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Mr. Cleanface’s Dirty Laundry: Harry Reid’s Mob Money
Original FReeper research | 01/20/2006 | Fedora

Posted on 01/20/2006 9:09:35 AM PST by Fedora

Mr. Cleanface’s Dirty Laundry: Harry Reid’s Mob Money

By Fedora

“I’ve gotta Cleanface in my pocket,” boasted Kansas City Mafia representative Joe Agosto, unaware the FBI was monitoring his conversation (reproduced loosely in the movie Casino). FBI surveillance of Mafia gambling operations in Las Vegas in the late 1970s picked up Agosto making references to an individual he codenamed “Mr. Cleanface” and “Mr. Gillette”. Agosto’s conversations mentioned Mr. Cleanface was close to Nevada Governor-Elect Robert List. After turning state’s evidence, Agosto claimed that Mr. Cleanface was Harry Reid, then chairman of the Nevada Gaming Commission and sporting a cleanshaven, boyish look. Agosto’s claims were echoed by former Tropicana Hotel part-owner Deil Gustafson, who testified about Reid’s relationship to Tropicana attorney Jay H. Brown.

Agosto’s testimony led to the conviction of several top Midwestern Mafia bosses, but failed to touch Reid. When questioned after Agosto’s surveillance became public knowledge in mid-1979, Reid admitted to being the subject of the “Mr. Cleanface” references, but denied being paid for any favors. The Justice Department investigated whether Mafia funds had been funneled to Reid through Brown and Mafia attorney Oscar Goodman. A five-month investigation cleared Reid, and 25 years later, Reid is attacking political opponents with slogans like “If we can beat mob, we can fight DeLay-style politics”, and claiming in the process that he “kick[ed] the mob out of Las Vegas in the 1970s”.

Did Harry Reid really kick the mob out of Las Vegas in the 1970s, as he claims? Or was he in the Mafia’s pocket, as Joe Agosto claimed? What are the real facts about Reid’s relationship to organized criminal elements in the gambling industry? Is he Mr. Cleanface, or Mr. Dirty Laundry?

Reid has been using the same tactics to project an image of being Mr. Cleanface since the beginning of his political career. He started as a protege of Donal “Mike” O’Callaghan, who served as Governor of Nevada from 1970 to 1978. Reid was elected as O’Callaghan’s Lieutenant Governor in 1970. With support from O’Callaghan, he ran for Senate in 1974 against Republican Paul Laxalt. Reid’s campaign rhetoric accused Laxalt of profiting from association with billionaire Howard Hughes, who had a long relationship with Capone mob representative Johnny Rosselli and had recently secured Rosselli’s assistance in acquiring Las Vegas’ Desert Inn from associates of Cleveland mobster Moe Dalitz in 1967.

Laxalt had indeed taken contributions from Hughes. But what Reid failed to mention was, so had his own former running mate O’Callaghan. And so had Reid himself.

Hughes, like the Mafia, hedged his political bets by adopting a nonpartisan policy towards graft. He sold Laxalt, O’Callaghan, and other politicians on his move into Las Vegas by portraying it as a broomstick for sweeping the Mafia out of the casino business. Then “reformer” Hughes turned around and paid Johnny Rosselli a finder’s fee. Meanwhile handsome profits from the deal went to Moe Dalitz, then a partner in developing Rancho La Costa in the San Diego area. From bases outside Las Vegas the Mafia maintained a lower-profile presence in the city, and the Chicago Outfit and its Midwestern partners were soon creeping back into town by 1974--just in time for Mr. Cleanface to “kick the mob out of Las Vegas”, again.

O’Callaghan replaced Nevada Gaming Commission Chairman Peter Echeverria with Reid in mid-1977, in the midst of the new Chicago Mafia move into town spearheaded by Agosto. As chairman, one of Reid’s first acts was to approve the sale of the Hacienda hotel-casino (now the site of Mandalay Bay), controlled by a Chicago Mafia front company called Argent Corporation, to former lounge musician Paul Lowden. Reid approved the sale despite objections from the state’s Gaming Control Board alleging the involvement of Lowden with hidden associates from a company based in San Diego. Also in 1977 Reid and the Nevada Gaming Commission initially approved the deal that allowed Agosto’s associates to skim funds from the Tropicana for two years before Reid decided to “kick the mob out of Las Vegas”. In 1978 Reid’s commission approved applications for new Reno and Lake Tahoe ventures by the Del E. Webb Corporation, named for Del Webb, a Phoenix construction contractor whose Las Vegas buildings had been used by Bugsy Siegel and Meyer Lansky for skimming funds. After the use of Reid’s name by Agosto and his associates was reported by papers in mid-1979, Reid and the Gaming Commission approved transfer of control of the Tropicana from Agosto’s group to the Phoenix-based Ramada hotel chain, which had been founded with initial investment input from Webb.

