Showing posts with label Outfit. Show all posts
Showing posts with label Outfit. Show all posts

24 October 2018

Eleven years and a fine for tax dodger Capone

On this date in 1931...

Federal Judge James H. Wilkerson on October 24, 1931, sentenced Chicago Outfit leader Al Capone to eleven years in prison and a $50,000 fine for evading income taxes. Capone also needed to pay $215,000 in back taxes plus interest.

Chicago Tribune

One week earlier, a jury convicted Capone on five tax counts. Capone was found guilty of the felonies of evading taxes for the years 1925, 1926 and 1927, and of the misdemeanors of failing to file income tax returns for 1928 and 1920. The jury did not convict on counts relating to tax evasion in the years 1924, 1928 and 1929.

At trial
Judge Wilkerson sentenced him to five years in federal prison on each of the felony convictions, with two of those sentences to run concurrently. He added a year in Cook County Jail for the two misdemeanors. Capone had already been locked up in county jail for contempt, after it was shown that he pretended to be ill in order to avoid appearing before a federal grand jury.

As he returned to county jail after sentencing, Capone was in an angry mood and threatened a reporter who tried to photograph him: "I'll knock your block off." Later he pleaded with newsmen to put their cameras away. "Think of my family," he said.

Capone was refused release on bail pending the legal appeals in his tax evasion case. He brought his request for bail to the U.S. Circuit Court of Appeals but that was denied on October 27. When his appeals were exhausted, with the Circuit Court's affirmation of his sentence in February 1932 and the U.S. Supreme Court's early May 1932 refusal to review his case, Capone was moved from Cook County Jail to Atlanta Federal Penitentiary. His ten-year federal prison sentence would allow his release on good behavior in seven and a half years.

Capone's term in Atlanta was relatively brief. In the summer of 1934, he was transfered to Alcatraz Prison on the West Coast. His health deterioriated at Alcatraz. When he was freed from custody in November 1939, he was immediately placed in a Baltimore hospital for treatment of paresis. His final years were spent in retirement at Palm Island, Miami Beach, Florida. He died January 25, 1947.

Sources:
  • "Capone gets writ; sent back to jail until appeal made," Bloomington IL Pantagraph, Oct. 27, 1931, p. 1.
  • "Capone in jail; prison next," Chicago Daily Tribune, Oct. 25, 1931, p. 1.
  • "Capone loses his last chance to keep out of pen," Ogden UT Standard Examiner, May 2, 1932, p. 1.
  • "FBI History: Famous Cases: Al Capone," Federal Bureau of Investigation, accessed June 27, 2010. https://www.fbi.gov/history/famous-cases/al-capone (previously: http://www.fbi.gov/libref/historic/famcases/capone/capone.htm).
  • "Prison tonight for Capone," Chicago Daily Tribune, May 3, 1932, p. 1.
  • Certificate of Death, Florida State Board of Health.
  • Florida State Census of 1945.
  • Kinsley, Philip, "U.S. jury convicts Capone," Chicago Daily Tribune, Oct. 18, 1931, p. 1.
  • Pickard, Edward W., "Chronology of the year 1931," Woodstock IL Daily Sentinel, Dec. 30, 1931, p. 3, and DeKalb IL Daily Chronicle, Dec. 31, 1931, p. 6.
  • Prisoner Index, Alcatraz Federal Penitentiary.
  • United States Census of 1940, Florida, Dade County, Miami Beach, Enumeration District 12-42A.
See also:

31 May 2018

He fought the law, and the law lost

Chicago Outfit boss DiFronzo,
89, dies following illness

John DiFronzo, reputed boss of the Chicago Outfit, died Sunday, May 27, 2018, at his home in River Grove, according to published reports. (Chicago Tribune reports he died May 28) He was eighty-nine years old.
DiFronzo

Criminal defense attorney Joe Lopez told the media that the crime boss suffered with Alzheimer's disease and had been "extremely ill."

DiFronzo was widely suspected of involvement in the brutal 1986 murders of brothers Anthony and Michael Spilotro (depicted in the film Casino). His role was discussed during the 2007 Family Secrets trial of Outfit leaders. But DiFronzo was not a defendant in Family Secrets, and federal prosecutors were unable to assemble a convincing case against him.

Attorney Lopez told CBS-Chicago that DiFronzo's greatest achievement was "beating the G."

The press frequently referred to DiFronzo as "No Nose." The nickname sprang from an attempted robbery back in 1949, though the details of that story are disputed. Some sources say DiFronzo jumped through a window to escape capture and had a piece of his nose sliced off by the breaking glass. (Actually, he neither jumped through a window nor escaped, but a glass injury cannot be ruled out.) Others say a bullet fired by a police officer tore off the nose...

