Investigation finds no mob ties to Chicago suburb, mayor

Maura Kelly Lannan

Tuesday, Sept. 14, 2004 | 11:21 a.m.

CHICAGO -- The village of Rosemont released a taxpayer-funded investigation last week contending the town and its mayor have no connection to organized crime despite allegations by Attorney General Lisa Madigan, who has said possible mob ties make Rosemont an unfit location for a casino.

"Neither Rosemont nor Rosemont's mayor have been connected to or associated with organized crime. There is no, I emphasize no, organized crime influence in Rosemont," said Robert Stephenson, attorney for Rosemont.

The findings of the investigation, conducted by former FBI agent Peter Wacks and overseen by two former U.S. attorneys who have prosecuted organized crime cases, were made public in a 55-page sworn affidavit by Wacks. It was given to Mississippi-based Isle of Capri Casinos Inc., which wants to build a casino in Rosemont.

The investigation detailed ways longtime Rosemont Mayor Donald Stephens tried to rid Rosemont of organized crime. For example, it said Stephens bought a hotel from reputed Chicago mob boss Sam Giancana in 1963 and Giancana then left town. The investigation said the FBI believed the transaction was intended to get Giancana out of Rosemont.

"The mayor, rather than being connected to or associated with organized crime, conducted a systematic campaign to rid the area of unincorporated Cook County from which Rosemont was created of organized crime influence and figures," Stephenson said.

FBI spokesman Frank Bochte said the agency had not seen the report and had no comment.

The Chicago suburb commissioned the investigation, which cost at least $65,000, because Stephens said he had asked law enforcement for years to investigate allegations of mob ties.

"No one has seen fit to do that, so we got to the point where it was so frustrating to keep reading and hearing about what bad people we are, we thought maybe we'd find out," Stephens said. "Let's get the facts and stop the innuendoes."

The allegations arose again in March when Madigan questioned the Illinois Gaming Board's decision to choose Isle of Capri as the winning bidder for the state's only unused casino license, held by bankrupt Emerald Casino.

Madigan, who is now trying to revoke the license, asked how the board became comfortable with putting a casino in Rosemont after it had concerns about possible mob influence when Emerald wanted to build there.

Rosemont's investigation disputes Madigan's contention that contractors with mob ties were used to build Emerald facilities in Rosemont, that Stephens caused Emerald stock to be sold to friends affiliated with organized crime, and that Stephens forced Emerald owners to sell stock to his friends.

The investigation also said Stephens had cut all ties with Nick Boscarino, his former business partner convicted in February of a scheme to defraud Rosemont. The Gaming Board has said some investors in Emerald allegedly had ties to organized crime, including the Sherri Boscarino Trust, named for Nick Boscarino's wife.

"Upon resumption of the revocation hearing, these matters will be resolved in a professional manner," Madigan spokeswoman Melissa Merz said.

Gaming Board spokesman Gene O'Shea had no comment. Isle of Capri spokeswoman Lori Hutzler said the company was reviewing the investigation.

The report was overseen by Peter Vaira, former chief of the U.S. Justice Department Chicago Organized Crime Strike Force and former U.S. attorney for Philadelphia, and Dan Webb, a former U.S. attorney for Chicago and who now represents high-profile clients including former Gov. George Ryan. Webb once represented Rosemont in a lawsuit the village brought against owners of Emerald.