The "Watchdog" Agency: Fighting Organized Crime

The "Watchdog" Agency: Fighting
Organized Crime on the Waterfront in
New York and New Jersey
Michelle J. Demeri*
I. INTRODUCTION
The attention paid to dock workers started in 1949, when Malcolm
Johnson wrote a series of articles appearing in the New York Sun
highlighting the infiltration of organized crime on the New York-New
Jersey Waterfront (the Waterfront).1 These dockworkers worked along the
Waterfront for decades, but operated in the shadows of a society dependant
on their labor, which included the movement of food, clothing, and other
essential goods in and out of the port. These longshoremen worked for an
honest pay, but were overshadowed by the crooks, thieves, loansharks,
gamblers, and the "bosses" that controlled it all-the mob.
Johnson's articles were followed by the film On the Waterfront, which
won eight Academy Awards. 2 In the film, Marlon Brando plays Terry
Malloy, a former boxer turned longshoreman, 3 who is given a "no-show"
* Assistant Counsel at the Waterfront Commission of New York Harbor (WCNYH). B.A.,
2004, Clark University; J.D. 2007, New England Law I Boston. The author would like to
thank Chief Researcher David Byrne of the WCNYH and Special Agent Jonathan Mellone
of the United States Department of Labor for their research assistance. The views
represented herein do not necessarily represent the position of the Waterfront Commission
or any other agency or authority. This article was produced independently by the author and
all research was conducted in the free time of the parties mentioned.
See generally MALCOLM JOHNSON, ON THE WATERFRONT: THE PULITZER PRIZE
I.
WINNING ARTICLES THAT INSPIRED THE CLASSIC FILM AND TRANSFORMED THE NEW YORK
HARBOR (2005).
2.
ON THE WATERFRONT (Columbia Pictures 1954); The 27th Academy Awards
(1955),
ACADEMY
OF MOTION PICTURE ARTS AND
SCIENCES,
OSCARS.ORG,
http://www.oscars.org/awards/academyawards/legacy/ceremony/27th.html (last visited Apr.
15, 2012).
3. See generally N.Y. UNCONSOL. § 9806 (McKinney 2002); N.J. STAT. ANN. §
32:23-6 (West 1990) (providing a definition of longshoreman).
257
258
CRIMTNAL AND CIVIL CONFINEMENT
[Vol. 38:257
job by a mob-connected union boss, Johnny Friendly.4 During his career as
a fighter, Malloy threw a match so that Friendly could win money betting
against him. 5 Malloy, who struggles with his decision to cooperate with
authorities and expose the corruption on the Waterfront, tells his brother in
a memorable scene, "I coulda been a contender," referring to his boxing
career had he not thrown the fight for Friendly. 6 When Malloy decides to
stand up to Friendly and the organized crime influence, he is blacklisted
and cannot find work anywhere on the Waterfront.7
On the Waterfront illustrates how a surplus of available labor provided
mob-connected union leadership with the ability to control its
membership.8 Work on the Waterfront was guaranteed only for those
supportive members who agreed to "kick back" a portion of their wages.9
Shipping companies did not directly hire longshoremen because their needs
were so irregular.' 0 Instead, they paid stevedore companies on a per ton
basis to load and unload ships." To accommodate the shipping companies'
needs, the stevedore companies developed a "shape-up system" that hired
laborers on an as-needed basis.12 This system established regular gangs of
men that were given first rights to jobs at the gangs' regular pier.13 It suited
the needs of the shipping companies, but left the doors wide open for
corrupt hiring bosses who often included an extra crew of fictitious
workers.14 To ensure labor peace, which would allow their businesses to
4.
ON THE WATERFRONT, supra note 2.
5.
6.
Id
Id.
7.
8.
Id.
Id
9.
THE WATERFRONT COMM'N OF N.Y. HARBOR ANNUAL REPORT, 1 (2011), available
at http://www.wcnyh.org/docs/WCNYH_2011_AnnualReport.pdf [hereinafter
WATERFRONT REPORT].
10.
11.
Id.
"Stevedore" shall also include (a) contractors [not including employees] engaged
for compensation pursuant to a contract or arrangement with the United States,
any state or territory thereof, of any department, division, board, commission or
authority of one or more of the foregoing, in moving freight carried or consigned
for carriage between any point in the port of New York district and a point outside
said district on vessels of such a public agency berthed at piers, on piers at which
such vessels are berthed or at other waterfront terminals.
N.Y. UNCONSOL. § 9905(1)(a) (McKinney 2002), and N.J. STAT. ANN. 4 32:23-85 (West
1990).
12.
See WATERFRONT REPORT, supra note 9.
13.
See id.
14.
Id; see also JAMES B. JACOBS, MOBSTERS, UNIONS, AND FEDS: THE MAFIA AND
THE AMERICAN LABOR MOVEMENT 102 (2006).
2012]
THE "WATCHDOG" AGENCY
259
prosper, "[s]tevedoring companies were forced to employ 'no-show'
employees"' 5 so longshoremen would be paid even when they did not work
at all.
Other problems existed on the Waterfront. Public loaders, who were paid
to load and unload cargo from trucks, added an unnecessary toll on the
movement of goods throughout the port.16 Loansharks preyed on
longshoremen who could not get enough hours of work to feed their
families or who gambled away their salaries to mob-sanctioned
bookmakers and cargo pilfering was rampant in the port.17 In the early
1950s, the poor working conditions at the ports of New York and New
Jersey were documented through public hearings put on by the New York
State Crime Commission and the New Jersey Law Enforcement Council.' 8
Part II of this Article discusses the creation and purpose of the
organization that combats organized crime influence on the Waterfront and
provide an overview of organized crime's influence spanning the past
twenty years. Part III discusses the control the Mafia had on the Waterfront
in the 1990s and 2000s and various legal cases brought against its
members. Part IV analyzes different tools the Waterfront Commission uses
to combat organized crime. Part V concludes that organized crime still
exists on the Waterfront and that the Waterfront Commission is uniquely
qualified to eradicate it.
II. THE COMMISSION: CREATION, REGULATION OF WORKERS, AND UNION
OVERSIGHT
A. Creation and Purpose
President Dwight D. Eisenhower approved a pact between New York
and New Jersey that created the Waterfront Commission of New York
Harbor (Waterfront Commission or WCNYH) in August of 1953.19 Part I,
Article I of the Waterfront Commission Act lays out the framework for
change, indicating that:
The states of New York and New Jersey hereby find and declare that
the conditions under which waterfront labor is employed within the port
of New York district are depressing and degrading to such labor,
resulting from the lack of any systematic method of hiring, ... corrupt
15.
WATERFRONT REPORT, supra note 9; see also William Finnegan, Watching the
Waterfront: Mobsters, Terrorists,and Docks of New York Harbor,THE NEW YORKER (June
19, 2006) at 10, availableat www.wcnyh.org/news/TNY-watching the-waterfront.pdf.
16.
See WATERFRONT REPORT, supra note 9.
17.
18.
Id.
WATERFRONT REPORT, supra note 9.
Id.; see also JACOBS, supra note 14, at 13-14.
19.