Read a biography of John "No Nose" DiFronzo
on the American Mafia history website.


See also:

16 May 2017

1929: Capone meets City of Brotherly Love

Arrested with concealed weapon on his way
home from Atlantic City peace conference


May 16, 1929 - Chicago crime lord Al Capone and his lieutenant, Frank Rio, were stopped by police detectives outside the Stanley Theatre, southwest corner of Nineteenth and Market Streets in Philadelphia, Pennsylvania.

Washington Post
May 17, 1929
The notorious gangsters insisted they were in Philadelphia to kill only time, while waiting for the next Chicago-bound train. Detectives found that both men had handguns. Capone and Rio were arrested for carrying concealed deadly weapons.

Capone gave a detailed statement to authorities describing his situation: He and Rio were returning from a Chicago underworld peace conference at Atlantic City, New Jersey. They were driving to the North Philadelphia Station to catch the afternoon Broad Way Limited train back to Chicago. Automobile problems caused them to miss their train. The next train was scheduled to leave North Philadelphia some hours later, and the two gangsters decided to relax in the theater.

Capone's surprising stay in Pennsylvania began with a night in police lockup and would stretch on to a year. Treating the charge dismissively, the next day the Chicago boss and his aide pleaded guilty to weapons possession. They appeared stunned when Judge John E. Walsh sentenced them to one-year sentences in state prison.

The U.S. press immediately began speculating that Capone orchestrated his arrest and conviction in order to escape the vengeance of underworld rivals. Chicago's St. Valentine's Day Massacre occurred only three months earlier. Some claimed that former Chicago underworld leader Johnny Torrio had come out of retirement to order Capone to have himself arrested so things in the Windy City could cool down. No known data or reasonable analysis of available data supports these notions.

Capone certainly was not a willing prisoner. His attorney tried to postpone the trial, to achieve Capone's discharge on a bond that he would never reenter the city and to arrange a suspended sentence. Capone subsequently griped over the speed of his trial and the severity of his punishment, and he actively sought his release on appeal.

 


Atlantic City convention

Other legends sprang up relating to the meeting in Atlantic City. Some books and television programs have suggested that it was an organizational meeting - called by Salvatore "Charlie Luciano" Lucania, Johnny Torrio or Frank Costello - for a nationwide criminal syndicate. Others claim it was a sort of intervention by the nation's gang bosses to break Capone of his murderous habits or a disciplinary hearing against the Chicago gang leader.

The original source of these legends is difficult to pin down, and it seems they have snowballed over time. It was reported in May 1929 that Capone personally told Philadelphia Director of Public Safety Lemuel Schofield: "We stopped at the President Hotel, where I registered under an assumed name. 'Bugs' Moran, the leader of the North Side Gang, seven of whose men were killed on St. Valentine's Day, and three or four other Chicago gang leaders, whose names I don't care to mention, participated. We talked over our troubles for three days. We all agreed at the end of that time to sign on the dotted line, bury the past and forget warfare in the future, for the general good of all concerned." (New York Times, May 18, 1929, p. 1.)

When Herbert Asbury, who had a strong tendency toward sensationalism, published The Gangs of Chicago in 1940, he basically repeated the Capone account, calling the Atlantic City event a peace conference of Chicago bosses. Asbury's sensationalist tendency was satisfied merely by inflating the number of Chicago bosses to thirty.

In the same year (1940), Thompson and Raymond's Gang Rule in New York seems to have been the first book to claim that the meeting involved bosses from outside of Chicago. They placed the convention at the Hotel President and said attendees included "most of the leaders in the national Unione Siciliane." The purpose, according to the authors, was to put a stop to Sicilian and Italian gangland feuds and arrange a system for a panel of bosses to consider and approve of killings before they were performed. The authors claimed that Frank Costello developed those ideas.

Twenty-two years later, Bill Brennan further expanded the conference story and added details for his book, The Frank Costello Story. Brennan, apparently realizing that Costello was not a boss in 1929 and did not have the authority to call a nationwide conference of underworld leaders, portrayed the Hotel President gathering as a bit of an insurrection against old-line Mafia bosses like Giuseppe "Joe the Boss" Masseria. Providing no source, Brennan claimed that the attendees included Capone, Jake Guzik, Frankie Yale, Joe Adonis, Frank Erickson, Owen Madden, Max Hoff, George Remus, Solly Weissman, Larry Fay and members of Detroit's Purple Gang. There were problems with Brennan's account - not the least of which was the death of Frankie Yale almost a year earlier - but that did not stop other authors from picking up the ball and running with it.

