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The Real Reason the FBI Could Never Catch Meyer Lansky — And How He Hid $300 Million – HT

 

You know the ending. Hyman Roth shuffles off the plane at the airport in a cardigan and a hat, a small bag in his hand, reporters surrounding him on the tarmac. Every country has turned him away. The only place left is the one place he cannot survive. He walks through the terminal and Michael Corleone’s man is waiting in the crowd with a newspaper and a gun underneath it. One shot.

 Roth drops. The old man who built an empire and tried to outlast everyone is dead on a Miami airport floor before he reaches the exit. Clean. Cinematic. A death worthy of the man. Now, here is what actually happened. November 1972, Miami International Airport. A 70-year-old man comes off a plane from South America.

 He is 5 ft 4 in tall and barely 140 lb. He is wearing a hat. He is carrying a small bag. Every country he tried refused him. Paraguay turned him back at the airport in Asuncion before he could even step off the plane. He flew on through the continent, country by country, and none of them would have him. The only place left was the one place he was trying to avoid, home.

The FBI arrested him the moment he stepped off the plane. Outstanding federal warrant for tax evasion. He hired lawyers. He went to trial. He was acquitted. Then he went back to his apartment in Miami Beach. Every morning he walked his shih tzu, a dog named Bruiser, along the waterfront. He attended synagogue on the high holy days.

He lived quietly and modestly in the city he had helped make rich for 40 years. He died of lung cancer on January 15th, 1983, at 80 years old, in his own bed. Shortly after The Godfather Part II premiered in 1974, the man who Hyman Roth was based on called the actor who played him on the telephone. Lee Strasberg had been nominated for an Academy Award for his performance.

 The call came from Meyer Lansky. He congratulated Strasberg. He told him it was a good performance. And then he added one complaint, five words that contain everything you need to know about the gap between the film and the reality. He said, “You could have made me more sympathetic.” The most dangerous financial criminal in American history, the man the FBI called the mob’s accountant, the architect of the national crime syndicate, the man who built Las Vegas and owned Cuba and laundered hundreds of millions through Swiss banks for 50 years,

watched an actor play him dying at an airport, and his only complaint was that the character was not sympathetic enough. Hyman Roth is a great character. The real man was more dangerous, more extraordinary, and more human than anything Francis Ford Coppola put on screen. This is the full story of Meyer Lansky.

And every detail of it is documented, verified, and more extraordinary than the film. July 4th, 1902. Grodno, Russian Empire, today the city of Grodna in Belarus. Meyer Suchowljansky is born into a Polish Jewish family in a city where being Jewish is not merely an inconvenience, but a specific physical danger.

The pogroms of the Russian Empire, organized mob violence against Jewish communities, carried out with official tolerance or official participation, are a recurring feature of life in the Pale of Settlement, the western regions of the Russian Empire where Jewish residents are legally required to live. The Suchowljansky family understands, as every Jewish family in the Pale understands, that the ground beneath them is not permanent.

His father emigrates first in 1909, 2 years [clears throat] before the rest of the family follows. In 1911, 9-year-old Meyer arrives at the port of entry with his mother and brother Jacob. The immigration official processing his papers asks for his birth date. His parents cannot remember the exact date, the record keeping in Grodno was not meticulous, or the documents were not carried, or the chaos of immigration had swallowed the detail.

The official assigns him a birthday, July 4th, Independence Day. He will carry this accidentally patriotic birthday for the rest of his 80 years. The family settles on the Lower East Side of Manhattan, the most densely populated neighborhood in the most densely populated city in America. A compression of languages and cultures and poverty and ambition stacked into tenement buildings, where the walls between apartments are thin enough to hear everything, and the streets below are never quiet. It is not easy.

