IHO Order barring Bruno, Leo, Frank Caruso from Laborers Union
OFFICE OF THE INDEPENDENT HEARING OFFICER
LABORERS’ INTERNATIONAL UNION OF NORTH AMERICA
IN THE MATTER OF DOCKET NO.
BRUNO CARUSO, FRANK CARUSO, LEO :: 99-12D
CARUSO, AND JAMES DIFORTI
LOCAL UNIONS 5, 1001, AND 1006
CHICAGO DISTRICT COUNCIL
CHICAGO, ILLINOIS
ORDER AND MEMORANDUM
PROCEDURAL HISTORY
This matter comes before the Laborers’ International Union of North America (LIUNA) Independent Hearing Officer (IHO) pursuant to the LIUNA Constitutions and the Ethics and Disciplinary Procedure (EDP).
On March 3, 1999, Disciplinary Charges were filed by the LIUNA General Executive Board Attorney (GEB Attorney) against Bruno Caruso, Frank Caruso,’ Leo Caruso (Respondents), and James DiForti. The charges allege Respondents committed conduct proscribed by the LIUNA Constitutions and the EDP by membership in and knowing association with the Chicago Outfit of organized crime, violation of duty of loyalty, permitting LCN influence in LIUNA, and violation of constitutional duties. James DiForti died after the hearing in this matter was held, but before the briefing and ruling; as a result, the GEB Attorney requested that the IHO dismiss the charges against him. The charges against DiForti will be dismissed infra.
The Respondent in this case is Frank Michael Caruso, also known as Frank Caruso, Jr., and by the nicknames “Toots,” “Tootsie,” or “Babe.” The Respondent’s father is named Frank Tony Caruso and is known as Frank Caruso, Sr., or by the nickname “Skids.” Unless otherwise noted, “Frank Caruso” in this Order and Memorandum shall refer to the Respondent. References to the Respondent’s father shall be indicated as either “Frank `Skids’ Caruso” or “Frank Caruso, Sr.”
Bruno Caruso and Leo Caruso filed several pretrial motions to which the GEB Attorney responded. The IHO issued several orders addressing the pretrial motions. See 99-12D, IHO Orders (September 14 and 15, 1999). In response to Bruno Caruso and Leo Caruso’s Motion for Full Disclosure, the.II40 ordered the GEB Attorney to provide additional specifics regarding the charges. See 99-12D, IHO Order (September 15, 1999) and 99-12D, GEB Attorney’s Responses to IHO’s Orders (November 11, 1999). The IHO rescheduled the hearing several times for several months to accommodate the schedule of defense counsel and to permit one Respondent to hire new counsel due to his former counsel’s involvement in complex litigation.
The IHO held a pre-hearing conference on December 6, 1999, for the GEB Attorney and Respondents to preliminarily identify documents they intended to introduce at the hearing. The GEB Attorney provided a memorandum regarding his exhibits, their relevance, and admissibility. See 99-12D, GEB Attorney’s Memorandum re Exhibits and Undisputed Facts (December 6, 1999). The IHO held a hearing in Chicago, Illinois on January 10-12, 20-21, 26-27 and February 8-10, 21, 2000. The hearing testimony is contained in over 2000 pages of transcript and included twenty-eight witnesses and over one hundred exhibits. Bruno Caruso and Leo Caruso appeared at the conference and the hearing and were represented by counsel. Counsel for Frank Caruso and James DiForti communicated to the IHO that neither they nor their clients would attend the hearing but wanted to continue receiving copies of communications. Counsel for Local Union 1001 was permitted to attend but not actively participate in the hearing.
The IHO permitted Leo Caruso to reopen the record and allowed for additional testimony which was taken by telephone on May 1, 2000. The GEB Attorney and Respondents Bruno Caruso and Leo Caruso submitted post-hearing briefs.
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RECUSAL OF THE IHO
Bruno Caruso and Leo Caruso repeatedly moved for recusal of the IHO based upon the IHO having previously officiated at the trusteeship hearing for the Construction & General Laborers’ District Council of Chicago & Vicinity (Chicago District Council or CDC). See In the Matter of the Construction & General Laborers’ District Council of Chicago & Vicinity (In Re Chicago District Council), IHO Order and Memorandum, 97-30T (February 7, 1998). Prior to the hearing, the IHO denied the motions. See 99-12D, IHO Orders (September 14, 1999) and (December 9, 1999). The Respondents renewed their motion at the hearing and in their post–hearing briefs. As discussed fully under similar circumstances in In the Matter of John A. Matassa, Jr., IHO Order and Memorandum, 98-43D (May 12, 1999), the IHO denies the Motion for Recusal for the reasons which follow.
In the present matter, the IHO had previously heard testimony in trusteeship proceedings and made findings regarding allegations about Respondents and the Chicago Outfit based on the evidence he heard. There is no evidence that the IHO has any bias against Respondents. Findings in a prior factual matter do not evidence partiality. Absent any other evidence of partiality, the fact that the IHO has made factual findings in a previous matter regarding Respondents does not demonstrate that the IHO is partial to one party or the other. As stated by the IHO in similar circumstances in In the Matter of John Matassa, Jr., when the IHO first hears a trusteeship proceeding then subsequently hears a disciplinary proceeding, arising from the trusteeship hearing, “the IHO acts similarly to a judge who conducts a hearing on a preliminary injunction and makes findings with regard to granting the injunction, and then later hears a civil case arising from the same facts.” IHO Order and Memorandum, 98-43D (May 12, 1999). Both the LIUNA Appellate Officer and the United States District Court have previously upheld the
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IHO in his refusal to recuse himself in a disciplinary proceeding following a trusteeship proceeding involving the same individuals. In the Matter of John A. Matassa, Jr., 99-009-IHO (December 9, 1999); John A. Matassa, Jr. v. Laborers’ International Union of North America, No. 99C8158 (N.D.111. Aug. 29, 2000)(applying to the LIUNA IHO the judicial rule that “a judicial officer need not recuse himself because of knowledge gained under his judicial capacity in another case, so long as he bases his decision on the evidence presented in the case under consideration”) citing United States v. Bond, 847 F.2d 1233, 1241 (7th Cir. 1988), overruled on other grounds, and Ruthlege v. United States, 517 U.S. 292 (1996).
STANDARD OF REVIEW BY THE IHO
In In Re Chicago District Council, the IHO made numerous findings concerning Respondents and other LIUNA members regarding organized crime association. The issue in the trusteeship case was whether organized crime had infiltrated the Chicago District Council and whether trusteeship was warranted for the protection of the membership and LIUNA assets. The instant matter involves Respondents as individuals, and the issue is whether conduct alleged by the GEB Attorney warrants disciplinary action.
Although the IHO made findings in In Re Chicago District Council regarding the Respondents, the IHO will examine all the evidence regarding Respondents de novo as it applies to each Respondent individually. The GEB Attorney’s burden is, as in any LIUNA disciplinary matter, proof by a preponderance of the evidence.
MOTION TO SEVER DIFORTI AND FRANK CARUSO
Due to DiForti and Frank Caruso’s lack of participation at the hearing, Bruno Caruso and Leo Caruso made a Motion to Sever DiForti and Frank Caruso. The IHO denied the Motion to Sever as he found no danger of spillover prejudice to Bruno and Leo Caruso. The IHO is
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unaffected by the knowledge that Frank Caruso is Bruno Caruso’s brother and Leo Caruso’s cousin. The IHO does not give any weight to familial relationship between an individual associated with organized crime and a respondent based solely upon being related.
EVIDENTIARY CONSIDERATIONS
Robert Cooley’s Appearance Limited to Counsel
Robert Cooley is a protected witness whose current facial features and present identity have been modified and are closely guarded. Hearing Transcript (Tr.) 608, 611. The FBI made Cooley available to testify in person during the hearing on the condition that the only persons allowed to view his appearance be limited to the attorneys for the parties and the IHO. Tr. 603. Respondents’ counsel objected to their clients not being permitted to view Cooley in person during his testimony. Tr. 601-616. The IHO determined that all interests could be properly balanced by having the IHO, counsel for Respondents, and the GEB Attorney present in the room with Cooley during his testimony. The Respondents were permitted to hear the entire testimony via telephone and were permitted to consult with their counsel at any time via telephone and in addition were given a recess to consult with their attorneys in person prior to Cooley’s cross-examination. Tr. 618. Michael Corbitt’s Testimony
Michael Corbitt is a protected witness who for safety reasons testified via telephone from an undisclosed location. With the possible exception of security personnel, Michael Corbitt testified alone, without assistance from outside individuals. Tr. 770. Bruno Caruso and Leo Caruso objected to the testimony given by Michael Corbitt because he could not be placed under oath since the court reporter could not administer the oath by telephone. The IHO informed Corbitt that he still considered him to be under oath from prior testimony given in the CDC
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proceeding where Corbitt had been sworn.2 Corbitt was subject to cross-examination as well as questioning by the IHO.
During portions of Corbitt’s cross-examination, Corbitt refused to answer questions regarding his contact-with a former Assistant United States Attorney in Florida and questions regarding whether he had been rewarded for testifying before the IHO in the CDC proceeding or would be rewarded in the future for cooperation in this hearing. The Respondents objected and moved to strike his testimony. The IHO required the GEB Attorney to put into the record Corbitt’s reward, if any, for testifying before the IHO in the CDC Trusteeship Proceedings. The IHO concludes that Corbin’s sentence was reduced for his prior cooperation.
The IHO denied the Motion to Strike in his Order dated April 14, 2000. As explained fully in the April 14, 2000 Order, the IHO noted that a full and fair hearing in a LIUNA proceeding does not include the Confrontation Clause of the Sixth Amendment, and that striking the entire testimony is a drastic remedy within the discretion of the judge. The IHO found that Corbitt did respond to cross-examination on material points. (For more extensive findings and discussion see Order of April 14, 2000.) Charles “Guy” Bills’s Testimony As Prior Testimony of an Unavailable Witness
Charles “Guy” Bills (Bills) was scheduled to testify in the hearing before the IHO, but Bills died of a heart attack before he was able to do so. As a result, the GEB Attorney offered the transcript of Bills’s testimony from the CDC proceedings. The Respondents objected to the use of the prior testimony. In his order of April 14, 2000, the IHO admitted Bills’s testimony, finding that in the CDC proceedings there had been a predecessor in interest, motive, and
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2 In the hearing for the CDC trusteeship in 1997, Corbin testified in person before all attorneys at a federal correction facility in Florida.
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opportunity such that it was appropriate to admit the testimony as prior testimony of an unavailable witness. See 99-12D, IHO Order (April 14, 2000).
WITNESSES John J. O’Rourke _.
John J. O’Rourke (O’Rourke) has been an inspector with the LIUNA Inspector General’s (IG) Office since May 1996. Tr. 34-35. Prior to that time, O’Rourke served as a special agent for the Office of Naval Intelligence for six years and a special agent for the Federal Bureau of Investigation (FBI) for twenty-six years. Tr. 35. O’Rourke retired from the FBI in 1995 and spent over a year as an Inspector for the Cook County Sheriff’s Office assigned full-time to the FBI task force in Chicago. Id. Of the thirty-two years O’Rourke spent in law enforcement, twenty-three years specifically involved investigating organized crime in the Chicago area. Tr. 35-36. O’Rourke worked in the FBI Chicago field office investigating Chicago organized crime from approximately 1974 until May 1996. Tr. 35. During that time, O’Rourke participated in several hundred organized crime related investigations in Chicago and played a role in seventy-five to one hundred organized crime convictions. Tr. 36. O’Rourke has also served as a field police instructor for the FBI, in which position he conducted seminars and classes in organized crime and hostage negotiations for local and federal law enforcement agencies. Tr. 37.
O’Rourke personally participated in investigations of the organized crime 26th Street Crew from 1979 until 1984, then continued assisting with intelligence information until his retirement in 1995. Tr. 98-99. As one specific example, O’Rourke was the case agent on an investigation of extortion and credit transactions or loansharking, the subjects of which were Joseph “Shorty” LaMantia, Frank Caruso, Aldo Pisceitelli, and Fred “Bruno” Barbara. Tr. 148. As part of the investigation, O’Rourke had the opportunity to observe the interaction of those
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individuals. Tr. 151-52. As part of these investigations and intelligence gathering, O’Rourke personally spoke with associates and members of the Chicago Outfit who provided information about the 26th Street Crew. Tr. 99.
The GEB Attorney called O’Rourke as an expert witness. The use of expert witnesses has been accepted previously in labor litigation resulting from the consent decree between the Department of Justice and the International Brotherhood of Teamsters (IBT). In United States v. International Brotherhood of Teamsters (Senese and Talerico), 745 F.Supp. 908 (S.D.N.Y. 1989), an FBI agent gave and the court accepted expert testimony relating to organized crime membership based upon his reading of FBI crime reports, his own notes from attending FBI debriefings, depositions, testimony of unnamed cooperating witnesses, and FBI physical surveillance. The IHO has adopted this procedure. See In the Matter of Charles Miceli, IHO Order and Memorandum 98-11D (May 27, 1999); In the Matter of Salvatore Franco, IHO Order and Memorandum 98-04D (October 6, 1998); In the Matter ofJohn Matassa, Jr., IHO Order and Memorandum 98-43D (May 12, 1999); In the Matter of Construction & General Laborers’ District Council of Chicago & Vicinity, IHO Order and Memorandum 97-30T (February 7, 1998). Under this procedure, O’Rourke has previously been qualified and testified before the IHO as an expert in organized crime in the Chicago area. Tr. 37. See In the Matter of John Matassa, Jr., IHO Order and Memorandum 98-43D (May 12, 1999); In the Matter of Construction & General Laborers’ District Council of Chicago & Vicinity, IHO Order and Memorandum 97-30T (February 7, 1998). The IHO finds that O’Rourke is a qualified witness, expert in criminal investigations and the structure of organized crime in Chicago, and his testimony, in conformance with accepted investigative techniques, is reliable.
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In order to facilitate the proceedings, O’Rourke submitted an affidavit prior to the hearing indicating support for the opinion he rendered. Tr. 212. See GEB Ex. 105, Affidavit of John J. O’Rourke. O’Rourke prepared his affidavit based upon the results of interviews of cooperating witnesses and informants. Tr. 210. The practice of an expert witness submitting an affidavit based upon his conclusions and delineating the basis for those conclusions has been accepted in the disciplinary cases arising under the IBT consent decree in which former federal judge Fredrick Lacey acted as the hearing officer. See, e.g., United States v. International Brotherhood of Teamsters (Senese and Talerico), 745 F.Supp. 908 (S.D.N.Y. 1989). The affidavit did not substitute completely for O’Rourke’s testimony. The affidavit was provided to Respondents’ counsel before the hearing and in addition to the affidavit, O’Rourke appeared and testified extensively at the hearing. See Tr. 34-176, 189-525.
O’Rourke’s affidavit discussed the use of cooperating witnesses and confidential informants. A cooperating witness is a publicly identified individual who provides information about organized crime and agrees to testify in court. GEB Ex. 105, Affidavit of John J. O’Rourke. A confidential informant is an individual with information or in a position to obtain information who is not willing to be named publicly or testify. Tr. 44. Confidential informants are tracked statistically in various aspects of information supplied such as search warrants, Title III affidavits, and arrests. Tr. 44-45. The IHO’s evaluation of the confidential informants are discussed infra. O’Rourke testified that he had personally interviewed six identified cooperating witnesses and eight confidential informants who provided information regarding Frank Caruso, Bruno Caruso, Leo Caruso, or James DiForti and organized crime. Tr. 105-07, 222-23, 234, 241; GEB Ex. 105, Affidavit of John J. O’Rourke. The cooperating witnesses O’Rourke relied upon are discussed in detail as follows.
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Richard Mara
Richard John Mara (Mara) was a member of the 26th Street/Chinatown crew who later cooperated with the FBI and was interviewed and debriefed extensively by O’Rourke. Tr. 105.Mara testified for the federal government in several federal criminal cases and is currently in the witness security program. Tr. 105, 106, 215. Mara was a burglar, armed robber, and cartage thief who worked for Ron Jarrett and Frank Calabrese collecting juice loans. Tr. 105, 215. O’Rourke interviewed Mara on September 1996 and May 1997, specifically concerning the influence of organized crime on LIUNA in the Chicago area. Tr. 216; GEB Ex. 105, Affidavit of John J. O’Rourke T[ 22.
O’Rourke testified that the information Mara provided to him was corroborated in part by Joseph LaMantia’s plea agreement. Tr. 116-17. See GEB Ex. 48, Plea Agreement, United States v. Joseph Frank LaMantia, No. 93CR523-1 (N.D.Ill. September 26, 1996).
Gerald H Scarpelli
Gerald H. Scarpelli (Scarpelli) was the boss of James Peter “Duke” Basile, ran an enforcement crew, and was a hit man for the Ferriola crew. Tr. 106. O’Rourke and other agents attested Scarpelli in July 1998, after an extensive year-long investigation including consensual recordings made by Basile of meetings with Scarpelli and other members of the Ferriola crew. Id The night of Scarpelli’s arrest, O’Rourke debriefed him extensively and Scarpelli agreed to cooperate with the FBI. Tr. 106-07. See also Ex. 37, FBI FD-302 of Gerald Scarpelli by SAs John J. O’Rourke and Thomas B. Noble of July 18, 1988. The information provided by O’Rourke regarding Scarpelli in the present matter was offered mainly as corroboration and
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3 The FBI defines a cartage thief to be an individual engaged in the break-in of trains or theft of tractor-trailers moving interstate, the violation being a theft from interstate shipment. Tr. 137.
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organized crime background.
Joseph Granata
O’Rourke testified that Joseph Granata (Granata) was a member of organized crime and a participant in the Ferriola crew with contacts in other crews. Tr. 221. Granata’s father and brother Frank were also members of organized crime. Id. O’Rourke spoke with Granata on many occasions while O’Rourke was in the FBI. Tr. 222. Granata made undercover drug buys from organized crime figures on behalf of the FBI which later resulted in convictions. Tr. 223. After Granata entered the Witness Security Program, O’Rourke continued to speak with him on a regular basis. Tr. 222. Since working for LIUNA, O’Rourke has spoken with Granata approximately twenty to thirty times, the most recent being the same month as the hearing [January 2000]. Tr. 223.
James Peter Basile
O’Rourke testified that James Peter “Duke” or “Dukey” Basile (Basile) was known to the FBI as a lifelong associate of organized crime both through his own admission and through investigation by the FBI. Tr. 233. Basile agreed to cooperate with the FBI in approximately 1986 and did so until he surfaced in 1988 due to the arrest of Gerry Scarpelli. Id. While cooperating with the FBI, Basile conducted numerous telephone conversations, personal meetings with members of organized crime, such as Gerry Scarpelli, James Inendino, Rocky Infelise, and Michael Same, and furnished money to these individuals during the meetings which were recorded on a body recorder and monitored by FBI agents. Id. Basile testified in trials resulting in convictions including those of Rocky Infelise and his crew, and of Albert C. Tocco, who was the boss of the Chicago Heights crew. Tr. 233-34. O’Rourke has personally spoken
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with Basile over one hundred times and during a two-year period the FBI was speaking with and debriefing Basile on almost a daily basis. Tr. 234.
William Jahoda
O’Rourke gave testimony regarding William Jahoda (Jahoda). However, O’Rourke testified that Jahoda had stated that he did not know the Respondents and that he had only heard some comments regarding allegations of organized crime and the Respondents. As Jahoda’s information was vague and too removed from the Respondents, the IHO does not credit any of the testimony regarding Jahoda.
Umberto Filippi
Umberto Filippi was an Italian immigrant residing in Chicago who held many jobs as a waiter and maitre d’hotel and provided information to the FBI. Tr. 244. Filippi eventually became the caretaker, chauffeur, cook, and valet to Salvatore Termini, a member of organized crime, also known as Sal Mango. Id. Mango operated a company called National Consolidated Industries (NCI) which supplied eyeglass services to the City of Chicago and labor unions. Id Due to his position as chauffeur and caretaker, Filippi was able to observe Mango’s meetings with others. Id.
Confidential Informants
In addition to the named cooperating individuals, O’Rourke stated that he had received information from eleven confidential informants regarding the Respondents. O’Rourke utilized these statements to support his opinion that Respondents in this matter are associated with organized crime
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The IHO will accept hearsay statements of informants under very limited and closely monitored circumstances. In the Matter of John Matassa, Jr., IHO 98-431); In re Chicago
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District Council, IHO 97-30T. The IHO will permit a professional law enforcement officer, or former law enforcement officer, to relate informant testimony as part of his opinion that an individual is a member of or associated with organized crime. In re Chicago District Council, IHO 97-30T. The information must be supplied by an organization with a defined and qualified informant program and there must be a demonstration that the informants have been qualified and classified by the organization. Not all law enforcement organizations will be accepted by the IHO as sources of informant information.
In this matter, O’Rourke’s informants were all qualified and classified by the FBI. They had a demonstrated history of reliability. The testimony related by O’Rourke by these informants varied from being very specific to very general. The informant information, combined with other facts relied upon by O’Rourke was sufficient to satisfy the IHO that O’Rourke’s opinion should be given substantial weight.
Law Enforcement Testimony
In addition to O’Rourke’s testimony, the GEB Attorney presented evidence from other law enforcement personnel, Ellwood Egan, Peter Dignan, John Dineen, and Brian Murphy, concerning surveillances in which they had participated. Their backgrounds and experience are discussed as follows.
Ellwood Egan
Ellwood Egan (Egan) is a detective with the Chicago Police Department assigned to the FBI task force. Tr. 533. Egan has been involved in law enforcement for thirty-seven (37) years beginning as a patrolman until his promotion to detective at which time he began working in the homicide division in approximately 1967. Id. Egan worked in the homicide division for ten years then transferred to the Intelligence Division of the Chicago Police Department in the mid-
1970s, where he continued for approximately seventeen (17) years. Tr. 533-34. While with the Intelligence Division, Egan worked on organized crime related matters. Tr. 534. In 1988 or 1989, Egan was detailed to the FBI Task Force from the Chicago Police Department, a position he currently holds. TX. 535.
Peter F. Dignan
Peter F. Dignan (Dignan) is a lieutenant with the Chicago Police Department currently assigned to the 21st District. Tr. 1015. Dignan began his law enforcement career on March 31, 1969, as a patrol officer, and after three years was promoted to detective where he worked for the homicide unit for thirteen (13) years. Tr. 1016. After the thirteen-year period, Dignan served as a detective in the narcotics section for three (3) years, was promoted to sergeant in 1988, went to the patrol division for eighteen (18) months, and returned to the narcotics section as a sergeant for four (4) years. Id. Afterwards, Dignan served in the gambling unit, for approximately seven or eight months, where he investigated illegal gambling, syndicated gambling, organized crime, and related matters. Tr. 1016-17. After the gambling unit, Dignan was transferred to the intelligence section where his responsibilities included investigating crimes of a sensitive nature having to do mostly with organized crime. Tr. 1017-18. In 1998, Dignan was promoted to lieutenant and returned to the patrol division. Id. During the course of his career, Dignan has conducted approximately one thousand surveillances. Tr. 1018. Dignan has surveiled members of organized crime including Frank Sweis, John Monteleone, Alfonse Tornabene, and John Matassa. Tr. 1021
. John Dineen and Brian Murphy
An agreement was made among the GEB Attorney and counsel for Respondents that the testimony of John Dineen and Brian Murphy in the CDC proceeding would be admitted into
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evidence in this case as if they had testified live on direct, with both witnesses being available to be fully cross-examined at the hearing. Tr. 188.
John Dineen is an inspector on the staff of the LIUNA Inspector General. Tr. 288-89. Prior to working for ,LIUNA, Dineen spent thirty-eight years on the Chicago Police Department. Tr. 289.
Cooperating Former Organized Crime Associates
Three individuals, Robert J. Cooley, Michael Corbitt, and Charles Francis Bills, were formerly heavily involved with organized crime activities and socializing with organized crime associates and members. The three individuals all cooperated with law enforcement and became protected witnesses testifying at different trials. Their backgrounds are discussed as follows.
Robert J. Cooley
Robert J. Cooley (Cooley) was an attorney in Chicago for approximately eighteen (18) years, from 1970 to 1989, during which time he represented many individuals in organized crime and also spent a ten (10) year period in which he socialized with organized crime individuals approximately four to five times a week. Tr. 622-23. Cooley gambled heavily with organized crime bookmakers in Chicago during approximately eighteen (18) years in the 1970s and 80s, Tr. 623, 647. Cooley testified that during some portions of his gambling period, he placed bets worth over a million dollars a week with dozens of different bookmakers at the same time. Tr. 623-24. Cooley represented members of the Chicago Outfit, fixed cases for them by bribing judges to assure an outcome in a case, and made connections between them and some of the politicians in the city for different matters. Tr. 624. During a three (3) year period of time, from 1977 until almost 1981, Cooley testified that he was law partners with former state senator John D’Arco, and was involved in illegal activity nearly every day. Tr. 624-25. In 1981, Cooley
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broke away from John D’Arco and opened a legitimate law office only occasionally getting involved with illegal activities when requested to do so by Pat Marcy4 or others. Tr. 625.
Cooley became involved with bookmaking through an individual named Roland Borelli, then met Marco D’Amico with whom he placed bets and began betting on sporting events with Chicago Outfit bookmakers. Tr. 628-29. Cooley’s statement as to his participation in the Chicago Outfit’s illegal gambling operations are corroborated by the information provided in the guilty pleas of Robert M. Abbinanti and Roland Borelli. Both Abbinanti and Borelli described their participation in the illegal gambling and their knowledge of Cooley’s participation:
In 1995, Robert M. Abbinanti plead guilty to racketeering charges including illegal gambling and the collection of unlawful debt while carrying a firearm with silencer. GEB Ex. 4, Plea Agreement, United States v. Robert M. Abbinantt, No. 94 CR 723-3 (N.D. Ill. filed April 28, 1995); GEB Ex. 5, Judgment in a Criminal Case, United States v. Robert M. Abbinanti, No. 94 CR 723-3 (N.D. Ill. filed September 15, 1995).
As part of his plea agreement, Abbinanti admitted to participating in the D’Amico enterprise, a group of individuals associated for the purpose of illegal racketeering, bookmaking, high stakes poker, juice loans, extortion, and robbery. Id. Abbinanti also plead guilty to illegal gambling business and specifically acknowledged that between October and November 1989 he had repeatedly caused to be relayed to Robert Cooley, the wager line and received and accepted wagers on sporting events from Cooley totaling $775,500. Id.
