Origins Background ), founder of the
Five Points Gang The first published account of what became the Mafia in the United States dates to the late 1860s.
New Orleans newspapers reported that the city was experiencing a war between Sicilian gangs. The names of these gangs corresponded to the Sicilian cities their members came from —
Palermo,
Trapani, and
Messina. Sicilian crime groups in the
United States first became influential in the
New York metropolitan area, gradually progressing from small neighborhood operations in poor
Italian ghettos to citywide and eventually national organizations. "
The Black Hand" was a name given to an
extortion method used in Italian neighborhoods at the turn of the 20th century. It has been sometimes mistaken for the Mafia itself, which it is not. The Black Hand was a criminal society, but there were many small Black Hand gangs. Black Hand extortion was often (wrongly) viewed as the activity of a single organization, because Black Hand criminals in Italian communities throughout the United States used the same methods of extortion. Giuseppe Esposito was the first known Mafia member to immigrate to the United States.
Prohibition era On January 16, 1919,
prohibition began in the United States with the
18th Amendment to the United States Constitution making it illegal to manufacture, transport, or sell
alcohol. Despite these bans, there was still a very high demand for it from the public. This created an atmosphere that tolerated crime as a means to provide liquor to the public, even among the police and city politicians. While not explicitly related to Mafia involvement, the murder rate during the Prohibition era rose over from 6.8 per 100,000 individuals to and within the first three months succeeding the Eighteenth Amendment, a half a million dollars in
bonded whiskey was stolen from government warehouses. The profits that could be made from selling and distributing alcohol were worth the risk of punishment from the government, which had a difficult time enforcing prohibition. There were over 900,000 cases of liquor shipped to the borders of U.S. cities. Criminal gangs and politicians saw the opportunity to make fortunes and began shipping larger quantities of alcohol to U.S. cities. The majority of the alcohol was imported from Canada, the Caribbean, and the American Midwest where
stills manufactured illegal alcohol. 's
culturally publicized violent rise to power in
Chicago made him an everlasting criminal figure of the Prohibition era. In the early 1920s, fascist
Benito Mussolini took control of Italy and waves of Italian immigrants fled to the United States. Sicilian Mafia members also fled to the United States, as Mussolini cracked down on Mafia activities in Italy. Most Italian immigrants resided in
tenement buildings. As a way to escape the poor lifestyle, some Italian immigrants chose to join the American Mafia. The Mafia took advantage of prohibition and began selling illegal alcohol. The profits from bootlegging far exceeded the traditional crimes of protection, extortion, gambling, and prostitution. Prohibition allowed Mafia families to make fortunes. As prohibition continued, victorious factions went on to dominate organized crime in their respective cities, setting up the family structure of each city. The bootlegging industry organized members of these gangs before they were distinguished as today's known families. The new industry required members at all different employment levels, such as bosses, lawyers, truckers, and even members to eliminate competitors through threat or force. Gangs hijacked each other's alcohol shipments, forcing rivals to pay them for "protection" to leave their operations alone, and armed guards almost invariably accompanied the caravans that delivered the liquor. In the 1920s, Italian Mafia families began waging wars for absolute control over lucrative bootlegging rackets. As the violence erupted, Italians fought Irish and Jewish ethnic gangs for control of bootlegging in their respective territories. In New York City,
Frankie Yale waged war with the Irish-American
White Hand Gang. In Chicago,
Al Capone and his
family massacred the
North Side Gang, another Irish-American outfit. In New York City, by the end of the 1920s, two factions of organized crime had emerged to fight for control of the criminal one led by
Joe Masseria and the other by
Salvatore Maranzano.
The Commission chart of American Mafia bosses across the country in 1963. As an alternative to the previous despotic Mafia practice of naming a single Mafia boss as
capo di tutti capi, or "boss of all bosses", Luciano created
The Commission in 1931, By mid-century, there were 26 official Commission-sanctioned Mafia crime families, each based in a different city (except for the
Five Families which were all based in New York). Each family operated independently from the others and generally had exclusive territory it controlled. In the mid-20th century, the Mafia was reputed to have infiltrated many
labor unions in the United States, most notably the
Teamsters and
International Longshoremen's Association. In addition they could raid the unions' health and pension funds, extort businesses with threats of a workers' strike and participate in
bid rigging. In New York City, most construction projects could not be performed without the
Five Families' approval. In the
port and
loading dock industries, the Mafia bribed union members to tip them off to valuable items being brought in. Mobsters would then steal these products and
fence the stolen merchandise. in 1948
Meyer Lansky made inroads into the casino industry in Cuba during the 1930s while the Mafia was already involved in exporting Cuban sugar and rum. When his friend
Fulgencio Batista became president of Cuba in 1952, several Mafia bosses were able to make legitimate investments in legalized casinos. One estimate of the number of casinos mobsters owned was no less than 19. When money came into the
counting room, hired men
skimmed cash before it was recorded, then delivered it to their respective bosses. Following Valachi's testimony, the Mafia could no longer operate completely in the shadows. The FBI put a lot more effort and resources into organized crime activities nationwide and created the
Organized Crime Strike Force in various cities. While all this created more pressure on the Mafia, it did little, however, to curb its criminal activities. Progress was made by the beginning of the 1980s, when the FBI was able to rid Las Vegas casinos of Mafia control and made a determined effort to loosen the Mafia's stranglehold on labor unions.
The Mafia's involvement in the US economy , head of the Gambino crime family By the late 1970s, the Mafia were involved in many industries, One of the most lucrative gains for the Mafia was through gas tax fraud. They created schemes to keep the money that they owed in taxes after the sale of millions of dollars' worth of wholesale petroleum. This allowed them to sell more gasoline at even lower prices.
