete for hidden meanings or signs. The paranoia of Amuso and Casso was a self-fulfilling prophecy. If your mind fixed on the idea someone was going to turn against you and rat, and you started to act like he was going to turn against you, chances were good that person was going to turn against you. Fear contained the seeds of the mob's destruction -- self- destruction. "
As Chiodo stewed, holed up in his house, Amuso and Casso continued to roam the tristate area during the summer of 1990, a pair of wolves looking for any signs of weakness in their men. They met regularly with D'Arco at safe houses in Greenwich Village and Brooklyn. The pair arrived in a black Jeep wearing baseball caps and sunglasses, both men growing beards. Through D'Arco they tried to exercise control over the affairs of the family, but dysfunction was turning into chaos.
A simple man, with only a grade school education, D'Arco was valued by Amuso and Casso for his unthinking loyalty and obedience. Short and violent, with a broad Brooklyn accent and a quick temper, for decades D'Arco had only been an associate of the Lucheses as he ran a modest hamburger stand in Manhattan and tried to scratch out extra money from low-level crime. Finally, at the age of fifty he was "made" as a member of the Lucheses. Nicknamed "the Professor," an ironic reference to the dissonance of his preference for tweed jackets and his street thug attitude, Little Al was a reliable and ruthless killer. He had, for example, arranged for the murder of Thomas "Red" Gilmore, a Luchese associate killed because he had been overly insistent on meeting with Amuso. D'Arco had also bludgeoned a wiseguy named Mike Pappadio in the back of a bagel bakery. He had arranged for the murder of John Petrocelli, a cocaine addict who had hidden Gus Farace when he was on the run for killing DEA Agent Everett Hatcher.
"The hit list went on and on. D'Arco was the family servant who had to do all the dirty work. Amuso and Casso thought they were clever but they were suicidally stupid. If the first tool you used for every problem was a hammer, soon every problem started to look like the head of a nail. Betrayal was their leitmotif. Friends were used to murder friends, to the extent there was anything like friendship in the mob. A made man would be lured out by his closest associates. Any pretext would do. When he least expected it, before the realization could take shape in his mind, a gun was put to the back of his head and he was dead. Every wiseguy had examples of mobsters they knew who had been betrayed by their so-called buddies. For the Lucheses getting set up was more than an occupational hazard -- it was how business was done."
During the summer of 1990, Casso repeatedly ordered Chiodo to report to designated pay phones to receive instructions. Chiodo refused to comply. Appearing at an appointed time at an appointed place was a good way to get oneself killed. "One of the rules of life in the mafia was that if the boss wanted to see you, you had to report immediately. Rules in the mafia were broken all the time. They lied to each other constantly. They lied to themselves. Half the time they didn't know what was true themselves. But some things about the life were known and agreed. Ignoring calls from the boss was a definite go-directly-to-the-grave move. Like laying hands on another made man -- that could get you killed. Wiseguys were supposed to ask for permission if they wanted to leave town for any reason - holiday, illness, business. Close tabs were kept on everyone. Watching each other was a way of making sure the other guy didn't waver in his loyalty or go soft. It was one of the reasons for the claustrophobic atmosphere. They spent all their waking hours with each other, sitting around in social clubs conniving and scheming. The only thing they exercised was their paranoid imaginations. In a way the mafia had its own primitive form of a surveillance system. When Chiodo blew off Casso he was taking a big risk, and he knew it. The alternative was to answer Casso's call and be ordered to meet with him -- and wind up dead."
In August 1990, another Luchese, Bruno Facciola, was murdered. Chiodo had known Facciola for years. He also knew that Amuso had never liked Facciola, a feud dating back to a street brawl in the seventies. The order had been given to D'Arco to kill Facciola. D'Arco was told to leave a bird in Facciola's mouth after he had been killed -- not overly complex mob symbology for a cooperator who "sang" for law enforcement. The code name given to the job of clipping Facciola was "the wing." The setup was a cliche mob murder. Facciola was brought to an auto body shop on Foster Avenue in Brooklyn by his associate "Louie Bagels" Daidone. Facciola hadn't made it through the door of the shop before he glimpsed two other Lucheses waiting inside. Facciola tried to run but the three set upon him on the sidewalk with knives, stabbing him repeatedly. His body was thrown in the back of his car and driven to a street where Facciola was soon discovered by the police. There was indeed a bird shoved in his mouth -- a canary.
