by Gus Russo
Praise for Supermob
"Russo does a masterful job of establishing the ethnic and political foundations for Korshak's beginnings. The amount of research in the book is staggering. It's a testament to Russo's doggedness to bring the full story to light." —Chicago Sun-Times
"Blockbuster." —Chicago Jewish News
"Seymour Hersh, Nick Tosches and Brian Ross did early spadework, but no one has dug so deeply into 'The Fixer' as Gus Russo does."
—New York Daily News
"Engaging . . . an absorbing secret history of [the] American 20th century."
—Onion
"There are plenty of revelations in this absorbing book."
—Kirkus Reviews
"Korshak lived the kind of riveting life that's ripe for fiction . . . a brilliantly researched book."
—Forward
"Veteran investigative author and organized crime expert Russo's magnum opus is a compelling look at one of the last century's major power players. Russo's extensive research is amply evident, and he has made use of recently disclosed records to paint a fuller picture than predecessors such as Seymour Hersh and Brian Ross were able to . . . a worthy addition to the genre."
—-Publishers Weekly
"Truth lives in the shadows of history, and Gus Russo takes us into those shadows with his fascinating and frightening book Supermob."
—James Grady, investigative reporter for Jack Anderson and author of Six Days of the Condor
"Gus Russo, through some remarkable investigative journalism, has uncovered a dark side of American history—especially in California: from the 1940s to the 1980s, an almost untouchable group of exceedingly influential men wielded their enormous business and political power, sometimes criminally, to achieve their ends. The villainy explored in Supermob has always been suggested, but to my knowledge never nailed down and written about in a riveting book. Highly recommended."
—Vincent Bugliosi, former Los Angeles County lead prosecutor and author of Helter Skelter
"By exposing America's Supermob, Gus Russo has done what Congress and the Department of Justice should have done more comprehensively years ago. As a former federal investigator, I tip my hat to Russo for this exhaustive and compelling addition to the canon of seminal books on organized crime in America. Sidney Korshak, the ultimate mob lawyer and fixer, and some of his ilk are invisible no more."
—Philip Manuel, former chief investigator, U.S. Senate Subcommittee on Investigations, and member of the President's Commission on Organized Crime
"Supermob confirms what we in law enforcement have long known, but were prevented from pursuing: the longstanding relationship between the mob and 'legitimate' politicians and corporate leaders. This is a must-read for the average citizen who wants to know how organized crime has really impacted their lives. Gus Russo has written perhaps the most long-overdue book on crime in American society."
—Robert Fuesel, former special agent, IRS Organized Crime Division, and former executive director of the Chicago Crime Commission
"Nearly all of us who have written about the underworld's penetration of legitimate institutions have given considerable thought to authoring a book about Sidney Korshak. However, it took the courageous Gus Russo, w7ith his groundbreaking research and his fabulous rock 'n' roll writing style, to accomplish that landmark feat. Simply speaking, Supermob is a grand-slam home run."
—Dan E. Moldea, author of Dark Victory: Ronald Reagan, MCA, and the Mob
"Long one of our preeminent investigative journalists, Gus Russo here extends his unrivaled research into organized crime into a full-blast biography of Sidney Korshak, the suave mob lawyer behind decades of show business and California politics. This fascinating study of the powerhouse second generation of Chicago Russian Jews headed toward Beverly Hills is sociology with shark's teeth in its head, very original and very important."
—Burton Hersh, Fulbright scholar and author of The Old Boys and The Mellon Family
"Gus Russo is America's bravest and most respected investigative author, specializing in the underworld's hidden ties to the upperworld. Russo's chilling portrait of Supermob lawyer Sidney Korshak is his finest work in a brilliant career."
—Richard J. Whalen, author of The Founding Father: The Story of Joseph R Kennedy
SUPERMOB
How Sidney Korshak and His
Criminal Associates Became
America's Hidden Power Brokers
Gus Russo
BLOOMSBURY
Copyright © 2006 by Gus Russo
All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission from the publisher except in the case of brief quotations embodied in critical articles or reviews. For information address Bloomsbury USA, 175 Fifth Avenue, New York, NY 10010.
