August Palmisano

August Samuel Palmisano was born on August 26, 1928 in Milwaukee to Giovanni “John” and Angeline Palmisano. A suspected informer, August Palmisano, was slain by a car bomb at approximately 8:53am on June 30, 1978. He was inside his underground garage at Juneau Village Garden Apartments at 1319 North Jackson Street. The bomb tore his 1977 Mercury apart and damaged twenty-eight other nearby vehicles. A small fire broke out after another damaged car suffered a gasoline leak. Total damage was estimated at $20,000 by Deputy Fire Marshal Kermit R. Krupka ($4,000 structural damage, $7,000 to Palmisano’s car and $9,000 to surrounding vehicles). The only evidence left behind was a Radio Shack alligator clip. When reporters asked neighbors about the murder, most refused to talk. His landlord said he was a good man, a friend of Vincent Manaici’s, and paid his rent on time. One unemployed man said that Palmisano was known to give money to the homeless and downtrodden. The FBI immediately suspected Balistrieri, knowing that Palmisano was a friend of the murdered August Maniaci and that he had been feuding with Balistrieri over bookmaking (Palmisano was told he had to do all bookmaking through LCN member Salvatore Librizzi).

Note: This is not meant to be a fully-formed article. It is merely a repository of information at this time.

 

FBI Files and other public documents can be found here: https://kingsridgemedia.com/MM/fbi-files/

1962

On March 5, 1962, August Palmisano continued to operate his end of the gambling at American Motors, taking in a $50 bet on Loyola and another $50 on Tulane, both of whom lost, bringing in $110 for Palmisano. The same bettor bet (and won) $25 on Holy Cross the next day, and lost $110 the day after that for placing $50 bets on Marquette and Western Kentucky. (When you won with Palmisano, you won what you bet. But if you lost, you owed an extra 10%)

On March 12 or 13, 1962, a co-worker of August Palmisano’s made a bet with him on the Seattle-Oregon State game. Palmisano told him that the “line” was 9 points, but after receiving the bet made a phone call to the 808 Club during a coffee break. Palmisano returned and said the “line” was now 8 points. Later, the co-worker called the 808 Club and asked about the line, and was told it was 9 points. The co-worker had suspected for a while that Palmisano was “shaving” points on various games to increase the house odds, but this confirmed it.

A bettor met with August Palmisano on March 18, 1962 at the coffee shop/bar in Milshore Bowling Alleys on West Capitol. Palmisano was collecting money for the bets that a man named Eisler lost. The man said he could not pay, and Palmisano suggested that the man’s mother had money. The man told Palmisano to leave his mother out of it. Palmisano then said, “You have friends in the police department. We have friends, too. I am not threatening you, but someone else could take care of you.” Palmisano then met up with Sam Librizzi at the other end of the bar, and they drove off in Librizzi’s Pontiac.

On March 20, 1962, August Palmisano pulled a co-worker aside and said, “Sammy wants you to pay off.” The co-worker owed $621 for gambling, a debt he could not afford to pay.

Special Agent Richard Thompson came to American Motors on the evening of March 21, 1962 to interview August Palmisano. Palmisano did not want to answer questions about how long he had been booking. He was then warned that the Bureau had received complaints of him threatening people who could not pay gambling debts, and since those people were now under federal subpoena, any further threat would be obstruction of justice. Thompson also talked to another employment and was given two college basketball schedules printed by the Angel-Kaplan Sports News Service.

Around 9:00pm, Thursday, March 22, 1962 the IRS arrested tavern operator Sam Cefalu, 49; bartender Sam Librizzi, 51; and American Motors employee August Palmisano, 33. Cefalu was picked up at his tavern (Sammy’s 808 Club) at 808 East Center Street, and Librizzi was picked up from his residence in the rear of the tavern. Palmisano was at work. The law required gamblers to register and pay a tax, which these three had not done and were charged with engaging in the business of accepting wagers without having paid tax. On the raid were four deputy marshals, six tax agents, US Attorney James Brennan, and Brennan’s assistant William Mulligan. The arrested men asked for attorney Dominic Frinzi, but he was out of town and attorney Norman Schatz appeared in his place. U.S. Commissioner John McBride set bail at $5,000 each. Schatz asked to have bail lowered, pointing out “the charge these men are facing doesn’t even carry a prison sentence, but merely calls for a fine.” Schatz was told by Brennan that “several of our citizens who gambled with them have been threatened.” Albert Steinlieb of the Bal-Fran Bonding Company paid their bail.

On Wednesday, March 28, 1962, Judge Kenneth P. Grubb lowered the bail for Sam Cefalu, Sam Librizzi and August Palmisano from $5000 to $1000 on a motion from Attorney Dominic Frinzi. Frinzi argued that a man recently convicted under the anti-Communist Smith Act was released on $5000 bond pending appeal, which would therefore making the same bond for misdemeanor gambling the “excessive bail” barred by the Eighth Amendment. Frinzi further chastised the arrests, pointing out, “Eleven people arrested these three people on a misdemeanor. I would have willingly helped save taxes by producing these men. And 9 o’clock at night was no time to make such an arrest. If you wanted evidence, it would be better to make such an arrest between 11 and 12 when gambling activities are at their height.” (Horse books close at noon.) Grubb asked Frinzi, “Were these violent characters? Are you sure there wasn’t a Dillinger in the group?” Frinzi said he had grown up with the men and they had lived their entire lives in Milwaukee, not presenting a flight risk.

