America's Problem: Trump Is Married To The Mob

Trump's Mafia connections have been dogging him for his whole life. Somehow they didn't impress his supporters-- except maybe in Staten Island where Mon connections are considered a plus. Yesterday David Von Drehle gave it another try in the Washington Post: All The President's Wiseguys. Trump, he wrote, "spent plenty of time in mobbed-up milieus. As many journalists have documented-- the late Wayne Barrett and decorated investigator David Cay Johnston most deeply-- Trump’s trail was blazed through one business after another notorious for corruption by organized crime. New York construction, for starters. In 1988, Vincent “the Fish” Cafaro of the Genovese crime family testified before a U.S. Senate committee concerning the Mafia’s control of building projects in New York. Construction unions and concrete contractors were deeply dirty, Cafaro confirmed, and four of the city’s five crime families worked cooperatively to keep it that way."

This would not have been news to Trump, whose early political mentor and personal lawyer was Roy Cohn, consigliere to such dons as Fat Tony Salerno and Carmine Galante. After Cohn guided the brash young developer through the gutters of city politics to win permits for Trump Plaza and Trump Tower, it happened that Trump elected to build primarily with concrete rather than steel. He bought the mud at inflated prices from S&A Concrete, co-owned by Cohn’s client Salerno and Paul Castellano, boss of the Gambino family.

Coincidence? Fuhgeddaboudit.

Trump moved next into the New Jersey casino business, which was every bit as clean as it sounds. State officials merely shrugged when Trump bought a piece of land from associates of Philadelphia mob boss “Little Nicky” Scarfo for roughly $500,000 more than it was worth. However, this and other ties persuaded police in Australia to block Trump’s bid to build a casino in Sydney in 1987, citing Trump’s “Mafia connections.”

His gambling interests led him into the world of boxing promotion, where Trump became chums with fight impresario Don King, a former Cleveland numbers runner. (Trump once told me that he owes his remarkable coiffure to King, who advised the future president, from personal experience, that outlandish hair is great P.R.) King hasn’t been convicted since the 1960s, when he did time for stomping a man to death. But investigators at the FBI and U.S. Senate concluded that his Mafia ties ran from Cleveland to New York, Vegas to Atlantic City. Mobsters “were looking to launder illicit cash,” wrote one sleuth. “Boxing, of all the sports, was perhaps the most accommodating laundromat, what with its international subculture of unsavory characters who play by their own rules.”

But an even more accommodating laundromat came along: luxury real estate-- yet another mob-adjacent field in which the Trump name has loomed large. Because buyers of high-end properties often hide their identities, it’s impossible to say how many Russian Mafia oligarchs own Trump-branded condos. Donald Trump Jr. gave a hint in 2008: “Russians make up a pretty disproportionate cross-section of a lot of our assets.”

For instance: In 2013, federal prosecutors indicted Russian mob boss Alimzhan Tokhtakhounov and 33 others on charges related to a gambling ring operating from two Trump Tower condos that allegedly laundered more than $100 million. A few months later, the same Mr. Tokhtakhounov, a fugitive from U.S. justice, was seen on the red carpet at Trump’s Miss Universe pageant in Moscow.

Obviously, not everyone in these industries is corrupt, and if Donald Trump spent four decades rubbing elbows with wiseguys and never got dirty, he has nothing to worry about from special counsel Robert S. Mueller III. But does he look unworried to you?

Perhaps it's worthwhile to go back to a NY Times piece from 1988, long before anyone ever saw a lowlife like Trump in the white House, even as a visitor, Mob Role In New York Construction Depicted. "Vincent (Fish) Cafaro, a former captain in the Genovese organized-crime family in New York," explained The Times, "told the Senate Permanent Subcommittee on Investigations that the Mafia rigged contracting bids in NYC by demanding a 2% kickback from winning bidders and their unions. 'Legitimate guys ain't got a chance,' he said. He told the senators that the Mob-- the Genovese, Gambino, Lucchese and Colombo crime families-- controls 75% New York's construction industry.

Cafaro, who told them he had been involved with the Mafia since 1958, was indicted with Anthony (Fat Tony) Salerno for "racketeering, extortion, plotting murders, gambling and conspiracy." He became an informer for the FBI and wore a wire at Genovese Family meetings from October 1986 to March 1987. In 1989 and 1990, Cafaro testified against Gambino boss John Gotti and then disappeared into the federal Witness Protection Program.