CRIMINAL AND CIVIL CONFINEMENT
260
[Vol. 38:257
hiring practice and the fact that persons conducting such hiring are
frequently criminals and persons notoriously lacking in moral character
and integrity and neither responsive or responsible to the employers nor
to the uncoerced will of the majority of the members of the labor
organizations of the employees; that as a result waterfront laborers
suffer from irregularity of employment, fear and insecurity, inadequate
earnings, an unduly high accident rate, subjection to borrowing at
usurious rates of interest, exploitation and extortion as the price of
securing employment and a loss of respect for the law; that not only
does there result a destruction of the dignity of an important segment of
American labor, but a direct encouragement of crime which imposes a
levy of greatly increased costs on food, fuel and other necessaries
handled in and through the port of New York district.20
The pact gave a tremendous amount of responsibility to the
Commission. The Waterfront Commission has two commissioners, each
appointed by the respective governor of New York and New Jersey. 21 Each
commissioner serves a term of three years and can only act by unanimous
vote of both members. 22 Less than one hundred people are employed by the
WCNYH, divided among seven divisions: Executive, Law, Licensing and
Employment Information Centers, Police, Intelligence, Administration and
Audit, and Information and Technology. 23 It is funded by a maximum 2%
assessment on covered waterfront employees, paid by employers. 24 The
WCNYH's mandate is "to investigate, deter, combat and remedy criminal
activity and influence in the Port of New York and New Jersey, and to
ensure fair hiring and employment practices so that the port and region can
grow and prosper." 2 5 The WCNYH has various general powers to fulfill its
mandate including, but not limited to the power:
To administer and enforce the provisions of this compact; 26
To make and enforce such rules and regulations as the commission may
deem necessary to effectuate the purposes of this compact or to prevent
20.
N.Y. UNCONSOL.
§
9802 (McKinney 2002); accord N.J. STAT. ANN.
§
32:23-2
(West 1990); see also Alan A. Block, "On the Waterfront" Revisited: The Criminology of
Waterfront Organized Crime, 6 CONTEMP. CRISES 373, 383 (1982).
21.
WATERFRONT REPORT, supra note 9, at 3.
22.
N.Y. OFFICE OF THE INSPECTOR GEN., INVESTIGATION OF THE WATERFRONT
COMM'N OF N.Y. HARBOR 6 (2009), availableat http://www.centerforinvestigativereporting.
org/files/stateprofiles/newyork/newyorkwaterfront.pdf.
23.
WATERFRONT REPORT, supra note 9, at 5-6.
24.
Id.
25.
26.
Id. at 1.
N.Y. UNCONSOL. LAW § 9810(6) (McKinney 2002); N.J. STAT. ANN. § 32:23-
10(6) (West Supp. 2011)
2012]
THE "WATCHDOG" AGENCY
261
the circumvention or evasion thereof ... ;27
[T]o . . . issue subpoenas throughout both states to compel the
attendance of witnesses and the giving of testimony and the production
of other evidence; 28
To have . . . full and free access, ingress and egress to and from all
vessels, piers and other waterfront terminals ... for the purposes of
making inspection or enforcing the provisions of this compact . . . .;29
To make investigations, collect and compile information concerning
waterfront practices .. . .
To advise and consult with representatives of labor and industry and
with public officials and a encies ... upon all matters which the
commission may desire ... .;
To co-operate with and receive from any department, division, bureau,
board, commission, or agency of either or both States ... such
assistance and data as will enable it properly to carry out its powers and
duties hereunder; 32
[I]ssue a temporary permit to any prospective licensee for a license. 33
These powers enabled the Commission to make many positi ve changes on
the waterfront and in the shipping industry.
B. Regulation of Workers
To combat the "depressing and degrading" conditions on the Waterfront,
the Waterfront Commission expelled public loaders from the port and
implemented a hiring system that licensed longshoremen and assigned
them work, replacing the corrupt "shape-up system." 34 To obtain
registration with the WCNYH, longshoremen, maintenance men, and
warehousemen cannot be a danger to the public's peace and safety. 35 These
27.
28.
29.
30.
31.
32.
33.
N.Y. UNCONSOL. LAW § 9810(7); N.J. STAT. ANN. § 32:23-10(7).
N.Y. UNCONSOL. LAW § 9810(8); N.J. STAT. ANN. § 32:23-10(8).
N.Y. UNCONSOL. LAW § 9810(9); N.J. STAT. ANN. § 32:23-10(9).
N.Y. UNCONsOL. LAW § 98 10(11); N.J. STAT. ANN. § 32:23-10(11).
N.Y. UNCONSOL. LAW § 9810(12); N.J. STAT. ANN. § 32:23-10(12).
N.Y. UNCONSOL. LAW § 9810(14); N.J. STAT. ANN. § 32:23-10(14).
N.Y. UNCONSOL. LAW § 9815; N.J. STAT. ANN. § 32:23-15.
JACOBS, supra note 14, at 14.
35.
See N.Y. UNCONSOL. LAW §§ 9831, 9841-44 (McKinney 2002); N.Y. UNCONSOL.
LAW § 9912-13 (McKinney Supp. 2012).
34.
262
CRIMINAL AND CIVIL CONFINEMENT
[Vol. 38:257
workers must obtain a license or registration to work.3 6 The WCNYH
requires any applicant for a license or registration to furnish facts and
evidence to enable it to determine whether to grant the license or
registration.3 7 Pier superintendents, checkers,3 8 hiring agents, port
watchmen, and stevedore companies must have Iood character and
integrity in order to obtain licenses with the WCNYH. 9 The WCNYH can
suspend or revoke licenses and registations for not meeting these
standards. 40
Reasons for the denial or revocation of a license or registration include,
but are not limited to: committing fraud, deceit, or misrepresentation in
securing a license or registration, or in the conduct of the licensed activity;
violations of the compact; illegal drug use or trafficking; convictions of a
felony, high misdemeanor, or illegally using, carrying, or possessing a
dangerous weapon; making or possessing burglar's instruments; buying or
receiving stolen property; unlawful entry into a building; or aiding an
escape from prison.4 1 If an applicant is convicted of a felony, high
misdemeanor, or any of the other crimes discussed above, it is not an
automatic bar from licensure or registration. 4 2 Rather, the applicant,
licensee, or registrant may submit evidence to the Waterfront Commission
that he has, for a period of not less than five years, 43 conducted himself
according to the applicable standard: either good character and integrity or
that he has not been a danger to public peace and safety." The Waterfront
Commission will consider this evidence and can issue an order removing
N.Y. UNCONSOL. LAW §§ 9812-14 (McKinney 2001); N.Y. UNCONSOL. LAW 991236.
13 (McKinney Supp. 2012).
37. See § 9813; N.J. STAT. ANN. § 32:23-13 (West 1990).
38.
"Checker" shall mean a longshoreman who is employed to engage in direct and
immediate checking of waterbome freight or of the custodial accounting thereof
or in the recording or tabulation of the hours worked at piers or other waterfront
terminals by natural persons employed by carriers of freight by water or
stevedores.
N.Y. UNCONSOL. § 9905(5) (McKinney 2002), and N.J. STAT. ANN. § 32:23-85 (West
1990).
39.
See N.Y. UNCONSOL. §§ 9812-14, 9841-44 (McKinney 2002); N.Y. UNCONSOL. §
9912-13 (McKinney Supp. 2012); see also §§ 32:1-35:78.
N.Y. UNCONSOL. §§ 9831; N.J. STAT. ANN. § 32:1-35:78 (West 1990).
40.
41.
N.Y. UNCONSOL. § 9818 (McKinney Supp. 2012).
N.Y. UNCONSOL. § 9821 (McKinney 2002).
42.
43.
Id The five year period can be measured either from the date of payment of any
fine imposed upon such person, the suspension of sentence, or unsupervised release. Id.
