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Meyer Lansky (born '''Majer Suchowliński''', July 4 , 1902 – January 15 , 1983 ) was an American Gangster who, with Charles "Lucky" Luciano , was instrumental in the development of the so-called " National Crime Syndicate " in the United States . EMIGRATION AND CHILDHOOD Meyer Lansky was born in Grodno , Russia (now Hrodna , Belarus ) to Polish-Jewish parents. Father: Max Suchowljansky Mother: Yetta Lansky. In 1911, his family emigrated to the United States and settled on the Lower East Side of Manhattan , New York . While Lansky was in school, he met young Lucky Luciano who tried to shake him down. When Lansky refused to pay, Luciano was impressed with the younger boy's bravery; the two boys became friends for life. Lansky met Bugsy Siegel when he was a teenager. They also became lifelong friends and, together with Luciano, formed a lasting partnership. Lansky was instrumental in Luciano's rise to power by organizing the 1931 murder of mafia powerhouse Salvatore Maranzano . As a youngster, Siegel saved Lansky's life several times, a fact Lansky always appreciated. The two of them adroitly managed the Bug And Meyer Mob despite its reputation as one of the most violent Prohibition mobs. GAMBLING OPERATIONS By 1936, Lansky had established gambling operations in Florida , New Orleans , and Cuba . This was the same year that his partner Luciano was sent to prison. As Alfred McCoy records, "During the 1930s, Meyer Lansky "discovered" the Caribbean for northeastern syndicate bosses and invested their illegal profits in an assortment of lucrative gambling ventures... He was also reportedly responsible for organized crime's decision to declare Miami a "free city" (i.e., not subject to the usual rules of territorial monopoly)." Later on, Lansky also became a big investor in Siegel's Flamingo Hotel project in Las Vegas . After Al Capone 's 1931 conviction for Tax Evasion , Lansky realized his own vulnerability to tax evasion prosecution. In response, he transferred illegal funds from his casinos to Europe, where he opened up a Numbered Bank Account following the 1934 Swiss Banking Act . Later, according to Lucy Komisar , Lansky would even buy an Offshore Bank in Switzerland, which he used for Money Laundering through a network of Shell and Holding companies. ("Offshore Banking: The Secret Threat to America," Dissent, Spring 2003) WAR WORK In the 1930s, Meyer Lansky and his gang stepped outside their usual criminal activities to break up rallies held by Nazi sympathizers. Lansky recalled a particular rally in Yorkville , a German neighborhood in Manhattan, that he and 14 other hoods disrupted: :The stage was decorated with a swastika and a picture of Hitler . The speakers started ranting. There were only fifteen of us, but we went into action. We threw some of them out the windows. . . . Most of the Nazis panicked and ran out. We chased them and beat them up... We wanted to show them that Jews would not always sit back and accept insults. American Jewish Historical Society article During World War II , Lansky was instrumental in helping the Office Of Naval Intelligence 's Operation Underworld , in which the government recruited criminals to watch out for German Infiltrator s and submarine-borne Saboteurs . THE FLAMINGO PROBLEM During the 1940s, Lansky associate Bugsy Siegel persuaded the crime bosses (including Lansky) to invest in a lavish new casino hotel project in Las Vegas, the Flamingo. After long delays and large cost overuns, the Flamingo Hotel was still not open for business. To discuss the Flamingo problem, the mafia investors attended a Secret Meeting in Havana , Cuba. While the other bosses wanted to kill Siegel, Lansky begged them to give his friend a second chance. Despite this reprieve, Siegel continued to lose mafia money on the Flamingo Hotel. A second family meeting was then called. However, by the time this meeting took place, the casino turned a small profit. Lansky again, with Luciano's support, convinced the family to give Siegel some more time. Unfortunately for Siegel, the Flamingo soon went back into the red. At a third meeting, the family decided that Siegel was finished. He had humiliated the organized crime bosses and never had a chance. It is widely believed that Meyer Lansky himself was compelled to give the final okay on eliminating Siegel due to his long relationship with Siegel and his stature in the family. On June 20th, 1947, Bugsy Siegel was shot and killed in Beverly Hills , California. Twenty minutes after the Siegel hit, Lansky's associates, including Gus Greenbaum and Moe Sedway , walked into the Flamingo Hotel and took control of the property. According to the FBI , Lansky was to retain a substantial financial interest in the Flamingo for the next twenty years. LANSKY IN CUBA After World War II, Lansky associate Lucky Luciano was paroled from prison on the condition that he permanently return to Sicily . However, Luciano secretly moved to Cuba , where he worked to resume control over American mafia operations. Luciano also ran a number of casinos in Cuba with the sanction of Cuban president General Fulgencio Batista (who naturally received a percentage of the profits). As Luciano's Cuban revenues grew and the tourism and gambling business blossomed, Lansky himself started investing heavily in a Cuban hotel project. However, the 1959 Cuban Revolution and the rise of Fidel Castro changed the climate for mob investment in Cuba. The new Cuban President , Manuel Urrutia Lleó closed the casinos and Nationalized all the casino and hotel properties. This action essentially wiped out Lansky's asset base and revenue streams. Lansky left Cuba for the Bahamas and other Caribbean destinations. With the additional crackdown on casinos in Miami, Lansky was forced to depend on his Las Vegas revenues. LATER YEARS In his later years, Meyer Lansky lived a low-profile, routine existence in Miami Beach, making life difficult for the FBI. Lansky's associates usually met him in malls and other crowded locations. Lansky's chauffeur drove him around town to look for new payphones almost every day. Lansky was so elusive that the FBI essentially gave up monitoring him by the mid-1970s. Lansky kept very little property in his name and appeared to be just another struggling old man. However, the truth was that Lansky never owned property himself; he hid his equity through partnerships. Among Lansky's frontmen were men like Sam Cohen, Benjamin Sigelbaum and Alvin Ira Malnik. Malnik had originally started working for Lansky associate Al Mones in the late 1950s. Malnik's rise in the Lansky organization was fast and by 1970, he had seemingly become the most valuable player. After Lansky's death in 1983, Alvin Malnik's power became more visible than ever. Law enforcement officials have long suspected him to be Lansky's sole "heir". During the 1970s, Lansky fled to Herzliya Pituach, Israel , to escape tax evasion charges. Two years later, Israel deported Lansky back to the U.S. However, the government's best shot at convicting Lansky was with the testimony of loan shark Vincent "Fat Vinnie" Teresa , an informant with little or no credibilty. The jury was unreceptive, and Lansky was acquitted in 1974. Lansky's last years were spent quietly at his home in Miami Beach . On January 15, 1983, he succumbed to Lung Cancer , at 80 years of age, leaving behind a wife and three children. On paper, Meyer Lansky was worth almost nothing. At the time, the FBI believed he left behind over $300 million in hidden bank accounts, but they never found any money. However, his biographer Robert Lacey describes in detail Lansky’s financially straitened circumstances in the last two decades of his life, his inability to pay for health care for his relatives, and so on. For Lacey, there was no evidence “to sustain the notion of Lansky as king of all evil, the brains, the secret mover, the inspirer and controller of American organized crime.” (Lacey, p.558) He concludes from evidence including interviews with the surviving members of the family that Lansky’s wealth and influence had been grossly exaggerated, and that it would be more accurate to think of him as an accountant for gangsters rather than a gangster himself. POPULAR CULTURE
FURTHER READING
(also about lansky and offshore banking and 'the loan back scam')
(also about Lansky and Atlantic city and his Heir apparent Alvin Malnik)
''Lansky''. New York: Berkley Publishing Company, 1971.
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