St. Louis Mafia

Killer Reporting

J.J. Maloney traded a knife for a pen, swapping a life of crime for a career in journalism.

copyright 2021 by C.D. Stelzer

An earlier version of this story appeared in the St. Louis Journalism review in 2008 and Focus/midwest magazine in 2010.

He chain-smoked. The brand varied with the decade: L&Ms or, later, Marlboro Lights. In prison he preferred Camels, when he could afford them. Otherwise, he rolled his own from pouches of Ozark-brand tobacco, manufactured and distributed for free at the Missouri Penitentiary. It’s the smoking that eventually killed him. By then, most of his running buddies from the joint were long dead, victims, for the most part, of their own malevolent ways.

That J.J. Maloney survived is remarkable. But his rise from convicted murderer to award-winning investigative reporter for the Kansas City Star is a feat unparalleled in the annals of American journalism. Maloney joined the newspaper’s staff after being paroled in 1972. At the time of his release, he had served 13 years of a life sentence for killing a South St. Louis confectionery owner during an attempted robbery. Maloney was 19 years old when he committed the crime.

Kevin Horrigan, a cub reporter at the Star in 1973, remembers Maloney as an affable colleague but one who stood apart. “There was just something there, and it didn’t fit in with everybody else,” says Horrigan, now an editorial writer for the St. Louis Post-Dispatch. “It was like he was from another planet. He was one of those guys who was constantly fidgeting, or his knee was pounding up and down. Given where he’d come from, it’s easy to figure out why.”

Maloney’s prison record listed him as 5-foot-9 and 145 pounds. He was not from another planet, but he was from another time. When he entered prison, Dwight Eisenhower was president; when he came out, the Watergate burglary had been committed.

Maloney owed his freedom to Thorpe Menn, the Star’s literary editor, who had supported his parole and helped him get his job at the newspaper. Maloney had garnered the editor’s attention in 1961 through a poem he had submitted to the Star, which then printed verse on its editorial page each day. Maloney’s formal education had ended in the ninth grade, but Menn recognized raw talent when he saw it. He rejected Maloney’s poem but continued to correspond, providing him with professional advice and personal guidance. Maloney thought of Menn as the father he never had.

The only thing his real father ever gave him was his name. Joseph John Maloney Sr., a shoemaker by trade, walked out of his son’s life in 1943, when he was 3 years old. A year after his parents divorced, a hit-and-run driver killed his brother, Bobby. After his mother suffered a nervous breakdown, the court remanded him to the custody of the St. Joseph’s Catholic home for boys in St. Louis, where he stayed for nearly a year.

By the time Maloney returned home, his mother had remarried. His stepfather, Julius “Dutch” Gruender, an ex-con, became Maloney’s less-than-sterling guardian. Gruender, a housepainter, had a string of arrests and convictions for car theft and burglary dating back to 1926. At the time of his marriage to Maloney’s mother, he had only been out of the Missouri Penitentiary for a year.

While in prison, Gruender met and befriended Elmer “Dutch” Dowling and Isidore Londe, lieutenants of East St. Louis mob boss Frank “Buster” Wortman. Gruender’s association with these gangsters continued long after his parole. The housepainter soon introduced his young stepson to the underworld, taking Maloney with him on occasional visits to the Paddock Lounge, Wortman’s bar in East St. Louis, which was a hangout for organized crime figures. Maloney also tagged along when his stepfather drove to Jefferson City to visit a friend still incarcerated at the penitentiary. Though he avoided further trouble with the law, Gruender acted as a courier for Wortman.

In 1952 the family moved to a farm in New Florence, Mo., a small town 65 miles west of St. Louis. Gruender used carpentry skills acquired in prison to rehab the old farmhouse, and he showered Maloney with gifts, including a motorcycle and a shotgun. Beneath the outward generosity, however, Gruender was an angry and hardened man who drank heavily and sometimes abused his wife and stepson.

The Road to Perdition

On Dec. 19, 1945, at the age of 14, Maloney ran away from home for the first time.
“I was prepared,” Maloney recalled later. “ I had another change of clothes, a pound of fudge, a loaf of bread, 14 silver dollars, and my old man’s .38 was buried in the bottom of the sack.” Despite his preparations, Maloney was quickly apprehended after stealing a car and spent the night in the Montgomery County Jail. The judge put him on probation.

The next year, Maloney ran away again. This time he made it as far as Hannibal before crashing a stolen car. The second incident earned him his first stint in the reformatory at Boonville.

After his fourth escape from Boonville, juvenile authorities transferred him to Algoa, the state’s intermediate reformatory, where his behavior worsened. Over the next year and a half, Maloney was put in solitary confinement dozens of times for attempting to escape, instigating a riot and other infractions. During a short parole in 1957, Maloney was arrested in Kansas City on suspicion of burglary and carrying a concealed weapon.

Despite his abominable record, the state had little choice but to parole him in January 1959, a few months after he turned 18. Maloney then married a former inmate of the girls’ reformatory at Chillicothe, and they moved to Alabama—but the marriage fell apart. After his return to Missouri, his parole officer committed Maloney to State Hospital No. 1 in Fulton for psychiatric observation. While confined at the hospital, Maloney met and fell in love with a fellow patient, 16-year-old Edith Rhodes, who had been transferred from Chillicothe.

“Only in an institution can love hit that hard and that fast,” Maloney wrote. “Edith was a strangely magnetic girl. … She seemed fragile and shy, yet she wasn’t. She was 16 and insisted she would commit suicide before she was 21, because she had a fear of not being beautiful. …”

After six weeks of observation at Fulton, Maloney was allowed by the parole board to enlist in the Army. He was assigned to the Army Signal Corps School at Fort Gordon, Ga. His military career lasted just three months: He went AWOL on Nov. 3, 1959.

While absent without leave, Maloney worked briefly for a carnival in Florida before returning to Missouri. On the evening of Dec. 11, he picked up Rhodes in Columbia at an apartment she was sharing with another girl. The two returned to St. Louis early the next morning on a Greyhound bus. They registered at the St. Francis Hotel, at Sixth and Chestnut, under the name Mr. and Mrs. John Ducharme of Jacksonville, Fla. That evening Maloney, armed with a hunting knife, robbed the clerk at another downtown hotel.

The couple then took a cab to the Soulard neighborhood in South St. Louis. Shortly before 8 p.m., Maloney dropped Rhodes off at the apartment of an acquaintance, then walked to a nearby confectionery, located at 1100 Lami Ave. Entering the store, he pulled a hunting knife and demanded money from Joseph F. Thiemann, the 74-year-old store owner.

