A word about direct quotations: All dialogue is taken from a primary source—a party to the relevant conversation—or a court transcript. In fact, the latter proved to be critical to my reporting efforts with this book. Phillip Kitzer died in 2001 at the age of 68, but his testimony as a government witness and expert witness in more than a half dozen trials was transcribed and is now preserved in various National Archive branches. In researching this book I traveled to Chicago, Atlanta, Kansas City, San Francisco, and Orange County, California, where I gathered more than six thousand pages of court records and transcribed testimony. Kitzer’s testimony in particular provides a powerful glimpse into his storytelling style; on the witness stand he furnished details and anecdotes only he could recount. He often told stories using detailed dialogue, to the point that defense lawyers questioned whether he had a photographic memory or was planning to write a book. (He answered no to both.) Direct quotations from others also come from transcripts, as noted below.
The material in this section, as with much of the book, is built around interviews with James Wedick and Jack Brennan and their testimony in numerous federal trials that resulted from Operation Fountain Pen. Quotes from them are from these resources unless otherwise noted.
five and a half inches: A detailed description of the Nagra recorder can be found on the Cryptomuseum website: http://www.cryptomuseum.com/covert/rec/nagra/sn/.
“Cocktail fantasies”: For photos and descriptions, see the blog Dutch Girl Chronicle: http://www.dutchgirlchronicle.com/?p=2135. Also see “A Final Farewell to Bloomington’s Iconic Thunderbird Motel,” Minneapolis Star Tribune, May 10, 2016.
This chapter is drawn entirely from testimony given in United States v. Paul E. Chovanec, Docket No. HCR 77-93, which took place in federal court in Hammond, Indiana, in June 1978. The relevant testimony came from Phillip Kitzer and Kenneth Guilbert.
Most of the Jack Brennan biographical material came from interviews with Jack and his wife, Becky. I also drew Brennan family history from articles by Erwin P. Hair in Grapevine, the publication of the Society of Former Special Agents of the FBI. His story “Four Generations of Brennan Family Served as Special Agents of FBI” appeared in the March 1981 issue, followed by “Jack Brennan Represented Second Generation of Family in the FBI” in the April 1981 edition.
Howard resigned in 1960: “The Ultimate Con,” Knight-Ridder Newspapers (Ellensburg Daily Record), August 7, 1981.
systematically fleece them of cash: See Chicago Tribune articles “Ex-Insurance Aide Indicted for Thefts from 2 Companies,” October 20, 1971, and Neil Mehler, “Firm’s Heads Told: Pay Policyholders,” February 2, 1974.
“history of fraud and flimflam”: Selwyn Raab, “FBI Is Duped by Own Ruse; U.S. Faces Suits,” New York Times, May 18, 1979. For more on Howard’s shenanigans after the episode described in this book, see “FBI’s Link to Scam Suspect Fuels Debate on Informants,” by Douglas Frantz and Maurice Possley, in the Chicago Tribune, September 23, 1984.
“This is the perfect vehicle”: Norman Howard’s testimony in U.S. v. Chovanec.
writing illegal bail bonds: Gary Galloway, “Gary Pair Charged with Writing False Bail Bonds,” Post-Tribune (Gary, Indiana), March 14, 1975.
Bobby and Susanna Duckworth: From an interview with Allen Ezell; the indictment and court filings in United States v. Paul E. Chovanec Jr., et al., Docket No. 78-0583, Charlotte, North Carolina; and Robert Hodierne’s “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
The agent approached Kitzer: From Chovanec’s statement, dated July 7, 1978, filed in United States v. Frank Oliver, Docket No. 78-59, Charlotte, North Carolina.
Wedick provided the noted memo from Orville Watts dated May 12, 1976, regarding his desire to work undercover. Wedick was also the subject of two lengthy Los Angeles Times stories: “The Agent Who Might Have Saved Hamid Hayat,” by Mark Arax, May 28, 2006, and “The G-man, the Shrimp Scam, and Sacramento’s Big Sting,” by Mark Gladstone and Paul Jacobs, December 11, 1994. A tape of the October 21 meeting between Kitzer and Norman Howard was played for the jury in U.S. v. Chovanec, and was transcribed into the record.
The bulk of this material comes from transcripts of the Hammond trial, U.S. v. Chovanec. A tape of the Holiday Inn meeting with Kitzer, Chovanec, Howard, and undercover FBI agent Dean Naum was played for the jury and transcribed into the record, as was a tape of the subsequent phone call between Naum and Kitzer. The rest of the material comes from the testimony of Kitzer, Howard, Naum, Wedick, and Dan King and Steven Watts of St. Joseph Bank.
This chapter was based on interviews with Wedick and Brennan. Kitzer also testified on multiple occasions about the circumstances under which he met the two agents.
Much of the material in this chapter comes from testimony in United States v. Andrew D’Amato, Armand Mucci, and Robert Bendis, Docket No. 78-20070-01, which took place in federal court in Kansas City in December 1978. Kitzer, Mucci, Bendis, Pro, Brennan, and Wedick all took the witness stand.
Kitzer had met them: Kitzer’s testimony details their shared history and the proposed Shaker House scam.
a 160-room edifice: See a description of the Shaker House at the Cleveland Memory Project, run by the Michael Schwartz Library at Cleveland State University: http://images.ulib.csuohio.edu/cdm/singleitem/collection/postcards/id/2034/rec/20.
“a little warm”: Kitzer testimony in U.S. v. D’Amato, Mucci, and Bendis.
“It’s a pretty shocking”: Ibid.
