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Frank Costello: From Street Thug to “Prime Minister of the Underworld
Sep 12, 2025
Who was Frank Costello—the man history remembers as “The Prime Minister of the Underworld”? Born as Francesco Castiglia in poverty-stricken Calabria, Italy, Costello’s journey from hungry immigrant child to the heart of New York’s criminal empire is one of the most gripping stories in Mafia history. 👉 From stealing coins out of vending machines in East Harlem… 👉 To bootlegging fortunes during Prohibition alongside Lucky Luciano, Meyer Lansky, and Bugsy Siegel… 👉 To becoming the political mastermind of the Mafia, with rumored ties even to Joseph Kennedy Sr.… This is the untold story of how Frank Costello transformed organized crime from bloody street wars into a billion-dollar empire with politicians in his pocket. 🚨 Was he just another gangster? Or the real Godfather who shaped America’s underworld from the shadows? Watch now as we uncover: ✅ The brutal poverty that shaped his hunger for power ✅ His rise during Prohibition and the Dwyer-Costello bootlegging empire ✅ The creation of real estate, auto, and “legit” businesses to wash mob money ✅ The secret link between Frank Costello and the Kennedy dynasty ⚡ This is not just history. This is the blueprint of America’s criminal underworld.
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Welcome to our channel. Today we dive into the fascinating life of Frank
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Costello, a man who started his journey in the world of crime under the name
0:10
Francesco Castiglia. He along with his associates formed a
0:16
formidable team during the era of prohibition. Costello, Luciano, Lansky,
0:21
and Seagull were determined to dominate the new market. Their rise to power was
0:27
swift thanks to a cleverly established private bank they called their Greece bank which began with a modest $5,000.
0:35
This fund was entrusted to Costello for optimal utilization. With Costello's connections, they built an extensive
0:43
network of politicians and police officers under their influence throughout Manhattan.
0:48
However, not everything was smooth sailing. Rivalries, particularly between
0:54
Frank Costello and Veto Genevves, began to surface. The late 1920s witnessed the
1:00
reign of Joe Maseria and Salvator Moranzano, the two most prominent mafia
1:06
bosses in New York, whose mutual disdain threatened to plunge the city into
1:11
chaos. The conflict between Maseria and Moranzano's factions escalated, giving
1:17
rise to the violent Costelloa Marza war in New York streets. Although Costello
1:23
disapproved of the war, seeing it as a hindrance to business, he was deeply involved in the unfolding events.
1:30
Stay tuned as we explore more about Frank Costello's life and his impact on
1:35
organized crime in New York. For him, it was pointless. Such a conflict could
1:42
only harm business. Since peace was not an option, they had only one solution
1:48
left. Plot against Joe, the boss, to end the war once and for all. Luciano said,
1:54
"We knew we would eventually get rid of the old-timers and their ideas. It was
1:59
just a matter of choosing the right moment. We had to take out those old fossils to clear the path. The new mafia
2:07
guard, which included Frank Costello and his associates, finally succeeded in
2:13
eliminating the old dawn. Their story was just beginning.
2:18
Maseria and Moranzano were no longer around.
2:23
Frank Costello and his friends could now organize the underworld as they saw fit.
2:28
They had cleaned house by spectacularly assassinating the two major bosses of
2:34
the New York mafia along with over 40 other old school gangsters within 24
2:40
hours of Morenzano's Moranzano's murder. The Castella Marza war was a thing of
2:45
the past. Peace was now restored in New York. After eliminating the old-timers,
2:52
Luciano emerged as the main mafia boss of the city. While achieving the title
2:57
of Capoiticappi was an option for him, he preferred to forget it for the time being. He
3:03
believed such a position would only cause trouble among the families and make him an immediate target for anyone
3:09
looking to take his place. Still, by the early 1930s, his position within the
3:15
underworld was dominant. Much like Costello's, who also saw a change in
3:20
status during this period. As part of the Luciano family, one of New York's
3:25
five families, he became Ly's consiglier. In other words, his adviser,
3:31
which was the number three position in the mafia hierarchy. Veto Geneovves was
3:37
the number two, serving as the under boss. With the conflicts over, it was time to get back to business. Making
3:44
money was all that mattered to the mobsters at that time. In this regard, Frank was an excellent adviser, the one
3:51
who brought in the most for the Luciano family, adept at making a fortune without violence.
