Turning Point

April 30, 2008

By Dennis N. Griffin


Background

In the 1970s and through the mid-1980s, the Chicago Outfit was the dominant organized crime family in Las Vegas, with business interests in several casinos. During those years the Outfit and its colleagues in Kansas City, Milwaukee, and Cleveland were using Sin City as a cash cow. Commonly referred to as the “skim,” unreported revenue from certain casinos was making its way out of Vegas by the bag full and ending up in the coffers of the crime bosses in those four locations.

The skim involved large amounts of money. The operation had to be properly set up and well managed to ensure a smooth cash flow. To accomplish that goal, the gangsters brought in a front man with no criminal record to purchase several casinos. Allen R. Glick, doing business as the Argent Corporation (Allen R. Glick Enterprises) purchased the Stardust, Fremont, Hacienda, and Marina. They next installed Frank “Lefty” Rosenthal as their inside man, and the real boss of the casino operations. Rosenthal was a Chicago native and considered to be a genius when it came to oddsmaking and sports betting. Under Lefty’s supervision the casino count rooms were accessible to mob couriers.

But even with the competent Rosenthal in charge, there remained room for problems. What if an outsider tried to muscle in on the operation? Or just as bad, suppose one of their own decided to skim the skim? To guard against such possibilities the Chicago bosses decided to send someone to Vegas to give Rosenthal a hand should trouble arise. The successful applicant had to be a person with the kind of reputation that would deter interlopers from horning in, and make internal theft too risky to try. But the mob’s outside man had to be capable of action as well as threats. In other words, he had to be a man who would do whatever it took to protect the Outfit’s interests. So, in 1971, 33-year-old Tony Spilotro, considered by many to be the “ultimate enforcer,” was sent to the burgeoning gambling and entertainment oasis in the desert. Spilotro, sometimes called “tough Tony,” or “the Ant,” was a made man of the Outfit and a childhood friend of Rosenthal’s. He was known as a man who could be counted on to get the job done.

Being an ambitious sort, Tony quickly recognized that there were other criminal opportunities in his new hometown besides skimming from the casinos. Street crimes ranging from loan sharking to burglary, robbery, arson, and fencing stolen property were all in play. It wasn’t very long before Tony had his hands into every one of these areas. As the scope of his criminal endeavors grew, Tony brought in other heavies from Chicago to fill out his gang. The five-foot-six-inch gangster was soon being called the “King of the Strip.”

Federal and local law enforcement recognized the need to rid the casinos of the hidden ownership and control of the mob, and shut down Spilotro’s street rackets. They declared war on organized crime and the fight was on. The struggle between the law and the criminals ebbed and flowed, with victories and setbacks for each. On the mob side, Tony Spilotro had a strong advocate in the form of criminal defense attorney and future Mayor of Las Vegas, Oscar Goodman. During nearly 15 years of investigations and indictments, Tony was never convicted of any serious charges.

What the lawmen needed to break the standoff was a decisive event that went in their favor, something that would drive a wedge between the gangsters and lead to an informant or a cooperating witness. That much-needed break occurred on July 4, 1981, when Spilotro’s crew of burglars known as the Hole in the Wall Gang went after a million dollar score. Their target that night was a business called Bertha’s Gifts & Home Furnishings on East Sahara.

The caper was carefully planned by the burglars, but the lawmen were ready for them. Through excellent intelligence work the authorities had a source inside the gang. They knew well in advance what the crooks had planned for that evening. As darkness settled in and fireworks lit up the sky over Las Vegas, the bad guys burgled and the law sprung its trap.

Bertha’s

It was the Fourth of July and it was hot. It was always hot in Las Vegas in July, but to many of the 40 or so FBI agents and Metropolitan Police Department officers working a special assignment it seemed even hotter than normal. And that was only the temperature. If things worked out as planned, the heat would get even more intense for Tony Spilotro’s Hole in the Wall Gang (HITWG).

The center of the law’s focus that day was Bertha’s Gifts & Home Furnishings, located at 896 East Sahara. The store was in an upscale single story building, and included a jewelry shop on premise. The lawmen believed a burglary was going to take place at that location in the evening, with the thieves expecting a take of around $1 million in cash and jewelry. That kind of haul was a big score, especially in 1981 money, and the HITWG crew that had been assembled to carry out the burglary reflected that. It was comprised of criminal stars Frank Cullotta, Wayne Matecki, the homicidal Larry Neumann, Leo Guardino, Ernie Davino, and disgraced former cop Joe Blasko.