By 1980 Reid had been cleared of Agosto’s allegations by the Carter Justice Department (then also in the process of bringing about virtually no successful prosecutions in Billygate, Koreagate, ABSCAM, BCCI, or the investigation of cocaine use by Treasury Secretary Hamilton Jordan). Since then Reid has received contributions from various donors connected with the gambling industry, including:

--Moe Dalitz, associated with the Cleveland mob, the Desert Inn, the Stardust Resort & Casino, and Rancho La Costa.

--Irwin Molasky and Merv Adelson, who partnered with Dalitz in developing Rancho La Costa but deny any criminal associations.

--Morris Shenker, an attorney associated with the St. Louis Mafia, Meyer Lansky, Jimmy Hoffa, and the Dunes Hotel.

--Paul Lowden, who after purchasing the Hacienda in 1977 from Argent Corporation purchased the Sahara Resort and Casino in 1982 from Del Webb.

--Ed and Fred Doumani, associated with the Tropicana Hotel, the El Morocco casino, Agosto, and Joey Cusumano, former lieutenant of Chicago Mafia representative Anthony Spilotro; Agosto’s infiltration of the Tropicana was facilitated in 1975 when the Chicago and Kansas City Mafia families conspired to block a Teamsters Central States Pension Fund loan to the Doumanis; when Argent Corporation’s gambling license was revoked in 1979 Argent initially agreed to sell its holdings to the Doumanis; later in 1983 the Doumanis loaned funds to the now-bankrupt Agosto.

--Bart Rizzolo, who along with his son Rick Rizzolo operates the Crazy Horse Too strip club; associated with the Doumanis and Joey Cusumano.

--Kirk Kerkorian, owner at various times of Caesar’s Palace (built with financing from the Teamsters Central States Pension Fund), the Flamingo Hotel (sold in 1970 to the Hilton Hotels Corporation, partly financed in the 1940s by Henry Crown, who also financed Chicago mob associate Jacob Arvey, and later associated with mob lawyer Sidney Korshak), and the MGM Grand Hotel and Casino (built on the heels of Kerkorian’s acquisition of controlling MGM shares from Edgar Bronfman, son of Lansky bootlegging associate Samuel Bronfman; Bronfman’s son Edgar Jr. has also been a Reid contributor).

--Steve Wynn, a casino developer who used profits from a 1970 deal involving Howard Hughes and Caesar’s Palace to purchase the Golden Nugget; described in a Scotland Yard report as a front man for New York’s Genovese Mafia family.

--Joseph Alioto, a San Francisco politician related to Milwaukee Mafia boss John Alioto; alleged by informer Jimmy “the Weasel” Fratianno to be associated with San Diego Mafia boss Frank “the Bomp” Bompensiero, a charge Alioto denied; implicated in the Koreagate Congressional bribe scandal.

--Tony Coelho, a corrupt former Congressman who in 1997 at the time of his donation to Reid was involved in a business venture with El Rancho, a Las Vegas casino formerly run by Ed Torres, an associate of Meyer Lansky.

While receiving donations from such sources, Reid has remained associated with the two attorneys involved in the Justice Department probe of Agosto’s allegations, Jay H. Brown and Oscar Goodman. Brown has been a regular contributor to Reid’s campaigns since 1982, and his law firm Singer & Brown lists Reid as a reference in one online profile. In January 2006 Reid and Goodman--now the Mayor of Las Vegas--discussed the possibility of Goodman running for Senate, with Reid describing Goodman to the press as “a very, very strong candidate”. Meanwhile Goodman had recently created a local scandal by throwing a party with a guest list which included Joey Cusumano, legally barred from Las Vegas casinos for his ties to the Chicago Mafia. Goodman’s open association with Cusumano was called by former Las Vegas FBI chief Bobby Siller “an embarrassment to the state, an embarrassment for Las Vegas and an embarrassment for gaming”. Another former Las Vegas FBI chief, Joseph Yablonsky, said of Goodman, “'Mob lawyer' is a title Goodman has relished and promoted over the years, although it's contradictory to his sporadic and inane denials that organized crime exists in the United States. The 'boys' in Chicago, Kansas City and elsewhere must be elated about their guy in Vegas. They're probably thinking 'we'll have some political juice there again.'”

