"Where in the hell is Omaha?" was the famous quote said by Genovese crime family soldier turned federal witness Joe Valachi when Nebraska Senator Carl T. Curtis inquired about organized crime in his state's best known city. It was no surprise that a New Yorker like Valachi, who was barely literate, would know little about Nebraska's well known city. However it was October 1963 and Senator Curtis was obviously oblivious to the fact that organized crime had long been snuggled next to city's steaks and stockyards.
Tom "Pickhandle" Dennison (left) is considered the first vice peddler in Omaha. He was just coming out of infancy when his family relocated to Nebraska from Iowa in 1860. In 1892, at the age of 34 and with an estimated $75,000 in hand from gambling proceeds, he set his sight on Omaha. He quickly drew the correct conclusion after surveying the city's potential and determined it was 'wide open'. Dennison was thought to have parlayed his gambling winnings by investing in underground casinos and remarkably he opened up a bank on Douglas Street. The bank specialized in lending to savory characters, most notably illegal casino operators and saloon owners.
The profits that rolled into his coffers were quickly dispersed to local politicians in the form of lavish campaign contributions that gave him tremendous influence. In short he was what Boss Tweed was to Tammany Hall and Tom Pendergrast to Kansas City politics. In short order Dennison was able to have liquor licenses waved for lounges in so long as he was a silent partner. When the temperance movement started Dennison didn't fight but rather implored the groups to protest against the bars and dives that did not go along with his program.
In a few years Dennison controlled an area of Omaha known as the 'Sporting District' where prostitution, gambling and booze flowed freely. The District was located around 16th and Harney Streets. Dennison threw in his political support behind Democrat James 'Cowboy Jim' Dahlman (right)
despite his lack of experience. Dahlman let it be known of his tolerance for Dennison's vice operations. With the exception of one of the nine elections, Dahlman would serve as the Omaha mayor from 1906-1930.
During these early years Dennison only face one bump while he criminally prospered. Mayor Dahlman was defeated in 1918 by the reform minded candidate Edward P. Smith. A furious Dennison hatched a plan that included the local newspaper, The Omaha Bee, to print fictious stories of black men assaulting white women. This theme had already been played out in D.W. Griffith's 1915 silent movie The Birth of a Nation. The articles worked and coupled with uneasy economic times, racial violence began to take root and climaxed in September 1919 in what would be known as the Omaha Race Riot. The city came to its knees when a crowd proceeded to hang Will Brown, a local black man, along with several caucasians. The local courthouse was burned and Smith's ability to govern the city was called into questioning. During the lynching several of the assailants wore black face paint and one of those of the 300 charged in participating in the riots was Milton Hoffman, top aide to Dennison. Despite one of Dennison's own turning against him and collaborating the black face angle, no one was ever found guilty for participating in the violence and Dahlman was re-elected mayor in 1921.
During the 1920s with the passage of the 18th Ammendment and Volstead Act the production and sale of alcohol became illegal. If the state of Nebraska recognized this historic statute, Dennison and his cronies refused and through political connections the pressure to prosecute was skirted. In 1929 a survey was conducted in Omaha and it was determined that 1,500 outlets were serving whiskey despite it being a federal offense. It is also believed that Dennison reached out to Al Capone of the Chicago Outfit and Tom Pendergrast of the Kansas City political machine to form a distribution route for illegal booze.
In June 1932 Dennison along with 58 others was tried for bootlegging and distribution. The verdict was a hung jury. By now his health was giving in and while visiting associates in Chula Vista, CA Dennison was fatally injured in a car crash in February 1934. His funeral was attended by over 1,000.
From the Dennison syndicate two gangsters would take over and expand their interest outside of Omaha. They were Sam Ziegman, a Romanian Jewish immigrant and Eddie Barrick, who originally operated gambling spots in Des Moines.
Ziegman operated a bookie joint in downtown Omaha. By the 1930s Barrick relocated to Omaha and had become acquainted with Ziegman. The duo combined their talents and set about dominating much of the illegal in Omaha and the surrounding areas. Barrick garnered the reputation as one of the biggest layoff bookies in the midwest. Beginning in mid 1930s and into the 1940s the partners owned a piece of the Chez Paree casino in Carter Lake, IA. In 1950 a small book was siezed from Los Angeles crime boss Mickey Cohen containing contact information to the most notorious bookmakers and gambling operators in the country. Barrick and Ziegman's names were found alongside Frank Costello, Frank Erickson and Charles Binaggio of Kansas City.
