U.S, Bid To Beat Mafia

Press, Volume CIX, Issue 32220, 12 February 1970, Page 13

U.S, Bid To Beat Mafia

(N Z P A-Reuter—Copyright) WASHINGTON, Feb. 11. The United States Government was asking the New York Stock Exchange to establish a permanent fund of SI 5250.000 to be used in helning to break Mafia activities on Wall Street, the Attorney - General ‘ (Mr John Mitchell) said , last night. !i The money would be used to buy stolen securities from ■ middlemen operating for thf crime syndicates, thus giving (Undercover agents a lead tc 'the organisers of the racket “A particular target for cri >' minal activity is in security - transactions, where organised ■ crime is operating with grea > efficiency and profit." Mr Mit chell told a meeting of th< I Bond Club. “In the first nine months ol I last year. SUS4Sm in securi > ties was lost or stolen fron banks and brokerage houses. Crime syndicates move int< - securities houses by bribes ; threats or usurous debt;

owed by staff. Because of the. volume of transactions in securities, the possibilities for! organised crime exploitations are endless.” Mr Mitchell said that under-j cover agents were being employed successfully to make contact with middlemen in crooked dealings. “We are now negotiating with the New York Stock Exchange to set up a permanent fund of about 5U5250.000." he said. “We plan to • use the fund as front money in undercover purchases of • stolen securities. . . . We do not expect any of the moneywill ever be lost, although there is a remote possibility that something could go (wrong.” He added that the exchange had shown great interest and willingness to help to establish such a fund. i; Banks Check : Another move planned by the Government was the ' lightning inspection of banks • suspected of having dealings i in stolen securities. “The bank to be inspected i is selected by our organised , crime co-ordinating commit- ; tee, which is made up of rep-

resentatives of the Depart-' ment of Justice, and Federal: and state agencies." he said.' “During the inspection, these agenicies will comb the bank’s records for prospective leads to organised gangsters and their business operations.” | Airport Racket Mr Mitchell said that or-, ganised crime also had a stranglehold on air freight trucking operations at one of the nation's busiest airports. | which he declined to identify.! “The airport is trapped between a racketeer-domina-ted trade union on the one ' hand, and a racketeer-trade association on the other." he said. “So strong is the grip I of these underworld pincers ' that when one airline tried to I stop dealing with the Mafiatipged trucking organisaI tion. a threat was issued to shut down the entire airport. “Organised crime exacts a; tariff on the trucker, a tariff on the truck-driver, a tariff on the airline, a tariff on! the sender, on the recipient! and, indirectly, on the eventual consumer.” he added. The Justice Department's investigations of the airport

had resulted in several criminal cases, and the investigation was continuing. Suspect Dead From Newark, New Jersey, it is reported that the second death within a week occurred today among 15 men. including several alleged to be Mafia members, awaiting trial on charges of extortion and conspiracy. A contractor. Mario Gallo, aged 44, who was on bail on charges of conspiracy and extortion of 5U5253.000, died when the car he was driving crashed into the side of a narrow concrete bridge. No suspicion of foul play was involved in the accident, a police spokesman said. Gallo and 14 other people, including the Mayor of Newark (Mr Hugh Addonizio), several city officials and the man alleged to be the Mafia chieftain, Anthony Boil ardo, were indicted on December 17 by a grand jury on charges of conspiracy, extorition and income tax evasion. Last Wednesday. Judge Anthony Guiliano, of the Newark. Municipal Court, who had also been indicted, died after a heart attack.