Mafia

The Casino Beat

More than 20 years ago the RFT dragged its feet reporting on the Michael Lazaroff scandal. Some people prefer to forget about it.

Mobbed Up: On Oct. 14, 1992, St. Louis Post-Dispatch reporter Phil Linsalata revealed that Station Casino founder Frank J. Fertitta Jr. helped skim millions from Vegas casinos for the Kansas City Mafia. When a scandal later broke over the casino company’s illegal activities in Missouri in 1999 and 2000, the Riverfront Times failed to report on Fertitta’s ties to organized crime. Then-RFT managing editor Roland Klose is now an editor at the Post-Dispatch. The following story appeared on the Media Mayhem blog, Feb. 8, 2004. C.D. Stelzer is a former RFT staff writer.

If I had all this juicy information on Station Casino’s founder Frank J. Fertitta Jr. why didn’t I write the story? Why pass such rich material to a fellow reporter? Was I altruistic or just lazy? Well, it’s kind of a long story.
At a Riverfront Times staff meeting in late 1999, reporters were asked to submit issues that they were interested in covering. Among those I chose was the casino beat.
I had a good source — anti-casino lobbyist Steve Taylor. When I was still freelancing for the RFT in the  early 1990s, Taylor had provided me with accurate information. During this time, he was an environmental activist opposed to the Times Beach dioxin incinerator. I wrote a few dozen stories on the Times Beach Superfund Cleanup. One caught the DNR, EPA and their contractors cooking the books on the stack emission tests. Exposing this fraud won me top honors for investigative reporting in 1997 from the Missouri Press Association. Taylor leaked me reams of data that pointed to the corrupt practices. I knew I could trust him from experience. In his new job for an outfit called Casino Watch, he was down in Jefferson City during the legislative sessions, keeping tabs on the then nascent gambling industry. This meant he could relay developments in a timely manner.

But hard-hitting, timely casino coverage didn’t appear to be exactly what the RFT was looking for under the New Times ownership. After all, Station Casino, the gambling company that was ultimately kicked out the state and fined $1 million, ran full-page ads in the RFT every week. But at the time, I was still naïve enough to believe advertisers didn’t hold sway over editorial judgments.

A week after we submitted our choices for beat coverage, editor Safir Ahmed announced the selections that he and managing editor Roland Klose had made. I didnt’ get the casino beat. Bruce Rushton got it. (When I later wrote about the proposed Lemay casino, I pitched that idea to my editors as a St. Louis County

Roland Klose, former RFT managing editor.

development issue.)

As a result, when I got a tip in December 1999 from attorney Joe Jacobson that Michael Lazaroff, Station’s lobbyist/lawyer, was about to be busted for illegally meeting with Volvo dealer and state gaming board chairman James Wolfson, I handed it over to my editors. Within days of receiving the tip from Jacobson, Lazaroff attempted suicide. Lazaroff was then a law partner at Thompson Coburn. His office was next to former U.S. Sen. Thomas Eagleton’s.]

This was a huge story and we had a jump on the Post-Dispatch. Being a good soldier and following the chain of command, I alerted my superiors, who assigned Rushton to cover the story.  But I was still curious about the case. So I did some digging on my own. I soon discovered (and it wasn’t very difficult) that Station’s founder had past ties with the Mafia, Because of his mob ties he had been forced to put Station’s Missouri gaming license in his son’s name. Suddenly, a huge story grew much, much larger. Dutifully, I also handed over this information to Rushton, Ahmed and Klose.

What happened? Nothing.

Former RFT staffer Bruce Rushton.

The biggest story I ever uncovered in my career and these three sat on it for a full 11 months. When Rushton’s cover story finally did see the light of day on Nov. 1, 2000, it didn’t even mention Frank J. Fertitta Jr. It barely mentioned his son. Of course, there was no reference to organized crime. Leaving out Fertitta was like writing a story about the Anheuser-Busch brewery and leaving out the name of August Busch III. Even if Feritta’s ties to the Mafia weren’t deemed important, Rushton could have still dropped a short paragraph or a sentence into the body of the story. He didn’t. His story was over 5,000 words long. So the omission wasn’t because he didn’t have enough space. And the omission wasn’t because he was ignorant. So how many reasons for this “oversight” are left other than those two?