� Abbinanti stated that he had given Cooley a code number to use to identify himself to the bookmaking clerk who recorded and reported Cooley’s wagers to a clearman employed by or associated with Marco D’Amico. Id. In addition, Abbinanti specifically stated that he had conspired with others in the D’Amico enterprise to rob a card game and discussed the participants and location with Cooley, and asked Cooley if anyone would bring pistols to the card game where the players were to be robbed. Id.
Pasquale (Pat) Marcy former Secretary of the First Ward was indicted for fixing cases but died before trial. Marcy and Fred Roti, a Chicago alderman indicted with him, are discussed more fully infra.
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On May 9, 1995, Roland Borelli pled guilty to illegal gambling operations, specifically sports bookmaking, in the Chicago area. GEB Ex. 15, Plea Agreement, and Ex. 16, Judgment in a Criminal Case, United States v. Borelli, 94 CR 723-4 (N.D. Ill. 1994). In his plea agreement Borelli stated that others involved in the illegal gambling business included Marco D’Amico and Robert M. Abbinanti. Plea Agreement at 3.
Borelli also acknowledged that between October 29, 1989 and November 26, 1989, he had given Cooley a code number to use in identifying himself to the bookmaking clerk and had received and accepted wagers on gambling events from Cooley totaling $141,000. Id Borelli also stated that he paid the D’Amico enterprise a street tax in order to operate his bookmaking office. Id
Cooley opened a restaurant with another individual named Arty Greco, which became a popular meeting location for organized crime figures and politicians, and as a result, Cooley began meeting many more individuals from the different factions of the Chicago Outfit. Tr. 639, In addition to legitimate patrons, the clientele at Greco’s included Angelo LaPietra, John “Jackie” Cerone,s Joe Lombardo, hit men, auto thieves, and members from every crime family faction in the area. Tr. 640.
In approximately 1977, Cooley began to practice law with John D’Arco in the First Ward. Tr. 638, 641. During the three an one half year period between 1977 to 1981, when he began practicing law with John D’Arco, he was involved with Pat Marcy, John D’Arco, Sr., and Fred Roti. Tr. 641. Cooley stated that “it became almost like I was one of them at that time.” Id. Cooley also stated that he was gambling almost every day during this time period and that his gambling continued during the 1970s and 1980s. Tr. 642, 647.
As a former case agent on an investigation of John Peter “Jackie” Cerone (Cerone) in the mid-1980s, O’Rourke testified that Cerone was the longtime chauffeur and bodyguard for Anthony Accardo, became underboss of the Chicago outfit, and was identified by informants through surveillance and wiretaps as a made member of organized crime and by cooperating subjects as a top leader of organized crime in Chicago. Tr. 84, 85. Cerone was convicted, along with Joseph John Aiuppa, Joseph Lombardo, and Angelo LaPietra, on conspiracy and gaming laws violations charges and sent to prison in approximately 1986. Tr. 84. See also GEB Ex. 21, United States v. Cerone, 830 F.2d 938 (8th Cir. 1987).
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In 1977, Pat Marcy and John D’Arco, Sr. asked Cooley to defend and fix a state case for Harry Aleman, one of the main hit men of the Chicago mob. Tr. 642-43. Cooley did so and Aleman was found not guilty. Tr. 643. Cooley testified that he had paid Judge Frank Wilson $10,000 and was later reimbursed for that sum by Pat Marcy. Id. Years later, Cooley gave the information regarding his activities in fixing the Aleman case to federal authorities, the case was reopened, and Harry Aleman was subsequently convicted .b Tr. 644. Cooley stated that his fixing of the Aleman case had heightened his stature among individuals such as Marco D’Amico and other individuals associated with organized crime, and he began receiving more business from all the different crime family factions. Tr. 645-46.
In the late 1980s, Cooley began cooperating with the FBI. Over a period of three and a half years, beginning in approximately March 1986 until November 1989, Cooley wore a body wire and recorded hundreds of conversations with organized crime individuals in the Chicago area. Tr. 621-22. Cooley testified in seven federal trials and the information he provided also resulted in part in another seven plea agreements. Tr. 620. The cases in which Cooley testified concerned corruption in the court system and interconnection between organized crime in Chicago and its involvement with either the court system or other racketeering activities. Tr. 621,
Cooley’s gambling in the organized crime syndicate, fixing cases, legal work for the mob, ownership of Greco’s,’ and heavy socializing with organized crime members enabled him to have a close view of the mob and familiarity with a number of the mob’s members and
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6 Since Harry Aleman himself had been involved in the case-fixing, he was able to be tried twice for murder. When Cooley surfaced as an informant, Judge Wilson committed suicide. Tr. 646. ‘ Cooley had partial ownership of Greco’s restaurant for approximately five or six years beginning in 1975 or 1976. Tr. 733.
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associates. Tr. 650-51. During the late 1970s, Cooley constantly socialized publicly with organized crime individuals he identified as Pat Marcy, Jackie Cerone, Marco D’Amico, Harry Aleman, Butchie Petrocelli, Tony Boresellino,s and individuals from the 26th Street crew, including Larry Pusitcri and Richie Catazone. Tr. 652-54.
Cooley testified that he gained his knowledge of who was in the organized crime hierarchy from daily conversations over years with a series of different people from the different factions of the mob. He said that it was important for him to know the hierarchy of the mob for his own safety and security, because the risk of insulting somebody at a top level of organized crime was dangerous. Tr. 655-56, 723.
The IHO finds that Cooley had been heavily involved with organized crime and that Cooley had been in such a position as to know the participants of organized crime and their relative positions within the organization. Cooley cooperated in several federal trials at a danger to himself, and Cooley’s information has been verified independently and has been found to be credible. The IHO finds Cooley’s testimony at the hearing to be credible. Michael Corbitt
Michael Corbitt was involved with organized crime in Chicago for a period of approximately thirty (30) years, from the time he was seventeen (17) years old until he was convicted and incarcerated in October 1987, and sentenced to twenty (20) years imprisonment. Tr. 772-73. From approximately 1960, when Corbitt was eighteen (18) years old, to 1964 or 1965, he worked at a gas station in Summit, Illinois, where several different crews of organized came used his storage facility for storing stolen material which had been hijacked from trucks.
8 Cooley stated that Tony Boresellino was a hit man for the North Side crew and that Cooley had been with him the night Boresellino was later killed. Tr. 654.
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Tr. 774. Corbitt provided the space in return for payment. Id The individuals using Corbitt’s storage were acting under the authority of Sam Giancana9 and Marshall Caifano, leaders of the Chicago Outfit. Id When Corbitt was due to become unemployed because the gas station was going to be sold by the owners, Sam Giancana approached him’ � and asked him if he wanted a new job as a police officer. Tr. 775. Giancana told Corbitt to meet with then mayor John Rust of Willow Springs, and after one meeting with Rust, Corbitt was appointed to the police department in approximately late 1964 or early 1965. Tr. 776. After Corbitt had become a police officer, Giancana arranged to meet Corbitt at a restaurant and told him to “remember who [his] friends are.” Tr. 777.
In 1973, Corbitt was named chief of police of Willow Springs and remained there until 1981 when he became a full-time member of an organized crime crew from the north side. Id. Corbitt remained as a sworn Sheriff s police officer and carried a badge and gun until his indictment in 1986. Tr. 778. Corbitt stated that he was able to continue as a police officer from 1981 to 1986 despite his full time activities as an organized crime member because he was given a no-show investigator’s job. Id Corbitt testified that he engaged in organized crime activity during his entire time as a police officer. Tr. 778-79.
As one of his organized crime activities, Corbitt acted as a courier of organized crime money. Tr. 782, 789-90. Corbitt stated that among the persons from whom he had received payment were A1 Pilotto, Joe Ferriola, John Monteleone, and Gerald Scarpelli. Tr. 782. Corbitt also stated that, between 1976 and approximately 1985, he delivered money to individuals
9 At the time Giancana was one of the top leaders of the Chicago Outfit. He eventually became the boss of the outfit. A contemporaneous crime writer described Ciancana as “the most powerful archcriminal in the world.” Ovid Demaris, Captive City 4 (1969). ‘� At the time, Corbitt was twenty years old.
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including Tony Accardo, Joey Aiuppa, Vincent Solano, Gus Alex, and Pat Marcy. Tr. 790.
Corbitt was in a position to be familiar with the individuals and their positions within organized crime because he dealt with them on a daily basis, facilitated the activities that they needed to be done, such as picking up money for bribing government officials from individuals involved in illegal activities in the community, running record checks on suspected surveillance vehicles, and performing electronic wiretaps and surveillances. Tr. 780-81. Corbitt testified that because he was dealt with and was around members of organized crime on a daily basis from the time he was seventeen (17) years old, he needed to know the structure and identity of people within the Chicago Outfit for both his legal protection and personal safety. Tr. 783-85, 788-89.
The IHO finds that Corbitt had been heavily involved with organized crime and that Corbitt had been in such a position as to know the participants of organized crime and their relative positions with the organization. Corbin’s information was detailed, and corroborated by other evidence of record and other witnesses. The IHO found Corbitt’s testimony at the hearing to be credible. Charles Francis “Guy” Bills
As discussed supra and in the IHO’s April 14 Order, Charles Francis “Guy” Bills (Bills) was scheduled to testify before the IHO in this matter, however, Bills died of a heart attack before the hearing. The IHO accepted his testimony of July 22, 1997, in the Chicago District Council case, as prior testimony of an unavailable witness.
Bills was involved with the Chicago Outfit, specifically the 26th Street Crew with Angelo LaPietra, from approximately 1977 to the early 1980s. CDC Transcript of July 22, 1997 (CDC Tr.) 1110. Bills testified that his organized crime activities included loaning money on the street on behalf of Angelo LaPietra’s crew, collecting street tax for both Angelo LaPietra and Albert
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Tocco’s crews, stealing vehicles, operating his own chop shop and owning a junk yard to process the stolen vehicles, cartage theft, working in his father’s bookmaking office. CDC Tr. 1112-19, 1172.
Bills cooperated with the FBI and met with organized crime individuals for recorded meetings. CDC Tr. 1109. Bills testified in two federal criminal trials regarding organized crime in Chicago, specifically street taxes and juice loans. CDC Tr. 1107-09. Bills was placed in the witness protection program. CDC Tr. 1107.
Bills testified that as someone involved in illegal activity, it was very important for him to be aware of the leadership and hierarchy of organized crime for his own protection. CDC Tr. 1132-1135. Bills’s testimony was detailed, consistent, and corroborated by other witnesses and evidence. Bills’s information has been verified independently and has been found to be reliable. The IHO finds Bills to be a credible witness. HEARSAY EVIDENCE
The IHO must base his decisions on reliable evidence through a review of what is probative and reliable. Reliable hearsay evidence is admissible in labor arbitrations. Associated Cleaning Consultants and International Brotherhood of Printing and Allied Trades Local 327, 94 LA 1246 (1990); In the Matter ofJoseph P. Crincoli, IHO Order and Memorandum, 97-04D (Oct. 27, 1997); In Re Chicago District Council, IHO 97-30T; Elkouri and Elkouri, How Arbitration Works (4`s ed. 1994). Hearsay evidence has been admitted regularly in union disciplinary proceedings arising under the Teamsters Consent Decree. United States v. IBT(Cimino), 964 F.2d 1308 (2d Cir. 1992), at 1312, affg United States v. IBT(Cirnino), 777 F.Supp. 1130 (S.D.N.Y. 1991); United States v. IBT (Senese & Talerico), 941 F.2d 1292 (2d Cir. 1991), at 1297, affg United States v. IBT (Senese & Talerico), 745 F. Supp. 908 (S.D.N.Y.
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1990). The test is whether the evidence is reliable. Senese & Talerico, 941 F.2d at 1298 (citing Richardson v. Perales, 402 U.S. 389, 402 (1971)). FINDINGS OF FACT Organized Crime ,,
1. The FBI defines organized crimell as a formally structured group whose objective is to obtain money through illegal activities and by the use of fear, violence, extortion, and graft. Tr. 47-48. Organized crime is in the business of crime for a profit. Tr. 48.
2. La Cosa Nostra (LCN) is also known as the “mob” or the “Mafia” and is one of the major organized crime groups in the United States. Id
3. Organized crime activities include illegal gambling: sports betting, crap games, and card games; activities which in turn support loansharking or “juice loans” 12 at high rates of interest. Tr. 54.
4. Bookmakers either work directly for certain organized crime figures or are independent bookmakers who pay a street tax and/or are fifty per cent (50%) partners with organized crime individuals. Tr. 629.
5. Other organized crime activities include extortion from illegal businesses, known as “street tax,” 13 and labor racketeering. Tr. 54.
++++++++++++++++++++++++++++++++++++++++
” For an extensive history of organized crime in the United States and the organizational structure of the Chicago Outfit, including terms and definitions, see In Re Chicago District Council, IHO 97-30T. 12 A “juice loan” is a Chicago term for a loan given by organized crime at a high rate of interest such as five percent a week totaling 260 percent per year. Tr. 55-56. The principal does not decrease until the entire loan is paid. Id The individuals receiving the loans know that if they do not repay, they face physical injury. Tr. 57. ” A “street tax” is an amount of money or tribute collected by organized crime from individuals conducting gray area businesses such as bookmaking and chopshops. The organized crime enforcers or collectors collect the tribute and the money is passed up the line of the outfit to the bosses. Tr. 55.
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6. Cooley described a street tax as payment of a certain amount of money required by organized crime figures of persons operating any illegal activity in the city, such as stealing cars, bookmaking, burglary, or fencing, to keep from either being beaten or killed. Tr. 649.
7. The.LCN utilizes its control of labor unions to neutralize competitive bidding and extort employers for labor peace. See generally, GEB Ex. 1-2. “Sometimes control arises from members of La Cosa Nostra who are also labor officials. Control includes the ability to direct the day-to-day affairs of a labor organization–such things as …who runs for office and who does not, who gets elected to union office…and the use of union power for corrupt purposes.” GEB Ex. 2, The Edge: Organized Crime, Business and the Labor Unions, President’s Commission on Organized Crime, Report to the President and the Attorney General, at 6.
8. The LCN is organized into groups known as families. The head of the family is known as the boss. Tr. 58. The boss is assisted by an underboss and by an advisor known as the consigliere. Id Individuals within the family are divided into smaller groups of soldiers called crews each headed by a lieutenant. Tr. 58-59.
9. A made member is an individual who has undergone a secret ceremony 14 and can share in the profits of organized crime. Tr. 51. An associate of organized crime is an individual who falls into one of two categories. The first type of associate is an individual known as a soldier who performs the daily functions of organized crime such as collecting gambling debts, enforcing threats, collecting street tax, delivering money up the chain to the bosses, conducting surveillance, and engaging in murder on orders of organized crime. 1d. The other type of associate is an individual who assists organized crimes by doing favors, such as corrupt police
1� The initiation process of the LCN was described in detail by an LCN associate in United States v. Pungitore, 910 F.2d 1084, 1097 (3d Cir.), cert. denied, 500 U.S. 915 (1990).
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officers, attorneys, business owners, and labor leaders. Id. Associates work for or in conjunction with made members to provide income for the organized crime family. Tr. 298.
10. When an individual becomes a made member, the fact of his becoming made spreads quickly in the organized crime community because he is entitled to a certain amount of respect. Tr. 53.
11. The FBI maintains an inventory of members and associates of organized crime. GEB Ex. 105, Affidavit of John J. O’Rourke. In order for the FBI to qualify an individual as an made member of organized crime, one of the following scenarios must be verified: either two known members must talk about a third individual as a made member on an FBI wiretap or in front of an undercover agent, or two qualified organized confidential informants must independently identify an individual as a made member. Tr. 53.
12. The LCN follows a code of conduct which includes: following the orders of
superiors without question, not providing information or assistance to law enforcement, paying
assessments imposed by superiors, respecting other members regardless of personal feelings, and
not disclosing anything about the organization to outsiders. Tr. 49-50. GEB Ex. 105, Affidavit
of John J. O’Rourke.
The Chicago Outfit
13. The GEB Attorney introduced several exhibits to demonstrate the existence and structure of organized crime in Chicago. See e.g., GEB Ex. 1-3. The IHO has previously discussed a detailed history of organized crime in general, its background in Chicago, and its structure. See e.g. In re Chicago District Council, IHO 97-30T and Fallacara, IHO 96-651).
14. The Chicago area faction of the LCN is known as the Chicago Outfit. Tr. 48. The Chicago Outfit is comprised of operating crews. Tr. 64. The crew structure in Chicago is
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based on geography, with different areas of the city being operated by different crews. Id. Examples of different geographical crews include the Cicero crew, the 26th Street/Chinatown crew, the Elmwood Park Crew, the North Side/Rush Street crew, the Grand Avenue crew, the Chicago Heights crew, and the Melrose Park crew. Ex. 37, FBI FD-302 of Gerald Scarpelli by SAs John J. O’Rourke and Thomas B. Noble of July 18, 1988.
15. The 26th Street Crew was centered around the old Italian neighborhood at 26th Street and Princeton Avenue in Chicago, and was also known as the Chinatown crew. Id Cooley testified that the 26th Street crew was involved in hijacking, loan-sharking, gambling, and many killings which took place in the Chicago area. Tr. 659.
16. Cooley testified that the Hungry Hound was a hot dog stand on 26th Street a few blocks west of Wentworth and was a convenient meeting place for the main organized crime family in the area. Tr. 657-58.
17. The Respondents in this case were alleged to have associated with several individuals connected to the 26th Street crew. In order to facilitate an understanding of the significance of these allegations, and to provide a better frame of reference, the following is a brief summary of some relevant Chicago Outfit individuals.
Marco D Amico
18. O’Rourke testified that Marco D’Amico was a principal member of the Elmwood Park crew, was a long time member of the Chicago Outfit, and owned several hot dog stands throughout the north side of Chicago. Tr. 132; see also Ex. 37, FBI FD-302 of Gerald Scarpelli by SAs John J. O’Rourke and Thomas B. Noble of July 18, 1988. O’Rourke further testified that D’Amico had been the object of an investigation by the FBI, was indicted, pled guilty, and is currently in federal prison. Tr. 132.
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19. Cooley testified that during his last three years in night law school, while working
as a policeman during the day, he became involved with Marco D’Amico and became very
friendly with him going out socially together two or three nights a week. Tr. 633. Cooley
testified that when he: originally met- Marco D’Amico, in 1967 or 1968, he thought Marco
D’Amico was merely a bookmaker. Tr. 629-30. However, through time, Cooley learned that
Marco D’Amico was very well connected with the organized crime family in the Elmwood Park
area, and in charge of many gambling operations for a large number of the bookmakers
throughout the city. Tr. 629-31. Cooley began playing cards at Cooley’s house, going to
D’Amico’s social club once or twice a week, and drinking three or four nights a week with
D’Amico and his friends at different bars and clubs. Tr. 633-34. When Cooley graduated from
law school and passed the bar examination, he immediately began receiving a substantial
quantity of legal business from D’Amico and was introduced to many other organized crime
figures in the city through him. Tr. 630, 635.
20. Cooley testified that Marco D’Amico began referring gambling cases and other cases to him which D’Amico indicated were from the 26th Street Crew, which Cooley knew to be trite because the individuals had been arrested in that vicinity. Tr. 638.
Frank “Skids” Caruso
21. Frank “Skids” Caruso is the father of Respondents Frank Caruso and Bruno Caruso, and the uncle of Respondent Leo Caruso. Skids Caruso was the boss of the 26th Street crew from the 1950s to approximately 1980. Bills testified that his father had been partners with Skids Caruso in a bookmaking operation in the 26th Street area. CDC Tr. 1124-26. Upon Skids Caruso’s death, Angelo LaPietra became the boss of the 26th Street crew.
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Angelo LaPietra
22. Based upon his interviews and investigations, and review of FBI files at the time, O’Rourke testified that Angelo LaPietra was the boss of the 26th Street/Chinatown/Southside crew from approximately 1980 until his imprisonment in 1986. Tr. 79, 99, 100. See also GEB Ex. 54, FBI FD-302 report of Richard Mara by SA Ray Shyrock. Angelo LaPietra was convicted of conspiracy 15 to travel in interstate commerce and use interstate facilities with the intent to promote hidden financial and management interests in casinos in violation of Nevada gaming laws. GEB Ex. 21, United States v. Cerone, 830 F.2d 938 (8th Cir. 1986). Part of the financing for the casinos was done through the Teamsters Union pension funds. Id After his incarceration, Angelo LaPietra was replaced as boss by his brother James LaPietra. Tr. 99-100, 108. After James LaPietra died, he was replaced by John Monteleone. Tr. 99-100.
23. Cooley testified that it was his understanding that Angelo LaPietra was the head of the 26th Street Crew and a vicious and feared individual. Tr. 715. Cooley testified that based upon his interactions with the mob as someone who gambled with them, fixed cases for them, and heavily socialized with them, it was made clear to him that Angelo LaPietra was the ultimate boss of the crew. Tr. 723-24.
John Monteleone
24. O’Rourke testified that he had interviewed, served subpoenas upon, and conducted surveillance of Monteleone in connection with an investigation concerning Rocky
” Among those convicted with Angelo LaPietra were John Peter Cerone, Joseph John Aiuppa, and Joseph Lombardo.
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Infelisetb and the Circero Crew. Tr. 89, 100-01. At the time, John Monteleone was part of the Cicero group and a lieutenant to Rocky Infelise. Tr. 100. O’Rourke testified that Monteleone consistently appeared during surveilled meetings with Infelise and other members of the crew. Tr. 100-01. ..
25. In addition to the surveillance information, O’Rourke testified that James Peter “Dukey” Basile, an enforcer and collector for the Cicero crew, had told him that Monteleone was in the inner circle of the Cicero crew and a longtime made member of organized crime. Tr. 101. Basile had been working with the FBI and wearing a body recorder during meetings with and taking money to Monteleone. Id. O’Rourke testified that a consensus of most of the individuals he interviewed, including past and president confidential informants, a review of FBI and Chicago Police intelligence files, and interviews with cooperating witnesses such as Richard Mara, Gerald Scarpelli, James Peter Basile, and Joseph Granata all identified Monteleone as a top lieutenant for Infelise and currently a top boss in the mob. Tr. 103. See also Ex. 37, FBI FD302 of Gerald Scarpelli by SAs John J. O’Rourke and Thomas B. Noble of July 18, 1988.
26. Based upon this contact and O’Rourke’s twenty-three year experience of investigating organized crime, including informant information, Title III transcripts, cooperating subjects he debriefed, and based on interviews with law enforcement personnel, O’Rourke testified that Monteleone was a longtime and prominent member of the Chicago Outfit and a close associate of Rocky Infelise. Tr. 89, 91-92. In addition, based on interviews with Chicago Police Intelligence, FBI agents, members of the organized crime task force, and independent
” Ernest Rocco “Rocky” Infelise was the boss of the Cicero crew after having replaced Joe Ferriola who had advanced to become boss of the mob. Tr. 102. See also Ex. 37, FBI FD-302 of Gerald Scarpelli by SAs John J. O’Rourke and Thomas B. Noble of July 18, 1988. Infelise was convicted of racketeering, sentenced to approximately 18 to 20 years in prison, and incarcerated. Tr. 102.
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agreement among confidential informants, O’Rourke is of the opinion that John Monteleone is the current leader of the 26th Street/Chinatown crew. Tr. 91-92.
27. Ellwood Egan t7 testified that in 1994, he understood John Monteleone to be a boss of organized crime outfit that would handle the west side and the south side area for organized crime. Tr. 537. Egan testified that during surveillance in the 1970s, he had observed Monteleone meeting with other individuals he knew to be members of organized crime such as Angelo LaPietra, Joey Aiuppa, Jimmy LaPietra, and Ernest “Rocky” Infelise. Tr. 538.
28. Corbitt testified that during the late 1970s and early 1980s, John Monteleone operated a gambling casino type operation, a high stakes card game, and gambling operation for approximately two years. Tr. 783. Corbin understood John Monteleone to be a boss in organized crime and stated that as a police officer he had received payoffs directly from Monteleone and from individuals who worked for Monteleone. Id. Corbitt testified that he had a direct payoff contact with John Monteleone because Monteleone was involved in an operation in Willow Springs and Corbitt was collecting a monthly fee from Monteleone to allow the business to operate unlicensed and illegally. Tr. 802-03.
Alfred Pilotto
29. O’Rourke testified that the South Suburban/Chicago Heights crew was operated by Alfred “AI” Pilotto in the past and is currently under the control of John Monteleone. Tr. 64.
30. Al Pilotto and James Caporale were convicted and served a prison sentence for “conspiracy to conduct and participate, directly and indirectly, in the conduct of the affairs of the Laborers Union through a pattern of racketeering” in which they and others received kickbacks from benefits and insurance contracts with the union. GEB Ex. 7, Judgment and
” As discussed supra, Egan was a Chicago Police Detective assigned to the FBI task force.
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Probation/Commitment Order, United States v. Atked Pilotto, No. 81-230-CR-JWK (S.D.Fl.) and Ex. 8, Judgment and Probation/Commitment Order, United States v. James Caporale, No. 81-230-CR-JW (S.D.Fl.); GEB Ex. 11, UnitedStates v. Caporale, 806 F.2d 1487 (11th Cir. 1986). See also Tr. 75; GEB Ex. 2; GEB Ex. 10, Minutes of the Jury, United States v. Anthony Accardo, No. 81-230-CR-JWK (S.D.Fl. October 18, 1982).
31. At the time of the conspiracy, Pilotto was the President of Local 5, Vice President of the CDC, a trustee of the Chicago Dental Plan, and a special LIUNA International Representative. GEB Ex. 6, Grand Jury Charges, United States v. Anthony Accardo, No. 81-230CR-ALH (S.D.Fl.). Caporale was the Secretary-Treasurer of the CDC, trustee of the Chicago Dental Plan, and a special LIUNA International Representative. Tr. 75; GEB Ex. 6, Grand Jury Charges, United States v. Anthony Accardo, No. 81-230-CR-ALH (S.D.Fl.). On October 6, 1982, James Caporale was ordered to forfeit all his LIUNA offices. GEB Ex. 9, Order and Judgment of Forfeiture of Offices and Positions of Employment, United States v. James Caporale, No. 81-230-Cr-JWK (S.D.Fl. October 6, 1982).12
32. Thomas John Pinkard is Alfred Pilotto’s grandson. Tr. 938. Pinkard’s father, James Pinkard was also a former member of Local 5, and a defendant in the same indictment. Tr. 940. Pinkard testified that A1 Pilotto had been President of Local 5 and Vice President of the District Council until 1982 when he gave up his positions due to his indictment and conviction which had been related to organized crime activity and stealing money from LIIJNA funds. Tr. 939-40. Pinkard testified that James Pinkard worked for Pinkard & Associates, which handled eligibility for member benefits and that the scheme to defraud the pension fund had included
” The IHO notes that forfeiture of union office was a type of remedy sometimes requested by the Department of Justice in the 1980s which was subsequently found to be unenforceable.