“hit the sheet”: Kitzer’s expert testimony in United States v. Peter Martell, aka Peter Raia, Docket No. 81-129, a trial that took place in federal court in Philadelphia in July 1981. Martell was convicted of conspiracy to pledge stolen bonds for a loan, among other charges.
a “dumb Dago” from: Prosecution memo from Assistant U.S. Attorney Richard A. Hanning to U.S. Attorney David T. Ready, Northern District of Indiana, November 16, 1977.
The Kealoha case was the subject of extensive testimony in the aforementioned Kansas City trial and in United States v. Mark Iuteri, Docket No. 80-1491, which took place in Honolulu in May 1980. Testimony on the latter trial came from Kitzer, Kealoha, Iuteri, Brennan, and Wedick, among others.
his capstone project: Walter Wright, “FBI Out-Cons Worldwide Con Man,” Honolulu Advertiser, January 5, 1980.
With the market sagging: Walter Wright, “Con Man Tells Court Kealoha’s Attorney, Builder ‘In on Scam,’ ” Honolulu Advertiser, May 8, 1980.
Fireside Thrift, which had: Walter Wright, “ ‘Phony Bank’ Reportedly Used in Earlier Con Job on Kealoha,” Honolulu Advertiser, January 7, 1980.
Yee was connected: Kitzer and Kealoha testimony in U.S. v. Iuteri.
“What are you gonna do”: Walter Wright, “King of Scam Royally Conned Pigeons Until FBI Caged Him,” Honolulu Advertiser, May 9, 1980.
a takeout commitment: An excellent overview can be found in the decision in the Iuteri case by the U.S. Court of Appeals for the Ninth Circuit dated March 9, 1981, Docket No. 80-1491.
Liechtenstein-based trust: The trust was discussed at length in the Hawaii trial (U.S. v. Iuteri). Also see Theodore A. Driscoll and Tom Condon, “State Financier, Under Probe, Key Figure in $30 Million Deal,” Hartford Courant, December 12, 1976. For more on the Fontainebleau’s purported sale, see “Famed Hotel Sold in Miami,” an Associated Press story that ran in the Naples Daily News on November 9, 1976.
would “stand up”: Kitzer testimony in U.S. v. Iuteri.
“We do not question”: Final Report of the Select Committee to Study Undercover Activities of Components of the Department of Justice, December 15, 1982, p. 34. Available on the website of the National Criminal Justice Reference Service: https:www.ncjrs.gov/pdffiles1/Digitization/124269NCJRS.pdf.
“to secure a foothold”: Ibid., p. 35.
Hoover nixed undercover work: Tim Weiner, Enemies: A History of the FBI (New York: Random House, 2012), p. 212.
“turning agents into investigators”: James Q. Wilson, The Investigators: Managing FBI and Narcotics Agents (New York: Basic Books, 1978), p. 171.
“the dress code of the agents”: Ibid., p. 35.
“shit cases with which”: Ibid., p. 97.
organized crime, foreign counterintelligence, and white-collar crime: From the FBI’s online history; see “Aftermath of Watergate: 1970s.” Available at https://www2.fbi.gov/libref/historic/history/watergate.htm.
“quality over quantity” policy: Final Report of the Select Committee to Study Undercover Activities, p. 39.
“are far less valuable”: Ibid., p. 41.
with 516 resident offices: Wilson, Investigators, p. 91.
“When the cash value”: Jonathan Kwitny, The Fountain Pen Conspiracy (New York: Alfred A. Knopf, 1973), p. 5.
The superswindlers collectively: Ibid., p. 4.
“Wait,” D’Amato said: Kitzer testimony in U.S. v. Iuteri covers this entire passage.
“you use that with the victim”: From Kitzer’s expert testimony in United States v. Sidney Gerhardt and Joseph Adornato, in Mobile, Alabama, Docket No. 82-CR-8.
Beyond the FBI agents’ recollections, I relied in this chapter on the Hawaii and Kansas City testimony (U.S. v. Iuteri and U.S. v. D’Amato, Mucci, and Bendis) and the thorough reporting of Walter Wright of the Honolulu Advertiser. His story of May 10, 1980, under the headline “Fleecing a ‘Mark’ in Hawaii No Beeg Ting,” provided the material for the mock-trial scene.
The Hartford Courant covered the exploits of Connecticut native Andrew D’Amato extensively and aggressively, as evidenced by the citations below.
snowed in Miami Beach: Bruce J. Schulman, The Seventies: The Great Shift in American Culture, Society, and Politics (New York: Free Press, 2001), p. 121.
Associated Press even published: “Famed Hotel Sold in Miami,” Associated Press (Naples Daily News), November 9, 1976.
Hartford Courant followed up: Theodore A. Driscoll and Tom Condon, “State Financier, Under Probe, Key Figure in $30 Million Deal,” Hartford Courant, December 12, 1976.
“not involved anymore”: Theodore A. Driscoll and Tom Condon, “Hotelier Says Publicity Cost D’Amato Top Job,” Hartford Courant, December 15, 1976.
“The performance bond and such-type”: Kitzer provided this explanation as an expert witness in 1982, in U.S. v. Gerhardt and Adornato.
scale and grandeur: See Tom Austin’s “Fontainebleau Hotel’s Extreme Makeover” in Travel + Leisure: http://www.travelandleisure.com/articles/fontainebleau-hotels-extreme-makeover.
“as father confessor”: Mark Gladstone and Paul Jacobs, “The G-man, the Shrimp Scam, and Sacramento’s Big Sting,” Los Angeles Times, December 11, 1994.
order by Scotland Yard: Affidavit regarding Packman given by Wedick and Brennan, signed September 1982.