“When he made the demand for money, he and Thiemann began struggling,” according to the confession Maloney later gave St. Louis police. After Maloney punched Thiemann in the face several times, the old man agreed to hand over the cash. “Thiemann then reached into his back pocket as if to get the money and came out with a revolver and fired one shot, which apparently went over his [Maloney’s] head.” Maloney reacted by stabbing the storeowner in the stomach. In the ensuing fight, the pistol fired a second time, striking Thiemann in the leg. Maloney then wrested the gun from his victim and fled. Thiemann died as a result of the wounds he sustained in the fracas.

Less than two months later, Maloney pleaded guilty to murder and armed robbery, and Circuit Judge James F. Nangle sentenced him to four concurrent life sentences. He would serve the next 13 years at the Missouri Penitentiary, in Jefferson City—arguably the worst prison in the United States at the time.

Inside the Walls

“When I went to the Missouri Penitentiary at Jefferson City, in February 1960, there were 2,500 men inside ‘the walls,’” Maloney later told readers of the Kansas City Star. “The white convicts slept three to a cell (except for several hundred in one-man cells). The blacks slept as many as eight to a cell. “Stabbings and killings, robberies and rapes were common. Dope was easier to get in prison than it was on the streets. There were men in prison who were said to make more money each year from dope and gambling than the warden was paid. There were captains on the guard force who owed their souls to certain convicts.

“You never knew whom you might have trouble with. The reasons for murder and mayhem made little sense to anyone except the convicts. So hundreds of men carried a knife or had one they could get to one in an emergency.

“If you are young and good looking, you can count on being confronted again and again. If you have money, there will be people who want it. If you are helpless, there are people who will try to make a reputation at your expense. Or you may simply say the wrong thing to the wrong person.

“You never know for sure what is going to happen from day to day in prison. …”
A prison psychiatrist who evaluated Maloney shortly after his arrival characterized him as a “socially diffident individual … who seems to take a half-humorous rejection of the whole affair.” If Maloney’s initial demeanor seemed inappropriately aloof given the circumstances, it didn’t take long for his mood to turn into a malevolent rage.

On Aug. 26, 1961, Maloney’s girlfriend, Edith Rhodes, was murdered near Huzzah Creek in rural Crawford County, Mo. She had eloped from the state mental hospital in Fulton and gone on another crime spree, this time with a 22-year-old hoodlum from Flat River. David Moyer, who confessed to the slaying, first told authorities that the girl shot herself and he had fired a second shot to end her pain. A sheriff’s posse pursuing the fugitives heard the shots and found Moyer lying next to the body.

On hearing the bad news, Maloney vowed to kill Moyer and tried to escape. His prison record over the next few years is a litany of major conduct violation:. In addition to the failed escape attempt, the prison administration cited Maloney for stabbing another inmate, manufacturing zip guns, using stimulants and committing sodomy. As a result, he was put in solitary four times and sentenced to the “hole” another 18 or 20 times. Solitary confinement involved long-term segregation, whereas the hole was a short-term punishment, usually a 10-day stint, during which prisoners were deprived of cigarettes, bedding and sometimes clothing.

Freed by Verse

Maloney had reached his nadir. By any measure, he had to be considered beyond salvation, a lost cause. But his mother remained faithful: She never gave up. She corresponded. She visited. She sent money, clothing, food, stamps and other items. She also acted as Maloney’s liaison with the outside world.

Through her encouragement, elderly attorney Mable Hinkley began to correspond with Maloney. Hinkley, a former St. Louis Globe-Democrat Woman of the Year, was an early advocate of prison reform and used her social standing to influence decisions of the Missouri Department of Corrections. Maloney had been in solitary confinement for nearly four months after his escape attempt when Hinkley contacted him.

In her first letter, Hinkley advised Maloney to seek divine guidance, but she also offered him a more down-to-earth deal. “Your mother tells me that if you give your promise to do something, you keep your word,” Hinkley wrote. “Will you make a promise (and keep it) not to try and run away—to obey the rules of the prison and try to do whatever work is assigned to you? If you will make these promises, I will ask the warden to take you out of solitary confinement.”

She kept her end of the bargain. In June 1964, at Hinkley’s urging, Warden E.V. Nash released Maloney from solitary and assigned him to the newly formed prison art class.

Exposure to art ignited Maloney’s innate creative streak. Sam Reese, an older convict who had gained national recognition for his oil paintings and cartoons, served as his role model. Maloney’s own artwork took awards at state and county fairs and was exhibited at a gallery in Paris.

But Maloney became more devoted to writing as he matured.

“Joe, which is what his friends called him, and I shared a cell in C-Hall during 1965-66,” recalls former inmate Frank Driscoll. “We worked on the fifth floor of the prison hospital, which is to say the psych ward. … By the time we were cellies, Joe had straightened up his act and was staying out of trouble, working on his parole. That, of course, was back in the day, when a lifer could still aspire to being released on parole. He was always writing something—stories, critiques, opinion pieces and, yes, poetry.”

Maloney had no way of knowing the significance that his verse would ultimately play in redirecting his life.

“I did what all young poets do, I tried to write a nice little rhyming solution to all the problems of the universe,” he later wrote. “Having written it, my next problem was deciding where to send it. In those days the Kansas City Star printed a poem on the editorial page every day, so I mailed the poem to the Star. A few days later I received a letter from Thorpe Menn, literary editor of the Star, who rejected the poem but said he liked the last four lines. He encouraged me to keep working on the poem, and asked me to stay in touch with him. I was impressed that the literary editor of a famous newspaper would write to me. I was even more impressed that he did not ask why I was in prison, or for how long. He wrote to me as if I were just another person, another young writer.”

It was the beginning of a long-term relationship carried out by correspondence. Menn became his mentor, giving guidance and critiquing his poetry and prose. Maloney worked on his writing for as much as six hours every evening. Menn patiently waited until 1967 before publishing one of Maloney’s poems in the Star. By then, the prison-bound poet and writer had been published in numerous other venues, including Focus/Midwest, a St. Louis–based magazine founded by Charles Klotzer, publisher of the Saint Louis Journalism Review.