It is, compared to Grodno, safe. And Meyer Suchowljansky, who will shorten his name to Meyer Lansky, takes his intelligence, a mathematical intelligence that his teachers will note as exceptional, and that will define every decision he makes for the next 70 years, and applies it to the specific opportunities that the Lower East Side of 1915 offers a Jewish kid with no money and a gift for numbers.

The first opportunity is a floating craps game. He and Bugsy Siegel, another Jewish immigrant kid from the neighborhood, 3 years his junior and constitutionally violent in ways that Lansky is not, run gambling games in the streets and in the back rooms of buildings, Lansky manages the money.

 Siegel provides the physical presence that keeps the games honest. This division of labor, Lansky’s brain and Siegel’s violence, is the template for every business arrangement Lansky makes for the next 30 years. The meeting with Lucky Luciano happens, according to multiple documented accounts, when Lansky is walking home from school, and Luciano, running a small Sicilian street gang that extorts protection money from Jewish kids, tries to shake him down. Lansky refuses.

Luciano, who has a genuine respect for physical courage in men smaller than himself, is impressed. The extortion attempt ends. A friendship begins. It is a friendship between a Polish Jewish immigrant kid who is brilliant at mathematics and a Sicilian immigrant kid who wants to build the largest criminal organization in American history.

They understand each other’s usefulness immediately. They will work together for the next 40 years. The 1920s arrive and prohibition transforms the Lower East Side gambling operation into something much larger. When the Volstead Act goes into effect in January 1920, every adult American who drinks, and there are tens of millions of them, needs an illegal supply chain.

 Lansky and Siegel see it immediately. They form the Bugs and Meyer mob, building a bootlegging operation that supplies stolen trucks and professional drivers to the distribution networks spreading across New York, New Jersey, and beyond. They extort from Jewish storekeepers. They extort from Irish shop owners.

 They extort from Italian gamblers. They do not discriminate. Their gang handles protection, hijacking, and illegal gambling, and develops, alongside Siegel specifically, a reputation for professional murder for hire that is so efficient and so reliable that it becomes, a decade later, the direct institutional ancestor of Murder, Incorporated.

This is the detail The Godfather never shows you about Hyman Roth. The film presents him as a financial operator, cunning, dangerous, but primarily a businessman who moved money. The real Lansky, in his 20s and 30s, was running an organization that committed murder professionally, that broke up Nazi rallies with baseball bats, and that inserted itself, through Luciano, into every significant criminal power transition in New York between 1925 and 1935.

The Nazi rally detail is documented and verified, and it is one of the most extraordinary things in Lansky’s entire career. With Adolf Hitler’s rise to power in Germany in 1933, the German-American Bund began holding rallies in New York. Pro-Nazi demonstrations attended by German-Americans who had not yet understood or did not care what was happening in Europe to their coreligionists.

New York Judge Nathan Perlman, a former congressman, approached Lansky with a specific request. He asked him to break up the rallies. Not to kill anyone, to break them up, to make them physically impossible to continue. Lansky agreed. His men, mostly veterans of the Bugs and Meyer mob, attended rallies with specific instructions.

They beat the Nazi sympathizers severely enough that the rallies could not continue. They were arrested multiple times. They were bailed out. They went to the next rally. Judge Perlman offered to pay Lansky for his services. Lansky refused the payment. When Perlman pressed him, he said, “I am a Jew, and I feel for the Jews in Europe who are suffering.

 They are my brothers.” This is the man the film turned into Hyman Roth. In the early 1930s, Lansky and Luciano do something that no criminal organization in America has ever attempted before they build a national structure, not a loose confederation, not a temporary alliance, a functioning national crime syndicate with rules, territories, a governing body, and a financial architecture sophisticated enough to generate reliable income across multiple jurisdictions simultaneously.

The Commission, the governing body Luciano establishes in 1931 to end the war between the old guard Sicilian bosses and the younger American-born generation, requires someone who can be trusted by all parties regardless of ethnic affiliation. Lansky is Jewish. He cannot be a made man.