The narrative of Kitzer’s early life was constructed from testimony, newspaper reports, and interviews with his ex-wife. Kitzer also testified extensively on his formative years and experiences. For example, see testimony in his aforementioned appearances as an expert witness.
historic Graycliff Hotel: To learn about its history, check out http://www.graycliff.com/graycliff-history/.
people called him Junior: Kitzer testimony in United States v. John Kaye and John Calandrella, Docket No. 78-5341, which took place in Louisville in 1978.
He was only seven: Finlay Lewis, “Insurance Firm Woes Related by Young Kitzer,” Minneapolis Tribune, June 1, 1967.
One afternoon, a friend: Interview with Helen Racan.
“I bought the book”: “Kitzer Jr. Relates Insurance Start,” Associated Press (Bismarck Tribune), May 31, 1967.
door-to-door salesman: Kitzer’s expert testimony in U.S. v. Gerhardt and Adornato.
A bond agency he worked for: “Two Bondsmen Sue Gutknecht; Demand $125,000,” Chicago Daily Tribune, January 29, 1955.
“I’ve been telling”: Thomas Powers, “Phone Threat to Bondsman Is Disclosed,” Chicago Daily Tribune, April 12, 1959. Despite his disavowals, the elder Kitzer’s firm again came under scrutiny. See also Sandy Smith’s “Bail Bondsman Vows He Made No Kickbacks,” Chicago Daily Tribune, December 2, 1961.
demanded a $25,000 kickback: Kitzer recounted this episode on at least two occasions: once as an expert witness in U.S. v. Martell and again in the federal trial in Louisville (U.S. v. Kaye and Calandrella).
Mark Iuteri testified in his own defense in his trial in Hawaii, arguing that he had just been acting as Andy D’Amato’s unwitting assistant. As the Honolulu Advertiser wrote in a headline on May 14, 1980, with a tangible note of sarcasm: “Accused Con Man Iuteri Testifies That He Just ‘Carried the Luggage.’ ” The jury didn’t believe him. As for the Kitzer insurance adventures of the 1960s: The two Minneapolis newspapers, the Star and the Tribune, each wrote more than a hundred stories on the matter. I have listed only the ones that link directly to passages in this book.
“Listen, Jimmy,” he said: Kitzer’s Hawaii testimony in U.S. v. Iuteri.
“phony claims of connections”: Theodore A. Driscoll and Tom Condon, “State Financier, Under Probe, Key Figure in $30 Million Deal,” Hartford Courant, December 12, 1976.
chatted up a woman: Wedick provided most of the details of this (in interviews and in his testimony), and Kitzer confirmed it in his Hawaii testimony (U.S. v. Iuteri).
“button man for the Outfit”: Walter Wright, “Iuteri Called a Killer for Mafia,” Honolulu Advertiser, July 8, 1980.
In 1962, they took over: Paul Presbrey, “Kitzer Testifies for Self in Fraud Trial,” Minneapolis Star, June 1, 1967. Also see Finlay Lewis, “Insurance Firm Woes Related by Young Kitzer,” Minneapolis Tribune, June 1; and Presbrey’s “Kitzer Tells of Firm’s Rapid Rise at Expense of Other Companies” and “Kitzer Jr. Tells Tale of Sinking Into Debt” in the Star on June 2 and 3, respectively.
“dad bust it!”: Lester Velie, “Riddle of the Vanishing Insurance Companies,” Reader’s Digest, September 1966. This extensive article covers Head’s investigation.
In July, a policyholder: “Suit Charges Bell Insurers’ Fund Misuse,” Chicago Tribune, July 2, 1965.
Federal prosecutors targeted: Jim Parsons, “Magnusson Named with 16 Others in Fraud Indictment,” Minneapolis Tribune, October 30, 1965.
“A proper investigation of”: Gerry Nelson, “Atty. Gen. Mattson Says Magnusson Allowed Public to Be Damaged,” Associated Press (Winona Daily News), November 3, 1965.
The Kitzers were living: Ibid.
On November 10: “Magnusson, Others Plead Not Guilty,” Minneapolis Star, November 10, 1965.
But the following January: Louis Dombrowski, “State Sues Bell Casualty Chiefs; Charges Fraud,” Chicago Tribune, January 5, 1966.
Minnesota prosecutors charged Phil: Finlay Lewis, “Goff, Kitzer Jr., Firm Indicted in Political Contribution Case,” Minneapolis Tribune, October 28, 1966.
“Phony charges and”: “Humphrey Asserts Republicans Vilify Rolvaag and Mondale,” New York Times, October 24, 1966.
In June 1966, they sued: “Kitzer Files Suit Against Insurer Group,” Chicago Tribune, June 2, 1966.
filed a $3 million libel: “Suit Charges Libel, Seeks Nine Millions [sic],” Chicago Tribune, December 20, 1966.
“The marks in Hawaii”: This anecdote was recounted by several different witnesses in Hawaii, including Brennan and Wedick; see U.S. v. Iuteri.
“No, you have the words”: Ibid.
“Did you do your appraisal?”: Ibid. Multiple people testified to this interlude, most prominently Kitzer.
John Kaye was one: This was the subject of Kitzer’s first trial, which Bill Osinski of the Louisville Courier-Journal covered extensively. See “FBI Agent Describes His World Travels with Con Artist,” February 17, 1978.
“Yes, we have done business”: Kitzer described the concept of a reader bank multiple times, including in detail in his testimony in U.S. v. Gerhardt.
“What is your price?”: Kitzer’s testimony in Louisville (U.S. v. Kaye and Calandrella).