After Facciola's homicide, Chiodo went to the Burger Palace on West Street, in lower Manhattan, to meet with D'Arco. By then Chiodo had no crew of his own and most of his money-earning illegal activities had been reassigned to other members of the Luchese. With two outstanding indictments in the Windows and Painters Union Cases, Chiodo was being ostracized by other Lucheses. He wanted to know where he stood in the family, he said. D'Arco told him that he was still a captain but that he should keep a low profile. Chiodo asked why Facciola had been killed. It went without saying that Facciola had been murdered by his supposed partners-in-crime; under Amuso and Casso every time a Luchese was killed it was virtually certain the hit had been ordered by the bosses. D'Arco said that Amuso and Casso suspected Facciola had" gone bad so he had to go."
As the weeks passed, Chiodo's terror that he would be murdered carried him to the edge of a nervous breakdown -- or another heart attack. Facing certain conviction, he pleaded guilty to federal racketeering charges in the Painters Union Case and the Windows Case. According to Luchese protocol, Chiodo should ~ave received approval from Amuso and Casso before pleading out. Pleading guilty without permission amounted to yet another offense to Amuso and Casso. It also increased their suspicion that he was cooperating with the FBI. Under RICO, given his poor health, Chiodo was likely to spend the rest of his life behind bars. Still free while awaiting sentencing, Chiodo was at the moment of maximum pressure to strike a bargain with federal prosecutors to flip and become a CW Whispers started to circulate in the Luchese and Genovese families that Fat Pete was cooperating. Casso beeped Chiodo night and day but Chiodo ignored him. AI D'Arco told Chiodo to report to Casso. If Chiodo didn't talk to Casso there was no doubt Chiodo would be murdered on Casso's orders, D'Arco said, and the contract would be given to him. D'Arco said he didn't want to be forced to murder Fat Pete. Chiodo would be doing them both a favor if he talked to Casso.
Finally, trapped and unable to stand the pressure, Fat Pete went on the lam himself -- running away from the Lucheses, not the law. Chiodo headed south to Huntington, West Virginia, to scout an area within driving distance of the federal prison in Lexington, Kentucky, where he had been told he would serve his time. Chiodo rented a house for his family and stored his white limousine -- which he reported stolen in New York to collect on the insurance. Chiodo checked into the local Radisson. He introduced himself as "Joey" and began to lay the foundations for a life after he had served his time. His fantasy of leaving the mafia forever was seductive and delusional. He would open a small chain of pawnshops, he decided, incorporating his venture as Quicksilver Pawnbrokers, Inc. Chiodo came up with a plan to purchase abandoned coal mines and use them for disposing garbage. Salvatore "Sally Paper" Buttaro, an acquaintance of Chiodo's who specialized in paper recycling in New York City, agreed to move south as well. Together they would open a paper plant and run motels through their company Lazy Boy Inns. Never one to miss an opportunity for a quick, illegal buck, Chiodo took along ten illegal Joker Poker machines to put in bowling alleys and bars. Rehabilitation and life on the straight and narrow, for Chiodo, didn't mean he shouldn't make a few dollars on the side with a harmless scam like poker machines. For more than six months, Chiodo disappeared from sight. It was a winter of deadly discontent in the mafia.
MURDER SPREE
On January 9,1991, as reward for his fealty, Little Al D'Arco was made acting boss of the Lucheses by Vic Amuso and Anthony Casso. During the winter months the pair continued to duck and dodge around the city. The results were predictable. In February, Casso learned that wiseguy friends of Bruno Facciola in the Bronx faction were planning to take revenge against Amuso and Casso. The report of their plot had come from Burton Kaplan, who had been told by his source in the NYPD that there was a plan to kill the Luchese boss and underboss. Amuso and Casso immediately put out contracts on the plotters, Larry Taylor and Al "Flounderhead" Visconti.