Maloney expanded his connections in the literary world, writing to such luminaries as R. Buckminster Fuller, John D. MacDonald, William Buckley and Lawrence Ferlinghetti. At Menn’s suggestion, he started writing book reviews for the Star. He also worked diligently to establish a national writers’ association for prisoners. Meanwhile, Menn had interested Random House in publishing a book of Maloney’s poetry. In late 1967, the parole board indicated the possibility of Maloney’s being released early the next year.

But as quickly as his cell door seemed to have started to creak open, the steel bars slammed shut again. Warden Nash committed suicide. His replacement, Harold R. Swenson, imposed extreme restrictions on all communications with editors and publishers to stop a book from being published by another prisoner, a notorious escapee.

As a result, Maloney’s letters to Menn started coming back undelivered. Moreover, correspondence regarding his book of poetry had to be routed through his mother. The delays in communications eventually killed his deal with Random House. Books sent to him for review were screened by the prison administration and sometimes rejected.
Instead of zip guns or knives, Maloney fought back with the law as his weapon.

He filed suit against the Department of Corrections, arguing that his constitutional rights under the First Amendment had been violated. His defiance dashed his hopes of gaining parole and put him at odds with the prison administration for the remainder of his sentence.

Five more years would elapse before Maloney finally made parole, during which time Menn continued to support and encourage his writing. The literary editor was with Maloney’s mother on Sept. 25, 1972, when Maloney walked out of prison for the last time. They drove to Kansas City together and toured the Star’s editorial offices. The next day, Maloney returned to the newsroom not as a guest but as an employee.

Natural-Born Reporter

In advance of his release, Tom Eblen, then the Star’s city editor, had written a letter to Maloney, offering him a three-month contract at a monthly salary of $550. Despite the low wages, the offer was priceless because it cinched his parole. Star reporter Harry Jones Jr. had hatched the idea of hiring him as a temporary “consultant” for an in-depth series of stories on prison systems in Missouri and Kansas. Menn then sold the proposal to Cruise Palmer, the executive editor.

Maloney’s good fortune was twofold: He had belatedly benefited from the prison-reform movement of the 1960s and also from the unique ownership structure of the Kansas City Star, then employee-owned. On his death, in 1915, the founder of the paper, William Rockhill Nelson, had willed the Star to his employees. That arrangement was still in place in 1972. This meant that senior editorial staffers such as Menn, who had accumulated large stock holdings in the company, could negotiate with management on a more even level.

Jones and Maloney collaborated for months on the prison project, sharing the reporting and writing duties. Their stories ran as a four-part series in April 1973.

“We visited every institution of correction for adults and juveniles in both Missouri and Kansas, plus Leavenworth and Marion in Illinois, which at the time was the Alcatraz of the [federal] system,” says Jones. … “He proved to be an invaluable ally. When we would go in together to interview somebody, a prisoner or the warden or the guards, we’d start off and they would be talking one way and the minute they found out about Joe—and what his background was—it was like administering truth serum. All of a sudden their stories would change. It was uncanny.”

In the first installment of the series, Maloney gave a lengthy first-person account of life inside the Walls in Jefferson City. Before his contract expired, the Star hired him as a full-time general-assignment reporter. The prison series later won the Silver Gavel Award from the American Bar Association.

Maloney excelled as a feature writer but eventually became better known as an investigative journalist covering a wide range of issues, including labor racketeering, white-collar crime, drug trafficking and mental health.

In 1975, Maloney and Jones teamed up again to cover the corruption and violence surrounding a power struggle among factions of the Kansas City Mafia. Competing mob interests were in the midst of fighting for control of the River Quay entertainment district.

The two reporters began knocking on doors, talking to area business owners. They also interviewed city and federal law-enforcement authorities and pumped confidential sources for information. By checking liquor-license applications, Maloney determined that mobsters or their relatives secretly owned several restaurants and bars in the River Quay.

Maloney frequented the mob hangouts at night to develop leads. On one occasion Jones accompanied him to the Three Little Pigs, an after-hours café that was a favorite of the Mafia. “All the hoods would congregate there, drinking coffee,” recalls Jones. “We just went in there one night to sit and watch. Talk about stares. I was glad to get out of there.” Before they departed, Jones overheard the bodyguard to Carl “Corky” Civella threaten to rape Maloney. If the remark bothered Maloney, he didn’t show it.

“He was kind of fearless,” says Jones. “I was impressed. He was a gutsy little guy. He had seen his share of bloodshed. It was curious, too, how they seemed to hate Joe more than me, although our names appeared together on stories. But the mob kind of looked at Joe as a turncoat. Having been a convict, they thought he should have respected their trade a little more than he did.”

In a sense, Maloney did respect their trade. He had learned about it from his mobbed-up stepfather. Maloney added to his underworld knowledge in prison, where he befriended fellow inmate John Paul Spica, a St. Louis Mafia soldier. More important, Maloney understood that the roots of the problem ran deep in the Kansas City political establishment and business community and that there was a kind of mass denial regarding corruption.

“In the mid-’70s, some Star editors were even reluctant to print the word ‘Mafia,’” Maloney later wrote. Maloney was also keenly aware that local law-enforcement officials were hesitant to use the M-word.

“This was the town of Tom Pendergast, one of the most powerful Mafia/machine bosses in U.S. history,” Maloney wrote. “Pendergast was long gone, but his machine was anchored in place. The mob continued to influence the police department, city hall, the county courthouse and the state legislature. … The Kansas City Mafia wielded considerable economic clout—controlling several banks [and] owning ten percent or more of the taverns and nightclubs in the city. …” Its far-flung empire stretched all the way to Las Vegas, where the KC mob oversaw the skimming of millions of dollars from casinos.

But back in Kansas City, a rift had developed among three branches of the local mob: the Cammisano, Spero and Bonadonna clans. Maloney sensed that the feud was about to erupt into open warfare.

At the same time, dissension was brewing in the newsroom. Maloney argued that the Star should immediately expose the Mafia’s infiltration of the River Quay. His editors opposed the idea. They preferred a more cautious approach, advising that the coverage be focused more indirectly on corruption inside the city’s liquor-control agency. Jones agreed with them.

“I remember telling him, ‘Joe, let’s just wait until they start killing each other,’” says Jones. “It didn’t take very long for that to happen. People started dying. People [were] shot and blown up.”

In July 1976, David Bonadonna, the father of Fred Bonadonna, owner of Poor Freddie’s restaurant in the River Quay, became the first victim. He was found shot to death and stuffed into the trunk of his car. Three River Quay nightclubs were soon torched or bombed, and the list of gangland hits rapidly grew. Over the next two years, eight more mob-related murders would go down before the violence subsided.