Remember Staten Island Mafioso figure and congressman, Michael "Mikey Suits" Grimm? He was involved with Anthony "Fat Tony" Morelli. Trump's "Fat Tony" was Anthony "Fat Tony" Salerno. During the Republican primaries Ted Cruz tried getting the Trump Mafia story out into the media. Not many people cared. New Yorkers had known about it for decades and Trump fans in the Old Confederacy were already under Trump's spell. Michael Daly, though, gave it a shot for the Daily Beast: The Klansmen and Mobsters in Donald Trump’s Closet.

Cruz sought to rouse the mob ghosts of Donald Trump’s earlier days, saying on NBC that “ABC, CNN, multiple news reports have reported about his dealings with, for example, S&A Construction, which was owned by ‘Fat Tony’ Salerno, who is a mobster who is in jail.”

Trump did deal with S&A Construction in the early 1980s, though not necessarily out of choice.

S&A was indeed owned by Anthony “Fat Tony” Salerno of the Genovese crime family, but he was sentenced to 100 years in prison back in 1986 and died behind bars in 1992.

So an apologist might just shrug and say it was what everybody had to do back in the day in order to build anything at all.

A Trump supporter might even suggest that he and indeed all his fellow builders were victims of the mob in that era.

But few of the builders who accepted S&A concrete as an offer they could not refuse actually met with Salerno, as Trump is said to have done in the office of Roy Cohn the lawyer and fixer, who represented The Donald as well as the Don.

The Smoking Gun also reported that the now-extensive licensing of Trump name began with two lines of glamorized Cadillac limos-- the Trump Golden Series and the Trump Executive Series-- produced by Dillinger Coach Works, which was itself apparently named after the famous gangland figure John Dillinger. The company was owned by two convicted felons, one of whom, John Staluppi, has been identified by the FBI as a member of the Columbo crime family.

And only Trump helped a lady friend of a mob-connected union boss secure financing for three duplex apartments priced at nearly $10 million directly beneath the Trump penthouse in the signature Trump Tower. Verina Hixon’s complex included the building’s only private swimming pool, an addition that required structural alterations to the building.

As reported by Wayne Barrett in his book Trump: The Deals and the Downfall and confirmed by law enforcement officials as well as by people who worked on Trump Tower, the beautiful Hixon was a close pal of union boss John Cody, an avowed admirer of Jimmy Hoffa and also close to Cohn.

The value of Cody’s goodwill became clear when his union, Teamsters Local 282, called a citywide strike just as Trump Tower was near completion. The Trump site was exempted.

The danger of Cody’s displeasure became equally clear when Trump grew so weary of Hixon’s demands that he finally said no. Concrete deliveries ceased not just at Trump Tower but at sites across the city. Hixon soon got what she wanted.

Then Cody was sentenced to federal prison in 1984 for extortion and for attempting to murder the man who took over the union following his arrest. The extent of Cody’s fall became clear when Hixon was forced out of the tower. Trump no longer had her beneath his 68th-floor aerie, which is in truth on the 58th floor, the numbers in the tower’s elevators going from 1 to 6 and then 16 to 68 to make it all seem huger.

As he expanded into the casino business in Atlantic City, Trump agreed to pay twice the market value for land occupied by a bar owned by the sons of two Philadelphia Mafia bosses, the boys having made a name for themselves as part of a crew called the Young Executioners. The purchase, also reported by Barrett in his book, was reportedly routed through the secretary of Paddy McGahn, a thrice-wounded Marine war hero who had become as influential in his city as Roy Cohn was in New York.

In bringing high rollers to Atlantic City, Trump used a helicopter service owned by Joseph Weichselbaum, a mob-connected drug smuggler who lived in a Trump apartment while awaiting sentencing on narcotics charges in 1987. The case was prosecuted in Ohio but was moved to New Jersey for reasons that remain unclear.

As reported by The Smoking Gun, the case was then assigned to The Donald’s sister, federal Judge Maryanne Trump Barry. Some serious ghosts would soon be rising from that supposed coincidence had somebody not thought to quickly shift the case to another judge. Barry’s now-deceased husband, John Barry, often served as The Donald’s lawyer in New Jersey.