3:58
Other mobsters recognized Costello's political acumen and often sought his advice and assistance. Through his
4:04
connections, Costello was able to help his peers amass wealth and avoid prison.
4:10
two critical aspects of a mobster's life aside from mere survival. During this
4:15
time, he earned the title prime minister of the underworld, a role he embraced
4:21
and was well suited for. As the 1930s began, prohibition was nearing its end.
4:28
The prosperous 1920s had given way to the economic turmoil of Great Depression.
4:34
Prohibition had made Costello and his friends exceedingly wealthy through bootlegging, a trade that had catapulted
4:41
them to significant criminal heights. However, all good things come to an end,
4:47
and so did prohibition on December 5, 1933.
4:52
This event forced the mafia to diversify its operations. Costello decided to venture into
4:59
gambling, particularly slot machines. By the late 1920s, he had already
5:05
anticipated the end of prohibition and the legalization of alcohol consumption.
5:11
Seeking a new lucrative racket, he chose gambling, focusing on slot machines, an
5:17
untapped market in New York at the time. To expand this business, Costello teamed
5:22
up with one of his closest friends, Philip Dandy Phil Castell. Together they
5:28
built a gambling empire, flooding New York with approximately 5,000 slot machines placed in bars, restaurants,
5:36
cafes,armacies, gas stations, and bus stops,armacies, gas stations, and bus stop. Costello and
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Castell quickly became the new gambling kings in New York, which greatly benefited the Luciano family they worked
5:52
for. Thanks to Costello's political connections, their operation ran smoothly. Frank simply had to pay off
5:59
some highranking officials and problems were swiftly resolved. However, sometimes slot machines were
6:06
confiscated. A policeman from that era recalls working under an honest police captain who would bring in two or three
6:14
machines to the station daily. Costello was furious. One day he confronted them
6:21
asking how come I can pay everyone except you. The policeman responded that
6:26
he should take it up with the captain who then threw Costello out. The gambling market expanded further for
6:33
Costello after Arnold Rothstein, one of his mentors who dominated illegal betting in New York was assassinated.
6:41
Rothstein's extensive gambling empire was up for grabs and Costello took over,
6:47
appointing his friend Frank Ericson, a notorious bookmaker, to run the operation. Within a few months, Ericson
6:54
became the top bookmaker in New York, managing the entire business while Costello collected his share of the
7:01
profits, further expanding his gambling empire. Then a new figure emerged to
7:07
disrupt their activities. On January 1, 1934,
7:12
Fiorela Lagardia was sworn in as the new mayor of New York. Lagardia, as his name
7:19
suggests, had Italian origins. Unlike Costello, Luciano, Genev, and others, he
7:26
entered politics to enforce order. Lagardia's most distinguishing trait was his intense hatred for gangsters. He
7:33
despised them so much that minutes after being sworn in, he ordered the arrest of
7:38
Lucky Luciano, the most influential mafia boss in the city. But Luciano
7:44
wasn't Lagardia's only target at that time. He also had his sights set on Costello, who was the undisputed
7:51
gambling king in New York. Lagardia detested gambling, believing it was one
7:56
of the vices the city needed to eliminate. He even declared on the radio, referring to Costello and his
8:03
associate Ericson, that they were major problems needing resolution.
8:08
Consequently, Costello became one of the new mayor's primary targets. Laggardia
8:14
instructed the police to harass them by any means necessary. A young police lieutenant from that era recalled being
8:21
ordered to evict Costello and Ericson from the Waldorf Historia, the luxurious hotel where the two men resided. The
8:29
lieutenant initially spoke politely to them. Ericson complied immediately and wasn't seen again after being told to
8:35
sweep the floor. However, dealing with Costello was another matter. He continued showing up daily despite being
8:42
told repeatedly, "You are no longer allowed here." Costello would calmly
8:48
respond, "You won't see me here tomorrow." But the next day, he would be back. This pattern repeated for some
8:55
time, with Costello promising each day that he wouldn't return the next, only
9:01
to show up again. One day, losing patience, I finally snapped and said,
9:07
"Listen, you scoundrel. The next time I see your ugly mug, I'm going to punch you. I told you not to set foot here
9:13
again." He remained perfectly impassive. After all, I was just a kid at the time,
9:20
and he was already a big shot. He simply looked at me as usual and said he
9:25
wouldn't come back the next day. 24 hours later, he was there right on time.
