Freedom of Information Act

Suspect No. 11

Newly released FBI records name the late Anthony F. Sansone Sr. as a suspect in the 1981 car bombing of Paul Leisure.

The FBI listed prominent St. Louis real estate developer Anthony F. Sansone Sr. as a suspect in the 1981 car bombing of underworld figure Paul John Leisure, according to bureau records released in August 2020 under the Freedom of Information Act.

Sansone is listed in the FBI report as Suspect No. 11.

Leisure, leader of a  faction of the St. Louis Syrian mob, lost both legs in the Aug. 11, 1981 bombing. The bomb exploded after Leisure got behind the wheel of his 1979 Cadillac near his residence on Nottingham Avenue in South St. Louis.

“The bombing of Leisure was apparently in retaliation for the bombing death of James Anthony Michaels Sr. in September 1980,” according to the FBI report.

Sansone was Michaels’s son-in-law.

Michaels, who was 75 years of age at the time of his death, oversaw organized crime in South St. Louis for decades. He began his criminal career during the Prohibition Era, and later forged an alliance with Italian Mafia boss Anthony “Tony G.” Giordano. After Giordano’s death from cancer in 1980, a violent power struggle developed between the Michaels and Leisure clans.

Michaels gang member George M. Faheen — Suspect No. 10 — was murdered by the Leisure faction in a retaliatory  car bombing less two months after the Leisure bombing. Jack Issa another suspect in the Leisure case died later of natural causes in Arkansas without being apprehended. Both Faheen and Issa were suspected of taking an active role in the Leisure bombing, and were known criminals. Sansone, on the other hand, had no criminal record, but was, nevertheless, listed with them and others.  All other suspects listed in the report have had their names redacted by the FBI, including Suspect No. 7, who the report says was fingerprinted by the Department of Defense for a top-secret security clearance.

Scene of the crime: Mansion House Apartments parking garage in downtown St. Louis, where Suspect No. 10 —  George M. Faheen — died, Oct. 17, 1981.

Under the terms of the Freedom of Information Act, the FBI released only the names of individuals known to be deceased.

Sansone’s alleged organized crime ties first made national headlines in a 1970 Life magazine story by Denny Walsh, which claimed Sansone was an intermediary between Michaels and Giordano’s organized crime interests and then-St. Louis Mayor A.J. Cervantes. Sansone’s was the mayor’s former business business partner and campaign manager. Sansone denied the allegations.

The St. Louis Post-Dispatch and St. Louis Globe-Democrat sided with Sansone and Cervantes, and condemned Walsh’s story, who was a former Globe-Democrat reporter.  Cervantes filed a $12 million libel suit against Life and Walsh, but it was dismissed in federal court, and the U.S. Supreme Court later refused to hear the case.

But in the local court of public opinion, the St. Louis Post-Dispatch opined that Walsh’s story was false and that it had smeared the entire city. The newspaper editorialized that “… visible evidence of everyday affairs in St. Louis does not support the correlative accusation of Life that organized crime flourishes here. On the contrary the city appears to be unusually free from the usual symptoms of such crime.”

Anthony F. Sansone Sr.

The car bombings a decade later proved the Post’s characterization false. But the initial push back served its intended effect. After the Post downplayed the Life story, Delugach quit the newspaper in protest. Despite winning the Pulitzer Prize with Walsh in 1969 for their reporting on labor racketeering inside Steamfitter’s Local 562, both reporters had been turned into pariahs and essentially banished from St. Louis.

The denial by the Post’s editorial page combined with the defensive posturing of the political and business establishments made it impossible for Delugach to remain in St. Louis. Before leaving town for a job at the Los Angles Times, he gave an interview to Post reporter Roy Malone, which was featured in the first edition of the St. Louis Journalism Review. In the interview, Delugach voiced bitterness over the biased coverage of Walsh and the Life magazine piece. When re-interviewed by Journalism Review in 2008, his opinion had not changed.

Although Walsh’s Life magazine story was trashed by the Post’s editorial page, another Post reporter, Edward H. Thornton, continued to shed light on Sansone’s alleged organized crime ties in the early 1970s through his reporting on a federal racketeering trial in Los Angeles. Giordano and the five other Mafia defendants were convicted along with Emprise Corp. in April 1972 of conspiring to conceal ownership of the Frontier Hotel and Casino in Las Vegas in 1966 and 1967. Following its conviction, Emprise, a mobbed-up sports concessionaire, changed its name to Delaware North.

Sansone testified at the Los Angeles trial that he delivered $150,000 to the managing director of the Frontier Hotel and Casino, but denied traveling to Las Vegas with Giordano.  During the trial, federal prosecutor Thomas E. Kotoske alleged that Sansone was Giordano’s “front man.”  A federal grand jury in Los Angeles convened in 1973 to examine the veracity of Sansone’s testimony, but did not indict him for perjury.

The Frontier Hotel and Casino in Las Vegas.

In a prelude to the troubles in St. Louis, a car bomb exploded in the parking lot of the Clarendon Hotel in Phoenix on June 2, 1976, killing Arizona Republic reporter Don Bolles. By the time of his death, Bolles had been investigating Emprise for years. His dying words implicated both the Mafia and Emprise for his murder. Bolles had earlier warned Congress of Emprise’s mob connections. On May 16, 1972, he testified before the House Crime Committee that Emprise had engaged “in a continual association with organized crime figures over a 35-year period.”