Believe it or not, an earlier story by Rushton on Lazaroff didn’t even bother to mention Station Casino at all. Instead, it focused exclusively on illegal campaign contributions made by Lazaroff and his law partners. This story ran on July 12, 2000. Let me make this clear: Rushton — the casino beat reporter — wrote about a crooked casino lobbyist’s illegal activities but failed to even mention anything about Lazaroff’s largest client — Station Casino. By this point, Rushton already had been sitting on the story for eight months.

But it gets worse. After he wrote the less than definitive Lazaroff/Station’s story in the summer of 2000, the RFT sent him to Atlanta to cover a stock car race, as a part of a fluffy sports profile on some amateur driver.

Tipster Joe Jacobson.

I had been connected to the paper for a decade by this point and I never saw anything like that before. The RFT covers local issues mainly and only does limited sports coverage. It was unprecedented to send a reporter half way across the country to cover a minor sporting event. Unlike the Lazaroff/Station’s story, Rushton cranked out the race car story in a couple weeks. (Quantity not quality counts most at the RFT. Bruce had to keep up with his quota.) Then he went on vacation in August for two weeks just as the Lazaroff hearings were set to start.

His cover story wouldn’t run until November.

I remember the day he finally wrapped up the Lazaroff cover story. His spirits were buoyed. It was like a weight had been lifted off his shoulders. I saw him walking down the hall past my office. He was heading for the fire escape for a smoke break, as was his usual custom. But this time he hadn’t waited until he got outside to light up, and Bruce wasn’t smoking tobacco that day.

He bogarted the joint.

After prosecuting the mob trial in Kansas City for the Justice Department, David Helfrey moved across the state and set up shop as a white-collar criminal defense attorney.

Who’s Hiding What?

Don’t get distracted by the shell game, folks. Nobody hid the fact that Station Casino founder Frank J. Fertitta Jr. was an associate of organized crime from Riverfront Times reporter Bruce Rushton. The information was packaged neatly and placed in his hands — by me. I gave the same information to editor Safir Ahmed and managing editor Roland Klose, too.

But in the opus that Rushton wrote about attorney and gambling lobbyist Michael Lazaroff in the late fall of 2000, Rushton failed, for unknown reasons, to mention anything about Fertitta’s sordid past.

Flipper: Federal prosecutor-turned criminal-defense attorney David B.B. Helfrey.

He could have asked David Helfrey, Station’s outside counsel, about Fertitta, of course, because Rushton interviewed him. But apparently he chose not to ask any tough questions of Helfrey, who prior to becoming a criminal defense attorney, was a federal prosecutor in Kansas City. In that capacity, Helfrey was in a position to know about Fertitta’s organized crime background because FBI wiretap transcripts allude to Fertitta being involved in the Las Vegas skimming operation carried out by Carl Thomas, a casino executive who was recorded having conversations with Kansas City Mafia bosses Nick and Carl Civella among others in 1979. During the conversations, Thomas mentions Fertitta repeatedly as being a part of his crew, a crew that bilked the casinos out of millions and deposited the money into the hands of the Mafia families in Kansas City, Milwaukee, Cleveland and Chicago. The case became the basis for Nicholas Pileggi’s 1995 non-fiction bestseller Casino: Love and Honor in Las Vegas, which director Martin Scorcese made into a blockbuster movie, starring Robert DeNiro, Sharon Stone and Joe Pesci.

Fertitta’s tainted background is the reason that he chose to put Station’s Missouri license in his son’s name — Frank J. Fertitta III. Rushton knew this because I gave him a copy of a story by former St. Louis Post-Dispatch reporter Phil Linsalata from 1992, when Station’s was applying for the state license for the St. Charles casino. [In the 1992 story, Linsalata duly reported Fertitta Jr.’s Mafia ties.