9:31
Obviously, this routine didn't sit well with Lagardia, who decided to dismantle Costello's entire slot machine operation
9:39
in response. The New York police were instructed to seize all the slot machines they could find, and Lagardia
9:45
personally oversaw their destruction. It was a significant blow to Frank Costello, who had to abandon his
9:51
flourishing business, at least in New York. However, it was likely that his slot machines would reappear in another
9:59
region of the United States, a place where he could operate without trouble, and where the governor would welcome him
10:05
with open arms. The opportunity in Louisiana was indeed about to present itself for Frank. With his slot machine
10:12
business in pieces, Costello wasn't left destitute. Diversifying his activities and
10:19
investing in real estate allowed him to live the life of a wealthy reentier. Money was not something he lacked. Yet,
10:26
he was about to become even richer thanks to an unexpected business opportunity. The slot machines that had
10:33
been chased out of New York were gathering dust in warehouses in New Jersey. Frank Costello was sitting on a
10:40
gold mine, but unfortunately he couldn't take advantage of it. Then a miracle
10:47
occurred through a man named Huer Pierce Long, the governor of Louisiana, who
10:52
extended an invitation to Costello and his associates, saying, "Come down south
10:58
and continue your slot machine business in exchange for tens of the proceeds." At that time, Huie Pierce Long was one
11:06
of the most eccentric figures in American political life. In Louisiana,
11:11
his word was law. an entire state that he controlled completely.
11:17
One day, Hua Pierce Long, the governor of Louisiana, invited Frank Costello and
11:23
his associates to move south and continue their slot machine business in exchange for tens of the revenue. The
11:31
exact circumstances of their meeting are unclear, with several versions of the story circulating.
11:37
One version suggests Costello helped Long in a blackmail operation, granting Costello Carte Bloune to develop his
11:44
slot machine business in New Orleans. Another account from a Louisiana politician recalls that Long was saved
11:52
from a beating in a New York club bathroom by Costello or one of his
11:57
friends, leading to their friendship. A third version claims Long, recognizing
12:02
the profitability of slot machines, sought out Costello, the best in the business. Costello himself stated that
12:09
Long invited him to install the machines to raise funds for Louisiana's charitable organizations.
12:17
Regardless of how they met, the crucial point is that Frank Costello and his
12:22
loyal associate Phil Castell found refuge in Louisiana to continue
12:27
their lucrative slot machine business. By spring 1935, they had installed
12:33
nearly a thousand machines in New Orleans, which became an immediate success. Castle managed operations
12:40
locally, while Costello made the key decisions from New York. An intriguing
12:45
anecdote from this period recounts the only act of violence Costello ever committed. When it was discovered that a
12:52
prominent member of their organization was stealing money, Costello consulted Costello, who decided to handle the
12:59
matter personally. Upon his arrival in New Orleans, Costello called a meeting of the entire organization. During the
13:06
meeting, he invited the thief to join him on stage, then struck him with a large wrench in front of the stunned
13:13
audience. Costello explained that the man was a thief, and that his punishment should serve as a warning to anyone
13:19
considering similar actions. For Costello, violence was not an end in itself, but a means to prevent the theft
13:27
and more severe violence. He later claimed this was the only violent act he ever committed, done out of necessity
13:34
rather than enjoyment. Costello and Castell thrived in New Orleans, earning millions of dollars
13:41
between 1935 and 1935 and 1937.
13:46
They shared their substantial profits with the local mafia boss Carlos Marcelo, ensuring smooth operations.
13:55
This venture brought significant wealth to the Luciano family, continuing for decades until Castell's death in the
14:01
1960s. During this time, Costello's influence in New York remained strong. He was a
14:08
master of political influence and corruption, placing his men in significant political positions,
14:14
electing judges, and even influencing mayoral elections. His power within the
14:19
Tam Hall political machine was immense, allowing him to navigate and control New
14:24
York's political landscape effectively. Things were going very well for Castello
14:29
and Costel in New Orleans. They were the kings of slot machines, earning $25
14:37
million between 1935 and 1935 and 1937. This significant sum of money
14:45
had to be shared with the local mafia boss, Carlos Marcelo, as it would have been impossible to do business in the
14:52
region otherwise. Gambling in Louisiana brought millions of dollars to the Luciano family thanks
14:58
to Costello and Castell. This venture continued for decades until Castell's death in the 1960s.
