Skimming the Las Vegas Casinos — Part II

Around the same time in 1978 that Allen Glick was ordered by the Kansas City mob to sell his Argent-owned casinos, the feds launched a major investigation into organized-crime’s influence in Las Vegas. A large part of that effort consisted of court authorized electronic surveillance of telephones and locations in Kansas City, Las Vegas, Chicago, and Milwaukee. The residences of Carl DeLuna, Anthony Civella, and Anthony Chiavola, Sr., were being monitored. The business offices of Allen Dorfman, Joe Lombardo, Milton Rockman, and Angelo LaPietra, were being listened in on. Frank Balistrieri’s office and a restaurant he owned were also bugged.  The investigators learned a lot and conducted several court-authorized raids based on that information.

 

FBI agent Gary Magnesen was working in Milwaukee then and recalled the information that was obtained on Frank Balistrieri.

 

“We’d been running the taps on Frank [Balistrieri] for close to a year. In one of the calls Frank made from his office he mentioned that it was almost time for his ‘transfusion.’ We didn’t know what that meant at the time, but later on, when we compared notes with our Kansas City office, it was determined that ‘transfusion’ referred to the money coming in from the Las Vegas casino skim.

 

“In March 1978, we had enough probable cause to get a search warrant and went to Balistrieri’s house to execute it. We had to break the door down with a sledgehammer to get in. Once we were inside, I told Frank that there wouldn’t be any more ‘transfusions.’ He looked at me and realized that we knew about the skim. I could see the confidence drain out of him. He knew it was over.”

 

   

The search that was perhaps most devastating to the criminals occurred on February 14, 1979, Valentine’s Day. Federal investigators entered the home of Carl DeLuna and seized addresses, phone books, papers, and other documents. Among them were DeLuna’s detailed records of the skim. They included the dates and nature of meetings and conversations among the conspirators, telephone numbers, and the disbursement of funds from the skimming operations. The evidence gathered represented a bonanza for law enforcement — and doom for the mobsters.

 

The records available to investigators placed the estimate of the money taken from the Stardust and Fremont casinos at well over $2 million. Former Cleveland underboss Angelo Lonardo testified before the Senate Committee on Government Affairs on April 4, 1988. At that time he was serving a prison sentence of life without parole, plus 103 years, for his role in operating the family’s drug ring. He began his statement by highlighting his long criminal history, including a couple of murders he had committed. He later explained how the Las Vegas casino skim operated after his family became involved.

 

“The skim of the Las Vegas casinos started in the early 1970s. Starting in 1974 I began receiving $1,000 to $1,500 a month from the family through Maishe [Milton] Rockman. I did not know where the money was coming from, but I suspected that it was from the Las Vegas casinos. I learned this from various conversations I had with Rockman.

 

“Lefty Rosenthal ran the skim operation in Las Vegas. Rockman would travel to Chicago or Kansas City to get Cleveland’s share. Bill Presser [a Teamster power broker and father if future Teamster president Jackie Presser] and Roy Williams received about $1,500 a month for their role in the skim. The Cleveland family received a total of about $40,000 a month.”

 

By 1983, the government’s case against the gangsters was ready to move from the investigative to the prosecutorial stage. On September 30, a federal grand jury in Kansas City returned an eight-count indictment against 15 defendants in the Argent case. Five of them eventually stood trial, starting in late 1985: Chicago boss Joe Aiuppa, underboss John Cerone, West Side honcho Joe Lombardo, Milton Rockman, and Angelo LaPietra. Four of the accused, Carl Civella, Peter Tamburello, Anthony Chiavola, Sr., and Anthony Chiavola, Jr., entered guilty pleas prior to trial. Carl DeLuna and Frank Balistrieri pled guilty during the trial. Two others, John and Joseph Balistrieri, were acquitted. One, Carl Thomas, had his indictment dismissed during the trial and became a witness against the other defendants. And one, Tony Spilotro, had his case severed from the others prior to trial.

 

Other key players in the scam also testified during the trial. Allen Glick, Angelo Lonardo, and Roy Williams provided crucial evidence that resulted in guilty verdicts against Aiuppa, Cerone, Lombardo, LaPietra, and Rockman in January 1986.

 

Aiuppa and Cerone each received sentences totaling 28-1/2 years. Lombardo and LaPietra drew 16 years in prison. Rockman got 24 years behind bars. In addition, each man was fined $80,000.

 

 

The Tropicana

 

This case also involves the Teamster pension fund. But unlike Argent, it was a loan not granted that paved the way for Kansas City to take control of the casino and launch another skimming operation. It began in 1975 when Joe Agosto, an affiliate of Nick Civella’s Kansas City family, made a move to gain influence at the Tropicana.

 

Agosto was born Vincenzo Pianetti in 1927. Information on his early years is vague. There are even conflicting reports as to exactly where he was born, whether in Italy or Cleveland. Whichever the case, Agosto ended up in Seattle and eventually Las Vegas. He got his foot in the door at the Trop by assuming the title of manager of the Follies Bergėre show. The hotel didn’t employ him, however; he was an employee of the production company.