Michael Lazaroff

Rushton also knew that Michael Lazaroff feared for his life and was given state police protection during and after the Missouri Gaming Commission hearings that were held in Jefferson City in the summer of 2000. He knew this because he was told as much by Steve Taylor, an anti-casino lobbyist who attended the hearings. I later confirmed Taylor’s recollection through Missouri Assistant Attorney Mike Bradley.

Why would Lazaroff be in fear of his life? Because another witness had died when asked to testify by the gaming board. Carl Thomas — the person who had direct knowledge of Fertitta’s organized crime connections — had been asked in 1993 to provide background information on his former employee to the Missouri Gaming Commission. Thomas traveled to Las Vegas from his home in Oregon to confer with Station’s executives in Las Vegas about the upcoming testimony. But he never made it to Missouri to testify. After his Vegas visit, Thomas returned to Oregon and died in a one-car accident.

Lazaroff’s own testimony refers to “Carl Thomas”, and the “Fremont” casino and “Argent” corporation, all of which were part of the Kansas City Mafia’s skim operation in Las Vegas in the 1970s. Rushton had a transcript of the Missouri Gaming Commission hearings in which Lazaroff made these references. He could have quoted directly from Lazaroff’s testimony. Instead, he chose to portray him as a clown.

At the hearings, retired FBI agent and former Gaming Commissioner William Quinn testified that he had

Frank J. Fertitta Jr., who died in 2006, skimmed casino cash for the Civella crime family of Kansas City.

talked to Helfrey, Station’s lawyer, on three occasions. Quinn already knew Helfrey because they had worked on the Operation Strawman cases together. Strawman was the FBI operation that resulted in the conviction of 19 Mafia members in the Midwest, including the Civella brothers of Kansas City, for skimming from the Hacienda, Fremont, Stardust and Tropicana casinos in Las Vegas.

The transcript of the Gaming Commission hearings, show that Quinn testified that on one occasion Helfrey asked him over the phone to meet with him and a Station’s representative. Quinn’s testimony shows that Helfrey had been retained after the Lazaroff scandal broke. In other words, Helfrey was already representing Station in a legal capacity. In short, Helfrey’s and Lazaroff’s legal services to Station Casino overlapped. They were both working for the same company at the same time. Moreover, if Helfrey and a Station’s representative had met with Quinn, it would have been comparable to Lazaroff’s violations in meeting with Gaming Commission chairman Wolfson. Such a meeting would have been in violation of the Commission’s “ex parte” rule, which was set up in 1994 to make sure that state gaming commissioners did not fall under the influence of the casinos that they were supposed to be regulating.
Quinn said he was concerned about his former colleague’s s suggestion and he refused to meet with Helfrey and the Station’s representative. Again, Rushton had the transcript of Quinn’s testimony. But instead of citing Quinn, he relied heavily on Helfey’s version of events in telling the story.

Nobody hid this information from Bruce Rushton. But he did manage to hide it from the public.

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.

Phoenix Rising

donbolles

Thirty-eight years after a car bomb killed journalist Don Bolles, doubts remain as to who was responsible for the murder

 BY C.D. STELZER

first published in the Riverfront Times (St. Louis), June 11, 1997

By 11:30 a.m., as Don Bolles walked across the parking lot of the Clarendon Hotel in Phoenix, the temperature had already begun to climb to a high of 101 degrees that Tuesday — June 2, 1976.

Bolles, who had lived in the desert city for 14 years, was also accustomed to another kind of heat. As a journalist for the Arizona Republic , his reporting on local corruption had won him not only accolades but death threats. When he began backing his Datsun out of its parking space, six sticks of dynamite exploded directly below the driver’s seat. Bolles died 11 days later.

Witnesses at the bomb scene told police Bolles had remained conscious long enough to say: “They finally got me. The Mafia. Emprise. Find John (Harvey) Adamson.”

Ultimately, Adamson confessed to the murder. The former race dog breeder admitted luring the 47-year-old Bolles to the hotel under a pretense and then canceling the meeting. But the other two parties implicated by Bolles’ dying words were never thoroughly investigated by the Phoenix police even though the reporter was known to have provided congressional testimony in 1972 linking organized crime to Emprise, the Buffalo, N.Y. sports concessions conglomerate.