Their opposition was headed on-scene by the FBI’s Charlie Parsons and Joe Gersky, and Metro Lt. Gene Smith. Their bosses - Joe Yablonsky and Kent Clifford - were nearby, and available if needed to make any necessary command decisions.

Although the actual crime wasn’t to take place until after dark, the lawmen were at work much earlier in the day. After weeks of preparation, the final planning had to be done, and a command post and necessary equipment needed to be set up. Surveillance teams were active around Bertha’s all day, monitoring activity and making sure they were thoroughly familiar with the area. An eye had to be kept on the bad guys also, looking for any indication of a change in their plans or other potential problems.

With two different agencies participating in the operation, communications were particularly important. Their radios had to have a common frequency, but one that wasn’t known to the burglars. A secret frequency was obtained and divulged only to those with a need to know. It was decided to utilize the regular frequencies, those likely to be monitored by the thieves, to disseminate bogus information as to the location and status of personnel. In the late afternoon the balance of the agents and officers deployed to the field.

The main observation point to observe the roof of Bertha’s was from the top of a nearby five-story building. Charlie Parsons and Joe Gersky took up positions there, along with the equipment and personnel to videotape the scene. Gene Smith worked with the surveillance detail, riding with an FBI agent. The burglars were not to be arrested until they actually entered the building, making the crime a burglary rather than the lesser charge of an attempted crime.

It was believed that at least four vehicles would be used by the crooks, three of them to conduct counter-surveillance activities, and one to transport the three men who would go on the roof and do the break-in. Frank Cullotta, operating a 1981 Buick, Larry Neumann, in a late model Cadillac, and an unknown individual - possibly the fired cop Joe Blasko - in a white commercial van with the name of a cleaning business and a “Superman” logo on the side, would represent the gang’s forces on the ground. The occupants of all three vehicles would be equipped with two-way radios and police scanners. The burglars, Matecki, Guardino and Davino, would arrive by station wagon and go on the roof to gain entry to the store. They would also have radios to keep in contact with the lookouts on the ground.

At around 7:00 p.m. the HITWG counter-surveillance units began to appear. Cullotta and Neumann repeatedly drove around the area, apparently checking for a police presence or anything that seemed suspicious. In turn, they were being tailed by cops and agents. The white van took up a position in the driveway to the Commercial Center shopping plaza, across the street from Bertha’s. From this vantage point, the operator had an unimpeded view of the store. As the man in the van watched, he was under constant surveillance himself.

While this game of cat-and-mouse was going on, the whole operation almost came to an abrupt end. Gene Smith and the FBI agent were stopped at a traffic light when a car pulled up next to them. Out of the corner of his eye, Smith saw the driver of the other car was none other than Frank Cullotta. The cop − very well known to Cullotta − went to the floor of the vehicle as fast as he could. The light changed and Cullotta pulled away. It is almost a certainty that had Smith been spotted in the area the burglars would have scrubbed their plans.

At approximately 9:00 p.m. a station wagon bearing Matecki, Guardino, and Davino arrived and parked behind a Chinese restaurant located at 1000 East Sahara. A police surveillance vehicle was parked nearby, but went unnoticed by the burglars. The three men exited their vehicle and unloaded tools and equipment, including a ladder. They next proceeded to the east side of Bertha’s and gained access to the roof, hauling their gear up with them.

From the roof a few buildings away, the videotape was rolling. The burglars were obviously unaware they were walking into an ambush. Utilizing electric outlets located in the air conditioning units, they went about their business, using power and hand tools to penetrate the store’s roof. Everything was going pretty smooth for both sides. Other than Lt. Smith’s close call with Cullotta, the only thing that had gone wrong for the law so far was that one of the surveillance teams had to be treated for dehydration.

Agent Dennis Arnoldy was in charge of a four-man team, two FBI and two Metro, responsible for arresting the thieves on the roof. They relaxed as best the could in the back of a pickup truck in the parking lot of the Sahara Hotel & Casino, located a few blocks from Bertha’s.

Arnoldy and his team weren’t expecting their prey or the lookouts to be armed. These were veteran criminals, and they knew that if they were caught with guns the charges against them would be more serious, and the potential penalties would be greatly increased. The lawmen certainly hoped that would be the case.