Published by Bloomsbury USA, New York
Distributed to the trade by Holtzbrinck Publishers
All papers used by Bloomsbury USA are natural, recyclable products made from wood grown in well-managed forests. The manufacturing processes conform to the environmental regulations of the country of origin.
THE LIBRARY OF CONGRESS HAS CATALOGED THE HARDCOVER EDITION AS FOLLOWS:
Russo, Gus.
Supermob : how Sidney Korshak and his criminal associates became America's hidden power brokers / Gus Russo.— 1st U.S. ed.
p. cm.
Includes bibliographical references and index.
eISBN: 978-1-59691-898-6
1. Korshak, Sidney Roy, 1907-1996. 2. Lawyers—Illinois—Chicago—Biography. 3. Lawyers—California—Biography. 4. Organized crime—United States. I. Title.
KF373.K67R87 2006
364.1092—dc22
[B]
2006015747
First published by Bloomsbury USA in 2006
This paperback edition published in 2007
10 9 8 7 6 5 4 3 2 1
Typeset by Westchester Book Group
Printed in the United States of America by Quebecor World Fairfield
Contents
Cast of Characters
Preface
1. The Lawyer from Lawndale
2. From Lawndale to the Seneca . . . to the Underworld
3. Birds of a Feather
4. Kaddish for California
5. The Future Is in Real Estate
6. "Hell, That's What You Had to Do in Those Days to Get By"
7. Scenes from Hollywood, Part One
8. Jimmy, Bobby, and Sidney
9. Forty Years in the Desert
10. The Kingmakers: Paul, Lew, and Ronnie in California
11. The New Frontier
12. Bistro Days
13. "He Could Never Walk Away from Those People"
14. Scenes from Hollywood, Part Two
15. "A Sunny Place for Shady People"
16. Coming Under Attack
17. From Hoffa to Hollywood
18. From Dutch Sandwiches to Dutch Reagan
19. Airing Dirty Laundry and Laundering Dirty Money
20. Pursued by the Fourth Estate
21. The True Untouchables
22. Legacies
Acknowledgments
Appendix A: Supermob Investments
Appendix B: Pritzker Holdings
Appendix C: Ziffren-Greenberg-Genis Documents
Notes
Bibliography
Cast of Characters
Antonino Leonardo Accardo (1906-1992)—aka "Tony," "Joe Batters," and "The Big Tuna." Served as boss of Chicago's Outfit, the most powerful underworld cartel in U.S. history, for over six decades in the twentieth century. A major force in national bookmaking, labor racketeering, the Teamsters Pension Fund, and Las Vegas casino gambling, Accardo treated Sid Korshak like a son.
Jac
ob 'Jake" (or 'Jack") Arvey (1895-1977)—Chicago-born attorney/political kingmaker who built one of the most powerful patronage "machines" in America. He served as a mentor to many of Chicago's most "well-connected" Jewish attorneys, and as a crucial vote deliverer for Democratic presidents such as FDR, Truman, and JFK. Key early supporter of the state of Israel.
David Lionel Bazelon (1909-1993)—Chicago tax attorney, originally in law firm with college buddy Paul Ziffren, but left private practice to become Truman's assistant attorney general in charge of the lands division, a position that he used to his advantage in his own real estate investments. He quickly advanced to become director of the Office of Alien Property, where he oversaw the disbursement of land (often to his Chicago pals) seized from the Japanese Americans sent to internment camps during World War II. Eventually became a chief judge in D.C.'s Court of Appeals.
Charles Bluhdorn (1926-1983)—aka "The Mad Austrian." Austrian immigrant who parlayed a successful auto parts distributorship into a conglomerate comprising over a hundred firms, all consolidated in 1958 when he formed Gulf & Western Inc. In 1966, Bluhdorn purchased struggling Paramount Pictures, named Sid Korshak's sycophant Bob Evans as production chief, then brought in the Mafia's Vatican money launderer Michele Sindona as a major "silent" investor in the movie studio. Bluhdorn utilized Sid Korshak's talents to oversee his Chicago racetracks' labor issues; invested in Korshak's mob retreat, The Acapulco Towers.