Because of their advance legwork, Maloney, Jones and staff reporters Bill Norton and Joe Henderson uncovered developments in the midst of the mayhem sometimes before federal and local law-enforcement authorities.
At one point Joe Cammisano called Maloney and said: “Mr. Maloney, I realize you have a job to do—but do you have to be so intense?”

After the Star ran a story implicating Cammisano’s brother William “Willie the Rat” Cammisano in the Bonadonna slaying, members of the two families demanded to rebut the allegation, which was based on an FBI affidavit. At a tape-recorded meeting held in the Star’s conference room, Fred Bonadonna refuted any possibility that Willie Cammisano had had anything to do with the death of his father. The Star published a verbatim transcript of his claims in its next edition.

“The next day I called Bonadonna,” Maloney recalled later. “I asked him if he’d read the story, and if it had helped him any. He said, ‘You’ve saved my life, for the time being, anyway.’”

Bonadonna was one of Maloney’s confidential sources. He had publicly refuted the Star’s story simply to keep from being killed. In subsequent tape-recorded telephone interviews with Maloney, Bonadonna said that the Mafia had also targeted him for execution. Bonadonna disappeared in 1978, presumably into the federal witness-protection program. The same year, Maloney’s byline disappeared from the pages of the Star when he quit the paper in a dispute over overtime pay. By then the Star had been bought by Capital Cities, a media chain with a history of poor labor relations. In the wake of the mob violence, the River Quay was all but abandoned, with only six liquor licenses remaining in the district, down from 28 a few years earlier.

Maloney ended up moving to the West Coast. He reported for the Orange County Register in 1980 and 1981. While at the Register, he covered a series of murders attributed to the “Freeway Killer,” a name of his invention. He also published two autobiographical crime novels. The first, I Speak for the Dead, is a fictionalized account of Kansas City’s mob war, drawn straight form his clip file. His second novel, The Chain, is based on his years behind bars, including his incarceration at the Missouri Penitentiary and the old St. Louis City Jail.

Maloney moved back to Kansas City, perhaps drawn by memories of his glory days. In later years he worked as a freelance writer and as an editor for the alternative press. He pitched various book proposals and collaborated on at least three different screenplay adaptations of his first novel, but none of the projects came to fruition. In the late 1990s, shortly before his death, he established a Web site, crimemagazine.com, which is maintained by his friend J. Patrick O’Connor, former owner of the New Times, a now-defunct alternative weekly in Kansas City.

“He had his demons,” says Mike Fancher, an editor who worked closely with Maloney, “but I know that for the time that he worked for the Star he did some absolutely amazing work that I don’t think any other journalist could have possibly done.”

C.D. Stelzer, a St. Louis-based freelance writer, is working on a biography of the late J.J. Maloney.

Cover Story

A deep dive into the 1978 House Committee on Assassinations’ conspiracy theory on the murder of the Rev. Martin Luther King Jr.

In 1978, Russell G. Byers was fingered as a suspect in a St. Louis Art Museum heist before becoming a witness before the House Select Committee on Assassination’s probe into the murder of the Rev. Martin Luther King.

BY C.D. STELZER
(first published in the Riverfront Times April 8, 1992)

In 1979, the House Select Committee on Assassinations (HSCA) concluded there was a St. Louis-based conspiracy to murder the Rev. Martin Luther King Jr. Evidence gathered by the HSCA has been sealed until 2027. James Earl Ray, the convicted murderer of King, claims the congressional investigation itself was a cover-up.

Ray pleaded guilty to the crime in 1969, but immediately recanted. There has never been a trial. He is now a prisoner at River Bend Penitentiary in Nashville, Tenn. In the preface to Ray’s book, “Who Killed Martin Luther King,” published in 1992, the Rev. Jesse Jackson demands a special prosecutor be named and the case reopened.

The following story centers on the HSCA’s St. Louis-based conspiracy theory and is comprised of information gleaned from Ray’s book, congressional testimony and newspaper accounts.

At 7:55 a.m. Nov. 8, 1979, produce man John Paul Spica said goodbye to his girlfriend Dina Bachelier for the last time. He walked out of the two family flat at 1115 Claytonia Terrace in Richmond Heights and stepped into his 1977 black Cadillac. When Spica touched the break pedal, he detonated five to eight sticks of dynamite. The explosion blew both of Spica’s legs off. The driver’s door of the vehicle landed 30 yards away.

Moments later, Wellston police officer Nick Sturghill, saw a bearded white male in a yellow pickup truck speeding away. Spica, who had a speech impediment, mumbled a few unintelligible words to Sturghill before he died.

Spica’s violent death a year after his closed-door testimony before the House Select Committee on Assassinations (HSCA) has long been attributed to a war between competing organized crime elements. for the control of a St. But Spica served time in Missouri Penitentiary with James Earl Ray, and was also the brother-in-law of Russell G. Byers, the committee’s star witness, who testified that there was a St. Louis-based conspiracy to kill the civil rights leader. The HSCA final report concluded that Byers’ allegations were credible.

The HSCA findings suggest that Ray, the convicted assassin, did not act alone, but its findings raise more questions than answers. The doubt begin with the HSCA’s chief witness and Spica’s brother-in law. That’s because in 1978 Byers was the suspected mastermind of a St. Louis Art Museum burglary. He was arrested but never charged with the crime.

Sometime after his arrest, the FBI in St. Louis provided HSCA investigators with Byers’ name after a misfiled 1974 report surfaced, which stated that, according to a confidential informant, Byers had boasted of receiving an offer to kill King.

In 1978, Byers told the HSCA that the offer came from two prominent deceased St. Louisans: former stockbroker John R. Kauffmann and patent lawyer John H. Sutherland, who founded “whites rights” groups locally.

Spica, Byers’ brother-in-law, was a convicted murder contractor himself. Spica had served 10 years of a life sentence for negotiating the 1962 killing of John T. Myszak, a North St. Louis County realtor. Upon parole, Spica opened the Corner Produce, a vegetable stand at Shaw and Vandevanter, which may have been an organized crime front. Spica was known to have ties to the late Anthony Giordano, leader of the St. Louis mafia.

Police believe Spica’s slaying, and subsequent car bombings during the early 80s, began as a power struggle within then-mob-dominated Laborers’ Union Local 42. In a 1987 federal trial here, Raymond H. Flynn, the local’s business manager, was implicated in Spica’s bombing and found guilty of multiple racketeering and conspiracy charges.

