3 Officials Charged With Corruption in Al Capone's Old Fief
By John W. Fountain © 6/15/01 New York Times

CICERO, Ill., June 15 — The top official of this Chicago suburb where Al Capone once reigned was arrested by federal agents today along with a former police chief and a former town treasurer, all accused of making Cicero "a personal piggy bank" by siphoning off more than $10 million from the town's insurance program.

The authorities described an elaborate scheme, involving in part a man with ties to the Chicago Mafia, that prosecutors said was set up by Frank Maltese, a convicted mob bookmaker who died nine years ago and was the husband of Betty Loren- Maltese, who as town president was the leading official seized today.

The United States attorney's office said Ms. Loren-Maltese and the two other members of the town's insurance committee had regularly sent payments from the health insurance fund to its unlicensed insurance administrator, a firm called Specialty Risk Consultants, or SRC.

Much of that money, the authorities said, was then eventually kicked back to the officials, who used it to buy a hotel complete with golf course in northern Wisconsin, an Indiana horse farm, a vacation home and cars. Some of the proceeds remain unaccounted for, the officials said.

Betty Loren-Maltese, the town president of Cicero, Ill., with her lawyer,
Terry Gillespie, on Friday in Chicago. Source: The Associated Press 6/15/01

The authorities expressed amazement at the extent of the corruption that they said had infested Cicero in this latest episode of a town afflicted for decades by mob influence.

"We've had cases where organized crime has paid money to public officials to allow organized crime activities to occur," said United States Attorney Scott R. Lassar, speaking at a morning news conference to announce the indictment of Ms. Loren-Maltese and nine others. "But this is the first time where there has essentially been a looting of a town and organized crime influence has been alleged to be involved in that looting of the town."

Mr. Lassar said municipal officials had "used their mob connections to turn the town of Cicero into a personal piggy bank."

With the arrests, said Kathleen McChesney, the head of the Chicago office of the Federal Bureau of Investigation, "the Cicero candy store is closed."

The indictment charges the 10 accused with racketeering conspiracy, fraud, money laundering and tax offenses. Ms. Loren-Maltese herself is charged with racketeering, wire fraud, mail fraud and filing a false tax return. If convicted, she could face up to 20 years in prison on each of the most serious charges, involving racketeering and fraud.

The indictment says that from April 1992 to March 1997, Cicero paid $33 million to SRC, the insurance administration firm, based in northwest suburban Schaumburg. Over the course of that time, the indictment says, Cicero's insurance committee — Ms. Loren-Maltese, Police Chief Emil Schullo and Treasurer Joseph DeChicio — authorized payment of $28 million to the firm without the approval of the town board as required by ordinance. Of that $28 million, more than $10 million is said to have been stolen.

Besides the three officials who made up the insurance committee, those charged today are Michael Spano Sr., described by the authorities as having mob ties and a hidden controlling interest in SRC; his son, Michael Spano Jr., controller of the firm; John LaGiglio, also said to have had an interest in the firm; his wife, Bonnie LaGiglio, a general partner and manager of the Wisconsin hotel that the accused are said to have bought;
Gregory Ross, an accountant for Mr. LaGiglio, the elder Mr. Spano and the firm; Charles Schneider, a lawyer for Mr. LaGiglio and the elder Mr. Spano, as well as tax preparer for Ms. Loren-Maltese; and Frank Taylor, who was hired to manage the firm but who the authorities said was now cooperating with them.

Eight of the 10 defendants were arrested today. Mr. Schneider was out of town but is expected to surrender on Monday, and Mr. Taylor is in prison for an unrelated federal tax fraud conviction in Minnesota.

All eight of those arrested were later released, either on personal recognizance or on secured bond. Ms. Loren-Maltese, arrested at her home in Indiana, secured a $100,000 bond with her house here in Cicero.

Late this afternoon Ms. Loren-Maltese, a flashy 51-year-old Republican who has been town president for nearly a decade, appeared for a hearing in federal court, tugging at her black blouse and shifting her weight from foot to foot but saying nothing. In the lobby, her lawyer, Terry Gillespie, spoke briefly.

"She's saddened," Mr. Gillespie said of his client, "and quite frankly disgusted, that she was arrested this morning. It wasn't necessary. A phone call would have got us down here.

"She is also saddened by the indictment. She has done everything in her power, since the Specialty Risk situation arose, to investigate it, including bringing lawsuits, including hiring a special prosecutor to investigate it. To suggest she's involved in a conspiracy she's worked so diligently over the last several years to uncover leaves her sad and ashamed. The truth will come out in court."

Law enforcement officials said they hoped that today marked the beginning of the end to years of corruption in a town stained by mob influence for as long as anyone here can remember.

Only last month, a federal jury awarded $1.7 million to David Niebur, who had been fired as police chief after being on the job just four months, and Philip Bue, fired as deputy chief. The two men had been helping the F.B.I. investigate corruption here, and the jury found that they had been unfairly dismissed and that Ms. Loren-Maltese and Merrick Scott Rayle, former town counsel, had hurt their further job prospects by focusing attention on the firings.

And in the last three years alone, two former Cicero detectives have been convicted of taking bribes to fix investigations, a former town clerk has been convicted of stealing parking meter payments and a former town
collector has admitted asking for a bribe.

The arrest of Ms. Loren-Maltese followed by two months her landslide election to a third four-year term after a heated campaign against a Democratic challenger, Joseph Mario Moreno, and a vote watched by federal

Reached by telephone this afternoon, Mr. Moreno said he was "shocked at the magnitude of the looting that took place in the town of Cicero."

Of Ms. Loren-Maltese's indictment, he said, "I don't think there's any stronger reason for any elected official to immediately resign from office."