Citing FBI records obtained through the Freedom of Information Act, Post-Dispatch reporters Curt Matthews and Robert Adams in 1977 revealed that during the 1960s the bureau provided information on the New Left to Walsh in its efforts to discredit civil rights activists and members of the anti-Vietnam war movement.  When asked, Walsh admitted he had FBI sources when he was at the Globe, and confirmed that Globe publisher Richard H. Amberg had a cordial relationship with the bureau. Federal law enforcement sources were also known to have provided Walsh with information on Cervantes and the Steamfitters.

Al Delugach won the Pulitzer Prize for reporting in 1969.

By the late 1970s, however, Walsh’s glory days in St. Louis were long gone. Like his reporting partner, he had moved to the West Coast, where he joined the staff of the Sacramento Bee. The war in Vietnam had ended, too, and with it a change in political climate. St. Louis organized crime was also in transition. Giordano’s death in 1980, touched off a violent turf war. By then, however, the reporting of Denny Walsh and Al Delugach had already been dismissed or forgotten.

When 93-year-old  Anthony F. Sansone Sr. died in April 2020, his alleged ties to organized crime were omitted from the Post-Dispatch obituary, and history had effectively been revised.

The FBI Turned a Blind Eye to Rallo Mob Ties for Decades

A long-buried FBI report raises questions as to why the FBI and U.S. Justice Department ignored damning allegations by a now-very dead informant. 

 

The FBI knew that the Rallo Construction Co. had alleged ties to the Chicago Mafia for decades. In indictments filed by the U.S. Attorney for the Eastern District of Missouri against St. Louis County Executive Steve Stenger on April 25, 2019, John “Johnny Roller” Rallo was named as a participant in a pay-to-play scheme. He is scheduled to be arraigned May 10. 

 

The FBI knew about an alleged connection between the Chicago Mafia and Rallo Construction Co. of St. Louis as early as 1991, according to a classified FBI report released under the Freedom of Information Act.

Jesse Stoneking, the unnamed informant cited by the FBI in the report, died of a gunshot wound to the head in Arizona in 2003. Arizona law enforcement authorities ruled his death a suicide. Stoneking had been a top lieutenant of East St. Louis racketeer Art Berne in the 1980s, when he was working undercover for the FBI.  After he testified against Berne and other St. Louis area organized crime figures in federal court, the Chicago Mafia allegedly put out a $100,000 contract on his life.

Case Closed: Crime scene photo of the interior of the 1995 Ford Crown Victoria occupied by Jesse Stoneking on Jan. 19, 2003. The St. Louis mobster and federal informant died from a gunshot wound to the head. Arizona authorities ruled it a suicide.

Last month, the U.S. Attorney’s Office in St. Louis  issued a three-count indictment against St. Louis County Executive Steve Stenger for his role in steering lucrative contracts and property deals in return for campaign contributions from John G. Rallo, a former shareholder in one of the family-owned construction companies — CMR Construction Inc. CMR was formed 1989 by Charles N. Rallo and Michael J. Rallo, grandsons of the of founder of C. Rallo Contracting Co., which was incorporated in 1947.

John G. Rallo, also known as “Johnny Roller” for his long hours spent at the crap tables in Las Vegas, and fellow accomplice Sheila Sweeney were charged one week after Stenger  pleaded guilty. He is awaiting sentencing before Judge Catherine D. Perry in August. Until January, Sweeney headed the St. Louis Economic Development Partnership, a county agency that was used to dole out the contracts to Rallo and other political contributors to Stenger’s campaign coffers.

In May 1991, Stoneking informed the FBI that “Berne had told him that the Rallo Construction Company … belonged to the Chicago La Costa Nostra. …” The report goes on to say that “Berne told [Stoneking] that if Chicago wanted to buy property, businesses, get loans or some other such financial transaction it would be done through Rallo Construction Company in St. Louis.”

Stenger was introduced to Rallo by federal felon Sorkis Webbe Jr. in 2014, according to the federal indictment. Webbe, a former city alderman, was convicted of voter fraud and obstruction of justice in 1985.  Webbe’s father had been convicted of income tax evasion in Nevada in 1983 related to his interests in the Aladdin Casino in Las Vegas, which was then controlled by the Detroit Mafia. The Detroit and St. Louis Mafia families are related.

Given this evidence and other indictors, it is unclear why federal prosecutors in St. Louis did not now pursue the Stenger case under the Racketeer Influenced and Corrupt Organizations Act (RICO), which was crafted specifically to address such criminal enterprises. 

Hal Goldsmith, the prosecutor in the Stenger case, previously served as an Assistant U.S. attorney in East St. Louis in the 1990s, which was Berne’s territory. Goldsmith’s boss at that time was then-U.S. Attorney Charles Grace, who initiated wide-ranging probes of organized criminal enterprises during his tenure. When Berne died in 1996, he was a paid “security consultant” for Pipefitter’s Local 562, which Stoneking had also fingered as being connected to the Chicago Outfit. James O’Mara, the manager of Local 562, was the chairman of the St. Louis County Council at this time.