But Spica had other interesting associations besides his brother-in law and the mafia: While in a Missouri prison, Spica shared the same cell block with James Earl Ray.

In 1978, after being subpoenaed and granted immunity by the HSCA, Byers publicly testified that in late 1966 or early 1967 he was approached by Kauffmann, a retired stockbroker and former aircraft company owner active in St. Louis County Democratic politics. Byers had been a friend of the elder Kauffmann’s late brother Gil, an assistant St. Louis County coroner. According to Byers’ account, Kauffmann introduced him to a neighbor, John H. Sutherland, an avowed racist who made the $50,000 contract offer to kill King.

At this time, Kauffmann lived in Jefferson County and operated the Bluff Acres Motel on Highway 67 in Barnhart. Byers claimed the motel was actually a front for illegal activities and told the committee he used the premises for his stolen car operations. When asked by the committee whether he had informed Spica of the contract offer to kill King, Byers said he had not, but said that his brother-in-law, who was in state prison at the time, may have learned of the offer through other sources. Also in the same prison at the same time, was James Earl Ray, who was serving a sentence for the robbery of a Kroger’s supermarket on Ohio Avenue in South St. Louis. Both he and Spica, for a brief period, worked in the prison hospital together. Newspaper accounts cite rumors that Spica and Ray were dealing drugs inside.

Interestingly, the prison doctor, with the keys to the medicine chest, was Hugh W. Maxey — an old friend of Kauffmann’s. One shady business Kauffmann operated out of his motel was Fixaco, Inc., a pharmaceutical company. Seven people connected with Fixaco, including Kauffmann, were arrested on April 4, 1967 for conspiracy to illegally sell 725,000 amphetamines pills. Among those charged were two New Yorkers: Bernard Chubet, a former stockbroker and Anthony K. Chang, a Chinese Nationalist (Taiwanese) exchange student. Also arrested was Sgt. Henry Geerdes, a Jefferson County deputy. Former Jefferson County Sheriff Walter “Buck” Buerger claimed his deputy was acting as an undercover agent when arrested by the U.S. Bureau of Drug Abuse Control. However, the HSCA testimony of one of Byers’ former lawyers, the late Murray Randall, indicates the Jefferson County sheriff — not a deputy — purchased drugs from Kauffmann.

Within weeks of Kauffmann’s speed bust, Ray, with another inmate’s help, smuggled himself out of prison in a bread box. Inexplicably, charges against one of his earlier failed escape efforts were dropped not long before the breakout, allowing Ray back into the main prison population.

Fred Wilkinson, the Missouri director of corrections at the time, was a former federal prison official with ties to the CIA. In 1962, Wilkinson helped exchange a Russian spy for Gary Powers, the U-2 pilot shot down over the Soviet Union.

Ray wasn’t the only one taking leave of the prison in those days. Maxey, the prison physician, released at least one inmate to work at Kauffmann’s motel as part of a “rehabilitation program.” And in a 1978 interview, Kauffmann’s widow said that in 1966, Spica visited the motel with Byers, while Spica was serving his life sentence. According to prison records, Spica received his first official prison furlough in 1972.

The other St. Louis businessman implicated by Byers, in the alleged assassination plot, was the late John H. Sutherland, a neighbor of Kauffmann’s and a patent attorney who had offices in the Shell Building on Locust Street where The Riverfront Times is now located. The firm of Sutherland Polster and Taylor represented clients such as Monsanto. When he died in 1970, Sutherland left a portfolio of mainly oil and chemical stocks worth more than $300,000, including investments in Rhodesia, now Zimbabwe.

In 1978, another St. Louisan was linked to a local firm — Hydro-Air Engineering, Inc. — which was being investigated for illegal trade with the same white-supremacist nation. The allegations came soon after federal Judge William Webster was confirmed as FBI chief. While the African business may be unrelated, Webster had a closer tie to the case, which is harder to dismiss.

Richard O’Hara, an art restorer, was the FBI informant who purportedly reported Byers’ assassination claims in 1974 to the FBI. O’Hara had been arrested in 1972 for his knowledge of a Maryland Plaza jewel robbery. Two suspects in that case were murdered, another was acquitted here in a federal trial racked with improprieties. Judge Webster presided over the questionable judicial proceedings.

Webster and Sutherland also both belonged to the then-all-white Veiled Prophet society. Sutherland’s membership in the organization was posthumously investigated the HSCA the same year Webster’s VP connection was questioned during his Senate confirmation hearings. The reason the HSCA showed interest in the VP was because of Byers’ testimony that Sutherland represented a “secret Southern society,” with a lot of money. The wealthy Veiled Prophet organization was founded in the post Civil War era by Southern sympathizers.

However, the HSCA gave more credence to the theory that one of three overtly racist political groups may have been involved in the conspiracy. The HSCA theorized that word may have been passed to Ray through his family. In 1968, Ray’s brother, John, operated the Grapevine tavern at 1982 Arsenal Street adjacent to Benton Park. The saloon was the gathering place for American Party workers who had a campaign office nearby. The third-party movement was created to support the George Wallace’s presidential bid. Sutherland was a Wallace supporter. Another possibility mentioned by the HSCA was the St. Louis Metropolitan Area Citizens Council, a “whites’ rights” group. Sutherland had been the group’s first president. But the outfit the HSCA took most seriously was the Nashville-based Southern States Industrial Council to which Sutherland belonged. A position paper published by the council quotes FBI chief J. Edgar Hoover’s belief that the “Negro movement” was being subverted by communists.

Overreaching Reason

In the wake of James Earl Ray’s death, the media has unleashed a barrage of attacks on the family of the late Martin Luther King Jr.

Susan Wadsworth, attorney Mark Lane and HSCA informant Oliver Patterson at a St. Louis press conference held Aug. 8, 1978. (photo by Karen Elshout of the St. Louis Post-Dispatch.)

published in the Riverfront Times (St. Louis) April 29, 1998

BY C.D. STELZER

With the death of James Earl Ray last week, mainstream news organizations have intimated that the convicted assassin of the Rev. Martin Luther King Jr. somehow took all knowledge of the crime with him to the grave; that nothing further can be learned. At the same time, the white-liberal establishment and certain well-encroached members of the civil rights community have openly condemned the call for a new investigation, arguing against the efficacy of such an endeavor, and casting aspersions on the King family for making such a suggestion.