Trump’s dealings with mob figures appear to have included at least one member of Chinese organized crime. The Permanent Subcommittee on Investigations of the U.S. Senate’s Committee on Government Affairs reported in 1992 that Danny Leung was both a vice president for marketing at Trump’s Taj Mahal casino and an associate of the 14K Triad.

“He was formerly a business partner with Eddie Louie, a 14K Triad member and the brother of Nickie Louie, aka Louie Yin Poy, a former leader of the Ghost Shadows Gang,” the committee reported. “Leung has also given complimentary tickets for hotel rooms and Asian shows to numerous members and associates of Asian organized crime.”

The committee notes, “The 14K Triad comprises over 30 subgroups which include an estimated membership of over 20,000… The 14K engages in a variety of criminal activities including heroin trafficking, alien smuggling and counterfeit credit card manufacturing, and has connections in the United States for all of these purposes.”

More recently, Trump was joined in building the Trump SoHo by the son of a convicted extortionist described in court papers as a Russian gangster. Court records also show that the son has himself been convicted of felony assault and of bilking investors out of millions in a stock scheme.

Trump has insisted that he only had minimal dealings with the felon, Felix Sater, and was unaware of the man’s record until it was reported in the newspapers. Trump has also insisted that he had minimal dealings with John Cody, telling The Daily Beast that “I barely knew him,” describing the union boss as “a bad guy.” Trump has further denied ever encountering Salerno, though the encounter has been described by a Cohn assistant and there is no disputing that Trump did business with the mobster’s firm.

Trump with father figure, right-wing Mafia lawyer Roy Cohn

A couple of months before the election, we noted that even Trump campaign volunteers at the lowest level had to sign a 2,271-word non-disclosure agreement in which they also promise they won't compete against or say anything bad about Trump, his company, his family members [including Barron] or products-- now and forever." The bizarre requirement meant that even online volunteers had to sign the form, even if they'd never meet a Trumpanzee family member, attend a Trumpanzee rally, meet a Trumpanzee campaign staffer in person or step inside a Trumpanzee campaign office. Those years and decades with the slimiest and most dishonest lawyer in contemporary American history, Roy Cohn, had certainly rubbed off on Señor Trumpanzee. And in more ways than one. Also during the campaign, the Wall Street Journal described Signore Trumpanzee's deep ties to the Mob, writing that through his shady businesses in NYC and Atlantic City he "sometimes dealt with people who had ties to organized crime, while giving Trumpanzee the opportunity to describe himself as "the cleanest guy there is."

Some developers avoided working directly with unsavory figures by operating through a general contractor. Mr. Trump said he preferred to negotiate business matters personally, because he made more money that way.

Referring to a concrete contracting firm that law enforcement said was affiliated with one of New York’s Mafia families, Mr. Trump said: “That was a major contractor. You hear stories that they may have been [mob-controlled].

“In the meantime, I was a builder. I was never going to run for office.… I’d go by the lowest bid and I’d go by their track record, but I didn’t do a personal history of who they are.”

Many of the associations the Journal explored have been previously reported piecemeal. In the early 1990s, Mr. Trump’s license to operate casinos in Atlantic City was re-examined after a book by reporter Wayne Barrett alleged a number of organized-crime connections. New Jersey officials determined Mr. Trump remained eligible.

In its own examination, the Journal reviewed thousands of pages of legal and corporate documents and interviewed dozens of Mr. Trump’s business associates.

The gambling business now is largely corporate, but at the time when Atlantic City was newly opened to casinos and a family friend suggested Mr. Trump build there, many banks shunned the industry.

“Any project in the gaming arena in general is a difficult project to finance, because of the natural prohibition that a lot of institutions have,” Mr. Trump told New Jersey casino regulators in 1982.

Some of the people he dealt with in Atlantic City illustrate why the FBI agent counseled caution.

Kenneth Shapiro owned part of a site where Mr. Trump wanted to build his first casino. Mr. Shapiro was a Philadelphia scrap-metal dealer and property investor, described by law enforcement as an “agent” of Philadelphia mob boss Nicodemo “Little Nicky” Scarfo.

A co-owner of the site was Daniel Sullivan, a gregarious six-foot-five Teamster and labor consultant with a criminal record that included a weapons violation. “He knew a lot of organized-crime figures and they knew him,” said Walter Stowe, a former FBI agent.

Mr. Sullivan also was a tipster to the FBI. Gangsters “knew he was an informant. I don’t know why nobody ever tried to kill him,” Mr. Stowe said.