With Richie Daley's circle along with Hillary Rodham Clinton's brother, Rostenkowski owns Garfield Ridge Trust & Savings Bank in Chicago, reportedly tied to money laundering of dope loot from the CIA-linked airport in Arkansas at Mena.

The media has identified a fellow named John Christopher as the FBI "mole" who went around setting up city officials with bribes to be allowed to dump construction junk illegally. Has Christopher been also linked to Glenrock?

Christopher reportedly arranged to launder millions of dollars of mobster money through First National Bank of Cicero, now the flagship of Pinnacle Banc Group. The Cicero bank has long been dominated by Bishop Paul Marcinkus, originally from the mob-enclave of Cicero, and until 1991, head of the mob-CIA-linked Vatican Bank. One of his reported pals is now Illinois State Treasurer. (She praised Marcinkus on one of our cable TV shows.) Pinnacle is the alter ego and successor to the infamous Bank of Credit and Commerce International [BCCI] which handled covert funds for CIA and bribed public officials worldwide including in the U.S. (So you really thought BCCI had gone under in 1991 as stated by the newsfakers.)

Reportedly tied to the illegal and corrupt dumping in Chicago's inner city black communities has been Gail Ginsberg who has been general counsel of the federal Environmental Protection Agency. Her husband is Chicago Federal Bankruptcy Judge Robert E. Ginsberg, fingered by us as a crooked judge. Together, they are a highly corrupt team. The judge for many years was closely linked
to CIA director Bill Casey.


Colby, who had been Director of Central Intelligence from 1973-1976, continued on after 1980 as the overseer of the new name, Household International. Subsidiaries, actually and technically savings and loans, were called Household Bank.

In the 1980s, some thirty or more savings and loan associations were secretly taken over by CIA, for use to funnel covert funds for bloody and dirty tricks. After the operation was concluded, the money was sucked out, and the particular S&L "collapsed". A highly skilled Texas journalist detailed the doings of some 26 of
these CIA-S&L operations which went "bust" and the clean-up arranged supposedly by the federal deposit insurance authorities at the great damage and detriment of the taxpayers. One of the S&Ls was run by one of George Bush's sons. See: Pete Brewton's heavily documented work, "The Mafia, the CIA, and George Bush".

Three or more CIA-S&Ls, not mentioned in the book, were in Illinois, in the Chicago area.

CLYDE SAVINGS & LOAN. A director of this reputed CIA operation was Congressman Henry Hyde who wore two hats. First, he was head of the CIA's "black budget" with more actual authority than the Director of Central Intelligence. Second, he has been a Congressman, on the House Intelligence Committee. More recently,
Hyde became chairman of the House Judiciary Committee, with authority to decide who, if anyone, is subject to impeachment for being a corrupt federal judge.

Does it not violate the U.S. Constitution's mandate of Separation of Powers, for Hyde to be both a Congressman at the same time he is head of CIA's "black budget" for dirty tricks?

The Federal Savings and Loan bail-out agency, Resolution Trust Corporation [RTC], brought an action in Chicago Federal District Court, accusing Hyde of various misconduct in the downfall of Clyde Savings. Case No. 93 C 2477. The case was being heard by Chicago Federal District Judge Brian Barnett Duff, closely aligned with the Federal Reserve and a crony of George Bush. Judge Duff is no stranger to covering up massive corruption. In 1990-91, he had the case involving the Federal Reserve Board, the House Banking Committee, and Italy's Banca Nazionale Delavoro, Italy's largest bank owned in part by the Vatican. At issue were records of BNL's Chicago branch, relating to the private joint business ventures of Iraq's strongman,
originally installed by CIA, Saddam Hussein, and Hussein's secret business partner. Judge Duff ordered the records be kept secret. This writer and his associates were the only journalists attending the federal appeals hearing of the BNL case in May, 1991. I interviewed two of the participants who told me that the secret private business partner of Saddam Hussein has been George Bush, at the time U.S. President. Involved were BNL records relating to oil kick-backs from the whole Persian Gulf area for the decade 1980, to 1990, 25 billion dollars per year kick-backs, shared by Saddam Hussein with George Bush and Bush's circle of cronies; 25 percent of one trillion dollars of oil shipped to the West in that decade, 25 billion dollars per year, 250 Billion
Dollars total. So Judge Duff knew how to torpedo controversies and cover them up. At a crucial point in the case against Henry Hyde, a CIA attorney appeared in chambers with Judge Duff, and persuaded Duff -- as if persuading were needed -- that all key records are to be kept secret. In a later trick, Judge Duff arranged to
delay a trial on key issues for several years by certifying a piece-meal appeal, usually not permitted -- all to protect CIA and Hyde.

LIBERTYVILLE SAVINGS & LOAN. A director of this CIA S&L was Charles Hunter who was the chief financial officer of the drugstore chain, Walgreen's. Hunter actually ran Walgreen's since the CEO, "Cork" Walgreen, spent two weeks of the month vacationing in Florida. RTC sued Charles Hunter in Chicago's Federal District Court, accusing Hunter and others of causing the downfall of Libertyville S&L, Case No. 91 C 1741. Accused of causing damages of more than 42 million dollars, the details could have great impact on Hunter's role with Walgreen's, showing violation of his fiduciary duties as chief financial officer of Walgreen's. Hearing the case was Chicago Federal District Judge Harry D. Leinenweber -- wife, Lynn Martin, was Secretary of Labor in the
Bush Administration. (We confronted her on a radio talk show, asking her to explain why her husband the Judge never disqualified himself when several cases were on his docket which she as Labor Secretary was shown as a party to the case. She replied, she never asked her husband about his Court work.)

To cover up the CIA S&L case, Judge Leinenweber reportedly received a gift, or bribe, of some 17 million dollars. The RTC officials bringing the case looked the other way, as they did in corrupt doings related to Bill and Hillary Clinton.