44.
N.Y. UNCONSOL. § 9821 (McKinney 2002); N.J. STAT. ANN. § 32:23-105 (West
Supp. 2011).
2012]
THE "WATCHDOG" AGENCY
263
such ineligibility. 4 5
The Waterfront Commission cannot deny any application for a license or
registration without giving the applicant, licensee, or registrant reasonable
prior notice and an opportunity to be heard.4 6 These administrative hearings
are held at the Commission's offices before an administrative law judge.47
The standard of proof is a preponderance of the evidence and decisions can
only be overturned if the Waterfront Commission acted in an arbitrary and
capricious manner. 48 In cases where a licensee or registrant has been
indicted for or otherwise charged with a felony or indictable offense, the
Waterfront Commission may suspend a license or registration pending the
results of a hearing. 49
Specifically, the amended laws indicate that a license or registration can
be denied or revoked based on:
Association with a person who is identified by a federal, state, or local
law enforcement agency as a member or associate of an organized
crime group, terrorist group, or a career offender cartel, or who is a
career offender under circumstances where such association creates a
reasonable belief that the participation of the applicant in any activity
required to be licensed (or registered) under this act would be inimical
to the policies of this act.50
After September 11, 2001, the existing grounds for denial or revocation of
licenses or registrations were too restrictive on the Waterfront Commission.
There was a growing need to protect the ports from unsavory characters,
leading to the enactment of this bill.5 Since 2008, the Waterfront
Commission has issued notices of hearings and subsequently charged
applicants, licensees, and registrants with association, pursuant to the
statute. 52 Many have withdrawn their applications rather than face the
45.
46.
N.Y. UNCONSOL. § 9821; N.J. STAT. ANN. § 32:23-105 (West Supp. 2011).
See N.Y. UNCONSOL. §§ 9845, 9847 (McKinney 2002); N.J. STAT. ANN. § 32:23-
46 to 52 (West 1990 & Supp. 2011).
47.
N.Y. UNCONSOL.
§
9849 (McKinney 2002); N.J. STAT. ANN.
§
32:23-49 (West
Supp. 2011).
48.
CC Lumber Co., Inc. v. Waterfront Comm'n of N.Y. Harbor, 292 N.E.2d 1, 6
(N.Y. 1972).
49.
N.Y. UNCONSOL. § 9848 (McKinney 2002); N.J. STAT. ANN. § 32:23-48 (West
Supp. 2011).
50. N.Y. UNCONsOL. §§ 9912, 9913 (McKinney Supp. 2012); N.J. STAT. ANN. §§
32:23-92 to 93 (West Supp. 2011).
51.
S. 189, 21Ith Leg. (N.J. 2005).
52. See infra Part III.D.3; see Press Release, Waterfront Comm'n of N.Y Harbor, NJ
Superior Court Upholds Waterfront Comm'n Subpoena of Longshoreman (June 10, 2011),
http://www/wcnyh.org/newspaper59.html.
CRIMINAL AND CIVIL CONFINEMENT
264
[Vol. 38.:257
charges. 53
C. Union Oversight
The Waterfront Commission has limited oversight of the union and may
not interfere with the collective bargaining agreement-the labor contract
between the employer and the union.5 4 However, the Waterfront
Commission Act prohibits any person who has been convicted of a felony,
high misdemeanor, or misdemeanor of moral turpitude from serving as an
officer, agent, or employee of any union which represents employees
licensed by the Commission. s There are exceptions that could remove this
prohibition. One exception allows officials and employees who have
received a pardon by the governor or another appropriate authority in the
state the conviction was received and another enables persons who have
received a certificate of good conduct from the board of parole. 56
III. MOB CONTROL ON THE WATERFRONT
A.
Understanding the Union
The International Longshoreman's Association (ILA), created in 1892, is
the largest union of maritime workers in North America, representing
upwards of 65,000 longshoremen. 57 This union includes the longshoremen
who work at the ports of New York and New Jersey. 58 Since its inception,
the mob has corrupted various legitimate institutions that operate on the
Waterfront, including ILA officials and stevedore companies. 59
Loansharking, gambling, and theft as well as the infiltration, domination, or
use of a union or employee benefit plan for personal benefit by illegal,
violent, or fraudulent means-commonly referred to as labor
53.
Joseph Fisch, Office of the Inspector Gen., Investigation of the Waterfront
Commission of New York Harbor 16 (2009), availableat http://www.ig.state.ny.us/pdfs/
Investigation%20of/o2Othe%2OWaterfront%20Commission%20of%2ONew%2OYork%20H
arbor.pdf.
N.Y. UNCONSOL. §§ 9868 to 9869 (McKinney 2002); N.J. STAT. ANN. §§ 32:23-68
54.
to 69 (West 1990).
See N.Y. UNCONSOL. § 9933 (McKinney 2002); N.J. STAT. ANN. §§ 32:23-80
55.
(West 1990).
N.Y. UNCONSOL. § 9933; N.J. STAT. ANN. § 32:23-80.
56.
Welcome, International Longshoreman Association, ILAUNION.ORG (2010),
57.
http://www.ilaunion.org/index.html (last visited on April 27, 2012).
See id.
58.
See Battling Corruption in the ILA: A Partial Chronology, UNION DEMOCRACY
59.
REv. (Ass'n for Union Democracy, Brooklyn, N.Y.), Aug. 2005, available at
http://www.uniondemocracy.org/UDR/97-attling%20corruption%20in%20the%20ILA.htm;
see generally Finnegan,supra note 15.
2012]
THE "WATCHDOG" AGENCY
265
racketeering-are among crimes perpetrated by the mob through corruption
of legitimate institutions.6 0 These labor racketeers determined who worked
on the Waterfront and how fast ships were loaded and unloaded. 61 They
collected "payoffs" for jobs, extorted stevedore companies, facilitated
cargo theft, and siphoned benefit-funds. 62 Unable, or in some cases
unwilling, to fight organized crime, some companies considered payoffs,
missing cargo, and employin "no-show" workers to be the cost of
conducting business in the port.
Unions were created to give workers a platform for issues experienced at
work like wage increases or paid sick leave, 64 but the ILA was plagued by
years of corruption. 65 Headlines stating that union officials and members
were providing "kick-backs" to organized crime made it hard for the public
to believe that "fairness [exists] for all working people." 66 In addition, the
cost of labor racketeering was passed to the consumer.67 In 1952, Spruille
Braden, Chairman of the New York City Anti-Crime Committee, declared
that "organized crime along the waterfront costs at least $350 million a
year in hidden taxes." 68 By "hidden taxes," Braden was referring to the
"mob tax," part of which was passed on to the consumer through higher
prices. 69 Braden's formula shows that five percent of the $7 billion worth
of goods that passed through the ports in 1952 was stolen.70 Today,
60.
See WATERFRONT REPORT, supra note 9, at 2.
61.
See JACOBS, supra note 14, at 49.
62.
See id. at 51.
63.
See JACOBS, supra note 14, at 51; Alan A. Block, "On the Waterfront" Revisited:
The Criminology of Waterfront OrganizedCrime, 6 CONTEMP. CRISEs 373, 375 (1982). This
was not an issue for public welfare as it concerned mainly the dockworkers and their
families. Companies paying the "mob tax" and the occurrence of illicit activity was
contained within the industry so the public-at-large did not have reason for concern.
Finnegan, supra note 15.
See AFL-CIO, What Unions Do, AFLCIO.ORG, http://www.aflcio.org/Learn64.
