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Sexpionage!...

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Parent Issue
Day
15
Month
October
Year
1976
OCR Text

I ; Sidney Korshak's crime syndicate ties first surfaced in 1 943 when labor racketeer Willie Bioff testified under oath that he had been introduced to Korshak by Charles "Cherry Nose" Gioe, an associate of mob boss Frank Nitti. Gioe called Korshak "our man." "Pay attention to him (Korshak)," Gioe advised Bioff. "Remember, any message he may deliver to you is a message from us." Korshak has been described by law enforcement officials as "the legal brains behind the ent iré mob." And Chicago columnist Irv Kupcinet asserted that Korshak is undoubtedly the highest-paid attorney in the United States. Very impressive for a man who does not practice law. Korshak calis himself a labor relations adviser and talent agent, but the words which best describe his career would be "fixer" and "finder." From October 1 974 to October 1975, Sidney Korshak was hired as a "labor consultant" for New York's Ma&ison Square Garden. In order to hire Korshak, the Garden fired New York's most reknown labor attorney, Theodore Kheel. Kheel had been paid $25,000 per year. Korshak got $50,000. Howard Berk, another Garden lawyer, told the Village Voice that there was no need to eraploy Korshak, and spokesmen for the Garden's two most important unions said Korshak was never involved in any labor negotiations wlüle his fírm was on the payroll. Curiously, Korshak vanished from the payroll the same week New York Magazine mentióned his relationship to Madison Square Garden. If Korshak never acted as the labor consultant he was hired to be, why did Madison Square Garden pay him S50,000? It turns out that Madison Square Garden Corporation owns the New York arena of the same name and two Chicago área racetracks, Arlington Park and Washington Park. Korshak's power base ís Chicago, and while he was employed with the Garden, his brother, Marshall, was Chicago's city treasurer. Marshall Korshak had also been an Illinois State Senator and Illinois State Revenues Director. As soon as Korshak affiliated with Madison Square Garden, the Garden 's _ tives began predicting that their two Chicago racetracks would receive extra days of racing from the Illinois Racing Board. A prophetic prediction. Washington Park's racing season grew from 50 days in 1974 to 67 days in 1976, an increase of 36%. It also gained preferred spring dates that had been assigned to rival Sportsman's Park. . Arlington Park's racing season grew from 84 days in 1974 to 109 in 1976, the longest season in its history, and an increase of 30%. The Madison Square Garden Corporation's fiscal report for 1975acknowledged that the increased profits from its Chicago racetracks were the corporation's biggest earnings improvement factor. s i f BBi HBBimi wv H IKP Wl Korshak also has sonie interesting connections to the Teamsters Union and the Team ster 's Pension Fund, which has issued loans to crime syndicateconnected development projects in Las Vegas and California. Labor consultant Korshak represented Schenley Distilleries in union negotiations in 1966, when the Teamsters tried to organize Schenley's grape workers. In July 1968, FBI agents found Korshak at a meeting at the La Costa Country Club, an elite resort near San Diego built with Teamster Union pension funds. Other participants at this meeting included Morris "Moe" Dalitz, Allard Roen, AUan Dorfman.and Mrs. Jimmy Hoffa. "Moe" Dalitz, the developer of La Costa, got his start smuggling Canadian liquor into Detroit and Geveland during Prohibition. Then he developed resort casinos in Las Vegas and La Costa, the exclusive resort complex preferred by Teamster President Frank Fitzsimmons and many of the Watergate conspirators, among others. Allard Roen is a convicted stock manipulator, Teamster official, and former partner with Moe Dalitz in the investment group which owned the Desert Inn in Las Vegas. Allen Dorfman, a consultant to the Teamsters Union pension fund, was convicted of taking kickbacks in 1972. His front, the California Life Insurance Co., shares an office building in Chicago with Sidney Korshak's law firm, Korshak, Rothman and Marshall. The Desert Inn was originally develóped by gambler Wilbur Clark, whose debts prevented him from completing the hotel-casino. Moe Dalitz and Iiis Cleveland organization then stepped in to bail Clark out of debt and make possible the completion of the Desert Inn, which opened in 1950. The Dalitz group also cut itself in for 74% of the profits. FBI information reveáis that the Dalitz group had secret backing, probably headed by the late Sam "Momo" Giancana. Sidney Korshak became a regular guest at the Las Vegas Desert Inn in 1959. Another crimesyndicate figure who reportedly preferred the Desert Inn to other equally luxurious Las Vegas hotels was Johrmy Roselli. Howard Hughes purchased the Desert Inn for $13.2 million from Moe Dalitz, Sam Tuckcr, Allard Roen and friends in 1967. Dalitz was retained on the payroll as a "gambling consultant.1' Johnny Roselli received a $50,000 'Tinder's fee" in this transaction. Since Hughes was already installed in the top floor suite of the Desert Inn at the time of the sale, it is unclear exactly what Roselli "found." Meanwhile, Sidney Korshak, the talent agent, arranged for headline entertainers to appear at the Desert Inn. The labor consultant's connection to show business was a theatrical agency, Associated Booking Corporation (ABC), which Korshak served doubly as J aüorney and part owner. (Continued next week) i F U s f I