OLYMPIA SAVINGS AND LOAN ASSOCIATION, reportedly operated by CIA in a suburb of Chicago. Overseer in this operation reportedly has been Dr. Earl Brian, a financial industry and mass media heavyweight. In various books, he is accused of being a key player in the "October Surprise", guns and money funneled to Iran to have them delay release of the U.S. hostages so as to wreck Jimmy Carter's bid for re-election as president and help install the Reagan/Bush ticket. The hostages were released in January, 1981, just as Reagan was being sworn in as the new President. Dr. Earl Brian reportedly played a key role in the INSLAW Affair. He also owned Channel 66 TV, just south of Chicago, in an area that is the reputed U.S. entry point for the smuggling in to this country of "China White", high purity heroin. He ran a financial espionage operation called Financial News Network. Brian has been prosecuted in Los Angeles Federal Court, for a
scam using FNN; the details about espionage and CIA have been omitted from the federal criminal charges, however, by the federal prosecutor.

AMERICAN HERITAGE SAVINGS & LOAN ASSOCIATION. Reportedly used in part for washing CIA covert funds, the collapsed shell of what was left was merged and taken over by Household Bank. The Federal Home Loan Bank parked 58.4 million dollars with Household to satisfy claims pending since 1983 by Joseph Andreuccetti, a west suburban caulking contractor. Andreuccetti was the victim of a swindle that included the following:

1. Multi-million dollar condo complex in Addison, Illinois, a west suburb of Chicago, a very short distance from the home of Henry Hyde. Called Kingspoint Condominiums, in the deal the nephew/godson of Paul Marcinkus, namely Christian Henning, Jr., falsely claimed to be Andreuccetti's partner. Marcinkus, until
1991, was the head of the Vatican Bank. Authorities of the Republic of Italy contend Marcinkus was part of a scheme to launder dope and gun smuggling and political assassination funds, on behalf of the Sicilian mafia and the American CIA, through the Vatican Bank. Bishop Marcinkus has so far escaped extradition
from Sun City, Arizona, where he resides now, back to Italy, on the contention that the Vatican is a separate sovereignty from Italy.

2. Marcinkus, originally from the long-known mafia-enclave of Cicero, a Chicago suburb, has been the dominant force controlling First National Bank of Cicero, a reputed Mafia-CIA money machine. To try to cover up a vast scam by Marcinkus, Henning, and others, the Cicero bank used false loan details to fraudulently push Andreuccetti into *involuntary* bankruptcy, still pending since 1984, Case numbers 84 B 10338, 10339, and
some ten related cases showing the roles of Household, the First National Bank of Cicero, First Midwest Bank, and others in skimming off funds used for bribing judges and other political officials.

3. Officials of the defunct American Heritage S&L, to silence them, were prosecuted in the case of U.S. vs. John Best et al. The federal prosecutor, William R. Hogan, Jr., is a story all by himself. Reportedly trained and groomed by Special Forces and CIA, Hogan in a way is far too clever to have been just an Assistant U.S. Attorney in Chicago. Hogan's extended family has included those close to the Catholic Archbishop of Chicago who also is Treasurer for the whole Catholic Church for the Western Hemisphere, from Canada to Argentina.
Hogan was the federal prosecutor in a large group of cases of the narco-terrorist street gang called the El Rukns. The gang previously was called the Blackstone Rangers and was used as computer models in how they cowed and terrorized Chicago southside neighborhoods, to study how to cow and terrorize hamlets in Viet Nam. Until Hogan showed up, the El Rukns were untouchable. Their bail bond money was often supplied by the traditional mafia. The gang early on was financed by CIA-linked Foundations, including the Charles Merrill Trust of Cambridge, Mass. (Linked to Merrill-Lynch stock brokerage.) Hogan is accused by his Justice Department bosses of having been overzealous in the El Rukn prosecutions. Most of the defendants who were also witnesses against other gang members were already in jail awaiting trials. Hogan is accused of
arranging sex and dope for some of the El Rukns, either inside the jail, or transporting them to a federal office building to have sex and dope there.

Hogan's apparent defense is that if this occurred at all, it was arranged or supervised by his supervisors. The more serious matters, according to Hogan's circle, is that at least six federal judges in Chicago take bribes, as known to corrupt officials in the IRS and the Justice Department; and that nothing is being done by federal authorities. Among those reportedly taking bribes is Chief Bankruptcy Judge John D. Schwartz presiding in the Joseph Andreuccetti cases and related matters. Schwartz previously was a director and stockholder of First National Bank of Cicero, instrumentally interwoven in the complex of details in the Andreuccetti Affair. According to an undisputed admission and confession in a related court case, Schwartz has not filed a proper federal income tax return and has an estimated off-shore net worth of 141 million dollars -- has
not filed a proper return in "30 years".

The Kingspoint valuable property was purchased by Wallace Lieberman, on other occasions a federal bankruptcy auctioneer; Lieberman's partner in the deal was Robert Belavia, a reputed mafia kingpin. Shortly after Marcinkus returned to the U.S. and a few days after a complaint about Lieberman was made to the U.S.
Attorney in Chicago about Lieberman, he was murdered, apparently by an FBI agent (the same one, according to undisputed federal court records) who caused some 40 federal grand jury witnesses to be murdered or to disappear in the proceedings in 1991-92, in the INSLAW Affair (high Reagan and Bush administration officials accused of stealing high technology and selling it to, among
others, sworn enemies of the U.S.)
That same FBI agent, Mike "Chuckie" Peters, flies a helicopter and plays a key role in the 1996 events in Montana.

