During the early 1930s, Luciano's crime family started taking over small-scale
prostitution operations in New York City. In June 1935, New York Governor
Herbert H. Lehman appointed Dewey, a
United States Attorney, as a special prosecutor to combat organized crime in the city. Dewey's assistant district attorney,
Eunice Carter, led an investigation that connected Luciano to this prostitution network. Carter began to build a case of prostitution racketeering founded on evidence from interviews with prostitutes and
wiretaps. On February 2, 1936, Dewey authorized a raid on 200
brothels in Manhattan and Brooklyn, earning him nationwide recognition as a major "gangbuster". He took measures to prevent
police corruption from impeding the raids: he assigned 160 police officers outside of the
New York City Police Department's (NYPD) vice squad to conduct the raids, and the officers were instructed to wait on street corners until they received their orders, minutes before the raids were to begin. Sixteen men and 87 women were arrested; however, unlike previous vice raids the arrestees were not released, but taken to Dewey's offices where Judge Philip J. McCook set minimum
bails of
US$10,000, far beyond their means to pay. Carter had built trust with a number of the arrested prostitutes and
madams, some of whom reported being beaten and abused by
mafiosi. She convinced many to testify rather than serve additional jail time. Three of the prostitutes identified Luciano as the ringleader to whom associates David Betillo and Thomas Pennochio ultimately reported. In late March 1936, after receiving a tip on his imminent arrest, Luciano fled to
Hot Springs, Arkansas. A New York detective in Hot Springs on a different assignment spotted Luciano and notified Dewey. On April 3, Luciano was arrested in Hot Springs on a criminal warrant from New York charging him with 90 counts of
compulsory prostitution. Luciano's lawyers in Arkansas began a fierce legal battle against
extradition. On April 6, Owney Madden, one-time owner of the Cotton Club, offered a $50,000
bribe to Arkansas Attorney General
Carl E. Bailey to facilitate Luciano's case: however, Bailey refused the bribe and immediately reported it. On April 17, after all of Luciano's legal options had been exhausted, Arkansas authorities handed him to three NYPD detectives for transport by train back to New York for trial. When the train reached
St. Louis, Missouri, the detectives and Luciano changed trains. During this switchover, they were guarded by 20 local policemen to prevent a mob rescue attempt. The party arrived in New York on April 18, and Luciano was
arraigned and jailed the following day after failing to post the US$350,000 bond set by McCook. On May 11, 1936, Luciano's
pandering trial began. Dewey personally
prosecuted the case that Carter had begun against Luciano and twelve co-defendants. On June 7, Luciano and his remaining eight co-defendants each were convicted on 62 counts of compulsory prostitution. On June 18, Luciano was sentenced to 30 to 50 years in state prison. In his book
Five Families, longtime
New York Times organized-crime columnist
Selwyn Raab wrote that a number of scholars have questioned whether Luciano was directly involved in the bonding combination. According to Raab, there was evidence that Luciano profited from prostitution and several members of his family ran a protection racket that ensnared many of New York's madams and
brothel keepers; however, he wrote that several Mafia and legal scholars believed that it would have been out of character for a crime boss of Luciano's stature to be directly involved in a prostitution ring. Raab wrote that the evidence Dewey presented against Luciano was "astonishingly thin" and argued that it would have been more appropriate to charge Luciano with extortion. Raab believed that Luciano's
defense team, led by attorney
George Morton Levy, erred in allowing him to take the stand in his own defense, opening the door for Dewey to attack his credibility on
cross-examination.
Prison Luciano continued to run his crime family from prison, relaying his orders through acting boss Genovese. In 1937 Genovese fled to
Naples to avoid an impending murder
indictment in New York, so Luciano appointed his
consigliere, Costello, as the new acting boss and the overseer of Luciano's interests. Luciano was first imprisoned at
Sing Sing Correctional Facility in
Ossining, New York. Later in 1936, authorities moved him to
Clinton Correctional Facility in
Dannemora, a remote facility far away from New York City. At Clinton, Betillo prepared special dishes for Luciano in a kitchen set aside by authorities. Luciano used his influence to help get the materials to build a
church at the prison, which became famous for being one of the only freestanding churches in the New York State correctional system and also for the fact that on the church's altar are two of the original doors from the
Victoria, the ship of
Ferdinand Magellan. Luciano's
legal appeals continued until October 10, 1938, when the
United States Supreme Court refused to review his case. At this point, Luciano stepped down as family boss and Costello formally replaced him. ==World War II, freedom, and deportation==