“Get lost,” he said: Described by multiple witnesses, including Kitzer and Brennan, in U.S. v. Iuteri.
This chapter is drawn from the testimony in Honolulu (U.S. v. Iuteri) of Kitzer, Brennan, Wedick, Iuteri, and Kealoha, plus subsequent interviews with the former FBI agents and Dan Bent, the government prosecutor who handled the case. Iuteri acknowledged during his testimony that he hid papers in his clothing while transporting them down to the pool.
Trying to embarrass Kitzer, the defense attorneys in Hawaii (U.S. v. Iuteri) brought up the incident involving the transvestite in Tokyo. Kitzer admitted to it but downplayed his intentions.
They lived in an old run-down farmhouse: Details of Kitzer’s personal life come from Nick Coleman, “Ellendale Wondered About Phil Kitzer,” Minneapolis Tribune, March 12, 1978.
“an air of excitement”: Steve Andrist, “Sensational Trial Kept Bismarck Astir,” Bismarck Tribune, May 16, 1979.
“This case involves bribery”: Paul Presbrey, “Blackmail Charged in Insurance Trial,” Minneapolis Star, March 21, 1967.
“personal checking account”: “ ‘Blackmailed,’ Magnusson Said of Letter,” Associated Press (Daily Journal, Fergus Falls, Minnesota), March 22, 1967.
Several young women: “Women Speak of Trips Paid for by Kitzer,” Associated Press (Winona Daily News), April 18, 1967.
Audrey Jensen said: “Woman Writes of Jacket Kitzer Bought,” UPI (Winona Daily News), April 26, 1967.
“great concept of social”: Finlay Lewis, “Foley Calls Magnusson Minnesota’s ‘Trojan Horse,’ ” Minneapolis Tribune, June 20, 1967.
“six North Dakota housewives”: Donald Janson, “Minnesota Insurance Trial Implicates Democratic Politicians,” New York Times, March 26, 1967.
lawyer for David Kroman: Finlay Lewis, “Mistrial Declared in Kroman Trial; Mental Test Set,” Minneapolis Tribune, March 28, 1967.
were collateral damage: The defense strategy is summarized well in Paul Presbrey’s “Plot to Get Kitzer Attributed to Lord,” Minneapolis Star, June 20, 1967.
the “Caped Crusader”: Robert Hodierne, “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
When Junior himself: His testimony went on for more than a week; start with Paul Presbrey, “Kitzer Testifies for Self in Fraud Trial,” Minneapolis Star, June 1, 1967.
Kitzer said Lord once: Paul Presbrey, “Kitzer Jr. Tells Tale of Sinking into Debt,” Minneapolis Star, June 3, 1967.
grew “very, very angry”: Drawn from multiple accounts. See Finlay Lewis, “Gift to DFL Is Explained by Kitzer Jr.,” Minneapolis Tribune, June 3, 1967.
“You won’t let me”: Paul Presbrey, “Kitzer Jr. Charges Truth Not Wanted,” Minneapolis Star, June 8, 1967; and Finlay Lewis, “Kitzer Jr. Claims State Insurance Division Defrauded Him,” Minneapolis Tribune, June 8, 1967.
“erupted into tears”: Finlay Lewis, “Joyous Tears Greet Verdict,” Minneapolis Tribune, June 24, 1967. After the verdict, the question lingered about how much criminal activity Kitzer had actually engaged in. In Louisville he testified (U.S. v. Kaye and Calandrella) that those kickbacks to the Chicago bank were the only illegal activity he participated in at the time. But at other points he conceded that the federal government had botched its case against him.
fined him $100: Jim Shoop, “Kitzer Jr. Fined $100 for Making Illegal Donation,” Minneapolis Star, July 18, 1967.
lawsuits and millions: Paul Presbrey, “Insurance Firm’s Assets Listed,” Minneapolis Star, March 13, 1969.
wrecked a rental car: “Kitzer Jr. Accused of Drunken Driving,” Minneapolis Tribune, April 27, 1967.
folks in the jury box: Paul Presbrey, “Allied Jurors Believed ‘Politics,’ Acquitted 4,” Minneapolis Star, June 24, 1967.
In those pioneering days: Joe Pistone with Richard Woodley, Donnie Brasco: My Undercover Life in the Mafia (New York: New American Library, 1987), p. 20.
Kitzer, Brennan, and Wedick testified extensively about the Frankfurt trip during the Louisville trial (U.S. v. Kaye and Calandrella).
“Did you ever find”: Kitzer’s testimony in Louisville (U.S. v. Kaye and Calandrella).
City of Los Angeles: For background, see two stories by William Farr in the Los Angeles Times: “Check Plot Suspect Seized,” November 14, 1975; and “L.A. Check Fugitive’s Border Incident Told,” January 22, 1975. Wedick and Brennan furnished the $300,000 figure.
A distinguished-looking: Among other instances, Brennan testified to Cornaz’s background in Louisville (U.S. v. Kaye and Calandrella).
sleek five-hundred-room Intercontinental: From a brochure of Intercontinental Frankfurt published during that era.
“two-for-one deal”: Brennan describes this in his Louisville testimony (U.S. v. Kaye and Calandrella).
“It killed us”: Bryan Burrough, Days of Rage: America’s Radical Underground, the FBI, and the Forgotten Age of Revolutionary Violence (New York: Penguin Press, 2015), p. 377.
“We can’t just leave”: Kitzer’s testimony in Hawaii (U.S. v. Iuteri).