On Friday, March 30, 1962, a federal grand jury (in session since March 6) indicted Cefalu, Librizzi and Palmisano for the same charge as earlier in the month: failure to pay a gambling tax. This was following Friday’s testimony of five witnesses: Sam Schmerling of Kenosha; Theodore Azzarrella, 57, 509 West Keefe Avenue; Allis-Chalmers timekeeper Eugene Bristow, 33, 2571 South Superior Street; Helen Kotecki, 1831 North Cambridge Avenue; and an unnamed FBI agent.

August Palmisano called a female friend of his (redacted) in the middle of the night on April 3, 1962 and said he wanted to talk to her about a clothes dryer she had wanted him to get at a discount. He then showed up at her house at 2:30am with three other men who had been drinking and asked her if she would have sex with these men. She declined and the men left. Palmisano said if she needed a job, he could set her up in Chicago as a prostitute. This made the woman angry and she threatened to call the police. Palmisano then left.

On the evening of October 1, 1962, Joseph Gurera, Frank Balistrieri and Steve DiSalvo were at the Holiday House. After midnight, Gurera used the pay phone to make a long distance call. A check revealed that at 1:03am (October 2), he had called the Leonard Produce Company of St. Louis, which was owned by John Joseph Vitale. Vitale was a top-ranking mobster in St. Louis, possibly the boss at this time (I do not know much about St. Louis). He was also distantly related to the Cianciolo, Sansone and Palmisano families.

Librizzi, Cefalu and Palmisano pleaded not guilty on October 8, 1962. After denying motions for dismissal, Judge F. Ryan Duffy set a trial date of February 15.

1963

On Wednesday, April 24, 1963, Northway Tavern bartender Otto Ocepek, 49, was granted immunity by Judge Robert E. Tehan (granting a motion by prosecutor Philip Padden) to testify about his gambling dealings with Cefalu, Librizzi and Palmisano. Ocepek said that Palmisano had given him the phone number to place bets, Cefalu took the bets from his phone at his tavern, and Librizzi made the payoffs.

On Tuesday, December 10, 1963, Federal Judge Robert Tehan sentenced six gamblers for failing to purchase a $50 gambling tax stamp. They were William F. “Buddy” Werner, William “Red” Becker, William W. Goldmann, Salvatore Cefalu, Sam Librizzi and August Palmisano. Each was given a fine between $1000 and $3000, with Werner receiving the harshest penalty: a fine and a year of probation. Werner, although not Mafia-connected, was well-known in Milwaukee as both a gambler and a former high school basketball star. When he died seven years later from cancer, the local press mourned his passing. Becker’s home at 3949 North 15th Street was Werner’s base of operations. Sentences had not yet been handed down to two other gamblers, Raymond C. Hobert and Raymond L. Mirr. Mirr was accused of running a bookmaking operation out of his business, the Supreme Dental Laboratory.

1970

The wake for Salvatore Anthony Librizzi, 50, was held on July 10, 1970 at the Guardalabene and Amato funeral home. He was the brother of Cono Librizzi and operator of Libby’s Cocktail Lounge and Libby’s South. The newspaper said he had the nickname “The Book” and was among the first people ever to be arrested for federal gambling violations. Those present included Steve DiSalvo, Frank Balistrieri, Thomas Machi, August Palmisano, Sam Cefalu, Frank Sansone, Walter Brocca, Joseph Enea, and Peter Balistrieri.

Frank Balistrieri threw a party at the Kings IV on July 26, 1970. He charged $15 a plate and roughly 100 people attended, including Vincent Maniaci and Steve DiSalvo.

Salvatore Anthony Librizzi was also arrested on December 4, and police found a note reading “AUG WO2-9933″ on him. This was the phone number for August Palmisano. Angelo DiGiorgio and Dennis Librizzi had also been indicted and arrested. Agents Keith Mendenhall and Daniel Brandt searched DiGiorgio and found business cards with phone numbers written on the back. (Most of those numbers are redacted, but one went to Frank Spinella of 2832 North Summit. His record consisted primarily of gambling offenses and one charge of robbery that was later dismissed. He had formerly owned the Cross Roads tavern at 1334 North Water Street, before the building was torn down.)

1972

An informant told the FBI in August 1972 that Vincent Maniaci and August Palmisano had gotten drunk and shot holes in the walls of Richie’s and Little Caesars.

An informant told the FBI in December 1972 that tension had developed between August Palmisano and Vincent Maniaci because of Palmisano’s girlfriend, who was black.

1973

Palmy Corporation (6873 North 40th) filed its articles of incorporation on May 17, 1973. The president was John J. Lassa, secretary-treasurer was Rose Lassa, and the directors were both Lassas and Ignatius J. Fettig. The Lassas lived at the 40th Street address, and were August Palmisano’s in-laws. Three hundred shares of stock were issued, with August Palmisano owning 100 shares.

Frank Balistrieri threw a large graduation party for John Balistrieri (who received his law degree from Valparaiso) at his Center Stage night club on June 3, 1973 with over 1,000 guests. The entire Maniaci family was invited, with one notable exception: August Maniaci. Baby Joey Balistrieri was absent because he was in Las Vegas. Nick Gentile, Tony Machi, Angelo Alioto, Joe Dentice, Dominic Frinzi, Nick Fucarino, Sam Ferrara, Joe Enea, James Schiavo, Frank Stelloh, Vince Maniaci, Frank LaGalbo, Vito Aiello, August Palmisano and John Rizzo were in attendance. City clerk Allen Calhoun was there, as was Judge Vel Phillips. Restaurant owner Joseph Sardino was there, allegedly as a favor for loaning Balistrieri the money he needed to pay the IRS. The party started at 8pm and went until 2am, and was hot and overcrowded. John received some gifts and a large number of cash-filled envelopes. A fight broke out between Steve DiSalvo and Vincent Maniaci at 4:00am, probably fueled by alcohol. Agents from the Wisconsin Department of Investigation sat outside taking pictures while Dominic Frinzi and Joseph Balistrieri banged on the sides of their panel truck.