After more than 20 years, doubts still remain as to who instigated Bolles’ assassination. There is one certainty: the murder created a patron saint for a generation of otherwise iconoclastic investigative reporters. Martyrdom is not, however, the most lasting legacy that Bolles left. His work remains a guide into the unchartered underworld, a compass pointing beyond Phoenix to other cities, including St. Louis and Detroit.

Following Bolles’ death, more than 30 journalists from the then-newly formed Investigative Reporters and Editors (IRE) group arrived in Phoenix to carry out their late colleague’s work. The IRE will reconvene in Phoenix this week for the organization’s 20th annual conference. Among those expected to attend is retired Pulitzer-prize-winning reporter Bob Greene of Newsday , leader of the 1976 IRE team .

On their first visit, Greene and the other reporters spent a total of six months focusing their attention on corruption in Arizona. Their cumulative work resulted in a 23-part series — 100,000 words in length — which began running in newspapers nationwide on March 13, 1977.

“I still feel very proud to have been part of it, because I don’t think it is something that will ever be done again. says Jerry Uhrammer, who took a leave from the Eugene (Ore.) Guardian-Register to participate in the effort. “It was unique. We were all working with a common purpose,” says the recently retired 64-year-old reporter.

Members of the Arizona Project, as IRE dubbed it, agreed not to investigate the Bolles murder itself in deference to the ongoing police inquiry. Instead, the team chose to expose the kinds of corruption that garnered Bolles’ interest before his death. The laundry list included: land fraud, gambling, extortion, drug trafficking, prostitution and the exploitation of illegal aliens.

From the beginning, the project had critics. The New York Times and Washington Post opposed the idea, citing among other things a hesitancy to engage in “pool journalism.” Sen. Barry Goldwater, a target of the IRE team, likened the reporters to outside agitators and refused to be interviewed. Inside IRE itself, dissension centered on the team’s cooperative relationship with law enforcement agencies, including trading information with the FBI and the police.

Don Devereux, another Arizona Project reporter, feels the IRE team may have trusted the authorities too much. “We accepted very uncritically their scenario. In retrospect, we were very naive to get lead around. It really isn’t something that we should be running around congratulating ourselves about,” says Devereux of the IRE investigation.

Devereux, who still lives in Phoenix, joined the IRE team as a stringer for an alternative weekly in New Mexico. After the Arizona Project folded, he spent most of the next decade digging deeper into the Bolles case as a reporter for the Scottsdale (Ariz.) Progress. By 1980, his reporting helped spur the Arizona Supreme Court to reverse the original convictions of two of the men found guilty of the murder. In a subsequent retrial, one defendant was acquitted and the other sentenced again.

“My feeling is that both of those men were patsies in this case,” says the 63-year-old Devereux . “One guy is still in prison for the Bolles’ homicide, who I believed was framed. It perturbs some of us out here that that kind of miscarriage of justice can continue.

“The biggest disservice we did to Bolles was not paying more attention to him,” says Devereux. “His dying words were words we should have glommed onto a little more seriously, because when he was lying on the pavement he said: `Adamson, Emprise, Mafia. … Emprise was almost Bolles’ white whale. He was obsessed by them. …”

Emprise was, indeed, a big fish, with 162 subsidiaries in the United States and abroad, employing more than 70,000 people. Formed in 1915 by the Jacobs brothers of Buffalo, the concessions firm had expanded from selling peanuts at baseball games to an ownership role in professional sports. Some of Emprise’s partners in these far-flung ventures had long criminal records. In Detroit, for example, Emprise held a stake in the Hazel Park race track with known Mafia figures.

Bolles’ first brush with the Buffalo-based corporation came in 1969, after a group of independent Arizona race-dog breeders filed suit against Funk’s Greyhound Racing Circuit, alleging that the track operators were trying to put them out of business. The Funk family shared ownership in Arizona’s six dog tracks with Emprise and were indebted to their out-of-town partner.