 He will never hold formal rank inside any Italian-American family. This is, paradoxically, his greatest strength. Because he is outside the structure, every faction can trust him to facilitate deals without taking sides. Because he has no formal rank, he cannot threaten anyone’s position. He is the one man every boss in America can sit down with simultaneously.

He is also, by this point, the most sophisticated criminal financial mind in the country. As early as 1932, 2 years before Switzerland formally codified banking secrecy into law in 1934, Lansky is moving money from illegal operations in New Orleans into Swiss offshore accounts. He understands, before the Swiss law exists, that the architecture of secrecy banking can make criminal money invisible to American law enforcement.

 He builds the system before the legal framework that protects it is even in place. The FBI, watching all of this, cannot touch him. They have no admissible evidence. They have surveillance reports, informant accounts, and the absolutely certain conviction that Lansky is the financial brain behind the national crime syndicate, but the money is in Switzerland.

The accounts are in other people’s names, and the man who put it there left no paper trail that would survive a federal courtroom. One frustrated FBI agent, summarizing the situation in an internal report that later becomes famous, writes of Lansky, “He would have been chairman of the board of General Motors if he had gone into legitimate business.

” Then comes Cuba. And this is where the film’s version of Hyman Roth is most directly built on Lansky’s reality and most dramatically undersells what the reality actually was. In the film, Hyman Roth is shown as an old man brokering deals in Havana, cutting a birthday cake shaped like the island of Cuba with mob bosses gathered around him.

 The atmosphere is one of aging gangsters trying to hold on to something that is already slipping away. The real Lansky in Cuba was not an aging man holding on. He was at the height of his power, building something from nothing that he designed entirely himself, and that became, at its peak, the most sophisticated mob operation in the world outside the continental United States.

The Cuba story begins in earnest in 1933, when Lansky approaches Fulgencio Batista, not yet Cuba’s president, but already the most powerful military figure in the country, and makes an arrangement. Lansky will provide suitcases of cash alongside assurances of 3 to 5 million dollars in annual revenue from a gambling monopoly.

 In exchange, Batista will give the mob control of Havana’s racetracks and casinos. The arrangement is made in person, sealed with a handshake, and will define Cuban politics for the next 26 years. In December 1946, with Batista temporarily out of power and living in Daytona Beach, Florida, Lansky organizes the most important mob meeting in American history since the Atlantic City conference of 1929.

He calls it at the Hotel Nacional in Havana, the most elegant hotel in Cuba, overlooking the harbor from a hilltop in the Vedado district. Every major American crime family sends representation. Lucky Luciano, still technically deported to Italy, travels to Havana on a false passport via Caracas, Mexico City, and a private plane from Venezuela, a journey of thousands of miles that he makes specifically because Lansky has organized this meeting, and that means it matters.

From New York, there are Frank Costello, Vito Genovese, Albert Anastasia, and Joe Adonis. From Chicago, Tony Accardo and the Fischetti brothers. From Tampa, Santo Trafficante Jr. From New Orleans, Carlos Marcello. From Cleveland, Moe Dalitz. Entertainment for the conference is provided by Frank Sinatra, who flies down from New York with the Fischetti brothers.

At this meeting, Lansky shares his vision for a new Havana, a Caribbean Las Vegas, built by American mob money, operating in a country whose president is a personal business partner, generating revenues that no American jurisdiction can touch or tax or investigate. The bosses present are convinced the investment begins.

 In 1952, Batista stages a military coup that brings him back to power. Lansky has already been working on this. He bribes the sitting Cuban president Carlos Prio Socarras $250,000 to step aside without resistance. The coup succeeds. Batista is back. The deal is back. Batista appoints Lansky formally as his advisor on gambling reform, paying him a salary of $25,000 a year in official capacity while taking 30% of the profits from Lansky’s casinos in unofficial capacity.