August Palmisano was surveilled meeting with Vincent Maniaci at Richie’s on June 14, 1973. An FBI agent was in the tavern on this day at 11:15am and sat at the bar. He overheard Palmisano say “7 in the 9th” and at one point, a man with a briefcase came in and gave Palmisano several slips of paper. A young black man was at the bar wearing a beret with a pencil in it. Palmisano took a cigar box from under the counter, pulled out some money, and gave it to the black man, who then left. At one point Palmisano’s girlfriend came in. At some point during surveillance Joseph Enea double parked and picked up a white female. The agent left at 1:45pm.

An FBI agent was in Richie’s on June 15, 1973 from 12:15pm to 2:30pm. He witnessed several customers come and go, and saw Palmisano pay a black man (presumably the same man as the day before) from a cigar box. The man was carrying a tape recorder.

On June 20, 1973, August Palmisano was observed in Richie’s with another man. The man gave Palmisano various slips of paper, while Palmisano gave the man three bundles of currency that he pulled out of a bag. The man drove a brown Cadillac with a white vinyl top.

August Palmisano began operating Richie’s on Broadway on July 1, 1973. The tavern was owned by the Palmy Corporation, which had received a liquor license on June 28.

Vincent Maniaci and August Palmisano were surveilled entering an apartment building on July 9, 1973.

The FBI interviewed the apartment owner of 1535 North VanBuren on July 23, 1973 concerning August Palmisano, who was renting apartment #105. She said that Palmisano started renting the apartment in April and was the only tenant, but she was positive he was not actually living there. She said another man started renting an apartment in June — he had moved to Milwaukee from Florida and worked for Palmisano in some capacity. The manager’s husband (another manager) was contacted the next day and had nothing good to say about Palmisano. He said that Palmisano was not timely with the rent and that he would have to go to Richie’s in order to pick up the money.

August Palmisano was observed in the company of three other white men at Sally’s Steak House on August 2, 1973 from 1:24pm to 1:50pm.

Nick Fucarino was seen talking with August Palmisano at Richie’s on August 14, 1973 at 2:25pm.

Roughly September 1, 1973, Angelo Alioto’s daughter was married and a reception was held at Alioto’s with 450 people attending. Those present included Frank Balistrieri, Thomas Machi, Joe Dentice, Peter Balistrieri, Joseph Balistrieri (walking with a limp from a car accident), and James Schiavo. August Palmisano’s brother was there, but not August himself.

Special agents observed August Palmisano and a black female (name redacted) exiting the apartment at 1535 North VanBuren on September 15, 1973 around 11:31am. They were holding hands. Palmisano drove off in his 1964 Lincoln and the woman left in her Pontiac.

Surveillance was conducted in front of Richie’s on September 22, 1973. August Palmisano was seen entering at 10:50am. Various other redacted people come and go throughout the day.

Surveillance was conducted in front of Richie’s on October 2, 1973. Tony Machi was seen out front talking with August Palmisano at 10:55am. Machi walked south on Broadway at 11:12am. James Jennaro arrived at 11:40am and left at 11:57am. Palmisano entered and exited the tavern repeatedly until 1:47pm.

August Palmisano and another man (redacted) went to Chicago on October 3, 1973. (Around this time a source told the FBI enough information to fill 32 pages on Palmisano’s connections in various taverns, but the file is so redacted that not much can be made of it. The source did note that Palmisano’s daughter was dating a “playboy” from New York.)

On October 11, 1973, the following letter was written to August Palmisano and sent to Richie’s tavern from Florida: “This letter is to let you know what has been happening since I last saw you September 20th. My primary purpose was to make enough money to repay what you loaned me. This trip was to last six days. However, there were more stops on the way to New Orleans than I was originally told as well as a long layover to get a return load. I didn’t call you because I didn’t think you could understand the situation. While I was gone, I’ve been told you made threatening phone calls to the folks’ house and sent your people to [redacted] place looking for me. Since I was still several hundred short, I decided not to contact you until I had the entire amount (but something has come up you should be aware of). Tomorrow I’m [redacted]. Tonight I spoke with [redacted] and [redacted]. [redacted] said you sent “the boys” in his place looking for me with guns and you wanted to put me away. Also, they made threats on him. I don’t believe him or think he’s funny. I really don’t mind him telling me this, but he met [redacted] folks and told them the same thing. Also, he said he has been giving me money to pay off a $5000 gambling debt to you and if I didn’t pay it you would be after [redacted] and the kids, too. He suggested they take [redacted] and the kids out of town. To make this short, [redacted] parents were upset. [redacted] was upset and went to her attorney, explained what [redacted] told her and she feared the kids’ lives and got her okay to ship the kids out of town. I calmed [redacted] down and told her she should have known better to believe [redacted] or go to her attorney. Nothing more will be said by her. As far as [redacted] is concerned, I want to straighten him out. He made me out to be running from you and only with his help I made it. Augie, I’m not running from anybody. I only want to make enough to get my personal debt paid off. [redacted] wanted to look like a big shot to [redacted] and her parents. I’m asking you to leave him alone until after I talk to him. I hope you see my view of this situation. When you loaned me the money you said to pay it back when I had it. However, something came up and you gave me a deadline. When I return this time I’ll be able to take care of the Ins. and most of my personal debt. The money I expected to come in while I was home, didn’t, and the last month I was with you, I worked for nothing. So I had to get away in order to make it. I should be in Wednesday or Thursday at the latest. I will be in touch with you at that time.”