On February 5, 1991, at ten-thirty at night, while sitting in his 1980 Oldsmobile on Third Street in Brooklyn, Larry Taylor was shot three times with a shotgun and once with a .38-caliber pistol. Unknown perpetrators fled on foot. On March 26,1991, Flounderhead Visconti walked into the lobby of his apartment building at 2020 East 41st Street in the Six- Three in Brooklyn. It was nearly seven in the evening. A young man of medium height and build wearing a baseball cap stepped in front of Visconti and shot him four times. The first two slugs shattered Visconti's face, breaking his eyeglasses. The third shot hit him in the left foot. The final shot struck Visconti's penis. There were no witnesses able to ID the shooter with any degree of specificity. Detectives in the Six-Three canvassed the area and interviewed Visconti's brother and surveilled the funeral at Guarino Funeral Home on Flatlands Avenue, noting the license plate numbers of the mourners. Otherwise, the investigation went nowhere.
In the imagination of Gaspipe Casso, it seemed reasonable that he could return to normal life after the Windows and Painters Union cases ended in acquittals. Once the dozens of mobsters indicted on RICO charges in those cases were found not guilty, he believed, there would be no case for the federal government to make against him. The multiple and multiplying murders were another matter; law enforcement had no idea of the role Casso had played in those crimes; the homicides were unsolved, and almost certainly unsolvable. Amuso and Casso had no reason to fear arrest on those counts.
During the early spring of 1991, Casso continued to meet with Al D'Arco, directing the business of the Lucheses. He told Al D'Arco that when it was safe for him to come out of hiding he was going to throw a party for himself. He was going to invite a big group of his associates -- Anthony "Curly" Russo, Ralph "Raffie" Cuomo, Danny "Squires" Latella, and Anthony "Bowat" Baratta, among others. They were the men who had taken advantage of him while he was on the lam, Casso told D'Arco. At his homecoming party, Casso said, he would kill all of them. In May of 1991, after months spent building the foundations for a new life in West Virginia, Fat Pete Chiodo came back to New York to make final arrangements to move his family south. Armed and moving around town with great caution, he set about ending what little remained of his affairs and interests in the city. On May 8, the day before he was supposed to drive south and leave New York forever, he and his elderly father went out to run errands -- a visit to the doctor, a stop at the bank, and last a drop by the local car repair shop to collect his father's car. At three-forty in the afternoon, Fat Pete pulled his Cadillac into a service bay of the Getty station at the corner of Fingerboard Road and Bay Street on Staten Island. Chiodo was having trouble with the fan belt on his Cadillac -- it was making a noise. Chiodo popped the hood. A large black sedan, four-door, followed Chiodo into the lot. A door swung open. An unknown male, white, mid-thirties, wearing a baseball cap and a black satin jacket, opened fire as he approached; the revolver had a silencer and the only sound was the ping of bullets on the pavement.
Chiodo turned and ran. The man entered the garage's office firing. Chiodo pulled a five-shot .22 from his belt holster. Before he could return fire, he was hit in the left arm and then the right leg by another shooter who had appeared on the other side of the room. Trying to flee and fire at the same time, Chiodo emptied his five-shot. He missed. The two gunmen moved to close range, riddling Chiodo's body. Chiodo was hit twelve times in total. Everyone else in the garage had taken cover. "We've been here too long!" the first shooter shouted. The gunmen began to panic -- surely Fat Pete had to be dead by now. "Let's get the fuck out of here!" he screamed. The two men ran to the waiting sedan and sped into the midday traffic on Fingerboard Road. Chiodo was barely breathing when the ambulance arrived -- but he was alive. The layers of fat on his corpulent body had saved his life.
"Chiodo was not a rat. Not yet. Their attempt to kill him understandably made him reconsider his position. When someone tries to murder you it tends to concentrate the mind. Chiodo was no exception. The more the demented duo tried to intimidate their people to stop them from talking, the more likely it was that their people would talk. Violence breeds violence. Violence also breeds fear. Fear was supposed to be a motivating factor. Amuso and Casso thought they could scare loyalty into their men. All they did was increase the speed at which events were spiraling out of control."
While he lay in the hospital Fat Pete agreed to become a cooperator with the federal government. Casso had achieved precisely the outcome he most dreaded. It was the first big break in the leak investigation. Chiodo was moved to the Veteran's Hospital in Brooklyn, under heavy protection, where he was interviewed by prosecutors and the FBI. Chiodo confessed to participating in four homicides, two attempted homicides, and two murder conspiracies.