15:06
Now you might be wondering how did Frank Costello manage to amass such wealth and
15:12
act with impunity for so many years. As we have seen previously when it came to
15:17
influence peddling, Costello was an expert. Corruption and influence peddling were his specialties. It was in
15:25
New York where his political influence was immense that he wielded his full power, appointing his men to important
15:33
political positions. He did it. Electing judges. He did that, too. A former
15:40
member of Tamony Hall, the political machine of the New York Democratic Party, where Frank wielded significant
15:46
influence, recalled, "During the 1940s, I was involved in political dealings
15:52
with the main figures of Tam Hall. Connected to both the Democratic and Republican parties. My position on the
15:58
electoral board gave me the opportunity to meet all sorts of politicians, various officials, judges, district
16:05
attorneys, members of Congress, party leaders, and elected officials with
16:11
fantastic power. All were politicians, regardless of what some might think,
16:18
including the judges, as it was impossible to become a judge without first becoming a politician.
16:24
Despite my naivity, it didn't take long for me to understand how things worked.
16:30
Some district leaders were omnipotent. Others, no matter how intelligent or cultured, were considered insignificant.
16:38
To be someone in the New York political world, you needed backing. And that backing,
16:43
and that backing came from the underworld. Who were the big shots of the underworld at that time? And how had they gained
16:51
such power? In the 1940s, the top gangsters were those who had proven
16:56
themselves 20 years earlier during the golden age of bootlegging. They had control over the numbers rackets,
17:03
illegal betting shops, and all other rackets. After a few months in the job, I
17:09
realized that every district leader was backed by a particular group. These groups constantly made and broke
17:15
alliances who orchestrated all these combinations. certain Frank Costello.
17:21
When he needed something, he didn't go to the district leaders, but to the gangsters who controlled them. These
17:27
gangsters would then have a little talk with their proteges, telling them, "By the way, we are interested in Joe Blow
17:34
or Mr. Black, and we will need your help on election day. Don't forget that
17:40
throughout the year, we have provided you with donations and other contributions.
17:46
If your newspapers survive, thanks to whom and your men who pays them
17:51
generously if not us. Costello was behind all these combinations. He was
17:58
the boss, the grand boss of the district leaders. The testimony continues as he
18:03
talks about the inauguration of William Odwire, the successor of Lagardia as mayor of New York. Of course, Costello's
18:12
influence took a hit with the arrival of Lagardia as mayor of New York. They
18:17
controlled the numbers rackets, illegal betting shops, and various other
18:22
rackets. After a few months of activity, I realized that each district leader was
18:28
backed by a specific group. These groups would continuously form and break
18:34
alliances. Who orchestrated these combinations? a certain Frank Costello. When he needed
18:41
something, he didn't approach the district leaders, but the gangsters controlling them. These gangsters would
18:48
then have a talk with their proteges, telling them, "By the way, we are
18:53
interested in Joe Blow or Mr. Black, and we will need your help on election day.
18:59
Don't forget that throughout the year, we have provided you with donations and other contributions.
19:05
If your newspapers survive, thanks to whom? And your men who pays them
19:10
generously, if not us, Costello was behind all these combinations.
19:16
He was the boss, the grand boss of the district leaders. The testimony continues as he talks about the
19:23
inauguration of William Odoire, the successor of Lagardia as mayor of New
19:28
York. Of course, Costello's influence took a hit with the arrival of Lagardia
19:34
as mayor of New York. But when Odo succeeded him, Costello truly had a free
19:40
hand. It said that it was thanks to him that Odo became the official candidate of the Democratic Party. I don't know if
19:48
that's true, but I do know that Odo had some difficulty getting his candidacy accepted as some party leaders had
19:55
issues with him. Regardless, he went to see Costello, knowing he would find support and assistance. He wanted the
20:02
mayor's seat at all costs, and to get it, he needed Costello's help. From that
20:08
point on, Frank Costello held court every morning with politicians and underworld figures. And this was common
20:15
knowledge. These individuals would visit him while he was being groomed at the barber shop in his luxurious residence
20:21
at the Waldorf. Furia, Lucky Luciano recalls this habit. He would come out
20:26
with a face as smooth as a baby's bottom. I don't understand how he could endure getting manicured every day of
20:33
the week, not to mention the rest. I believe Frank was completely crazy. I
20:39
would never let anyone get a razor blade so close to my face. During this time,
20:44
Costello was operating secretly in New York's political world. No one could really prove that he was pulling the
20:50
strings at Tam Hall. That is until Frank Hogan, the new Manhattan District
20:56
Attorney, decided to wiretap Costello's home phone. It was mid 1943. In one
21:03
call, Costello spoke with Thomas Aurelio, a judge aspiring to be a
21:08
candidate for the New York Supreme Court, helping a judge reach the New York Supreme Court. This proved
21:14
Costello's involvement in New York politics. This was not good news for the prime minister of the underworld. This
21:22
irrefutable proof that the mob influenced the judiciary was a serious matter leading to Costello being called
21:29
to testify in an investigation into mafia influence in politics. Fortunately
21:36
for him, it ended there. But the publication of the conversation in newspapers across the country sparked a
21:43
wave of outrage, forcing Frank to lay low in the political arena for a while.