Another letter addressed to Palmisano was dated October 16, 1973: “Enclosed are the keys to the tavern and J. Box. Also, the insurance premium of $261.20 has been forwarded to the Home Office along with [redacted] $75. [redacted] health premium was sent to American Family as soon as he gave it to me, but I check my bank records to make sure they received it. I’m enclosing a money order in the amount of $200 as a first installment on repayment of my loan. I’ll send another $300 next week. Thank you for your consideration in this matter.”

Surveillance was conducted at Richie’s on October 19, 1973. August Palmisano was seen entering the tavern at 11:45am wearing a blue jacket with “The Shack, 2011 South KK” written on it.

On November 7, 1973 at 2:10am, two Milwaukee police officers passed Richie’s and saw various cars parked out front. They drove by again at 2:20am and the cars were still there. As taverns had a 2:00am closing time, they went up and looked in a window. August Palmisano was seen inside mixing drinks for a few people (five men and three women). The officers knocked on the window and Palmisano let them in. He said these were not patrons, but employees. The officers did not believe him, so a sergeant was called. While waiting for the sergeant, Palmisano called someone and tried to hand the phone to an officer, but the officer refused to speak to the person on the phone (believed to be another police officer). When the sergeant arrived, he offered to talk to the person on the phone, but then Palmisano hung up. He was ordered to appear before the city attorney the next day, and he did. Charges of allowing patrons to loiter after closing time were dismissed.

A Special Agent posing as a patron sat in Richie’s on Broadway on November 27, 1973 at 12:20pm. He saw a 25-year old man in a windbreaker speaking with August Palmisano about gambling debts that needed to be collected by this man for Palmisano. Specifically mentioned were The Mad Hatter and Mike’s.

1974

Utilizing sixty agents, the FBI conducted a raid at various places, including Richie’s tavern (346 North Broadway), on Super Bowl Sunday, January 13, 1974 and arrested August Palmisano and bartender Raymond Dulski. Also present was patron Joseph R. Trepanier, 63. Halmo was caught on charges of conspiring to gamble and running a gambling business, while Palmisano was also busted for running a gambling business and storing 93 sticks of 1.25×8 inch dynamite (along with a coil of safety time fuse) in the basement of the tavern. Also in the basement was a Winchester Model 94 rifle. Behind the bar was found a Harrington and Richardson model 733 nickel-plated .32 revolver and a Smith and Wesson .32 2-inch barrel revolver. $364.75 was found in Palmisano’s pockets. The dynamite was stored at bunker #9014 at Fort McCoy (60,000 acres between Sparta and Tomah).

 The FBI interviewed fruit salesman Julius J. Goldman (2612 North Maryland), 70, on February 8, 1974. Goldman said he spent a good deal of time around St. Paul and Broadway, and therefore goes into Richie’s often to relax or play cards with other patrons. He said he had placed bets on horses with August Palmisano on numerous occasions, but the bets were never more than $50. He had also seen dice games there on occasion. (Goldman may have been a retired dentist, as he had graduated from the Marquette School of Dentistry.)

On February 23 or 24, 1974, Vincent Maniaci, August Pamisano and another man ate dinner at Sally’s Steak House. Maniaci was at this point involved with Palmisano’s bookmaking operation.

Joseph Purpora, 69, 1205 South Ninth Street, was interviewed by the FBI on February 27, 1974. He said he goes to Richie’s about twice a week to get some drinks and play cards. However, he denied knowing who August Palmisano was and even denied knowing that the tavern had been raided.

The owner of The Shack (2011 Kinnickinnic Avenue) was interviewed by the FBI on March 14, 1974. She said that she had owned the property since 1962, and since June 1973 she had been renting the property and fixtures to August Palmisano for $245 per month, but knew nothing of his gambling and only knew him as a renter.

Agents interviewed a man in California (name redacted) on April 4, 1974 and asked him how Sidney Brodson’s phone number ended up on his phone bill. The man said he did not know Brodson or August Palmisano and had never been outside the state of California. He further claimed to never have made any bets over the phone or even locally. The man volunteered that he had an uncle in St. Cloud, Minnesota, but said he had never called that uncle.

Agent C. Hall interviewed (redacted) on May 9, 1974 regarding Leroy Bell. The person said he had known Bell since 1947, when Bell got out of the Army. In the 1950s, Bell did time at the federal prison in Terre Haute. Later he purchased the Brothers Lounge on Holton from Joseph Sardino, but now leases the property out to Leroy Foster. He opened another business called the Tender Trap on Center Street. In business, Bell “doesn’t do well as he gambles too much and can’t keep his hands out of the till.” The man admitted to loaning Bell large sums of money. When asked about Frank Balistrieri, he said he knew Frank and thought he was “a nice man” who had been discriminated against by law enforcement. He said he did not know Frank that well, however, and only saw him at funerals or “passing him on the street”. The man said he knew August Palmisano, but only as a fruit peddler who had the nickname “Turkey Neck”.

On June 6, 1974, an informant told the FBI that August Palmisano’s Little League team had tied another team, and Palmisano did not want to have playoffs, so the teams were declared co-champions. The other team’s sponsor brought a trophy into Richie’s and gave it to Palmisano. On top of it was a horse’s ass. Palmisano was furious and threatened to blow up the other man’s car. Whether he would have done it or not, there was dynamite in the basement at Richie’s for several months.

The informant also said Palmisano had been in the President’s Club the previous week and saw a black man put two hundred dollars on the bar. A prostitute came over to the man and tried to “hustle” him. Palmisano, as a joke, then set $15,000 on the bar and the woman left the black man and started to “hustle” Palmisano.