In 1951 Nebraska began to demand tax from wagering activities. This was thought to have led to Ziegman and Barrick relocating to Las Vegas. Ziegman with Meyer Lansky and others became the original shareholders of the ill famed Flamingo Hotel and Casino. In 1972 Ziegman and Lansky would be indicted for skimming proceeds. They were acquitted.
Eddie Barrick passed in 1979 at the age of 93. The Las Vegas media dubbed him "America's biggest bookmaker". Ziegman passed away in 1984 at the age of 89.
Following the departure of Ziegman and Barrick from Omaha, Frank Calamia was considered a heavy player in the underground scene. He was part of the growing Italian area located in Omaha's Southside. Calamia was thought to have originally come from Kansas City. During the Prohibition Era Dennison installed Calamia to oversee the district's booze racket. When the Volstead Act was repealed in 1933 Calamia became a gambling figure and opened up C&C Publishing Co., which distributed the race wire results received from the larger Harmony News Service of Kansas City. With the passage of the wagering tax in 1951, C&C closed up shop and Calamia would die of natural causes in 1966 while residing in Omaha.
While gambling had slowed down in 1951 organized crime was in no short supply. The powerful Kansas City crime family and Omaha Southside would merely fill in the role of crime boss. The link between Kansas City and Omaha would continue for another 30 years. Additionally the Southside Italian district would produce four brothers and their associates that thought nothing in giving a beating and dope trafficking quickly became part of their daily routine. Yes indeed Senator Curtis was incredibly naive when he asked Valachi about the city's illicit activities.
Boss |
 Anthony "Stringbean" Marcella (1951-1959) |
Anthony Marcella was originally alligned with the Kansas City and a close confidant to both Kansas City mob boss Tony Gizzo and his top aide Charles Carrollo; Anthony Marcella is considered the first true cosa nostra boss to oversee the City of Omaha. Marcella had a long rap sheet with prior charges and/or convictions for assault and bootlegging. Marcella divided the city up between Kansas City interests and those connected with Chicago Outfit member and Des Moines crime boss Louie Fratto. Due to a 1951 tax levied against wagering open gambling dried up. Marcella had the notorious Biase brothers oversee the underground bookmaking operations from their Owl Smoke Shop located on 16th street. Meanwhile Marcella could be found in the middle of a national dope trafficking racket that involved John Ormento of the Lucchese crime family and Louis Fiano from the Genovese mob crew both based in New York. Marcella and Kansas City being linked to narcotics trafficking wasn't news by any means. As far back as the 1940s the Kansas City syndicate had been trafficking in marijuana and cocaine that originated in Cuba and was brought into the United States via Ignacio Antinori of the Tampa crime family. Later Kansas City gangster Tommy Lococo was considered one of the top traffickers for the crew. Marcella would ultimately be convicted for narcotics violation while in California and sentenced to 40 years in 1959. He was released by the early 1970s and died of natural causes during the mid 1970s. |
 Anthony "Tony Joe Biase" DiBiase (1959-1960) |
Anthony Joseph DiBiase was an Omaha native born on September 6, 1908 and raised in the Southside Italian district. A small built gangster who never grew taller than 5'3 and weighed 160 lbs; DiBiase made a choice to be in a criminal early in his youth and later would attempt to save his family from embarrassment when he changed his surname to Biase. His name would become synonymous with mafia in Omaha. Biase would be arrested and convicted multiple times for bookmaking, burglarly and theft. His first arrest was in 1922 for assault and robbery. Beginning in the late 1940s he and his brother Benny would purchase the Turf Cigar Shop on 16th Street and later renamed it the The Owl Smoke Shop. The store would serve as a base of operations and a front for their extensive bookmaking operations. Biase quickly came under the tutorledge of the Kansas City mob and would serve as the righthand man to Anthony Marcella. Another Kansas City mobster that was influential in Biase's life was the tough no non-sense enforcer Charlie Carrrollo. Other associates included Benny Barone, a Omaha mobster who appears to be affiliated with then Des Moines kingpin Louie Fratto. Besides his brother Benny there were brothers Sam and Louie both habitue of The Owl Smoke Shop and criminals in their own right. Another criminal associate was Kenneth Sheetz, a thug from Kansas City who would later be featured in Biase's downfall. By