Albert Romolo Broccoli (1909-1996)—aka "Cubby." One of Sidney Korshak's closest Beverly Hills friends, and producer/owner of the James Bond movie franchise. When Broccoli produced Diamonds Are Forever in Las Vegas, Korshak was the "uncredited legal advisor," donating both his Riviera Hotel and his girlfriend Jill St. John to the production.
Edmund G. "Fat" Brown (1905-1996)—San Francisco-born attorney and respected governor of California (1959-67). Father of California governor Jerry Brown. Received important political and financial support early and often from Sid Korshak and friends. On board of directors of Bernie Corn-feld's Investors Overseas Services (IOS), which bilked investors out of hundreds of millions, before imploding after allegations of being a fraudulent pyramid scheme and money launderer for the mob. (Founder Cornfeld served eleven months in a Geneva jail, before charges were dropped, allowing him to move to Beverly Hills and date Heidi Fleiss.)
Jerry Brown (Edmund G. Brown Jr.) (1938-)—aka "Governor Moonbeam." Governor of California (1974-83) who received controversial labor support from Sid Korshak, allegedly in return for Brown's favored treatment of Korshak's California racetrack-owner clients. Later, a presidential candidate (1992) and mayor of Oakland, California. Dated Linda Ronstadt.
Delbert W. "Del" Coleman (1926-)—After selling his interest in Seeburg, Inc. (a jukebox manufacturer linked to the Outfit by the Chicago Crime Commission), the Chicago entrepreneur, an investor in Sid Korshak's Acapulco Towers, connived with Korshak to take over the Parvin-Dohrmann company as part of a master plan to buy the Stardust and other Vegas casinos. The affair ended with Coleman, Korshak, and others being rebuked by the Securities and Exchange Commission for stock manipulation. The experience also led to a permanent falling-out between Korshak and Coleman.
Morris Barney "Moe" Dalitz (ne Dolitz ) (1899-1989)—aka "Moe Davis" and "The Godfather of Las Vegas." The leader of Cleveland's May field Road Gang, where he specialized in bootlegging and gambling. Moved to Las Vegas, where he owned mob-skimmed Desert Inn, before expanding into numerous other Vegas properties, and the formerly mob-friendly La Costa Resort in Southern California. Considered Sid Korshak his legal adviser.
Allen M. Dorfman (1924-1983)—For many years, did the Outfit's (and Sid Korshak's) bidding as manager of the Teamsters Pension Fund, disbursing over $500 million in low-interest loans, especially to Chicago hoods in Las Vegas. In return, he received kickbacks on the loans, and his insurance company was named carrier of the lucrative Teamsters' Health Care Fund. Soon after his convictions on the kickbacks and the bribery of Nevada senator Howard Cannon, he was murdered in the Chicago suburbs, amid contentions that he had been "flipped" by the feds.
Bob Evans (ne Robert J. Shapera) (1930—)—Manhattan-born clothing salesman for his brother Charles's Evan-Picone clothing line. After a brief flirtation with acting, named by Gulf & Western chief Charles Bluhdorn as production head at Paramount Studios, which he gave a new life after producing hits such as The Godfather and Love Story. Well-known abuser of narcotics, Evans fell out with his longtime "consigliere," Sid Korshak, after being busted in 1980 for cocaine possession, narrowly escaping a trafficking charge. It was reported that he later came under suspicion when Roy Radin, an investor in Evans's Cotton Club movie, was murdered in 1983, amid a haze of massive cocaine purchases and thefts. When the case came to trial in 1989, Evans, under the guidance of his attorney, Korshak friend Robert Shapiro, took the Fifth Amendment and refused to testify. Evans was a close friend and promoter of child rapist and director Roman Polanski. Dated (fill in the blank with starlet names). Serial husband.