As Chiodo talked to the authorities about the inner workings of the mafia, there was a concerted Luchese campaign to convince him to shut up. His elderly father was threatened with death by two white males unless his son "did the right thing." His grandmother's house in Gravesend, Brooklyn, was torched. Chiodo's sister, a mother of three and president of her local PTA in Bensonhurst, was shot in the head in broad daylight as she returned from driving her son to school. Terrified but stuck with the deal he had made, Chiodo cooperated.
In early July 1991, in debriefing sessions with FBI agents and federal prosecutors, Chiodo became the first mobster to explain to law enforcement how deeply the Lucheses had penetrated the NYPD. It wasn't just a matter of getting tips, or asking for an occasional favor, he told them. The Lucheses knew everything they wanted to know about law enforcement on the city, state, and federal levels. The inside source had given Amuso and Casso information that led to the demise of Otto Heidel in 1987 and the near-death experience of Dominic Costa in 1988. The source had given away the bugs and taps placed in Tiger Management's trailer in New Jersey. The instruction had come from Casso that Chiodo should be careful what he said when he was in the trailer. Removing the listening devices was not what Casso expected. Casso didn't want law enforcement to know that they knew about the operation. "Chiodo sending the gorilla in the fedora with the mobile home to look for the wires was beyond stupid. Casso was reluctant to tell Fat Pete anything after that. Using information from Casso's source required discretion."
Chiodo told the FBI that Amuso and Casso called their source the "crystal ball." The nickname came from the ability of their source to predict the future. The "crystal ball" was a running joke for the Luchese bosses, he said. "The 'crystal ball' is expensive," Amuso joked to Chiodo. Amuso told Chiodo the "crystal ball" had cost him the price of a Cadillac once.
The murder of Jimmy Bishop remained unsolved until Chiodo told FBI Special Agent John Flanagan and Task Force Detective Thomas Limberg the real story. The "crystal ball" had played a critical part in the homicide. A year earlier, in May 1990, Chiodo said, Casso had instructed him to clock Bishop's movements. Chiodo knew from past experience with Casso that this meant Bishop was going to be killed. Chiodo had gone to Bishop's home in a leafy well-to-do neighborhood in Queens with curving streets and cul-de-sacs. He decided it would be too difficult for a hit team to make a quick escape after killing Bishop. Chiodo had gone to Bishop's girlfriend's place in Whitestone -- an apartment building with a parking lot and nearby avenues where a car could easily blend in with traffic. Before the hit, Chiodo had met with Amuso and Casso in a room above a pizza parlor in Bensonhurst. Chiodo wanted to know why Bishop was being killed. Chiodo didn't think Bishop was the kind who would talk to law enforcement. He asked Amuso and Casso if they were certain Bishop had become a cooperator with law enforcement. "As sure as you're standing there," Amuso said. Chiodo told Flanagan and Limberg he knew what that meant. The "crystal ball" had told Amuso and Casso that Bishop had "gone bad." If the "crystal ball" said Bishop was a rat then as far as the Lucheses were concerned he was a rat. From Chiodo it was learned definitively that the NYPD had a cop -- or cops -- selling out the force.
LITTLE AL
The month that Chiodo was debriefed by the FBI about Bishop, Luchese boss Vie Amuso, still on the lam, was arrested in a shopping mall in Scranton, Pennsylvania, while talking on a pay phone. Amuso and Casso had recently been featured on an episode of the television show America's Most Wanted and a viewer recognized Amuso's face and tipped off the authorities. "But Amuso was not inclined to believe in the randomness of events in the universe. The reason he was caught was luck. Somebody in Scranton had seen him on TV and notified the police. But that wasn't a story Amuso could believe. He was sure he had been set up. Everything was a plot. Whoever had betrayed Amuso was in a world of woe-even though no one had betrayed him. Amuso decided he had been given away by Little Al D'Arco. There was no basis for the belief but that didn't take away from the fervor of the believer. It might have been Little Al became it had to be Little Al became kill Little AI. That was the mania of a murderer, the senseless sense of it."