4. In a federal court case against top IRS and Justice Department officials, involving corruption, an undisputed confession and admission of an official in the Criminal Investigation Division of IRS shows:

-- the higher ups at IRS stole the Kingspoint properties
from Lieberman and arranged to hustle Belavia quickly
into prison; that the IRS officials stole the properties
for their own personal benefit and caused certain related
land title records to disappear as part of a cover up.
As shown in Case No. 92 C 7048, in Chicago Federal
District Court.

-- that the IRS was instrumental in covering up the
disappearance of 50 million dollars, parked by federal
authorities with Household Bank -- on which Joseph
Andreuccetti has a long-pending claim -- and that the
money was secretly transferred to Little Rock in an
attempt to cover up some 47 million dollars reportedly
embezzled by Bill and Hillary Clinton from Madison
Guaranty S&L in Little Rock.

-- that the Bankruptcy Trustee in the Andreuccetti cases,
Jay A. Steinberg, has been allowed and permitted to file
false and fraudulent state and federal revenue forms and
tax returns, supposedly in the name of Joseph
Andreuccetti, without the knowledge or consent of

5. Steinberg is a partner in the huge law firm of Hopkins & Sutter, major counsel for RTC. The firm arranged for two faraway lawyers -- Hillary Rodham Clinton and Vincent W. Foster, Jr. -- to work on the left-over problem of a Chicago-area savings and loan whose collapse was caused by fraudulent bonds by Clinton's dope and bond broker crony, Dan Lasater. Hillary and Vince reportedly whitewashed hundreds of millions that could have been recovered by RTC. Hopkins and Sutter also arranged to have George Bush's son escape prison in the Silverado S&L scandal in Denver.


By 1995-96, matters intensified in which William Colby was implicated, in one way or another. The First National Bank of Cicero, dominated by mafia-CIA darling Bishop Paul Marcinkus, recent head of the Vatican Bank, had been taken over by Pinnacle Banc Group, the successor and alter ego of the infamous Bank of
Credit and Commerce International. It was becoming more and more known, through items posted on Internet, and stories elsewhere, that the espionage operation, BCCI, dominated by CIA, had not, in fact, collapsed in July 1991; that Pinnacle was the new name and face. Four major, international news operations had the BCCI
bribery list, how they bribed 25 percent of both houses of the U.S. Congress -- 28 U.S. Senators and 108 members of the House. Although the establishment news groups had the list and corroborated its validity, they decided not to go with it -- it would destabilize the U.S. central government. Strange, but the list, for 30 days, was a public record at the Bank of England! This writer received from a brave journalist the list and corroboration, and wrote a story about it in a right-wing paper in 1991. The publication received the list of names but deleted them from the published story. By 1995, the names were becoming more and more known and the result: an unusually large number of representatives and senators suddenly decided to resign, retire,
and not run for re-election in 1996. Some of them had already arranged their re-election campaign literature.

It was becoming more and more evident that former CIA Director William Colby was directly implicated in the dirty business -- now implicating the Clintons -- of Household International and Household Bank. Colby was reportedly directly involved in the BCCI/Pinnacle Banc Group espionage operations. The Roger D'Onofrio Affair in Italy [see CN 6.65] was not going away; he was a top American CIA official, residing in Italy, put under
house arrest for being involved in arranging for the Vatican Bank, in conjunction with the Sicilian mafia, to launder dope and gun loot, smuggle gold, and sell nuclear bomb triggers to sworn enemies of the U.S.

A member of the London Gold Pool, living near the First National Bank of Cicero, John Tarullo, was murdered in August 1995. His connections extended reportedly to the CIA, the Archbishop of Milan, the FBI Counter-Intelligence section, as well as the traditional Sicilian mafia. Tarullo's connections reportedly
extended to Judy Baar Topinka, a close crony of the Bank [of Cicero] and Marcinkus; she was elected Illinois State Treasurer in 1994. Did the Vatican Bank now have their agent in charge of all the state public money of Illinois? (She praised that Bank and Marcinkus on this writer's public access cable TV show just prior to her election.)

Also becoming clear was William Colby's role in trying to get an armlock on political dissent in the U.S. Notice the role of Colby's close crony John DeCamp, an attorney from Lincoln, Nebraska, in trying to throttle various financial possible scandals, such as Pinnacle Banc Group/BCCI, Household International, Household Bank, the Clintons and the strange death of National Security Agency operative Vincent W. Foster, Jr. at the time Foster was also a top Clinton White House aide. -- cronies of the so-called Independent Whitewater Counsel
Kenneth Starr were reportedly trying to push John DeCamp to be in charge of Joseph Andreuccetti and his explosive group of court cases. Luckily, Joe [Andreuccetti] refused.

-- John DeCamp reportedly played a role in attempting to control or manipulate Oklahoma Federal Grand juror Hoppy Heidelberg. Hoppy was attempting to persuade fellow grand jurors that the FBI and other federal authorities have to be compelled to bring before the grand jurors certain data about John Doe #2, or even #3, in respect to the Oklahoma City bombing case. A reputed government counter-intelligence agent, Lawrence W. Myers, became the chief investigative reporter -- if not actually the controlling force -- of a new, supposedly dissident publication, called Media Bypass magazine, that went from about 5,000 monthly circulation to
near 50,000 in a very short time. The militia movement, the Freemen, the tax protester movement, and others like them, somehow got the impression that Media Bypass magazine spoke for them. Who checked Myers' background? He was reportedly highly skilled in counter-terrorism, an expert on bomb making, and had worked for the adjunct to CIA, namely, Wackenhut, on terrorist problems. Myers wrote four published books on bomb making including remote explosives detonators. The books were published by a reputed CIA proprietary, Palladin Press, reportedly supervised by William Colby and his cronies.