John Jacob Factor (1889-1984)—aka "Jake the Barber." British stock swindler, brother of Hollywood cosmetics baron Max Factor. After hiding out in Chicago, Factor faked his own kidnapping (with the Outfit's help) to avoid extradition to the UK (sending an innocent "kidnapper" to jail for life). Later, Factor fronted for the Outfit at their Stardust Hotel in Las Vegas. In Sin City, Jake took orders from Sid Korshak, while in Los Angeles, brother Max Factor employed Korshak to keep labor in line. Noted philanthropist.
Charlie Gioe (ne Joye) (1904-1954)—aka "Cherry Nose." Bookie in the Capone Syndicate, co-owner of Chicago's Seneca Hotel (a key Supermob crossroads) with Alex Greenberg; convicted in the 1943 Hollywood extortion scandal, after which Sid Korshak, who had visited Gioe in prison twenty-two times, arranged for his parole supervision.
Alex Louis Greenberg (1891-1955)—aka "The Comptometer." Chicago bootlegger and real estate investor for the Capone mob and the Outfit, loan shark, and part owner of the Seneca Hotel. Partnered with Paul Ziffren and others in California land investments.
Al Hart (1904-1979)—Bootlegger in the Capone mob, distillery owner, backer of Bugsy Siegel in Las Vegas. After move to California, he owned the mob-friendly Del Mar Race Track and founded the mob-friendly City National Bank of Beverly Hills, later the largest independent bank in California. With Sid Korshak, an original investor in both the Bistro restaurant and Korshak's gangster getaway, The Acapulco Towers.
Conrad Hilton (1887-1979)—New Mexico-born patriarch of the Hilton Hotel dynasty, partnered with mob-front Arnold Kirkeby to expand his empire, which utilized Sid Korshak as labor consultant. Paid for his long association with Korshak when his bid to obtain a New Jersey casino license was rejected in 1985, largely due to Korshak's mob ties.
James Riddle "Jimmy" Hoffa (1913-1975?)—Rugged son of an Indiana coal miner who seemed predestined to head a violence-prone organization like the Teamsters, which he did from 1957 until his imprisonment for jury tampering in 1967. Hoffa was only able to attain his post thanks to the key backing of Outfit bosses such as Curly Humphreys, who had their sights fixed on the heavily endowed Pension Fund. When Hoffa allowed them Las Vegas loans, he had to answer to Sidney Korshak. Hoffa disappeared in 1975 after he announced he wanted to take back the Teamster presidency from a cabal that made Hoffa's relationship with racketeers seem benign by comparison.
Howard Robard Hughes (1905-1976)—Texas-born aviation-industry pioneer, film producer, Las Vegas-hotel magnate, recluse, and best-known sufferer of obsessive-compulsive disorder. Hughes tangled (successfully) with Sid Korshak over ownership of RKO studios in the fifties and unsuccessfully with Korshak's Outfit pals in Las Vegas in the seventies.
"Murray" Llewelyn Morris Humphreys (1899- 1965)—aka "Curly," "The Hump," "The Camel," "John Brunswick," "G. Logan," "Mr. Lincoln," "Dave Ostrand," "Cy Pope," "Einstein," "Mr. Moneybags." Labor-racketeering, corruption, and bribery genius of the Chicago Outfit. Sidney Korshak's direct superior and liaison to "the
Chicago boys" after Korshak was sent West.
Burton W. Ranter (1930-2001)—Abe Pritzker's Chicago tax attorney, and a founder of the Castle Bank in the Bahamas, where the Pritzkers and other clients were able to dodge millions in taxes in the 1970s. Kanter, himself a multimillionaire, openly admitted to not paying taxes for decades. With the Pritzker dynasty, devised a kickback scheme involving Prudential Insurance and creative forms of offshore film financing used to bankroll some of Hollywood's biggest hits. At the time of his death, after a complicated ten-year IRS investigation, he was awaiting sentencing for massive tax evasion. Noted philanthropist.
Kerkor "Kirk" Kerkorian (1917—)—California-born, hugely successful deal-maker and conglomerate builder. After an early profitable airline venture, he purchased MGM and numerous Las Vegas hotels, including the Hilton International, MGM Grand, The Mirage, and Mandalay Bay. In his early career, he was linked by telephone wiretaps to Genovese crime-family enforcer Charlie "the Blade" Tourine.