Bolles found the Funks were influencing the Arizona Racing Commission. After exposing this in a series of stories, three racing commissioners were forced to resign. The Funks hired a private investigator to tap Bolles’ telephone, and obtain other confidential information. Both sides filed law suits: the Funks suing the Arizona Republic and Bolles for libel, and Bolles suing them for invasion of privacy. Despite the litigation, Bolles continued to speak out.

By the time he testified before the House Select Committee on Crime on May 16,1972, Bolles had been researching Emprise for three years. Asked by a congressman what he had discovered, Bolles answered:”We found there was a continual association with organized crime figures over a 35 year period.”

In late April 1972. only a few weeks before Bolles’ congressional appearance, a federal jury in Los Angeles had convicted Emprise and fined it $10,000 for concealing the Mafia’s ownership of the Frontier Hotel and Casino in Las Vegas. Mafia figures convicted along with the concessions firm included the late Anthony Giordano of St. Louis, and Anthony J. Zerilli of Detroit.

Although the case dates back a quarter of a century, the U.S. Attorney’s office in Detroit last year charged Zerilli and other surviving Detroit mobsters with a multi-count racketeering indictment that includes their illegal ownership of the Frontier and other casinos in Las Vegas.

The 1972 Emprise conviction led several states to initiate their own inquiries. In Illinois, the racing board subpoenaed financial records of Sportservice Inc., an Emprise subsidiary that operated concessions at Cahokia Downs race track. In Missouri, the state liquor-control supervisor examined Sportservice’s operations in St. Louis and Kansas City. But Emprise attorneys successfully defended the company against these charges except in Oregon, where the firm lost its liquor license.

Following its federal conviction, Emprise Corp. dissolved, and its many subsidiaries were placed under Delaware North Cos. Inc. The paper transfer, however, kept the assets of the privately-held corporation in the hands of Jeremy Jacobs, a son of one of the founders. During his reign, Jacobs has guarded the company’s reputation by suing detractors and hiring a former FBI agent as security director. The unrelenting litigious assault against former Rep. Sam Steiger of Arizona, the most outspoken of Emprise’s critics, eventually resulted in the congressman publicly expressing confidence in the concessions firm.

Delaware North continues to dominate sports concessions in several major league cities and owns numerous parimutuel horse and dog racing tracks. In Bolles’ home state, the company currently operates dog racing tracks under the name of Arizona Greyhound Racing Inc. It also holds the concession rights for the Phoenix Suns basketball team through Arizona Sportservice Inc. The corporation’s other interests range from ownership of the Boston Bruins hockey team to a lucrative concessions contract with the National Parks Service.

In St. Louis, Sportservice still holds the concessions contract at Busch Memorial Stadium, home of the baseball Cardinals. During this year’s Missouri legislative session, the Cardinals owners lobbied successfully for the creation of a sports authority that will examine the possibility of allowing the baseball club and Sportservice to divert millions of dollars in taxes into a special fund to pay for stadium upkeep. The sports authority is also expected to look into the potential for using the same tax abatement method as a financing mechanism for building a new ballpark sometime in the future.

This is not the first time Sportservice’s name has been mentioned in regard to the stadium or other professional sports facilities in St. Louis. The week before the Crime Committee heard Bolles’ testimony in 1972, it listened to Capt. Earl T. Halveland, then the commander of the intelligence unit of the St. Louis Police Department. Halveland told how the Emprise subsidiary originally helped finance Busch Memorial Stadium.

“Sportservice Inc. purchased the concession equipment that was installed in the stadium. This was reported to be a million dollars worth of equipment for the concession stands,” said Halveland. ” (In return,) they (Sportservice) received a 30-year contract for the concessions and guaranteed … Civic Center Redevelopment Corp. — which developed the stadium project — $400,000 (per year).” It doesn’t take a fiduciary to ascertain that the 30-year, $12 million guarantee provided a footing for the stadium’s financial structure.

One beneficiary of the Sportservice contract with Civic Center was Giordano, the St. Louis Mafia boss, who owned Automatic Cigarette Sales Co. Sportservice and its sister company, Missouri Sportservice, granted Automatic Cigarette Sales the rights to place cigarette vending machines not only at the stadium but at the municipally-owned Kiel Auditorium and the Arena, then home of the St. Louis Blues hockey team.