The fate that befell Chiodo that summer and fall had not gone unnoticed by Al D'Arco -- he himself had been given the contract on Chiodo and knew the rationale. Like Chiodo, D'Arco knew how flimsy the pretext could be for the accusation that a mobster was a rat. During the summer of 1991, D'Arco started to become convinced Amuso and Casso were going to kill him next. Like Chiodo, D'Arco was reading between the lines. In early July, only weeks before Amuso's arrest, D'Arco had gone to a secret meeting with Amuso and Casso on Staten Island. At the meeting D'Arco was told he was no longer acting boss. The job of boss would be taken up by a "panel" of four Luchese captains. D'Arco was included in the group but the change was undeniably a demotion. The panel would convene every Wednesday, D'Arco was told. At the meeting, D'Arco was also told he no longer controlled the rackets at JFK Airport, one of the benefits bestowed on him by Amuso and Casso. D'Arco was angry. For years he had struggled financially but as acting boss he had started to earn as much as $10,000 a week. D'Arco took Amuso aside to complain. D'Arco said he had been loyal; he had faithfully passed on money to the bosses. During the exchange, D'Arco noticed that Amuso was averting his gaze and wouldn't look him in the eye. "Not looking at another wiseguy could be worse than looking at him the wrong way. The implication wasn't lost on D'Arco but there was nothing he could do about it then and there. He was supposedly still on the panel running the family. He went to the Wednesday meetings even after Amuso was arrested. But he was watchful. He couldn't trust Amuso and Casso, and he knew it."
By September of 1991, the luck of the Lucheses was nearing the end. On Friday, September 13, Chiodo testified in the Windows Case. The gangster, now weighing more than four hundred pounds, was rolled into court in an extra-wide wheelchair. To a riveted courtroom, he told how the mafia controlled $143 million worth of contracts to replace windows in New York public housing. It was the very treachery Amuso and Casso had desperately tried to avoid.
The next week, D'Arco killed on the orders of Casso for the last time. On Wednesday, September 18, a Luchese associate and professional architect named Anthony Fava was murdered. Fava was shot in the head, chest, and leg. He was also stabbed repeatedly in the heart, neck, and brain. The architect had a reputation as a swindler but he was the favored designer of many wiseguys. While Casso was on the lam, Fava had continued to construct a large house in Mill Basin for Casso. The project was being overseen by Casso's wife, Lillian. Before Fava was shot, Chiodo was the go-between for Casso, delivering more than $100,000 in cash to Fava against the cost of the construction.
D'Arco knew Anthony Fava. He had helped D'Arco with the construction of a sun porch. Casso said Fava had to be whacked because he knew about illegal transactions related to building Casso's house. Fava was also close to Chiodo and might cooperate. "Justifications for killing were getting dicier by the day. The killing was growing more frenetic and reckless. D'Arco was not a rocket scientist, and he wasn't a professor, as Casso jokingly called him, but he wasn't a complete idiot either. Casso was on his own, with Amuso now in jail. The way he was behaving it was as if he wanted to be caught and stopped. By threatening and conniving against and then killing the people closest to him, Casso was virtually ensuring the living ones would turn against him."
The day of Fava's murder, D'Arco attended the usual Wednesday meeting of the Luchese leadership panel in a midtown Manhattan hotel. The meeting was about dividing proceeds from gambling and bookmaking with a couple of Bonanno wiseguys. It was a seemingly routine day, the bureaucracy of crime grinding on. But after the meeting ended, D'Arco began to think he was being set up to be murdered right there, in the hotel room. As half a dozen wiseguys sat together, one gangster began to ramble on incoherently about taking lithium, a drug used to treat bipolar mental disorder. The conversation didn't make sense. It seemed like the other Lucheses were playing for time. D'Arco saw that Mikey DeSantis, a longtime member of Chiodo's crew, had a handgun tucked in the small of his back under his clothes. Carrying a gun in the presence of other wiseguys was a serious provocation. DeSantis went to the bathroom and returned. D'Arco noticed the gun was now missing. D'Arco knew Casso had been spreading a rumor that D'Arco was the" rat" responsible for Vic Amuso's arrest in Scranton. D'Arco also knew Amuso would want him dead if he believed the allegation. In the hotel room, D'Arco suddenly realized he would be killed if he didn't escape immediately. The lifelong gangster leapt to his feet and fled, bolting for the door and running out of the hotel and onto the street before he could be stopped, narrowly escaping with his life.