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optical and dental companies. Tr. 940-41.
33. Bills testified that he collected street taxes and paid them to Al Tocco who reported to Al Pilotto. CDC Tr. 1172. Bills stated that he had observed others treat A1 Pilotto as a mob boss. CDC Tr. 1173-74.
Joseph “Shorty” La Mantia
34. On September 26, 1996, Joseph Frank LaMantia entered into a plea agreement with the federal government in which he admitted that beginning in or before 1978 and continuing through October 1989, he conducted and participated in the affairs of the 26th Street Crew, also known as the Southside Crew or Chinatown Crew, and that the crew was a part of the mob or Outfit. GEB Ex. 48, Plea Agreement, United States v. Joseph Frank LaMantia, No. 93CR523-1 (N.D.Ill. September 26, 1996).
35. In his plea agreement, LaMantia also stated that the 26th Street Crew’s activities included conducting an illegal gambling business, making and financing extortionate extensions of credit known as “juice loans,” intimidation, and extortion. LaMantia stated that he had personally conducted and participated on a supervisory or mid-level supervisory basis in the crew’s illegal gambling business and collection of gambling debts, juice loans, and street tax payments. Id
36. During a July 1980 interview of Richard Mara, in which O’Rourke participated
and prepared a report, Mara indicated he had known Joseph Frank “Shorty” LaMantia all of his
life, that Mara began stealing with LaMantia, Ronny Jarrett, and others in the early 1960s as well
as participating in burglaries, cartage thefts, and armed robberies. Tr. 113.
37. Cooley testified that based upon his interactions with the mob as someone who gambled with them, fixed cases for them, and heavily socialized with them, he understood
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Shorty LaMantia to be feared and treated differently and to be in a higher echelon than jnst a street level individual. Tr. 724.
Larry Pusite
38. O’Rourke testified that Larry Pusiteri was the owner of the Hungry Hound hot dog stand located at 26th Street and Princeton, across from the old Italian-American Neighborhood Club, and that the hot dog stand was used as a center for gambling and loansharking activities. Tr. 129.
39. Cooley testified that he used to place bets with Larry Pusiteri, and that Pusiteri had a bookmaking operation and also ran a dice game on 26th Street. Tr. 670. Cooley stated that in 1976 or 1977 Larry Pusiteri approached him at Greco’s, told him that he ran the biggest dice game in town, and invited him to attend a dice game. Tr. 676-78. Two or three months after the initial invitation, Cooley went to the dice game, on 26th Street on the same street as the Hungry Hound. Tr. 678-80. Cooley saw Larry Pusiteri at the dice game. Tr. 681. Cooley went to approximately a dozen more dice games during the late 1970s and early 1980s. Tr. 682. Cooley stated that Larry Pusiteri was the one who controlled the betting and settled disputes. Tr. 688. Cooley testified that based upon his interactions with the mob as someone who gambled with them, fixed cases for them, and heavily socialized with them, his impression was that Larry Pusiteri was a street level operator with the outfit. Tr. 723-24.
40. Bills testified that he attended dice games in the 26th Street area and that Larry Pusiteri was running the dice games. CDC Tr. 1147-51.
Pat Marcv
41. Pasquale Marciano, also known as Pat Marcy, was the Secretary of the First Ward Democratic Organization of the City of Chicago. Tr. 117-19. O’Rourke testified that Marcy had
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been identified through FBI investigations, wiretaps, undercover consensual recordings, testimony by Robert Cooley and another cooperating subject, as head of a group of the Chicago Outfit which specialized in political influence. Tr. 117-18. Marcy was a powerful political figure with influencein Chicago City Hall with city agencies and was also the individual who arranged for cases to be fixed with corrupt judges in Cook County Circuit Court. Id.
42. Cooley testified that during the period of time when he was connected with the First Ward, he socialized with Pat Marcy every Thursday for over a year. Tr. 652. Cooley described Pat Marcy as “the absolute link between organized crime and the political system and the police and the other authorities here in the city.” Id. Cooley stated that during that time he and Pat Marcy would have dinner with “all kinds of different mob-related people.” Id. As described below, Marcy was indicted with Alderman Fred Roti, but died before trial.
Fred Roti
43. Fred Roti was the alderman representing the First Ward in the City Council of the City of Chicago. GEB Ex. 39, Second Superseding Indictment, United States v. Pasquale Marcy, No. 90 CR 1045 (N.D. Ill. 1991). The First Ward, was one of 50 wards of the City, and was located in and around the downtown, Chinatown, and Taylor Street areas. Id
44. Fred Roti was indicted for participating with Pat Marcy in an enterprise whose goal it was to obtain money by obtaining and maintaining influence over official decisions such as the outcome of criminal cases, favorable decisions in zoning changes, and obtaining judgeships for certain individuals. Id. Roti was convicted of conspiracy, participation in the affairs of an enterprise through a pattern of racketeering and extortion, bribery, and Hobbs Act extortion. GEB Ex.40, Judgment in a Criminal Case, United States v. Fred B. Roti, No. 90 CR 1045-2 (N.D. 111. 1993).
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45. Fred Roti is the uncle of the Respondents. However, as stated supra, familial relationship standing alone, absent other evidence, is not indicative of organized crime association.
James Inendino
46. James Inendino has been a convicted felon three times. GEB Ex. 26, Transcript of Sentencing, United States v. James Inendino, 78 CR 70 (N.D.Ill. 1978); GEB Ex. 30-‘)2. On September 1, 1978, James Inendino was sentenced to twenty years imprisonment. GEB Ex. 28, Sentence, United States v. James Inendino, 78 CR 70 (N.D.Ill. 1978). In sentencing Inendino, Judge Decker considered evidence presented at trial concerning Inendino with Harry Aleman with the intended purpose of murdering an individual. GEB Ex. 26, at 11-12. Judge Decker also took into consideration evidence of Inendino’s participation in extortionate activities. GEB Ex. 26, at 13.
47. O’Rourke testified that over the course of his law enforcement career, he became familiar with James Inendino’s association with the Chicago Outfit and had spoken with various individuals, cooperating witnesses, and sources about Inendino. Tr. 140. O’Rourke testified that he had been the case agent on Harry Aleman’s case, and O’Rourke knew Aleman to be a close associate of Joe Ferriola and a top hit man in Chicago. Id O’Rourke testified that Mara told him he was a criminal associate of Inendino, knew him, and worked with him on organized crime matters. Tr. 216. Mara indicated to O’Rourke that Inendino was a close associate of Harry Aleman, and part of the hit man crew for Ferriola. Tr. 140.
48. Cooley testified that James Inendino was an enforcer for the mob and very close to Marco D’Amico. Tr. 665.
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Ronald Jarrett
49. O’Rourke testified that Mara told him that he had been well acquainted with Ronald “Ronny” Jarrett (Jarrett) all his life and that Mara stole, committed burglaries and cartage thefts, and participat9d in juice collections with Jarrett. Tr. 135, 216. Mara stated that as of July 1980, Jarrett was a made member of the Chicago LCN, a top lieutenant of Angelo LaPietra, and collected juice loans for LaPietra. Tr. 135-36; see also GEB Ex. 36, FBI FD-302 of Mara by SAs O’Rourke and Zydron of July 1980, and Ex. 54, FBI FD-302 of Mara by SA Ray Shyrock of September 1980.
50. O’Rourke testified that Guy Bills had told him that Jarrett ran a burglary crew and Bills considered Jarrett to be a made member of organized crime and a lieutenant to Angelo LaPietra in charge of gambling and juice loan collection and enforcement. Tr. 136-37.
51. Jarrett was incarcerated on a HOBBS Act armed robbery violation and was killed in front of his house on December 24, 1999. Tr. 138-39.
James DiForti
52. James DiForti was originally a Respondent in this matter. Due to his death, the IHO will only examine information regarding DiForti in the context of evaluating the conduct of the remaining Respondents.
53. O’Rourke testified that Mara told him that DiForti was part of the 26th Street Crew and a close associate of John Monteleone. Tr. 220-21. Egan testified that during a police surveillance in the early 1990s, he had observed John Monteleone meeting with James DiForti on approximately three or four occasions. Tr. 539.
54. O’Rourke testified that Frank Zischke (Zischke) was an individual from the Chicago area who was part of an interstate jewelry robbery crew headed by Robert “The Beak”
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Siegel. Tr. 275. Zischke was arrested by FBI agents in Tampa, Florida, provided information to the FBI in Tampa, and was debriefed by O’Rourke in the early 1990s. Tr. 275-76. O’Rourke testified that Zischke told him that he had been part of a burglary group which included James DiForti and John Evans and that they. conducted commercial burglaries in the Chicago area and other states and that DiForti, while operating in Chicago, often used his union car to commit these burglaries. Tr. 276.
55. Zischke also told O’Rourke that James DiForti trusted John Evans and that James DiForti had been involved in the 1988 murder of an individual over a dispute over a gambling loan. Zischke stated that after James DiForti had shot the individual to death, and was himself wounded, DiForti had gone to John Evans’s house, and requested Evans to go back and clean up the crime scene. Tr. 277. O’Rourke stated that Zischke’s information was corroborated by John Evans who was arrested and interviewed by the FBI. John Evans admitted that he had been involved in the cleanup of the murder scene, that James DiForti had shot the individual to death and had been wounded in an exchange of gunfire with the victim. Tr. 277-78; see also GEB Exhibit 96, Handwritten statement of John Robert Evans of December 8, 1993. DiForti had forced Evans to break into the individual’s office and recover DiForti’s gun, briefcase, and pager. Id. James DiForti was later arrested and indicted for the murder. Tr. 279; GEB Ex. 97, 99. Subsequently, DiForti violated the conditions of his bail by leaving the State of Illinois without permission and traveling to Las Vegas, Nevada with Michael Spano, Joe Spano, and Steve Signora.” Tr. 280, 282; GE13 Ex. 99.
19 O’Rourke testified that having investigated Joe Spano and allegations of organized crime association, he knew that Michael Spano is a top official of organized crime in Cicero at the present time and that Joe Speno was a member of the hotel workers union Local 450 who had been discharged from the union for associating with organized crime figures, specifically with John Monteleone. Tr. 282.
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56. Based upon the unanimous reports of eight (8) confidential informants and five (5) cooperating witnesses, his experience as an FBI agent over twenty-three (23) years, and his review of FBI reports and Chicago Police intelligence reports, O'Rourke gave his opinion that James DiForti is a member of organized crime and a top lieutenant to John Monteleone. Tr. 28586. O'Rourke further stated that if he removed the information of confidential informants, and based his opinion solely on the remaining factors, his opinion would remain that James DiForti was a member of organized crime. Tr. 286-87. The IHO credits O'Rourke's opinion.
57. Corbitt testified that although he did not have personal interaction with James DiFord, from the different groups of people with whom Corbitt associated, from being introduced to DiForti on several occasions, and from seeing James DiForti with them, he knew of James DiForti for approximately twenty (20) years and knew DiForti to be a member of Angelo LaPietra's crew, a loan shark, that he loaned and collected juice money, and that he was involved with the daily operations of LaPietra's crew. Tr. 812-13.
Others
58. Based upon the investigations he conducted as an FBI agent, review of FBI files, participation in reviewing intelligence files with the Chicago Police Intelligence Unit, the FBI, and IRS, as well as interviews of informants, O'Rourke testified that it was his opinion that Richie "the Cat" Catazone is a mid-level supervisor of gambling activities in the 26th Street Crew and that Donald "Captain D" DiFazio is a bookmaker involved in gambling operations in the 26th Street crew. Tr. 127-28. O'Rourke further stated that Guy Bills had identified both Catazone and DiFazio as members of the 26th Street Crew and well-known bookmakers. Tr. 128. Cooley testified that he socialized with Richie Catazone a couple of nights a week in the
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nightclubs in the city. Tr. 663. Cooley testified that based upon the way he observed others treat Catazone, that Catazone had an upper position in the mob. Id
59. O'Rourke stated that Mara identified Dirge "Cigars" Imperato as an individual
engaged in gamblingactivities, reporting to Skids Caruso then later to Angelo LaPietra- Tr. 128.
Cooley testified that he knew Dirge Imperato and would see him three or four times a week for
several years. Tr. 662. Cooley stated that Dirge Imperato was related by marriage to Angelo
LaPietra and very well connected with the 26th Street Crew. Tr. 661-62. Cooley also stated that
Dirge Imperato handled the 26th Street Crew's bets at the racetracks, and that Cooley had placed
bets with him. Tr. 662.
General Findings Regarding Frank Caruso and Ties to Organized Crime
60. As stated previously and delineated infra, a portion of the charges brought against Frank Caruso include allegations of his association with organized crime. The GEB Attorney has presented evidence of various factual circumstances which he contends is evidence of Frank Caruso's organized crime association. Each factual circumstance will be examined below for its independent probative value, and to determine if it is corroborated by other evidence. The IHO makes the following findings regarding Frank Caruso and organized crime.
Law Enforcement Surveillance
61. Both O'Rourke and Egan gave testimony regarding law enforcement surveillance of Frank Caruso in which they personally were involved.
62. As discussed supra, O'Rourke was the case agent on a loansharking case, the subjects of which included Frank Caruso. zo Tr. 147-149. O'Rourke testified that in that case,
2� As the subjects of the case were eventually acquitted, the IHO gives no weight to their indictment. The IHO examines the evidence offered in this regard solely for the purposes of O'Rourke's testimony regarding who he saw meeting with whom during the course of his investigation, facts unaffected by the acquittal.
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Daniel Borak (Borak) had been a gambler with an organization operated by LaMantia and Frank Caruso and after losing money heavily, Borak cooperated with the FBI and participated in monitored conversations with LaMantia and others. Tr. 153-54. O'Rourke personally briefed Borak, put the recorder on his person, and participated in monitoring the conversations. Tr. 154. In addition, the FBI used Special Agent Ron Elder (Elder) acting undercover for Borak's safety. Tr. 154-55.
63. During one FBI monitored meeting between Borak and LaMantia in an automobile,z1 LaMantia pointed to a vehicle parked nearby, said the people in the vehicle were with him, and stated that if he took his hat off, an individual would come over and shoot Borak in the head. Tr. 155. O'Rourke testified that one of the agents on the surveillance identified the individual in the vehicle to whom LaMantia had referred as Frank Caruso. Tr. 155. O'Rourke testified that during the course of the monitored conversation, LaMantia discussed the Chicago Outfit. Tr. 156.
64. O'Rourke testified that on December 6, 1982, in the course of an FBI surveillance, he was in a position to contemporaneously see and hear 22 a meeting involving Frank Caruso, Shorty LaMantia, Borak, and Special Agent Elder which took place at Elder's apartment complex. Tr. 157, 164, 168. O'Rourke stated that LaMantia and Borak arrived outside of Elder's apartment complex in one vehicle while Frank Caruso, Aldo Piscitelli, and Fred Bruno Barbara pulled up alongside in another vehicle. Tr. 157-59. LaMantia instructed the individuals in Frank Caruso's vehicle to watch an individual in a suspicious car who the group suspected was watching them. Tr. 158, 165-68. Later, LaMantia left his vehicle and spoke to
Z' The conversations were recorded by bodywires wom by Borak and Elder. Tr. 155-56. zt O'Rourke testified that in addition to the bodywires wom by Borak and Elder, and the FBI agents outside the Elder's apartment complex, there were FBI agents inside the bar within the complex. Tr. 157, 165.
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the individuals in Frank Caruso's vehicle. Tr. 158-59. All the individuals entered the apartment complex and Frank Caruso told LaMantia to just leave if Elder did not have the money. Tr. 164. Frank Caruso then entered the bar and sat at a table by the doorway while Piscitelli and Barbara sat in the back of the;bar. Tr. 164-65. LaMantia, Elder, and Borak had a conversation in the bar and Elder gave money to LaMantia who handed it to Borak. Tr. 165. After the money exchange, the three individuals stood to leave and were approached by Frank Caruso, Piscitelli, and Barbara at which time the FBI arrested Frank Caruso, Piscitelli, Barbara, and LaMantia. Tr. 166-67.
65. The IHO accepts O'Rourke's testimony regarding the December 6 surveillance not for any purposes related to the charges for which Frank Caruso was acquitted but for the sole purpose of O'Rourke's testimony that he participated in an extensive surveillance in which he saw Frank Caruso associating with LaMantia, Piscitelli, and Barbara in a manner that was more than simply fleeting or casual.
66. O'Rourke's testimony regarding the events concerning Borak in December 1982, is corroborated in part by LaMantia's later plea agreement in which LaMantia admits to conspiring with Piscitelli during November and December 1982 to extort Borak as part of his duties as a supervisory member of the 26th Street Crew. GEB Ex. 48, Plea Agreement, United States v. Joseph Frank LaMantia, No. 93 CR 523-1 (N.D. Ill. September 26, 1996).. As stated supra, the plea agreement is accepted solely as corroboration of O'Rourke's testimony of the FBI surveillances.
67. O'Rourke testified that he had helped prepare an affidavit for a Title III application, the subjects of which were Angelo LaPietra, James LaPietra, Joseph Frank
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LaMantia, Frank Caruso, and Frank Calabrese. 23 Tr. 190-91. See also GEB Ex. 47. The document was offered and accepted into evidence by the IHO solely for the purpose of the empirical evidence of who phoned whom, not the actual conversations. Tr. 195-200. The results of the initial pen registers and subsequent monitoring identified multiple telephone calls between the telephone number of at the ItalianAmerican Neighborhood Club and the telephone numbers of Frank Caruso, LaMantia, James LaPietra, and Angelo LaPietra, as well as those individuals having multiple conversations with each other. Tr. 194208. See also GEB Ex. 47.
68. Egan testified that while participating in surveillance, he had observed Frank Caruso on two occasions meeting with members of organized crime.
69. Egan testified that on March 2, 1994, due to information that there would be a dinner meeting at Palermo's Restaurant 24 with John Monteleone and some labor individuals, he participated in a surveillance of the restaurant. Tr. 536-37, 539. While Egan and Agents Gibbs and Brooks were seated inside the restaurant, they observed Frank Caruso, Joseph LaMantia, and an individual named Pacella enter the restaurant and sit down at a table. Tr. 540-46. A few minutes later, they were joined by John Monteleone. Tr. 546-47. A few minutes after Monteleone had entered, Bruno Caruso entered and also sat down at the table. Tr. 547-48. James DiForti entered almost simultaneously after Bruno Caruso. Tr. 548. Egan testified that each time an individual joined the table, all the individuals shook hands. Tr. 54748. Egan testified that he personally observed the individuals together at the table for almost two and one half hours until Egan and the agents left to avoid detection and continued watching the restaurant for an additional fifteen or twenty minutes during which time the individuals remained inside.
___________________
23 While O'Rourke assisted in the preparation of the affidavit, he was not the actual affiant.
24 Palermo's Restaurant is located in Oaklawn, Illinois, in the 4800 block of 95th Street. Tr. 540.
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Tr. 550-51. See also GEB Ex. 59, FBI report by Det. Ellwood C. Egan, SAs Scott R. Brooks and James P. Gibbs, transcription date of March 11, 1994. At the time of the surveillance, Frank Caruso was the President and Business Manager of Local 1006 and Sergeant-at-Arms of the District Council. Tr.:I630-31. As discussed further infra, at paragraphs 145-46, the following day DiForti resigned his position on the Executive Board of Local 1006 and became SecretaryTreasurer of Local 5.
70. On December 8, 1998, Egan was conducting a surveillance of Ronald Jarrett with the FBI organized crime task force. Tr. 564. Egan observed Jarrett enter the Blackhawk cigar store carrying a white envelope. 25 Tr. 566. Approximately a minute or two later, Egan saw Jarrett exit the store with Frank Caruso and Bruno Caruso, and Frank Caruso was carrying a white envelope. Tr. 567-68. Jarrett, Frank Caruso, and Bruno Caruso stood outside the store talking for approximately ten minutes. Id. The IHO finds that this was not a chance encounter.
Organized Crime Participant Testimony
71. In addition to the law enforcement surveillance testimony regarding Frank Caruso and his association with organized crime, Cooley and Corbitt also testified regarding their knowledge of Frank Caruso's involvement with organized crime.
72. Cooley stated that he had first met Frank Caruso with Pusiteri and DiFazio and had been friendly with him. Tr. 672. Later, in approximately 1977 or 1978, Bobby Abbinanti, with whom Cooley was close, told Cooley that if he needed another bookmaker to bet with, Abbinanti would "okay" Cooley with Frank Caruso. Tr. 672-73. Later that night, Cooley stated that he had a conversation with Frank Caruso during which Frank Caruso gave Cooley a phone
_______________
25 The cigar store is located at 31st Street and Canal, in Chicago. Tr. 566. Bruno Caruso stated that the actual name of the cigar store was the Blackjack, not the Blackhawk. Tr. 1606.
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number and an identification number Cooley could use to call to place bets. Tr. 672-75. The next day, Cooley called the number Frank Caruso had given him and began betting with that office. Tr. 675. Cooley's testimony is corroborated by Abbinanti's and Borelli's plea agreements and convictions. GEB Ex. 4-5, 15-16.
73. As discussed supra, Cooley testified that he attended dice games run by Larry Pusiteri. Tr. 676-682. Cooley testified that Richie Catazone told him that Frank Caruso had "an interest" 26 in the dice game. Tr. 689.
74. Cooley testified that based upon his interactions with the mob as someone who gambled with them, fixed cases for them, and heavily socialized with them, he considered Frank Caruso to be in a higher echelon of organized crime than merely the street-level echelon. Tr. 723-25.
75. Corbitt testified that he saw Frank Caruso with Angelo LaPietra and John Monteleone at Faces, an establishment on Rush Street. Tr. 803. Corbitt also testified that he had seen Frank Caruso at Genaro's, a restaurant in the Taylor Street area, with Angelo LaPietra and John Monteleone. Id.
76. Corbitt testified that during the late 1970s and early 1980s, he saw Frank Caruso in Counselor's Row several times including with Pat Marcy. Tr. 811.
77. Bills testified that he had known Frank Caruso since Bills was young. CDC Tr. 1136. Bills testified that there was a period during the mid-1960s where he was with Frank Caruso almost every other day for several years and that he and Frank Caruso drank, played pool, and had committed a burglary together. CDC Tr. 1136-39. Bills testified that he observed
______________
26 Earlier in his testimony, Cooley indicated that by saying someone had "an interest" in the dice game, he meant that the individual received a portion of the profits made by the game. Tr. 685-86.
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Frank Caruso being treated as a relative by the boss of the Chicago Outfit, Paul Ricca. CDC Tr. 1141. Bills testified that while he was working at a chop shop, Frank Caruso on four separate occasions brought him cars to be disposed of for improper reasons such as to collect insurance or failure to make payments. CDC Tr. 1142. Bills testified that he had attended dice games in the 26th Street area and that Frank Caruso took him there the first time Bills went to a game. CDC Tr. 1147-49. Bills also testified that Larry Pusiteri was running the dice game and that Shorty LaMantia and Richie Catazone were also present. CDC Tr. 1149-51.
Named Cooperating Individuals
78. In addition to the surveillance testimony and witness testimony, O'Rourke testified regarding information discussed with him by cooperating individuals, Mara, Granata, Basile, and Filippi.
Mara told O'Rourke that he had grown up with Frank Caruso, that Frank Caruso was given mob assignments by his father Skids Caruso who was the boss of the 26th Street Crew, and that Frank Caruso and Mara had participated together in a number of crimes such as burglaries set up by Frank Caruso. Tr. 217.
O'Rourke testified that he had been present at FBI interviews of Mara in which Mara had recounted that he had participated in two robberies of the same man, Peter Pons, both of which had been set up by Frank Caruso. Tr. 218-19. Mara stated that he, Frank Caruso, and Thomas Scalfano had participated in the first robbery while he, Frank Caruso, and Gerald Shallow had participated in the second. Tr. 218. See also GEB Ex. 55, FBI FD-302 of Richard J. Mara by SAs John J. O'Rourke and Wayne F. Zydron of June 22, 1981. O'Rourke further testified that he had been present at an FBI interview of Gerald Shallow, in which Shallow had corroborated Mara's statements regarding the two Peter Pons robberies. Tr. 218. See also GEB Ex. 56, FBI FD-302 of Gerald Shallow by SAs John J. O'Rourke and Robert C. Pecoraro of November 18, 1980.
Mara told O'Rourke that Frank Caruso used the telephone from the Hungry Hound hot dog stand or the 26th Street Club when he set up scores. Tr. 217-18. Frank Caruso's use of the telephone at the club is corroborated by the Title III affidavit application which indicates that
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Frank Caruso used the telephone at the club to speak with organized crime individuals.
Granata told O'Rourke that he had known the [Respondent] Carusos for over thirty years and knew Frank Caruso was a lieutenant to John Monteleone and a member of organized crime. Tr. 232.
� Basile told O'Rourke that during the 1970s, he had gone to the Old Italian-American Club
27
on numerous occasions in connection with loan-sharking, juice-loan, and gambling activities while individuals such as Angelo LaPietra, Shorty LaMantia, Frank Caruso, and Leo Caruso were present and he had observed and personally spoken with LaMantia and Frank Caruso. Tr. 234-35, 240. Basile indicated that in the 1970s, the club was a center of activity in the 26th Street Chinatown area. Tr. 23.
� Basile told O'Rourke that he knew Frank Caruso to be a lieutenant to Angelo LaPietra during the late 1970s until 1988 when Basile entered the witness security program. Tr. 235-36.
� O'Rourke testified that during his interview of Filippi, Filippi identified a photograph of Frank Caruso, stated that he had met with Frank Caruso in the company of Sal Termini and that Termini had advised him that Frank Caruso was from the 26th Street Chinatown Crew and a member of organized crime. Tr. 249.
Expert Opinion
79. Based upon the unanimous reports of eight confidential informants and five cooperating witnesses, his experience as an FBI agent over twenty-three years, and his review of FBI reports and Chicago Police intelligence reports, O'Rourke gave his opinion that Frank Caruso is a member of organized crime. Tr. 285-86. O'Rourke further stated that if he removed the information of confidential informants, and based his opinion solely on the remaining factors, his opinion would remain that Frank Caruso was a member of organized crime. Tr. 286-87.