21:50
Caution was now the order of the day. Meanwhile, significant events were
21:55
unfolding within the underworld. Lucky Luchiano, Frank Costello's boss, associate, and friend, was sentenced to
22:03
a lengthy prison term, 30 to 50 years for forced prostitution. Behind bars,
22:09
Luciano could no longer perform his duties as the head of the family, which had been the most powerful in New York
22:16
before his incarceration. This created a power vacuum, compelling Luciano to find
22:21
a replacement. With Vito Geneovves, the family's under boss, having fled to
22:27
Naples to avoid a murder charge, Luciano logically chose Frank Costello, his
22:32
conciglier. Thus, in 1937, Costello became the most powerful figure
22:38
in the mafia, assuming the role of the boss of the Luciano family. Frank
22:44
Costello, who had always tried to maintain the appearance of a respectable businessman while keeping a distance
22:51
from the underworld, found himself at the top of the mafia hierarchy. This new
22:56
position was somewhat paradoxical for him. Once in power, Costello imposed his
23:02
philosophy on the mafia. As a skilled diplomat, he diffused potentially explosive situations, resolved problems
23:10
without resorting to violence, and established a much needed peace. A
23:15
notable example of his approach was the case of Willie Moretti in 1943.
23:21
Moretti, a close friend of Costello and his main lieutenant in New Jersey, began acting strangely and revealing secrets
23:29
that should have remained within the family. When other organization members demanded Moretti's elimination, Costello
23:36
intervened. Moretti was suffering from a mental illness caused by syphilis which
23:41
was worsening his condition. To protect Moretti, Costello ordered him to take a vacation on the West Coast, defusing
23:48
tensions and saving his childhood friend from death. Unfortunately, this was only
23:54
a temporary reprieve. When Costello took over the Luciano family, it had about
24:00
450 members. Unlike the bosses of New York's other four families, Frank
24:06
distanced himself from daily activities, delegating operations to his lieutenants, including
24:13
Anthony Stro, Alias Tony Bender, who controlled Greenwich Village, Mike
24:19
Copella, known as the Trigger, who operated in Harlem. Joe Adonis who ruled
24:26
over Brooklyn, Willie Moretti in New Jersey. Anthony little Auggie Pisano
24:32
Carfano who had influence over the Upper Bronx. Mike Miranda who managed the east
24:39
side. Meanwhile, Vito Genevves had fled to Italy to escape American justice due
24:46
to a murder he was involved in. Genevves stayed in Italy for a while before returning to New York in mid 1946
24:54
where his return was celebrated. Before Luciano's arrest and his flight to Italy, Veto had been higher in the mafia
25:02
hierarchy than Costello. When Veto Genevies returned to the scene, a grand reception was organized
25:09
in his honor, attended by all the prominent mafiosi of the east coast.
25:14
Frank Costello was present and personally guided Genevies to the place of honor at the head of the table. Genev
25:22
was a formidable character feared by many. His mere presence could send
25:28
chills down your spine. A witness once recalled seeing him during an arrest. I
25:34
had the chance to look him in the eyes, and I'll never forget that moment. His gaze was completely expressionless,
25:41
devoid of any trace of pity. They were the eyes of a man determined to kill if anything or anyone stood in his way.
