Peterson Investigations - Confidential
Surveillance Report

Investigator: Reardon
Date: November 9, 1959
Subject: Phillips Aviation Local 252 and Menzzini Crime Family Affiliations

Case History:

Phillips Aviation has requested discreet investigation of Local 252 employees and Phillips management to determine if there is an association with the Menzzini crime family in Chicago. Line taps on phones of union small timers have revealed some information about the Local 252 and uncovered an association with the Menzzini organization. This family is believed to be involved in investment scams with various factory unions in Detroit and Chicago. Recent actions by Local 252 indicate involvement in Menzzini investment operations.

Progresss Report:

Information gained thus far suggests that Mohr agreed to involve Local 252 in a profitable investment circle which includes hotels, casinos, resorts and other property in Atlantic City through Boss Menzzini in Chicago. Local 252's investments began six months ago. Union members have been kept in the dark until recently when some of the bottom tier members were cut in on profits in return for serving as enforcers, keeping the membership in line and quiet. Heavies like Fats Menzzini and Mets Menzzini, who keep a penthouse in Highland Park, Detroit, and Chicago union heads Marco Riglioni, Todd Bush and Elliot Perch have been meeting with Local 252 leadership in recent weeks. We have been unable to infiltrate that group at this point, however, our belief is that Phillips Aviation is likely to be drawn into an FBI fraud and racketeering investigation.

Top tier Local 252 members believed to be linked to investment scams include Union President, Jim Mohr, Vice President, Toby McCalahan and Treasurer, Willis Ketchum.

Bottom tier members involved are Bob Duffy, Marco Bennett, Ernest Bello, Howard Hammack, Ray Balboa, Tony Kief and Nando Tuckett.

Tap transcripts reveal little about the investment scheme, although reference to "Mr. P" in the Bennett/Hammack conversation suggests involvement with factory president Franklin R. Phillips. This is valuable information worth follow up investigation for the protection of Phillips Aviation interests.

Peterson investigators learned of a proposed action to eliminate Julio "Jeans" Bello by the Menzzini family using members of Local 252. Duffy, Bennett, Hammack, Kief, E. Bello and Nando were tapped, transcripts attached. Mention of a "rally" means an attack or physical confrontation, no doubt here meaning Julio "Jeans" Bello. This "rally" is a cover-up for bigger action, we believe the planned hit on Bello by Local 252. Our intelligence indicated that Howard Hammack was targeted to do the hit. This was a test for Hammack, a known roughneck who has so far not been part of the inner circle. He has received no money from Atlantic City investments that we know of. Small timers like Bello are usually dealt with swiftly by the Menzinni family in operations like this.

The action was planned for this past Saturday, November 7th. As you are aware, the FBI ran a sting and took Jeans Bello into custody. Duffy, Hammack and Tuckett took a powder Saturday and were not arrested. Our informant states that on Sunday they met with Mohr and declined further involvement in the Menzzini connections. We think the information is reliable and they got scared out of it. We will continue surveillance and progress reports.