Mr. Trump negotiated with Messrs. Shapiro and Sullivan, now both dead, to lease their property. “They are not bad people from what I see,” Mr. Trump said at a regulatory hearing in 1982. His project nonetheless faced obstacles because of their involvement.

Mr. Sullivan, Mr. Trump and another partner had a deal to acquire an interest in a drywall company. New Jersey casino regulators told Mr. Trump any dealings with Mr. Sullivan beyond the property lease could delay casino licensing. He backed out of the drywall deal.

When the hotel-casino was near completion, the regulators said Messrs. Shapiro and Sullivan might need casino licenses too, as site owners, but could have trouble getting them. Eventually, Mr. Trump bought the two out.

Mr. Trump also used Mr. Sullivan as an adviser on New York labor issues. These included a 1980 dispute over the use of undocumented Polish workers to demolish the Bonwit Teller store on Fifth Avenue to make way for Trump Tower, Mr. Sullivan said in lawsuit testimony. Mr. Trump, in testimony of his own, said he didn’t know there were undocumented workers at the site.

Mr. Trump told the Journal he knew Mr. Sullivan and considered him “OK” because he traveled with FBI agents. He said he didn’t know of any underworld connection Mr. Shapiro might have had.

Mr. Shapiro was a conduit the Scarfo crime family used to buy influence with Atlantic City’s then-mayor, Michael J. Matthews, according to a 1984 indictment of the mayor. The late Mr. Matthews pleaded guilty to extortion. Mr. Scarfo, now in prison, didn’t agree to an interview.

Mr. Trump, as a casino owner, couldn’t legally contribute to the local politicians who controlled such matters as zoning and signs. Mr. Shapiro told a federal grand jury he secretly gave thousands of dollars to the mayor on Mr. Trump’s behalf, said people familiar with his account.

“Donald was always trying to maneuver politically to get things done,” said Mr. Shapiro’s brother Barry Shapiro.

Kenneth Shapiro said he never was reimbursed for the money given the mayor, according to his brother and two other people. “Donald just reneged; that’s his automatic thing,” Barry Shapiro said.

Asked about this, Mr. Trump said he didn’t make contributions to the Atlantic City mayor. “I’m not interested in giving cash, OK?...The last thing I’m doing is now handing cash.”

As for Mr. Shapiro, “I never remember him asking me for money. He was always straight with me...I didn’t know Shapiro well other than to know that we did a pretty small little land transaction down in Atlantic City, which was fine.”

A major profit source at one Trump casino was a racehorse trader named Robert LiButti. His gambling losses earned Trump Plaza $11 million between 1986 and 1989, state documents show.

Mr. LiButti had been convicted of tax fraud related to horse sales in 1977 and was barred from attending races in New York for trying to conceal his horse ownership. A Trump employee told New Jersey regulators that Mr. LiButti repeatedly invoked the name of gangster John Gotti and called him “my boss,” according to a 1991 state investigative report.

“LiButti was a high-roller in Atlantic City,” Mr. Trump said in an interview. “I found him to be a nice guy. But I had nothing to do with him.”

Jack O’Donnell, who ran Trump Plaza in the late 1980s, said, “It isn’t like [Mr. Trump] saw LiButti once or twice-- he spent time with him, saw him multiple times,” and even attended a birthday party for Mr. LiButti’s daughter.

The daughter declined to be interviewed but confirmed to Yahoo News that Mr. Trump attended a birthday party for her.

It was illegal in New Jersey for casinos to keep high-rollers happy by giving them cash gifts. Regulators, in a ruling that didn’t cite Mr. Trump personally, fined Trump Plaza for funneling Mr. LiButti $1.65 million via gifts of expensive cars quickly converted into cash.

Mr. Trump agreed in 1988 to buy a horse from Mr. LiButti for $250,000, Mr. O’Donnell said in a book he wrote after quitting Trump Plaza. The horse, named D.J. Trump, had cost the LiButti family just $90,000 a year earlier, according to Blood Horse magazine. Mr. O’Donnell said Mr. Trump aborted the deal after the horse had a health problem.

Mr. Trump didn’t respond to questions about the horse and the birthday party.