25:49
Upon Genevves's return, Frank treated him with great caution and respect. He
25:56
ensured that Veto did not feel sidelined during his absence and gradually handed over control of the family without
26:02
protest. Despite this, Veto was dissatisfied. Having noticed the power
26:07
Frank had amassed while he was in Italy, he became envious of Frank's political
26:13
connections, immense fortune, and influence within the underworld. This
26:18
jealousy was intolerable for Veto, as later highlighted by Joseph Falachi in
26:23
one of his testimonies. Veto had asked Tony Bender to keep control of the family for him during his
26:29
absence. In summary, Don Veton's return did not bode well for Costello. By the
26:36
end of 1946, Lucky Luciano, who had been deported to Italy, arrived in Cuba to organize a new
26:44
summit for organize a new summit for organized crime. With the help of his
26:49
loyal friend, Mayor Lansky, he prepared a meeting in Havana attended by the
26:54
biggest names in the American underworld. Luciano, determined to regain control of the organization from
27:00
which he had been ousted in 1936, took the lead. Despite being sidelined for
27:05
years, Luciano still had a significant influence over the family's decisions.
27:11
At this point, Frank Costello had risen to the rank of a boss, but he remained Ly's representative, overseeing
27:18
operations from a distance. Now, with Lucky less than 150 km from the American
27:23
coast, he aimed to reclaim his position. The Havana conference took place during
27:29
the week of December 22, 1946. The guest list included some of the most
27:36
influential mobsters from New York. There were mayor Lansky, Frank Costello,
27:42
Veto Genevves, Joe Adonis, Albert Anastasia, Anthony Carfano, Mike
27:48
Miranda, Joseph Bonano, Tommy Luxees, Joe Profi, and Joseph Maglo.
27:54
Representing New Jersey were Willie Moretti and Longis Wilman. Chicago sent
28:00
Tony Aardo and the Fetti brothers who brought along the Fisceti brothers who brought along the famous star Frank
28:07
Sinatra. From New Orleans came Carlos Marcelo and Phil Castl. Santo Traficante
28:14
Jr. represented Florida. Mo Dalitz came from Cleveland. Joseph Stashia from Las
28:20
Vegas. And Stephano Magadino represented Buffalo. After celebrating, the mobsters
28:28
began discussing business, eventually bringing up the case of Bugsy Sigil. A
28:33
few years earlier, the mafia had sent Sieil to the West Coast to oversee the construction of a casino in Las Vegas
28:40
called the Flammo. Bugsy had convinced Castello to invest in the project, prompting other mobsters to follow suit.
28:48
However, the project had gone over budget by several million dollars and faced significant delays, frustrating
28:54
the underworld investors who were eagerly awaiting their returns. Seagull had disregarded orders and found himself
29:01
in a precarious situation, especially since he and his mistress, Virginia Hill, were suspected of skimming money
29:08
from the project. The Havana Conference provided an opportunity for some to call
29:13
for his elimination. Bugsy was undoubtedly in danger, but Costello also faced significant risk. He
29:21
had persuaded his peers to invest in the project, which placed him in a similarly perilous position. Some attendees of the
29:28
meeting personally complained to Lucky about the lot money, further complicating Costello's situation. Some
29:35
even wanted Costello dead as punishment. Although Luciano was his old friend, it
29:41
was difficult for him to contain the irritation of the disgruntled investors. Money was one of the most important
29:47
things in the mafia, and it was not to be taken lightly. Lucky told Costello to
29:53
find a way to recover the money one way or another. Otherwise, I won't be able
29:59
to hold them back. And what will happen to Bugsy? I can't help him. Eventually, Frank
30:07
survived the flamingo fiasco by recovering the lost money. For Bugsy Sieel, however, it was a different
30:13
story. He was coldly gunned down in his Beverly Hills home on June 20, 1947.
30:21
Back in New York, Frank discovered how much his name had been tarnished since the phone recording scandal, which had
30:27
permanently placed him in the spotlight. Despite his efforts to appear legitimate to the public, he was now labeled a
30:34
gangster due to his alleged connections with Lucky Luciano in the mafia, his status as the king of slot machines, and
30:42
his past as a significant bootleggger during Prohibition. All these factors
30:47
did not help to bolster his image as a respectable businessman. However, the
30:52
worst was yet to come for Frank, who was soon to testify in an inquiry commission
30:58
broadcast live on television. The entire nation was about to learn who
31:03
the prime minister of the underworld really was. In 1950, television was
31:09
becoming increasingly popular in American households. For the general public, it was an opportunity to hear
31:16
about organized crime and its harmful influence in the country. for the first time thanks to an inquiry commission
31:23
known as the Keover Commission named after its chairman Estis Kafova. This
31:29
commission revealed how deeply America was infested with the mob. Many Americans watched this drama unfold
31:36
live, making it one of the first major events to be broadcast on television.
