by David Howard
Chapter 1: How to Steal a Bank
This chapter is drawn entirely from testimony given in United States v. Paul E. Chovanec, Docket No. HCR 77-93, which took place in federal court in Hammond, Indiana, in June 1978. The relevant testimony came from Phillip Kitzer and Kenneth Guilbert.
Chapter 2: The Informant
Most of the Jack Brennan biographical material came from interviews with Jack and his wife, Becky. I also drew Brennan family history from articles by Erwin P. Hair in Grapevine, the publication of the Society of Former Special Agents of the FBI. His story “Four Generations of Brennan Family Served as Special Agents of FBI” appeared in the March 1981 issue, followed by “Jack Brennan Represented Second Generation of Family in the FBI” in the April 1981 edition.
Howard resigned in 1960: “The Ultimate Con,” Knight-Ridder Newspapers (Ellensburg Daily Record), August 7, 1981.
systematically fleece them of cash: See Chicago Tribune articles “Ex-Insurance Aide Indicted for Thefts from 2 Companies,” October 20, 1971, and Neil Mehler, “Firm’s Heads Told: Pay Policyholders,” February 2, 1974.
“history of fraud and flimflam”: Selwyn Raab, “FBI Is Duped by Own Ruse; U.S. Faces Suits,” New York Times, May 18, 1979. For more on Howard’s shenanigans after the episode described in this book, see “FBI’s Link to Scam Suspect Fuels Debate on Informants,” by Douglas Frantz and Maurice Possley, in the Chicago Tribune, September 23, 1984.
“This is the perfect vehicle”: Norman Howard’s testimony in U.S. v. Chovanec.
writing illegal bail bonds: Gary Galloway, “Gary Pair Charged with Writing False Bail Bonds,” Post-Tribune (Gary, Indiana), March 14, 1975.
Bobby and Susanna Duckworth: From an interview with Allen Ezell; the indictment and court filings in United States v. Paul E. Chovanec Jr., et al., Docket No. 78-0583, Charlotte, North Carolina; and Robert Hodierne’s “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
The agent approached Kitzer: From Chovanec’s statement, dated July 7, 1978, filed in United States v. Frank Oliver, Docket No. 78-59, Charlotte, North Carolina.
Chapter 3: You Owe Me Fifty Bucks
Wedick provided the noted memo from Orville Watts dated May 12, 1976, regarding his desire to work undercover. Wedick was also the subject of two lengthy Los Angeles Times stories: “The Agent Who Might Have Saved Hamid Hayat,” by Mark Arax, May 28, 2006, and “The G-man, the Shrimp Scam, and Sacramento’s Big Sting,” by Mark Gladstone and Paul Jacobs, December 11, 1994. A tape of the October 21 meeting between Kitzer and Norman Howard was played for the jury in U.S. v. Chovanec, and was transcribed into the record.
Chapter 4: The Shell Game
The bulk of this material comes from transcripts of the Hammond trial, U.S. v. Chovanec. A tape of the Holiday Inn meeting with Kitzer, Chovanec, Howard, and undercover FBI agent Dean Naum was played for the jury and transcribed into the record, as was a tape of the subsequent phone call between Naum and Kitzer. The rest of the material comes from the testimony of Kitzer, Howard, Naum, Wedick, and Dan King and Steven Watts of St. Joseph Bank.
Chapter 5: The Thunderbird
This chapter was based on interviews with Wedick and Brennan. Kitzer also testified on multiple occasions about the circumstances under which he met the two agents.
Chapter 6: Hello, Cleveland
Much of the material in this chapter comes from testimony in United States v. Andrew D’Amato, Armand Mucci, and Robert Bendis, Docket No. 78-20070-01, which took place in federal court in Kansas City in December 1978. Kitzer, Mucci, Bendis, Pro, Brennan, and Wedick all took the witness stand.
Kitzer had met them: Kitzer’s testimony details their shared history and the proposed Shaker House scam.
a 160-room edifice: See a description of the Shaker House at the Cleveland Memory Project, run by the Michael Schwartz Library at Cleveland State University: http://images.ulib.csuohio.edu/cdm/singleitem/collection/postcards/id/2034/rec/20.
“a little warm”: Kitzer testimony in U.S. v. D’Amato, Mucci, and Bendis.
“It’s a pretty shocking”: Ibid.
“hit the sheet”: Kitzer’s expert testimony in United States v. Peter Martell, aka Peter Raia, Docket No. 81-129, a trial that took place in federal court in Philadelphia in July 1981. Martell was convicted of conspiracy to pledge stolen bonds for a loan, among other charges.
a “dumb Dago” from: Prosecution memo from Assistant U.S. Attorney Richard A. Hanning to U.S. Attorney David T. Ready, Northern District of Indiana, November 16, 1977.