the mid 1950s, and quite possibly through his connections with Marcella, Biase could be found in the middle of a national heroin and marijuana trafficking ring. The participants were believed to John Ormento, a notorious Lucchese crime family capo from New York and Louis Fiano, a Genovese crime family soldier who would later relocate to California. Both legendary New York crime bosses Joe Bonanno and Vito Genovese were looking to expand their influence to the mid west and Biase and Marcella were chosen as their contacts. Outside of the narcotics ring Biase and his brothers kept busy with bookmaking and loansharking. Burglaries and robberies occurring in Omaha and even into others states often were linked to the crew. However their operation was about to come to a hault. Kenneth Sheetz was arrested in late 1959 for narcotics possession and for being involved in a burglarly of a bank. He quickly began to cooperate and Federal Bureau of Narcotics, forerunner to the modern FBI and DEA, agent Bernard Theisen was assigned to his case. Theisen, using the undercover name Joe Benedetto, would document several narcotics transaction between Biase and Sheetz. In March 1960 an Omaha grand jury indicted Biase. As soon as it was determined that Sheetz had turned informant Biase placed a contract on his head. At the time there was little in the way of a witness protection program and Sheetz appears not to have worried about returning to his Kansas City residence. It is quite possible that he did not make the connection or was unaware of the Kansas City mob's presence or their connection with Biase. In probably what was an attempt to take care of business and protect Biase, since Sheetz was a chief witness, the local criminal outfit assigned associates Felix 'Little Phil' Ferina and Tony 'Tiger' Cardarella. The Kansas City crime family would historically prove themselves as a major players during the height of America cosa nostra. However this would have never been the case if they always made choices similar to the one that involved Ferina and Cardarella to the attempted hit on Sheetz. While Ferina was a classic gangster who never held a legitimate occupation, Cardarella was the opposite and was said to be scared of his own shadow. Caradarella was a record shop owner and part time mob associate. His nickname 'Tiger' was a joke among Kansas City gangsters and he was anything but fierce. At best he was used for laundering money and his shop would have made an ideal place to store stolen goods. On June 20, 1960 Cardarella and Ferina stalked their prey and descended upon Sheetz home. After multiple gunshots, four of them making contact with Sheetz, the duo quickly fled. It did not help that one of them was clearly heard yelling "This is for Tony Joe!" nor did it assist Biase's defense lawyer that Sheetz survived the attempt. Neither Ferina or Cardarella were masked and Sheetz had recognized them both. He would go on to testify against all three of them. In December 1960 Biase was convicted of narcotics trafficking and sentenced to 15 years. He was handed an additional 10 years when he was convicted Caradarella and Ferina for attempted murder and conspiracy. An appellate court reversed his conspiracy conviction and Biase was paroled from Leavenworth federal prison in 1970. Both Cardarella and Ferina were later murdered in the mid 1980s. After his parole Biase maintained a low profile. In 1986 he was arrested on a misdemeanor gambling charge and lived in Omaha's southside. He died on September 21, 1991. |
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John Salanitro Jr. (1960-1974) |
John Salanitro was born into a family with criminal ties to Omaha's southside. The Salanitro name and their ties to bootlegging and gambling dated back to the 1920s. In odd chain of events brothers Fidele and Sebastian had a falling out. Sebastian Salanitro killed his brother in 1946 leaving John Salanitro an orphan. Sebastian Salanitro was eventually acquitted on all charges stemming from his brother's demise. By his teens Salanitro was becoming associated with the Omaha racketeers. One in particular was local hoodlum Bennie Barrone. Both were arrested in the late 1950s for their involvement in a gambling house. Alongside Salanitro was Ross DiMauro who was described as big time bookmaker whose hobbies included real estate investing. In 1971 DiMauro was sentenced to three years for contempt for failing to answer grand jury questions. He had refused to acknowledge his association with Chicago southside Connection Men (non Italian Outfit associates) Ralph Pierce. By the early 1970s Salanitro was associated with not only with DiMauro but with local bookmaking giant Max Abramson. The latter was the 'little giant' with a police record