This informant further said that a former employee of the Shack Lounge had opened a new tavern, the Hide Out Lounge at 2690 South Sixth Street. Allegedly, the man had to pay a bribe to his alderman to get the liquor license. (When interviewed on August 28, the owner denied any such payments. The district attorney told the FBI that such bribery concerning the alderman in question was rumored, but could not be proven.) The Shack was owned by Palmy Corp, as were Richie’s on Broadway and Pat’s Clubhouse on Keefe.

On June 11, 1974, the Milwaukee Police Department contacted (redacted) at the Great Lakes Naval Air Station in Great Lakes, Illinois. The man said he was a good friend of a (redacted) Milwaukee man and was associated with someone connected to Little Caesar’s in Milwaukee. (This information comes from a file on Palmisano and Vince Maniaci threatening people, but it is so redacted that all the interesting parts are unusable.)

On Wednesday, July 10, 1974, the Federal Grand Jury handed down gambling charges against 12 men: Steven John Halmo, 52, 716 South 7th Street; Robert George Pick, 60, of Marathon, Florida; Peter R. Marino, 42, 1924 West Clayton Crest; Sidney Albert Brodson, 65, 2420 East Stratford Court; August Palmisano, 45, 5358 North Kent Avenue; Eli Gukich, 48, of Waukesha; Raymond J. Dulski, 35, 4439 South 38th Street; Donald J. Danowski, 31, of Cudahy; Martin Azzolina, 32, 2419 North Cramer Street; Russell J. Kent, 31, 614 South 63rd Street; George F. Kermendy, 52, 3571 South 61st Street; and John J. Morn, 42, of Elm Grove. There were also 7 unindicted co-conspirators: James G. Kops, 39, 943 East Circle Drive; Richard I. Thoma, 39, 5419 North 83rd Street; Frank G. Spinella, 2832 North Summit Avenue; Michael R. Tullis of Las Vegas; James Spalding of Madison; Susan M. Werwinski of Las Vegas; and Theodore Cosmides of Madison. Brodson, Halmo, Azolina and Morn appeared in court and were released on $5,000 signature bond. The others were given 24 hours to appear voluntarily in court before a warrant was issued for their arrest. Everyone turned themselves in on time.

Around August 26, 1974, August Palmisano threw himself a birthday party at Richie’s that was closed to the public. At one point someone mentioned Frank Balistrieri’s name and Palmisano said, “You know how we feel about him” and suggested that Balistrieri owed him thousands of dollars. Another person said, “If he comes around here we’ll blow his face off.”

An informant told Special Agent Eugene Murphy on September 19, 1974 that Vince Maniaci and August Palmisano met at Fazio’s on Jackson twice a week, and Maniaci was at Sally’s three or four times a week.

An informant saw August Palmisano at the Towne Room Restaurant with two other men on Friday September 20, 1974. He talked to Palmisano, who said the charges against him and others had not slowed down the bookmaking at all. Palmisano said of everyone charged, only one of them (redacted) might get jail time with the rest expecting probation.

August Palmisano was finally charged on October 2, 1974 for illegally storing dynamite in Richie’s Tavern. He faced up to a year in prison and a $1000 fine.

The FBI received an anonymous call on November 7, 1974 concerning a recent bomb that killed Larry O. Anstett, 15, a Milwaukee Sentinel carrier and was suspected of being carried out by the Outlaws biker gang to target the Heaven’s Devils gang (specifically Devils member Michael Vermilyea). The caller claimed he had overheard August Palmisano and another man in Trovato’s Restaurant and the conversation led him to believe that although they had not set the bomb, they had offered a “contract” to do so. This seems unlikely to me, as the packaged bomb was on top of Vermilyea’s car and therefore clearly intended for him. I see no reason the Mafia would want to get involved in a biker feud.

On the evening of December 17, Vincent Maniaci was in conversation with Nick Gentile and August Palmisano concerning the investigation of Maniaci. Gentile joked, “They can’t hang anything on me.” Around midnight, Gentile became upset (for reasons unknown) and had the music turned off, and asked the patrons and go-go dancers to go home. Shortly after midnight a man arrived with a package for Palmisano, to which he replied, “I’ve been waiting for these.”

On December 30, 1974, August Palmisano bought a produce route for $1000. The route covered Madison, Lake Mills and vicinity.

1975

The FBI interviewed Karl Lotharius, the owner of Oliver’s Cabaret (782 North Milwaukee) on January 3, 1975. Lotharius said that he once managed I.V. A-Go-Go at 151 North Jackson, but this business no longer exists. At the time, he also worked for the Wisconsin Gas Company. Since his business did not have a cabaret license, they had to close at 1:00am and he would often walk with his customers over to Little Caesars under the expressway. He thus became acquainted with Vincent Maniaci and August Palmisano. In September 1972, he purchased Oliver’s Cabaret. Three weeks later, Maniaci asked Lotharius (who he called “Carlo”) what sort of vending machines he had in his place of business, and Lotharius told him a cigarette machine, pool table and jukebox from Wisconsin Novelty Company. Maniaci said he did not have to honor that contract and told him to “throw them out” and offered him $1000 to start using another distributor (name redacted). Maniaci also offered to fix the ceiling above the band area. Lotharius “strenuously declined”. A few days later, Lotharius was drinking with six friends (names redacted) at Pitch’s Lounge when Palmisano pulled a gun on Lotharius. Palisano said, “You better know who your friends are. Your head is getting too big for your own good.” Lotharius told the FBI he had been drinking and therefore did not think to report it to the police at the time. Not long after, Maniaci (and a redacted man) again tried to get Lotharius to accept a machine, this time a sex-oriented one from someone named DeGeorgio (most likely Angelo B. DiGiorgio). Lotharius again declined. In the early part of 1974, he went to Oliver’s and found a new machine (a condom dispenser) installed in the bathroom. The cleaning lady had allowed an unknown man to come in the night before and install the machine. When a man came in to service it, Lotharius ripped the machine off the wall and told the man a “drunken sailor” had destroyed it. On May 10, 1974, two men (named redacted) asked for a tour of the club, and he showed them the club, including the basement where he kept the liquor. The next day, his club was broken into through the roof and the Wisconsin Novelty Company machines (including a jukebox and cigarette machine) were smashed. Over $1000 was taken. He was later told by (redacted) that (redacted) had committed the burglary. Lotharius later told the man he had a taped conversation between him and Maniaci just to see what the reaction would be. That night, his home was broken into and movie canisters were taken (which may have been thought to be audio tape).

