Identified as both Castellano's likely murderer and his successor, Gotti rose to fame throughout 1986. At the time of his takeover, the Gambino family was regarded as the most powerful American Mafia family, with an annual income of $500 million. In the book
Underboss, Gravano estimated that Gotti himself had an annual income of no less than $5 million during his years as boss, and more likely between $10 million and $12 million. To protect himself legally, Gotti banned members of the family from accepting
plea bargains that acknowledged the existence of the organization.
"The Teflon Don" Gotti often smiled and waved at news cameras at his trials, which gained him favor with some of the general public. It was later revealed that Gambino mobsters had severed Piecyk's brake lines, made threatening phone calls and
stalked Piecyk before the trial. On April 13, 1986, Frank DeCicco was killed in a
car bombing following a visit to Castellano loyalist
James Failla. The bombing was carried out by
Victor Amuso and
Anthony Casso of the Lucchese family, under orders of Gigante and Lucchese boss
Anthony Corallo, to avenge Castellano and Bilotti by killing their successors; Gotti also planned to visit Failla that day but canceled, and the bomb was detonated after a soldier who rode with DeCicco was mistaken for the boss. Bombs had long been banned by the Mafia out of concern that it would put innocent people in harm's way, leading the Gambinos to initially suspect that "
zips"—
Sicilian mafiosi working in the U.S.—were behind it; zips were well known for using bombs. Following the bombing, Judge
Eugene Nickerson, presiding over Gotti's racketeering trial, rescheduled to avoid a jury tainted by the resulting publicity, while Giacalone had Gotti's
bail revoked due to evidence of
witness intimidation in the Piecyk case. From jail, Gotti ordered the murder of DiBernardo by Gravano; both DiBernardo and Ruggiero had been vying to succeed DeCicco until Ruggiero accused DiBernardo of challenging Gotti's leadership. When Ruggiero, also under indictment, had his bail revoked for his abrasive behavior in preliminary hearings, a frustrated Gotti instead promoted Armone to underboss.
Jury selection for the racketeering case began again in August 1986, with Gotti standing trial alongside his ex-companion Johnson (who, despite being exposed as an informant, refused to
turn state's evidence),
Leonard DiMaria,
Tony Rampino,
Nicholas Corozzo and
John Carneglia. At this point, the Gambino family were able to compromise the case when George Pape hid his friendship with Radonjić and was empaneled as juror No. 11. In the trial's opening statements on September 25, Gotti's
defense attorney
Bruce Cutler denied the existence of the Gambino family and framed the government's entire effort as a personal vendetta. His main strategy was to attack the credibility of Giacalone's witnesses by discussing the crimes they committed before turning state's evidence. During Gotti's defense, Cutler called bank robber Matthew Traynor, a would-be prosecution witness dropped for unreliability, who testified that Giacalone offered him drugs and her underwear as a
masturbation aid in exchange for his testimony; Traynor's allegations would be dismissed by Judge Nickerson as "wholly unbelievable" after the trial, and he was subsequently convicted of
perjury. Despite Cutler's defense and critiques about the prosecution's performance, according to mob writers Jerry Capeci and Gene Mustain, when the jury's deliberations began, a majority were in favor of convicting Gotti. However, due to Pape's misconduct, Gotti knew from the beginning of the trial that he could do no worse than a
hung jury. During deliberations, Pape held out for
acquittal until the rest of the jury began to fear their own safety would be compromised. and sentenced to three years in prison. In the face of previous Mafia convictions, particularly the success of the Mafia Commission Trial, Gotti's acquittal was a major upset that further added to his reputation. The American media dubbed him "The Teflon Don" in reference to the failure of any charges to "stick."
