Best and worst big cities in which to buy your first house
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"President Barack Obama began his re-election fundraising drive yesterday in Chicago among some of his earliest political investors and near his 2012 campaign headquarters...Among longtime donors at the events were Penny Pritzker, who led the fundraising effort for his 2008 campaign and John Rogers, chairman of Chicago-based Ariel Investments LLC..."
1. "What is most relevant to the Pritzker role in the Supermob is the large number of Pritzker transactions that involved known crime figures..." (page 68)
2. 'From LAPD Hamilton's Feb. 2, 1954 internal memo: `Abe Pritzker, a Chicago attorney with offices at 134 N. LaSalle Street, which is the same address as that of Sidney Korshak's office, has been closely connected with members of the Capone syndicate...and other underworld characters. It is believed by the undersigned that Pritzker may be active locally, as a front for eastern hoodlum money to be invested in the Los Angeles area...'" (page 136)
3."...The Pritzkers also became one of the country's largest hospital operators, acquiring 6 of their own and operating 15 more under lease and contract management..." (page 138)
4. "Profits...were not the only constants in the Pritzker saga. Rumors flew that, as with their questionable real estate partnerships in the forties, the Pritzkers'...Hyatt endeavor was similarly tainted. One IRS informant who was quoted as saying that `the Pritzkers family of Chicago through their Hyatt Corp. initially received their backing from organized crime' was later identified as F. Eugene Poe, the late president of a bank in Perrine, Florida, and vice president of the offshore tax haven where the Pritzkers hid their wealth known as Castle Bank..." (page 138)
5."...By the midseventies, the Pritzker empire was awash in profit, the most recent success coming from Nevada casino investments. Between 1959 and 1975, the Pritzkers had obtained $54.4 million in Teamster loans for their hotels...Thus, in 1972, under their Elsinore banner, the Pritzkers joined the Vegas party when they bought the Four Queens in `Glitter Gulch' and King's Castle with Teamsters Pension Fund loans (obtained at 4 percent discount, saving Hyatt $8 million). In return, the Teamsters bought $30 million in Hyatt stock..." (page 438)
6. "It was around this time, the early seventies, that IRS agents like Andy Furfaro noticed that the Prizkers' billion-dollar Hyatt chain was paying no taxes. It turned out the Pritzkers were the largest depositors in one of the most notorious offshore tax havens ever devised, The Castle Bank of the Bahamas, which was nothing less than an intersection of the Supermob, known gangsters, pop stars, a U.S. president, and the covert branch of the CIA--all of whom had good reason to hide their money from Uncle Sam...
"Castle...was the brainchild of longtime CIA `front organization' mastermind Paul Helliwell...
"In 1964, Helliwell joined forces with...Pritzker Chicago tax attorney (and Hyatt board member] Burton Kanter and Pritzker law firm partner [and Teamsters Pension Fund trustee] Stanford Clinton to establish the Castle Bank, where foreigners could set up trust accounts that were the key to both personal and commercial tax avoidance: since the trusts were, for U.S. tax purposes, foreign citizens, they owed no taxes to the U.S. government. The added beauty of the Castle setup was that the actual deposits never had to be delivered to the bank, which was a fake depository for money that the client could use anywhere in the world." (page 439)
7. "In the midseventies...the IRS mounted Operation Tradewinds (later Project Haven), an all-out investigation of Castle, referring to the probe as potentially the largest single-biggest tax-evasion case in U.S. history...IRS agent Richard Jaffee and detective Sybil Kennedy obtained a list of the bank's depositors, which included the Pritzkers...
"Given all the Pritzker associates involved in the management of Castle, it came as no surprise when Pulitzer Prize-winning journalist Knut Royce determined in 1982 that the Pritzkers were in fact the bank's largest depositors. A September 1972 IRS statement noted, `An informant [F.Eugene Poe, a former VP and director of Castle Bank] with access to the records of Castle Trust has stated that the Pritzker family of Chicago, through their Hyatt Corporation, received their initial backing from organized crime.'..." (page 440)
8. "...The CIA's general counsel John J. Greaney intervened and demanded that the Department of Justice and IRS end the probe--it seemed that the CIA had also used Castle Bank to launder money in furtherance of its clandestine operations, and it feared that an investigation would jeopardize national security, not to mention its own congressional free ride..." (page 443)
9. "Using seed money from Chicago investors including the Pritzkers.., Kanter next became the legal advisor to...Cablevision Systems, which went on to become the largest privately held cable television company in the United States..." (page 443)
10. "Castle Bank was not the only shady partnership entered into by Kanter and the Pritzkers. In the 1970s, Kanter and Pritzker were also involved in a massive kickback scheme with two executives from the real estate wing of Prudential Insurance Company...In a complex setup that took prosecutors over 20 years to unravel, Kanter and the Pritzkers devised a scheme wherein contractors paid them and the Prudential executives under the table in exchange for lucrative Prudential business..." (page 440)
11. "...Burt Kanter, the man who had devised so many tax dodges for the Pritzkers and other cadre associates, died of cancer on October 31, 2001, while awaiting sentencing on a finding that he had defrauded the IRS.
"In 1994, after spending years unraveling the Kanter-Pritzker-Prudential insurance kickback scheme, the IRS had finally brought the case to trial...Judge Couvillion concluded that Kanter and associate had devised a scheme of kickbacks to avoid paying taxes to the federal government..." (page 571)
12. "As for the Pritzkers, over the last quarter century the family business had partnered with the infamous Bank of Credit and Commerce International [BCCI] in developing Hyatt hotels in Saudi Arabia..." (page 521)
13. "Like so many of the Supermob who increased their wealth with offshore tax dodges, the Pritzkers attempted to balance their reputation with philanthropy, the clique's way of saying that they'd rather choose where their money goes than allowing the IRS to do it..." (page 68)