As the burglars progressed in their efforts to get through the roof, Arnoldy and his men made their way to the scene. Using a ladder they got onto the roof. An impressive fireworks display exploded in the sky over Las Vegas as the lawmen secreted themselves behind vents and air conditioning units to wait for the pre-determined arrest signal to be broadcast. At that point a minor snag developed when the burglars broke through, only to realize they hadn’t hit their target: the store’s safe. Recovering quickly, they soon made another entry in the right place. At approximately 10:40 p.m. Leo Guardino dropped through the opening and into the store, carrying the tools necessary to break into the safe. The act of burglary was then complete.

Arnoldy, shotgun at the ready, heard a broadcast over his radio that he thought was the arrest signal. But due to the noise from the constantly running air conditioners he couldn’t be sure. He hesitated for just a few seconds and then directed his team into action. When Davino and Matecki detected the lawmen approaching they scurried to the front of the building and possible escape. But when they looked down on Sahara they saw a number of agents and officers on the sidewalk below them pointing weapons in their direction. Knowing the game was up they surrendered without incident. A few seconds later Guardino’s head popped up through the hole in the roof and he was taken into custody.

On street level, other agents and cops were already busy apprehending the lookouts. Neumann and Cullotta were nabbed a short distance from Bertha’s. Agent Gary Magnesen and two Metro officers arrested Joe Blasko in the white van. In a 2004 interview Magnesen recalled the incident.

“One of the Metro officers was in uniform and driving a black and white. Our plan was for the marked car to come up on the van from the rear with its lights flashing and headlights illuminating the van’s interior. Another detective, armed with a shotgun, and I with a pistol, approached the van from the front and ordered the occupant out. Up until that point we thought it was Blasko inside, but we weren’t positive. In fact, some of the cops didn’t want to believe that their former colleague had really gone to the dark side. When Blasko got out the cop recognized him and said, ‘Son of a bitch.’ This was the best joint operation I was part of while in the Bureau.”

No weapons were found on Blasko or any of the other arrestees.

When agents and officers entered the store they found that the gang’s second hole in the roof had been accurate, and was located directly over the safe. Burglary tools were found nearby and several holes had been drilled into the safe in an effort to open it. Leo Guardino had been a busy man during his short time inside the building.

Joe Yablonsky and Kent Clifford held a press conference shortly after the arrests were made. They told reporters that Frank Cullotta, age 43, Joe Blasko, age 45, Leo Guardino, age 47 and Ernest Davino, age 34, all of Las Vegas, were in custody. Also arrested were Lawrence Neumann, age 53, of McHenry, Illinois, and Wayne Matecki, age 30, of Northridge, Illinois. The six men were charged with Burglary, Conspiracy to Commit Burglary, Attempted Grand Larceny, and Possession of Burglary Tools. They were all lodged in the Clark County Jail.

When reporters asked how the lawmen happened to be in the area at the time of the burglary, Yablonsky and Clifford weren’t very specific. They denied that the arrests were the result of an informant’s tip. But they did admit being aware that Bertha’s was going to be hit on the Fourth of July. The story the reporters were given that night was not exactly true, though. And there had really been seven gang members present at Bertha’s, not six.

What the reporters weren’t told was that Sal Romano, an expert at disabling alarm systems, was working as a part of the HITWG’s counter-surveillance team that night. Unbeknown to the rest of the crew, two agents from the FBI’s Tucson office, Donn Sickles and Bill Christensen, had flipped Romano several months earlier. Based on information he provided, the lawmen knew virtually every detail of the gang’s plan well before July Fourth. When the signal was broadcast to arrest the burglars, Romano was removed from the area and placed in the Witness Protection Program. His role in the Bertha’s operation wasn’t made public until several years later.

In the aftermath of Bertha’s, a rift developed between Tony Spilotro and Frank Cullotta. In April 1982, Cullotta rolled and became a government witness, sending shockwaves through the criminal underworld from Las Vegas to Chicago. Cullotta’s defection signaled the beginning of the end of the Outfit’s hidden ownership and control of the Las Vegas casinos. It also sounded the death knell for Tony Spilotro’s reign in Sin City.

Before the law could put Tony away, the ferocious gangster was dealt with by his own kind. Having fallen out of favor with the Chicago bosses, Tony was murdered on their orders in June of 1986. His death marked the end of one of the most exciting eras in Las Vegas mob history.


In Cold Blog is a true crime blog founded by best selling author Corey Mitchell, and is written by award winning journalists, authors, criminal justice professionals and others.

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