“I knew what happened”: Kitzer’s expert testimony in U.S. v. Gerhardt and Adornato.
consultant for the United Nations: For background on this and other elements of Kitzer’s career, see his expert testimony in both U.S. v. Martell and U.S. v. Gerhardt and Adornato.
“I have the capability”: From Kitzer’s expert testimony in U.S. v. Gerhardt and Adornato.
“provide insulation from you”: Ibid.
“Have you talked to D’Amato?”: From a recorded phone call transcribed into the record during Kitzer’s testimony in Hawaii (U.S. v. Iuteri).
Fred Pro was one of the most colorful witnesses in any of the trials related to Operation Fountain Pen. Much of this chapter is built around his testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis) and in Memphis (United States v. Frederick P. Pro et al., Docket No. 77-20201). The trial involving the scam of Elvis Presley’s jet has garnered much attention over the years, for obvious reasons. For primary sources, see the trial transcript and materials in the FBI Vault (https://vault.fbi.gov), available by searching for “Elvis Presley.”
the Mayflower: David W. Dunlap, “An Old and Comfortable Face Is Leaving the Park’s Side,” New York Times, November 4, 2004.
“a good place to keep”: Ibid.
Pro claimed to have graduated: Much of Pro’s background is from p. 22 of an FBI report dated January 18, 1977, and posted online in the Elvis Presley section of the FBI Vault. Pro also discussed it in his Memphis trial testimony (U.S. v. Pro et al.).
called Parker West: Tom Huser, “Firm to Add Classic ’37 Cord to Their Line of Model A’s,” Miami Herald, June 11, 1973.
“I had a severe emotional”: Pro’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
Also, during a visit: Interview with Myron Fuller.
“basically my teacher”: Pro’s testimony in U.S. v. D’Amato, Mucci, and Bendis.
“Phil, we got it”: Kitzer’s testimony in U.S. v. Pro et al.
“I didn’t put one nut”: Pro’s testimony ibid. Also see “Dade Men Defrauded Elvis, Prosecutors Say,” Associated Press (Miami News), August 22, 1978. The Elvis connection to the case has triggered enduring fascination and not a few conspiracy theories. These are chronicled in, among many other places, Stephanie McKinnon’s “Dead or Maybe Alive, Elvis King of Rumors,” in USA Today, August 15, 1991.
room 1103A: FBI report dated May 21, 1977, the Elvis Presley section of the FBI Vault.
“You want me to answer”: Howard’s testimony in Hammond (U.S. v. Chovanec).
“playing this game of trying”: Joseph D. Pistone with Richard Woodley, Donnie Brasco: My Undercover Life in the Mafia (New York: New American Library, 1987), p. 48.
the omertà: For a riveting elaboration on this, see Selwyn Raab, Five Families: The Rise, Decline, and Resurgence of America’s Most Powerful Mafia Empires (New York: St. Martin’s Press, 2005), pp. 5–12.
“You can’t expect to collect”: Kitzer’s testimony in Louisville (U.S. v. Kaye and Calandrella).
There was also a kitchenette: Descriptions of Pro’s offices come from Kitzer’s testimony in U.S. v. D’Amato, Mucci, and Bendis.
“In the five-hour flight”: Kitzer’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
The check would total $500: Robert Hodierne, “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
a Denver-based real estate: From Bernard Baker’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
“Nowhere, Indiana”: Tom Baker’s phrase in a history he wrote about Operation Fountain Pen and Abscam and furnished to the author.
Myron Fuller was still: Interviews with Fuller.
a “knuckle dragger”: Interviews with Fuller.
Trocchio had been arrested: Pete Bowles, “Four Indicted in Bid for Mob Take-over,” Newsday, March 24, 1982.
This chapter was drawn almost entirely from testimony in federal court in Kansas City (U.S. v. D’Amato, Mucci, and Bendis) from Kitzer, Pro, Bendis, Mucci, Guthrie, and Cleveland Trust assistant manager David Sipari. The material involving Fuller’s investigations came from interviews with Fuller.
This chapter largely relies on Kansas City testimony (U.S. v. D’Amato, Mucci, and Bendis), specifically from Kitzer, Wedick, Guthrie, and Pro.
“It was really a good”: Interviews with Bowen Johnson.
“The FBI was magical”: Jebb Johnston, “Training Center Boosting Law Enforcement,” Daily Corinthian, March 25, 2011.
“Dear Mr. D’Amato”: This letter was read into the record during Pro’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
“almost like an addiction”: Mark Gladstone and Paul Jacobs, “The G-man, the Shrimp Scam, and Sacramento’s Big Sting,” Los Angeles Times, December 11, 1994.
Fred Pro denied in court putting out a hit on Armand Mucci, but the contract was common knowledge in Kitzer’s circle and over Myron Fuller’s wiretap. It also appeared, as noted below, in Robert W. Greene’s book about Mel Weinberg, which was, decades later, adapted into the movie American Hustle.
Pro had put out a contract: Robert W. Greene, Sting Man: Inside Abscam (New York: Elsevier-Dutton, 1981), p. 100.
amazed at the jumbled: Wedick’s testimony in Louisville (U.S. v. Kaye and Calandrella).
Phil and Packman had long ago spent: Ibid.
“arrest quotas were used”: Selwyn Raab, Five Families: The Rise, Decline, and Resurgence of America’s Most Powerful Mafia Empires (New York: St. Martin’s Press, 2005), p. 221.
“Really it just shocked me”: Interview with Tom Baker.
“Now, come on”: Interview with Brennan.
“a cross-country tour”: Pro in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
This chapter encompasses two of the big stories on either coast during the summer of 1977: the phony armed robbery in Los Angeles and the New York City blackout and subsequent riots.