 

That April, the U.S. Immigration Service arrested Agosto as an illegal alien. He quickly obtained the services of Oscar Goodman and beat the immigration charge. Clear of that, he began conspiring with Nick Civella on how he could best infiltrate the financially troubled casino and protect himself from outside interference. Agosto, with Civella’s backing and support, proceeded with his plans to gain influence over the Doumani brothers, owners of the Tropicana. In conjunction with that goal, a loan application by the Tropicana pending before the Teamster Central States Pension Fund was denied, easily delivered by Civella’s friend Roy Williams. With their financial lifeline off the table, the Doumanis were susceptible to Agosto’s overtures, and he soon had a voice in the Trop’s management and operations.

 

Agosto maintained regular contact with Carl DeLuna in order to provide reports on his progress and receive guidance. Kansas City, meanwhile, had a man they felt was able to set up and operate the skim. Carl Thomas was already licensed through his operation of the Bingo Palace and Slots-A-Fun casino, and was trusted by the Civella family. Following instructions, Agosto brought Thomas on board.

 

But late that year before the skim got off the ground, a snag developed that stalled the gangster’s plans for over two years. The cash-strapped hotel came under the control of a new majority owner when chemical heiress Mitzi Stauffer Briggs purchased 51% of the Trop’s stock. And right off the bat, Mitzi didn’t trust Agosto and curtailed his role in running the casino. That prompted an all-out effort by Agosto to gain her confidence. By 1977, he had succeeded and was effectively running the hotel and casino. Carl Thomas did his duty and designed the skim. At his suggestion, Agosto hired Donald Shepard as casino manager and Billy Caldwell as assistant manager.

 

In March 1978, Agosto and Thomas spoke with Nick Civella in Los Angeles. They announced that with their plans and personnel in place, they were ready to go. Civella gave his approval. The first $1,500 dollars was skimmed in April by Shepard and transported to Kansas City by Carl DeLuna. In May, Shepard hired Jay Gould as cashier to steal money directly from the cashier’s cage and falsify fill slips to account for the missing money. From June through October, Shepard, Caldwell, and Gould stole $40,000 per month and gave it to Agosto. The money was then passed on to a courier named Carl Caruso for transport to Kansas City. Caruso turned the loot over to Civella’s man, Charles Moretina.

 

Caruso made at least 18 trips between Las Vegas and Kansas City and was paid $1,000 after each delivery. Anthony Chiavola, Sr., Civella’s nephew and a Chicago police officer, assisted in the operation by getting Chicago’s share of the skim to Joe Aiuppa and underboss John Cerone.

 

The operation seemed to be perking right along, but in late September another potential problem arose. Agosto and the Civellas became suspicious that Shepard or his subordinates might be doing some unauthorized skimming. At Agosto’s suggestion, Nick Civella ordered the skimming suspended in November and December so that Carl Thomas could find out if someone was skimming the skim. Unfortunately for Agosto, Civella authorized a temporary halt in the stealing, but not in the payments to Kansas City. Since the problems had arisen on his watch, Agosto had to send the family $50,000 and $60,000 of his own money during the two months of downtime. But it wasn’t a total loss for Joe. He was later reimbursed $30,000, which Shepard pilfered from the Tropicana.

 

On November 26, Agosto and Thomas flew to Kansas City to meet with the Civellas and DeLuna. They explained that Thomas’ survey had been inconclusive, but they did have some ideas on improving the efficiency of the operation. Civella agreed that the skimming would resume in January.

 

The conspirators were unaware at the time that their homes and businesses were the subject of electronic and visual surveillance by the government. On February 14, 1979 — the same day Carl DeLuna’s home was raided — the FBI nabbed Caruso with $80,000 in skim money. The skimming of the Tropicana was over. Although the actual skim only occurred over a period of 11 months, during two of which the operation was suspended, the overall conspiracy to steal from the casino covered four years, 1975 to 1979.

 

Nick Civella had an even more serious problem than the Tropicana investigation. The Kansas City boss had been convicted in 1975 on gambling charges unrelated to Las Vegas. After exhausting his appeals, he went to prison in 1977. He was given an early release 20 months later due to health problems: He had cancer. Shortly after getting out, he was indicted again for attempting to bribe a prison official in an effort to get favorable treatment for his nephew, who was incarcerated. Convicted in July 1980, he was sentenced to a four-year stretch. So Nick was already behind bars in November 1981 when he and ten others were indicted in the Tropicana case. His lawyer in that matter — Oscar Goodman — successfully got the charges against Nick severed from the other defendants on the basis of his client’s poor health. On March 1, 1983, with his physical condition rapidly deteriorating, Civella was released to his family so he could spend his final days at home. He died on March 12, having never faced justice in either the Tropicana or Argent cases.