About-Unions/What-Unions-Do (last visited Mar. 24, 2012).
65.
Battling Corruptionin the ILA: A PartialChronology,supra note 59.
66.
E.g., Thomas Zambito, Waterfront Shakedowns N.J. Union Leaders Face Charges
in Docks Scam, N.Y. DAILY NEWS (Mar. 8, 2002), http://articles.nydailynews.com/2002-0308/news/1819841 1global-terminal-p-o-ports-bayonne; see AFL-CIO, supranote 63.
67.
G. Robert Blakey & Ronald Goldstock, "On the Waterfront ": RICO and Labor
Racketeering 17 AM. CRIM. L. REV. 341, 342 (1980).
68.
Dock Rackets' Cost Put at $350,000,000, N.Y. TIMES, Nov. 8, 1952, at 29 (on file
with author).
69.
Id; see Larry McShane, On the Waterfront, in the Courtroom; StoriedNew Jersey
Union Local Faces Another Racketeering Trial This Spring, WASH. PosT, Jan. 4, 2004, at
A10.
70.
Dock Rackets' Cost Put at $350,000,000, supra note 68.
CRIMINAL AND CIVIL CONFINEMENT
266
[Vol. 38:257
"[r]oughly $200 billion in cargo moves through the port each year." 71
B.
Structure of the Mob
The Mafia is an organization of five families in the New York-New
Jersey area. 72 These families represent organized criminal factions headed
by "captains." 73 These factions are referred to as "crews." 74 The crews are
made up of "soldiers" or "made" members and "associates. "7 5 Each captain
is responsible for supervising, supporting, and protecting his crew. 7 "In
return, the captain receives a share of the crew's earnings."77 The head of
the family is referred to as the "boss." 78 The boss of the family is assisted
by the "underboss" and a "consigliere." 7 9 With the assistance of the
underboss and the consigliere, the boss is responsible for setting policy,
resolving disputes between family members and members of other factions,
and approving all significant actions taken by the family.8 0 When an
official boss, underboss, consigliere, or captain became incarcerated,
another member of the family is temporarily appointed to the vacant
-81
position.
C. Dividing the Waterfront
In the late 1960s, George Barone organized a mob sit-down at the
docks. 82 Barone, once a member of the Jets, would later become a made
member of the Genovese crime family and an ILA official.83 As a result of
the sit-down, the Waterfront was divided: the Gambino family operated
Brooklyn and Staten Island and the Genovese family operated Manhattan
71.
Tom Hester Sr., Joseph Queli of Wall Gets 5 Years in Prison for Waterfront
Loansharking,NEWJERSEYNEwSRooM.COM (Feb. 10, 2012), http://www.newjersey
newsroom.com/state/joseph-queli-of-wall-gets-5-years-in-prison-for-waterfrontloansharking/page-2.
72.
Indictment at 2-3, United States v. Gotti, S1 02 Cr. 743 (RCC) (S.D.N.Y 2004).
This "nationwide criminal organization known by various names, including the 'Mafia' and
'La Cosa Nostra' ('LCN'), operated through entities known as 'Families."' Id.
73.
Id. at 3.
74.
75.
Id.
Id.
76.
Id.
77.
78.
Id.
79.
80.
Id. at 3-4.
Id. at 4.
81.
82.
83.
Id
Id.
Id.
Id.
2012])
THE "WATCHDOG" AGENCY
267
and New Jersey. 84 This balance of power allowed organized crime to
infiltrate the Waterfront for decades. 85 However, the ILA continues to deny
the level of mob infiltration that exists on the Waterfront. 86 According to its
website, the ILA purports that the level of mob infiltration has "never even
remotely approached the elaborate plots designed in the artists' minds. It
is ... never to the extent that first Hollywood and later the press would
have the public believe," but is rather a "gangland myth."87
In 2010, legislation was proposed in New Jersey, calling for the
dissolution of the Commission, challenging its continued existence on the
grounds that the purpose for which the Waterfront Commission was created
no longer exists.8 8 Prior to proposing this legislation, Thomas Leonardis,
then-President of ILA Local 1235, testified before the New Jersey State
Senate Economic Growth Committee that the Waterfront Commission was
as obsolete as a loading hook. 89 Leonardis was later arrested for extorting
ILA members. 90 Without the presence of the WCNYH working together
with other agencies to fight back against the influence of organized crime
on the Waterfront, the labor racketeers would be free to control the union
and the Waterfront without outside interference. 9 1
D. The Past Twenty Years of Corruption
The enactment of the Racketeer Influenced and Corrupt Organizations
(RICO) statute in 1970 has impacted the prosecution of labor racketeering
cases. 92 RICO, which prohibits racketeering activities "defined by
Id.
84.
85.
McShane, supra note 69.
86.
History: Struggle and Changes, ILAUNION.ORG, http://www.ilaunion.org/history
struggle.html (last visited Jan. 31, 2012); see Ted Sherman, Tale of the Docks and Mobsters
Gets New Life, N.J. STAR LEDGER (May 1, 2005), http://www.wcnyh.org/news/Tale of
DocksandMobstersget newlife.pdf ("'There is no mob influence in the union,' said
ILA spokesman James McNamara.").
History: Struggle and Changes, supra note 86.
87.
88.
S. 2360, 214th Leg. (N.J. 2010) (discussing purpose as combating criminal
activity, specifically organized crime, on the ports).
89.
Timothy J. Carroll, Waterfront Hearing,Lesniak on Politics: "Maybe We Need a
Waterfront Commission, "POLITICKERNJ.COM (Sept. 23, 2010), http://www.politickernj.com
/hearing-waterfront-oversight-lesniak-politics-maybe-we-need-waterfront-commission.
90.
Press Release, District of N.J., E.D.N.Y., Genovese Organized Crime Family
Soldier and Associates Indicted on Racketeering Charges, Including Extortion of Int'l
Longshoremen's Ass'n Members (Jan. 20, 2011), http://www.wcnyh.org/news.html.
91.
Press Release, Waterfront Comm'n of N.Y. Harbor, Why Kill the Mob Watchdog
at the Port (Oct. 10, 2010), http://www.wcnyh.org/newspage41.html; see also Finnegan,
supra note 17.
92.
See Blakey, supra note 67, at 349.
CRIMINAL AND CIVIL CONFINEMENT
208
[Vol. 38:257
reference to twenty-four separate types of federal crimes and eight different
state felonies," is an important statutory weapon used by federal
prosecutors against labor racketeering. 93 The statute does not make illegal
any action that was previously legal, but rather, "adds the concept of
'enterprise' to a criminal prosecution, requiring additional proof of a
'pattern' of racketeering activity and its relationship to an 'enterprise' in
addition to that required to prove the individual crimes alleged." 94
1.
1990s
On February 14, 1990, a federal civil RICO suit was filed against six
ILA unions. 95 Various union and management officials were named in the
suit and many of them were charged with being connected to organized
crime. 96 Two years later, a settlement was reached under a consent decree
with the unions agreeing to "clean up their act."9 7 As a result of this suit,
six ILA unions were placed under federal monitorships.9 8 Thirteen years
after the filing of the suit, a federal trusteeship was imposed on Local 1588
after it violated the consent decree. 99 Those who were identified as "mob
figures" were enjoined from associating with the ILA.' 0 0
In 1994, at a social club in Brooklyn, New York, Michael "Cookie"
D'Urso, a Genovese crime family associate, was shot in the head.' 0 ' He
survived, became a law enforcement cooperator, and aided in convicting
other organized crime figures, including former Genovese crime family
boss, Vincent "Chin" Gigante.1 02 D'Urso recorded conversations between
himself and fellow Genovese crime family associate Thomas Cafaro, who
was also a union employee and the son of Vincent "Fish" Cafaro. The
conversations of Cafaro and D'Urso highlighted that the mob controlled the
Waterfront through the union:103
93.