“Keep moving and don’t”: From Statement of Facts in State of California v. Vincent Carrano, Jack Fulton, et al., Docket No. C-39065, held in Superior Court in Santa Ana, California.
“The gun looked nine feet”: Richard O’Reilly, “Clues in $1.1 Million Bullion Theft Sought,” Los Angeles Times, July 11, 1977.
“Take care of that fat”: There was some discrepancy as to which pejorative term the perpetrator claimed to have used to describe Carrano. I went with the one on page 36 of the Statement of Facts in California v. Carrano et al.
“Silver and gold, no problem”: Mike Runzler, “Few Clues Left to Solve $1 Million Bullion Heist,” Orange County Register, July 12, 1977.
he’d been indicted on twenty-seven: “FBI Can’t Unlock Safe Holders’ Lips,” News-Pilot (San Pedro, California), July 21, 1977.
“getting lumber and hammers”: Interview with Fuller.
“I’ll send out a hit”: Robert W. Greene, Sting Man: Inside Abscam (New York: Elsevier-Dutton, 1981), pp. 101–2.
“Oh, didn’t you hear?”: Interview with Fuller.
“I think the problem”: Testimony of Jack Elliott (California v. Carrano et al.).
“Hell, that shit’s been gone”: Ibid.
“That son of a bitch”: Ibid.
In January, Carrano had asked Phil: Summary of facts in decision of Court of Appeals of California, Fourth Appellate District, Division Three, in California v. Carrano et al., April 30, 1984.
Koenig would purchase Swiss: Evan Maxwell, “This Fairy Tale Doesn’t End ‘Happily Ever After,’ ” Los Angeles Times, July 23, 1978.
“Well, maybe I’ll come down”: Elliott testimony in California v. Carrano et al.
They invented tales of wilderness: Brennan’s testimony in Louisville (U.S. v. Kaye and Calandrella).
Arsonists set more than a thousand: Sewell Chan, “Remembering the ’77 Blackout,” New York Times, July 9, 2007.
“even the looters were”: Leonard Greene, “Lights Out for Suffering City,” New York Post, July 9, 2007. For more on the riots and New York’s struggles in that era, also see Bryan Burrough, Days of Rage: America’s Radical Underground, the FBI, and the Forgotten Age of Revolutionary Violence (New York: Penguin Press, 2015), p. 398.
John Quinn, a Long Island resident: This paragraph is drawn from an FBI case summary on Joseph Trocchio and others dated April 8, 1980, courtesy of Myron Fuller.
“I really…think a lot”: Pro’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis). See also the coverage of the trial in the Kansas City Times, in particular Greg Edwards’s “Witness Details Investment Swindle” on December 6, 1978, and “Fraud Trial Witness Says Defendant Out to Kill Him,” December 7, 1978.
Guthrie was also now talking: From Guthrie’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
Historically the mob: This paragraph is largely drawn from James O. Finckenauer, “La Cosa Nostra in the United States,” a United Nations Activities paper published on December 6, 2007: https://www.ncjrs.gov/pdffiles1/nij/218555.pdf. I also consulted Selwyn Raab’s Five Families: The Rise, Decline, and Resurgence of America’s Most Powerful Mafia Empires (New York: St. Martin’s Press, 2005).
“Can you imagine Vinnie”: Interview with Fuller.
shell corporation named Elinvest: From summary of U.S. Court of Appeals decision for the Second Circuit, in New York City, in United States v. Eric Blitz, Peter Horvat, Richard Orpheus, and William Drew, Docket No. 75-1237.
“We spent enough time”: From United States v. Sonny Santini and Richard Strum, U.S. Court of Appeals decision, Southern District of New York, Docket Nos. 81-1249 and 81-1250.
appendicitis or had a heart attack: Ibid.
“Ten billion in assets?”: Interview with Wedick.
“I couldn’t say that I felt”: Bernard Baker testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
“Okay, when we sign”: Brennan’s testimony in Hawaii (U.S. v. Iuteri).
ten-story, 293-room behemoth: Leslie Berkman, “O.C. Investors Buy Registry Hotel in Irvine, to Reopen as Radisson,” Los Angeles Times, July 7, 1989.
purportedly owned a small airline: From Elliott’s testimony in California v. Carrano et al.
He’d recently run into trouble: Joe Cordero, “OC Man Charged in London Forgery Case,” Orange County Register, October 23, 1977.
twenty-six thousand metal washers: Joe Cordero, “Swiss Vaults Trio Faces Embezzling Complaints,” Orange County Register, September 4, 1977.
disconnected and rewired: Evan Maxwell, “Swiss Vaults Operators Plead Not Guilty in Theft,” Los Angeles Times, January 7, 1978.
“I found him to be very keen”: From Elliott’s testimony in California v. Carrano et al.
prepared sham assay reports: From U.S. v. Santini and Strum, U.S. Court of Appeals decision. There were a couple of variations on Elliott’s gold-bar scam, as described by Wedick and Brennan and summarized in Bill Osinski’s “Government Witness Ends Fraud-Trial Testimony,” Louisville Courier-Journal, February 22, 1978.
Some of Wedick’s and Brennan’s most vivid recollections involve Santini, because of the threat he represented. The first section of this chapter was crafted through interviews with both retired agents.
phoning “the alphabet”: From Kitzer’s expert testimony in U.S. v. Gerhardt and Adornato.
“When you say stole”: This exchange took place during Kitzer’s testimony in Hawaii (U.S. v. Iuteri).
“That was part of the business”: From Kitzer’s testimony in U.S. v. Martell.