John Doe #3 reportedly was an Iraqi intelligence official brought into the U.S. and kept totally surveilled and supervised by the CIA. Did the Iraqi "spook" help the American CIA create a so-called terrorism event in Oklahoma City to promote possible martial law to strangle growing dissent in the U.S.? Or was it a bungled event, done with U.S. central government complicity?

By April 1996 it was becoming clear to some that William Colby had to disappear or be thrown away. Household International's stock took a tumble; they were forced to give away 54 of their Household Bank units to the Harris Bank, a unit of the Canadian bank octopus, Bank of Montreal, owned by the infamous Bronfman
family, big in dope, gun smuggling, *and* booze. Not everyone bought the mass media story that the Bronfmans actually paid over 200 million dollars for the Household Bank units.

About 10 days after the Household Bank-Harris Bank arrangement, William Colby disappeared. Colby's close crony, John DeCamp, was supposedly advisor to Hoppy at the same time DeCamp was attorney for Media Bypass and closely linked to Myers, the reputed "spook". Some clever sorts were putting two and two together. Was the whole magazine a trick to catalogue and finger dissidents? Did Myers and DeCamp almost cause Hoppy to be arrested?

-- a few days prior to his disappearance, Colby was in Texas at a university seminar on the Viet Nam War. Some thought maybe Colby was knowledgeable about POWs who the U.S. government cannot admit still exist in Southeast Asia: are the POWs made into "mules" in the dope trade for the reported benefit of Colin Powell and his pals George Bush and Richard Armitage? Did Colby whisper explosive items into some ears
in or near the seminar?

Former CIA Director William Colby was too involved. So, the mysterious "they" used the boat trick, to make him disappear or for murder.

At the time of his disappearance, Colby was under Congressional subpoena to testify. Some believe his testimony could have put Bill and Hillary Clinton in prison.
Cicero is a self-insured town. The town’s 650 employees bring their medical
bills to a town bureaucrat who reviews the bills and then authorizes
payments. The payments were not made directly to the doctors or to the
hospitals, however, but to an insurance management firm.

In 1992, that insurance management firm was Travelers.

Travelers Ins.--1992.,3353,60143_6014320,00.html
Martin Allen Roenigk ...After a stint in Vietnam courtesy of the U.S. Army,
he joined the Travelers Corporation in 1970. The first half of his 23-year
career at Travelers was involved with private placement, researching
industrial credits throughout the U.S., and running the Public Bond and
Preferred Stock departments for Travelers. The second half of his career was
as Vice President – Corporate Strategy & Research where he was responsible
for planning, operations research, acquisitions and divestitures.
Responsibilities included Director – Dillon Read & Co. Marty’s career ended
with his participation in the late 1993 negotiation and sale of Travelers to
what was then Primerica and is now Citigroup.

Illinois Police & Sheriff's News

Combined Counties Police Assn.
5 Revere Drive, Suite 200-2024, Northbrook, Il 60062

New Mob Hierarchy
Takes Over Cicero


IPSN Newspaper, March March 26, 1997
Ernest Rocco Infelise was certain of two things when he entered the federal
penitentiary: he would get a hot meal every day; and money would continue to
flow into the hands of his Cicero cronies under the protection of the Town’s
powerful Republican leaders.

When the FBI brought Infelise and 10 of his associates down, he was in
charge of one of the most ruthless of Chicago’s Organized Crime Street
Crews, protecting the mob’s Chicago street gambling interests and operating
out of Flash Interstate Delivery Systems (Flash Trucking) at 1505 S. Laramie

But his real contribution to Chicago’s mob family was not just his
heavy-handed oversight of gambling collections and a stable of bookies that
stretched from Indiana through Northern Illinois, but his control of the
notoriously mafia-friendly suburb, Cicero.

It may have belonged to Al Capone back in the late twenties, but in 1990,
Cicero was owned by Infelise and everybody knew it.

The Demise of Infelise

In the early 90s, Infelise, a protégé of the late Joseph Ferriola and the
heir apparent to succeed Joey Auippa, personally approved the appointments
of candidates to elective office in Cicero. Infelise controlled Cicero’s
government and its hefty $50 million budget through a small time bookie and
a member of his Street Crew, Frank J. "Baldy" Maltese.

Ferriola’s death gave Infelise more power, and absolute control of Cicero.
Auippa’s incarceration gave him the independence he sought. He was already
head of the enforcement division of the powerful and mob connected Teamsters
Local 714.

With the backing of a now more powerful Infelise, Maltese was elected to
office and quickly became the chief confidant of Town President Henry

Frank had been married three times, and all three of his wives’ names were

His third wife, Betty Loren, was a tough barroom gal who he had met at a
Cicero bar. With his help, Betty landed a job working in the Liquor Control
Commission office at Town Hall, and later, after she married Frank, was made
the chief administrative aide to Klosak.

That gave Loren-Maltese power because Klosak came to work late and left
before noon, leaving his Town Hall “President’s Office” under Betty’s and
Frank’s control.

When Klosak died in December 1992, Betty was named his successor as Acting
President. She was elected Town President in April, 1993.

The convictions of the Infelise Street Crew in 1991 and 1992 had threatened
his organization’s survival. Infelise was sentenced to a hefty 68 year
prison term. The mild-mannered and portly “Baldy” Maltese was fighting off
an indictment on racketeering charges and anticipated following in Infelise’
s footsteps.

It was Maltese, some believe, who came up with the scheme to control the
Town’s insurance payment system, and that redirected profits to Infelise
cronies. To insure that the plan would continue, even after “Baldy” Maltese
was to go to jail, they agreed to put the town in the hands of Frank’s new
wife, Betty Loren.

The Town folklore has it that Frank married Betty to prevent her from being
forced to testify against him. Whether that was true or not, Frank also knew
that Betty had enough experience to run Klosak’s administration and to
protect a system that could funnel funds into the Infelise family.