The next day, Thursday, September 19, Anthony Fava's body was found in the trunk of a white '83 Oldsmobile Cutlass in Bensonhurst. He was naked, apart from his boxer shorts. The discovery was reported in New York Newsday under the headline, "Mob Informant's Friend Stripped, Shot, Stabbed." The article reported on the mystery underlying the reasons for Fava's murder. Assistant U.S. Attorney Charles Rose, prosecutor of the Windows Case, would not comment. Federal sources said Chiodo expressed surprise over the death of Fava. "The guy was like, straight," Newsday quoted Chiodo. Fava had angered Casso by becoming intimate with Casso's wife after her husband left town, Newsday reported, "'Why else would you strip a guy before you killed him?' said one investigator. 'Clearly, someone was trying to make a point.'''
On Friday, September 20th, D'Arco received a call from his parole officer, who told D'Arco he had been contacted by the FBI. The FBI said that there was a contract out on D'Arco's life. That night, D'Arco put his family on an airplane for Hawaii and he went into hiding on Long Island.
Oldham took notice. "I figured something had happened to D'Arco right away. Little Al owned a restaurant in Little Italy called La Donna Rosa -- 'the pink lady,' in Italian. My girlfriend at the time worked there waiting tables. The place was clearly mobbed-up. There were rarely any customers and the maitre d' was always whispering on the phone. I would go there for the red sauce. That Friday night, my girlfriend came home pissed off and said the restaurant had been shuttered overnight. No one had told her it was closing. On Monday morning, I overheard the OCHU guys saying D'Arco and his son Little Joe had become cooperators. Within days it was confirmed that the rumor was right. The OCHU detectives always had the inside stuff first."
On Saturday, September 21,1991, Little AI D'Arco voluntarily gave himself up to the FBI. There were no charges outstanding against D'Arco at the time and he was not the target of any specific investigation. Law enforcement quickly learned how little they knew about his activities, or what had been going on inside the Luchese family. After mobsters like D'Arco and Chiodo agreed to cooperate, they were required to sit through a long series of interviews with the FBI and federal prosecutors known as "proffers." In order to qualify for protection from the government, D'Arco had to proffer an account of all criminal activity he had engaged in during his entire life -- every criminal he knew, every crime he knew about, everything. The sessions stretched out over weeks and months as mobsters searched through their memories trying to fire synapses. An enormous number of cases were closed in this fashion. Robberies and assaults and arsons were solved in astonishing numbers.
D'Arco explained how the Luchese were extorting the Italian Bread Association, driving up the price of crusty bread in New York with a 2 percent "tax" on all sales in the city. He described how the family controlled the Fruit and Produce Union and "taxed" millions of dollars' worth of fresh fruit and vegetables coming into New York through the Hunt's Point Market. The scams the Luchese ran over the decades tumbled out: gasoline tax theft, bootleg designer blue jeans, Medicaid claims, olive oil importation, vending machines, racetrack betting, heroin ... The list was seemingly endless. Murders, attempted murders, conspiracies to murder, were recited in detail. Hundreds of wiseguys were implicated. Dozens of mafiosi would be indicted as a result of the information provided by Chiodo and D'Arco.
"If Chiodo and D'Arco told the truth, the whole truth, and nothing but the truth, they would be immune from prosecution for those crimes. If they didn't -- if they shaded the truth, minimized their role, tried to leave out money they had hidden away somewhere -- the deal was off. They could then be prosecuted for everything. It was a huge incentive to be comprehensive -- and they were. In D'Arco's case the debriefing sessions resulted in more than a thousand pages of confessions. The professor's story made for great reading. It was longer than War and Peace and way more complicated. D'Arco confessed to his involvement in arranging the murder of Bruno Facciola. He confessed to conspiring in the Visconti and Taylor homicides. He explained why Fava the architect had been 'trunked' -- the mafia verb for leaving a body in a car. We had no idea, not one lousy clue, that D'Arco was involved in those killings. It was often the case during proffers that mobsters would confess to crimes we didn't know had occurred. People who had disappeared and were thought to have gone on the lam turned out to be homicide victims. Bodies buried in swamps in Canarsie were dug up. Seemingly unconnected events were connected. Proffers were an extremely powerful investigative tool."