“[I]f somebody had a need”: Kitzer’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
“We have letters of credit”: Kitzer’s testimony in Louisville (U.S. v. Kaye and Calandrella).
“[W]hether it’s an outright”: Ibid.
not good for Bernard Baker: From Baker’s testimony in Kansas City (U.S. v. D’Amato, Mucci, and Bendis).
“a good Italian boy”: This and the rest of this passage are from interviews with Brennan and Wedick.
a lunatic made national: As described in Terri Jentz, Strange Piece of Paradise (New York: Farrar, Straus and Giroux, 2006).
“all leads set out”: From a teletype issued by the FBI on August 4, 1977, available in the Elvis Presley section of the FBI’s online Vault. The Reid memo referenced in the next paragraph is also stored in that location.
Nick Coleman’s story in the Minneapolis Tribune, mentioned below, provided some rare insight into Kitzer’s home life. As much as Kitzer opened up to Brennan and Wedick, he rarely delved into life in Ellendale.
Paint was curling: Nick Coleman, “Ellendale Wondered About Phil Kitzer,” Minneapolis Tribune, March 12, 1978.
“a very friendly atmosphere”: Donald Schlaefer testified about the search in Louisville (U.S. v. Kaye and Calandrella).
emptied Trident Consortium: FBI report 87-16994, in the Elvis Presley section of the online FBI Vault.
“What about that fucking Calandrella?”: From the transcript of the Louisville trial (U.S. v. Kaye and Calandrella).
“Guys, listen,” he said: This conversation was recounted by Wedick and Brennan.
Phil had rented space: Oliver described his version of his history with Kitzer in an affidavit given on July 18, 1978, and filed in federal court in Charlotte, North Carolina, as part of U.S. v. Chovanec et al.
Oliver would turn up: Ray Gibson, “Missing Porn-Theater Owner Found Dead in Car Trunk,” Chicago Tribune, July 27, 1985. In general, headline writers loved Oliver. Two others from the Tribune: “Key Witness in Bungled Mob Hit Attacked as ‘Scum, Loser’ ” (November 7, 1984) and “Simple Trial Turns Diabolical, With Judge Labeled the Devil” (September 16, 1983).
“one of the most feared”: Maurice Possley, “Frank W. Oliver: 1920–2006,” Chicago Tribune, October 5, 2006.
“As a result of activities”: Memo to FBI director dated October 3, 1977, courtesy of Wedick.
“so as to preclude any”: FBI teletype 87-143601, available in the Elvis Presley section of the bureau’s online Vault.
walked off a Braniff International: FBI report 87-16994, FBI Vault.
boarded the flight ready: Affidavit from Kitzer’s attorney, Robert Zeman, November 22, 1977, filed in Louisville (U.S. v. Kaye and Calandrella).
“white-collar crime of a high”: Jim Adams, “Dozens Are Indicted in What FBI Calls Broad Scheme with Louisville Links,” Louisville Courier-Journal, October 19, 1977.
between $3 million and $5 million: FBI memo on OpFoPen and Abscam dated July 17, 1980. Pro worked a plea deal in the aftermath, while D’Amato was among the defendants to plead guilty. See Tom Condon’s “U.S. Won’t Prosecute Case Against Onetime Promoter” in the February 21, 1979, edition of the Hartford Courant.
“opened a new curtain”: Interview with Fuller.
more than nineteen hundred telexes: Robert Hodierne, “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
I pieced together Kitzer’s plight in jail partly through his lawyer’s court filings and through inferences made from Frank Oliver’s three-page letter in November 1977, referenced below. Another key piece came from Jack Elliott’s testimony in the Orange County trial of Vince Carrano and Jack Fulton. And, of course, Brennan and Wedick met him a few weeks after his arrest and saw his condition firsthand. Various legal motions and correspondence cited in this chapter—including the Oliver letter—are part of the case file in U.S. v. Kaye and Calandrella. To read about trial highlights, see Bill Osinski’s stories in the Louisville Courier-Journal, including “FBI Agent Describes His World Travels with Con Artist,” February 17; and “Con Man Testifies About Promoting Costly Fraud Schemes,” February 18, 1978.
set Kitzer’s bond: U.S District Judge Charles M. Allen’s bail order for Kitzer is part of the case file in U.S. v. Kaye and Calandrella.
“told me that he was broke”: Testimony of Jack Elliott (California v. Carrano et al.). Elliott testified that he sent Kitzer money a couple of times before losing contact with him. On October 23, 1977—a few days after Kitzer’s arrest—Joe Cordero wrote a story in the Orange County Register about Elliott’s own legal troubles in London (“OC Man Charged in London Forgery Case”) in which Elliott is quoted as saying, “I’ve never seen Kitzer do a dishonest thing.”
Phil kept no books: See Kitzer’s testimony in U.S. v. Kaye and Calandrella.
phony birth certificates: “Illegal Donations Admitted,” Northwest Indiana Times, November 10, 1977.
forty-six phone calls: From court filings in Louisville (U.S. v. Kaye and Calandrella).
He had no one representing: Kitzer’s testimony in U.S. v. Martell.
“They conned me”: Kitzer’s testimony in U.S. v. Gerhardt and Andornato.
“Listen to these names”: Nick Coleman, “Ellendale Wondered About Phil Kitzer,” Minneapolis Tribune, March 12, 1978.
“a rip-off artist”: From transcript of Louisville trial (U.S. v. Kaye and Calandrella).
“they would have him under”: Paul Redmond’s statements transcribed in Louisville (U.S. v. Kaye and Calandrella), during a pretrial chambers conversation.