 

The 10 remaining defendants stood trial in 1983. Three of them, Donald Shepard, Billy Caldwell, and Joe Agosto, entered guilty pleas prior to trial. As a part of his plea arrangement, Agosto became the government’s key witness. Carl Caruso pled guilty during the trial. And Peter Tamburello was acquitted. Carl Civella, Carl DeLuna  (represented by Oscar Goodman), Charles Moretina, Anthony Chiavola, Sr., and Carl Thomas were all convicted.

 

In a memorandum to the judge regarding the case, prosecutors wrote, “These defendants have dealt a severe blow to the state and the industry and have made a mockery of the Nevada regulatory procedures.” At sentencing the judge dealt a severe blow to the defendants.

 

DeLuna was sentenced to 30 years, Civella got 35 years, Moretina was ordered to serve 20 years of incarceration followed by five years of probation, and Chiavola drew 15 years. Carl Thomas was initially sentenced to 15 years. That term was later reduced to two years when he agreed to be a cooperative government witness at the Argent trial.

 

Joe Agosto died shortly afterward of natural causes. As far as is known, neither the Doumani brothers nor Mitzi Briggs were aware of the skimming operation. Mitzi Briggs later went bankrupt.

 

The ensuing appeals filed by those convicted in both the Tropicana and Argent cases were unsuccessful.

               

*Note: Carl DeLuna passed away from natural causes on July 21, 2008.

 

Next: The investigation by the FBI’s Las Vegas field office

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14 Responses to “Skimming the Las Vegas Casinos — Part II”

  1. Brett Says:

    I happen to be related to Carl Thomas and I am always amazed at how the story is told about the great skim of Vegas and how Carl was the skim master. Then for some reason the Carl Thomas story kind of gets pushed aside. I am sure there is a story there with a good investigative reporter! I know that his widow still lives in the same house they shared together in Vegas. I am sure she could really tell a lot about what happened from that side of it all. They where very good at hiding all the questionable things that where going on at that time. I believe she thinks we don’t know about it all. there is a picture of the car that he supposedly had a one car crash driving from vegas to reno on the internet. It is a Suburban and is flatter then a pancake. then it was reported that he had two ounces of cocaine in his pocket! I know there is a story here can you tell me anything about all that?

  2. Sarah K Says:

    Great story and research! I find the Vegas mob trials of the 1980’s fascinating. Such an incredible amount of work by the government. Yet had it not been for DeLuna’s meticulous record book with details of the skim, we perhaps wouldn’t have corporate Vegas today.

    Sarah, Las Vegas City Center

  3. Dave Says:

    I wonder if anyone can tell me why nothing is mentioned about Anthony Milano or his sons in all of this. Thank you

  4. Michael kaufman Says:

    I was born in Kansas City Missouri in 1952. My father loved las Vegas and the family went on many Complementary trips to Vegas. The Stardust was
    The first Vegas hotel I stayed in probably in 1966. We went on any other trips staying at the Desert Inn and finally The International Hotel. My father went by himself on many occasions as a guest of Carl Caruso who ran Junkets. I met many interesting Casino Managers and Hosts. Pit bosses and
    And guys that came from Kansas City to play. I’m looking for information on
    Artie Newman who had an office with another fe
    Fellow I believe Jake something that operated at the International Hotel.

    • r m kaim Says:

      Artie Newman was at the Flamingo for many many years and ended up at the Las Vegas Hilton in the early 80’s. a side story told to me is that Artie’s wife was previously married to a New York mob front man named Sammy Krakower who himself ended up marrying a great aunt of mine.

  5. cat Says:

    to brett and bob im also related to carl sr, he is my grandpa

  6. Brittany Gordon Says:

    Here’s another relative here to Carl Thomas Sr. My dad is Don Gordon, him and Carl were cousins.

    • Dan C Says:

      I remember Don Gordon well as I worked at the Bingo Palace / Palace Station from 77 through 95. It irritates me though when I hear Station Casino press releases state that the place was started by Frank Fertitta Jr back in 1976. All those that worked there during the Bingo Palace period know who really started it, Carl.

  7. Ellie Says:

    Carl and frank frattita were best buddies when running bingo palace casino back in 1978 when I worked there. I heard frank came out of Galveston, tx family. Frattita came out smelling like a rose though because I read his obit and he was described as a philanthropist being he gave soooo much money to the Vegas community and unlv. Carl took the hit I think because he was going to testify against frank for gaming commission in Midwest.

  8. Tony Spilotro | Gangland Wire Says:

    […] the below audio, Tuffy DeLuna discusses with Joe Agosto the problem of employee stealing from the casino. They are talking about […]

  9. Dennis Griffin Says:

    Please be advised I wrote The Battle for Las Vegas. It is my material and this is my blog.

    Dennis N. Griffin

  10. Tropicana Casino Skimming - Gangland Wire Says:

    […] Don Shepard (Tropicana employee) is Pecoradu (Sicilian for Shepherd) […]

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