“Baldy” Maltese had come up with a simple plan that could allow money to be
skimmed from the Town’s $50 million a year budget with little notice.

Cicero is a self-insured town. The town’s 650 employees bring their medical
bills to a town bureaucrat who reviews the bills and then authorizes
payments. The payments were not made directly to the doctors or to the
hospitals, however, but to an insurance management firm.

In 1992, that insurance management firm was Travelers.

Under the Maltese scheme, a new firm was created for the sole purpose of
managing Cicero’s insurance program. That new firm was Specialty Risk
Management, and it was owned in a partnership headed by John LaGiglio, an
Infelise associate linked to Flash Trucking.

Several other Infelise associates also were a part of the Specialty Risk
Management team that would come to Town Hall and meet behind closed doors
with Frank Maltese, including Frank Taylor, and the nephew of Infelise
associate Paul Spano.

LaGiglio’s company was hired in 1992 to work as a “student” with the Town’s
regular insurance management firm, until they could learn the system.

In late 1993, Specialty Risk Management took over complete management of the
insurance program. Specialty Risk received an exorbitant 30 percent
commission on billings it processed, plus a $7,000 a month administration

“Baldy” Maltese, who was the Town’s Assessor, was named as the insurance
liaison who supervised the system. Knowing he would be going to jail
eventually, “Baldy” Maltese believed he had enough time to solidify the
arrangement. He died in October, 1993 of pancreatic cancer.

Handpicked by Infelise and her husband to run Cicero, Betty Loren-Maltese
then named one of her top Town Republican Organization precinct workers and
longtime Town Hall administrator, Bob Balsitis, to succeed “Baldy” Maltese
and oversee the insurance program.

But when Balsitis saw that the payments the Town was making to Specialty
Risk were thousands of dollars higher than the actual billings, he
complained to Loren-Maltese. And Loren-Maltese fired him.

And, she fired his successor, Eugene Berkes. Finally, she put the job of
administering the payments in the hands of an elderly lady and precinct
worker who knew enough not to question the goings on in Cicero.

From Silver Shovel to OC 1

When Balsitis was first contacted by the FBI after his firing, Cicero was a
top priority of the feds. FBI mole John Christopher had spread out money all
over Chicago and even tried to use his friendships in Cicero to make some

But what began as a spin off of Chicago’s Silver Shovel probe in 1994,
quickly turned into a new and separate federal probe of corruption in
Cicero, focussing in on the Loren-Maltese administration.

In 1996, the FBI created a special Organized Crime Task Force to investigate
Loren-Maltese called Special Unit OC-1.

Loren-Maltese was notorious for hosting lucrative fundraisers.

Cicero’s annual Golf Outing generated more than $400,000 in donations each

Loren-Maltese began a drive to consolidate political power, pushing aside
political rivals. She forced an ally, Cook County Commissioner Allan C.
Carr, to abruptly step down as Cicero Township Republican Committeeman in
1994, giving herself absolute control over the 200-member Town of Cicero
Republican Organization that included many of the Infelise Street Crew and
their families and even a distant relative of the late Anthony “Big Tuna”
Accardo who controlled the Town’s Building Department. She appointed herself
to take Carr’s place.

In 1996, she renamed the golf-outing in her own honor, and published a 500
page Campaign Ad book that added $200,000 to her growing Committeeman’s

It was Betty’s ouster of Carr that opened the door to a new avenue of funds
for her.

As a Republican Committeeman, Betty was permitted by law to raise money
without having to disclose it publicly, as other elective officials are
required to do twice each year.

In less than a year, her secret Committeeman Fund had risen from nothing to
more than $1 million in receipts with $987,000 in the bank.

LaGiglio had escorted the widowed Loren-Maltese at the 1994 Golf Outing. It
was at that time that LaGiglio, who was a well known friend of her late
husband, detailed an investment his company had in a Northern Wisconsin
property long known as a favorite summer hangout for the Capone gang back in
the Twenties.

At that time, her campaign fund dealings were secret and she was not
required to detail her fund’s activity. Loren-Maltese wrote three checks
totaling $300,000 to a Specialty Risk Management sister firm, Plaza
Partners. Both were officed in the same building in Schaumburg.

Loren-Maltese claimed she did not know that LaGiglio’s firm was associated
with Plaza Partners, even though the deal she signed was with LaGiglio’s
wife, Bonnie.

The details and legality of the investment are now the subject of an intense
FBI probe of her administration. An original copy of the loan agreement
never surfaced, but a draft copy listed the loan at $500,000.

Infelise Must Hate Politicians

Things might have continued to remain a secret had it not been for political
developments beyond their control that Loren-Maltese continued to aggravate
with headline grabbing controversies.

In 1995, suburban and downstate Republican leaders targeting Cook County’s
Democratic party bosses passed a law in the Illinois General Assembly that
required all committeemen in Cook County to fully disclose their funds. And
in November 1995, Loren-Maltese quietly filed her paperwork disclosing the
sweltering war chest in the offices of the Cook County Clerk.

By 1996, it had become the largest campaign war chest in Cook County, and
had already drawn the attention of the Justice Department which was trying
to trace funds that had been donated but that had allegedly not been

Loren-Maltese, by now, was a political loose cannon.

She had named the Town’s Public Safety Building after her husband, drawing
intense media criticism for naming a police building after a convicted

News of her secret war chest had reached her eight elected colleagues on the
Town Board in the summer of 1996.

Betrayed, several of the board’s members confronted her and asked her for an

Loren-Maltese reacted by firing her chief adviser, Public Safety Director
Emil Schullo, a controversial but popular figure who was close friends with
“Baldy” Maltese. With Schullo out of the way, Loren-Maltese began a purge of
the Cicero Police Department, demoting and punishing those officers who were
not loyal to her administration.