Id. at 348.
94. Id. at 348-49. Blakey and Goldstock's famous article promotes RICO as an
important statutory weapon used against labor racketeering. They discuss how RICO can
best attack various labor rackets including fringe benefit misuse, "sweetheart" contracts,
strike insurance, and racketeering in illicit business. See id at 342-46.
95.
Battling Corruption in the ILA: A PartialChronology,supra note 59.
96.
Id.
97. Id.
98.
Id
99.
Id
100.
Id
101.
See Michael Brick, Jury Rules One Way, Judge Another in Mob Killing, N.Y.
TIMES (Dec. 15, 2007), http://www.nytimes.com/2007/12/15/nyregion/15mob.html.
102.
Id.
103.
See Government Exhibit T4, Transcript of Conversation between Michael
"Cookie" D'Urso and Thomas Cafaro, Mar. 23, 2000, 14:48:33-14:50:00 (on file with
2012]
THE "WA TCHDOG" AGENCY
269
CAFARO: I told our friend.. . "[W]e got to do the repair, container
repair, chassis repair, store them and charge a rent and the trucking." . . .
DURSO: And what did he say?
CAFARO: "You're right."
DURSO: What happens if legitimate guys come in and do it? Then
what?
CAFARO: They give them a hard time with the union. You know what
I mean?
DURSO: They'll sick them on them?
CAFARO: Yeah, they'll give them a hard time with the union ...
104
In 1998, various Genovese crime family members, and WCNYH
registrants, were indicted in the District of New Jersey on charges of
racketeering, illegal gambling, and loan sharking. 0 5 The indictment
alleged that Joseph Queli, a maintenance foreman and alleged "made
member" of the Genovese crime family, ran a crew responsible for
loansharking and gambling activities on the Waterfront. 106 Members of the
crew included Ronald "Quack" Quacquarini (warehouseman and shop
steward), Anthony Napolitano, (warehouseman and assistant shop
steward), Anthony "Skins" Stoia, Raymond "Ronni" Cardosa (assistant
clinic administrator at the ILA Medical Clinic in Newark, New Jersey),
Louis Raimo, Stephen DePiro, and Manny Rodriguez. 107 DePiro and
Rodriguez were previously revoked by the Commission: DePiro in 1996
for engaging in a gambling conspiracy and promoting gambling and
Rodriquez in 1993 for aggravated assault and promoting gambling.' 08
Queli and DePiro were convicted of racketeering.109 Stoia and Cardosa
were convicted of illegal gambling."10
author).
104.
Id
105.
See Tom Baldwin, Latest Commission Mob Investigations Lead to Indictments, J.
OF COM. (1998), at 2B.
106.
Baldwin, supra note 105.
107.
Press Release, Waterfront Comm'n of N.Y. Harbor, Three Waterfront Workers
Suspended (Apr. 22, 1998); see Baldwin, supra note 105.
108.
Baldwin, supra note 105.
109.
Id.
110.
Id.
CRIMINAL AND CIVIL CONFINEMENT
270
2.
[Vol. 38:257
2000s
In 2000, two former Presidents of Local 1588, John "John John"
Angelone and Eugene G'Sell pled guilty to conspiracy to embezzle from
the Union."'1 Office Manager Denise Bohn, former Local 1588 Business
Agent William Hurley, former Local 1588 Vice President Joseph Pelliccia,
and former union environmental officer Thomas Rackley were convicted of
embezzlement and conspiracy. 112 One year later Joseph Lore, a hiring
agent and Genovese soldier who controlled ILA Local 1588 in the 1990s
was convicted of embezzling $750,000 from union workers." 3 During
Lore's reign, he collected one-half of all officers' and s ecific union
The Gotti
employees' salaries in a "salary diversion scheme.""
convictions in United States v. Gotti included Peter Gotti, acting boss of the
Gambino crime family and ILA officials Anthony "Sonny" Ciccone and
Frank "Red" Scollo. 5 The Bellomo convictions included Genovese acting
bosses Liborio Bellomo, Ernest Muscarella, and Andrew Gigante, the
owner of several waterfront businesses.11 6 In 2003, Bellomo, Muscarella,
and Gigante entered into consent decrees barring them from waterfront
businesses and from any involvement with the ILA or its benefit funds." 7
In 2002, current and former officials of Local 1588 were charged with
racketeering, extortion, bribery, and conspiracy by the State of New
Jersey." 8 All were reputed associates of the Genovese crime family.119
Among those charged were Nicholas Furina (hiring agent for Ports
America), Ralph Esposito (shop steward for Local 1588 at Global
Terminal), Anthony D'Errico (field boss for Local 1588 at Global
Terminal), Aniello "Sonny" Bello (hiring agent at Global Terminal), John
Timpanaro (president of Local 1588), Carlo Bilancione (former field boss
for Local 1588 at Global Terminal), and Nicholas Romano (former shop
steward for Local 1588 at Global Terminal and Nicholas Furina's son-in-
111.
See McShane, supra note 69.
112.
Five Guilty in ILA Skimming Case, J. OF COM. (Dec. 19, 2001).
113.
McShane, supra note 69.
114.
Five Guilty in ILA Skimming Case, supra note 112.
115.
See Joseph Bonney, Feds target the ILA, J. OF COM. (Oct. 18, 2004), at 32; Press
Release, Dep't of Justice, U.S. Files Racketeering Case Against the ILA and Top ILA
Officials (July 6, 2005).
116.
Bonney, supra note 115.
117.
Sherman, supra note 86.
118.
Press Release, Waterfront Comm'n of N.Y. Harbor, Reputed Waterfront Faction
of the Genovese Crime Family & Dock Worker's Union Demand $$$, For Work-Seven
Arrested in Early Morning Roundup (Mar. 7, 2002), availableat http://www.wcnyh.org/
news/DCJTarget%20Mob-run%20shake-down%20on%20NJ%20docks.pdf.
119.
Id.
THE "WATCHDOG" AGENCY
2012]
271
law).120 Bilancione and Romano had their registration revoked by the
Commission after they pled guilty to conspiracy to steal an interstate
shipment of goods in connection with the theft of $2 million of imported
perfume from Global Terminals in 2000.121 In 2005, Bello, Esposito, and
Romano, pled guilty to commercial bribery.122 Furina, who was accused of
being the boss behind the mob-related shakedown scheme, pled guilty to
theft.123 Following these pleas and after decades of mob control, the federal
government finally imposed a trustee over Local 1588.124 In 2010,
Furina's son's and grandson's licenses were revoked by the WCNYH in
separate hearings for lacking the requisite good character and integrity to
be pier superintendents.1 25
In 2004, Louis Saccenti, former driver for Sammy "the Bull" Gravano,
turned ILA official and Gambino associate, pled not guilty to a perjury
charge after denying that he knew Primo Cassarino, a Gambino soldier, and
that he visited the Ravenite Social Club, a hangout frequented by former
Gambino boss John Gotti.126 Between 1981 and 1996, Saccenti met with
thirty-eight Gambino family members at the Ravenite and other mob
hangouts.1 27 In 1998, the Waterfront Commission revoked his license,12 8
but the union kept him on the payroll.12 9 Also in 2004, ILA officials Harold
Daggett, Arthur Coffey, and Albert Cernadas were charged with extortion
and fraud for a scheme aimed at steering union benefit contracts to
120.
