In 2013, I was working with another Mafia researcher on an encyclopedia-style book on the Chicago Outfit. One entry I wrote was on Leslie Kruse; the full rough draft entry is four pages. Although the book is unlikely to get made at this point, I have only used the most relevant parts for this write-up on Lake County gambling.
Leslie Earl Kruse was born October 5, 1906 in Niles Center, Illinois, where his father was a florist and village trustee. The family was German. Leslie’s official employment for much of his life was as secretary-treasurer for Nu-Way Food Service Equipment, which was largely legitimate and had contracts to provide services for school districts. They also sold and serviced beer lines (the coils that connect kegs to taps).
In May 1940, he was picked up by US Marshals along with Jake Guzik and Morris Goldstein and charged with violating the radio communications act. They were receiving race results by phone and transmitting them by radio into the 81 Club in an adjacent building. Guzik and Kruse operated the 81 Club, while Goldstein had the radio. They were held on $5,000 bond each. Outcome unknown.
In March 1947, he was arrested by Lt. William Drury at the Chicagoan Hotel with Jake Guzik. Kruse was questioned about the murder of race wire operator James Ragen, but refused to talk.
By 1951, Kruse was the boss of the Vernon Hills Country Club gambling operation in Deerfield. He was also believed to be involved in the Cicero gambling operations known as the Saddle Club and Royal Cafe. Vernon Hills brought in wealthy clients from out of state, primarily Wisconsin.
On July 25, 1960, a representative from the Lake County Sheriff’s Office told the FBI that the handbook formerly operated at 899 Main Street in Antioch had been closed down for months because of an ongoing grand jury investigation. The rep did not know about Kenosha mobsters taking over the action, but did say that on May 12 a man (name redacted) was wounded at Skinny’s Tavern near Waukegan when a shotgun was fired at him. The assault was believed to be a result of the man owing gambling money to the Kenosha “gambling element.” On July 26, Antioch Chief of Police Walter Scott confirmed the handbook had been closed for months. An informant said that Kenosha wasn’t “taking over” but was temporarily stepping in during the heat, as sort of a “mutual aid” situation – if the heat was on in Kenosha, the Antioch/Waukegan group would step in for them.
Circa June 1961: publicity from Robert Kennedy about gambling between Kenosha and Antioch.
An informant told the FBI on July 20, 1961 that the Old Homestead was no longer a gambling location, but was now used as a parking lot for gamblers. They could be picked up from there and shuttled to the new gambling operation in Grayslake, Illinois. This protected both the gamblers and the operation from detection, as the new spot would appear vacant from outside.
October 13, 1961: SA Arthur Gran interviewed James L. Melius at Waukegan. Melius said he was raised in Waukegan and was a star athlete in high school. His brother Peter was a justice of the peace and assistant state’s attorney for Lake County. His primary business was operating approximately 90 jukeboxes, which he did in partnership with Joseph Levandusky. Melius was also working on developing a piece of property by Grand Avenue and Green Bay Road in Waukegan with insurance agent Merle Pavletic. Melius said he had been a bookie four or five years prior with partner Lloyd Pitzer, but they were out of the business. They had nothing to do with race wires and had no gambling connections in Milwaukee. He acknowledged knowing bookies Thomas Griffin and Peter “Little Pete” Gargano, as well as some gamblers in Kenosha, but did not want to comment on them because he didn’t want to get involved. Melius said no one ever tried to muscle in on his jukeboxes or gambling, and no one ever received a cut of his profits.
Chicago FBI agents spoke with reporter Sandy Smith on December 5, 1961 concerning a recent story he wrote on Frank Balistrieri’s link to Lake County gambling. Smith had received a tip about gambling at the Old Homestead Tavern on Highway 41 being run by Tommy Griffin, a well-known bookmaker. This operation was apparently moved to a farmhouse on Edwards Road just east of Highway 45. Smith stopped out on a Saturday afternoon and confirmed a flurry of activity happening there. Regarding his reporting that Balistrieri had a piece of this, he admitted this was merely speculation based on reports that Balistrieri was providing race wire service to Lake County.
