Jim Hoffa, Jr., chose William Hogan, Jr., President of Local 714 in
Chicago, as his running mate for the post of secretary-treasurer, the
second highest position in the Teamsters. Recently, Mayor Daley pulled the
plug on a city loan to a mob-linked movie studio whose key investors and
backers included close members of the Hogan family. The Independent Review
Board -- a court appointed body created to root out mob influence in the
Teamsters -- has recommended charges be brought against two members of
Local 714, including Hogan Jr.'s cousin, for "bringing reproach on the IBT"
for refusing to testify on their "contacts with alleged organized crime
figures."[74] In addition, Hogan Jr. has also been connected to corruption
and mafia influence at McCormick Place, a large convention center that
employs Local 714 members.
Hogan Jr. also has a high number of relatives on the payroll at Local
714, and is one of the highest paid Teamsters in the country. Hogan lost
one of his multiple salaries in 1994 as a result of Ron Carey's move
eliminating the Area Conferences, a $ 15-million- a-year layer of Teamster
bureaucracy and patronage whose chief purpose was to provide extra salaries
for officials who were already receiving full-time salaries and benefits as
local union leaders.
The StudioWorks Scandal
In the summer of 1995, Mayor Richard Daley nixed a $5.5 million
low-interest loan for a movie studio called StudioWorks after reading a
confidential FBI report indicating the investors may have been linked to
Chicago mob boss Sam "Wings" Carlisi. One of the key investors was James F.
Hogan, a cousin of Hogan Jr. Hogan Jr.'s two sons, William III and James,
are principal officers in Movies in Motion Inc., (listing Hogan Jr.'s
residence as their home address), a movie production company with ties to
the deal. A third son, Robert, who is the recording secretary of Hogan
Jr.'s Local 714, was the company's secretary from 1987 to 1988.[75]
According to the FBI report, moving picture companies that do not use
Movies in Motion "experience problems and delays in producing films...or
experience vandalized/destroyed equipment."[76]
Mob-linked investors in StudioWorks and Movies in Motion, Inc.,
include William and Salvatore Galioto. According to court records and
filings, William Galioto, 57, has been accused by federal investigators of
failing to file federal income tax returns for at least seven years and of
fronting for his brother-in-law, James J. Marcello. Marcello is serving a 1
2-year sentence for racketeering and federal tax fraud. Prosecutors
described Marcello...as the Chicago mob's No. 2 man behind the also jailed
Carlisi.[77] In addition, both Galiotos were indicted on gambling charges
in DuPage County in 1994.[78]
Hogan Jr.'s Local 714 has responsibility for organizing companies in
the movie industry in Chicago. Press leaks of a 1993 FBI report indicated a
"viselike grip held by organized crime over local [movie] production
companies."[79]
The Independent Review Board has recommended charges be brought
against two members of Local 714, including Hogan Jr.'s cousin, for
"bringing reproach on the IBT" for refusing to testify on their "contacts
with alleged organized crime figures."[80]
Local 714: A Job Bank for the "Who's Who in the Chicago Crime Syndicate"
In the early seventies, Teamster Local 714 was under investigation by
the FBI and the Chicago Crime Commission for racketeering, shakedowns,
extortion and payoffs at the McCormick Place convention center.[81] Hogan
Jr. was president of the local at that time. Hogan Jr. family members were
also officials at the union, including William Hogan Sr.
