Senator PERCY. Was there a conversation about the fact that Lefty Rosenthal's potential licensing problems with the Nevada Gaming and Control Board would jeopardize the mob's financial interests? Mr. OUSELEY. We did have such interceptions and that was a factor. They felt it was a dangerous factor and I think led to their desire to have him out.

Senator PERCY. Did Nick Civella discuss obtaining insight or information to be used in obtaining stock of Las Vegas casinos?

Mr. OUSELEY. The insider stock situation resulted from the fact that the Tropicana Hotel had designed a merger with a publicly traded corporation in order to get itself on the stock market quickly and be able to issue stock. The timing and the manipulations of how this was being done was documented in our conversations and Agosto continually was told to keep them abreast of this situation so that they could capitalize on it to the fullest amount of their inside situation.

Senator PERCY. Did Nick Civella ever discuss the problem of stealing from the slot machines as opposed to stealing cash?

Mr. OUSELEY. I would have to say on that, the topic, yes, the topic of stealing from the slot machines was discussed as being one of the best ways to go. However, comically, they were trying to determine how a person can physically carry that much money out of the casino.

It weighs a lot, money, and it would take 50 guys in a chain, he said, to take it out, at which point he was advised that that is why they had to set up a separate bank for the slots and steal the money. not the coins.

Senator PERCY. Did the interception disclose that a Chicago representative attended a meeting in Kansas City with Nick Civella to discuss the problem between Kansas City and Chicago and, if so, who was that person?

Mr. OUSELEY. The negotiations that we discussed and the problems therein resulted in a fact of calling a meeting; a representative from Chicago did come down to meet with Nick Civella.

The results of that meeting were reported. Subsequently, we picked it up on our interceptions and that person who came down is identified as Jackie Cerone, a known member of the organization.

Senator PERCY. Did Nick Civella then go to Chicago to meet with Joe Aiuppa?

Mr. OUSELEY. The intercepts indicate that Nick Civella did in fact travel to Chicago and met with Joe Aiuppa.

Senator PERCY. Mr. Chairman, perhaps you would want to ask questions relating to tomorrow's testimony, providing background for it. Chairman NUNN. Just one other question. You mentioned a little while ago in your testimony, I didn't know whether it was very often or occasionally that there was use of the Sicilian language to disguise plans. Did I misunderstand you?

Mr. OUSELEY. No. The intercepts are replete with use of Sicilian language, from small phrases to full conversations.

Chairman NUNN. Is that to throw anybody off who might be listening in or is that the normal pattern of conversation of these particular individuals?

Mr. OUSELEY. Senator, I would guess that it was used as a security measure as with other codes, but we have Sicilian-speaking agents.

Chairman NUNN. Thank you very much.

Senator Percy, do you have any further questions?

Senator PERCY. Just one last question. Have you reviewed the statement of our witness for tomorrow, Mr. Bonadonna and, if So, in your estimation is it accurate?

Mr. OUSELEY. I have reviewed the statement and I find it to be accurate and correct.

Senator PERCY. Thank you, Mr. Chairman.

Chairman NUNN. Thank you very much. You have all been enormously helpful. We appreciate your patience in a rather long hearing, but I can assure you that on behalf of the subcommittee, we are all very thankful for the splendid cooperation we have had from both the FBI and the Justice Department.

Chief, we appreciate your being here. We appreciate your capable assistant being here and we hope you will express our appreciation to all of the men on your force. We look forward to working with you. I assure you we will take into strong consideration the suggestions you made about legislation that would accelerate and increase the interchange of information between Federal and State and local law enforcement.

Mr. CARON. Thank you, sir.

Chairman NUNN. Our witnesses tomorrow will be Mr. Harvey Bonadonna, businessman, who was the target of mob violence, under the witness protection program. We will also hear from Mr. William Cammisano, of Kansas City, member of the mob as it has been identified here today. We do not know the extent of his testimony at this time, but we will be calling him tomorrow.

We will be in room number 1202 tomorrow. We will begin at 10 o'clock. The subcommittee stands in recess.

[Whereupon, at 1:15 p.m., the subcommittee recessed, to reconvene at 10 a.m., Thursday, May 1, 1980.]

[Members of the subcommittee present at time of recess: Senators Nunn and Percy.]

ORGANIZED CRIME AND USE OF VIOLENCE

THURSDAY, MAY 1, 1980

U.S. SENATE,

PERMANENT SUBCOMMITTEE ON INVESTIGATIONS

OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to recess, in room 1202, Dirksen Senate Office Building, under authority of Senate Resolution 361, dated March 5, 1980, Hon. Sam Nunn (chairman of the subcommittee) presiding.

Members of the subcommittee present: Senator Sam Nunn, Democrat, Georgia; Senator Thomas F. Eagleton, Democrat, Missouri; Senator Lawton Chiles, Democrat, Florida; Senator James R. Sasser, Democrat, Tennessee; Senator Charles H. Percy, Republican, Illinois; and Senator John C. Danforth, Republican, Missouri.

Members of the professional staff present: Marty Steinberg, chief counsel; W. P. Goodwin, Jr., staff director; Michael Levin, deputy chief counsel; Peter Sullivan, assistant counsel; Jack Key, Raymond Maria, William Colombell, Raymond Worsham, and Donald Zell, investigators; Myra Crase, chief clerk; Mary Donohue, assistant chief clerk; Joseph G. Block, chief counsel to the minority; Charles Berk, general counsel to the minority; Howard Marks, Howard Shapiro, and Richard Shapiro, investigators to the minority; Lynn Lerish, executive assistant to the minority; Ira Shapiro, chief counsel, Governmental Efficiency and District of Columbia Subcommittee; Peter Levine, general counsel, Intergovernmental Relations Subcommittee; Janet Studley, counsel, Federal Spending Practices and Open Government Subcommittee; and Alan Bennett, counsel to the minority, Governmental Affairs Committee.

Chairman NUNN. The subcommittee will come to order.

[Members of the subcommittee present at time of reconvening: Senator Nunn.]

Chairman NUNN. Before we begin this morning, I want to say something to the news media representatives who are with us today.

Our first witness today is Mr. Bonadonna, a businessman who formerly lived in Kansas City, Mo. As a result of the situation involving the River Quay in Kansas City-about which we heard a great deal yesterday Mr. Bonadonna volunteered to join the Federal witness. protection program.

Mr. Bonadonna now lives in a different locale under a new identity. The people in his new hometown know nothing of his true identity.