Yablonsky’s last comment could also be applied to Harry Reid. So did Mr. Cleanface really kick the mob out of Las Vegas, or did he just help them move to Washington?

Select Bibliography

“Crime Force Papers May Put Pressure on Syndicate”. Los Angeles Times. June 19, 1979, E15.

De Szigethy, James Ridgway. “Senator Robert Toricelli and the Mafia: Part One”. August 2002. AmericanMafia.com. http://www.americanmafia.com/Feature_Articles_229.html

Delugach, Al. “2 Vegas Lawyers Probed in Payoffs”. Los Angeles Times. October 11, 1979, B3.

----------------. “Gambling Czar Overrides Rule, Loan to Casino OKd”. Los Angeles Times. September 16, 1977, E13.

----------------. "Nevada Board Okays Operators for 3 Casinos". Los Angeles Times. November 16, 1979, E17.

----------------. “Nevada Lets Urich Withdraw Casino Bid”. Los Angeles Times. May 26, 1978, E19.

----------------. “Tapes Playing Pivotal Role in Casino Skimming Trial”. Los Angeles Times. October 28, 1985, A1.

Demaris, Ovid. Captive City. New York: L. Stuart, 1969.

-----------------. The Last Mafioso: The Treacherous World of Jimmy Fratianno. New York: Times Books, 1981.

Elliott, Stephen. “Searching for Harry Reid”. The Progresive. March 2005. Online at http://www.findarticles.com/p/articles/mi_m1295/is_3_69/ai_n13251109

Evans, K.J. “Harry Reid: The Senator from Searchlight: After some wins and losses in the political arena, a man whose hard-rock miner father's independence is etched in his character finds himself as the Democratic whip of the U.S. Senate.” From “The First 100: Part III: A City in Full.” Las Vegas Review-Journal. http://www.1st100.com/part3/reid.html

Evans, K.J. “Kirk Kerkorian: The Quiet Lion: The father of the megaresort, this daredevil pilot turned his high-flying ways into soaring profits by building the world's biggest hotels both on and off the Strip.” From “The First 100: Part III: A City in Full.” Las Vegas Review-Journal. http://www.1st100.com/part3/kerkorian.html

Federal Bureau of Investigation. Files on “Morris ‘Moe’ Dalitz”. File numbers 62-47940, 62-54361, 9-26738, and 29-75588. Online at http://foia.fbi.gov/foiaindex/dalitz.htm

Federal Bureau of Investigation. Files on “Anthony Spilotro”. Online at http://foia.fbi.gov/foiaindex/spilotro.htm

Federal Election Commission. Data on “Reid, Harry” and “Reed, Harry Mason”. Online organized alphabetically by contributor at http://www.newsmeat.com/campaign_contributions_to_politicians/donor_list.php?candidate_id=S6NV00028 and http://www.newsmeat.com/campaign_contributions_to_politicians/donor_list.php?candidate_id=H2NV01033 ; also available at http://www.opensecrets.org/

Higham, Charles. Howard Hughes: The Secret Life. New York: G.P. Putnam’s Sons, 1993.

Hopkins, A.D. “Del E. Webb: Man of the Years”. From “The First 100: Part II: Resort Rising.” Las Vegas Review-Journal. http://www.1st100.com/part2/webb.html

-----------------. “Irwin Molasky: The Developer’s Developer: From high-rise bank buildings and hospitals to horse racing and motion picture making, the projects of this construction king continue to flourish in Las Vegas and the West.” From “The First 100: Part III: A City in Full.” Las Vegas Review-Journal. http://www.1st100.com/part3/molasky.html

Knapp, George. “George Knapp Speaks with Yablonsky, Goodman”. WorldNow. February 4, 2000. http://www.klastv.com/Global/story.asp?S=649655

Lait, Jack and Mortimer, Lee. Chicago: Confidential! New York: Crown Publishers, 1950.