In 1967, Emprise lent Sid Salomon Jr., then the owner of the Arena and the Blues, $1.5 million, after Sportservice landed a 10-year concessions contract at the facility. When that contract expired, Sportservice played a hand in the complicated 1977 sale of the Arena to Ralston Purina Co., which had bought the Blues earlier that year. As a part of the $8.8 million Arena deal, Ralston paid off the mortgage holder and a partnership that included Sportservice. After Ralston acquired the Arena, it leased the building back to Dome Associates Inc., another company linked to the Buffalo-based sports concessions firm.

By 1977, Bolles was dead, but Sportservice’s liaisons in St. Louis and elsewhere still seemed to mimic the patterns he explained to the Crime Committee five years earlier. Bolles then recounted how he had traveled around the country rummaging through newspaper morgues in an effort to understand the scope of the Emprise empire. He described how Emprise loans locked professional sports franchises into unbreakable long-term contracts. He outlined how the Cleveland mob borrowed money from Sportservice dating back to 1937. He explained how Moe Dalitz, a leader of the Cleveland crime organization, reciprocated, lending Emprise $250,000 in 1958.

Bolles cautioned “that Emprise has … had a gradual shift from a concession to an ownership position in the tracks and elsewhere through the use of high-interest loans. … If they are in ownership positions, they … are in a position to effect the outcome of the contests. I just feel that it is absolutely essential, with millions of dollars changing hands on private bets and otherwise on every major sports contest in this nation, that we be absolutely assured of the fact that we have clean, honest sports.”

The reporter’s caveat dovetailed with Halveland’s testimony. The intelligence unit commander told the panel that St. Louis bookmakers — who were close associates of Giordano — received their daily sports betting line from Las Vegas “at one location formerly owned by Missouri Sportservice Inc.”

More important perhaps is Halveland’s theory on how Giordano bankrolled his own move into the Las Vegas gambling scene:

“A substantial sum of money was received by Giordano … in 1965 through the sale of property at 508 Market St., St. Louis, Mo.,” said Halveland. “This building formerly housed a B-girl-type juice joint tavern. This property was sold to the Civic Center Redevelopment Corp., which subsequently constructed the St. Louis baseball stadium in this area. … He (Giordano) is then known to have made visits to Las Vegas, Nev., and the Frontier Hotel incident began developing just after this time.”

Halveland’s testimony — which went virtually unreported at the time — indicates that an illegal St. Louis gambling wire service operated at a site previously owned by an Emprise subsidiary. In addition, the St. Louis police officer testified that Giordano may have received some of the money he secretly invested in the Frontier by selling property to Civic Center, the stadium developer. Emprise, who held the concessions contract with the stadium, was convicted of shielding Giordano’s and the Detroit Mafia’s joint ownership of the casino.

The St. Louis Mafia leader and heroin trafficker known used legitimate businessmen to further his casino interests. Halveland told the Crime Committee that “Giordano secured a loan from a St. Louis area restaurant operator.”

Actually, Frank Cusumano, the St. Louis restauranteur, made three unsecured loans to Giordano totaling $50,000 between 1964 and 1968, according to Cusumano’s testimony at the 1972 federal trial in Los Angeles. He wasn’t the only St. Louisan that provided backing for Giordano, however.

Real estate tycoon Anthony Sansone Jr. testified he had withdrawn a $150,000 investment in the Frontier, after being notified he would be required to apply for a Nevada gaming license. Federal prosecutors alleged Sansone, a business partner of former St. Louis Mayor Alfonso J. Cervantes, traveled to Las Vegas with Giordano to make the investment. Sansone is the son-in-law of the late James Michaels Sr., then the Syrian crime boss of St. Louis’ and a close ally of Giordano.

That Emprise was convicted with Mafiosa from both St. Louis and Detroit is probably not a coincidence. Three of Giordano’s sisters married Detroit Mafia members, according to Halveland’s testimony. But organized crime ties linking the two cities with Arizona date back even further.

