INTRODUCTION In 1992, the Commission conducted a two-day To date, Leonetti has testified in eight federal tri- public hearing on the control of bars by organized crime als, plus three re-trials, and three state trials in prosecu- and issued a report. The Commission identified several tions of the Pittsburgh La Cosa Nostra and the Patriarca, such establishments and the organized crime members Genovese, Gambino/Gotti, Lucchese, Colombo and and associates holding interests in them. Most of the Bruno/Stanfa Families. His testimony has led to the owners of record and all of the organized crime figures convictions of more than 15 made members and 23 as- invoked their Fifth Amendment right against self-incrimi- sociates, including Nicholas Bianco, who was elevated nation at the hearing and refused to answer questions. from underboss to boss of the Patriarca Family of New The hearing and report featured the testimony of a former England following his indictment and prior to his convic- made member and a former associate of the Southeast- tion, together with virtually the entire hierarchy of the ern Pennsylvania-South Jersey Family of La Cosa Patriarca Family; Charles “Chucky” Porter, underboss Nostra. In striking testimony, former captain Thomas of the Pittsburgh La Cosa Nostra; Venero “Benny Eggs” “Tommy Del” DelGiorno and a former associate, whose Mangano, consigliere of the Genovese/Gigante Family identity had to be concealed for his protection, explained in New York; Benedetto Aloi, consigliere of the why organized crime gravitates toward liquor-licensed Colombo Family in New York; Santo Idone, a captain establishments — from use of the business to launder of the Bruno/Scarfo Family, and acting captain Michael money to use of the premises as a safe haven to meet Taccetta and soldiers Anthony “Tumac” Accetturo,2 and conduct illegal business, including the plotting of Martin Taccetta and Thomas Ricciardi, all of the New murders. They also identified numerous members and Jersey branch of the Lucchese Family. Leonetti also associates from seven different La Cosa Nostra families testified at the sentencing hearing of Patriarca boss who have held undisclosed interests in or exerted influ- Raymond J. Patriarca, Jr. ence over bars throughout New Jersey. Leonetti proved valuable to the federal gov- During its investigation, the Commission sought ernment in areas beyond criminal prosecutions. He access to a former, high-ranking La Cosa Nostra mem- provided a 20-page declaration that formed the basis ber who, at the time, was in federal custody and was for the federal government’s 1990 civil racketeering testifying in numerous federal prosecutions of organized suit resulting in the court ordered takeover of Local 54 crime figures in New York, Connecticut and Pennsylva- of the Hotel Employees Restaurant Employees Interna- nia. Philip Leonetti served as underboss and confidant tional Union and the ultimate removal of its key officials, to his uncle Nicodemo Scarfo, the boss of the South- who were Bruno/Scarfo associates. Leonetti also pro- eastern Pennsylvania- South Jersey Family of La Cosa vided information that contributed to the 1993 federal Nostra, commonly referred to as the Scarfo Family dur- indictment of Vincent “The Chin” Gigante, boss of the ing his reign from March 1981 to early 1991.1 Leonetti Genovese/Gigante Family in New York. In addition, was at his uncle’s side as meetings were held and deci- the prospect of Leonetti’s testimony has been credited, sions made. His intimate knowledge of the Family’s ac- in part, with causing underboss Salvatore “Sammy the tivities and operations ranks next to that of Scarfo Bull” Gravano to cooperate with federal authorities himself. against his boss, John Gotti, the head of the Gambino/ 1After his incarceration in January 1987, Scarfo initially ran the Family through Leonetti, until his imprisonment in April 1987, and then through Anthony Piccolo until early 1991, when John Stanfa became the boss. 2In February 1971, Accetturo was the caporegime in charge of the New Jersey branch of the Lucchese Family and fled the state to avoid a subpoena issued by the Commission. Gotti Family in New York. When Leonetti was re- Equally compelling were Leonetti’s accounts sentenced on his federal convictions in May 1992, of Scarfo’s own involvement with bars. He outlined the court recognized him as “the most significant Scarfo’s ownership of several New Jersey bars, his crime figure who chose to cooperate” at that time use of fronts to conceal his ownership interests, his and termed his cooperation “extraordinary” and “out- use of bars as the sites for murders, the tribute that he standing.” Leonetti’s sentence was reduced from 45 received from bar owners and his frequenting of bars years to six and one-half years. both to socialize and to discuss his organized crime business. This