Two fur coats were stolen from a dry cleaning business run by Cosimo “Gus” Marzullo on Monday, August 2, 1948. The store was at 1901 Mead Street in Racine and the coats had a combined value of $300.
A phone line was installed at Unity Cleaners (1012 South 1st Street) on April 3, 1962. This business, which had recently been put in receivership, was now occupied by Joe Gurera and Buster Balestrere to collect pay-offs from Milwaukee bookies. The business was renamed Acino Cleaners.
The FBI ran surveillance on Unity Cleaners on April 16 from 10:30am to 4:30pm and observed Buster Balestrere and Steve DiSalvo. A sign out front said “Under New Management.” They checked back on April 17 from 3:30pm to 5:00pm and saw Balestrere, DiSalvo and Joseph Gurera. On April 18 from 4:15 to 5:30pm, all three were seen again, with Gurera and Balestrere seen across the street at a coffee shop. And again on April 19 all three could be seen.
At 3:00pm on April 27, 1962, Charles Piscuine was observed bringing laundry into Unity Cleaners.
On July 6, 1962, agents observed Joseph Gurera, Buster Balestrere and Sam Librizzi at Checker Cleaners in the morning.
Agent John Holtzman caught Buster Balestrere alone at the store on October 2, and struck up conversation with him. Holtzman said he had heard that Buster was “in the dog house” with his friends, and it might be worth his while to join “the other side.” Buster said he did not know anything that would be of interest to the FBI, but did not seem angry or upset by the offer.
The Milwaukee Police Department set up a Special Surveillance Squad on November 14, 1962. From November 14 through the 20, they witnessed a hoodlum (possibly Walter Brocca?) make daily visits to Acino Cleaners.
Cosimo “Gus” Marzullo, 58, 1915A South 5th Street, was charged on Thursday, December 6, 1962 with commercial gambling. He admitted to police he had been interested in horse racing all his life, had been studying them for 14 years and found a way to win at horse racing 97% of the time and had pooled $4,700 from six Racine businessmen to gamble on the horses, including Orville Carl Olson and Owen Henry Madson. He was first picked up Wednesday night by Patrolman Rocky Todd after running a red light and being unable to prove that the car he was driving belonged to him (he had not yet transferred his title from his old Chrysler to his new Lincoln). Todd found a racing form and betting slips on Marzullo. He told Assistant District Attorney Hugh O’Connell that he had bet $850 on the horses that very day, but police only found $4 in his pockets. He gave his employer as Acino Cleaners, 1012 South 1st Street, where he was the manager. He had previously owned three laundromats, as well as a laundromat supply store. Acino was known to be owned by Steve DiSalvo, Buster Balestrere and Joseph Gurera. Marzullo denied knowing anything about these men other than that they sign his checks.
Orville Olson was interviewed at the US Marshal’s office on December 7, 1962 concerning Cosimo Marzullo. He said he had known Marzullo for many years, and that Marzullo had a successful cleaning business. One day, roughly five months ago, Marzullo approached Olson at the latter’s business (Peerless Cleaners in Waterford) and said “he had a sure way of beating the horses,” so Olson gave him $300 and soon $700 more. Since that time, Marzullo had returned $320 to Olson. His understanding was he could ask for the full $1,000 back at any time, but had not yet tried to do so as long as Marzullo kept paying. He knew several other men who also invested in Marzullo.
Owen Madson (owner of Western Auto Store, Waterford) was also interviewed and said he gave Marzullo $1,000 and had since received $254 back. Madson had met Marzullo through Olson and told essentially the same story – he could get his money back, but had not tried to do so. This sounded like a “con game” to law enforcement, but Marzullo denied it was any such thing. (It does, definitely, sound like a Ponzi scheme. Even if legit, it would be a federal crime to take a bet in Wisconsin and use it in Illinois.)
Fred Klancnik, 4603 South 61st Street, was interviewed by Special Agents Knickrehm and Holtzman on January 2, 1963 concerning Gus Marzullo. He said he had known Marzullo for many years because they were both in the dry cleaning business. Klancnik said he was unemployed for a while when Marzullo invited him to work for Acino Cleaners. While there, the paychecks have always been signed by Steve DiSalvo. He has heard that Buster Balestrere and Joseph Gurera had an interest, but they did not sign the checks. Klancnik said the business was completely legitimate as far as he knew and it was rather successful, because it had primarily commercial accounts.
They had one Ford Econoline van, which was registered in Klancnik’s name. He had never seen anything related to gambling on the property.
February 20, 1963: The IRS padlocked Checker Cleaners for failure to pay withholding tax. A payment was made the following day and the business reopened.
Frank Stelloh met Steve DiSalvo on May 30, 1963 at Checker Cleaners, where they had coffee.