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This is a preliminary report; other areas will be covered at a later date.
After an initial period of research we decided to concentrate on the international unions which are most infiltrated by organized crime, and which pose the greatest threat to the economy. We have sought to identify the major officers in these international unions and in most of the member local unions who are syndicate controlled, and the organized crime figures to whom they answer.
This report is not intended to be exhaustive. There are hundreds of officers in these unions who are syndicate controlled in some manner. We have selected only the most significant and those which could be documented with more than a mere allegation.
There are many other unions which. Most Page 4 of these unions are smaller in scope than the four mentioned above, and should be the subject of a supplemental report. The information in this report is based upon reports made by the Federal Bureau or Investigation, Department of Labor and the Strike Forces. In each case attorneys and agents were interviewed to update the reports. Several journalists from national news organizations were interviewed, as well as investigative agencies outside the federal government.
Included in this report is a study of two cities, Chicago and Cleveland, as examples of how pervasive and disciplined the syndicate control can be, and the extent of the political and economic power which necessarily results. Organized crime has a substantial foothold into the labor unions in the New York City area. Experienced investigators from the Labor Department list over unions with members of organized crime or their associates in positions of power. The time schedule for the presentation of this report did not permit a thorough examination of the allegations and evidence concerning all these individual unions.
Labor Racketeering in the New York area has been designated as the subject of a later report. The New York unions are set out in the Appendix to this report. No attempt was made to analyze the organized crime influence in the Teamster Central States Pension Fund.
The fund has been the subject of several investigations in the past two years by the Department of Labor and the Internal Revenue Service. There is much information which was uncovered by those two agencies however, a thorough summary of that voluminous information would have required much more time and man power than could be allotted for this report.
The recommendations are preliminary, and are solely those of the writers of this report. In the teamsters, the corruption and organized grime influence are a result from the massive infiltration of the local unions.
The HRE on the other hand has been infiltrated from the top. This occurred as a result of the power wielded in the Chicago area locals and joint executive board by Joey Aiuppa, the underboss of the Chicago Syndicate. This is not to say that none of the locals are hoodlum controlled or that Hanley is the first corrupt president of the Union. Nevertheless, Ed Hanley represents the classic example of an organized crime take-over of a major labor union. Since his election, Hanley has moved to solidify his power, both in terms of the local Union officials and elements of organized crime.
The following is a summary of the International officers, their organized crime affiliation, and their method of operation. Hanley was hand-picked for his current position by Joey Aiuppa. Hanley started his union career in as Business Agent for Bartenders Local in Cicero, Illinois, and held a similar post in Local of the Chicago Bartenders union, both of which are tightly controlled by Aiuppa. In Hanley became president of the Culinary Workers Chicago Joint Executive Board, which is also under the control of organized crime.
ORGANIZED CRIME AND THE LABOR UNIONS
He became International President in As a bartender in St. Louis, Gibson was a protege of Johnny Vitalk of the St. Louis organized crime family. In December, , he was convicted of Title 29, United States Code, Section b 1 d for accepting gratuities from hotel owners.
Schiffman is an associate of several southern organized crime figures. He is a close associate of Tony Romano, a lieutenant in the Buffalo organized crime family who has recently moved to the San Francisco Bay area. In spite of this, the membership rolls of the Union have declined. Many of the persons placed on the payrolls as organizers are organized crime figures or friends of Hanley, mostly from Chicago.
A few of the more noteworthy examples are as follows: The organized crime affiliation and involvement of Presser through, and independent of the Teamsters Union are well documented. He asserted his Fifth Amendment privilege 73 times in testimony before the McClellan Committee, mostly in response to questions concerning his associations with Joey Aiuppa and other organized crime figures.
He is also an associate of Joey Aiuppa. Battista was placed on the payroll shortly after Hanley assumed office. The following is a summary of "he criminal influence in key HRE locals across the country. Medeiros has often been suspected of committing arson against hotels while attempting to organize them.
Medeiros is also under investigation for inflicting beatings upon union members during an intra-union power- struggle. This local is controlled by Hanley supporter Herbert "Pinky" Shiffman. Shiffman who is also the President of a Miami local and an International Vice President, was recently convicted of accepting a discount for a room at an Atlanta hotel where his members are employed.
This local was formed as a result of a merger of 4 locals by the International. During the two years it was in receivership, the local was run by Michael Salerno, hand-picked by Hanley. Salerno is under investigation for allegedly embezzling organizing funds disbursed to him by the International. Local HRE - Chicago. The President is Pat Battista, also an International organizer. Hanley was a business agent- for the local in Local 10 - Cleveland.
Jack Lubin, Vice President, is convicted arsonist. He is a principal subject in a Strike Force investigation involving a massive fraud on the Northern Ohio Bank. Local 66 - Buffalo. There is a suspected sweetheart contract between this local and the Costintino Hotel chain, which is owed LCN interests. The result of the sweetheart contract is that once employees are hired by the hotel chain, they are transferred to other HRE locals where wages and benefits are lower.
The situation today has changed little. Nearly all the international officers of the ILA are under the control of organized crime. The union is the subject of one of the most concentrated Department of Justice investigative efforts in the country. Numerous ILA officers are under investigation for shaking down steamship and stevedoring companies.
The corruption is so rampant that investigators assigned to the case feel that every international officer must be placed under scrutiny. Doug Rago, an international vice president, is a member of the organized crime syndicate.
He is generally conspicuous by his absence from the general offices.
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The Eastern seaboard is divided up under their jurisdiction. He began his career in Local , under the guidance of syndicate figure Anthony Anastasia, his relative by marriage.
He is a front for the New York Gambino family. Scotto was once hailed as a new breed of longshoreman union leader. He is currently a labor advisor to New York; Governor Carey. The FBI reported in December, that prior to attending one of the international conferences Carlo Gambino, New York mafia chieftan, summoned Scotto and gave him an envelope to deliver to an individual in Palermo, Sicily during his visit.
George Barone is president of Local in Miami and an international vice president. Barone is generally supervised by Fred Field, an international organizer from New York. George Boyle is vice president of the Local. The syndicate controlled ILA leaders extract money for labor peace. They also direct steamship companies to the stevedoring, container repair, and service companies which are to be employed. These favored companies either pay the union leaders for their efforts, or are owned or controlled by the syndicate.
Those companies which do not pay simply do not get business. Steamship companies know that using an unauthorized company will result in slowdowns and breakage Any amount of delay in unloading or loading a ship is tremendously costly.
Every hour is worth thousands of dollars. In addiction companies are forced to place hoodlums or their relatives on their payroll. For example, a son of page 16 a New Jersey syndicate boss works for a steamship company in New Jersey. His job is to award contracts.
He owes his job to mafia influence. An associate of the Genovese family was placed on the payroll of a marine repair company in Staten Island by Anthony Scotto. He has absolutely no experience to justify his position. Sweetheart contracts with the ILA take many forms. A common one is to allow a stevedoring company to have only a few union workers. The profit benefit to the stevedoring company from such an arrangement is tremendous, permitting it to out bid other competitors.
The price for such a contract is a substantial payoff to the union leader which is passed on to the organized crime syndicate. These abuses are common throughout the jurisdiction of the ILA. The result is that the shipping industry is controlled completely by the LCN.
The syndicate dictates who does business on the east coast and in what manner. The flagrant operation of the syndicate and the ILA is a national digrace. Much has been written about this infiltration.