2'
The Italian-American Club was open to all Italian-American persons, many of whom joined for social purposes and were not connected to organized crime. Tr. 236-37. The IHO notes that while some members of organized crime chose to transact organized crime business at the club, it was not the type of club to which only the LCN could be admitted.
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General Findings Regarding Bruno Caruso and Ties to Organized Crime
80. Local 1001 is the largest local within the Chicago District Council and its membership consists of between 3,300 and 3,500 members, most of whom are municipal workers. Tr. 1448. From 1966 until 1982, Bruno Caruso was actively employed by the City of Chicago as a foreman, supervisor, assistant superintendent, and superintendent of the Bureau of Streets. Tr. 1438. Bruno Caruso joined Local 1001 in 1966, and has been a member of Local 1001 for thirty-four (34) years. Id.
81. In the late 1970s or early 1980s, Bruno Caruso became an Executive Board member of Local 1001. Tr. 1439. In 1982, Bruno Caruso became the Secretary-Treasurer of Local 1001 and remained in that position until he became both Business Manager and President in 1994. Tr. 1438, 1448. From 1994 to 1999, Bruno Caruso served as both the Business Manager and President of Local 1001. Tr. 1429, 1447. In May 1999, after being denied permission from the International Union to run for both offices again,
28
Bruno Caruso maintained the position of Business Manager and Nathaniel Gibson became President. Tr. 1302, 1429, 1447.
82. On November 3, 1982, following the resignation of a Local 1001 delegate, Bruno Caruso was seated as a delegate to the Chicago District Council. Tr. 1154; GEB Ex. 83A, Minutes of the Regular Meeting Laborers' District Council of November 3, 1983. Bruno Caruso was the President and Business Manager of the Chicago District Council from September 1994 until the District Council was put into trusteeship in 1998. Tr. 1438-39, 1446.
28
Depending on the needs of the local, local unions are on occasion permitted to combine officer positions, however, the local must first obtain permission to combine offices from the General President prior to the election. The General President has the discretion whether to permit the combination of offices.
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83. As stated previously and delineated infra, a portion of the charges brought against Bruno Caruso include allegations of his association with organized crime. The GEB Attorney has presented evidence of various factual circumstances which he contends is evidence of Bruno Caruso's organized crime association. Each factual circumstance will be examined below for its independent probative value, and to determine if it is corroborated by other evidence. The IHO makes the following findings regarding Bruno Caruso and organized crime.
Law Enforcement Surveillance
84. Dignan and Egan gave testimony regarding law enforcement surveillance of Bruno Caruso in which they personally were involved.
85. Egan testified that during surveillance, on three separate occasions, he had observed Bruno Caruso meeting with members of organized crime.
86. As discussed in paragraph 69 supra, Egan testified that based upon a tip that John Monteleone was going to meet with labor officials, he surveilled Palermo's restaurant where he watched Bruno Caruso meet and dine at the same table with Frank Caruso, Joseph LaMantia, Pacella, John Monteleone, and James DiForti for approximately three hours. Tr. 541-48, 552. At the time, Bruno Caruso was Secretary-Treasurer of Local 1001.
87. Bruno Caruso repeatedly testified that while he did not recall meeting with James DiForti, Frank Caruso, John Monteleone, and others at Palermo's, as stated by Egan, based upon the frequency that he went to that restaurant and that meetings were held there for the ItalianAmerican Club, "it could have happened." Tr. 1443-44, 1619-20. Later in his testimony, Bruno Caruso suddenly stated that since March 2 was close to St. Joseph's Day,29 the dinner meeting
29
St. Joseph's Day is celebrated annually in the Roman Catholic Church on March 19. In the Italian community, it is often a day of festive activities.
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was for the purpose of organizing events for St. Joseph's day at the Italian-American Club. Tr. 1621-22. Bruno Caruso stated that Monteleone and LaMantia were active in the ItalianAmerican Club and were captains of the St. Joseph's table. The IHO finds Bruno Caruso's explanation to be incredible. Mob leaders do not hold such dinners casually or without issuing specific invitations. It is incredible that the head of the Chicago mob would invite a major union leader to dine with him for three hours to discuss the St. Joseph's Day festival.
88. Egan testified that on March 31, 1995, he participated in an organized crime task force surveillance of James Inendino. Tr. 552-53. The surveillance began at James Inendino's house in Darien, Illinois, where Inendino was observed by the surveillance team leaving his house at approximately five minutes before eight in the morning, travelling three or four minutes from his house, and pulling into Bruno Caruso's driveway. Tr. 555-56. Inendino entered the Caruso residence with a briefcase and remained inside for approximately five minutes, then returned home. Tr. 560. After Inendino entered the residence, the other car parked at the residence was identified as a black Aurora with Chicago District Council license plate, "LIULDU." Tr. 557, 559. Later on that same morning, at approximately nine-fifteen, Egan followed the black Aurora to Stage's Restaurant where Bruno Caruso exited the car and entered the restaurant. Tr. 557-58. The GEB attorney introduced photographs into evidence which were identified by Egan as reflecting the events of March 31, 1995. Tr. 558. See GEB Attorney Ex. 60.1 A-E.
89. Bruno Caruso denied meeting with James Inendino on March 31, denied that James Inendino had ever been to his house, and stated that he had never met Inendino. Tr. 1445, 1613-15. The IHO does not credit Bruno Caruso's testimony. The IHO finds that James Inendino met with Bruno Caruso at Bruno Caruso's home.
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90. As discussed in paragraph 70 supra, Egan testified that during surveillance of Jarrett, he had observed Jarrett meet with Frank Caruso and Bruno Caruso at the Blackhawk Cigar Store. 564-68.
91. Bruno Caruso testified that while he did not recall meeting with Jarrett at the cigar store, it was possible that the meeting could have happened. Tr. 1606-07. Bruno Caruso stated that while he had known Ron Jarrett had served time in jail, he had no reason to believe that Jarrett was involved with organized crime. Tr. 1607-08.
92. Dignan testified that on June 16, 1997, he participated in a surveillance in Darien, Illinois. Tr. 1022. Bruno Caruso was the target of the surveillance because law enforcement officers had informed the intelligence section that Bruno Caruso was going to be served with papers concerning LIUNA and they wanted to learn what Bruno Caruso was going to do when served with the papers. Id. Dignan testified that the surveillance team observed Nick Gironda arrive at Bruno Caruso's house in the morning, then both Bruno Caruso and Nick Gironda left Bruno Caruso's house in separate vehicles, Bruno Caruso driving his union vehicle, and proceeded to the Old Oak Country Club. Tr. 1024-25. After arriving at the country club, Dignan observed two officers, one of whom was John O'Rourke, approach Bruno Caruso in the parking lot and present him with documents. Tr. 1026. Dignan's testimony is corroborated by Scigalski who testified that on June 16, 1997, he served the complaint regarding the Chicago District Council on Bruno Caruso at a golf course in the southwest suburbs. Tr. 1115.
93. Bruno Caruso and Nick Gironda went into the country club where they spoke with others at what appeared to be a golf outing, and left after approximately thirty (30) minutes. Tr. 1026. After leaving the country club, Bruno Caruso and Nick Gironda went to 231 West 25th Place, the home of Fred Roti, where Dignan watched Bruno Caruso walk up the sidewalk
50
and the door to Fred Roti's house open. Tr. 1029. Dignan stated that he saw Fred Roti exit the house to smoke, and that the surveillance team watched the house for several hours then departed without seeing Bruno Caruso or Gironda exit. Tr. 1030.
94. Bruno Caruso testified that after receiving the complaint in the Chicago District Council trusteeship, he went to his mother's house, next door to his uncle's house but not to his uncle's house. Tr. 1441, 1610-12. Later, Bruno Caruso testified that he could not recall if he had seen his uncle, Fred Roti, that day, but that his uncle was a frequent visitor to his mother's house and that he could have seen him that day. Tr. 1441, 1610-13. The IHO does not credit Bruno Caruso's changing testimony. The IHO finds that Bruno Caruso went to Fred Roti's house and met with Fred Roti for several hours, after being served with the complaint for the trusteeship of the Chicago District Council.
Organized Crime Participant Testimony
95. Cooley, Corbitt, and Bills, three individuals with former heavy involvement in organized crime, testified regarding their knowledge of organized crime activities and Bruno Caruso's participation.
96. As discussed
supra,
Cooley testified that he attended dice games run by Larry Pusiteri. Tr. 676-682. Cooley testified that on approximately three occasions he had seen Bruno Caruso at the dice games. Tr. 682-83, 691-92, 741-43. Cooley testified that Richie Catazone told him that Bruno Caruso had "an interest"3� in the dice game. Tr. 689. Bills corroborated Cooley's testimony. Bills testified that he had seen Bruno Caruso at illegal dice games run by members and associates of the 26th Street crew of the Chicago Outfit. CDC Tr. 1147-55. Bills's
3�
Earlier in his testimony, Cooley indicated that by saying someone had "an interest" in the dice game, he meant that the individual received a portion of the profits made by the game. Tr. 685-86.
51
testimony was similar to Cooley's and also stated that the games were run by Larry Pusiteri and that Richie Catazone was also present. Id. 1149-52.
97. Bruno Caruso testified that he knew Richie Catazone but that Catazone was not involved in organized crime to his knowledge. Tr. 1595. Bruno Caruso stated that other than in a club meeting with several hundred other people, he had not seen Catazone with Shorty LaMantia, Frank Caruso, or Angelo LaPietra. Id.
98. Bruno Caruso's testimony that he not only never attended the dice games but was unaware that the games were taking place across the street from the Hungry Hound is contradicted by Leo Caruso's testimony regarding the gambling which took place across the street from the Hungry Hound. Tr. 1957-63; see also Leo Caruso Exhibit 15. Leo Caruso further testified that while he [Leo Caruso] did not participate in the gambling which took place, he saw Frank Caruso and Bruno Caruso in the building. Tr. 1957-63. The IHO does not credit Bruno Caruso's testimony that he was unaware that dice games were taking place. Furthermore, the IHO finds that Bruno Caruso was a participant the dice games that were taking place in the 26th Street area.
99. Bills testified that he had seen Bruno Caruso in the company of people Bills knew to be members or associates of the 26th Street Crew such as Larry Pusiteri, Shorty LaMantia, DiFazio, and Richie Catazone. CDC Tr. 1170-71.
100. The IHO heard testimony from several witnesses concerning the First Ward table at Counselor's Row. Cooley stated that Counselor's Row3 l was a restaurant in the First Ward area located near his office which he would frequent five or six days a week from approximately
" Counselor's Row was located at 100 North LaSalle, across from City Hall, below the First Ward offices and Cooley' office. Tr. 693.
52
1970 to 1981, then again from 1986 to 1989. Tr. 693-94. Both legitimate and illegal business was conducted at Counselor's Row. Tr. 694-709, 752. Cooley testified that Pat Marcy and Fred Roti had a table in the corner of Counselor's Row which was referred to as the First Ward table. Tr. 695-698. Corbitt also testified that Pat Marcy had a private corner booth where Pat Marcy would meet with him regarding illegal activities. Tr. 807-08. John Walsh testified that while individuals other than Pat Marcy and Fred Roti sat at the First Ward table, "they would get up when they [Marcy and Roti] walked in. It was like they were known to have the reservation on the table." Tr. 1229. Cooley stated that due to a fear of listening devices because Pat Marcy and Fred Roti used the table "almost as an office," the protocol dictated that no illegal business would be conducted at the First Ward table itself. Tr. 698. Instead, Cooley explained that when discussing illegal business, the practice would be to step away from the table to another location, such as the hallway or the back area of the restaurant, have the discussion, then return to the table. Tr. 698-701. Cooley's statements pertaining to the practice of discussing illegal business at Counselor's Row but not at the table are corroborated in part by transcripts of a consensual monitoring conversations. GEB Ex. 88A (Consensual Monitoring, Participants Robert Cooley and Anthony Scotillo on 8/23/89) and B (Consensual Monitoring, Participants Robert Cooley, Fred Roti, Anthony Laurino, and Unknown Male on 6/5/89) (discussing the First Ward table and illegal events and reflecting the practice of not speaking regarding illegal activities at the table.)
101. Both Cooley and Corbitt testified regarding Bruno Caruso and Counselor's Row. Cooley testified that on approximately five occasions between 1975 and 1989, he had seen Bruno Caruso enter Counselor's Row, make eye contact with Pat Marcy and together walk away from the table and be gone for a short period of time. Tr. 708-08, 736-38. Corbitt testified that he frequented Counselor's Row from approximately 1973 until his incarceration in 1987 during
53
which time he delivered payoffs to Pat Marcy at Counselor's Row so he had occasion to be at Counselor's approximately once a week, but definitely at least once a month. Tr. 813, 838. Corbitt also testified that he had seen Bruno Caruso at Counselor's Row meeting with Pat Marcy where Corbitt saw Bruno Caruso take a thick envelope out of his pocket and pass it to Pat Marcy who pocketed it. Tr. 809-10, 841-42, 846-48. Bruno Caruso and Pat Marcy were alone at the table and after the envelope had been passed, they were joined by Corbitt and Salvatore Bastone. Tr. 843. Corbitt stated that he had seen Bruno Caruso meet with Pat Marcy at Counselor's Row approximately five times. Tr. 810, 840-41, 846-47.
102. Bruno Caruso testified that it was possible that Corbitt and Cooley could have seen him in Counselor's Row because Bruno Caruso often frequented Counselor's Row, but denied doing anything improper with Pat Marcy or Fred Roti. Tr. 1602-03. Bruno Caruso also stated that it was possible that he could have passed an envelope to Pat Marcy but did not recall having done so. Tr. 1603.
103. The IHO finds that it is important to note the significance of the meetings Counselor's Row. Independent evidence from the conviction of Fred Roti describes the involvement of Roti and Marcy in organized crime and politics. The meetings were simply not in a setting where political figures only ate and drank. The power of Roti and Marcy in the politics of Chicago and their allegiance to organized crime, makes any visits to their lair at Counselor's Row a suspicious circumstance, especially with the very definite organized crime affiliations of Bruno Caruso reported by other sources.
104. Cooley testified that based upon his interactions with the mob as someone who gambled with them, fixed cases for them, and heavily socialized with them, he considered Bruno
54
Caruso to be respected and in a higher position than just the basic street level echelon. Tr. 723
25.
105. In addition to stating that he had seen Bruno Caruso at Counselor's Row, Corbitt
testified that during the time period of his involvement with organized crime, he had seen Bruno
Caruso in the company of several members of organized crime. The IHO credits the following
testimony.
� Corbitt specifically recalls seeing Bruno Caruso with John Monteleone at Harry's Cafe .3z Tr. 799-801. Corbitt also specifically recalls seeing Bruno Caruso at Harry's Cafe on one occasion in the mid-1970s with Vince Solano and Angelo LaPietra. Tr. 801.
� Corbitt recalled seeing Bruno Caruso with John Monteleone at Billy' S.33 Tr. 800.
� Corbitt saw Bruno Caruso at Sweetwater's Restaurant 34 during the mid-1970s several times with groups of individuals, including one occasion with John Monteleone, where Corbitt went up to Bruno Caruso and John Monteleone and had a conversation with them. Tr. 856-58.
� Corbitt testified that the he had seen Bruno Caruso, several times over a period of several years, with individuals associate with organized crime such as Angelo LaPietra and John Monteleone at a time when those individuals were mid-level bosses, or underbosses, of different crews, before they rose to become bosses. Tr. 861-62.
106. The IHO does not credit the following testimony:
� Corbitt frequented Meo's Norway House 35 and interacted with organized crime individuals. Tr. 794-97. The IHO disregards any testimony by Corbitt that he had seen Bruno Caruso at Meo's Norway House.
32 Harry's Cafd was a restaurant on Rush Street. Tr. 800. 3' Billy's was a restaurant lounge on Rush Street. Id. '� Sweetwater's Restaurant was on Rush Street across from Harry's Cafe and across from a hotel. Tr. 856. 35 Meo's Norway House was originally located on Irving Park and Harlem in the Chicago area, then in the early 1970s moved to the Addison, Illinois area, the restaurant was frequented by individuals in different organized crime crews. Tr. 794, 828-29.
55
107. Bruno Caruso gave the following testimony regarding individuals with whom he
allegedly associated:
� Bruno Caruso testified that he knew Angelo LaPietra from the neighborhood in the late 1970s, that LaPietra was an active member of the Italian-American club to which Bruno Caruso also belonged, and that Angelo LaPietra was deceased. Tr. 1434. Bruno Caruso also testified that he knew Angelo LaPietra had been convicted and served time in jail, but that he did not know the reason for the conviction and was unaware of his reputation as a leader of organized crime. Tr. 1572.
� Bruno Caruso testified that he had known Shorty LaMantia since Bruno Caruso was a teenager, that he had seen LaMantia in the 26th Street area numerous times for decades, that LaMantia had been indicted with his brother Frank Caruso, and that LaMantia had served time in prison. Tr. 1572-73. Bruno Caruso denied knowing to which charges LaMantia had pled guilty and denied having knowledge of LaMantia having a reputation as a participant in organized crime other than from reports in the newspaper. Tr. 1573-75.
� Bruno Caruso testified that he knew Larry Pusiteri from the neighborhood, that Pusiteri operated a hot dog stand, the Hungry Hound, on property owned by Bruno Caruso's parents, and that Bruno Caruso bought hot dogs from the Hungry Hound. Tr. 1576. Bruno Caruso stated that he never had any suspicion that Larry Pusiteri was involved in organized crime. Id.
� Bruno Caruso testified that he had known Ron Jarrett from the neighborhood, that Ron Jarrett was deceased, and that he did not socialize with him. Tr. 1435.
108. The IHO finds Bruno Caruso's denials regarding Angelo LaPietra, Shorty
LaMantia, Larry Pusiteri, and Ron Jarrett to be incredible.
109. Upon cross-examination, Bruno Caruso explained his meeting with Monteleone
and LaMantia at Palermo's restaurant. At the hearing, for the first time on cross-examination,
Bruno Caruso attempted to explain surveillance of him with individuals such as Monteleone and
LaMantia could have been meetings of the captains of the Italian-American club for purposes of
56
celebrating St. Joseph's Day. Tr. 1626-1632. The IHO found Bruno Caruso's testimony regarding this matter to be incredible.
Named Cooperating Informants
110. In addition to the surveillance testimony and witness testimony, O'Rourke testified regarding information discussed with him by informants Mara, Granata, Basile, and Filippi:
� Mara told O'Rourke that he had grown up with the [Respondent] Carusos, that he knew Bruno Caruso, and that Bruno Caruso was not engaged in the street crime aspect of organized crime but was an associate member of the 26th Street Crew who worked for streets and sanitation and worked "for the union." Tr. 220. Bruno Caruso disputed Mara's statements that Bruno Caruso was involved with the 26th Street Crew. Tr. 1579-80.
� Granata told O'Rourke that he has known the [Respondent] Carusos for over thirty years and that Bruno Caruso was a member of organized crime and an associate. Tr. 232. Bruno Caruso denied knowing Granata and denied the information provided by Granata that Bruno Caruso was associated with the 26th Street Crew. Tr. 1580.
� Basile told O'Rourke that Bruno Caruso was an associate member of the 26th Street crew. Tr. 236. Bruno Caruso denied knowing Basile and denied the information provided by Basile that Bruno Caruso was involved with the 26th Street Crew. Tr. 1580, 1583.
� Umberto Filippi told O'Rourke that Bruno Caruso was a top official of LIUNA and a member of the 26th Street Crew of the Chicago Outfit. GEB Ex. 105 at 18. Filippi told O'Rourke that he had been present while Sal Termini and Bruno Caruso met to discuss eyeglass coverage for the union regarding NCI, a company operated by Termini. Id. Filippi also stated that he was present when LIUNA officials John Matassa, Jr. and John Serpico received kickbacks for union activities connected to NCI. Id. at 19.
111. The IHO finds that four named, independent cooperating witnesses, Mara, Granata, Basile, and Filippi told O'Rourke that Bruno Caruso was involved with the 26th Street Crew and that the witnesses gave independent corroborating information. The IHO does not credit Bruno Caruso's denials concerning this information.
57
Expert Opinion
112. Based upon the unanimous reports of confidential informants and named cooperating witnesses, his experience as an FBI agent over twenty-three years, and his review of FBI reports and Chicago Police intelligence reports, O'Rourke gave his opinion that Bruno Caruso is a member of organized crime. Tr. 285-86. O'Rourke further specifically stated that if he removed the information provided by confidential informants, and based his opinion solely on the remaining factors, his opinion would remain that Bruno Caruso was a member of organized crime. Tr. 286-87. The IHO finds that O'Rourke was qualified to give his opinion, and that he based it upon credible information. As discussed in the witness and evidentiary sections supra, The IHO gives weight to O'Rourke's opinion. General Findings Regarding Leo Caruso and Ties to Organized Crime
113. Leo Caruso is the President and Business Manager of Local 1006. Tr. 1879.
114. Leo Caruso was hired by the City of Chicago, Department of Streets and Sanitation in February 1965 as a refuge collector/laborer. Tr. 1880. In 1985, Leo Caruso became employed by Local ;1006 a part-time business agent. Tr. 1885. Leo Caruso testified that originally he worked full-time for the City until 2:30 in the afternoon then did part-time organizing work for Local 1006 afterwards. Tr. 1885-87. Leo Caruso later was switched to an afternoon shift with the City and he then worked part-time in the morning for the Local. Tr. 1888.
115. In August 1986, Leo Caruso became part-time Secretary-Treasurer for Local 1006. Tr. 1888-89. Leo Caruso stated that he did his job as Secretary-Treasurer for the union in the morning then worked his afternoon shift at his city job. Tr. 1889. As Secretary-Treasurer, Leo Caruso also became a delegate to the CDC and continued as a Business Agent. Id.
58
116. Leo Caruso resigned from his city job in August 1991. Tr. 1890. Leo Caruso stated that he left the city job because of rumors that laborers were no longer going to be needed in the First Ward and that employees would be transferred. Tr. 1891-92. The IHO notes that Leo Caruso resigned from his city job while under investigation by the Inspector General of Chicago for allegations of a no-show job.
117. Leo Caruso has never been a member of the CDC Executive Board. Tr. 1898.
118. As stated previously and delineated
infra,
a portion of the charges brought against Leo Caruso include allegations of his association with organized crime. The GEB Attorney has presented evidence of various factual circumstances which he contends is evidence of Leo Caruso's organized crime association. Each factual circumstance will be examined below for its independent probative value, and to determine if it is corroborated by other evidence. The IHO makes the following findings regarding Leo Caruso and organized crime.
Organized Crime Participant Testimony
119. Cooley, an individual with former heavy involvement in organized crime, testified regarding his knowledge of organized crime activities and Leo Caruso's participation.
120. As discussed
supra,
Cooley testified that he attended dice games run by Larry Pusiteri. Tr. 676682. Cooley testified that on two or three occasions he had seen Leo Caruso at the dice games run by Pusiteri. Tr. 682-83, 692, 747-49. Cooley testified that Richie Catazone told him that Leo Caruso had "an interest'
36
in the dice game. Tr. 689.
121. As discussed
supra,
Cooley testified that when discussing illegal business with Pat Marcy at Counselor's Row, individuals would leave the First Ward table for a few moments
36
Earlier in his testimony, Cooley indicated that by saying someone had "an interest" in the dice game, he meant that the individual received a portion of the profits made by the game. Tr. 685-86.
59
with Pat Marcy to have a private conversation. Cooley testified that on approximately one occasion between 1975 and 1989, he had seen Leo Caruso enter Counselor's Row, make eye contact with Pat Marcy and together walk away from the table and be gone for a short period of time. Tr. 710. ..
122. Cooley testified that based upon his interactions with the mob as someone who gambled with them, fixed cases for them, and socialized heavily with them, he considered Leo Caruso to be respected within organized crime and in a higher position than just the basic streetlevel echelon. Tr. 723-26.
123. Guy Bills testified that he knew Leo Caruso and during a period of time frequented drinking establishments with him. CDC Tr. 1145. Bills testified that he had seen Leo Caruso at dice games in the 26th Street area and that on occasion Leo Caruso had acted as a lookout to ensure the police did not raid the dice game. Id. 1147-489. Bills also described that the dice games were run by Larry Pusiteri on behalf of Skids Caruso and that Shorty LaMantia and Richie Catazone were also present at the games. Id. 1149-52.
124. Leo Caruso testified that he had been in the Mayburn club and that dice games were held behind the club. Tr. 1957-1961. Leo Caruso denied any knowledge that organized crime had a connection to the dice games and testified that he did not know who ran the dice games. Tr. 1962. Leo Caruso denied Cooley's testimony when Cooley stated he had seen Leo Caruso at the dice games and Leo Caruso stated that he never went into the former garage area where the dice games were held. Tr. 1962-63. Leo Caruso did however state that from listening to Cooley's testimony and the description of the location, that the club location Leo Caruso testified to and the club location Cooley testified to were the same location. Tr. 1963. Leo Caruso stated that he had never gone to the location of the dice games with Guy Bills and denied
60
Guy Bills's prior testimony in which Bills had testified that Leo Caruso had acted as a lookout for the dice games. Tr. 1963-65.
Named Cooperating Informants
125. In addition to the witness testimony, O'Rourke testified regarding information discussed with him by informants Mara, Granata, Basile, and Filippi:
� O'Rourke testified that Mara told him that he had known Leo Caruso all of his life, that Leo Caruso had been involved in the gambling activities of the 26th Street Crew for many years by running errands, watching card games, and operating in the gambling operations. Tr. 220. GEB Ex. 108 at 10-11.
� Granata told O'Rourke that he had known the [Respondent] Carusos for over thirty years and that Leo Caruso was involved in gambling operations and was also a member of organized crime. Tr. 232.
� Basile told O'Rourke that Leo Caruso was an associate member of the 26th Street crew and involved on a regular basis in the crew's gambling operations. Tr. 236.
� O'Rourke testified that during his interview of Filippi, Filippi identified a photograph of Leo Caruso, stated that he had met with Leo Caruso and Sal Termini on several occasions, and that Termini had advised him that Leo Caruso was from the 26th Street
Chinatown
Crew and a member of organized crime. Tr. 249.