On January 15, 1975, the FBI spoke with a man in Brooklyn who had been a former business associate of Karl Lotharius. The man said Karl was “tight” and therefore often had cash on hand, and had even purchased Oliver’s for $65,000 in cash. He was with Karl the night Palmisano pulled a gun on Karl and remembered Palmisano’s words almost as exactly as Lotharius did. The man added that Lotharius responded, “You’re the ones driving Cadillacs, not me.” With Palmisano were at least two other men and a woman who was also armed. The man recalled the company that was pressuring Lotharius to install machines was “Dino’s Vending Machines”. (This may actually be Leo Dinon’s vending company.) The man had a pretty good idea who was behind the burglaries (unfortunately much of this is redacted), and he identified the suspect as a “fall guy” for Maniaci and Palmisano. Around Christmas 1974 he ran across someone who told him that Karl “bought his suit”, implying the suit was purchased with money stolen from Lotharius. The man related a second-hand story about a bartender (name redacted) who worked for Maniaci but quit because Maniaci was a heavy drinker and was very abusive. After he quit Maniaci told him he would never work on the East Side again and if someone hired him, Maniaci would break both his legs.

A man (name redacted) made a sworn statement to Special Agent Samuel M. Wichner in Brooklyn on January 27, 1975. He said he had been stationed in Milwaukee in 1969 and 1970 and knew about some of the problems his friend (redacted) was having with Vincent Maniaci and August Palmisano. In September or October of 1972, he was in Pitch’s and Palmisano pulled out a gun because of difficulties his friend was having regarding vending machines. He was in Milwaukee in December 1974 and was told who had committed a recent burglary (names of business and suspects redacted). He had worked at a place in Milwaukee where he knew the combination of the safe, and only knew of two others who knew it.

August Palmisano and Steve Halmo pleaded guilty on Monday, February 3, 1975 for gambling charges stemming from last year’s Super Bowl raid. Palmisano’s attorney, Charles Hausmann, claimed that his client did not really know Halmo very well, and that when he did take layoff bets for him, he did not make any money. Hausmann further pointed out that Palmisano came from a good family, had four children to raise, and woke up at 4am every morning to help with the family produce business, which involved driving a truck for eight hours, and then he still had to manage the tavern. Furthermore, he said Palmisano’s wife Jean had a mastectomy in December and was scheduled to have a hysterectomy soon, which made Palmisano so nervous that his hands shook. Justice Department attorney Gregory Ward countered that Palmisano’s gambling business could hardly be considered “minor” and that he was receiving 10% “juice” for the bets he took. Judge Myron Gordon dismissed the charge of unlawfully storing dynamite. Palmisano was fined $500 and put on two years probation, with Gordon citing that he had no prior record besides traffic offenses.

The FBI visited Waupun State Prison on February 19, 1975 and spoke with a man there. He said in February or March 1973 he was approached by August Palmisano at the Shack bar (2011 South Kinnickinnic) to burglarize an apartment above Papa Joe’s bar, which was across the street. The man declined. Another time, at the Hideout Tavern on South 6th, he was again approached by Palmisano, this time with Vincent Maniaci. Palmisano told the man to meet him at Pitch’s (1801 North Humboldt), which he did, and then Palmisano told the man he wanted the Stone Toad and Hannah’s “torn up”. Hannah’s was on East Locust and the man was instructed to wait next door at the Comstock Lode until closing time, then break in and tear the place up. He was offered $1500 for each job. He was also told to go to Oliver’s and get in a fight with the owner, Karl Lotharius. Around this time, he was also taken to the basement of Richie’s on Broadway and Palmisano showed him a large quantity of dynamite. Palmisano told the man that one of the bartenders at Oliver’s would let them stay after closing so they could plant the dynamite. The man did not want to use any dynamite, but went back to Oliver’s to start a fight but the owner wasn’t there. He was given $750 up front to destroy the Stone Toad, and went on May 15, 1973. But when he got there the door was unlocked and the building was empty. He thought it was fishy, so left, and was arrested for burglary by waiting police outside. Not long after, the man was at Little Caesar’s and Vincent Maniaci asked about Oliver’s. The man said he didn’t want to get in any more trouble. Maniaci said he could use the money to pay his attorney from the Stone Toad incident, but the man refused. (I was not able to find this “burglary” in the paper to narrow down who this was. The Stone Toad, incidentally, was a club at 618 North Broadway run by Mike Cochran. It closed in 1983.)

Phillip H. Jung was interviewed by the FBI on April 1, 1975. He was contacted at the U.S. Marshal’s Office, where he was receiving protective custody. He was shown a spread of photographs, including one of August Palmisano, and asked if any of them were present when he was beaten. He could not recognize any of the photographs. He did say he knew one person there who threw an ashtray at him.