”Las Vegas Casino Sale Wins OK Despite Probe”. Los Angeles Times. July 24, 1977, F2.

Machi, Mario; May, Allan; and Molino, Charlie. “St. Louis Family”. AmericanMafia.com. http://www.americanmafia.com/Cities/St_Louis.html

Marrus, Michael R. Samuel Bronfman: The Life and Times of Seagram’s Mr. Sam. Hanover, New Hampshire: University Press of New England, 1991.

May, Allan. “Frank Bompensiero: San Diego Hit Man, Boss and FBI Informant”. Crime Magazine. http://crimemagazine.com/bomp.htm

Miller, Steve. “Looking For Love In All The Wrong Places”. AmericanMafia.com. March 31, 2003 http://www.americanmafia.com/Inside_Vegas/3-31-03_Inside_Vegas.html

----------------. “The Wynns, and what they may not want us to know”. May 2, 2005. AmericanMafia.com. http://www.americanmafia.com/Inside_Vegas/5-2-05_Inside_Vegas.html

Morrison, Jane Ann. “Reputed organized crime associate among Goodman guests: Mayor makes no apologies for inviting to daughter's engagement party man listed in Nevada Black Book”. Las Vegas Review-Journal. March 17, 2003. http://www.reviewjournal.com/lvrj_home/2003/Mar-17-Mon-2003/news/20878782.html

Pearson, Drew. Diaries, 1949-1959. Edited by Tyler Abell. New York: Holt, Rinehart, and Winston, 1974.

Pileggi, Nicholas. Casino: Love and Honor in Las Vegas. New York: Simon & Schuster, 1995.

Pistone, Joseph D. Donnie Brasco: My Undercover Life in the Mafia. With Richard Woodley. New York: New American Library, 1988.

Pollock, Dale. “Trouble at the Cotton Club” The Los Angeles Times. December 4, 1983, W1.

Reid, Senator Harry. “If we can beat mob, we can fight DeLay-style politics: Experience in Las Vegas similar to D.C. corruption”. Houston Chronicle. January 12, 2006. Online at http://www.chron.com/disp/story.mpl/editorial/outlook/3584174.html

Roemer, William F., Jr. The Enforcer: Spilotro--the Chicago Mob’s Man over Las Vegas. New York: Donald I Fine, 1994.

Riley, Brendan. “Reid: Las Vegas Mayor Discusses Senate Bid.” Las Vegas Sun. January 3, 2006. http://www.lasvegassun.com/sunbin/stories/nevada/2006/jan/03/010310016.html

Smith John L. “Binon estate battle an all-in-the-family affair of attorneys”. Las Vegas Review-Journal. February 16, 1999. http://www.reviewjournal.com/lvrj_home/1999/Feb-16-Tue-1999/news/10617014.html

-----------------. “Ghosts of El Rancho rise to haunt Gore campaign manager”. Las Vegas Review-Journal . December 1, 1999. http://www.reviewjournal.com/lvrj_home/1999/Dec-01-Wed-1999/news/12461936.html

-----------------. Of Rats and Men: Oscar Goodman’s Life from Mob Mouthpiece to Mayor of Las Vegas. Las Vegas: Huntington Press, 2003.

-----------------. Running Scared: The Life and Treacherous Times of Las Vegas Casino King Steve Wynn.. New York: Four Walls Eight Windows, 2001 (New York: Barricade Books, 1995).

Tuohy, John William. “The Bare Facts: Part I” AmericanMafia.com. February 2002. http://www.americanmafia.com/Feature_Articles_187.html

United States v. DeLuna. 763 F.2d 897 (8th Cir. 10, 1984).


TOPICS: Crime/Corruption; Extended News; Front Page News; Government; News/Current Events; Politics/Elections; US: Nevada
KEYWORDS: 109th; corruption; dingyharry; dirtyharry; elections; harryreid; mafia; nevada; oscargoodman; reid; tonycoelho
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To: Fedora

I must applaud your scholarly research. I actually live in Las Vegas, and know most of these folks. Sadly,the truth is far worse than you can imagine. There is no place on earth that I can think of where the corruption is so institutionalized, except maybe in Africa.