Meanwhile, the press has been less critical of the opportunistic release of a new book on the subject, which went on sale on April 4, the 30th anniversary of the assassination. In Killing the Dream, best-selling author Gerald Posner presents a hackneyed indictment of Ray based primarily on previously published accounts. Despite its prodigious annotations, the work contains factual mistakes that are surpassed only by errors of omission.

Clearly, rhetoric has overreached reason, and in the ensuing lurch to debunk “conspiracy theories”critical thinking has been sacrificed. In an editorial in the St. Louis Post-Dispatch last Friday, the newspaper rabidly attacked the King family for accepting a “crank theory that Dr. King’s death was ordered by Lyndon Baines Johnson. …” There was no further explanation given. But the disturbing message sounds similar to FBI propaganda, which was leaked into the editorial pages of the now defunct St. Louis Globe-Democrat in the weeks preceding King’s assassination in 1968. Ironically, the Post’s official position, which describes Ray as a “two-bit punk,” is juxtaposed next to the newspaper’s much vaunted platform, a platform that professes to hold to strict intolerance for injustice.

More alarming is the Post-Dispatch editorial’s casual acceptance of the House Select Committee on Assassinations (HSCA) findings from 1978. In the only official investigation of the assassination, the HSCA concluded that two St. Louis businessmen placed a $50,000 bounty on King’s life. The HSCA speculated that Ray may have heard of this offer either through one of his brothers or through fellow prisoners at the Missouri penitentiary, where he was incarcerated prior to his escape in 1967. Both of the St. Louisans implicated in the offer were dead by 1978 and could not be called as witnesses before the HSCA.

The other problem with this conspiracy theory is that it is promulgated solely on the testimony of a convicted felon, Russell G. Byers, who was compelled to appear before the congressional committee, after becoming a suspect in one of two notorious St. Louis Art Museum burglaries in early 1978. Byers was never charged with the crime, but two other suspects in the case were later found murdered. Byers’ brother-in-law — John Paul Spica — who testified to the HSCA in closed session, died in a car bombing in 1979. Although an informant notified the FBI that Byers’ had boasted in 1973 of receiving an earlier offer to kill King, the FBI never looked into the matter, and the report was allegedly misplaced until the HSCA requested all files pertaining to the assassination. Only then did it resurface. When it did, Byers’ former lawyer, Murray Randall, who by then had become a Missouri circuit court judge, pleaded with the committee not to subpoena him, asserting that unnamed St. Louis underworld figures would retaliate against him. His appeal was not granted. In his subsequent testimony Randall said he found the entire St. Louis-based conspiracy theory incredible. His opinion was echoed by then-FBI director William Webster, who called Byers’ testimony”hearsay three-times removed.” Webster had been a federal judge in St. Louis before becoming FBI director in 1978.

There is another reason to doubt the veracity of the congressional findings, however. In a press conference held in St. Louis in August 1978, the late Oliver Patterson, an informant for the HSCA, admitted that his duties included theft, making false statements to Congress and wire tapping. Patterson, who had previously worked as an FBI informant, also confessed that he had planned, with congressional investigator Conrad “Pete” Baetz,” to leak a story to the New York Times that would have branded James Earl Ray’s attorney, Mark Lane, a homosexual. This was reported on the front page of the Post-Dispatch in 1978, but it appears the newspaper is now suffering from institutional amnesia or senile dementia.

David Patterson, the 25-year-old son of the of the late HSCA informant, is only now beginning to understand what transpired, when he was six years old. He would like to know more. “Why was there underhanded and illegal stuff going on? he asks.”Why did it need to go on? Why was my father being manipulated and why did he feel like he had to come out and reveal this stuff?” These are questions that the King family would like to know as well.

After reading about his father’s covert activities in the Riverfront Times last year, David Patterson realized the significance of the many cassette recordings that are now in his possession. The tape recordings, include phone conversations between his father and Baetz, the congressional investigator.

On one of the tapes, the two discuss how to coordinate the press conference at which the reputation of James Earl Ray’s attorney was to be smeared. Baetz had called to tells Patterson to delay the announcement because of the sudden death of the Pope. In another conversation, Oliver Patterson inquires about the appropriate attire to wear when meeting a New York Times reporter. “Should I wear my mafia outfit or my sports coat,” he asks.

Some of the conversations are much less humorous. In a briefing with assassination researcher Harold Weisberg, Oliver Patterson recalls altering an FBI report on Jerry Ray, the youngest brother of James Earl Ray.

“On page three of an FBI report I wrote dated May 16, 1971, I quote Jerry Ray as saying, `my brother pulled the trigger. …’ The report was originally written differently with other quotes exactly contradicting that one statement,” says Oliver Patterson. “After the report was reviewed by FBI special agent Stanley Jacobson, the page was retyped at his directive deleting all the contradictions to that one remark. That statement out of context distorts the meaning completely out of proportion and gives a totally, completely different intent to what was originally written.”

In another taped phone conversation Patterson inexplicably called the office of U.S. Sen. Orrin Hatch, then the junior senator from Utah. Patterson’s undercover work was under the auspices of the House committee not the Senate.

In the book Orders to Kill , William F. Pepper, Ray’s last lawyer, claimed a Green Beret sniper team was in place in Memphis at the time of the assassination. That claim has been refuted by ABC News. But the allegation of the Army’s intrusion into domestic affairs has never been denied.

The Army is known to have been spying on King since 1947, and, indeed, members of the 111th Military Intelligence Group (MIG) were closely shadowing his movements in Memphis, according to a 1993 story by investigative reporter Stephen G. Tompkins, formerly of the Memphis Commercial Appeal. The Army also used civilian, police and FBI sources for additional intelligence support during King’s visit to Memphis. After the shot killed King, Marrell McCollough, a Memphis police undercover agent, reached him first. McCollough had been relaying King’s movements to the police who in turn forwarded the information to the FBI and other intelligence agencies, which would have likely included the 111th MIG. McCollough now works for the CIA, and has refused to be interviewed on the subject even by Posner.

Last year, a ballistics test on the rifle found at the crime scene in Memphis failed to confirm whether it was the weapon used in the murder. In March, the black judge who had allowed the rifle test was removed from the case by the state of Tennessee because his decisions were deemed biased towards Ray’s defense.