Chapter 7: No Mickey Mouse
The Kealoha case was the subject of extensive testimony in the aforementioned Kansas City trial and in United States v. Mark Iuteri, Docket No. 80-1491, which took place in Honolulu in May 1980. Testimony on the latter trial came from Kitzer, Kealoha, Iuteri, Brennan, and Wedick, among others.
his capstone project: Walter Wright, “FBI Out-Cons Worldwide Con Man,” Honolulu Advertiser, January 5, 1980.
With the market sagging: Walter Wright, “Con Man Tells Court Kealoha’s Attorney, Builder ‘In on Scam,’ ” Honolulu Advertiser, May 8, 1980.
Fireside Thrift, which had: Walter Wright, “ ‘Phony Bank’ Reportedly Used in Earlier Con Job on Kealoha,” Honolulu Advertiser, January 7, 1980.
Yee was connected: Kitzer and Kealoha testimony in U.S. v. Iuteri.
“What are you gonna do”: Walter Wright, “King of Scam Royally Conned Pigeons Until FBI Caged Him,” Honolulu Advertiser, May 9, 1980.
a takeout commitment: An excellent overview can be found in the decision in the Iuteri case by the U.S. Court of Appeals for the Ninth Circuit dated March 9, 1981, Docket No. 80-1491.
Liechtenstein-based trust: The trust was discussed at length in the Hawaii trial (U.S. v. Iuteri). Also see Theodore A. Driscoll and Tom Condon, “State Financier, Under Probe, Key Figure in $30 Million Deal,” Hartford Courant, December 12, 1976. For more on the Fontainebleau’s purported sale, see “Famed Hotel Sold in Miami,” an Associated Press story that ran in the Naples Daily News on November 9, 1976.
would “stand up”: Kitzer testimony in U.S. v. Iuteri.
“We do not question”: Final Report of the Select Committee to Study Undercover Activities of Components of the Department of Justice, December 15, 1982, p. 34. Available on the website of the National Criminal Justice Reference Service: https:www.ncjrs.gov/pdffiles1/Digitization/124269NCJRS.pdf.
“to secure a foothold”: Ibid., p. 35.
Hoover nixed undercover work: Tim Weiner, Enemies: A History of the FBI (New York: Random House, 2012), p. 212.
“turning agents into investigators”: James Q. Wilson, The Investigators: Managing FBI and Narcotics Agents (New York: Basic Books, 1978), p. 171.
“the dress code of the agents”: Ibid., p. 35.
“shit cases with which”: Ibid., p. 97.
organized crime, foreign counterintelligence, and white-collar crime: From the FBI’s online history; see “Aftermath of Watergate: 1970s.” Available at https://www2.fbi.gov/libref/historic/history/watergate.htm.
“quality over quantity” policy: Final Report of the Select Committee to Study Undercover Activities, p. 39.
“are far less valuable”: Ibid., p. 41.
with 516 resident offices: Wilson, Investigators, p. 91.
“When the cash value”: Jonathan Kwitny, The Fountain Pen Conspiracy (New York: Alfred A. Knopf, 1973), p. 5.
The superswindlers collectively: Ibid., p. 4.
“Wait,” D’Amato said: Kitzer testimony in U.S. v. Iuteri covers this entire passage.
“you use that with the victim”: From Kitzer’s expert testimony in United States v. Sidney Gerhardt and Joseph Adornato, in Mobile, Alabama, Docket No. 82-CR-8.
Chapter 8: The Junior G-Men
Beyond the FBI agents’ recollections, I relied in this chapter on the Hawaii and Kansas City testimony (U.S. v. Iuteri and U.S. v. D’Amato, Mucci, and Bendis) and the thoroug
h reporting of Walter Wright of the Honolulu Advertiser. His story of May 10, 1980, under the headline “Fleecing a ‘Mark’ in Hawaii No Beeg Ting,” provided the material for the mock-trial scene.
Chapter 9: The Poodle Lounge
The Hartford Courant covered the exploits of Connecticut native Andrew D’Amato extensively and aggressively, as evidenced by the citations below.
snowed in Miami Beach: Bruce J. Schulman, The Seventies: The Great Shift in American Culture, Society, and Politics (New York: Free Press, 2001), p. 121.
Associated Press even published: “Famed Hotel Sold in Miami,” Associated Press (Naples Daily News), November 9, 1976.
Hartford Courant followed up: Theodore A. Driscoll and Tom Condon, “State Financier, Under Probe, Key Figure in $30 Million Deal,” Hartford Courant, December 12, 1976.