Id.
121.
Michael Nelson, Two New Jersey Bosses Plead Guilty to $2 Million Perfume
Heist, NATIONAL LEGAL & POLICY CENTER (Sept. 25, 2010), http://nlpc.org/stories/2000/09/
25/two-new-jersey-bosses-plead-guilty-2-million-perfume-heist.
122.
Ronald Leir, "Dirty Docker" License Targeted, JERSEY J., Apr. 29, 2005,
availableat www.wcnyh.org/news.Dirty-Docker-lincense-targeted.pdf.
123.
Joe Malinconico, Something is Missing in the Union Vote: The Mob, N.J. STARLEDGER, Apr. 8, 2007; Ronald Smothers, US. Wants Overseerfor Dock Workers' Local,
N.Y. TIMEs (Dec. 11, 2002), http://www.nytimes.com/2002/12/11/nyregion/us-wantsoverseer-for-dock-workers-local.html.
124.
McShane, supra note 69.
125.
Press Release, Waterfront Comm'n of N.Y. Harbor, Pier Superintendent's License
is Revoked for Dishonesty During Waterfront Comm'n Interview and Hearing (May 17,
2010), http://www.wcnyh.org/newspage34.html; see also Press Release, Waterfront
Comm'n of N.Y. Harbor, Pier Superintendent Permit Revoked for Violation of the
Waterfront Comm'n Act (July 19, 2010), http://www.wenyh.org/newspage37.html.
126.
Jerry Capeci, Tony L, Mob Royalty, N.Y. SuN, July 15, 2004, at 3.
127.
Douglas Feiden, The Fat Cats on the Waterfront: How Bosses Load Up on Pay
Despite Their Ever-Shrinking Union, N.Y. DAILY NEWS (Jan. 4, 2004),
http://articles.nydailynews.com/2004-01-04/news/1 8264235_lila-nonunion-competitionjohn-bowers.
128.
129.
Id.
Id
CRIMINAL AND CIVIL CONFINEMENT
272
[Vol. 38:257
companies that paid kickbacks to the mob from 1997 to 2004.130 Genovese
crime family captain and former business agent of ILA Local 1235,
Lawrence Ricci, was also charged.131 George Barone, then in his eighties
and a government witness, testified against them at trial, indicating that the
mob put Daggett in power.132 Ultimately, Cernadas pled guilty to fraud.133
Daggett, Coffey, and Ricci were acquitted on all charges. 134 Ricci went
missing during the trial and was later found dead in the trunk of a car.135
Daggett went on to become the President of the ILA.136
In 2005, a federal civil RICO suit was filed against the ILA calling for
the removal of corrupt officers and for federal monitoring over the entire
union. 137 A press release by the Eastern District of New York indicated that
the charges against the ILA were "based on decades of evidence relating to
corruption and organized crime influence within the union and businesses"
operating on the Waterfront.1 38 The case is still pending.139
In 2009, Michael "Mikey Cigars" Coppola, a Genovese crime family
captain, was convicted on federal racketeering charges that included
conspiracy to extort money from ILA Local 1235 and its members.1 40 He
was sentenced to sixteen years in prison, but not before he could wish the
judge and his family a "Merry Christmas."1 4 1 Included in the evidence
130.
Press Release, Waterfront Comm'n of N.Y. Harbor, U.S. Files Racketeering Case
Against Int'l Longshoremen's Ass'n and Top ILA Officials (July 6, 2005),
http://www.justice.gov/usao/nye/pr/2005/2005jul6.html.
131.
See John Marzulli, Probationfor Ex Docks Big, N.Y. DAILY NEWS (Feb. 23,
2006), http://articles.nydailynews.com/2006-02-23/local/18322641_1_lawrence-ricci-mobinfluence-genovese.
132.
Sherman, supra note 86; Bonney, supra note 115.
133.
William Rashbaum, Three Longshoremen Not Guilty ofFraudand Other
Charges, N.Y. TIMES (Nov. 9, 2005), http://query.nytimes.com/gst/fullpage.html?res=9C00
E2D8153EF93AA35752C IA9639C8B63.
134.
Id.
135.
William K. Rashbaum, Body Found in Car is Said to be Mob Figure's, N.Y.
TIMES (Dec. 1, 2005), http://query.nytimes.com/gst/fullpage.html?res=9BO7EFDC 153 1F932
35751CIA9639C8B63.
136.
Harold Daggett Elected International President at ILA 53rd Quadrennial
Convention, ILAUNION.ORG (July 29, 2011), www.ilaunion.org/newselection20 11
announcement.html.
137.
See Tiffany Ten Eyck, Racketeering Lawsuit Againt ILA Leaders Must Give
Members Control, LABOR NOTES (June 30, 2005), http://labornotes.org/node/796.
138.
Press Release, supra note 130.
139.
Id.
140.
Kati Cornell, "Mikey Cigars" Convicted of Racketeering, Cleared of Murder,
N.Y. PosT (July 21, 2009), http://www.nypost.com/news/regional/brooklyn/item-TfliPo7hy
sFzueOxzcvl6TK.
141.
John Marzulli, Judge Slaps Michael "Mikey Cigars" Coppola with 16 Years in
THE "WA TCHDOG" AGENCY
2012]
273
presented at the Coppola trial, was an FBI intercept of a 2007 conversation
between the mobster and Edward Aulisi, then a checker on the Waterfront,
member of ILA Local 1, and son of Vincent Aulisi, former President of
ILA Local 1235, in which they discussed extorting union members.142 At
the time of the conversation, Coppola was a fugitive from justice, wanted
in connection with the 1977 murder of John "Johnny Cokes" Lardiere.1 43
Aulisi was expelled by the Ethical Practices Counsel of the ILA for failing
to answer questions associated with the conversation with Coppola and was
removed from the Waterfront for associating with a member of organized
crime. 144
3.
Recent developments
On March 16, 2010, Roy Maglori, a registered maintenance man, was
removed by the Waterfront Commission for his association with organized
crime.14 5 In a conversation between Maglori and Angelo "the Horn" Prisco,
a captain in the Genovese crime family, Maglori complained about his
position. 146 Prisco directed Maglori to see "Nicky" or his son, "Anthon'
because they "know you're my friend" and "they'll take care of you."
Prisco was sentenced to life in prison after being found guilty of
racketeering, murder, and other charges.148 Also, in 2010, hiring agent John
Santore's license was withdrawn by the stevedore company he worked for
after he and the company were served with a notice of hearing alleging that
he associated with Joseph "Joey the Bull" Bilotti, a known soldier in the
Gambino crime family.149
In April 2010, a joint investigation by the New Jersey Department of
Criminal Justice and the WCNYH led to the arrest of Genovese crime
PrisonRacketeering, N.Y. DAILY NEWS (Dec. 19, 2009), http://articles.nydailynews.com/
2009-12-19/news/i 7943070_1_merry-christmas-racketeering-sentence.
Jerry Capeci, Encoded Lips Sink "Mikey Cigars," N.Y. SUN (May 24, 2007),
142.
http://www.nysun.com.new-york/encoded-lips-sink-mikey-cigars/55136/.
143.
Id.