The King family has long expressed a belief that Ray was innocent of the crime. In recent years, they led the efforts to gain the convicted assassin a new trial. Ray himself recanted his confession almost immediately after his 1969 conviction, arguing he had been coerced into confessing and had received inadequate legal counsel. He spent the remainder of his life in prison unsuccessfully seeking a trial.

Earlier this month, Corretta King, the widow of the slain civil rights leader, met with Attorney General Janet Reno, asking that the U.S. Department of Justice reopen the investigation into the assassination of her late husband. It is by any measure a reasonable request. If the Clinton administration is serious about improving race relations, this is where the reconciliation should begin.

Banished

St. Louis Globe-Democrat reporters Al Delugach and Denny Walsh won the Pulitzer in 1969. Their reward: One-way tickets out of town. first published in the St. Louis Journalism Review, June 1, 2008

It’s been a while since the last St. Louis newspapermen garnered a Pulitzer Prize for reporting–39 years to be exact. St. Louis Globe-Democrat reporters Denny Walsh and Albert L. Delugach received the honor on May 5, 1969.

Al Delugach won the Pulitzer Prize for reporting in 1970.

Their award now hangs on the wall behind the reference desk at the Mercantile Library at the University of Missouri–St. Louis. Surrounded by unrelated bric-a-brac, journalism’s highest honor and its recipients are easily overlooked.

The St. Louis Media Halls of Fame are also located at the Mercantile, which acquired the Globe-Democrat files after the newspaper folded in 1986. But when the group’s third annual awards are presented at a gala dinner on June 7 at the Khorassan Ballroom of the Chase Park Plaza Hotel, Walsh and Delugach are not on the list — again.

Their former boss, the late G. Duncan Bauman, however, was among the first to receive the laurel three years ago. On its lower level, the Mercantile displays a permanent exhibit of his memorabilia, including his desk. As publisher of the Globe-Democrat, Bauman was most likely seated at that desk when he decided to kill Denny Walsh’s story that linked then-St. Louis Mayor A.J. Cervantes, Jr. to the St. Louis underworld.

And it’s also where he probably sat when he refused to allow Walsh and Delugach to report on stymied federal indictments of the steamfitters union, which they had investigated. They gave their story to the Wall Street Journal, a ploy that broke the indictments loose and resulted in their winning the Pulitzer Prize.

The reporters were an odd couple–Walsh looking like a boxer and Delugach like a shy botany professor. Bauman, who became their nemesis, had such an ego that he had himself named the city’s Man of The Year in what he thought would be the Globe-Democrat’s final Sunday magazine in 1984. It included 33 photos of him.

In 1995, Bauman told St. Louis Post-Dispatch columnist Jerry Berger that he halted publication of that story to save the integrity of the newspaper.

“I found he went to great lengths to link Mayor Cervantes to organized crime,” said Bauman. “I then made some personal phone calls to the sources that Walsh said he was using and found out Walsh was not reflecting the views of those sources accurately. So, I told Walsh we would not print that installment of the [series]…. Walsh became angry and quit.”

“He lied to Berger,” counters Walsh, who, at 72, is still a working reporter for the Sacramento Bee. “He couldn’t have talked to any of my sources. They weren’t in St. Louis, and they wouldn’t have talked to him. The sources were all federal. I believe he let his unsavory connections in the community guide his stewardship of the Globe,” Walsh adds. “I know that he told Cervantes that he had taken care of that series.”

After leaving the Globe-Democrat, Walsh joined the staff of Life Magazine, taking his spiked story and notes with him. His eight-page investigative report–“St. Louis, the Mayor, the Mob and the Lawyer”– appeared in the magazine’s May 29, 1970, issue. The account named names, dates and places and included information from FBI reports and wiretap transcripts.

The story that Bauman had prevented from running locally had gained national exposure.

Walsh alleged the mayor had mobbed-up business ties and main-rained a “steady liaison” with organized crime figures through Anthony Sansone, his campaign manager. Sansone, a successful real estate broker, was the son-in-law of Jimmy Michaels, leader of the Syrian faction of St. Louis’ underworld. Michaels, in turn, was a criminal associate of Anthony “Tony G” Giordano, don of the St. Louis mafia.

Anthony Sansone Sr.

Walsh reported Sansone arranged a 1964 campaign-strategy session between Michaels and the mayor. After Cervantes won the mayoral primary, according to Walsh, Sansone attended another strategy meeting with Michaels and Giordano.

The lawyer mentioned in Life’s headline was St. Louis criminal defense attorney Morris Shenker, part owner of the Dunes casino in Las Vegas and counsel to numerous mobsters and corrupt labor bosses, including Teamster President James R. Hoffa and Lawrence Callanan, the head of Steamfitters Local 562 in St. Louis. Despite these questionable associations, Cervantes had brazenly appointed Shenker, a political crony and Democratic power broker, to head the city’s Commission on Crime and Law Enforcement.

The mayor and his backers reacted to the Life story as if Walsh had set off a bomb inside the rotunda at City Hall. Cervantes complained that he was not only defamed, but that the reputations of the entire city and all its inhabitants were under attack. Shenker and Sansone denied wrongdoing, labeling the accusations as false. The mayor subsequently sued Walsh and the magazine for libel but failed to recover damages. In the court of public opinion, however, local broadcast and print media overwhelmingly sided with Cervantes.

 

The St. Louis Post-Dispatch, for instance, 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….”

The idea that St. Louis had been spared the deleterious influence of organized crime must have come as news to Delugach, Walsh’s former partner. They shared the 1969 Pulitzer Prize for doggedly investigating Local 562. The byline of Delugach and Walsh appeared at the top of more than 300 stories from 1965-1968. Their collaborative effort revealed a pattern of labor racketeering that resulted in multiple federal indictments having to do with a kickback scheme related to the sale of insurance to the union’s pension fund.

By the time Walsh’s Life article appeared, Delugach had also left the Globe-Democrat, joining the staff of the Post. His tenure was brief, however, lasting only a year-and-a-half. Shortly after the Post absolved the mayor and declared the city free from organized crime, Delugach quit in protest.

“If I had thought that this was just the opinion of the editorial page of the Post, I might have borne up under it,” he told SJR, which covered his resignation in its first issue.

Instead, Delugach found that the same attitude permeated the newsroom.

“I didn’t want to work for a newspaper that had this view of organized crime and that had this way of dismissing the most serious accusations against its top (city) official.” Delugach found the premise that organized crime was non-existent in St. Louis untenable.

“I think it has been voluminously proved that it is a major factor in all kinds of crime–in all cities,” he said.