President Hotel
The Chicago Crime Book of 1967, edited by Albert Halper, tried to return the story to its origins with added importance for former Chicago gang boss Torrio. A chapter written by Francis X. Bush said that the Atlantic City conference involved Capone, Torrio, Joe Aiello and Bugs Moran, along with their chief aides. The conference concluded, he said, with a formal written agreement establishing a crime syndicate in Chicago. Torrio was set up as its supreme arbiter. For some reason, Bush placed the meeting in June 1929, when Capone already was behind bars in Holmesburg County Jail (he was transferred to Eastern State Prison in August).

When Jack McPhaul took a shot at the Torrio life story in 1970's Johnny Torrio: First of the Gang Lords, he combined various elements from previous writers for his account of the convention. There was the Torrio supremacy of the Halper book, the imposed preservation of gangland peace of the Thompson and Raymond volume and the expansive guest list of Brennan. According to McPhaul, Torrio ordered Capone to attend the convention, which McPhaul viewed as a disciplinary hearing, and then ordered Capone to get himself arrested and imprisoned (apparently it did not matter to Torrio where Capone did this).

John Kobler, who handled many other phases of Capone's existence more responsibly in his 1971 book Capone: The Life and World of Al Capone, seems to have found the Atlantic City convention legends irresistible. According to Kobler, the convention lasted three days and featured numerous gang bosses from around the country, all agreeing to combine into a national syndicate run by an executive committee. "Cutting across all the old ethnic and national divisions," Kobler wrote, "there gathered around the table not only Italians and Sicilians, but also Jews, Irish and Slavs, more than thirty gangsters in all." (Big table!) The list of attendees was expanded from previous accounts to include Dutch Schultz, Nucky Johnson, Joe Saltis, Frank McErlane, Sam Lazar and Charles Schwartz.

Fred Cook largely echoed this account for his (emotionally titled) 1973 book, Mafia! But Cook, perhaps benefiting from access to the meeting minutes, said the Atlantic City convention resulted in four major decisions: 1. U.S. was carved into crime districts; 2. No boss could be killed without approval of a leadership commission; 3. Syndicate would gather a bribery fund for police and politicians; 4. A fund would be set up "to groom young gangsters for the Syndicate." The resistance of old Mafia bosses to this new syndicate, Cook wrote, made the Night of Sicilian Vespers (another grossly inflated legend) necessary.

The next year, Frank Costello: Prime Minister of the Underworld by George Wolf with Joseph DiMona stated that the Atlantic City meeting was called by Frank Costello and Johnny Torrio. The book claimed that Costello was then - in 1929 - at the height of his power (allowing him a gradual decline spread out over the next four and a half decades). The conference guest list was dramatically altered so that Chicago's Frank Nitti could be there, along with Lou Rothkopf, Moe Dalitz, Charles "King" Solomon, John Lazia, Joe Bernstein and Louis "Lepke" Buchalter. Wolf's book provided a detailed but sourceless look at the convention, referring at one point to the "crystal chandelier" that "dangled above the rich mahogany table and chairs, which gleamed from recent polishing." (Wolf neglected for some reason to explain that mahogany is an excellent wood choice for furniture at a seaside hotel, as its density makes it extremely resistant to rot.) Wolf said the convention set up a national crime syndicate overseen by a commission of leaders and arranged for Capone to temporarily serve time in prison so things could be smoothed out with his Chicago rivals.

Virgil W. Peterson further increased the 1929 Atlantic City guest list for his 1983 book, The Mob. He had Albert Anastasia, Vincent Mangano, Frank Scalise, Longie Zwillman, Willie Moretti and Meyer Lansky (honeymooning with his new bride) also meeting at the Hotel President. Peterson reported a widespread belief that Capone arranged for his own Philadelphia arrest after the convention, but he left it for the reader to decide between unlikely choices: 1. Capone was ordered to prison by other gang bosses in attendance at the Atlantic City convention; 2. Capone arranged after the convention to go to prison seeking protection from enemies. Apparently unworthy of consideration was the possibility that Capone was an out-of-area gangster caught carrying a concealed weapon and a local judge threw the book at him.

Despite decades of invention and exaggeration, the truth of the May 1929 conference in Atlantic City probably is quite close to the earliest accounts.


"Al Capone's long stay in Philly" 
in this back issue of Informer.

http://www.magcloud.com/browse/Issue/112621