 

The Kentucky Derby was held the first Saturday in May 1975. August Palmisano had roughly $1000 in play there and won $750. He had one customer (redacted) who bet $100 on Foolish Pleasure, the winning horse.

On Monday, July 14, 1975, the License Committee castigated the Milwaukee Police Department for not updating Vincent Maniaci’s record. Maniaci, who was applying for a license renewal, did not have his extortion conviction on his application. Conversely, the police warned against Richard Czarnecki for his association with gamblers Palmisano, Halmo and Dulski and his “questionable moral character”, despite having no convictions. The Committee turned down Maniaci but accepted Czarnecki, who was to take over Little Caesar’s. Alderman Edward Griffin also objected to Czarnecki, and despite the tavern being in his ward, he was outnumbered. Alderman Warren Braun said that guilt by association was no reason to deny a license and the police were “not going to act like a Gestapo”.

An informant spoke with August Palmisano about the Maniaci murder on September 16, 1975 and Palmisano told him that he was very “shook up” about the murder, which he knew was a professional job. Although Palmisano did not know who did the killing, he suspected “it was an old vendetta that came out of Kenosha.”

Two FBI agents interviewed August Palmisano on September 18, 1975 at Richie’s Tavern. Palmisano said he did not know who killed August Maniaci but that he was very upset about it. He denied being involved in any illegal activities, which the FBI knew to be false. They also considered his answers evasive.

On November 28, 1975, a source told the FBI that August Palmisano was receiving football betting information, and also said that Pasquale’s on Capitol was beginning to get a reputation as a gambler hangout. The same source said that Vince Maniaci had been hosting craps games in his apartment, and numerous people were involved — losses were extensive.

1976

Vincent Maniaci began serving a three year sentence in Sandstone Federal Prison on January 20, 1976 for violating the Extortionate Credit Transaction statute. A prosecutor in the Eastern District formally declined on January 28 to prosecute Maniaci for threats he had made to Karl Lotharius because Maniaci was in prison. Prosecution of August Palmisano and another man was not initiated because the prosecutor did not feel there was sufficient evidence.

James P. Venske, 36, was interviewed at Sandstone Federal Prison on June 2, 1976. He said he had met a man and they hit it off, and the man (redacted) told him to come to Milwaukee some time. Venske did so in February 1976 and was taken to Sandino’s Cocktail Lounge and Richie’s tavern, where he met August Palmisano and Vincent Maniaci.

In June 1976, August Palmisano sold his one-third ownership of Palmy Corp (which owned Richie’s on Broadway) to his son, John A. Palmisano.

August Palmisano was with his girlfriend, Hattie Evelyn Sims, on December 24, 1976. While she was cooking dinner, she died of a heart attack at age 44.

1977

In early March 1977, a reunion was held on Jackson Street for certain Italians. Steve DeSalvo(DiSalvo) was supposed to have been there, but was apparently out of town. August Palmisano and Tony Machi (owner of Teddy’s) were present.

On July 22, 1977, an informant told the FBI that August Palmisano and Frank Balistrieri had been getting into arguments and were not getting along.

At 6:49pm on August 2, 1977, a special agent sat at the bar area inside Snug’s and soon (by coincidence) Frank Balistrieri sat down next to him. Soon, approximately ten other men sat at the bar, some of them wearing red, white and green (Italian) golfing hats. One of the men was August Palmisano. Another was a German (name redacted). The men were overheard to say they were planning the Italian Open which was to be held August 7. The men presented Balistrieri with a small box which contained another one of the golfing caps. Also overheard was that one of them had recently purchased the Holiday Inn at 26th and Wisconsin and would soon be leasing the building to Marquette University. One man repeatedly asked the agent if he was a police officer, insisting that he had seen the agent somewhere before. The agent left at 10:34pm.

An informant told the FBI on October 31, 1977 that Frank Balistrieri had been talking about “taking care of” August Palmisano because he was a close associate of Vincent Maniaci. Eight months later he would follow through on this threat.

1978

On Thursday, May 25, 1978, the FBI told the media that they had wiretapped a Whitefish Bay home (presumably that of Sam Librizzi, but possibly August Palmisano) and a business on Brady Street in December and overheard conversations that would lead to gambling charges. Those overheard included Frank Balistrieri, Steve DiSalvo, Raymond Dulski, Frank Fortino, Sam and Dennis Librizzi, August Palmisano, Peter Picciurro and Joe Volpe.

Murder of August Palmisano – Car Bomb – June 30, 1978

A suspected informer, August Palmisano, was slain by a car bomb at approximately 8:53am on June 30, 1978. He was inside his underground garage at Juneau Village Garden Apartments at 1319 North Jackson Street. The bomb tore his 1977 Mercury apart and damaged twenty-eight other nearby vehicles. A small fire broke out after another damaged car suffered a gasoline leak. Total damage was estimated at $20,000 by Deputy Fire Marshal Kermit R. Krupka ($4,000 structural damage, $7,000 to Palmisano’s car and $9,000 to surrounding vehicles). The only evidence left behind was a Radio Shack alligator clip. When reporters asked neighbors about the murder, most refused to talk. His landlord said he was a good man, a friend of Vincent Manaici’s, and paid his rent on time. One unemployed man said that Palmisano was known to give money to the homeless and downtrodden. The FBI immediately suspected Balistrieri, knowing that Palmisano was a friend of the murdered August Maniaci and that he had been feuding with Balistrieri over bookmaking (Palmisano was told he had to do all bookmaking through LCN member Salvatore Librizzi).

District Attorney E. Michael McCann told the Journal, “This has all the appearances of a gangland slaying.” An unnamed source told reporter Dan Hanley that Palmisano was targeted because he was too vocal following the attempted bombing of Vince Maniaci. The paper reported that John Palmisano, Augie’s son, drove him home around 2:30am the night before in the same car, meaning whoever planted the bomb had done so within those few hours.

