Alterie was considered the "flake" of the O'Banion gang. He once feigned insanity prior to a murder trial to give his criminal associates time to kill or intimidate witnesses. His act was so convincing that many considered him actually insane. Incensed by O'Banion's murder, Alterie publicly challenged his killers to a shootout on State Street. However, cooler heads within the North Side Gang were upset by Alterie's bravado; they worried that this would result in unwanted attention from both rival gangs and Chicago officials. Moran convinced Alterie to leave
Chicago until it was safe to return. Alterie chose to go to his Moonridge ranch in Colorado. However, he soon attracted unwanted attention from the Colorado authorities. In November 1932, Alterie was involved in a gangland shooting in
Glenwood Springs, Colorado. In February 1933, as part of a sentencing agreement, Alterie agreed to leave Colorado and not come back for a period of five years. At this point, Alterie returned to Chicago. Over the next few years, he briefly returned to Colorado several times, but kept his residence in Chicago. ==Return to Chicago and death==