...A lawyer Mr. Trump relied on and socialized with in his early years was the hard-driving attorney Roy Cohn. Among Mr. Cohn’s clients were several gangsters, including Anthony “Fat Tony” Salerno, co-owner of a concrete company important to New York builders. Former Trump Organization executive Barbara Res said that during heated negotiations with contractors, Mr. Trump would pull out a photo of Mr. Cohn and say, “I’m not afraid to sue you and this is who my lawyer is.”

Mr. Trump called that “totally false.” He said people in the construction industry “don’t get scared by holding up a picture.”

Mr. Trump was a character witness for Mr. Cohn in proceedings that led to the lawyer’s disbarment shortly before his death in 1986.

Mr. Cohn had many clients who, like Mr. Trump, weren’t mob-affiliated, such as the late Yankees owner George Steinbrenner. “Roy was a great lawyer if he wanted to be,” Mr. Trump said in an interview.

Messrs. Cohn and Trump had a common associate in Teamsters official John A. Cody. Mr. Cody had a lengthy arrest record and was close to mob bosses Carlo Gambino and Paul Castellano, according to a Justice Department memo from 1982, when Mr. Cody was convicted of racketeering.

Mr. Cody led a powerful union local that represented drivers who delivered cement to New York construction sites.

When he called a strike, Mr. Trump still received cement for Trump Tower, said Mr. Cody’s son, Michael.

“My father wasn’t that generous, unless there was a reason,” Michael Cody said.

...In the 2000s, Mr. Trump dealt with another figure who had gangland ties. It happened when a small real-estate firm called Bayrock Group rented space in Trump Tower, two floors below Mr. Trump’s offices, and negotiated deals with Mr. Trump to put his name on buildings and give him equity in them. One person Mr. Trump worked with at Bayrock was Felix Sater.

In the early 1990s, well before Mr. Trump knew him, the Russian-born Mr. Sater was a stockbroker but lost his license and went to prison after he jabbed a margarita glass into a man’s face in a bar fight.

Later in the 1990s, Mr. Sater was involved in a Mafia-linked scheme to pump up marginal stocks, dump them on unsuspecting investors and stash the profits abroad. The scheme relied on gangsters from three mob families for protection, said a Justice Department news release. It quoted the New York police commissioner at the time as saying the operation could have been called “Goodfellas Meet the Boiler Room.”

Mr. Sater pleaded guilty to racketeering, cooperated with prosecutors and had his conviction sealed. It was then, around 2000, that he joined Bayrock and sometimes dealt with Mr. Trump on real estate.

Bayrock’s projects included the Trump SoHo condos in New York and Trump International Hotel & Tower in Fort Lauderdale, Fla. Its marketing in Fort Lauderdale included a letter in which Mr. Trump said, “This magnificent oceanfront resort offers the finest and most luxurious experience I have ever created.”

The New York Times described Mr. Sater’s criminal history in an article in 2007. Mr. Trump, giving a court deposition days later, said he was unaware of it until then.

Two federal press releases in 2000 had referred to Mr. Sater’s past, one from the National Association of Securities Dealers and one from the Justice Department. The Justice Department one announced the indictment of 19 people in the pump-and-dump stock scheme Mr. Sater was part of, including several it identified as members of La Cosa Nostra.

The Justice Department release said a Genovese crime-family soldier, Ernest “Butch” Montevecchi, had protected Mr. Sater from an extortion effort.

Mr. Montevecchi declined to comment.

In a 2009 court proceeding, Mr. Sater described the Bayrock real-estate business, which is no longer active, as one he “built with my own two hands” and where he was probably the No. 2 person. In an interview, Mr. Sater said he had atoned for his crimes by cooperating with the government in the pump-and-dump case and on national-security matters. He declined to answer questions about Mr. Trump.

More recently, Trump's Organized Crime dealings have been with the Russian Mafia rather than the old traditional Italian Mafia. In Trump’s Russian Laundromat, veteran journalist Craig Unger details how the Russian mafia has used the president’s properties-- including Trump Tower and the Trump Taj Majal-- as a way to launder money and hide assets. "Whether Trump knew it or not," writes Unger, "Russian mobsters and corrupt oligarchs used his properties not only to launder vast sums of money from extortion, drugs, gambling, and racketeering, but even as a base of operations for their criminal activities. In the process, they propped up Trump’s business and enabled him to reinvent his image. Without the Russian mafia, it is fair to say, Donald Trump would not be president of the United States."