When August Palmisano’s son John entered Palmy’s tavern at 5:30am, Saturday, July 1, 1978, he found the safe broken into and business papers scattered throughout the room. $145 was also missing. The burglars had come in through a wall (which was connected to a warehouse) and then “peeled” the safe, meaning he popped the dial off it with a crowbar. Police refused to speculate on a motive. An informant said the burglary had been planned by Frank Alioto, but Alioto was told to hold off. He did, but his partners committed the burglary anyway, getting Alioto in trouble with the Outfit. James Kopatich later confirmed this — he said he was at Summerfest with Russell Henkel and Bill Bennett when they heard Palmisano was killed. They figured they “might as well” go through with the crime. Kopatich said they got $10,000 from the safe, and gave a potion to Alioto to calm him down.

The FBI spoke with the Juneau Village manager concerning the Palmisano bombing on July 5, 1978. The manager said the garage door to the parking area could only be opened with an electric door opener, and nobody had reported one missing. The door closed after about 30 seconds, making it very hard for more than one car to enter. Likewise, entry to the apartment could only be done with keys or by being buzzed in. They had already asked around, and no one reported buzzing anyone in that they did not know. The manager conceded, however, that someone could possibly unlock the apartment with a credit card, and gain access to the garage through the apartment interior.

An agent spoke with Nick Gentile on July 11, 1978. He said he was a close friend of August Palmisano but had no idea who was responsible for his death. Gentile said that although Palmisano kept a separate apartment from his wife, he was not legally separated from her.

On July 29, 1978, in the presence of an undercover agent, Peter Frank Balistrieri, Joseph Zito, Charles F. Vince, Phillip Joseph Emordeno, and Benjamin “Leftie” Ruggiero, Frank Balistrieri stated, with respect to August Palmisano, “he called me a name — to my face”; he was “arrogant” and “now they can’t find his skin.” In the same conversation, it is reported Frank Balistrieri stated, with respect to Vincent Maniaci, “he was an informer too.” Also with respect to the July 29 meeting, after the undercover agent was introduced to Frank Balistrieri, Balistrieri pointed a finger at the undercover agent and stated, “I know all about you,” “we been looking for you all week — we figured you were the G” — and “We were gonna hit him — we didn’t know what this was about — we thought he was the G.”

Just prior to August 1, 1978 (exact date unknown), a man was arrested at Satin Doll’s Lounge for being in possession of a handgun. Upon questioning, he admitted knowing Vincent Maniaci and August Palmisano and said he had on one occasion driven Maniaci home from work to the halfway house in order to provide him protection.

On September 5, 1978, Agent Michael DeMarco met with a confidential informant. The informant said that in the summer of 1977 he overheard a conversation between Frank Balistrieri and August Palmisano at the Shorecrest. There was an argument because Dennis Palmisano (a nephew of both men) had left Palmisano’s employment at Richie’s to go to work for Balistrieri at Snug’s. Allegedly, Balistrieri said, “You may get me, but I’ll get you.” (This echoed a different informant from July 1977 who claimed the argument had Balistrieri saying he’d “make chopped meat of you” and “write your name in blood.”)

Agents spoke with Nick Gentile on September 22, 1978. He again told them he did not know who killed August Palmisano. The agents told Gentile that they heard a rumor that he might be in danger because of his friendship with Palmisano. Gentile said he was an old man and not afraid of Frank Balistrieri, with no quarrel existing between them. The agents offered to make his car tamper-resistant. He declined, saying he kept it in a locked garage and that was good enough for him.

1979

By March 1, 1979, James Kopatich had switched sides from being an Outfit associate involved in burglaries to someone who wore a body recorder for the FBI. On March 1, he struck up a conversation with Frank Alioto about John Palmisano. Alioto said he had to be an informer. When asked why, Alioto said it was because August Palmisano (his father) had been the government’s “number one informant”.

On July 19, 1979, James Kopatich met with Frank Alioto at a newsstand (Wisconsin Avenue at 3rd Street) and purchased racing forms. Also there was Benny DiSalvo, whom Alioto described as Frank Balistrieri’s hitman who had killed “several” people for the Outfit. Kopatich and Alioto drove to the Arlington Race Track for the afternoon. Alioto further told Kopatich that Vincent Maniaci and August Palmisano were associates and “none of them were any damn good.”

On October 25-26, 1979, an informant spoke with the FBI about the “Madison Syndicate” (which they had suspected of being extinct for the past ten years). The informant said the Madison Family had good political contacts and there was a group of “several brothers” there. He said August Palmisano had once tried to expand his produce and vending businesses to Madison, but was only able to get a pool table there.

1982

On October 7, 1982, the FBI went to the Milwaukee Police Department to retrieve evidence from the bombing of August Palmisano and attempted bombing of Vincent Maniaci. The leg wires and alligator clips from the Palmisano bombing were still in evidence, though the ones from the Maniaci bombing were not (despite being written on the evidence inventory report). The inventory sheet did note six-foot red and white lead wires to be disposed of within thirty days. On October 12, the agents spoke with the detective who handled the Maniaci bombing at his home (he had retired) and the detective informed them that the last time he saw the wires and clips was in September 1981 when he retired, and they were still in the bomb room. He had intended to mount them to a display board, but never got around to it. On October 19, the bomb room was searched and nothing was found. The agents were advised that since the detective’s retirement, they had purchased a new bomb truck and only items absolutely necessary were kept. Photos of the Maniaci evidence were found, however, and they showed that the clips were not identical with the ones used in the Palmisano bombing.