“not involved anymore”: Theodore A. Driscoll and Tom Condon, “Hotelier Says Publicity Cost D’Amato Top Job,” Hartford Courant, December 15, 1976.
“The performance bond and such-type”: Kitzer provided this explanation as an expert witness in 1982, in U.S. v. Gerhardt and Adornato.
scale and grandeur: See Tom Austin’s “Fontainebleau Hotel’s Extreme Makeover” in Travel + Leisure: http://www.travelandleisure.com/articles/fontainebleau-hotels-extreme-makeover.
“as father confessor”: Mark Gladstone and Paul Jacobs, “The G-man, the Shrimp Scam, and Sacramento’s Big Sting,” Los Angeles Times, December 11, 1994.
order by Scotland Yard: Affidavit regarding Packman given by Wedick and Brennan, signed September 1982.
Chapter 10: Mr. Mutt and Mr. Jeff
The narrative of Kitzer’s early life was constructed from testimony, newspaper reports, and interviews with his ex-wife. Kitzer also testified extensively on his formative years and experiences. For example, see testimony in his aforementioned appearances as an expert witness.
historic Graycliff Hotel: To learn about its history, check out http://www.graycliff.com/graycliff-history/.
people called him Junior: Kitzer testimony in United States v. John Kaye and John Calandrella, Docket No. 78-5341, which took place in Louisville in 1978.
He was only seven: Finlay Lewis, “Insurance Firm Woes Related by Young Kitzer,” Minneapolis Tribune, June 1, 1967.
One afternoon, a friend: Interview with Helen Racan.
“I bought the book”: “Kitzer Jr. Relates Insurance Start,” Associated Press (Bismarck Tribune), May 31, 1967.
door-to-door salesman: Kitzer’s expert testimony in U.S. v. Gerhardt and Adornato.
A bond agency he worked for: “Two Bondsmen Sue Gutknecht; Demand $125,000,” Chicago Daily Tribune, January 29, 1955.
“I’ve been telling”: Thomas Powers, “Phone Threat to Bondsman Is Disclosed,” Chicago Daily Tribune, April 12, 1959. Despite his disavowals, the elder Kitzer’s firm again came under scrutiny. See also Sandy Smith’s “Bail Bondsman Vows He Made No Kickbacks,” Chicago Daily Tribune, December 2, 1961.
demanded a $25,000 kickback: Kitzer recounted this episode on at least two occasions: once as an expert witness in U.S. v. Martell and again in the federal trial in Louisville (U.S. v. Kaye and Calandrella).
Chapter 11: Rip Off Hawaii
Mark Iuteri testified in his own defense in his trial in Hawaii, arguing that he had just been acting as Andy D’Amato’s unwitting assistant. As the Honolulu Advertiser wrote in a headline on May 14, 1980, with a tangible note of sarcasm: “Accused Con Man Iuteri Testifies That He Just ‘Carried the Luggage.’ ” The jury didn’t believe him. As for the Kitzer insurance adventures of the 1960s: The two Minneapolis newspapers, the Star and the Tribune, each wrote more than a hundred stories on the matter. I have listed only the ones that link directly to passages in this book.
“Listen, Jimmy,” he said: Kitzer’s Hawaii testimony in U.S. v. Iuteri.
“phony claims of connections”: Theodore A. Driscoll and Tom Condon, “State Financier, Under Probe, Key Figure in $30 Million Deal,” Hartford Courant, December 12, 1976.
chatted up a woman: Wedick provided most of the details of this (in interviews and in his testimony), and Kitzer confirmed it in his Hawaii testimony (U.S. v. Iuteri).
“button man for the Outfit”: Walter Wright, “Iuteri Called a Killer for Mafia,” Honolulu Advertiser, July 8, 1980.
In 1962, they took over: Paul Presbrey, “Kitzer Testifies for Self in Fraud Trial,” Minneapolis Star, June 1, 1967. Also see Finlay Lewis, “Insurance Firm Woes Related by Young Kitzer,” Minneapolis Tribune, June 1; and Presbrey’s “Kitzer Tells of Firm’s Rapid Rise at Expense of Other Companies” and “Kitzer Jr. Tells Tale of Sinking Into Debt” in the Star on June 2 and 3, respectively.
“dad bust it!”: Lester Velie, “Riddle of the Vanishing Insurance Companies,” Reader’s Digest, September 1966. This extensive article covers Head’s investigation.
In July, a policyholder: “Suit Charges Bell Insurers’ Fund Misuse,” Chicago Tribune, July 2, 1965.
Federal prosecutors targeted: Jim Parsons, “Magnusson Named with 16 Others in Fraud Indictment,” Minneapolis Tribune, October 30, 1965.