Press Release, Waterfront Comm'n of N.Y. Harbor, Checker Removed from
144.
Waterfront
for
Association
with
Organized
Crime
(Nov.
18,
2009),
http://www.wcnyh.org/newspage27.html.
Press Release, Waterfront Comm'n of New York Harbor, Maintenance Man
145.
Removed from Waterfront for Association with a Member of Organized Crime (Mar. 16,
2010), http://www.wcnyh.org/newspage40.html.
146.
Id.
147.
Id.
148.
Id.
Press Release, Waterfront Comm'n of N.Y. Harbor, Hiring Agent Charged with
149.
Associating with Member of Organized Crime is Removed from Waterfront (Apr. 7, 2010),
http://www.wcnyh.org/news/newspage30.pdf.
274
CRIMINAL AND CIVIL CONFINEMENT
[Vol. 38:257
family soldier, Joseph Queli and others. 150 The investigations were referred
to as "Operation Terminal" and involved allegations that "ILA members
working at the shipping terminals are required to make a cash 'tribute'
payment at Christmas time each year [to members of organized crime] out
of year-end bonuses [] called 'container royalty checks."'is5 On October
28, 2011, Queli led guilty to loansharking, money laundering, and filing
false tax returns.' 52 In pleading guilty, Queli stated he made loans to ILA
members at usurious interest rates, ranging from 78 to 156% per year.153
Queli was sentenced to five years in state prison.154
In connection with the same case, checker Nicholas Bergamotto, who
was temporarily suspended by the Waterfront Commission pending a
hearing based on those charges, 155 was sentenced to a term of probation for
money laundering.1 56 Queli, or Bergamotto acting on his behalf, would
demand weekly payments from the union members of 1.5-3% interest on
the loan amount.15 - ILA official Nunzio LaGrasso, Newark police officer
Alan Marfia, and Rocco Ferrandino, a timekeeper on the Waterfront, were
also chared.' 5 8 The investigation into these three individuals is still
ongoing.
On January 20, 2011, 127 members and associates of various crime
families of La Cosa Nostra were charged with racketeering and related
crimes and at least 110 were arrested.160 Both United States v. Cicalese and
150.
Hester, supra note 71.
151.
Id.
152.
Press Release, Waterfront Comm'n of N.Y. Harbor, Genovese Soldier and
Checker
Pled
Guilty
in
Port
Loansharking
Case
(Oct.
28,
2011),
http://www.waterfrontcommission.org/newspage67.html.
153.
Id.
154. Tom Hester, Sr., Joseph Quali of Wall Gets Five Years in Prisonfor Waterfront
Loansharking, NEWJERSEYNEWSROOM.COM (Feb. 10, 2011), http://www.newjerseynews
room.com/state/joseph-quali-of-wall-gets-5-years-in-prison-for-waterfront-loansharking.
155.
Press Release, N.J. Att'y General's Office, Top Union Official and Two Other
Men Indicted in Investigation into Alleged Scheme to Extort Money from Dock Workers
(Feb. 8, 2011), http://www.nj.gov/oag/newsreleases11/pr20110208a.html.
156.
Hester, supra note 71.
157.
Id.
158.
Id.
159.
Tom Hester, Sr., ILA Union Official, Newark Cop and Third Man Indicted in
Alleged Scheme to Extort Longshoremen, NEWJERSEYNEWSROOM.COM (Feb. 8, 2011),
http://www.newjerseynewsroom.com/state/ila-union-official-newark-cop-and-third-manindicted-in-alleged-scheme-to-extort-longshormen.
160.
Press Release, Dep't of Justice-Office of Pub. Affairs-AG, 91 Leaders, Members
and Associates of La Cosa Nostra Families in Four Districts Charged with Racketeering and
Related Crimes, Including Murder and Extortion (Jan. 20, 2011), http://www.wcnyh.org/
news/JusticeGov 01-20-2011 PressRelease.pdf.
THE "WATCHDOG" AGENCY
2012]
275
United States v. DePiro had large impacts on the Waterfront. 161 The
Cicalese indictment charged three members of the ILA with committing
perjury during testimony before a federal grand jury investigation of
organized crime's infiltration of the waterfront and the ILA.162 The DePiro
indictment charged fifteen individuals, including the current and two
former ILA Local 1235 presidents with various racketeering related crimes,
such as extortion of members of the ILA each year at Christmas time when
the longshoremen received a portion of royalty payments paid by shipping
companies. 163 Aulisi, who was previously removed from the Waterfront
and expelled from the union, was also charged in this indictment. 164 On the
date of the arrests, U.S. Attorney Paul J. Fishman stated:
[O]rganized crime still has a grip on the New Jersey waterfront.
Workers should be free to pursue an honest living without being
worried that their own union representatives will shake them down. Our
ports and those who work there play vital roles in our region's economy
and security. Paying tribute to the mob is not an acceptable cost of
doing business in New Jersey.1 65
These investigations are ongoing. 166
On September 15, 2011, Greg "Ronnie" Taylor, a former ILA official,
was arrested and charged with embezzlement for allegedly stealing more
than $100,000 in union funds for personal use from 2005 to 2010.167 This
investigation is also ongoing. 6 8
IV. THE WCNYH's
TOOLS TO FIGHT ORGANIZED CRIME
In addition to conducting investigations in cooperation with federal and
local police agencies, the Waterfront Commission also has various internal
mechanisms to fight organized crime.
161.
See id.
162.
Id.
163.
Id.
164.
Indictment at 1, United States v. Depiro, et al, 10 Cr. 851 (D. N.J. filed Jan. 01,
2011), availableat, http://www.justice.gov/opa/documents/1-20-2011 -depiro.pdf.
165.
Press Release, The U.S. Attorney's Office: Dist. of N.J., Genovese Organized
Crime Family Soldier and Associates Indicted on Racketeering Charges, Including
Extortion of Int'l Longshoremen's Ass'n Members (Jan. 20, 2011), http://www.justice.gov/
usao/nj/Press/files/Depiro%20et.%20al.%2ONews%20Release.html.
166.
See id. The charges contained in the indictment are merely accusations, and the
defendants are presumed innocent until proven guilty. See id.
167.
Press Release, Waterfront Comm'n of N.Y. Harbor, Former Int'l Longshoremen's
Union Officer
Arrested, Charged with Embezzlement
(Sept.
15, 2011),
http://www.wcnyh.org/newspage63.html.
168.
See id.
276
CRIMINAL AND CIVIL CONFINEMENT
A.
[Vol. 38:257
The Controlled Register Statute
The Mafia exploited the labor imbalance on the Waterfront. 169 Only
union members who supported the corrupt union leaders and agreed to
kick-back a portion of their wages were guaranteed a spot on one of the
gangs.170 In order to facilitate the Commission's power to ensure fair hiring
and employment practices, in 1966, New York and New Jersey enacted the
controlled register statute or section 5-p of the Waterfront Commission
Act. 171 This provision empowered the Waterfront Commission to open and
close the "Deep-Sea" Longshoreman Register as dictated by labor needs. 172
The Waterfront Commission successfully serves as a buffer between the
employers and the organized workforce, seeking to ensure that the workers
are protected against unfair hiring and employment practices, specifically
preventing a surplus of labor. 173
For more than forty years, the Waterfront Commission has exercised its
power responsibly." The Waterfront Commission closed the register in
1966, shortly after the enactment of section 5-p due to containerization,
which drastically reduced the need for labor. 175 For the next thirty years,
with the aid of section 5-p, the Waterfront Commission carefully stabilized
the labor-to-job ratio to avoid imbalance. 176 By 1998, there was an
increased demand for labor as a result of increased business in the port,
work-rule changes in the Collective Bargaining Agreement, and attrition of
the workforce. 7 7 The Waterfront Commission responded by holding public
hearings to determine the best way to meet the needs of the industry,
workers, and the port without revisiting the problems that previously
plagued the Waterfront. 78 As a result, in 1999, section 5-p was amended to
allow the industry to petition the Waterfront Commission for additional
"Deep-Sea" longshoremen and established specific criteria that the
Waterfront Commission is mandated to examine before allowing or
denying additional labor. 17 9
Letter from Walter Arsenault, Exec. Dir., Waterfront Comm'n of N.Y. Harbor, to
169.