The Riviera Hotel, Lansky’s crown jewel, built at a cost of $14 million next to the seawall, opens in December 1957. The largest casino outside the United States at the time. By the spring of 1957, the casino at the Hotel Nacional alone is generating as much revenue as the biggest casinos in Las Vegas. Meyer Lansky in Cuba in the mid-1950s is not an old man holding on to the past.

He is at 60 the most successful criminal operator in the world, running a sovereign country’s entertainment industry in partnership with its head of state, generating revenues that dwarf anything available on American soil, completely beyond the reach of American law enforcement. Then a 32-year-old lawyer named Fidel Castro comes down from the Sierra Maestra with 500 guerrillas and dismantles all of it.

January 1st, 1959. Batista flees Cuba. Castro takes Havana. Within hours, the casinos are seized. Within months, they are nationalized. Within a year, they are closed. Lansky loses an estimated $7 million in property and an annual revenue stream that has been generating tens of millions per year. He is, in one day, the victim of the only force powerful enough to defeat him, not the FBI, not the IRS, not the commission, not any rival family.

A revolution. He said afterward, in the specific, understated vocabulary of a man who spent 60 years saying as little as possible, “I crapped out.” The film shows what happens next accurately. In outline, Lansky tries to flee to Israel. Israel rejects him. He comes home and faces charges. But the specific details are more extraordinary than the film has time for.

In July 1970, with the IRS closing in on tax evasion charges, Lansky flies to Herzliya Pituah, Israel, with his second wife, Thelma. He intends to use the law of return, the Israeli statute granting citizenship to any person of Jewish heritage, to settle permanently and avoid American prosecution. He is 68 years old.

He walks Bruiser, the shih tzu he and Thelma brought from Miami Beach, along the streets of Tel Aviv. He meets and speaks with Israelis who frequently have no idea who he is. He is simply a small, elderly American Jewish man walking his dog. Israel’s Interior Minister, Yosef Burg, denies his citizenship application in September 1971, citing the likelihood that his presence would threaten public order.

Lansky appeals to the Israeli Supreme Court. The government prosecutor argues that despite Lansky’s many acquittals, he was only acquitted because witnesses were afraid to testify and officials were under his influence. An argument that Lansky’s defense calls, with some justification, an accusation of guilt based on a failure to prove guilt.

Behind the scenes, the United States government has threatened to withhold Phantom jet fighters from Israel unless Lansky is expelled. Israel is fighting for its survival against neighboring Arab states. The Phantom jets matter more than one elderly American gangster. The Supreme Court rules unanimously against him on September 11th, 1972.

He has 6 weeks to leave. He tries Paraguay first. A Paraguayan visa in his pocket, he boards the plane and flies to Asunción. When it lands, he is refused permission to disembark. He flies on. Bolivia, Brazil, Switzerland, Argentina. Every country refuses him. He is on the plane for 3 days flying from country to country with nowhere to go until the plane lands in Miami and the FBI is waiting at the gate.

They arrest him immediately. Outstanding warrant for tax evasion. He is acquitted in 1973. The other charges are dropped in 1974 because his health is deteriorating and the government cannot assemble a case strong enough to justify the expense of prosecuting a man who has beaten them for 50 years. He goes back to Miami Beach.

 He walks Browser along the waterfront. He reads the newspaper in the mornings. He is, by his daughter Sandra’s later account, genuinely modest in his final years. The man the FBI believed had hidden $300 million in offshore accounts had, according to multiple documented sources, a modest estate and very little in his name.

 He dies on January 15th, 1983 of lung cancer. He is 80 years old. He is buried in Miami in an Orthodox Jewish ceremony. A medal of unknown provenance is found among his possessions, possibly a Medal of Freedom secretly awarded by the Office of Naval Intelligence for his role in Operation Underworld during World War II, when he brokered the deal that traded the mob’s protection of the New York waterfront for Lucky Luciano’s early release from prison, nobody in the government ever officially confirmed it.