126. John Monteleone's sister is married to Leo Caruso's uncle. Tr. 1906. Leo Caruso testified that he sees John Monteleone socially at family functions. Tr . 1907-08. The IHO does not consider participation at purely familial functions for the purposes of establishing organized crime association or membership. However, the family relationship is not a shield to such evidence in other situations, outside of family functions. Therefore, the IHO gives no weight to Leo Caruso and John Monteleone participating together in family functions.
127. Leo Caruso denied knowing Robert Cooley, Michael Corbitt, Joseph Granata, or Termini. Tr. 1917-18, 1925-26, 1932-35. Leo Caruso stated that he barely recalled Richard Mara. Tr. 1931. Leo Caruso stated that he had only heard Duke Basile's name but did not ever
61
meet Basile and did not know anything about him. Tr. 1933. Leo Caruso stated that he knows Larry Pusiteri as a person from the neighborhood, but denied being invited to or attending dice games run by Larry Pusiteri. Tr. 1935-37. Leo Caruso stated that he knew "Captain" DiFazio from the neighborhood, would know him to greet him on the street, but never socialized with him. Tr. 1937-39.
128. Leo Caruso stated that he had never heard that Larry Pusiteri, Richie Catazone, or Donald DiFazio were involved with the dice games at the back of the club. Tr. 1968-70. The IHO finds this testimony to be incredible.
129. The IHO finds that Leo Caruso was involved with organized crime gambling operations in the 26th Street area.
130. Leo Caruso testified that although he had known Shorty LaMantia for decades and saw him with some but not a lot of frequency, he never suspected that LaMantia had any role in organized crime in the 26th Street area. Tr. 1975. However, Leo Caruso did state that in 1982, Leo Caruso knew that Shorty LaMantia was indicted with Frank Caruso for extortion relating to organized crime. Tr. 1975-76. When asked if he ever suspected that Shorty LaMantia in that context was guilty of being a mid-level supervisor of the 26th Street crew, Leo Caruso stated "I really don't know that answer." Tr. 1976. The IHO finds that Leo Caruso was aware of LaMantia's organized crime participation.
62
Expert Opinion
131. Based upon the unanimous reports of eight confidential informants and five cooperating witnesses, his experience as an FBI agent over twenty-three years, and his review of FBI reports and Chicago Police intelligence reports, O'Rourke gave his opinion that Leo Caruso is a member of organized crime. Tr. 285-86. O'Rourke further stated that if he removed the information of confidential informants, and based his opinion solely on the remaining factors, his opinion would remain that Leo Caruso was a member of organized crime. Tr. 286-87. The IHO finds that O'Rourke was qualified to give his opinion, and that he based it upon credible information. As discussed in the witness and evidentiary sections
supra,
The IHO gives weight to O'Rourke's opinion.
Undemocratic Practices at CDC and Affiliated Locals
132. In addition to the allegations of participation in organized crime, the Respondents were also charged with undemocratic practices including bypassing elections through repeated and deliberate change of officers outside the election process followed by uncontested nominations; appointment and uncontested nominations of unqualified individuals; and failure to address allegations of organized crime, criminal indictments, and arrests. The allegations further allege that this conduct by the Respondents resulted in perpetuating organized crime's control over the Chicago District Council and its affiliated local unions. The IHO makes the following findings regarding the Respondents and undemocratic practices.
Lack of Contested Elections in CDC and Affiliated Locals
133. Chicago District Council elections should take place every four years. Tr. 981, 1520.
See also Uniform District Council Constitution, Article VI, Section 2(g). Scigalski
63
testified 37 that CDC elections took place in 1983, 1987, 1990, and 1994. Tr. 982. However, Scigalski testified that from 1970 to the present, there has not been a single contested election 38 in the CDC. Tr. 982, 1058.
134. The last election for the District Council prior to the imposition of the trusteeship was scheduled for August 17, 1994. Tr. 1061. None of the officers holding the scheduled positions at the District Council changed at the scheduled 1994 election, however, there were significant changes before and after the date of the election. Tr. 1062. During the period between March 1994 and October 1994, throughout a span of approximately four to six months prior and after the scheduled August election, the following offices were changed outside the regularly scheduled election process: CDC President and Business Manager, CDC Vice President, Committee Chair, Trustee Health and Welfare, Trustee Training Fund, Trustee Pension Fund, Trustee Political Action Committee, Trustee AGC, Vice President Cook County Trades, and Vice President of the Chicago Federation of Labor. The vacancies in officer positions created by the succession of events were filled by John Matassa, Jr., James DiForti, Leo Caruso, and Bruno Caruso. Tr. 1094-95; GEB Ex. 83.
135. Local union elections should occur every three years. Tr. 1520. See also Uniform Local Union Constitution Article Vl, Section 1(h).39 Scigalski stated that he examined the minutes and LM-2 reports for Locals 5, 1001, and 1006 which indicated that for a period of
_______________________________
37 In addition to testifying that he had served documents upon Bruno Caruso, Scigalski also testified in this case as a records witness on behalf of the GEB Attorney regarding his review of the relevant Local Union and District Council records.
38 A contested election in this Order is defined as one where more than one candidate was seeking the same office and members had to cast a vote between two or more individuals. This differs from merely the term election which may include not only contested elections but also uncontested elections where there is only one candidate who is declared the winner at the end of the nomination process.
39 The Constitution provides that where permitted by law, officers may serve four-year terns.
64
approximately fifteen to twenty years, 40 none of the changes in local union leadership had occurred pursuant to a scheduled election, but instead had occurred before or after, with a person resigning and his successor appointed by the executive board. Tr. 984-85, 1058.
136. Each of the District Council's four affiliated funds contains a provision in which a laborside trustee position is appointed for three years. Tr. 983. See also GEB Ex. 116A. There were no contested appointments for any laborside trustee selection in over a thirty year period. Tr. 983. Scigalski indicated that his review of the records indicated that some of the laborside trustee selections were made on longer than a three-year basis, and the pattern he saw was not one where individuals would be re-appointed but was one where individuals who were appointed would remain in their positions until they retired, decided to take another position, or died. Tr. 984, 1060.
History of Organized Crime Control and Advancement in Local 5
137. In the late 1970s and early 1980s, A1 Pilotto was President of Local 5 and Joseph Neroni was Business Manager. Tr. 942. Pinkard testified that Al Pilotto and Joseph Neroni were friends and Neroni would visit Pilotto at home. Id. In approximately 1982, after A1 Pilotto resigned as President due to his conviction relating to conspiracy to loot the LIUNA welfare fund, Joe Neroni took over as President of Local 5 41
Tr. 942-43; GEB Ex. 6-9, Convictions of Caporale and Pilotto. Joseph Neroni also took over for Al Pilotto as the District Council Vice President 42
_________________________________
40 Scigalski indicated that he had reviewed the records for the District Council for thirty years but had only been able to review the locals' records for fifteen to twenty years because prior records were unavailable; therefore for the period he was able to review the records, there had been no contested elections. Tr. 1058-59. Joseph Neroni was then Business Manager and President from 1982 until 1994.
42 When Neroni stepped down from the Vice President position at the District Council, in 1994, he was replaced by John Matassa. Tr. 952.
65
138. Frank Zuberis became a Business Agent and Secretary-Treasurer for Local 5 in 1987. Tr. 946. Pinkard testified that prior to when Zuberis went to Local 5 as SecretaryTreasurer in 1987 he had never met him or heard his name. Id. Zuberis's becoming an officer of Local 5 was not discussed at any general membership meetings, and other candidates were not considered for the Secretary-Treasurer position. Tr. 947. At the time, the duties of the Secretary-Treasurer included signing the checks in conjunction with the President. Id.
139. When Pinkard joined Local 5 in 1982, he was a field representative. Tr. 943. At the time, Dominic Palermo was also a field representative and Nick Guzzino was a member. Id. Both Dominic Palermo and Nick Guzzino were at Local 5 while A1 Pilotto ran the union and remained after Joseph Neroni took over in 1982. Id.
140. Dominic Palermo and Nick Guzzino were indicted in 1991 and convicted of charges related to organized crime activity. Tr. 945. Dominick Palermo was convicted for racketeering and illegal gambling.
See GEB Ex. 23, Superseding Indictment, United States v. Palermo, 90CRI 13 (N.D.Ill. 1988); affirmed in GEB Ex. 24, United States v. Morgano, 39 F.3d 1358 (7th Cir. 1994). More specifically, Palermo was the person to whom collected street taxes for the Chicago Outfit were delivered by a restaurant owner whose establishment was used as a count-house for an illegal lottery. Morgano, 39 F.3d at 1363-64.
141. Pinkard testified that he had observed Zuberis spending time with Palermo and Guzzino in the time period before Palermo and Guzzino were convicted of organized crime activities. Tr. 948.
James DiForti's Advancement in the CDC and Locals 1002. 1006, and 5
142. In the mid to late 1980s, the International Union issued a provisional charter for Local 1002 and disbursed money to that local to attempt to grow a new membership. Tr. 1537
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38. Bruno Caruso served as the Secretary-Treasurer of Local 1002 and Ernest Kumerow served as the President/Business Manager. 13 Tr. 1538. The provisional charter permitted appointment of officers and Bruno Caruso testified that as long as Local 1002 existed, there had never been elections. Tr. 1538-39.
143. Local 1002 was permitted to hire paid field representatives and in 1984 it hired James DiForti as one of its two paid field representatives. Tr. 1539. When he was hired to be a field representative at Local 1002, James DiForti was not a LIUNA member. Tr. 1540-41. Bruno Caruso testified that when James DiForti got the job in 1984, Bruno Caruso had never met him before and had never seen him in Bruno Caruso's neighborhood. Tr. 1548.
144. In 1989, Local 1002 merged into Local 1006 and James DiForti came into Local 1006 with the merging Local 1002 members as a field representative. Tr. 1715-16. At the time, Frank Caruso was President and Business Manager and Leo Caruso was Secretary-Treasurer. Tr. 1746. Despite being on the Executive Board of Local 1006 at the time, Donald Frank testified that he had never met DiForti before and that he did not know in advance that DiForti was joining Local 1006 as a field representative. Tr. 1746-47. During the time DiForti was a part of Local 1006, the Local had three field representatives, including DiForti, however, Local 1006 did not have three field representatives before or after DiForti. Tr. 1747-48.
145. DiForti became an Executive Board member of Local 1006. On January 3, 1994, Leo Caruso, as Secretary-Treasurer of Local 1006, issued a transfer card for James DiForti to transfer from Local 1006 to Local 5, where the transfer was received by Frank Zuberis as Secretary-Treasurer of Local 5. GEB Ex. 83, Laborers' International Union of North America
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43 Kumerow and Bruno Caruso did not receive a salary from 1002 because they were receiving a salary from 1001. Tr. 1538.
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Transfer Card of January 3, 1994. Scigalski testified that he inspected the minutes of Local 1006 and they did not indicate any record of James DiForti leaving as an Executive Board member of Local 1006. Tr. 1065. Scigalski also stated that the records of Local 5 did not indicate that DiForti was moving from Local 1006 to Local 5. Tr. 1066. Frank testified that even though he was on the Executive Board of Local 1006, he did not know that DiForti was leaving 1006 until after DiForti was gone and that Frank Caruso and Leo Caruso never discussed it with him. Tr. 1748-49.
146. The following events took place subsequent to DiForti's transfer:
� On January 4, 1994, the day immediately following DiForti's transfer, Joseph Neroni resigned and announced he would be retiring as President and Business Manager of Local 5 effective March 31, 1994. Tr. 1066; GEB Exhibit 83, Local Five Executive Board Minutes of January 4, 1994.
� On March 1, 1994, Frank Zuberis was elected by the Executive Board to serve as the new President and Business Manager, replacing Joseph Neroni. Tr. 1067; GEB Exhibit 83, Local Five Minutes of the Regular Meeting of March 1, 1994. Zuberis's becoming the President and Business Manager left vacant his previous position of SecretaryTreasurer of Local 5. Tr. 1068.
� On March 2, 1994, the day following the announcement that the Secretary-Treasurer position would become vacant at Local 5, a meeting took place among Joseph LaMantia, John Monteleone, Frank Caruso, Bruno Caruso, and James DiForti at Palermo's Restaurant. Tr. 536-51; GEB Ex. 59, FBI report of March 2, 1994 Investigation by Det. Ellwood C. Egan, SAs Scott R. Brooks and James P. Gibbs. At the time of the meeting, Frank Caruso was the President of Local 1006, Bruno Caruso was Secretary-Treasurer of Local 1001 and Delegate to the District Council. Tr. 1073, 1630-31.
� On March 3, 1994, due to James DiForti's resignation, Keith Vitale was appointed to replace DiForti as Executive Board member of Local 1006. Tr. 1075; GEB Ex. 83, Street Paving & Grade Separation Local No. 1006 Executive Board Meeting Minutes of March 3, 1994.
� On March 9, 1994, John A. Matassa, Jr.44 resigned as Committee Chairman and Trustee of the District Council. Tr. 1076; GEB Ex. 83,
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44 At the time, Matassa was the President and Business Manager of Local 2.
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Letter from John A. Matassa, Jr. to Ernest Kumerow, Pres.-Bus.Mgr. of March 9, 1994.
� On March 10, 1994, the day after Matassa's resignation, Joseph Neroni informed the District Council Executive Board that he was resigning his position as District Council Vice President effective March 31, 1994. Tr. 1077-78; GEB Ex. 83, Executive Board Meeting Minutes of March 16, 1994.
� On March 16, 1994, the District Council Executive Board appointed John Matassa to fill Neroni's vacancies of Vice President and Executive Board member and receive the South Side Committee expense, and appointed "James DiForti, Secretary-Treasurer of Local 5" to fill Matassa's newly vacated positions for Committee Chairman and two District Council committees. GEB Ex. 83, Executive Board Meeting Minutes of March 16, 1994; see also Tr. 1078-79. As of the date of the District Council Executive Board meeting, Local 5's minutes did not yet reflect James DiForti as Secretary-Treasurer. Tr. 1080.
� On April 1, 1994, Frank Zuberis, President and Business Manager of Local 5 wrote a letter to Ernest Kumerow, President of the District Council, informing him that the Executive Board had appointed Frank Zuberis President and Business Manager of Local 5, to replace the retiring President and Business Manager Joseph Neroni, and had appointed James DiForti to replace Frank Zuberis, positions effective April 1, 1994. Tr. 1081. See Letter from Frank Zuberis, President and Business Manager to Ernest Kumerow, President, Laborers' District Council of April 1, 1994. However, there was still no mention of James DiForti's appointment in either the Executive Board or Membership meeting minutes of Local 5. Tr. 1081-82.
� On April 5, 1994, four days after the letter to the District Council, and three weeks after the March 16 meeting where District Council indicated in the past tense that DiForti had become SecretaryTreasurer of Local 5, James DiForti was introduced to the Executive Board of Local 5 and there was a motion to appoint him SecretaryTreasurer. Tr. 1083. Therefore, according to the minutes, the District Council was aware of DiForti's movement, appointment, and position change prior to the Local 5 membership. Tr. 1083-84.
147. The March 16, 1994 minutes of the CDC refer to DiForti as the Secretary Treasurer of Local 5 two weeks before the April 5, 1994 minutes of Local 5 discuss nominating DiForti as Secretary-Treasurer. The April 1, 1994 letter from the President and Business Manager of Local 5 to the President of the CDC stated that James DiForti was appointed to the
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position of Secretary-Treasurer four days before DiForti was introduced to the Local 5 Executive Board and appointed Secretary-Treasurer. The IHO finds that the CDC was aware of DiForti's appointment and position change not only before the Local 5 membership but also prior to its occurrence.
148. Prior to DiForti's taking over Zuberis's spot, Pinkard testified that he had never met James DiForti, DiForti had not been a member of Local 5, there were no other candidates considered for DiForti's position, and Pinkard testified that he did not believe that the subject of DiForti's joining as an officer was open for discussion. Tr. 950-51. Pinkard testified that there was no discussion at general membership meetings regarding DiForti's joining Local 5 as an officer. Tr. 951. Pinkard testified that James DiForti arrived one day from another local then it was announced that he would take over the SecretaryTreasurer position and signing checks on behalf of Local 5. Id.
149. The previous transfers of office holders indicates that a small core of individuals, associated with organized crime, moved freely about the CDC and the local unions comprising the Council. Such frequent movements indicate the resignations and replacements were not caused by union organizational necessity, but by needs of some stronger force which caused them to happen. The IHO can find no other valid explanation except that this movement was caused at the direction of the Chicago Outfit to suit its needs.
Leo Caruso's Advancement in Local 1006 and His Replacement of Frank Caruso
150. In 1984, Leo Caruso transferred his membership from Local 1001 to Local 1006. Tr. 2021-22; GEB Ex. 81, LIUNA membership standing form. On June 6, 1985, Leo Caruso was appointed on a temporary basis to act as an assistant field organizer and also appointed to the Local 1006 Executive Board. Tr. 2018-19; GEB Ex. 83. Leo Caruso's appointment violated
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a Constitutional provision which requires that an individual be in a local for two years before becoming an elected member or appointed official. See Uniform Local Union Constitution Article V, Section 1.
151. On August 7, 1986, Leo Caruso was appointed "in a provisional capacity" as Secretary-Treasurer of Local 1006 outside of the election cycle. GEB Ex. 83C, Executive Board Meeting Minutes; Tr. 2009. Leo Caruso stated that he had not sought out the position of Secretary-Treasurer and did not know of any other candidates who had been considered for the position. Tr. 2010. Leo Caruso's appointment to Secretary-Treasurer left open his Executive Board seat which was filled by appointment of the then Auditor, whose Auditor position was in turn also filled by appointment. GEB Ex. 83C, Executive Board Meeting Minutes.
152. On April 10, 1995, GEB Attorney Robert Luskin wrote to Frank Caruso instructing him to appear for a deposition. GEB Ex. 89. The following day, Frank Caruso resigned as Delegate and Sergeant-at-Arms of the District Council and President and Business Manager of Local 1006. Tr. 1716, 1721, 1750-51; GEB Ex. 90, letter from Frank M. Caruso to the Laborers' District Council of April 11, 1995; GEB Ex. 83C, Special Executive Board Meeting Minutes of April 11, 1995. As a result, a Local 1006 special Executive Board meeting was called the same day, in which Frank Caruso's vacancy was filled by Leo Caruso as President and Business Manager. Id. Leo Caruso's appointment to President/Business Manager left vacant his former position of Secretary-Treasurer which was also filled that same day by the appointment of Donald Frank. GEB Ex. 83C, Special Executive Board Meeting Minutes of April 11, 1995; Tr. 1751-52. The Executive Board unanimously approved the nominations. Tr. 1751.
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153. Donald Frank testified that "we all didn't know before this meeting" that Frank Caruso was resigning. Tr. 1750. Frank testified that he had not known of the resignation beforehand and that no one had asked him if he would have liked to be considered for President/Business Manager. Tr. 1751.
154. The scheduled Local 1006 election was supposed to have taken place two days after the appointment of Leo Caruso and Donald Frank. Tr. 1114. Leo Caruso and Donald Frank were appointed to fill the balance of the term until the next election, however, the balance of the three-year term turned out to be two days. Two days later, on April 13, 1995, the nominations for the election were held and Leo Caruso was nominated without opposition and deemed elected for the position of President/Business Manager/Delegate to District Council for Local 1006 and Don Frank was nominated and deemed elected for Secretary-Treasurer. GEB Ex. 83, Report of Election Judges; Special Nomination Meeting of the Laborers Local 1006 of Thursday April 13, 1995; Tr. 1753. Donald Frank testified that no one else was considered "on that short of a time" but "anybody could have r[u]n for anything." Tr. 1754. Since no other candidates were considered, Donald Frank and Leo Caruso were "elected" to their positions. Tr. 1716, 1753-54. The IHO finds the appointments of Leo Caruso and Donald Frank to be consistent with the prevailing practice of resignations and appointments to vacancies in midterms to avoid any possibility of a contested election.
155. Leo Caruso testified that when he became President/Business Manger of Local 1006, Sergeant-atArms of the District Council, and trustee of the pension fund, all of the positions had been held by Frank Caruso immediately prior, all the positions had been filled between elections (one was filled the day before), Leo Caruso had not solicited any of the
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positions, and Leo Caruso did not know of any other candidates who had been considered to fill the positions. Tr. 2009-2016.
156. Leo Caruso's and Donald Frank's testimony demonstrated a pattern of selecting officers outside of the election process. Local 1006 had a pattern of appointing officers between elections, having the Executive Board approve the appointment, then running the officers in the next election, for the past thirtynine years. Tr. 1725. Donald Frank testified that he attended every election since he joined the union in approximately 1961 and that in approximately forty years there has never been a contested election (two candidates running against each other for the same job) at Local 1006. Tr. 1711, 1721, 1754-55. Donald Frank testified that he never cast a ballot (had to choose between two opposing candidates) in an election either in Local 1006 or as long as he was a Delegate of the District Council. Tr. 1755-57. Donald Frank also described the practice of filling vacancies at Local 1006, stating that when there would be a vacancy, he and Leo Caruso would discuss it and determine "the best man for the job," discuss it with the Executive Board, then make the necessary replacement. 45 Tr. 1722.
Undemocratic Practices: Appointment of Frank Caruso as Trustee
157. On June 13, 1994 the Laborers' Pension Fund Board of Trustees held a meeting which Frank Caruso, Mike Lazzaretto, Joseph Lombard, Jr., John Matassa, and Frank Zieman attended as laborside trustees.46 Tr. 886; GEB Ex. 91A.
158. James R. Murphy, administrator of the fund, advised the trustees that Wayne Busa, who was the director of the fund and had been involved with the fund for forty years,
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45 Donald Frank gave the following examples: Leo Caruso and Donald Frank recommended Nick Miroballi to the Executive Board as a Vice President replacement; Lawrence LaRocco was appointed Sergeant-at-Arms replacing James Cerone. Tr. 1722-1725.
46 Robert Kelly was also a laborside trustee, but he was absent from the June 13, 1994 meeting. Tr. 886. GEB Ex. 91 A.
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would be retiring March 31, 1995. GEB Ex. 91A; Tr. 886-87. Joseph Lombardo, Jr. stated that the topic of Busa's retirement had been discussed by Labor and Management Trustees and that all parties felt that Frank Caruso, President of Local 1006, would be an excellent candidate for the position. GEB Ex. 91 A; Tr. 888. - The board of trustees decided that instead of taking over directly for the retiring Busa, Frank Caruso would to become an associate director at a salary of $66,000 and a company car. GEB Ex. 91A; Tr. 888-89. Frank Caruso was supposed to hold the position for approximately ten months, until the scheduled retirement of Busa on March 31, 1995, at which time he was to become the director at a ten percent (10%) salary increase effective April 1, 1995. Tr. 890; GEB Ex. 91 A. No provisions were made to reevaluate Frank Caruso prior to his taking over as director. Tr. 892. James Jorgensen testified that at the time, there had been two assistant directors positions, but that the position of associate director had never existed prior to or after it was held by Frank Caruso, nor had anyone prior to or after Frank Caruso had a company car. Tr. 888-90.
159. Other than Frank Caruso, there has never been a director or assistant director hired directly by the board of trustees.47 Tr. 894. Frank Caruso's June 30, 1994 employment application, dated seventeen days after the meeting, indicated that his work experience was President and Business Manager of Local 1006, file clerk, key punch operator, multi-lift, office boy, teletype operator, and typist. GEB Ex. 93A. The application also indicated that Joe Lombardo was his supervisor at Local 1006, however, Jorgenson testified that Lombardo was never a member of 1006. Tr. 896. Jorgensen stated that if he were to currently receive an application similar to Frank Caruso's for the position of director of the pension fund, he would not consider hiring him due to lack of qualifications. Tr. 896-97.
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47 Frank Caruso had been a trustee of the pension fund for approximately twenty years. Tr. 920.
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160. Frank Caruso was associate director of the pension department for ten months, from 1994 until 1995, then he became director of the pension fund for approximately three years, until March 20. Tr. 898. Instead of the salary increase from $66,000 to approximately $72,000 that Frank Caruso was slated to receive when he became director of the fund according to the 1994 minutes, Frank Caruso's salary was increased to $94,587. Tr. 908-09; GEB Ex. 91B, Laborers' Pension Fund Minutes of the Meeting of the Board of Trustees of February 13, 1995. According to the minutes, Lombardo made a motion that since Frank Caruso would be performing the same job as the retiring Busa, he should receive the same salary. Tr. 910; GEB Ex. 91B. The motion was seconded and carried. Id. The labor trustees at the time were Leo Caruso, Robert J. Kelly, Mike Lazzaretto, Joseph A. Lombardo, Jr., and Frank M. Zieman.48 Tr. 908-09; GEB Ex. 91 B, Laborers' Pension Fund Minutes of the Meeting of the Board of Trustees of February 13, 1995. However, the IHO notes that while Busa was earning $94,000 at the time of his retirement, he had worked with the fund for forty years and Jorgenson testified that as an administrator, he had never paid an incoming director the same amount as a parting director who had a number of years in the fund. Tr. 910. In addition, when Frank Caruso left as director of the pension fund, he was earning $108,498 while the incoming director was hired at $62,000. Tr. 912. Furthermore, unlike Frank Caruso, the current director of the pension fund had eight years experience in the field working with the pension department, a college degree, is well versed in ERISA knowledge, and worked as an assistant to Frank Caruso. Tr. 899-900.
161. In addition to the evidence presented that Frank Caruso had been appointed without adequate experience and at a higher compensation than the regular practice, the GEB
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48 John Matassa was absent from the meeting. GEB Ex. 91B.
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Attorney also presented evidence that indicated that Frank Caruso was not adequately performing his duties as director:
� As of March 1998, there were two assistant directors to the pension department and one director. At present, there is one director, one supervisor, and no assistant directors but the same amount of work is being processed. Tr. 900.
� James Jorgenson testified that while Frank Caruso was the director of the fund, the hands-on work listed in the director's job description was performed by the two assistants, Kathy O'Malley McCarthy and William Kulekowskis. Tr. 901.
� From 1994 to 1998, during the four years that Frank Caruso worked there, the office hours policy was 8:30 to 4:00. Tr. 901. Jorgenson testified that Frank Caruso would on average arrive at approximately10:00 a.m., and spend on average four or five hours in the office Tr. 901-02. Frank Caruso did not keep a log, nor make any reports or memos, of any activities in the field such as speaking with prospective retirees. Tr. 902.