She then moved to dump three of her critics from the Town Republican
Organization slate. The insurgents mounted a challenge to her re-election in
the February 25 Republican Primary and lost.

Whoz daBoss?

After his incarceration, the Infelise Cicero Street Crew was brought under
the control of Mike Spano whose brother Paul was among those sentenced with
Infelise. Spano, also a cousin of Maltese, reports directly to two well
known organization figures, Johnny “Apes” Monteleone and James Marcello.

Neither of them could control Loren-Maltese who privately boasted about her
friendships with the known crime family leaders, and also of her
independence and power.

During the heated battle against her former colleagues, Loren-Maltese
reportedly met several times with Spano to work out a compromise by leaning
on her challengers.

At the same time, her relationship with LaGiglio, which at one time was
described as “friendly,” had soured quickly. No doubt her ties to Spano
soured too, although he continued to work at Johnny “Apes” direction to
“calm things down” in the Western suburb.

Loren-Maltese’s best defense was to blame the overpayments on LaGiglio, a
Spano underling which she quickly did, and demanded that the money be repaid
to the Town.

LaGiglio halted all processing of claims by the Town and told investigators
that Cicero had a “$4.5 million credit,” which they would never recover.

But while Loren-Maltese had turned away from Spano, she had turned to a
connected political powerhouse, Ed Vrdolyak for guidance out of her federal

Vrdolyak, who has fought hard over the years to distance himself from public
associations with mob figures, was forced to surface during Loren-Maltese’s
re-election campaign as her chief political adviser and strategist.

Vrdolyak had a major interest in Cicero, drawing legal consulting fees in
excess of $1.19 million. It was a Vrdolyak pal responsible for the
multi-million development along Cicero Avenue.

He personally directed the Loren-Maltese re-election campaign, selecting her
political consultants, Dave Donahue and Lee Harris, and organized her street

And, Vrdolyak assisted in directing the meetings of her massive precinct
captain’s organization.

Whether Vrdolyak or Spano wields more influence over Loren-Maltese is yet to
be determined. The FBI probe into her actions could lead to her certain

It could end mob control over Cicero, but more than likely, it will just
open another chapter.
Terry Gillespie, who represents Kurzawa.

Ill. Law Enforcers Go on Trial

WHEATON, ILLINOIS - A man who spent nearly a decade on death row for a crime
he didn't commit was charged with murder because of his own lies, argued
attorneys for law enforcement officials accused of framing him.

``Finding the truth in Rolando Cruz is like finding a snowman on the sun,''
defense attorney Brian Telander said today.

Three former Illinois prosecutors and four sheriff's deputies are charged with
railroading Cruz, who was convicted then acquitted of killing a 10-year-old

Opening statements in their trial, which accuses them of lying in court,
creating evidence and conspiring to obstruct Cruz's defense, began Tuesday
and continued today.

``They did it with criminal intent and they got away with it twice,'' prosecutor William Kunkle said Tuesday. ``Maybe the tangled web finally gave way of its own nasty weight.''

Legal experts said they cannot recall another trial in which prosecutors were charged with crimes for how they handled a case.

All seven defendants are charged with conspiracy to obstruct justice and conspiracy to commit official misconduct. The sheriff's deputies face additional charges, including perjury.

Juries twice convicted Cruz of killing of Jeanine Nicarico, who was abducted from her home in the Chicago suburb of Naperville while sick from school in 1983.

Authorities pressed on despite evidence that another man might have been the killer, despite repeated losses in appeals courts and despite a campaign by religious leaders, law school deans and journalists who were convinced Cruz was innocent.

Then, during Cruz's third trial in 1995, came a stunning turnabout.

A supervisor in the sheriff's department recanted his previous testimony and cast doubt on a cornerstone of the prosecution - that Cruz had revealed incriminating details to detectives in a 1983 statement describing a ``vision'' or ``dream'' he had about the crime.

Cruz was found innocent and charges against co-defendant Alejandro Hernandez were dropped shortly after.

On trial are three former DuPage County prosecutors: Thomas Knight, now in private practice; Patrick King, now a federal prosecutor; and Robert Kilander, now a DuPage County judge. Also indicted were sheriff's Detectives Thomas Vosburgh and Dennis Kurzawa, and Lts. James Montesano and Robert Winkler.

The defendants intend to attack Cruz as a liar who really was involved in the crime, and the case may well turn on how believable and sympathetic Cruz seems when he takes the stand.

Cruz was a small-time criminal who started out as an informant in the Nicarico killing but gradually became a suspect.

Defense attorney Terry Gillespie said Cruz tried to obstruct the investigation just because he didn't like police.

``The evidence will show that man is not a victim of anything, unless he's a victim of his own diabolical scheme,'' Gillespie said Tuesday. ``You'd be hard-pressed to find anybody involved with this judicial system who that man didn't lie to in 1983.''

The defense contends it's unbelievable that seven men, some of whom did not
know each other well or like each other much, would engineer a decade-plus
conspiracy that spanned three administrations in the state's attorney's office.

The defense attorneys are also concerned about recent media coverage of
several murder convicts found to be innocent in Illinois.
The defense team included Terry Ekl, a focused, organized, and thoroughly
devoted lawyer for his client. Also present was Terry Gillespie, a gem from
Chicago who delivered his lengthy opening and closing statements without a
single note and whose cross-examination of Cruz was a masterpiece. Brian
Telander provided a brilliant cross of Cruz, which the jury clearly found
pivotal. Ernie DiBenedetto, who waived jury and proceeded by bench trial for
his client, Robert Winkler, had a difficult job that he handled with aplomb
and success.

Terry Gilespie, the attorney representing the indicted party, as an interesting history.....