(secretary-treasurer), James M. Hogan (trustee), and James J. Hogan
(business agent).[82]
The investigation revealed that Local 714 had high-ranking mob figures
on the payroll. The Chicago Tribune called the mobsters a "Who's Who in the
Chicago Crime Syndicate."[83] According to Ray Schoessling, head of the
Teamsters Joint Council and Metropolitan Fair and Exposition Authority at
the time, the mobsters were "foisted on the hall" by Local 714, which he
called a "hoodlum dominated" union.[84] Mob figures working for the Hogan's
Local 714 included:
•Ernest "Rocco" Infelice: "Member of crime syndicate hierarchy convicted of
a narcotics sale in 1973 as a result of heroin traffic negotiated at
McCormick Place while he was a member of Teamsters Local 714."[85] •Mario
Garelli: " Dope dealer, convicted with Infelice in narcotics sales
negotiated at McCormick Place."[86] •Charles "Specs" DiCaro: "Ex-convict
and cartage thief, bodyguard to South Side mob captain Ralph Pierce when
not at McCormick Place."[87] •Rocco "The Parrot" Potenza: "crime syndicate
czar in the north suburbs."[88] •Americo DePietto: "Mob gambling boss and
long-time associate of James (Cowboy) Mirro, Southwest side gambling
chief."[89] •Wayne Bock: "Strong-arm aide to syndicate hoodlums and
one-time player for the University of Illinois and Chicago Cardinals
football teams."[90]
After press reports indicated the mobsters were employed at Local 714,
Hogan family officials at Local 714 did not take any action to fire the
hoodlums. Schoessling had to directly intervene and order their dismissal:
"Hogan...refused to convey Schoessling's order to the hoodlums personally
and has refused to answer questions about the ouster."[91]
Other mobsters found at McCormick and linked by the press with Local
714 include Sam Bonglorno, "Known gambler with syndicate connections, and a
member of Local 714", and Joseph Nicoletti, "convicted of perjury in the
income tax trial of Anthony Accardo, recognized syndicate boss and known
terrorist in maintaining union control. He is known to switch allegiance to
Teamsters Local 714."[92] In addition, David Kaye, a steward and business
agent for Local 714 at McCormick Place, was convicted of racketeering
activity and extortion in 1977. These acts occurred under the Hogan's
control of the union.[93]
Problems with Local 714 and Hogan Jr. continue to plague McCormick
Place. According to a recent complaint filed in federal court by MCM
Partners, an exhibition contractor at McCormick Place, Hogan Jr. and Local
714 colluded with a rival equipment company, O.G. Service Corp., to
maintain a monopoly at the convention center. O.G. Service Corp. is owned
by Nick Boscarino, a union steward at Local 714. According to the
complaint, when companies tried to change equipment suppliers, they were
threatened by Hogan Jr. and the local with strikes and damage to their
property.[94]
The Hogan Labor Dynasty
Local 714 has long been operated like a family dynasty. Hogan Jr.
moved up to the top job (secretary-treasurer) succeeding his father,
William Hogan, Sr., in 1990. Hogan Sr. was making $214,000 in salary when
he retired from Local 714. Upon retirement, Hogan Sr. was given a $30,000
car paid for by Local 714 dues.[95] In 1994, the Hogans employed by Local
714 (Hogan Jr., James M. Hogan, and Robert Hogan) and Joint Council 25
grossed over $458,000 in salaries and disbursements.[96]
Hogan Jr., however, is unconcerned about charges of nepotism: "I'm
living proof that nepotism works," Hogan said in 1991 meeting.[97] He adds
that the Hogans "were born to do the job. We've been here for
years...Whether somebody else likes us doesn't matter."[98]
74. Independent Review Board letters dated February 23, 1996 and April 1,
1996 proposing charges against Ronald Stella and Joseph Hogan.
75.Greg Hinz, "The Union Label," Chicago, December 1995.
76. Ibid
77. John Kass and Joseph A. Kirby, "Mob Ties Killed City Support for Movie
Studio," Chicago Tribune, June 29, 1995.
78. John Kass, "West Side Studio Deal is Dead, Daley Says," Chicago
Tribune, July 7, 1995.
79. John Kass and Joseph A. Kirby, "Mob Ties Killed City Support for Movie
Studio," Chicago Tribune, June 29, 1995.
80. Independent Review Board letters dated February 23, 1996 and April 1,
1996 proposing charges against Ronald Stella and Joseph Hogan.
81. Art Petacque, "Five Mobsters Lose Laborers Jobs at McCormick Place,"
Chicago Daily News, August 1, 1974.
82. "5 Hoods Lose Jobs At Exhibit Hall Here," Chicago Today, August 1,
1974.
83. "M'Cormick Pl. Roster of Hoods," Chicago Tribune, August 1, 1974.
84. George Bliss and James Strong, "U.S. Acts to Oust Hood from Unions at
McCormick Pl.," Chicago Tribune, August 1, 1974.
85."M'Cormick P1. Roster of Hoods," Chicago Tribune, August 1, 1974.
86. Ibid.
87. Ibid.
88. Ibid.
89. Ibid.
90. Ibid.
91. Ibid.
92. Ibid.
93. United States v. David Kaye, 556 F.2d 855 (7th Cir. 1977).
94. MCM Partners. Inc. v. Andrews-Bartlett & Associates, 62 F.3d 967 (7th
Cir. 1995).
95. U.S. Department of Labor, Office of Labor-Management Standards, Labor
Organization Annual Report: Form LM-2. Form filed by Local 714 in 1990.
96. U.S. Department of Labor, Office of Labor-Management Standards, Labor
Organization Annual Report: Form LM-2. Form filed by Local 714 in 1994.
97. Jeffrey Goldberg, "Hoffa Lives," New York Magazine, July 31, 1995.
98. Chicago Tribune, March 21, 1994.