dating back decades. The appearance is that Abramson represented all of Omaha bookmakers and worked in conjunction with Salanitro. By now it was estimated that bookmaking was raking in $500,000 a week. Following a raid on a Denver gambling house records seized there indicated that the Smaldone brothers, legendary Rocky Mountain racketeers, were laying off sizable bets to Salanitro and Abramson. In March 1975 Salanitro, DiMauro, Abramson and 14 others were indicted for illegal gambling. Although authorities never vocally stated that the crew was tied to cosa nostra outfits evidence presented in courted indicated activity with crime families located in Milwaukee, St. Louis, Kansas City and Chicago. Salanitro and others were found guilty. Salanitro was sentenced to 15 months but while on appeal he died of a heart attack April 15, 1976 at the age of 44. Abramson followed when he died of natural causes in 1981. |
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John Costanza (1976-1981) |
After serving 6 months for bookmaking (a 1975 trial that snagged current Kansas City crime boss Johnny Sciortino), John Costanza was sent to Omaha by the Kansas City outfit to oversee the rackets. Alongside him was Kansas City mobster Pat O'Brien. In Omaha Jim Bonofede was about to open Angie's Restaurant. The Italian dining establishment would remain in business until they closed the doors in 2003. Bonofede along with Omaha bar owner Donald Quinn would be the local middle managers on behalf of the Kansas City crime family. Quinn was no stranger to underworld ties and in 1975 had been convicted of attempting to bribe a juror involved in a gambling case. The bookmaking racket continued to reap substantial profits for Costanza's crew and the Kansas City gangsters. By the late 1970s the FBI was about to climax an investigation into the Civella Kansas City crime family. The case would eventually tie in with the Strawman case in Las Vegas that convicted many for skimming casino profits before they were accounted. Authorities uncovered that during the 1981 NFL season that Costanza had reaped $500,000 from gambling proceeds and was regularly meeting with Tony Civella, future boss of the historical crime family and nephew to then current boss Nick Civella. Authorities shut down the operation in November of that year costing the crime family millions because they failed to capitalize on the Super Bowl, which has traditionally been a big payday for most cosa nostra outfits. Quinn, O'Brien and Bonofede would receive two years for their roles. Costanza was also sentenced as well but received additional time for cases built around the Kansas City metro area. In the early 1990s he was snagged along with Tony Civella for being involved in the prescription drugs black market. He was released in 1995 and died in 2002 at the age of 62. The 1981 gambling raid was the last of it's kind. In 1988 Nebraska removed gambling from a list of crimes deemed worthy enough for wiretapping. Today Omaha boasts keno parlors and many of the locals flock to Iowa where pari-mutuel wagering and casino boat operations are legal. Authorities do believe that boomaking is still very much present in the city and some of it is undoubtedly tied to the Kansas City mob. |
Soldiers |
 Bernard "Benny Biase" DiBiase (1940s-1970s) |
The second oldest Biase or DiBiase brother to work the Omaha rackets, Benny Biase was a partner in the gang's hangout the Owl Smoke Shop. A longtime associate of the Kansas City crime family his star faded when his brother was sent away for narcotics trafficking and murder conspiracy. Biase was thought to have kept active in small time bookmaking and at one time had been labeled a fence and international dope trafficker. He died of natural causes at the age 81 in 1992. |
 Louis "Louie Biase" DiBiase (1940s-1970s) |
Born in Omaha in November 1913, Sam Biase was a partner in Tony Joe Biase's Owl Smoke Shop. Much like his brothers he had an ample Omaha police rap sheet for entries including illegal gambling and several counts of felony robbery. Like the rest of his brothers he was heavily tied to the Kansas City syndicate, parts of the Milwaukee crime famiy and Lou Fratto of Des Moines. He died of natural causes in March 2, 2002. |
 Samuel "Sam Biase" DiBiase (1940s-1970s) |
As of 2009 Louise Biase, who was born in 1919, is the last living Biase brother in Omaha. Louis Biase was a bit of a sleeper and the least amount is known about him. At his height during the 1950s-60s Louie Biase was known to be a bit of traveler touring various racetracks throughout the United States. He never claimed any legitimate employment and prior arrests included entries for robbery, possession of burglary tools, and operating a three dice game known as bunco. |