A doctor from Milwaukee was at the Vernon Hills Country Club gambling operation on October 6, 1962. He was said to cash six checks there in exchange for chips, and the checks had been from the government as some sort of relief aid payment. The checks, in turn, were endorsed at the Drovers Bank in southern Chicago.
A Milwaukee informant tried to go to the Vernon Hills Country Club on November 17, 1962 but when he arrived he was told the game had moved to the Old Homestead.
An informant visited the Old Homestead (on the state line) on November 19, 1962. He witnessed a roulette table, blackjack and a craps table. They were also raffling off 25-pound turkeys. The place was “jammed” with people and the Homestead was believed to have taken in $30,000 that night.
Handyman Richard Bernas, who lived with Kruse, remodeled the Vernon Hills club in November 1962 with supplies from the Skokie Lumber Company. Bernas was a “jack of all trades” and had been an accomplished wrestler in his youth. A “Cannon Ball” safe from Mosler Safe Company and additional dice tables were also installed at the time. An intricate system of walkie-talkies and lighting were used to keep unwanted guests off the premises.
The Vernon Hills Country Club was raided on February 9, 1963. Lake County police rounded up 60 gamblers and 12 employees, including a former police officer. $2,500 in cash was confiscated. The on-site manager was identified as Thomas Griffin of Antioch, and loan sharks Morris Goldstein and Morris Saletko were said to be on staff to “help” gamblers who ran out of cash.
In April 1963, the Vernon Hills gambling game was rumored to move to Rondout, near Libertyville, on Route 176 by the Borden Dairy. Repair work was done there in June 1963. A raid was set for later in the month, but patrons left an hour before police arrived, suggesting Lake County police tipped off the operation.
Agent John Holtzman interviewed Dr. Clarence M. Steiner on August 5, 1963 concerning his gambling activities. Steiner said he was born in Richfield and attended both Marquette University and Marquette Medical School. He had gambled at the Homestead and Vernon Hills Country Club in the past, but “definitely” no more recent than 1960. Holtzman questioned this timeline, and Steiner agreed that he must have gambled there 3 or 4 times in 1962. Steiner said he was introduced to the gambling hangouts through a friend named Jack Goodman, who had since died. He went with Goodman a few times and then went alone. Steiner said he never allowed himself to go into debt to gamblers, and as such had never been called by them or tracked down for money.
After 1963, the Vernon Hills and/or Old Homestead gambling hangouts seemed to fade away, and Leslie Kruse found himself more a legitimate businessman and less a gangster. However, he would continue to associate with Outfit leadership for the rest of his life, something that brought unwanted attention to his business associates from law enforcement and the federal government. Contracts Nu-Way had with various schools were used to show “Mafia infiltration,” which is not at all an accurate description – the vast majority of owners and employees were not Outfit associates.
When Rocco Fischetti passed in July 1964, Kruse was elevated in importance, effectively having no boss. Following the death of Murray Humphreys in November 1965, Kruse frequently had meetings with Gus Alex and Ralph Pierce at various restaurants. The three were the highest-ranking non-Italians in the Outfit. On occasion, they were joined by Pierce’s chauffeur, Charles “Specs” DiCaro.
In October 1973, Kruse had a massive heart attack and was confined to St. Francis Hospital in Evanston.. When interviewed by Agent Bill Roemer in the presence of Ralph Pierce in February 1974, he said he had no involvement in organized crime for the past dozen years. He had no associates in Lake County since the passing of gambler Tommy Griffin. His income was solely from Nu-Way and when he met with Pierce, it was strictly as a friend. Roemer kindly asked the head nurse to give Kruse special attention, a gesture Kruse greatly appreciated.
In March 1976, Kruse had his fourth heart attack and was again confined to St. Francis Hospital. He never recovered. Leslie’s wife Elsie, a former Vaudeville actress, passed in February 2008. Their son Richard passed the bar in November 1969 and still practiced law in Lincolnwood as of 2013.