During Prohibition, Peter and Thomas (Yonnie) Licavoli, Joseph Bommarito and other St. Louis gangsters migrated to Detroit to act as gunmen for the Purple Gang, a group of notorious Jewish bootleggers. Later, Peter Licavoli moved to Tucson in 1944 at the request of mobsters Bugsy Siegel and Moe Dalitz. At the time of Bolles’ death, Peter Licavoli Sr. shared power in Arizona with Joe Bonanno, the exiled boss of one of New York’s ruling Mafia families.

This is the milieu Bolles inhabited by the mid-1970s.

Profits from illicit alcohol sales during Prohibition helped establish a new multi-ethnic criminal cartel in the U.S. After repeal in 1933, the same crime groups began financing the nascent casino industry in Las Vegas, and dominating other rackets throughout the Southwest, often with the paid cooperation of local politicians and law enforcement authorities.

Beginning in 1946, Licavoli, the Arizona mob boss, operated an illegal gambling wire service with Kemper Marley Sr., the wealthiest liquor distributor in the state. Later, Marley’s United Liquor Co. supplied Emprise dog tracks with 10 percent of their alcoholic beverages. During the 1974 Arizona gubernatorial race, Marley was the biggest contributor to Gov. Raul Castro’s campaign. After the election, the Castro administration appointed Marley to the state racing commission, but he was forced to resign because of adverse publicity from stories written by Bolles.

The Phoenix police theorized that Marley wanting revenge enlisted the help of local contractor Max Dunlap. Dunlap then allegedly hired Adamson to carry out the bombing. Adamson claimed that plumber James Robison assisted him.

Over the years, Dunlap and Robison have maintained their innocence. Dunlap remains incarcerated. Although, Robison gained acquittal in a retrial, he is still awaiting release from prison on a related charge. Meanwhile, the state paroled Adamson last year, and he disappeared into the federal witness protection program.

he Phoenix police never even arrested Marley, who died in 1990.
Devereux, the Scottsdale Progress reporter who covered the case, believes Adamson falsely implicated Dunlap and Robison as a part of a plea bargain to lessen his own sentence. The police hastily granted Adamson associate Neal Roberts, an attorney, immunity in the case for his cooperation. Roberts promulgated the theory that Marley, a friend of Dunlap’s, was behind the murder. During the trial, Dunlap testified that he had unwittingly delivered $5,800 to Adamson at the request of Roberts. The Arizona Supreme Court overturned the original trial court’s convictions because defense attorneys weren’t allowed to cross-exam Adamson, denying the defendants their constitutional right to confront their accuser.

In short, the police investigation and the state’s prosecution both missed the mark. “I don’t think it was incompetence,” says Devereux. “I think this was a deliberately misdirected investigation and prosecution. And I think the press … bought into it. Not out of any corruption on their part, just out of naivete.” The state’s case was handled by the office of then Arizona Attorney General Bruce Babbitt, who would later ascend to the governorship and is now the Secretary of the Interior in the Clinton administration.

“We made assumptions that Bruce Babbitt and the leadership of the Phoenix police department were in fact honest people,” says Devereux. “I think we were mistaken.”

Devereux places the blame for the murder on the late Bradley Funk, a close friend of Roberts, the immunized attorney. Funk was one of the local partners in Emprise’s Arizona dog track operations. “Bolles was using Bradley Funk’s ex-wife as one of his key information sources on the dog tracks,” says Devereux. “As a consequence of the divorce from Bradley, she was going to court every two years to adjust child support payments. … Bolles would give her lists of things that he wanted to get in the ways of documents, and she would add them to her (legal) motions. … I think Bradley got tired of his ex-wife and Bolles playing this game with him.”

No one really knows for sure what transpired excect perhaps Adamson, the only person who ever admitted having anything to do with Bolles’ murder. The reporter’s confessed killer lives somewhere now under a new identity with federal protection. More than likely he is far from dry winds that descend from the Superstition Mountains across the parking lots of Phoenix and all those glinting windshields and scorching vinyl seats.