� The current director communicates with her staff on a daily or weekly basis, in writing, to maintain work flow and inform them of any plan changes in the department. Tr. 903. During his four year period as director, Frank Caruso only wrote four memos to the staff: one stating that an outside line was for his personal use only; a second stating that all his personal calls were to be brought to his attention by word of mouth or memo; and a third indicating that overtime was to be restricted to one hour and that no one was to stay in the building alone. Tr. 905-6; GEB Ex. 93B.
� The current director holds staff meetings at least once weekly while Frank Caruso only held two staff meetings during his four years. Tr. 906-07.
162. At the pension fund, the data processing department is responsible for all computer software and hardware and data entry such as the inputting of money. Tr. 915. Approximately six months after Frank Caruso had started, on November 7, 1994, Joseph Buscemi was hired at the pension fund as a manager of data processing and was later promoted to director of the entire data processing department. Tr. 913-14, 916-917; GEB Ex. 94A. Buscemi's job application indicates that his prior experience was as a car salesman and a laborer
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for the City of Chicago Bureau of Electricity and his only listed reference was Frank Caruso. Tr. 914. Buscemi was hired at a salary of $45,000 then in 1998 earned $68,250 as director. Tr. 916. One month after the District Council was put into trusteeship in February 1998, Frank Caruso was terminated by the board of trustees on March 20, 1998. Tr. 917-18. Buscemi was terminated on March 23, 1998. Tr. 917.
163. The IHO finds that Frank Caruso was appointed to associate director and director a position for which he was unqualified, overpaid, and did little or no work in return for the salary he received. The IHO also finds that Leo Caruso voted to appoint Frank Caruso to this position for which he was unqualified, overpaid, and did little or no work in return for the salary he received.
164. The IHO finds that Frank Caruso improperly hired Buscemi, someone with no relevant or adequate experience, for a position with the pension fund that required responsibility, technical knowledge, and adequate supervision of financial data entry and tracking.
Bypass of the CDC 1987 Elections
165. CDC elections were scheduled to take place in August 1987. Tr. 1520. In 1987, James Caporale's conviction was affirmed and Caporale was incarcerated, leaving the Business Manager and SecretaryTreasurer positions at the CDC open. Tr. 1520-21. On July 22, 1987, James Caporale made a motion to appoint Ernest Kumerow as Business Manager, Kumerow in turn made a motion to appoint Joseph Lombardo, Jr. as Secretary-Treasurer. Tr. 1521-23; GEB Ex. 83A, Minutes of Executive Board Meeting (July 22, 1987). At the time, Frank Caruso was a delegate and Sergeant-at-Arms and Leo Caruso and Bruno Caruso were delegates. As discussed infra, the CDC minutes were later falsified to conceal the fact that there had been no election
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held, but that a convicted felon had been permitted to select his own replacement for the most important CDC positions.
Bypass of the CDC 1994 Elections
166. The events discussed in paragraph 146 supra, in which there was a significant change of offices within the CDC, occurred in March and April 1994, only several months before the scheduled August 1994 elections. Tr. 1085-86.
167. The CDC Judges of Election for the August 1994 officer elections were Frank Colaianni, James DiForti, and Bruno Caruso. GEB Ex. 83, Laborers' District Council Special Executive Board Meeting minutes of August 17, 1994; and Minutes of the Nomination and Election Meeting of Construction and General Laborers District Council of Chicago and Vicinity of August 17, 1994.
168. The IHO notes that at the August 17, 1994 Nomination and Election Meeting, none of the positions were contested and each position was nominated without any challengers. GEB Ex. 83, Nomination and Election Meeting minutes of August 17, 1994.
169. Kumerow was elected to serve a four-year term as President and Business Manager of the CDC in August 1994. Tr. 1088. On September 27, 1994, approximately one month after the election, Kumerow announced to the CDC Executive Board that "due to ill health and a desire to fulfill a lifelong ambition to travel and pursue other opportunities," he was going to retire. GEB Ex. 83, Laborers' District Council Executive Board Meeting minutes of September 27, 1994. At the same meeting, the Executive Board voted to fill Kumerow's vacancy of President and Business Manager with Bruno Caruso in a provisional capacity for the exiting term of office, and also appointed Bruno Caruso a Trustee of the CDC Training Trust Fund and the Welfare Fund. Id. The IHO notes that at the time, Bruno Caruso was only a
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delegate and instead of elevating the Vice President or another officer, the CDC went outside the Executive Board to make an appointment.
170. Kumerow also resigned from the following positions: President and Business Manager of the CDC; President and Business Manager of Local 1001, Trustee of the Training Fund, Trustee of the Health and Welfare Fund, Trustee of the Political Action Committee, Trustee of the Laborers' Associated General Contractors' (AGC) Educational Training Fund, Vice President of Cook County Building Trades, and Vice President of the Chicago Federation of Labor. Tr. 1089-90.
171. On October 1, 1994, Frank Caruso resigned as a member of the Board of Trustees of the Laborers' Pension Fund, "as a result of [his] newly appointed position of Associate Director at the Laborers' Pension and Welfare Fund." GEB Ex. 83, Letter from Frank Caruso to Joseph A. Lombardo, Jr., Secretary-Treasurer Laborers' District Council, of October 1, 1994. On October 6, 1994, Lombardo sent a letter to the Pension and Welfare fund stating that at an Executive Board meeting the previous day Leo Caruso had been appointed as Trustee to the Pension Fund to fill the vacancy left by Frank Caruso. GEB Ex. 83, Letter from Joseph A. Lombardo, Jr., Secretary-Treasurer to James R. Murphy, Administrator, of October 2, 1994.
172. On October 2, 1994, Joseph Lombardo, Jr. recommended Bruno Caruso to succeed Kumerow with the AGC Education Training Fund, the Cook County Building and Construction Trades Council, Chicago Federation of Labor. GEB Ex. 83, Letter from Joseph A. Lombardo, Jr., Secretary-Treasurer, to James "Mitch" Warren of October 2, 1994; Letter from Joseph A. Lombardo, Jr., SecretaryTreasurer, to Michael Bresland of October 2, 1994; and Letter from Joseph A. Lombardo, Jr., Secretary-Treasurer, to Michael Bruton, President, of October 2, 1994. On October 4, 1994, Lombardo sent letters to the Pension and Welfare Fund
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and the Training Fund stating that Bruno Caruso had been appointed by unanimous vote of the Executive Board succeed Kumerow as Trustee to the funds. GEB Ex. 83, Letter from Joseph A. Lombardo, Jr., Secretary-Treasurer, to James R. Murphy, Administrator, of October 4, 1994; Letter from Joseph A. Lombardo, Jr.*, Secretary-Treasurer, to Anthony Solano, Director, of October 4, 1994. Bruno Caruso only remained as Training Fund Trustee for two and a half weeks, on October 18, 1994, Bruno Caruso resigned as Trustee of the Training Fund stating that due to "prior commitments it would be difficult for [him] to properly attend to the business of the Training Fund."49 GEB Ex. 83, Letter from Bruno Caruso, Trustee, to Anthony Solano, Director, of October 18, 1994. The following day, Bruno Caruso tendered the Training Fund Trustee resignation during the Executive Board meeting and the Executive Board appointed John A. Matassa, Jr. to fill the vacancy. GEB Ex. 83, Letter from Joseph A. Lombardo, Jr., SecretaryTreasurer to Anthony Solano, Administrator, of October 20, 1994.
173. The CDC Executive Board's decisions to appoint John A. Matassa, Jr. to fill Kumerow's position as trustee to the training fund and Leo Caruso to fill the position of Trustee to the Pension Fund vacated by Frank Caruso as a result of his resignation were announced at the District Council Meeting on October 19, 1994, during which Bruno Caruso presided as Chairman. GEB Ex. 83, District Council Meeting minutes of October 19, 1994.
174. The IHO finds that the 1994 series of resignations and appointments of officer and trustee positions were deliberate acts to bypass the election procedure and ensure that the certain individuals were placed into certain offices.
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49 On October 18, 1994, Bruno Caruso sent a letter to Anthony Solano, the Director of the Training Fund, tendering his resignation as Trustee effective that date. On October 19, 1994, Bruno Caruso tendered his resignation as Training Fund Trustee at the CDC Executive Board Meeting. GEB Ex. 83.
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Falsification of 1987 and 1994 Minutes Demonstrates Practice of Predetermining Officers
175. As discussed supra, there were deliberate actions in 1987 and 1994 to bypass normal democratic procedures and ensure the election of certain individuals. Furthermore, there was evidence presented at the hearing that the officers of the CDC actively took steps to conceal the bypass of elections by falsifying meeting minutes.
176. On October 4, 1994, John J. Toomey of the law firm Arnold and Kadjan wrote a letter to Joseph Lombardo enclosing a series of records concerning Kumerow's resignation. The IHO notes that the last paragraph of the letter states as follows: "I am also enclosing the Minutes of the Special Meeting of the Construction and General Laborers' District Council of Chicago and Vicinity for Wednesday, October 5, 1994." GEB Ex. 83 (Emphasis added). The Special Meeting minutes of October 5, 1994 are typewritten with blanks left for the names of individuals making motions and statements, with the blanks filled in by hand. In addition, votes which had not yet taken place were typed as having being passed unanimously. The IHO finds that the events at the meeting were pre-determined and that the minutes were fabricated and were no more than a script which was followed, with everything already having been pre-determined prior to the date of the event.
177. The fabrication of the 1994 election minutes was not an isolated incident.
178. According to the four-year cycle of elections for the CDC officers, an election should have taken place in 1987. Tr. 1100. However, on July 22, 1987, James Caporale resigned from his position as Business Manager following the affirmance of his conviction for taking $2 million from a CDC affiliated fund. Caporale's appointment of Ernest Kumerow to succeed him was ratified unanimously.
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179. Scigalski stated that unlike the 1994 election, his review of the CDC's records from 1987 did not reveal any letters going to the membership, details of the nominations, or other materials relating to an election. Tr. 1101. Scigalski stated that he did not find any evidence that a 1987 election had taken place. Id. Bruno Caruso agreed that in the minutes for an election year there are usually minutes reflecting that an election is going to occur months before, including lists of delegates and notices sent to members, then there are minutes of a special nomination meeting, the delegates' participation in the event, then in the succeeding months of the results of the election. Tr. 1535-1537. No such reflection of an election exists for 1987. Tr. 1537. The IHO finds that no CDC election was held in 1987.
180. In 1988, Hugh B. Arnold, counsel for the CDC wrote a letter to Ernest Kumerow stating that in a review of the CDC's minutes, he could not find the minutes for August 6, 1986. GEB Ex. 83, Letter from Hugh B. Arnold to Ernest Kumerow, President, of January 19, 1988. In the letter, Arnold stated that while the Financial Secretary records and disbursement ledgers indicated "no meetings," since Arnold was aware that an election had occurred on August 6, 1986, he interpreted "no meetings" to mean no regular meeting because there had been a special meeting for the election. Id. The IHO does not find this to be a credible explanation of why there was no meeting minutes for that date.
181. Arnold's letter further states "I have prepared a set of minutes based upon conversations with others who were able to remember the nominations, the individuals present, and pertinent details." Id. The letter also states that the election was held a year before it should have been scheduled" but there was no problem because the newly elected officers in 1986 were the incumbents. Id. The IHO finds that such a statement reflects the inherent attitude at the
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so As stated previously, the election should have taken place in 1987 but instead was allegedly held in 1986.
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CDC that the incumbents could arrange elections as they saw fit without regard to democratic procedures.
182. At the January 20, 1988 CDC Meeting, Hugh Arnold told the CDC membership that the minutes for the election of August 6, 1986 had been misplaced and that he had restructured the minutes based on conversations with delegates. GEB Ex. 83, District Council Meeting Minutes of January 20, 1988. Hugh Arnold then read the minutes in its entirety to the all the delegates. Id. Bruno Caruso, Frank Caruso, and Leo Caruso were present at the January 20th meeting and voted to approve the restructured minutes. Id.
183. The alleged August 6, 1986 CDC nomination meeting minutes, as recreated by Arnold, state in part: "The Chair then called for nominations for Office of Sergeant-at-Arms and Br. Leo Caruso placed in nomination the name of Br. Frank Caruso for the Office of Sergeant-of Arms. The nomination of Br. Caruso was duly seconded, by Br. Bruno Caruso." GEB Ex. 83, Minutes of the Nomination Meeting of Construction and General Laborers' District Council of Chicago & Vicinity Held August 6, 1986. Bruno Caruso testified that he did not speak to Hugh Arnold to help Arnold reconstruct the minutes. Tr. 153334. The IHO notes that it is highly unusual that despite a detailed reconstruction of an event, Arnold did not speak to someone who seconded a nomination at the alleged meeting to confirm the outcome of events.
184. The IHO finds that no election was held in 1987 or in 1986. The IHO further finds that the allegedly recreated minutes were no more than a fabrication to mask the sequence of events where Caporale resigned and appointed Kumerow and no elections were held.
Failure to Acknowledge. Investigate, or Eradicate Presence of Organized Crime
185. Since 1980, the following have included a partial list of officials of the District Council, Local 5, and Local 1006 who have been indicted or convicted in organized crime cases:
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James Caporale, A1 Pilotto, Frank Caruso, John Matassa, Dominic Palermo, Nick Guzzino, and James DiForti. Tr. 986. Scigalski indicated that his review of the minutes did not indicate that Frank Caruso, Leo Caruso, Bruno Caruso, or anyone else in Local 5, 1001, 1006, and the District Council ever raised any questions regarding these indictments or convictions or request further inquiry or investigation about the circumstances surrounding these indictments or convictions. Tr. 986-87.
186. Scigalski indicated that his review of the minutes did not indicate that any official who had been indicted or convicted ever received a demotion, suspension, or reprimand in the locals or in the District Council. Tr. 992. To the contrary, the evidence suggests that some individuals were not only not questioned, but received favorable treatment following questionable conduct. The following are examples:
� On December 6, 1982, Frank Caruso was arrested for extortion, a few days after his arrest, he was unanimously promoted to Sergeant-at-Arms of the District Council. Tr. 992-93; GEB Ex. 83, Minutes of the Regular Meeting Laborers' District Council of December 15, 1982. Bruno Caruso stated that as a delegate to the District Council, he "did not raise an issue" at the time of Frank Caruso's promotion regarding Frank Caruso's indictment. Tr. 1491.
� On June 30, 1982, on the day following James Caporale's conviction for stealing from affiliated funds, the District Council gave James Caporale a vote of confidence by standing ovation. Tr. 993-94. There was no indication that Bruno Caruso, Leo Caruso, or Frank Caruso ever raised a question in any meeting regarding the propriety of having an individual convicted of stealing from an affiliated fund remain as Business Manager and Secretary-Treasurer of the District Council. Tr. 997-99. Bruno Caruso acknowledged that the government had proven its burden against James Caporale but stated that as a freshman delegate, his vote was influenced by the majority of the delegates who had confidence in James Caporale. Tr. 1493-95.
� Following allegations regarding no-show jobs in the City of Chicago made public in August 1991, on September 19, 1991, Nicholas Gironda was promoted from a part-time field representative to a fulltime field representative. Tr. 1013-14; GEB Ex. 83, Minutes of the Executive Board Meeting of the County, Municipal Employees,
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Supervisors, and Formen's Union, Local 1001 of September 19, 1991. Bruno Caruso seconded the motion to promote Nicholas Gironda. Id.
Respondent Witnesses
187. As part of their defense to the charges brought against them, the Respondents presented a series of witnesses who denied knowledge of the Respondents' association with organized crime. However, the IHO notes that while apparently credible individuals, the witnesses by their own testimony were not in a position to know whether the Respondents associated with organized crime. Some individuals stated that they only knew the Respondents on a professional basis while others stated that they did not know any organized crime individuals (and therefore would be unable to state if the persons they saw in the company of the Respondents were members of organized crime) or did not believe that organized crime existed in the Chicago area. The testimony of the witnesses is discussed as follows.
188. Francis Parrilli became a City of Chicago Department of Streets and Sanitation employee and member of Local 1001 in 1955. Tr. 1181. Parrilli testified that he knew Leo Caruso as a child, they have been lifelong friends, and they used to work together behind a garbage truck. Tr. 1183, 1185-88. Parrilli also testified regarding Leo Caruso's community service with Chicago area youth. Tr. 1194-95.
189. Parrilli testified that he knew Richard "The Cat" Catazone, Larry Pusiteri, and Dirge Imperato from growing up in the same neighborhood, would consider them acquaintances he would greet, but that neither he nor Leo Caruso socializes with them. Tr. 1190-91, 1193. Parrilli stated that he considered Dominic "The Captain" DeFazio a friend he had been in clubs with years ago, but he does not socialize with him and does not know if Leo Caruso socializes with him. Tr. 1191-92. Parrilli stated that he knew Angelo LaPietra. but neither he nor Leo Caruso went out socially with him. Tr. 1193. Parrilli denied knowing Richard Mara, Joseph
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Granata, or Guy Bills. Tr. 1191, 1193. Parrilli testified that to his knowledge neither Leo Caruso nor Bruno Caruso were associates of or involved with organized crime. Tr. 1199, 1203. However, Parrilli also stated that he did not know anyone who was involved with organized crime. Tr. 1204, 1207-08.
190. Michael W. Duffee (Duffee) is a management-side labor attorney who has been retained by the City of Chicago to represent it in a series of collective bargaining. Tr. 1239-45. Duffee testified that to his knowledge, Bruno Caruso had a reputation for honesty and other than what he read in the newspapers, no one had ever said anything to him regarding Bruno Caruso and organized crime. Tr. 1242-43, 1248. Duffee only knows Bruno Caruso in a professional relationship as a business associate, not as a personal friend. Tr. 1250-51. Duffee's knowledge of Bruno Caruso is limited to the meetings conducted in relation to labor negotiations, and he is unaware of Bruno Caruso's activities outside of those negotiations. Tr. 1251-52. Duffee testified that he would have no reason to know with whom Bruno Caruso associated socially. Tr. 1252-53.
191. Father Gavin Quinn (Quinn) is the chaplain of the building trades in Chicago and the pastor of Our Lady of Mt. Carmel Parish in Darien, Illinois. Tr. 1284, 1286. Quinn testified that in the labor movement Bruno Caruso has a reputation for truth and veracity and other than what he saw in the newspaper, Quinn did not know of Bruno Caruso having a reputation for being associated with organized crime. Tr. 1290-91.
192. Nathaniel Gibson (Gibson) is the President and Field Representative of Local 1001. Tr. 1293. Gibson testified that he had had occasion to observe Bruno Caruso interact with members of Local 1001 for approximately twenty years and that Bruno Caruso "has made a difference." Tr. 1301. Gibson testified that he never saw Bruno Caruso do anything that was not
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in the best interest of his union membership and that Bruno Caruso was strongly supported by the membership. Tr. 1307-08.
193. However, Gibson also testified that despite being on the Executive Board of Local 1001 at the time, he had not found out about Kumerow's retirement until after the election of officers in August 1994. Tr. 1318-19. Gibson stated that Kumerow had announced that Bruno Caruso would replace him as President and Business Manager of the District Council and that there had been no discussion or consideration of other candidates for the positions. Tr. 1320. Gibson also testified that Bruno Caruso took over Kumerow's positions in Local 1001 without another person being considered for the President and Business Manager positions in Local 1001. Tr. 1320-21.
194. Michael O'Neill (O'Neill) has been the President of the Chicago and Cook County Building and Construction Trades Council for three and a half years, prior to which he had been the Business Manager of the Heat and Frost Insulators and Asbestos Workers, Local 17 for ten years. Tr. 1346. O'Neill has known Bruno Caruso for approximately seven years as a result of being members of the Trades Council at the same time. Tr. 1347. O'Neill saw Bruno Caruso at meetings approximately once a month and at political or labor functions on occasion during the year. Tr. 1346-48. O'Neill stated that Bruno Caruso's reputation in the labor community in Chicago was that Bruno Caruso "[ran] a good local and takes care of his members" and had a reputation for truthfulness. Tr. 1348-49. O'Neill stated that he had no reason to think that Bruno Caruso was an associate of member of organized crime. Tr. 1349. O'Neill stated that his relationship with Bruno Caruso was primarily professional and he had no idea with whom Bruno Caruso socialized outside of the meetings. Tr. 1352.
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195. Michael R. Zalewski (Zalewski) is an alderman from the 23rd Ward of the City of Chicago. Tr. 1360. Zalewski became a member of Local 1001 in 1977. Tr. 1361. From 1989 until his election to alderman in 1995, Zalewski worked in City Hall and would see Bruno Caruso in connection with Bruno Caruso's work with Local 1001 approximately once a week. Tr. 1365-67. Zalewski stated that Bruno Caruso was respected by other unions and had a reputation among union members and leaders as one of truthfulness and integrity. Tr. 1370-71. Zalewski stated that despite articles he had read in the newspaper, based upon his dealings with Bruno Caruso, he did not consider him to be an associate or member of organized crime. Tr. 1372-73. Zalewski indicated that his relationship with Bruno Caruso was purely business, involving the labor unions, and was not social. Tr. 1376.
196. Dennis J. Gannon (Gannon) has been the Secretary-Treasurer of the Chicago Federation of Labor 51 since January 1995. Tr. 1383-84. Prior to his position with the Federation of Labor, Gannon was the Business Agent for Local Union 150 of the International Union of Operating Engineers. Tr. 1384. Gannon testified that he has known Bruno Caruso since approximately 1973, has been out socially with him, and has interacted with him on union related matters. Tr. 1389. Gannon stated that Bruno Caruso's has a reputation for truthfulness in the labor community and "is always ready to represent the members of the [sic] Local 1001 and the District Council." Tr. 1394-95. Gannon stated that he had no reason to believe that Bruno Caruso was an associate or member of organized crime. Tr. 1394, 1402-03, 1412. Gannon stated that while he believed that organized crime existed in the City of Chicago, he did not believe it had infiltrated the labor movement in Chicago. Tr. 1400-01. Gannon later amended
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51 The Chicago Federation of Labor is an umbrella organization in Cook County which represents 321 different local unions. Tr. 1384.
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his statement to reflect that he had no personal knowledge of organized crime in the labor movement in Chicago. Tr. 1411.
197. Robert Tiberi (Tiberi) is a certified public accountant (CPA). Tr. 1414. Tiberi's clients include Loca1,1001 and the Chicago District Council. Tr. 1415. Tiberi testified that his work as a CPA did not reveal any financial irregularities in connection with 1001 since 1985 or in connection with the District Council in the past fifteen (15) years. Tr. 1416. Tiberi testified that he has known Bruno Caruso since the 1980s. Tr. 1417. Tiberi stated that in speaking with others in the labor community about Bruno Caruso, the comments have always been complimentary. Tr. 1418. Tiberi's firm does no independent investigation regarding organized crime or constitutional improprieties as part of its auditing function. Tr. 1421. The IHO finds that while Tiberi's testimony is credible, there have been no financial impropriety allegations made in the charges and Tiberi's testimony and personal knowledge of Bruno Caruso is limited.
198. Bernard L. Stone (Stone) is an Alderman and the Vice-Mayor of the City of Chicago. Tr. 1505. Stone testified that he has known Bruno Caruso as long as Stone has been an Alderman, approximately twenty-seven (27) years. Tr. 1507. Stone knows Bruno Caruso through the City Council's meetings with labor leaders and through Bruno Caruso's uncle, Fred Roti, who Stone described as a close friend and colleague. Tr. 1507-08. Stone stated that he had been invited to Roti family functions and would see Bruno Caruso at those events. Tr. 1509. Stone testified that he saw Bruno Caruso between twelve and twenty times a year. Tr. 1512. Stone testified that most people in the labor community viewed Bruno Caruso as "a hard guy to deal with, because he was always fighting for his union members." Tr. 1509. Stone testified that from his own knowledge, he knew that Fred Roti was not involved with organized crime and neither was Bruno Caruso. Tr. 1509-1510. Stone stated that he did not know everyone with
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whom Bruno Caruso associated, and that Bruno Caruso could have friendships and associations of which he was unaware. Tr. 1514. Stone stated that he did not have personal knowledge of any organized crime individuals. Tr. 1515. Stone denied knowing John Monteleone, Joseph LaMantia, James Inendino, or Ronald Jarrett, and stated that he had no way of knowing whether Bruno Caruso had any connection to those individuals. Tr. 1515-16. Stone stated that he had met Angelo LaPietra, but had no knowledge of whether Bruno Caruso associated with LaPietra, in anyway. Id.
199. Stone stated that he does not know individuals in organized crime, does not know whether or not it exists, does not know if there is a problem with organized crime in Chicago, and that other than his father's membership in a union he "[does not] know much about the labor movement." Tr. 1516-17. The IHO finds it difficult to believe that a person who has served as a Chicago alderman for twenty-seven (27) years can state that he does not know whether organized crime exists.
200. Floyd W. Davis (Davis) has been a minister of the Pilgrim Baptist Church in the Brownsville area of Chicago for eight years and has had occasion to meet Bruno Caruso through community outreach programs. Tr. 1654-56. Davis testified that Bruno Caruso had a reputation in the community for doing what he promised to do and that he had not heard anything regarding Bruno Caruso being a member or associate of organized crime. Tr. 1657-58. However, Davis testified that he had never been to Local 1001, that he only saw Bruno Caruso approximately five or six times a year, and that he did not have knowledge of everyone with whom Bruno Caruso socialized. Tr. 1659-60.
201. Terrence M. Healy (Healy) is a LIUNA Vice President and a Regional Manager of the Great Lakes Region. Tr. 1662. Bruno Caruso was Assistant Regional Manager from 1993
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until 1994, working for Healy as Regional Manager. Tr. 1677, 1681. Healy testified that he and Bruno Caruso had traveled together, that Bruno Caruso performed tasks Healy assigned to him well, and there was no question from any source that Bruno Caruso had problems with organized crime. Tr. 1678. Healy testified that he did not feel there were any major problems with Local 1001 and that the Local runs very well. Tr. 1680. Healy testified that from speaking with other labor leaders within the area, Bruno Caruso has a good reputation, does what he tells others he will do, is a hard-working individual, and his interest is the members of Local 1001. Tr. 167172. Healy stated that other than the CDC proceedings, he did not have knowledge of Bruno Caruso being either a member or an associate of organized crime. Tr. 1672. Healy testified that he had no personal knowledge of the individuals Bruno Caruso meets with when Bruno Caruso is not specifically with Healy. Tr. 1685.
202. Healy testified that to his knowledge, Leo Caruso was not a member of organized crime. Tr. 1697. Healy testified that while he had known Leo Caruso for fifteen years, a reasonable estimate of his contacts with Leo Caruso were limited to once a month for the District Council meetings and sometimes not at all. Tr. 1703. Healy testified that he had no knowledge of Leo Caruso's interactions with individuals outside his presence. Tr. 1704.