For a comprehensive summary of the Louisville case against John Kaye and John Calandrella, see the appellate decision of the United States Court of Appeal, Sixth Circuit, decided on August 31, 1979. The Docket Nos. are 78-5341 and 78-5342.
“damaging testimony”: Bill Osinski, “Two Men Convicted for Involvement in Fraud Scheme,” Louisville Courier-Journal, March 8, 1978.
He received his ten-year: “Two Sentenced for Attempt to Defraud,” Louisville Courier-Journal, March 11, 1978.
“without peer as a con”: Steve Hamilton, “How the FBI Cracked the $110,000 Con Game,” True Detective, September 1979, p. 76.
“world’s greatest con man”: “The Ultimate Con,” Knight-Ridder Newspapers (Ellensburg Daily Record), August 7, 1981.
“King of Scam”: Walter Wright, “King of Scam Royally Conned Pigeons Until FBI Caged Him,” Honolulu Advertiser, May 9, 1980.
a “genie” who could: Evan Maxwell, “Genie Flitted Around Swiss Vaults but His Bottle Was Corked,” Los Angeles Times, July 17, 1978.
“master con artist”: Assistant U.S. Attorney David Everett used the phrase in chambers during the Louisville trial (U.S. v. Kaye and Calandrella).
“going up against Dr. J”: Greg Edwards, “Witness in Fraud Trial Sticks to Story,” Kansas City Times, December 8, 1978.
“too smooth a talker”: From Kitzer’s testimony in U.S. v. Gerhardt and Adornato.
“smiles and says it was”: Robert Hodierne, “A Con Man Gets Stung at His Own Game,” Charlotte Observer, December 24, 1978.
“the Phillip Kitzer method of finance”: Maxwell, “Genie Flitted.”
“the absolute highest levels of”: Evan Maxwell, “A Con Man Falls Prey to FBI’s Sting,” Los Angeles Times, March 13, 1978.
“probably very conservative”: Evan Maxwell, “Fraud Suspect May Be Linked to Vault Theft,” Los Angeles Times, October 21, 1977.
“led to discovery”: Richard Hanning memo to David T. Ready, U.S. attorney, Northern District of Indiana, November 16, 1977.
Even after the FBI informed: Walter Wright, “How Undercover Pair Pulled Plug on Scam,” Honolulu Sunday Star-Bulletin & Advertiser, January 6, 1980.
“And that is what you have put away?”: This exchange took place during Kitzer’s Louisville testimony (U.S. v. Kaye and Calandrella).
In June 1978: This document is part of the case file in the Hammond trial (U.S. v. Chovanec).
“The witness protection”: Interview with Tom Baker.
“apparent willingness to state”: From Oliver’s affidavit dated July 18, 1978, filed in Charlotte, North Carolina, as part of U.S. v. Oliver. For more on Oliver’s arrest, see John O’Brien, “Tax-Evading Chicago Lawyer Indicted in Bank-Fraud Scheme,” Chicago Tribune, June 7, 1978.
“You son of a gun”: Letter courtesy of Wedick.
all received five-year sentences: Theodore A. Driscoll, “D’Amato Receives Sentence in Fraud,” Hartford Courant, February 21, 1979. Bendis’s sentence was later reduced to one year because of family hardship.
“I had never been out shopping”: Interview with Allen Ezell.
That same year, the FBI: Joseph D. Pistone with Richard Woodley, Donnie Brasco: My Life in the Mafia (New York: New American Library, 1987), p. 28.
“I got the impression”: Interview with Dan Bent.
“dapper, tanned, and dark-haired”: Walter Wright, “A Con Artist Explains the ‘Condo Caper,’ ” Honolulu Advertiser, May 7, 1980.
“If ever a case required”: Walter Wright, “Iuteri Gets 15-Year Prison Term in ’77 Loan Swindle of Kealoha,” Honolulu Advertiser, July 8, 1980. For more on Iuteri’s past, see Walter Wright’s “Iuteri Tied to Murder, Beatings” in the Advertiser on July 3, 1980, and “Iuteri Called a Killer for Mafia” on July 8, 1980.
“one of the main members”: Letter from Elaine Hurni, examining magistrate, Geneva, to the FBI director, July 13, 1979. Provided by Wedick.
“sudden and dramatic change”: Final report of the Select Committee to Study Undercover Activities of Components of the Department of Justice, December 15, 1982, p. 1.
That night, the accrued: Kitzer described his ordeal with his ulcer in U.S. v. Gerhardt and Adornato.
Kitzer, by necessity, flew under the radar as an FBI operative. The Barron’s story cited below is one of the few instances when he was publicly named in this capacity.
“I would be capable”: From Kitzer’s testimony in U.S. v. Gerhardt and Adornato.
the newspaper ran: Jim Drinkhall, “Paper Pirates,” Wall Street Journal, March 23, 1981.
$4 million cooking crystal: “Suspects in Drug Lab Case Denied Bond,” Mobile Register, December 20, 1985.
$36,000-a-year informant: Brennan and Wedick described Kitzer’s work as informant, but this came from Barbara Conway, “Alabama Sting: World-Class Con Man Meets His Match in Mobile,” Barron’s, June 27, 1983.
Mobile Municipal Airport: “Two Sentenced in Drug Case,” Mobile Register, August 2, 1986.
a theatrical supply house: Robert Hodierne and Mary Walton, “The Sting: From New York to Florida to New Jersey to Washington to Philadelphia,” Philadelphia Inquirer, February 10, 1980.
“If not for those guys”: Interview with Myron Fuller.