report, a follow-up to the Commission’s 1992 report, is the culmination of numerous and ex- In relating his knowledge about organized tensive interviews with Leonetti over the past two crime’s involvement in bars, a subject that had here- and one-half years, as access to him was arranged by tofore never been explored with him, Leonetti ex- federal authorities. It sets forth Leonetti’s account of posed many of the Scarfo Family’s day-to-day ac- events as related to a Commission special agent. The tivities and shed new light on the operation of orga- quoted material that appears in this report is the agent’s nized crime. He intertwined the role of bars in de- summary of those interviews. tailing the actions of both Scarfo and the Commis- sion of La Cosa Nostra in the wake of the murders of Leonetti disclosed to the Commission startling bosses Angelo Bruno and Philip Testa. He also new information about nine of the bars previously chronicled the “making,” or induction, ceremonies; identified by the Commission and the organized crime the Family’s relationship with attorneys; its dealings figures who have owned or controlled the liquor li- with politicians; its extortion of “street tax”; its in- censes. Two of the bars — Jerry Blavat’s Memo- volvement with labor unions, and its “sit-downs” with ries in Margate City and the Coral Reef in Bellmawr other La Cosa Nostra families to resolve disputes. — continue to operate. Leonetti also linked orga- Leonetti revealed the sit-downs and meetings that he nized crime to 14 additional bars in New Jersey, as and Scarfo attended with Gambino Family boss John well as numerous ones in Philadelphia. These bars Gotti and his predecessor, Paul Castellano, to settle include two that the Gambino Family had operated a dispute involving a New Jersey bar. in south Jersey. One of the organized crime bars newly revealed by Leonetti is still licensed — Leonetti’s revelations underscore once again Maynard’s in Margate City. In the course of prepar- the ease with which organized crime has been able ing this report, the Commission uncovered a fourth to pierce New Jersey’s alcoholic beverage licensing active license that has been utilized by an organized system. It is evident from the facts disclosed by crime associate, who was known to Leonetti, in his Leonetti that particular liquor licenses passed with- operation of Hooty Moo’s Beef & Ale in Waterford out government interference from one organized crime Township. A fifth active license — Frog Rock member to another and that certain organized crime Country Club in Hammonton — has as one of its members became involved in one bar after another. owners an individual known to Leonetti as a prior For example, a bar in Atlantic City was operated by owner of another restaurant and bar. Leonetti also four different groups of organized crime figures uti- established the organized crime ownership of a re- lizing the same liquor license, and one Scarfo Fam- tail distribution liquor license, which was held by ily associate, Sy Hoeflich, owned bars in Atlantic, attorney Harold Garber and real estate salesperson/ Gloucester and Camden Counties. Accordingly, the broker Alvin Lippman until April 1995 and had been conclusions and recommendations made by the Com- used by them to operate A.C. Discount Liquors in mission in 1992 are reiterated in this report. Atlantic City. 2 PHILIP LEONETTI Philip Michael Leonetti was born on March 27, owned by his grandparents, who were 1953, in Philadelphia, Pennsylvania. His childhood was Scarfo’s parents. His grandparents influenced, and his young adult life controlled, by his uncle also lived in an apartment in that Nicodemo Scarfo. Leonetti’s indoctrination at an early building. In approximately 1964, age into the ways of La Cosa Nostra insured his com- when Leonetti was about eleven years plete acceptance of a life in organized crime upon at- old, Scarfo moved from Philadelphia taining adulthood. Scarfo’s molding of Leonetti pro- into the same apartment building. vided him with a blood relationship who, he believed, After Scarfo moved in, Leonetti was would deliver absolute fidelity to him and the Family. around his uncle almost daily for No one was more trusted than Leonetti. At age 27, he approximately the next 25 years. became a made member, reporting to his uncle. At age 28, he was elevated by Scarfo to captain and at age 32, Leonetti’s mother and father were to underboss. However, Leonetti disavowed omerta, separated or divorced by the time he organized crime’s oath of secrecy, in 1988 when he and his mother moved to Atlantic faced a 45-year sentence in federal prison at the age City. As a result, Scarfo had a big of 36 and chose, instead, to cooperate with the fed- influence on Leonetti’s life, especially eral government against the very individuals who had since they lived in the same building.