203. Healy testified that during his time as Regional Manager and LIUNA Vice President, he had no knowledge of any decisions made by the District Council having been dictated by organized crime. Tr. 1699.
204. Donald Frank (Frank) is the Secretary-Treasurer of Local 1006 and also serves as a paid field representative/business agent. Tr. 1709-11. Frank testified that he has worked with Leo Caruso for approximately fifteen years and in Frank's opinion Leo Caruso has done a "very good job" for Local 1006 and is well-liked among the members. Tr. 1738. Frank testified that
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he as Secretary-Treasurer and Leo Caruso as President/Business Manager run the day-to-day affairs of Local 1006 and that no one with organized crime connections has attempted to influence his actions with regard to Local 1006. Tr. 1739. Despite the fact that Frank testified that he knew Leo Caruso very well and had a close relationship with him concerning the union, Frank testified that for the ten year period from the mid 1980s to the mid 1990s he never knew that Leo Caruso had a job other than field representative and was also employed by the City of Chicago. Tr. 1744-45. Frank stated that if Leo Caruso were a member of organized crime, Frank would not know it. Tr. 1770. Then Frank testified that he did not have any indication that Leo Caruso was a member of organized crime. Tr. 1770-72. Such testimony is contradictory and the IHO disregards Frank's testimony.
205. Several times during his testimony, Frank demonstrated his incredible belief that as long as the union is doing well, criminal allegations against members or officers are not relevant. For example: when asked whether it was unusual that no one ever brought up the fact that a LIUNA member had been indicted or accused of being a criminal, Frank stated that they only talk about work and that no one "really cares" about convictions Tr. 1730-31; Frank also stated that Vince Solano, President of Local 1, being accused of being a criminal was "not union business. It has nothing to do with the union." Tr. 1733; Frank testified that if he heard someone was involved in organized crime he would no do anything about it "because it's none of my business, not that I know of." Tr. 1758; Frank also testified that Vince Solano being publicly identified as suspected of organized crime while the head of Local Union 1 "right next door" to Local 1006 in the District Council, he would not have done anything because it "has got nothing to do with the union, none whatsoever." Tr. 1758-59; furthermore, Frank stated that if
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Leo Caruso might have ties to organized crime while running Local 1006 it would be "None of my concern. It's not true anyhow." Tr. 1759.
206. Patricia Arizzi (Arizzi) is the Executive Secretary of the Old Neighborhood Italian Club. Tr. 1777. Arizzi gave testimony regarding the nature of community-oriented activities espoused by the Club. Tr. 1778-1781. Arizzi testified that she had known Bruno Caruso most of her life and that Bruno Caruso had been involved with the commencement of the Club as an organization. Tr. 1781. Arizzi testified that she knew Bruno Caruso's reputation in the community to be truthful, honest, and hardworking. Tr. 178283. Arizzi also stated that she knew Leo Caruso and that he was active in the social and charitable affairs of the club. Tr. 1792. Arizzi stated that prior to the hearing in this matter, she had not heard any allegations regarding Bruno Caruso as an associate or member of organized crime. Tr. 1784. Arizzi stated that while she had heard rumors of organized crime she did not believe that there was an organized crime issue in the area. Tr. 1786-87. When asked about individuals such as Angelo LaPietra and Joseph "Shorty" LaMantia, Arizzi stated that she knew another side of those individuals and did not "think it was any of my business" whether they were members of organized crime. Tr. 178689.
207. Douglas P. Roller (Roller) is attorney formerly with the Department of Justice from 1969 to 1984, including twelve years with the Chicago Strike Force." Tr. 1796-97. Roller was the head of the Chicago Strike Force from 1975 to 1978. Tr. 1798-99. Roller testified that he considered John O'Rourke to be "a very fine agent." Tr. 1799.
208. Roller stated that he had some familiarity with Joe Granata. Tr. 1807. Roller stated that Granata had been incarcerated for a murder conviction after having been relocated due
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52 The Independent Hearing Officer was Roller's supervisor during the early 1970s. Tr. 1802.
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to acting as an informant for the FBI. Tr. 1807-08. Roller also stated that Granata's position with organized crime was "more related to his relatives and his name than any of his activities" and that he was aware that Granata had used drugs while acting as an informant of the FBI and that he had made buys of drugs in contravention of FBI directives. Tr. 1808.
209. Marvin Gittler (Gittler) is an employment/labor law attorney practicing in the Chicago area. Tr. 1843. Gittler testified that he has known Bruno Caruso since approximately 1983 or 1984 when he became counsel for the Coalition of Trade Unions, a coalition of labor organizations which negotiate with the City of Chicago. Tr. 1845. Gittler testified that Bruno Caruso keeps his word in negotiations and works for the interest of the membership. Tr. 184849. Gittler stated that he had never heard anything regarding Bruno Caruso being linked to organized crime. Tr. 1849-50. Gittler testified that he did not have any information regarding Bruno Caruso's personal life outside of the bargaining agreements context and that as counsel for the Coalition of Trade Unions, it was not his purpose to investigate whether an individual was involved in organized crime. Tr. 1852-53.
Charges Against Respondents Bruno Caruso, Frank Caruso, and Leo Caruso
Associate Status in Organized Crime
210. Charges 1, 6, and 11 allege that the Respondents Bruno Caruso, Frank Caruso, and Leo Caruso, respectively, committed barred conduct by being an associate of the 26th Street Crew of the Chicago Outfit.
Discussion: Application of Legal Standard
Membership in the LCN whether as a made member or associate status is barred conduct prohibited under the EDP.In the Matter of LIUNA Local 210 and related cases, 1998 A.O. 279 (98-017-IHO; 98-022-IHO; 98-033-IHO). "[T]he charge that a LIUNA member is an LCN
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associate does not require any showing that the member has committed predicate acts of racketeering." Local 210 at 309. Therefore, in order to substantiate charges 1, 6, and 11, the GEB Attorney must show by a preponderance of the evidence that Bruno Caruso, Frank Caruso, and Leo Caruso maintained an associate level status within organized crime. The GEB Attorney is not required to demonstrate specific illegal acts performed by the Respondents.
Findings Regarding Associate Status in LCN
211. Charge 1 states as follows:
BRUNO CARUSO is, or has been an associate of the 26th Street Crew of the Chicago Outfit and, by virtue of his status, he has committed barred conduct under the EDP.
212. As discussed supra, in multiple law enforcement surveillance, Bruno Caruso was seen in the company of high level members of organized crime. These events included a three hour dinner with John Monteleone, Shorty LaMantia, and James DiForti the testimony of which was corroborated by a contemporaneous FBI 302; a visit by James Inendino to Bruno Caruso's home; meeting with Ron Jarrett at a cigar store. In addition, Corbitt, Cooley, and Bills testified that as associates of organized crime themselves, they had seen Bruno Caruso present at illegal dice games run by members of organized crime who were present at the games such as Larry Pusiteri and Richie Catazone. Furthermore, Leo Caruso testified that while he did not see Bruno Caruso gambling, he did see Bruno Caruso present in the building where the gambling took place, in direct contradiction to Bruno Caruso's testimony that he was absolutely unaware of where the dice games were taking place. Additional testimony from Cooley and Corbitt indicated that Bruno Caruso met with Pat Marcy at the Counselor's Row at the First Ward table, including an incident where an envelope was exchanged between Bruno Caruso and Pat Marcy. Both Cooley and Corbitt gave testimony that as individuals heavily involved with organized crime, they had seen Bruno Caruso interacting with other organized crime individuals and that
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based on their own observations of Bruno Caruso's interactions and their knowledge of organized crime, Bruno Caruso was an associate of organized crime. O'Rourke gave testimony that four cooperating witnesses, Mara, Granata, Basile, and Filippi told him that Bruno Caruso was involved with the 26th Street Crew. Based upon his years experience with the FBI investigating organized crime, O'Rourke gave an expert opinion that Bruno Caruso was a member of organized crime.
213. The independent evidence of the meetings with high ranking organized crime figures, the statements of organized crime associates, and the expert opinion of O'Rourke, corroborate each other and prove by a preponderance of the evidence that Bruno Caruso is an associate of organized crime.
214. Charge 6 states as follows:
FRANK CARUSO is, or has been an associate of the 26th Street Crew of the Chicago Outfit and, by virtue of his status, he has committed barred conduct under the EDP.
215. As discussed supra, in multiple law enforcement surveillance, Frank Caruso was seen in the company of high level members of organized crime including FBI monitored meetings with Shorty LaMantia and Aldo Piscitelli; Title III affidavits indicating telephone calls between Frank Caruso and members of organized crime; a three hour dinner meeting which included John Monteleone, Joseph LaMantia, and James DiForti; and a meeting with Jarrett. In addition, Cooley, who formerly was heavily involved with organized crime stated that he had met Frank Caruso with Larry Pusiteri and Captain DiFazio. Furthermore, Cooley stated that Abbinanti had "okayed" Cooley with Frank Caruso as a bookmaker and Cooley also testified that Frank Caruso had given him a phone number and an identification number for Cooley to use to place bets which Cooley did in fact use for that purpose. Cooley also stated that he had attended illegal dice games where Larry Pusiteri and Richie Catazone were present. Cooley testified that
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based upon his interaction with organized crime, he considered Frank Caruso to be in a higher echelon than street level. Corbitt testified that he had seen Frank Caruso with members of organized crime such as Angelo LaPietra, John Monteleone, and Pat Marcy. O'Rourke related testimony of cooperating individuals 'Maya, Granata, Basile, Filipppi regarding Frank Caruso's relationship with organized crime. The IHO notes that Granata's information was recorded in a contemporaneous FBI 302 and was corroborated by Gerald Shallow's statements which were also contemporaneously noted in an FBI 302. Finally, O'Rourke gave his expert opinion that Frank Caruso was a member of organized crime.
216. The surveillance of Frank Caruso with organized crime figures, the testimony of organized crime associates, the testimony of cooperating individuals, and the O'Rourke's expert opinion all corroborate each other in material respects. The IHO finds that there is a preponderance of the evidence that Frank Caruso is an associate of organized crime.
217. Charge 11 states as follows:
LEO CARUSO is, or has been an associate of the 26th Street Crew of the Chicago Outfit and, by virtue of his status, he has committed barred conduct under the EDP.
218. Cooley and Bills testified that Leo Caruso attended dice games run by members of organized crime where individuals such as Larry Pusiteri, Richie Catazone, and Shorty LaMantia were present. Cooley testified that Leo Caruso had an interest in the game while Bills said that Leo Caruso was involved in the game by acting as a lookout for the games. Leo Caruso testified and submitted a blueprint of the location where the dice games were held. The IHO does not credit Leo Caruso's testimony that he was not present in the part of the building where the gambling took place. Cooley testified that he had seen Leo Caruso at Counselor's Row meeting with Pat Marcy, which meetings alone would not be probative; however, in the context of the other evidence it is an element to be considered. Cooley testified that from his experience
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in interacting with organized crime figures and the need to know who was important for his own protection, he considered Leo Caruso to be an associate of organized crime at a higher level than just the street level echelon. O'Rourke gave testimony regarding information related to him by cooperating individuals Mara, Granata, Basile, and Filippi who all stated that Leo Caruso was an associate member of organized crime. O'Rourke gave his expert opinion that Leo Caruso was an associate member of organized crime.
219. The IHO finds that the testimony of associates of organized crime, cooperating individuals involved with organized crime, and O'Rourke's expert opinion, all corroborate each other in material respects. The IHO finds that there is a preponderance of the evidence that Leo Caruso is an associate of organized crime and by such associate status has committed barred conduct.
Knowing Association with Organized Crime
220. Charges 2, 7, and 12 allege that Respondents Bruno Caruso, Frank Caruso, and Leo Caruso, respectively, have committed barred conduct by knowingly associating with members and associates of the Chicago Outfit.
Discussion: Application of Legal Standard
The standard for proving knowing association differs from that of associate membership as discussed in reference to Charges 1, 6, and 11. Under the EDP, the elements of the term knowing association are: "a) an individual knew that the person with whom he or she was associating was a member or associate of the LCN; b) the association related directly or indirectly to the affairs of the Union; and c) the association was more than fleeting or casual."
The first element, knowing association, is demonstrated if the charged party had 1) actual knowledge, 2) reasonably should have known, or 3) deliberately remained ignorant of facts that
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in interacting with organized crime figures and the need to know who was important for his own protection, he considered Leo Caruso to be an associate of organized crime at a higher level than just the street level echelon. O'Rourke gave testimony regarding information related to him by cooperating individuals Mara, Granata, Basile, and Filippi who all stated that Leo Caruso was an associate member of organized crime. O'Rourke gave his expert opinion that Leo Caruso was an associate member of organized crime.
219. The IHO finds that the testimony of associates of organized crime, cooperating individuals involved with organized crime, and O'Rourke's expert opinion, all corroborate each other in material respects. The IHO finds that there is a preponderance of the evidence that Leo Caruso is an associate of organized crime and by such associate status has committed barred conduct.
Knowing Association with Organized Crime
220. Charges 2, 7, and 12 allege that Respondents Bruno Caruso, Frank Caruso, and Leo Caruso, respectively, have committed barred conduct by knowingly associating with members and associates of the Chicago Outfit.
Discussion: Application of Legal Standard
The standard for proving knowing association differs from that of associate membership as discussed in reference to Charges 1, 6, and 11. Under the EDP, the elements of the term knowing association are: "a) an individual knew that the person with whom he or she was associating was a member or associate of the LCN; b) the association related directly or indirectly to the affairs of the Union; and c) the association was more than fleeting or casual."
The first element, knowing association, is demonstrated if the charged party had 1) actual knowledge, 2) reasonably should have known, or 3) deliberately remained ignorant of facts that
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f
would show that the person with whom he was associating is a member or associate of organized crime. In the Matter of Napoli and Fallacara, IHO Order and Memorandum 96-65D (1-2) (September 26, 1997).
In Fallacara,-the IHO set the following standard for determining the second element, whether an association with the LCN has an effect on the union:
Under the EDP, the term "knowingly associate" means that the union member knew that the person with whom he/she was associating was a member or associate of the LCN, the association related directly or indirectly to the affairs of the union; and the association was more than fleeting or casual.
The requirement that the association be directly or indirectly related to the affairs of the union will be liberally construed by the IHO to effect the purpose of the EDP. It is apparent from the agreement between LIUNA and the Department of Justice and the text of the EDP and the EPC that the major aim of the reform process is to rid the union of the influence of organized crime. It follows that the drafters of the agreement would not expect that the reform effort will be subjected to unduly restrictive definitions, so as to thwart the plain purpose of the initiative. The phrase directly and indirectly related to the affairs of the union will be construed to encompass any reasonable relationship to the affairs of the union, its members, or its officers. The relationship to the affairs of the union need not on its face affect the operation of the union; it need only reflect that the "knowing association" permits the undesirable individuals to have easy access to the union officers and members in the total atmosphere of the labor union operation.
Findings Regarding Knowing Association
221. Charge 2 states as follows:
BRUNO CARUSO has committed barred conduct under the EDP by knowingly associating with various members and associates of the Chicago Outfit, including:
Angelo "The Hook" LaPietra, James LaPietra, John "Apes" Monteleone, Larry Pusiteri, Richie "The Cat" Catazone, "Dirge" Imperato, Donald "Captain D" DiFazio, and Joseph "Shorty" LaMantia.
222. As stated supra regarding Charge 1, the IHO has found that Bruno Caruso was an associate of organized crime. As such, Bruno Caruso has knowledge that the individuals with
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whom he associated were members and associates of organized crime. However, even if Charge 1 had not been proved, the IHO finds that the LCN being a closed society is of such a nature that high level members of organized crime do not have regular contact with individuals who are outsiders to organized crime. The evidence presented demonstrates that Bruno Caruso had dinner for several hours at the same table with members of organized crime, had a member of organized crime visit him at his home, attended illegal gambling games which are not of the nature open to the public, was seen meeting with individuals of organized crime on multiple occasions, including a politician involved with fixing cases after receiving the trusteeship complaint for the District Council of which he was the highest ranking officer, was identified by direct testimony of three individuals who were heavily involved with organized crime as frequently being present in the company of organized crime individuals, was identified by four named cooperating informants to associate with organized crime, and expert opinion association with organized crime. The IHO finds there is a preponderance of the evidence that Bruno Caruso knowingly associated with members of organized crime.
223. Bruno Caruso's organized crime activities clearly involved LIUNA:
� Bruno Caruso and DiForti met with Monteleone and other organized crime individuals the day before DiForti transferred from Local 1006 to Local 5. Bruno Caruso stated that the transfer could have been discussed at the meeting. However, the Executive Board and general membership of Local 5 or Local 1006 had not been informed of the change.
� Bruno Caruso visited Fred Roti for many hours the day he received the CDC complaint.
� Following a conviction and court ruling that Caporale should forfeit his union positions for his participation in a conspiracy to loot the CDC's Welfare Fund, Bruno Caruso voted with the rest of the CDC to promote Caporale to the position of Business Manager of the CDC, a position he held until his incarceration. Bruno Caruso did not question the bypass of the 1987 election where Caporale resigned from his position and appointed Kumerow to replace him. Tr. 1527. In
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addition to ratifying the decision, Bruno Caruso voted to approve the falsified minutes to conceal the lack of elections.
� Following Frank Caruso's arrest for extortion, Bruno Caruso, as a CDC delegate voted to appoint Frank Caruso as Sergeant-at-Arms.
� Wile Secretary-Treasurer of Local 1002, Bruno Caruso actively participated in James DiForti's ascent within the union. Bruno Caruso made the motion to hire DiForti as a paid field representative, despite DiForti's lack of experience as a LIUNA member.
� Within one month of Nick Gironda's demotion and suspension from the City of Chicago for failure to supervise no-show employees, without investigation of the allegations, Bruno Caruso as SecretaryTreasurer of Local 1001 permitted Gironda to be promoted and his salary doubled at Local 1001.
� Bruno Caruso as a Fund trustee permitted Frank Caruso to become director of the pension funds despite Frank Caruso's lack of qualifications and failure to do work for the position.
� Bruno Caruso met with organized crime individuals prior to DiForti's transfer and was aware of DiForti's transfer before the Local S and Local 1006 Executive Boards.
� In 1994, when Kumerow resigned his CDC offices only one month after an election to a four year term, Bruno Caruso was the primary beneficiary by being appointed to all of Kumerow's positions including President and Business Manager of the CDC and Local 1001, thereby bypassing the democratic process. This resignation and the following appointments were a complete manipulation of the democratic practice.
224. The IHO finds that Bruno Caruso's association with members of organized crime related to the affairs of the union in three ways. First, Bruno Caruso provided members of crime access to a union officer, himself. Second, Bruno Caruso participated and directly benefited from an illicit scheme to keep organized crime individuals and friends of organized crime in union political power through the fixing of union elections. Not only did Bruno Caruso allow other organized crime individuals to gain officer positions, but he too gained his union offices
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through organized crime connections. Finally, Bruno Caruso's participation in organized crime brought disrepute upon the union as he perpetuated the taint of mob influence within the union.
225. The IHO finds that it was Bruno Caruso's organized crime connections which facilitated his rise within LIUNA to the positions of running Local 1001 and the Chicago District Council. The IHO further finds that both in time duration and extensiveness, Bruno Caruso's participation in organized crime was not fleeting or casual.
226. Based upon the evidence, the IHO finds that Bruno Caruso knew he was associating with members of organized crime, that his association related to the affairs of the union, and that the association was not fleeting or casual. The IHO finds that Bruno Caruso knowingly associated with members and associates of the Chicago Outfit and by such associate status has committed barred conduct.
227. As to the individuals specified in the charges, the IHO finds that Bruno Caruso knowingly associated with the following: Angelo LaPietra, John Monteleone, Larry Pusiteri, Richie Catazone, Donald "Captain D" DiFazio, and Joseph LaMantia. The IHO notes that these were not the only organized crime individuals with whom Bruno Caruso met and that he met with other organized crime individuals not named individually in the charges.
228. As to the individuals specified in the charges, the IHO finds insufficient evidence that Bruno Caruso knowingly associated with the following: James LaPietra or Dirge Imperato.
229. Charge 7 states as follows:
FRANK CARUSO has committed barred conduct under the EDP by knowingly associating with various members and associates of the Chicago Outfit, including:
Robert "Bobby" Abbinanti, Marco D'Amico, Charles Francis "Guy" Bills, Richie "the Cat" Catazone, Larry Pusiteri, Joseph "Shorty" LaMantia.
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230. As stated supra regarding Charge 2, the IHO has found that Frank Caruso was an associate of organized crime. As such, Frank Caruso has knowledge that the individuals with whom he associated were members and associates of organized crime. However, even if Charge 2 had not been proved, the IHO finds that the LCN being a closed society is of such a nature that high level associates of organized crime do not have regular contact with individuals who are outsiders to organized crime. The evidence presented demonstrates that Frank Caruso had dinner for several hours at the same table with high ranking members of organized crime, was involved with illegal gambling games and bookmaking, participated in robberies, telephoned organized crime individuals, was seen meeting with individuals of organized crime on multiple occasions, was appointed as Sergeant-at-Arms of the District Council shortly after being arrested for extortion, was identified by direct testimony of three individuals who were heavily involved with organized crime as frequently being present in the company of organized crime individuals, participating in illegal gambling, bookmaking, and chopshop activities, was identified by four named cooperating informants to associate with organized crime, and an expert in organized crime was of the opinion that he associated with organized crime. The IHO finds there is a preponderance of the evidence that Frank Caruso had knowledge that the individuals with whom he was associating were members of organized crime.
231. Frank Caruso's organized crime activities clearly involved LIUNA:
� Frank Caruso was Sergeant-at-Arms and delegate to the CDC when Kumerow took office following Caporale's incarceration and as a delegate Frank Caruso acquiesced in the falsification of the 1987 minutes.
� Frank Caruso was President and Business Manager of Local 1006 when James DiForti was permitted to merge into Local 1006 with the incoming Local 1002 members and work as a paid Business Agent.
� Frank Caruso, Bruno Caruso, and DiForti met with Monteleone, Joseph LaMantia and other organized crime individuals the day before
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DiForti transferred from Local 1006 to Local 5; at the time, Frank Caruso was President and Business Manager of Local 1006 and Sergeant-at-Arms in the District Council. Bruno Caruso stated that the transfer could have been discussed at the meeting. However, the Executive Board and general membership of Local 5 or Local 1006 had not been informed of the change.
� Frank Caruso was appointed Sergeant-at-Arms of the CDC shortly after his arrest for extortion.
� Although unqualified, Frank Caruso was appointed as associate director of the trust fund (a position created for his benefit) and later director a position for which he did little or no work yet received unparalleled salary.
� Frank Caruso resigned as President and Business Manager of Local 1006 and Sergeant-at-Arms of the District Council the day after he received a deposition notice from the GEB Attorney.
232. The IHO finds that Frank Caruso's association with members of organized crime related to the affairs of the union in three ways. First, Frank Caruso provided members of crime access to a union officer, himself. Second, Frank Caruso participated and directly benefited from an illicit scheme to keep organized crime individuals and friends of organized crime in union political power through the fixing of union elections. Not only did Frank Caruso allow other organized crime individuals to gain officer positions, but he too gained his union offices and trust director positions through organized crime connections. Finally, Frank Caruso's participation in organized crime brought disrepute upon the union as he perpetuated the taint of mob influence within the union.
233. The IHO finds that Frank Caruso has been heavily involved in organized crime activities all his adult life and continues to this day. Furthermore, it was Frank Caruso's organized crime connections which facilitated his rise within LIUNA to the positions of running Local 1006, officer position with Chicago District Council, and a well paying trust director position for which he was unqualified and did no work. Therefore, the IHO finds that both in
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time duration and extensiveness, Frank Caruso's participation in organized crime was not fleeting or casual.
234. Based upon the evidence, the IHO finds there is a preponderance of the evidence that Frank Caruso knew he was associating with members of organized crime, that his association related to the affairs of the union, and that the association was not fleeting or casual. The IHO finds that Frank Caruso knowingly associated with members and associates of the Chicago Outfit and by such associate status has committed barred conduct.
235. As to the individuals specified in the charges, the IHO finds that Frank Caruso knowingly associated with the following: Robert Abbinanti, Charles Francis "Guy" Bills, Richie Catazone, Larry Pusiteri, and Joseph "Shorty" LaMantia.
236. As to the individuals specified in the charges, the IHO finds insufficient evidence that Frank Caruso knowingly associated with Marco D'Amico.
237. Charge 12 states as follows:
LEO CARUSO has committed barred conduct under the EDP by knowingly associating with various members and associates of the Chicago Outfit, including:
Angelo "The Hook" LaPietra, James LaPietra, John "Apes" Monteleone, Larry Pusiteri, Richie "The Cat" Catazone, "Dirge" Imperato, Donald "Captain D" DiFazio, and Joseph "Shorty" LaMantia.
238. As stated supra regarding Charge 3, the IHO has found that Leo Caruso was an associate of organized crime. As such, Leo Caruso has knowledge that the individuals with whom he associated were members and associates of organized crime. However, even if Charge 3 had not been proved, the IHO finds that the LCN being a closed society is of such a nature that high level associates of organized crime do not have regular contact with individuals who are outsiders to organized crime. The evidence presented demonstrates that Leo Caruso attended illegal gambling games which are not of the nature open to the public, was seen meeting with
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individuals of organized crime on multiple occasions, was identified by direct testimony of two individuals who were heavily involved with organized crime as frequently being present in the company of organized crime individuals, was identified by four named cooperating informants to associate with organized crime, and expert opinion association with organized crime. The IHO finds that Leo Caruso had knowledge that the individuals with whom he was associating were members of organized crime.
239. Leo Caruso's organized crime activities clearly involved LIUNA:
� Leo Caruso was appointed to the Executive Board of Local 1006 shortly after his transfer to that Local, in violation of the Constitution.
� Leo Caruso was appointed Secretary-Treasurer of Local 1006 outside of the election cycle.
� Leo Caruso was the individual who, as the Secretary-Treasurer, issued the transfer card received by Frank Zuberis which facilitated DiForti's move to Local 5.
� After Frank Caruso was arrested for extortion, it was Leo Caruso who nominated Frank Caruso to the Sergeant-at-Arms position in the District Council.
� Leo Caruso was the Secretary-Treasurer of Local 1006 when DiForti merged with the incoming 1002 members as a third paid field representative when Local 1006 had never before or after had more than two field representatives.