Michael H. Ranzenhofer, Senator, 61st Senate Dist. (May 13, 2012) (on file with author).
170.
Id.
171.
172.
173.
174.
175.
176.
177.
178.
179.
Id.
Id
Id.
Id
Id.
Id.
Id.
Id
Id.
THE "WATCHDOG" AGENCY
2012]
277
B. Prohibition Against Union Officials with Felony Convictions
In 2009, the Waterfront Commission removed John Shade from his
position as General Vice President of the Atlantic Coast District (ACD) and
prevented him from holding any ACD office in the future under section 8
of Part III of the Act.SU Shade sustained at least five disqualifying
convictions, several of which were for conducting illegal gambling
businesses and illegal lotteries.' 8 1 One of his federal felony convictions
was for conspiracy, in a case where the underlying charges involved
Shade challenged his removal by the Waterfront
racketeering.
Commission in an Article 78 proceeding. 8 3 However, the court agreed
with the Commission's contention that officials in the ILA and the ACD
hold positions that have substantial power to affect labor relations on the
New York-New Jersey waterfront and rejected Shade's claim that an ACD
vice president for an area such as Baltimore is beyond the Commission's
jurisdiction. 184 Despite these victories, Shade was reinstated by the ILA
after he obtained a Certificate of Good Conduct from the New York State
Division of Parole.18 5 No one at the WCNYH was consulted by the
Division of Parole prior to issuing the Certificate.186
C.
Public Hearings
Between October 14, 2010 and December 2, 2010, the Waterfront
Commission held public hearings concerning conditions within the Port of
New York and the dual question of work and pay.18 7 These hearings
examined and evaluated allegations of widespread no show and no work
jobs, favoritism, abuse of the collective bargaining agreement, unfair hiring
practices, racketeering attacks on the industry, and the impact it has on the
competitiveness of the Port.18 8
180. Press Release, Waterfront Comm'n of N.Y. Harbor, Court Rules Removal of ILA
Atlantic Coast District VP John Shade Was Proper (Oct. 29, 2009),
http://www.waterfrontcommission.org/newspage25.html.
181. Id.
182.
183.
Id.
Id.
184.
Id.
185.
John Shade, Oct. 19, 2011, from Eric Fields, Senior Counsel of the WCNYH to
Francis Herman, Director at New York State Division of Parole, at 1.
186. Id.
187.
Steve Strunsky, New Jersey Waterfront Commission Holds FirstHearing on Mob
Influence at Docks, N.J. STAR-LEDGER (Oct. 15, 2010), http://www.nj.com/news/index.ssf/
2010/10/ nj holds first hearingon_fate.html.
188. Id.
278
CRIMINAL AND CIVIL CONFINEMENT
[Vol. 38:257
Edward Aulisi's case was highlighted at the hearing.189 Surveillance
photos showed Aulisi barbequing and mowing his lawn at home while he
was signed-in and being paid as a checker on the Waterfront.190 Between
2007 and 2010, he supposedly earned about $100,000 annually.191 His
intercepted conversation in 2007 with Michael "Mikey Cigars" Coppola
was played for an audience; it explained how Aulisi's organized crime
connections helped him get a better job on the docks.192 Aulisi refused to
answer questions, systematically asserting his privilege against selfincrimination.1 93 A representative from the stevedore company who
employed Aulisi testified that as a relief checker, Aulisi "is paid whether or
not he is providing relief1 94 and is not required to be on-site even during the
[shift] he is assigned." 95 These hearings demonstrated that organized
crime continues to negatively influence the Waterfront.196
V. CONCLUSION
The infiltration of the mob into the unions that unite the dock workers on
the Waterfront is not a myth at all, but rather the reality of the state of
affairs on the Waterfront. The WCNYH is a watchdog agency that has been
fighting organized crime on the Waterfront since the 1950s. Recent public
hearings held by the WCNYH exposed the current status of the corruption
and the Public Hearing Report from March 21, 2012 suggests various ways
to improve the conditions on the Waterfront, some of which would expand
the Commission's powers.1 97 After a massive takedown of organized crime
members and associates on January 20, 2011, FBI Director Robert S.
Mueller, III stated, "Some people believe organized crime is a thing of the
past; unfortunately, there are still people who extort, intimidate, and
189.
Id.
190.
Id.
Richard Perez-Pena, In Waterfront Hearings, Accounts of a Union's Kickbacks
191.
anda Mafia Tie, N.Y. TIMES (Oct. 14, 2010), http://www.nytimes.com/2010/10/15/nyregion
/15waterfront.html.
Strunsky, supra note 187.
192.
193.
Id.
Strunsky, supra note 187. A relief checker provides relief or a break to checkers
194.
that have been working for a long time. See Collective BargainingAgreement between New
York Shipping Association, Inc. and International Longshoremen's Association, AFL-CIO,
N.Y. SHIPPING Ass'N INC. at 37 (Oct. 1, 2004), http://www.nysanet.org/pdf/CBA.pdf (last
visited Apr. 15, 2012).
195.
Strunsky, supra note 187.
Waterfront Commission's Special Report on Public Hearings, WATERFRONT
196.
COMM'N, Mar. 21, 2012, availableat http://www.waterfrontcommission.org/news/Water
front%20Commission%2Oof/o20New%2OYork%20Harbor/20Special%20Report.pdf
197.
Id.
2012]
THE "WATCHDOG"AGENCY
279
victimize innocent Americans." 9 8 The Commission's continued existence
and success, especially in recent years after various reforms,1 99 is a beacon
of hope in an industry that has been battling corruption for decades. As it
continues to fulfill its mission, let there be no doubt that the Waterfront
Commission has a purpose.
198.
Press Release, Dep't of Justice-Office of Pub. Affairs-AG, 91 Leaders, Members
and Associates of La Cosa Nostra Families in Four Districts Charged with Racketeering and
Related
Crimes,
Including
Murder
and
Extortion
(Jan.
20,
2011),
http://www.wcnyh.org/news/JusticeGov_01-20-2011_Press Release.pdf.
199.
In July 2008, the Commission underwent various reforms, reorganization, and
rededicated itself to its mission. See Press Release, N.Y. State Inspector Gen., Waterfront
Comm'n
Plagued
By
Abuse
and
Corruption
(Aug.
11,
2009),
http://www.ig.ny.gov/pdfs/Waterfront%20Commission%20Plagued%2OBy%20Abuse%20a
nd%20Corruption.pdf; see also Press Release, Waterfront Comm'n of N.Y. Harbor,
WCNYH
Response
to
NYS
IG
[Draft]
Report
(July
13,
2009),
http://www.wcnyh.org/news/WCNYH_1GResponse_7-31-2009.pdf.