The documents generated by the proffers were called "302s" because that was the number of the FBI form used to record the sessions. The 302s were internal documents, meant to convey the version of events a cooperator gave to agents and prosecutors during their proffer. Gangsters were rarely quoted. The language was stilted and bureaucratic. The 302s were for the official record, and needed to be intelligible to lawyers in offices in Washington with no understanding how life was actually lived in Brooklyn and Staten Island. There were no references to "motherfuckers" or "cocksuckers" or "rat fucks" -- the streams of expletives that were standard on the street.
Crucially, as Chiodo had done earlier, D'Arco explained during his debriefing sessions the variety of ways the Lucheses had developed sources inside law enforcement. Capo Sal Avellino paid $2,000 a month to "an agent" who provided him with FBI information, D'Arco said. They met on Long Island during the first week of every month. The money Avellino paid was on behalf of Amuso and Casso. According to D'Arco, a Luchese captain claimed he was tight with a detective in the Canarsie section of Brooklyn. D'Arco also said that an associate had a girlfriend who worked in a District Attorney's Office who was able to get information.
"There was nothing earth-shattering in this news of low-level penetration. But D'Arco also referred to another source -- the one that Gaspipe Casso had, the' crystal ball' Chiodo had described. D'Arco said Casso had access to the most secret intelligence in the NYPD. It was common for Casso to warn D'Arco where he was being bugged -- La Donna Rosa, in alleyways, in his car. D'Arco's statement corroborated what Chiodo had told the FBI months earlier. The terminology was different but the substance was the same. D'Arco didn't call the cops the 'crystal ball.' He told the FBI that Casso was paying 'the bulls' for information -- street shorthand for NYPD detectives. D'Arco didn't know the names or assignments of the police officers involved. But he did confirm that Casso had a double agent inside the NYPD who was effective at collecting all kinds of intelligence on our activities."
SAMMY THE BULL
The day in September 1991 that Al D'Arco became a cooperator, Gambino underboss Sammy "the Bull" Gravano sat in the Metropolitan Detention Center awaiting trial with his boss, John Gotti, on multiple RICO charges, including the murder of former Gambino boss Paul Castellano. The next day, September 22, Gravano's defense attorney came to the MDC on urgent business. Gossip ran rampant in the small world of mob lawyers in New York City as more mobsters began to betray their comrades. Speculation was rife about which wiseguy might be the next to flip. It was big news that a gangster like D'Arco had turned himself in and begun to cooperate. D'Arco could impact Gravano's case in many ways. D'Arco knew Gravano from the sit-downs at the 19th Hole when there were disputes between the Gambinos and Lucheses. D'Arco knew about Gravano's interests in the construction industry and trade unions. He knew about Gravano's extortion operations, on projects in Manhattan and Williamsburg, as well as his complicity in loan-sharking. Before Gravano and Gotti were arrested, D'Arco had carried a message from Casso that the two were about to be busted. The information, D'Arco told Gravano, came from Casso's source inside law enforcement -- "the bulls."
Despite this act of loyalty, D'Arco and Gravano had subsequently begun to feud over money and territory. They vied for control of the Concrete Workers Union and the Teamsters and the lucrative construction and cargo industry payoffs they brought in. While D'Arco had served as acting boss of the Lucheses, he was supposed to meet Gravano at Garguilio's, a Coney Island restaurant, to receive $30,000 due to the family as their end of an extortion payment from a company making prefabricated houses called Deluxe Homes. "D'Arco suspected Gravano was going to try to kill him so he went to the meet at Coney Island with a team of guys armed with Uzi sub machine guns. Gravano never turned up. D'Arco thought that Gravano had come for the meeting but he had seen the guns and men hiding and been scared off. There was no love lost between the two. The news that he was cooperating scared Gravano. There was an extremely good chance he would testify against Gravano."