“A proper investigation of”: Gerry Nelson, “Atty. Gen. Mattson Says Magnusson Allowed Public to Be Damaged,” Associated Press (Winona Daily News), November 3, 1965.
The Kitzers were living: Ibid.
On November 10: “Magnusson, Others Plead Not Guilty,” Minneapolis Star, November 10, 1965.
But the following January: Louis Dombrowski, “State Sues Bell Casualty Chiefs; Charges Fraud,” Chicago Tribune, January 5, 1966.
Minnesota prosecutors charged Phil: Finlay Lewis, “Goff, Kitzer Jr., Firm Indicted in Political Contribution Case,” Minneapolis Tribune, October 28, 1966.
“Phony charges and”: “Humphrey Asserts Republicans Vilify Rolvaag and Mondale,” New York Times, October 24, 1966.
In June 1966, they sued: “Kitzer Files Suit Against Insurer Group,” Chicago Tribune, June 2, 1966.
filed a $3 million libel: “Suit Charges Libel, Seeks Nine Millions [sic],” Chicago Tribune, December 20, 1966.
“The marks in Hawaii”: This anecdote was recounted by several different witnesses in Hawaii, including Brennan and Wedick; see U.S. v. Iuteri.
“No, you have the words”: Ibid.
“Did you do your appraisal?”: Ibid. Multiple people testified to this interlude, most prominently Kitzer.
John Kaye was one: This was the subject of Kitzer’s first trial, which Bill Osinski of the Louisville Courier-Journal covered extensively. See “FBI Agent Describes His World Travels with Con Artist,” February 17, 1978.
“Yes, we have done business”: Kitzer described the concept of a reader bank multiple times, including in detail in his testimony in U.S. v. Gerhardt.
“What is your price?”: Kitzer’s testimony in Louisville (U.S. v. Kaye and Calandrella).
“Get lost,” he said: Described by multiple witnesses, including Kitzer and Brennan, in U.S. v. Iuteri.
Chapter 12: The Parking Lot Fugitive
This chapter is drawn from the testimony in Honolulu (U.S. v. Iuteri) of Kitzer, Brennan, Wedick, Iuteri, and Kealoha, plus subsequent interviews with the former FBI agents and Dan Bent, the government prosecutor who handled the case. Iuteri acknowledged during his testimony that he hid papers in his clothing while transporting them down to the pool.
Chapter 13: The Cold Plunge
Trying to embarrass Kitzer, the defense attorneys in Hawaii (U.S. v. Iuteri) brought up the incident involving the transvestite in Tokyo. Kitzer admitted to it but downplayed his intentions.
They lived in an old run-down farmhouse: Details of Kitzer’s personal life come from Nick Coleman, “Ellendale Wondered About Phil Kitzer,” Minneapolis Tribune, March 12, 1978.
“an air of excitement”: Steve Andrist, “Sensational Trial Kept Bismarck Astir,” Bismarck Tribune, May 16, 1979.
“This case involves bribery”: Paul Presbrey, “Blackmail Charged in Insurance Trial,” Minneapolis
Star, March 21, 1967.
“personal checking account”: “ ‘Blackmailed,’ Magnusson Said of Letter,” Associated Press (Daily Journal, Fergus Falls, Minnesota), March 22, 1967.
Several young women: “Women Speak of Trips Paid for by Kitzer,” Associated Press (Winona Daily News), April 18, 1967.
Audrey Jensen said: “Woman Writes of Jacket Kitzer Bought,” UPI (Winona Daily News), April 26, 1967.
“great concept of social”: Finlay Lewis, “Foley Calls Magnusson Minnesota’s ‘Trojan Horse,’ ” Minneapolis Tribune, June 20, 1967.
“six North Dakota housewives”: Donald Janson, “Minnesota Insurance Trial Implicates Democratic Politicians,” New York Times, March 26, 1967.
lawyer for David Kroman: Finlay Lewis, “Mistrial Declared in Kroman Trial; Mental Test Set,” Minneapolis Tribune, March 28, 1967.
were collateral damage: The defense strategy is summarized well in Paul Presbrey’s “Plot to Get Kitzer Attributed to Lord,” Minneapolis Star, June 20, 1967.
the “Caped Crusader”: Robert Hodierne, “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
When Junior himself: His testimony went on for more than a week; start with Paul Presbrey, “Kitzer Testifies for Self in Fraud Trial,” Minneapolis Star, June 1, 1967.
Kitzer said Lord once: Paul Presbrey, “Kitzer Jr. Tells Tale of Sinking into Debt,” Minneapolis Star, June 3, 1967.
grew “very, very angry”: Drawn from multiple accounts. See Finlay Lewis, “Gift to DFL Is Explained by Kitzer Jr.,” Minneapolis Tribune, June 3, 1967.