When he made this statement, Delugach was 44 and had been a staff reporter at three daily newspapers in Kansas City and St. Louis for nearly two decades. After leaving the Post, he moved to the West Coast, where he continued as an investigative reporter for another 20 years, retiring from the Los Angeles Times in 1989. Reached by phone at his home in Los Angeles, the 82-year-old retiree still expressed outrage over the affair.

“It was really an insult for them to come out with that attitude in print,” says Delugach. “I took it very personally. I figured there was no future here for me. The Globe-Democrat had people that had an interest in not stirring things up, but the Post-Dispatch, they were just so aloof. Even after what we did–getting the Pulitzer Prize–they didn’t act like it had any validity at all. They didn’t demonstrate at all that they considered it important after they hired me. I don’t know why they bothered.”

Delugach recalls the Post sent him to Alaska to cover the oil boom for two months. It was a plum assignment, but far from the beat that had nabbed the Pulitzer. In retrospect, it almost seems like the Post used its deep pockets to send him into exile.

By contrast, Delugach and Walsh had the full support of Richard Amberg, the previous publisher of the Globe-Democrat who originally teamed them up. But after Ainberg died and Bauman took over in 1967, Walsh noticed a change in course.

“Al and I were having a lot of difficulty with Bauman,” says Walsh. “He began to squeeze us on what we were doing, in respect to the steamfitters.”

The impasse reached a critical stage after Walsh learned through his sources in Washington that top Department of Justice officials had quashed the federal criminal prosecution of those involved in the $1 million steamfitters’ kickback conspiracy case.

“We wrote that story and handed it in,” says Walsh. “He (Bauman) killed it.”

Walsh says he then leaked the piece to Wall Street Journal Reporter Nicholas Gage. After the Journal ran the story, Delugach and Walsh were free to report on it in the Globe-Democrat. More important, the news coverage forced the Justice Department to reverse its decision and go forward with the prosecution.

“We wouldn’t have won the Pulitzer Prize had the indictment not been returned,” Walsh says.

The defendants included the president of the First United Life Insurance Co. of Gary, Ind., and two officials of Local 562. Court documents named Shenker and Callanan as beneficiaries of the scheme, but they weren’t charged. John “Doc” Lawler, another top steamfitter official, also allegedly benefited from the kickbacks.

John O’Connell Hough, Lawler’s personal attorney and un-indicted co-conspirator, agreed to cooperate with federal prosecutors, but never got the chance to testify. The Clayton-based lawyer disappeared in the Miami area on Aug. 12, 1967. Two months later, fishermen discovered his body in a secluded pine grove near the Inter-Coastal Waterway several miles north of Bal Harbour, Fla. Hough had been beaten and shot to death with .38-caliber handgun. The homicide remains unsolved.

After Hough’s murder, two prosecution witnesses refused to testify, and the defendants were acquitted.

In the intervening decades, the Post’s editorial position has been accepted as unequivocal. Nowadays it is taken for granted that organized crime no longer exists in St. Louis.

Walsh refuses to speculate on whether the mob is dead or alive here.

“I’ve been gone for 40 years. I don’t know what’s going on there. I don’t know what the Post is doing or not doing.”

The veteran reporter is sure of this much: “I would not want to be a member of any organization, or any group or any entity that counts Duncan Bauman as a member. I think he’s a stain on St. Louis journalism.”

 

 

The Mafia and Rex Sinquefield

In his bid to privatize the St. Louis airport, billionaire Rex Sinquefield jumped in bed with a consultant with mob ties, according to the feds.

Jeff Aboussie, a consultant connected to billionaire Rex Sinquefield’s scheme to privatize Lambert International Airport, has Mafia ties dating back to the 1980s, STLReporter has learned.

Aboussie’s Mafia connections are referenced in background information included in a 1988 federal appeals court ruling on a case involving convicted racketeer Sorkis Webbe Jr., a criminal associate of Aboussie’s.

Nov. 25, 1983 St. Louis Post-Dispatch

The  information is contained in an Eighth Circuit Court of Appeals ruling and is based on an FBI wiretap that captured conversations in which Aboussie discussed efforts to track down a rival gang member during a protracted turf war between competing factions of the St. Louis underworld in the early 1980s. The background in the appeals court decision names Aboussie as being “associated with a Kansas City, Missouri organized crime family.“ The appeals court ruling goes on to say that Aboussie provided support to one side of the gang war by “contacting the Denver and Chicago crime families.”

Aboussie, who now resides in the affluent suburban town of Wildwood, is the former head of the St. Louis Building and Constructions Trades Council. Prior to heading the council, he was affiliated with Operating Engineers Union Local 513. Aboussie resigned from the St. Louis Airport Commission in 2016 to form Regional Strategies, a consulting firm connected to Grow Missouri,  the non-profit corporation formed by Sinquefield to push the billionaire’s plan to privatize the city-owned airport. Aboussie was appointed to the commission by former St. Louis County Executive Steve Stenger in 2015. Stenger resigned last month and pleaded guilty to federal corruption charges. 

 Webbe — Aboussie’s past partner in crime —  played a pivotal role in the federal sting that ultimately brought down Stenger, introducing the politician to shady businessman John Rallo and also attending a meeting with Stenger and St. Louis Economic Development Partnership CEO Sheila Sweeney. Stenger and Sweeney pleaded guilty earlier this month for their roles in the pay-to-play scheme. Rallo later changed his decision andpleaded guilty to the same charges. Webbe was not charged. 

In 1983, Webbe and Aboussie were implicated by the feds in a conspiracy to harbor a fugitive wanted for participating in a series of gangland car-bombings here. The feds indicted Aboussie for lying to a federal grand jury about the plot. 

Aboussie later pleaded guilty to insurance fraud in a separate federal criminal case and received a six-month sentence and five years probation. As a part of the same 1985 plea deal, the feds dropped the perjury charges. The full terms of the plea deal remain unknown.

In the current investigation, the U.S. attorney’s office here subpoenaed the personnel records of Lou Aboussie, Jeff Aboussie’s first cousin. Lou Aboussie was hired by Stenger in 2015 at an annual salary of more than $75,000. At the time of his resignation earlier this year, he was listed as working for the County Parks Department, then-headed by Gary Bess, another Stenger appointee who also quit in the shakeup of County government that took place in the wake of the federal indictments of Stenger and his accomplices. Lou Aboussie was formerly an aide to U.S . Rep. Lacy Clay.

 

 

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.