21 posted on 01/20/2006 10:16:24 AM PST by purkinje
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To: Fedora

bookmarked and bumped.


22 posted on 01/20/2006 10:17:34 AM PST by bad company (A foolproof plan fails to take in to account the Ingenuity of fools.)
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To: purkinje

I appreciate the perspective of someone familiar with the area. Goodman seems to embody the problem.

I'm told New Orleans is a close runner-up for most corrupt, for similar reasons.


23 posted on 01/20/2006 10:24:19 AM PST by Fedora
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To: Fedora

Isn't harry's son also mobbed up?


24 posted on 01/20/2006 10:25:32 AM PST by ozzymandus
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To: ozzymandus
I haven't looked into his son, but from a quick search I'm seeing there was some coverage of some type of nepotism scandal involving his son and son-in-law--link to some Los Angeles Times articles from 2003 here: Harry Reid's Corrupt Connections.

What Reid did not explain was that the bill promised a cavalcade of benefits to real estate developers, corporations and local institutions that were paying hundreds of thousands of dollars in lobbying fees to his sons' and son-in-law's firms, federal lobbyist reports show....

25 posted on 01/20/2006 10:34:30 AM PST by Fedora
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To: Fedora

It figures a Las Vegas Senator is dirty.


26 posted on 01/20/2006 11:27:52 AM PST by XHogPilot (Islamophobia is NOT an illness. They really are out to kill us!)
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To: Fedora

LOL...another CRIMINAL LAWYER representing American Citizens....


27 posted on 01/20/2006 11:36:30 AM PST by shield (The fear of the LORD is the beginning of knowledge: but fools despise wisdom and instructions.Pr 1:7)
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To: Maceman

Although Ted Kennedy referred to Sam Alito as "Alioto" in deliberate disrespect, I thought at the time, maybe he was indeed trying to associate Alito with a known mob family instead?


28 posted on 01/20/2006 11:46:15 AM PST by tinamina
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To: Fedora

Harry Reid, like so many DemocRATs, just looks dirty.


29 posted on 01/20/2006 11:47:15 AM PST by FerdieMurphy (For English, Press One. (Tookie, you won the Pulitzer and Nobel prizes. Oh, too late.))
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To: tinamina
"Although Ted Kennedy referred to Sam Alito as "Alioto" in deliberate disrespect, I thought at the time, maybe he was indeed trying to associate Alito with a known mob family instead?"

When I saw the name Alioto in this piece I thought the same thing. That either Kennedy was deliberatly trying to tie Alito to Alioto or it was a Freudian slip that is very telling.
30 posted on 01/26/2006 9:47:42 AM PST by Sweetjustusnow (Oust the IslamoCommies here and abroad.)
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To: Maceman

Joseph Alioto, ex mayor of San Francisco. The family ran long shoreman and other SF politics for years. My grand pa said that the corrupt Aliotos were one of the reasons why our family left SF years ago to live in the East Bay.


31 posted on 01/26/2006 9:58:54 AM PST by tertiary01 (Dems ..the party that repeats history's mistakes over and over and....)
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To: Fedora

bttt


32 posted on 01/26/2006 9:59:39 AM PST by timestax
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To: Fedora
Morris Shenker, an attorney associated with the St. Louis Mafia,"

Recall when he died that there was a large safe in his house, do not recall if the contents were ever revealed........Aside....Fitters, laborers, etc etc no names here, but lotsa explosions...vans, boats Lotsa headlines those days..

33 posted on 02/16/2006 2:35:44 PM PST by litehaus
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To: litehaus

Thanks for that detail--I don't think I'd heard that part. Shenker shows up in a lot of different places.


34 posted on 02/16/2006 3:33:24 PM PST by Fedora
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To: FerdieMurphy

bttt


35 posted on 04/25/2006 10:13:41 AM PDT by timestax
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To: theOffice

bttt


36 posted on 04/25/2006 10:28:18 AM PDT by timestax
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To: timestax

bump


37 posted on 04/26/2006 2:22:13 PM PDT by timestax
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To: theOffice

bump


38 posted on 04/27/2006 8:09:29 AM PDT by timestax
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To: timestax
daily reminder bump!
39 posted on 04/27/2006 11:07:38 AM PDT by timestax
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To: theOffice

bttt


40 posted on 04/30/2006 7:49:28 AM PDT by timestax
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