Michael Franzese, also known as the Yuppie Don, ran and organized a gas scandal and stole over $290 million in gasoline taxes by evading the
Internal Revenue Service (IRS) and shutting down the gas station before government officials could make him pay what he owed. Franzese was caught in 1985. Labor racketeering helped the Mafia control many industries from a macroeconomic scale. This tactic helped them grow in power and influence in many cities with big labor unions such as New York, Philadelphia, Chicago, Detroit and many others. Many members of the Mafia were enlisted in unions and even became union executives. The Mafia has controlled unions all over the U.S. to extort money and resources out of big business, with recent indictments of corruption involving the New Jersey Waterfront Union, the Concrete Workers Union, and the
Teamsters Union. Restaurants were yet another powerful means by which the Mafia could gain economic power. A large concentration of Mafia-owned restaurants was in New York City. Not only were they the setting of many killings and important meetings, but they were also an effective means of smuggling drugs and other illegal goods. From 1985 to 1987, Sicilian Mafiosi in the U.S. imported an estimated $1.65 billion worth of heroin
through pizzerias, hiding the cargo in various food products. Another one of the areas of the economy that the Mafia was most influential was
Las Vegas, Nevada, beginning just after World War II with the opening of the first gambling resort,
The Flamingo. as millions of dollars in capital flowing into new casino resorts laid the foundation for further economic growth. This capital did not come from one Mafia family alone, but many throughout the country seeking to gain even more power and wealth. Large profits from casinos, run as legitimate businesses, would help to finance many of the illegal activities of the Mafia from the 1950s into the 1980s. In the 1950s more Mafia-financed casinos were constructed, such as the
Stardust,
Sahara,
Tropicana,
Desert Inn, and
Riviera. Tourism in the city greatly increased through the 1960s and strengthened the local economy. The 1960s were also when the Mafia's influence in the Las Vegas economy began to dwindle, however.
The RICO Act When the
Racketeer Influenced and Corrupt Organizations Act (RICO Act) became federal law in 1970, it became a highly effective tool in prosecuting mobsters. It provides for extended criminal penalties for acts performed as part of an ongoing criminal organization. Violation of the act is punishable by up to 20 years in prison per count, up to $25,000 in fines, and the violator must forfeit all properties attained while violating the RICO Act. The RICO Act has proven to be a very powerful weapon because it attacks the entire corrupt entity instead of individuals who can easily be replaced with other organized crime members. with the help of informant
Sammy Gravano in exchange for
immunity from prosecution for his crimes. Aside from avoiding long prison stretches, the FBI could put mobsters in the
United States Federal Witness Protection Program, changing their identities and supporting them financially for life. This led to dozens of mobsters testifying and providing information during the 1990s, which led to the imprisonment of hundreds of other members. As a result, the Mafia has seen a major decline in its power and influence in organized crime since the 1990s. On January 9, 2003,
Bonanno crime family boss
Joseph Massino was arrested and indicted, alongside
Salvatore Vitale,
Frank Lino and capo Daniel Mongelli, in a comprehensive racketeering indictment. The charges against Massino himself included ordering the 1981 murder of
Dominick "Sonny Black" Napolitano. Massino's trial began on May 24, 2004, with judge
Nicholas Garaufis presiding and Greg D. Andres and Robert Henoch heading the prosecution. He now faced 11 RICO counts for seven murders (due to the prospect of prosecutors seeking the death penalty for the Sciascia murder, that case was severed to be tried separately), arson, extortion, loansharking, illegal gambling, and money laundering. After deliberating for five days, the jury found Massino guilty of all 11 counts on July 30, 2004. His sentencing was initially scheduled for October 12, and he was expected to receive a sentence of
life imprisonment with no possibility of parole. The jury also approved the prosecutors' recommended $10 million
forfeiture of the proceeds of his reign as Bonanno boss on the day of the verdict. Immediately after his July 30 conviction, as court was adjourned, Massino requested a meeting with Judge Garaufis, where he made his first offer to cooperate. He did so in hopes of sparing his life; he was facing the death penalty if found guilty of Sciascia's murder, as one of
John Ashcroft's final acts as Attorney General was to order federal prosecutors to seek the death penalty for Massino. Massino thus stood to be the first Mafia boss to be executed for his crimes, and the first mob boss to face the death penalty since
Lepke Buchalter was executed in 1944. Massino was the first sitting boss of a New York crime family to turn state's evidence, and the second in the history of the American Mafia to do so. (
Philadelphia crime family boss
Ralph Natale had flipped in 1999 when facing drug charges, though Natale was mostly a "front" boss while the
real boss of the Philadelphia Mafia used Natale as a diversion for authorities.) In the 21st century, the Mafia has continued to be involved in a broad spectrum of illegal activities. These include murder, extortion, corruption of public officials, gambling, infiltration of legitimate businesses, labor racketeering, loansharking,
tax fraud schemes and
stock-manipulation schemes. Although the Mafia used to be nationwide, today most of its activities are confined to the Northeast and Chicago. While other criminal organizations such as the
Russian Mafia, Chinese
Triads, Mexican
drug cartels and others have all grabbed a share of criminal activities, the Mafia continues to be the dominant criminal organization in these regions, partly due to its strict
hierarchical structure. To avoid FBI attention and prosecution, the modern Mafia also outsources much of its work to other criminal groups, such as
motorcycle gangs. ==Structure==