As Gravano sat awaiting trial, he had begun bickering with Gotti, as the so-called Teflon Don instructed his underboss on how to conduct their defense. Gotti expected his underling to do as he was told. Gravano wanted to apply to have his racketeering charges "severed" from Gotti's so that the two men would be tried separately. In Underboss: Sammy the Bull Gravano's Story of Life in the Mafia, co-authored with Peter Maas, Gravano explained that he was certain he would be convicted if he was jointly tried with Gotti. Gravano believed, probably rightly, the boss would put the blame on the underboss and Gravano would carry the "weight" while Gotti walked again. Gotti's constant paranoia and bullying were also wearing on Gravano as he contemplated the prospect of a sentence of life without parole. For the first time, Gravano wrote, he considered the idea of cooperating with the government. In return for testifying against Gotti, he reasoned, he would go into the Witness Protection Program. He would have the chance for another life. He would be free of Gotti and the Gambinos. The logic of RICO was snaking through Gravano's mind, as it was intended to do.
On October 10, 1991, Gravano flipped. The process Gravano followed was well known to mob defense attorneys. First, a gangster client would suddenly become suspiciously unavailable. Second, the defense attorney would discover he had been fired. Third, inevitably, it would emerge that the client had made a deal with the federal government. The reason accused gangsters didn't confide in their own lawyers was to avoid word of their bargaining becoming known before they had come to terms with prosecutors. If Gravano's negotiations with the federal government leaked before he had been moved to safety he would almost certainly be killed by Gotti. Attorneys in the defense bar were notoriously loose-lipped. Gravano was not taking chances. The first thing Gravano said to federal agents was, "I want to change governments."
Flown to Quantico, the vast FBI training facility in Virginia, Gravano began to proffer. He was the highest-level mafia informant the government had ever had. Gravano had knowledge of the innermost secrets of organized crime. He described in detail John Gotti's plot to kill Paul Castellano, and how it was carried out in midtown Manhattan. He confessed to nineteen murders, most at the direction of Gotti. Gravano identified the juror that had been bribed during Gotti's acquittal on racketeering charges. Jury tampering had been suspected in Gotti's previous trials but the government had been unable to find hard proof. Gravano told the FBI that Gotti had an NYPD detective on his payroll. He told the FBI the detective had passed along information through a Gambino wiseguy who was his wife's cousin. The cop was known inside the Gambinos as "the baker."
"His real name was Detective William Peist from the Intelligence Division," Oldham recalled. "I knew Peist. I worked in the Intelligence Division in the mid-eighties with him. I was working on the Jewish desk. Peist was assigned to the mafia. He was an overweight white guy with one leg. He lost the leg in a car accident. Peist was a streetwise detective, with deep connections in organized crime from his time as a Brooklyn precinct cop. He was known as a hard worker. He was quiet, friendly. He had won medals. He had no history of disciplinary problems. No one had any idea Peist was working for John Gotti.
"Peist was making money from Gotti but that couldn't have been his true motivation. He'd gotten more than a million dollars from the insurance settlement for his injuries in the car accident, and he still sold information. Peist must have felt the NYPD didn't deserve his loyalty anymore. He didn't start as a criminal but he became one. An angry cop was a dangerous cop. He was punishing the police department. Peist denied it at first but in the end he pled guilty and was sentenced to seven years. John Gotti wasn't the Teflon Don because he had some supernatural power. He got away with defying law enforcement for as long as he did for the oldest reason in the book -- he had a crooked cop in his hip pocket."
By the end of 1991, the evidence of a leak inside NYPD had grown from a molehill to a mountain. Cops were going bad. Not just thieving or sticking up drug dealers, but actively undermining the business of law enforcement. "Detectives had gone over to the dark side. From that time forward, every mobster murder was inspected for the fingerprints of the involvement of law enforcement. Casso had murdered on the say-so of sworn police officers. Major investigations were being torn apart. Conspiracy theories abounded. Denial and disbelief had given way to suspicion and anger. Chiodo and D'Arco shed light on a more serious case than Peist's. The 'crystal ball' was fingering CIs like Bishop and Heidel and Costa. 'Bulls' were conspiring to murder. Members of the NYPD were getting people killed. Something had to be done."