Mob Lawyers The Legal Eagles who Defend/Represent the Mob & Their Pals

Allan Ackerman (reputed mob hitman Harry Aleman)
See Harry Aleman Page

Ed Gensen (Gillespie partner)

Terence Gillespie (Gensen Partner) (Infelise associate & racketeer Robert Salerno)
Betty Loren-Maltese

Albert J. Krieger
(John "The Dapper Don" Gotti)
See Salvatore "Sammy the Bull" Gravano page

Art Nasser (John LaGiglio)

Charles Schneider
Betty Loren-Maltese

Patrick Tuite
(Rocco Infelise)

Ed Vrdolyak

Vrdolyak Ties to Wrong Man Murder Hit Man Cops in the Wrong Man Murder Case

Vrdolyak's Controversial History Vrdolyak Represents Murdered Chicago Cop Mike Garner

Betty Loren-Maltese Vrdolyak Impliccated in Silver Shovel Probe -- June 1997

Helps Mob Princess Axe Good Cops -- April 1997 Vrdolyak and links to Ferriola


The Rodham Family Biography

(NOTE: The Clinton campaign would not release the birth dates of all family members if an age is not indicated in a Bio, it was not available through alternate sources)

Hillary Rodham Clinton was born on October 26, 1947 and is the oldest of three children. Hugh Rodham, Hillary's father, died on April 7, 1993 at the age of 82. Her mother, Dorothy Rodham, lives in Little Rock.

The death of Hugh Rodham forced Hillary to take a very public break while she was working with her health care reform task force. President Clinton delivered the eulogy. Hugh Rodham was born in Scranton, Pennsylvania to British immigrants and played football for Penn State University. He worked his way up in the textile business in New York and Chicago, eventually buying his own drapery company in Chicago.

A life long Republican, Hugh Rodham (according to Bill Clinton) never gave up hope that his son-in-law would join him in the Republican party and support a cut in the capital gains tax.

NAME: Dorothy Howell Rodham
RELATIONSHIP: Hillary Clinton's mother

Hillary's mother, the former Dorothy Howell, grew up in a small California town and moved to Chicago in 1937. She was married in 1942 and never worked outside the home, although she did help with Bill Clinton's campaigns and her son Hugh's unsuccessful 1994 U.S. Senate bid. In 1987, she and her husband moved to Little Rock to be close to their daughter. She is considered intensely private and rarely speaks to the press. Little is known about her. (In fact, if you look her up in the index of Hillary Clinton's authorized biography, it says. See Virginia Kelley"--Bill Clinton's mother). She reportedly became much closer to her granddaughter Chelsea after the
death of her husband in 1993 and has traveled with her daughter to Paris when the President had an official visit.

Hillary describes her mother as having a sense of humor, devotion to family and an immense sense of adventure. She told Glamour magazine in 1993 that she grew up in the "classic parenting situation where the mother is the encourage and the helper and the father brings the news from the outside world."

Source: Times-Picayune 11/24/94, Chicago Sun-Times 11/27/94, LA Times 4/8/93
(Dorothy and Hugh Sr.)

Hillary's brothers, Hugh and Anthony (Tony), both live is Coral Gables, Florida and shared an apartment for three years before Hugh married. Hugh is three years younger than Hillary, and Tony is seven years younger. They still see each other at least once a day. Both have helped out on Bill Clinton's campaigns, starting with his first bid for U.S. House in 1972 -- they were in charge of nailing up signs.)

Hugh and Tony Rodham embarrassed the First Family in early 1993 by asking corporate donors to pay for their inaugural parties. The brothers dropped the effort after it became public -- although they claimed they did not see anything wrong with what they were doing.

NAME: Hugh Rodham
RELATIONSHIP: Hillary Clinton's brother

Hugh played second string quarterback on the football team at Penn State and graduated in 1972. He spent two years in the Peace Corps in Colombia. He took advanced degrees in education and law at the University of Arkansas, then moved to Miami to practice criminal law. He eventually became a public defender, working on the controversial drug court created by Janet Reno when she was Dade County state attorney. The court advocates treatment over jail time for drug addicts and Hugh Rodham helped develop an innovative approach to help people overcome drug addiction by way of acupuncture, counseling and frequent urine tests.

Hugh met his future wife, Maria Victoria Arias, a Cuban immigrant, when she was a college intern at the Miami public defender's office. They married in 1986, and Hugh moved out of the apartment he had shared with brother for three years. Hugh said in 1992 that he "loved" the apartment he shared with his brother, and unsuccessfully tried to convince his wife to move in after they married.

Hugh Rodham ran for the U.S. Senate in 1994, losing to incumbent Republican Connie Mack 70%-30%. Though President and Hillary Clinton campaigned for him, he didn't raise much money and received little help from Florida's Democratic establishment. He ran only one television ad, an anti-gun spot focused on the October 1994 attack on the White House, where Martin Duran fired two rounds at what Hugh's voice over called "my family." Hugh now has a liberal leaning talk radio show.

NAME: Tony Rodham
RELATIONSHIP: Hillary Clinton's brother

Tony Rodham never excelled academically like Hillary or Hugh. He attended Iowa Wesleyan College and the University of Arkansas but never received a degree. He worked in Texas for a metal-marking equipment company and sold insurance in Chicago before joining Hugh in south Florida in 1983--where he worked as a process server and a private detective until 1992. He now works for the Democratic National Committee coordinating "constituency outreach."

On May 28, 1994 at a White House ceremony, Tony Rodham married Nicole Boxer,
the daughter of Sen. Barbara Boxer of California. It was the first White House wedding since President Richard Nixon's daughter Tricia married Edward Cox in 1971.

Source: New York Times 2/18/94, People 12/14/92, Tampa Tribune 11/10/94 San
Francisco Chronicle 3/19/94, Facts on File 1994(Hugh and Tony)