� Leo Caruso was one of the labor trustees who voted to create the position of associate director and appoint Frank Caruso to the position, despite Frank Caruso's lack of qualifications. Leo Caruso also approved of Frank Caruso's increase in pay when he assumed director of the fund, despite the fact that Frank Caruso did little or no work as director.
� As a delegate, Leo Caruso voted to approve the falsified 1987 and 1994 minutes to conceal the fact that proper elections were being bypassed.
� After Frank Caruso resigned the day after receiving a deposition notice from the GEB Attorney, Leo Caruso was appointed to all of Frank
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Caruso's Local and CDC positions, despite the fact that an election was scheduled within only two days.
� There was never an contested election held at Local 1006 while Leo Caruso was an officer or an Executive Board member.
� After allegations that he was holding a no-show position with the City of Chicago, Leo Caruso resigned from the City.
240. The IHO 'finds that Leo Caruso's association with members of organized crime related to the affairs of the union in three ways. First, Leo Caruso provided members of crime access to a union officer, himself. Second, Leo Caruso participated and directly benefited from an illicit scheme to keep organized crime individuals and friends of organized crime in union political power through the fixing of union elections. Not only did Leo Caruso allow other organized crime individuals to gain officer positions, but he too gained his union offices through organized crime connections. Finally Leo Caruso's participation in organized crime brought disrepute upon the union as he perpetuated the taint of mob influence within the union.
241. The IHO finds that Leo Caruso's participation in organized crime activities has extended his entire adult life and continues to this day. Furthermore, it was Leo Caruso's organized crime connections which facilitated his rise within LIUNA to the positions of running Local 1006. The IHO finds that both in time duration and extensiveness, Leo Caruso's participation in organized crime was not fleeting or casual.
242. Based upon the evidence, the IHO finds that there is a preponderance of the evidence that Leo Caruso knew he was associating with members of organized crime, that his association related to the affairs of the union, and that the association was not fleeting or casual. Therefore, the IHO finds that Leo Caruso knowingly associated with members and associates of the Chicago Outfit and by such associate status has committed barred conduct.
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243. As to the individuals specified in the charges, the IHO finds that Leo Caruso knowingly associated with the following: John Monteleone, Larry Pusiteri, Richie Catazone, Donald "Captain D" DiFazio, and Joseph "Shorty" LaMantia.
244. As to-the individuals specified in the charges, the IHO finds insufficient evidence that Leo Caruso knowingly associated with the following: Angelo "The Hook" LaPietra, James LaPietra, and "Dirge" Imperato.
Violation of Duty of Loyalty
245. Charges 3, 8, and 13 allege that Respondents Bruno Caruso, Frank Caruso, and Leo Caruso, respectively, violated their duty of loyalty by failing to investigate or eradicate organized crime influence.
Discussion: Application of Legal Standard
All LIUNA officials have the duty to act in the best interest of the union. Included in an officer's duty is the requirement to purge the taint of corruption and not to ignore allegations of organized crime influence in the union. Matter of Fresina, 1998 A.O. 115. The GEB Attorney has the burden of proving that the Respondents failed to carry out their duty of purging the union of organized crime influence.
Findings Regarding Violation of Duty of Loyalty
246. There has been much debate regarding how extensive the duty to investigate is, and what options were available to Respondents prior to the adoption of the EPC/EDP in 1995 and what options are currently available to delegates and officers. However, the IHO does not need to address these questions in the present case because the IHO finds that the Respondents did much more than fail to investigate organized crime influence in LIUNA. The Respondents
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affirmatively assisted the interest of organized crime. The IHO discusses the role of each
Respondent as follows.
247. Charge 3 states as follows:
BRUNO CARUSO has violated the obligation of undivided loyalty incumbent upon all union members, officers and employees of LIUNA, including but not limited to, those duties set forth in the LIUNA Ethical Practices Code and those duties of union officials set forth in 29 U.S.C. �501(a), to wit: BRUNO CARUSO failed to take any steps to investigate or eradicate organized crime influence within the Chicago District Council and certain of its affiliated locals. Specifically, BRUNO CARUSO failed to inform his fellow officers and CDC delegates of the ties that FRANK CARUSO, LEO CARUSO, DIFORTI and others had to the Chicago Outfit and he failed to take any steps to investigate publicized reports of organized crime influence or violations of law by certain CDC officers and delegates including Vincent Solano, James Caporale, John Matassa, FRANK CARUSO and others.
248. Bruno Caruso violated his duty of loyalty by actively assisting in the promotion of organized crime individuals including himself:
� Following a conviction and court ruling that Caporale should forfeit his union positions for his participation in a conspiracy to loot the CDC's Welfare Fund, Bruno Caruso as a delegate voted with the rest of the CDC to promote Caporale to the position of Business Manager of the CDC, a position he held until his incarceration.
� Following Frank Caruso's arrest for extortion, Bruno Caruso, as a CDC delegate voted to appoint Frank Caruso. as Sergeant-at-Arms. As a delegate to the District Council, especially from one of the largest and more influential local unions in the council, he was in a position of higher responsibility than if he were a mere local member voting at a union meeting. A delegate has the responsibility of representing his local union and for exercising leadership.
� While Secretary-Treasurer of Local 1002, Bruno Caruso actively participated in James DiForti's ascent within the union. Bruno Caruso made the motion to hire DiForti as a paid field representative, despite DiForti's lack of experience as a LIUNA member.
� Within one month of Nick Gironda's demotion and suspension from the City of Chicago for failure to supervise no-show employees, without investigation of the allegations, Bruno Caruso as Secretary
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Treasurer of Local 1001 permitted Gironda to be promoted and his salary doubled at Local 1001.
� Bruno Caruso as a Fund trustee permitted Frank Caruso to become director of the pension funds despite Frank Caruso's lack of qualifications and failure to do work for the position.
249. Bruno Caruso violated his duty of loyalty by actively thwarting democratic rule to ensure the selection of organized crime friendly individuals including himself:
� Bruno Caruso did not question the bypass of the 1987 election where Caporale resigned from his position and appointed Kumerow to replace him. Tr. 1527. In addition to ratifying the decision, Bruno Caruso voted to approve the falsified minutes to conceal the lack of elections.
� Bruno Caruso met with organized crime individuals prior to DiForti's transfer and was aware of DiForti's transfer before the Local 5 and Local 1006 Executive Boards.
� In 1994, when Kumerow resigned his CDC offices only one month after an election to a four year term, Bruno Caruso was the primary beneficiary by being appointed to all of Kumerow's positions including President and Business Manager of the CDC and Local 1001, thereby bypassing the democratic process
250. The IHO notes that while in the CDC, Bruno Caruso represented the most powerful local within the district council.
251. It is clear that Bruno Caruso could not have eradicated organized crime within the union if he was instead fostering a friendly environment for organized crime of which he personally benefited. Based upon the evidence, the IHO finds that Bruno Caruso violated his obligation of undivided loyalty to the union.
252. Charge 8 states as follows:
FRANK CARUSO has violated the obligation of undivided loyalty incumbent upon all union members, officers and employees of LIUNA, including but not limited to, those duties set forth in the LIUNA Ethical Practices Code and those duties of union officials set forth in 29 U.S.C. �501(a), to wit: FRANK CARUSO failed to take any steps to investigate or eradicate organized crime influence within the Chicago District Council
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and certain of its affiliated locals. Specifically, FRANK CARUSO failed to inform his fellow officers and CDC delegates of the ties that BRUNO CARUSO, LEO CARUSO, DIFORTI and others had to the Chicago Outfit and he failed to take any steps to investigate publicized reports of organized crime influence or violations of law by certain CDC officers and delegates including Vincent Solano, James Caporale, John Matassa, and others.
253. Frank Caruso violated his duty of loyalty by actively assisting in the promotion of organized crime individuals including himself-
Following Following a conviction and court ruling that Caporale should forfeit
his union positions for his participation in a conspiracy to loot the
CDC's Welfare Fund, Frank Caruso as a delegate voted with the rest
of the CDC to promote Caporale to the position of Business Manager
of the CDC, a position he held until his incarceration.
Following his arrest for extortion, Frank Caruso accepted an appointment to the position of CDC Sergeant-at-Arms.
Frank Caruso as President and Business Manager of Local 1006 hired DiForti as a third field representative for Local 1006 which never before or after had three paid field representatives.
- Frank Caruso as President and Business Manager of Local 1006 did not raise any questions regarding allegations against Leo Caruso, his Secretary-Treasurer, having a no-show job with the City of Chicago.
� Frank Caruso became director of the pension funds a position for which he was unqualified, overcompensated, and did no work.
254. Frank Caruso violated his duty of loyalty by actively thwarting democratic rule to
ensure the selection of organized crime friendly individuals including himself:
� Frank Caruso did not question the bypass of the 1987 election where Caporale resigned from his position and appointed Kumerow to replace him. In addition to ratifying the decision, Frank Caruso voted to approve the falsified minutes to conceal the lack of elections.
� As a delegate, Frank Caruso voted to approve the appointment of Bruno Caruso to all of Kumerow's positions after Kumerow resigned just one month into a four year term.
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� After Frank Caruso resigned to avoid deposition by the GEB Attorney, Leo Caruso was appointed to all of Frank Caruso's positions, despite the fact that the election was only two days away.
255. Based upon the evidence, the IHO finds that Frank Caruso violated his obligation of undivided loyalty to the union.
256. Charge 13 states as follows:
LEO CARUSO has violated the obligation of undivided loyalty incumbent upon all union members, officers and employees of LIUNA, including but not limited to, those duties set forth in the LIUNA Ethical Practices Code and those duties of union officials set forth in 29 U.S.C. �501(a), to wit: LEO CARUSO failed to take any steps to investigate or eradicate organized crime influence within the Chicago District Council and certain of its affiliated locals. Specifically, LEO CARUSO failed to inform his fellow officers and CDC delegates of the ties that FRANK CARUSO, BRUNO CARUSO, DIFORTI and others had to the Chicago Outfit and he failed to take any steps to investigate publicized reports of organized crime influence or violations of law by certain CDC officers and delegates including Vincent Solano, James Caporale, John Matassa, FRANK CARUSO and others.
257. Leo Caruso violated his duty of loyalty by actively assisting in the promotion of organized crime individuals including himself -
� While an Executive Board member and later Secretary-Treasurer of Local 1006, Leo Caruso actively participated in James DiForti's ascent within the union. DiForti was a known associate of organized crime and Leo Caruso should have known of his affiliation.
� When Local 1002 merged into Local 1006, Leo Caruso as a member of the Executive Board voted to permit James DiForti to be appointed as a business agent without discussion with the membership and without himself having met DiForti. In addition, James DiForti was hired as a third field representative for Local 1006 which before and after DiForti only had two field representatives.
� Leo Caruso as a Fund trustee permitted Frank Caruso to become director of the pension funds despite Frank Caruso's lack of qualifications and failure to do work for the position. Furthermore, as a result of Frank Caruso's job at the Pension Fund, Leo Caruso was promoted at Local 1006.
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258. Leo Caruso violated his duty of loyalty by actively thwarting democratic rule to ensure the selection of organized crime friendly individuals including himself
� In 1988, Leo Caruso voted to approve the falsified election minutes to conceal the lack of elections.
� Leo Caruso assisted DiForti's transfer from Local 1006 to Local 5 without the consent of the Local 5 members. Leo Caruso approved DiForti's transfer prior to the knowledge of the Local 1006 or Local 5 memberships.
� As a delegate, Leo Caruso voted to approve the appointment of Bruno Caruso to all of Kumerow's positions after Kumerow resigned just one month into a four year term.
� After Frank Caruso resigned in order to avoid being deposed by the GEB Attorney, Leo Caruso was appointed to all of Frank Caruso's positions, despite the fact that the scheduled election was only two days away.
259. Based upon the evidence, the IHO finds that Leo Caruso violated his obligation of undivided loyalty to the union.
Permitting Organized Crime Influence Resulting in Failure of Democratic Process
260. Charges 4, 9, and 14 allege that Respondents Bruno Caruso, Frank Caruso, and Leo Caruso, respectively, permitted members and associates of organized crime to exercise control and influence over the CDC and its affiliated locals resulting in a failure of the democratic process.
Discussion: Application of Legal Standard
Union officials have the duty to prevent organized crime from asserting influence on the union. It is no defense to state that the technicalities of election procedures have been followed if the effect is to bypass the democratic process and permit the influence of organized crime.
Finding Regarding Permitting Organized Crime Influence
261. Charge 4 states as follows:
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BRUNO CARUSO has permitted members and/or associates of the LCN to exercise control or influence over the affairs of the Chicago District Council and certain of its affiliated entities by permitting those with ties to the LCN to hold positions of trust and to exercise those positions to further LCN influence. BRUNO CARUSO participated in a pattern of organized crime influence over the Chicago District Council resulting in a failure of democratic process arid the selection of members and associates of the Chicago Outfit to top positions within the Chicago District Council and certain of its affiliated entities. 262. The IHO incorporates his findings above in paragraphs 212, 222-27, 248-50.
263. Based upon the evidence, the IHO finds that Bruno Caruso not only permitted the LCN to exercise control and influence over the affairs of the CDC and its affiliated entities by permitting individuals with LCN ties to hold positions of trust to further LCN influence but in addition Bruno Caruso actively assisted in the exercise of control and influence and personally benefited.
264. Charge 9 states as follows:
FRANK CARUSO has permitted members and/or associates of the LCN
to exercise control or influence over the affairs of the Chicago District
Council and certain of its affiliated entities by permitting those with ties to
the LCN to hold positions of trust and to exercise those positions to further
LCN influence. FRANK CARUSO participated in a pattern of organized
crime influence over the Chicago District Council resulting in a failure of
democratic process and the selection of members and associates of the
Chicago Outfit to top positions within the Chicago District Council and
certain of its affiliated entities.
265. The IHO incorporates his findings above in paragraphs 215, 230-234, 253-54.
266. Based upon the evidence, the IHO finds that Frank Caruso not only permitted the LCN to exercise control and influence over the affairs of the CDC and its affiliated entities by permitting individuals with LCN ties to hold positions of trust to further LCN influence but in addition Frank Caruso actively assisted in the exercise of control and influence and personally benefited.
267. Charge 14 states as follows:
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LEO CARUSO has permitted members and/or associates of the LCN to
exercise control or influence over the affairs of the Chicago District
Council and certain of its affiliated entities by permitting those with ties to
the LCN to hold positions of trust and to exercise those positions to further
LCN influence. LEO CARUSO participated in a pattern of organized
crime influence over the Chicago District Council resulting in a failure of
democratic process arid the selection of members and associates of the
Chicago Outfit to top positions within the Chicago District Council and
certain of its affiliated entities.
268. The IHO incorporates his findings above in paragraphs 218, 238-42, 257-58.
269. Based upon the evidence, the IHO finds that Leo Caruso not only permitted the LCN to exercise control and influence over the affairs of the CDC and its affiliated entities by permitting individuals with LCN ties to hold positions of trust to further LCN influence but in addition Leo Caruso actively assisted in the exercise of control and influence and personally benefited.
Constitutional Duty Regarding Proper Conduct of LIUNA Business
270. Charges 5, 10, and 15 allege that by permitting organized control or influence of the CDC and its affiliated locals, Respondents Bruno Caruso, Frank Caruso, and Leo Caruso, respectively, failed in their constitutional duties to ensure that the affairs and business are properly conducted and also interfered with the proper conduct of LIUNA business.
Discussion: Application of Legal Standard
LIUNA members are required to refrain from interfering with the proper conduct of all business of the organization. Uniform Local Union Constitution, Article III, Section 3(d). In addition, members of the District Council Executive Board are required to ensure that the affairs and business of the District Council are properly conducted according to the constitution. Uniform District Council Constitution, Article VII, Section 7(I). The election and appointment of officers process are part of official LIUNA business. Interference with these processes constitutes interference with the proper conduct of LIUNA
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business and a violation of both the local and district council constitutions. Organized crime participation also interferes with the proper conduct of LIUNA business and is a violation of the constitution.
Findings Regarding Proper Conduct of LIUNA Business
271. Charge 5 states as follows:
In permitting the LCN to exercise control or influence over the Chicago
District Council and certain of its affiliated entities as alleged more
specifically in Charge 4, BRUNO CARUSO failed to honor his
obligations as a LIUNA member to refrain from interfering with the
proper conduct of LIUNA business in violation of Article III, Section 3(d)
of the Uniform Local Constitution, his duty as an Executive Board
member of a LIUNA Local to see to it that the affairs and business of the
Local are being properly conducted in violation of Article IV, Section
4(H)(9) of the Uniform Local Constitution, and his duty as an Executive
Board member of the Chicago District Council to see to it that the affairs
and business of the Chicago District Council are being properly conducted
in violation of Article VII, Section 7(i) of the Uniform District Council
Constitution.
272. The IHO incorporates his findings above in paragraphs 212, 222-27, 248-50.
273. Based upon the evidence, the IHO finds that Bruno Caruso has failed to honor his obligations as a LIUNA member to refrain from interfering with the proper conduct of LIUNA business in violation of Article III, Section 3(d) of the Uniform Local Constitution.
274. Based upon the evidence, the IHO finds that Bruno Caruso has failed to honor his duty as an Executive Board member of a LIUNA Local to see to it that the affairs and business of the Local are being properly conducted in violation of Article IV, Section 4(H)(9) of the Uniform Local Constitution.
275. Based upon the evidence, the IHO finds that Bruno Caruso has failed to honor his duty as an Executive Board member of the Chicago District Council to see to it that the affairs and business of the Chicago District Council are being properly conducted in violation of Article VII, Section 7(i) of the Uniform District Council Constitution.
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276. Charge 10 states as follows:
In permitting the LCN to exercise control or influence over the Chicago
District Council and certain of its affiliated entities as alleged more
specifically in Charge 9, FRANK CARUSO failed to honor his obligations
as a LIUNA member to refrain from interfering with the proper conduct of
LIUNA business in violation of Article III, Section 3(d) of the Uniform
Local Constitution, his duty as an Executive Board member of a LIUNA
Local to see to it that the affairs and business of the Local are being
properly conducted in violation of Article IV, Section 4(H)(9) of the
Uniform Local Constitution.
277. The IHO incorporates his findings above in paragraphs 215, 230-234, 253-54.
278. Based upon the evidence, the IHO finds that Frank Caruso has failed to honor his obligations as a LIUNA member to refrain from interfering with the proper conduct of LIUNA business in violation of Article III, Section 3(d) of the Uniform Local Constitution.
279. Based upon the evidence, the IHO finds that Frank Caruso has failed to honor his duty as an Executive Board member of a LIUNA Local to see to it that the affairs and business of the Local are being properly conducted in violation of Article IV, Section 4(H)(9) of the Uniform Local Constitution.
280. Charge 15 states as follows:
In permitting the LCN to exercise control or influence over the Chicago District Council and certain of its affiliated entities as alleged more specifically in Charge 14, LEO CARUSO failed to honor his obligations as a LIUNA member to refrain from interfering with the proper conduct of LIUNA business in violation of Article III, Section 3(d) of the Uniform Local Constitution, his duty as an Executive Board member of a LIUNA Local to see to it that the affairs and business of the Local are being properly conducted in violation of Article IV, Section 4(H)(9) of the Uniform Local Constitution.
281. The IHO incorporates his findings above in paragraphs 218, 238-242, 257-58.
282. Based upon the evidence, the IHO finds that Leo Caruso has failed to honor his obligations as a LIUNA member to refrain from interfering with the proper conduct of LIUNA business in violation of Article III, Section 3(d) of the Uniform Local Constitution.
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283. Based upon the evidence, the IHO finds that Leo Caruso has failed to honor his duty as an Executive Board member of a LIUNA Local to see to it that the affairs and business of the Local are being properly conducted in violation of Article IV, Section 4(H)(9) of the Uniform Local Constitution.
284. James DiForti was named as a charged party in Charges 16 through 20. Due to DiForti's death, the GEB Attorney has requested that the charges against DiForti be dismissed. The IHO dismisses the charges against DiForti.
CONCLUSIONS
1. The GEB has presented the testimony of a group of individuals who worked closely with organized crime in Chicago. They were not merely persons on the periphery of the organized crime element, but were closely associated with the day-to-day workings of the powerful individuals who operated the organized crime organization and those who controlled the legal and political activities of the outfit. Each spoke of the involvement of the Respondents in this matter. The Respondents continually appeared in various circumstances, working or associating with known organized figures and their known associates.
2. The testimony and circumstances of each witness alone would not be sufficient to prove by a preponderance that the Respondents were associates of organized crime. When the record is considered in its entirety, there is a preponderance of the evidence that the Respondents were deeply involved with organized crime figures in a substantial manner.
3. The testimony related by O'Rourke of the cooperating individuals, although not in specific every day detail, identifies Bruno Caruso, Leo Caruso, and Frank Caruso as being associated with the 26th Street crew, and other highly placed outfit figures. This testimony is
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corroborated by the testimony of Cooley and Corbitt that Frank Caruso and Bruno Caruso were involved regularly with Roti and Marcy in the political arm of the Chicago Outfit.
4. There is a surveillance of Frank Caruso and Bruno Caruso meeting with the head of the Chicago Outfit and two others for three hours. This was not a chance meeting; one does not have dinner with the head of the Chicago Outfit and his lieutenants as a casual chance occurrence. No one sits at that table without the specific approval of the head man.
5. Bruno Caruso was seen on two other occasions meeting with organized crime members. While these meetings were brief, the nature of the surveillance meetings indicates the individuals were very familiar with Bruno Caruso.
6. The testimony of Cooley, Corbitt, and the cooperating individuals also indicates that Frank Caruso, Bruno Caruso, and Leo Caruso were involved in the illegal gambling activities of organized crime in Chicago.
7. The totality of the circumstances of this record present a closely intertwined body of corroborative evidence that proves by a preponderance of the evidence that Frank Caruso, Leo Caruso, and Bruno Caruso were trusted associates of the Chicago Outfit.
8. There is a preponderance of the evidence that Frank Caruso is a close associate of organized crime. His association is of a long duration, and it is that association that accounts for his position of leadership in the Laborers' Union organization.
9. There is a preponderance of evidence that Bruno Caruso is an associate of organized crime. There is evidence that his association has led him through the ranks of the Laborers' Union in increasing positions of power.
10. There is a preponderance of evidence that Leo Caruso is an associate of organized crime. This association has promoted his rise through the ranks of the Laborers' Union in
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Chicago, and protected him when he was charged with being a no-show employee with the city of Chicago.
11. There is a preponderance of the evidence that the Chicago Outfit dictated the selection and promotion of officers and trustees of major LIUNA locals and the Chicago District Council. Frank Caruso, Bruno Caruso, and Leo Caruso participated with organized crime leaders to manipulate the election machinery of the Chicago District Council and their local unions to completely rig the succession and transfer of officers and trustees to the dictates of organized crime. Although each appointment was done pursuant to the appropriate constitutions, one has only to chart the movement of the various organized crime figures described above as they moved about through officer and trusteeship positions in a manner of the game of musical chairs to understand how the organization was manipulated by the organized crime element. The Respondents in this matter played a key part in that charade, participating in and voting other persons into office, all without any semblance of the elective process. The IHO concludes that where there is a lack of contested elections for a substantial number of years, and there is a pattern of continuous resignation of officers during the terms of office which are filled by the Executive Board of the organizations, a presumption arises that there is a condition of undemocratic practices, and the process is being completely manipulated. The presumption is further strengthened where, as here, there is the presence of organized crime association. There is a preponderance of the evidence that the Respondents have willfully participated in this process to permit the operation of organized crime.
12. There is a preponderance of the evidence that Frank Caruso, Bruno Caruso, and Leo Caruso failed to investigate or bring to the attention of others, the numerous incidents of organized crime association that was rampant in the Chicago District Council and its locals
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during the past thirty (30) years. The IHO is aware that an individual's options for officially dealing with organized crime were limited before the passage of the EDP and EPC in 1995. Notwithstanding the lack of official procedure to investigate organized crime, the Respondents were not prevented from contesting the promotion and continued employment of organized crime figures who were convicted of crimes, or voting against the active transfer and promotion of organized crime figures throughout the various posts in the union. The evidence is clear that the Respondents not only did not object to the promotion and transfer of organized crime figures, but actively assisted in the process and personally benefited therefrom.
13. The same evidence indicates that the Respondents failed to act in the best interests of the union.
14. The Respondents' position that the locals are functioning well financially and that the members are satisfied with their contracts is not a defense to any of the charges.
DECISION
The GEB Attorney has proven Charges 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15 by a preponderance of the evidence.
Charges 16, 17, 18, 19, and 20 have been dismissed.
PENALTY
Bruno Caruso's membership in LIUNA is permanently revoked. Bruno Caruso is permanently barred from holding an office in or being employed by Local 1001 and/or the Chicago District Council, and from being an officer or being employed by any LIUNA affiliated entity or fund.
Leo Caruso's membership in LIUNA is permanently revoked. Leo Caruso is permanently barred from holding an office in or being employed by Local 1006 and/or the
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Chicago District Council, and from being an officer or being employed by any LIUNA affiliated entity or fund.
Frank Caruso's membership in LIUNA is permanently revoked. Frank Caruso is permanently barred from holding an office in or being employed by Local 1006 and/or the Chicago District Council, and from being an officer or being employed by any LIUNA affiliated entity or fund.
Bruno Caruso, Leo Caruso, and Frank Caruso individually have a right to appeal this Order to the LIUNA Appellate Officer by filing a Notice of Appeal with the Appellate Officer within 10 days of the date of this Order.
The Appellate Officer is:
W. Neil Eggleston
Howery & Simon
1299 Pennsylvania Avenue, N.W.
Washington, D.C. 20004
(202) 783-0800
(202) 383-6610 (fax).
This Order does not take effect until 10 days after the date of this Order, and if appealed, upon the decision of the Appellate Officer.
PETER F. VAIRA
INDEPENDENT HEARING OFFICER
Date: January 10, 2001
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Dwight Bostwick, Esquire (via Federal Express)
Patrick Slevin, Esquire (via Federal Express)
Robert D. Luskin, Esquire (via Federal Express)
Allan A. Ackerman, Esquire (via Federal Express)
Stanley E. Kravit (via Federal Express)
Sally Saltzberg, Esquire (via Federal Express)
Tim Joyce, Esquire, ( via regular mail)
Chicago District Council (via Federal Express)
Local Union 1001 (via Federal Express)
Local Union 1006 (via Federal Express)
Terrence M. Healy (via Federal Express)
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