Reorganization surveillance photograph of Gotti, Gravano, Amuso and Casso While Gotti himself had escaped conviction, his associates were not as fortunate. The other two men in the Gambino administration, underboss Armone and
consigliere Gallo, had been indicted on racketeering charges in 1986, and were both convicted in December 1987. Ruggiero and Gene Gotti's heroin trial also commenced in June of that year. Prior to their convictions, Gotti demoted Gallo, who retired to allow Gravano to take his place, while slating
Frank LoCascio to serve as acting underboss in the event of Armone's imprisonment. The Gambino family also worked to compromise the heroin trial's jury, resulting in two
mistrials. When the terminally ill Ruggiero was severed and released in 1989, Gotti refused to contact him, blaming him for the family's misfortunes. According to Gravano, Gotti also considered murdering Ruggiero, and when he finally died, "I literally had to drag him to the funeral." Beginning in January 1988, Gotti, against Gravano's advice, required his
capos to meet with him at the Ravenite Social Club once a week. Regarded by Gene as an unnecessary,
vanity-inspired risk, and by FBI Gambino squad leader Bruce Mouw as antithetical to the "
secret society," this move allowed FBI surveillance to record and identify much of the Gambino hierarchy. It also provided strong circumstantial evidence that Gotti was a boss; long-standing protocol in the Mafia requires public demonstrations of loyalty to the boss. Two years earlier, Casso had been injured in an unauthorized hit by Gambino
capo Mickey Paradiso. In 1987, the FBI warned Gotti they had recorded Genovese
consigliere Louis Manna discussing another hit on Gotti and his brother. The bosses also agreed to allow Colombo acting boss
Victor Orena to join the Commission, but Gigante, wary of giving Gotti a majority by admitting another ally, blocked the reentry of Massino and the Bonannos. Gotti was also able to influence the
New Jersey-based
DeCavalcante crime family in 1988. According to the DeCavalcante
capo-turned-informant Anthony Rotondo, Gotti attended his father's wake with numerous other Gambino mobsters in a "show of force" and coerced boss
Giovanni Riggi into agreeing to run his family on the Gambinos' behalf. The DeCavalcantes remained in the Gambino family's sphere of influence until Gotti's imprisonment. Gotti's son, John Jr., was initiated into the Gambino family on Christmas Eve 1988. According to fellow mobster
Michael DiLeonardo, initiated on the same night, Gravano held the ceremony to keep Gotti from being accused of
nepotism. In the back of the police car, he remarked, "Three to one I beat this charge." was believed to have ordered an attack on a Gambino-associated restaurant that had snubbed the union and was subsequently shot and wounded by the Westies. By this time, the FBI had cultivated new informants and learned part of the reason the Ravenite bug failed was because Gotti would hold sensitive conversations elsewhere, either in a rear hallway in the building the club occupied, or in an apartment in its upper floors where the friendly widow of a Gambino soldier lived; by November 1989, both locations were bugged. The apartment bug was particularly fruitful due to Gotti's frankness as he discussed his position as boss in meetings there. In a December 12 conversation with Locascio, Gotti plainly acknowledged ordering the murders of DiBernardo and Liborio Milito — the latter being one of Gravano's partners, killed for insubordination. He also announced his intent to kill soldier Louis DiBono, who had ignored a summons to meet with Gotti to discuss his mismanagement of a drywall business he held with Gotti and Gravano. The FBI, however, misheard the namedrop and failed to warn DiBono, who was killed on October 4, 1990. In another taped meeting on January 4, 1990, Gotti promoted Gravano to underboss, preferring him to lead the family if Gotti was convicted in the assault case. State prosecutors linked Gotti to the assault case with a recording of him discussing O'Connor and announcing his intention to "bust him up," as well as the testimony of Westies gangster
James McElroy. However, Gotti was acquitted of all six assault and
conspiracy charges at trial on February 9, 1990. After the trial, there were firework displays by locals. Jules J. Bonavolonta, director of the FBI's organized crime division in New York, stated, "With all this media coverage he's beginning to look like a
folk hero... What the public should realize is that he is the boss of the largest
Cosa Nostra family, that he surrounds himself with ruthless killers and that he is flat out a criminal." It later emerged that FBI bugs had apparently caught Gotti discussing plans to fix the jury as he had in the 1986–87 racketeering case. To the outrage of Manhattan
district attorney Robert Morgenthau and state organized crime taskforce chief
Ronald Goldstock, the FBI and federal prosecutors chose not to reveal this information to them. Morgenthau later said that had he known about these bugged conversations, he would have asked for a
mistrial. == 1992 conviction ==