31:42
The kifover commission hearings took place in 14 cities across the United States, including New York, where Frank
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Costello was a prominent figure. On March 13, 1951,
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at 10:30 a.m., the courtroom at Foley Square in New York was packed with
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journalists and spectators. The moment everyone had been waiting for arrived when Frank Costello stepped up to the
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witness stand. Senator Halley, have you been known by any other names besides
32:10
Frank Costello? Costello? Well, when I was a child, I think I was
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called by my mother's maiden name, Savario. Senator Halley, have you used any other
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names? Costello? Not that I can remember. Senator,
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but you did go by the name Savio. Costello? Yes, possibly when I was a
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kid. Senator Halley, it seems to me that you use that name even after childhood.
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Am I correct? Castello, indeed. Senator Halley, can you explain what you mean
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when you say it's possible you use the name Seario?
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Don't you know for certain that you did, Costello? Yes, it's possible. Senator
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Harley, saying it's possible doesn't make sense. You either did or you
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didn't. Costello, I apologize. I didn't get an advanced education like you, Mr.
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Harley. Senator Harley, you were convicted under that name, correct?
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Costello. Yes, that was about 35 or 36 years ago. Senator Halley then shifted
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the focus to establish that Costello was indeed one of the mafia bosses. He
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brought up the case of Willie Moretti, who had also been wiretapped by the authorities.
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Senator Harley, wasn't it because he tended to talk too much that you sent him to California?
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Costello? Absolutely not. I might have suggested he take a rest somewhere in
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Florida, California, or elsewhere. What authority would give me the right to
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assign him to a specific location? Senator Harley. But you were his boss,
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weren't you? Costello. Boss of what? Senator Harley. Didn't he ever call you
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on the phone saying, "Hello, boss." Costello. I called him boss, too.
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Senators proceeded to ask Castello additional questions about his involvement in alcohol trafficking
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during Prohibition and the extent of his fortune. The following day, Senator Hi
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continued his questioning. The New Orleans affair was mentioned, but nothing conclusive came from it. Senator
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Halley was relentless, giving Costello no restbite, which led to signs of fatigue in Costello. His voice grew
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weaker and more grally. The interrogation was postponed to the next day. The next day, Costello's lawyer
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addressed Senator Kaf, the commission's chairman, stating that his client was
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suffering from a throat inflammation and laryngitis. The lawyer claimed that Costello had reached the limits of his
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physical and mental endurance and could not continue testifying under such conditions. He requested that Costello
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be allowed to defend himself and have the opportunity to do so. However, the
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lawyer's request for an adjournment was denied and the senators ordered the interrogation to proceed. The courtroom
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was shocked when Frank Costello abruptly left the COVID commission. This act alone could have led to his arrest and
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imprisonment. A restaurant manager where Costello often dined recalled that evening
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vividly. The manager chastised Costello, saying, "Why did you do that? You had
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the whole country behind you. You can't just walk out on a Senate committee like that." Costello responded, "I had to. I
35:47
needed to know what Odo was going to tell them." It was well known that Odoire and Costello met several times a week.
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Everyone knew except the commission which believed they had only met once.
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Frank wanted to ensure that Odwire would hold up under the pressure. On March
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19th, Costello returned to the witness stand. Senator asked if he could explain
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how he managed to influence these politicians. Castello replied, "It's hard to explain, Mr. Halley. I've spent
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my entire life around Manhattan. I've known these men for a long time, and they have gradually come to trust me. If
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I suggest someone for a particular position, they tend to follow my advice.
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It's just how things work. It's not something that can be easily explained.
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Senator Hi, things are a bit more complicated than that, don't you think, Mr. Costello?
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Costello, I'm not the only one who has lived my entire life in New York. Far from it. Senator Halley, you stated to
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the commission that you have never stolen in your life, if I'm not mistaken. Is that correct? Costello.
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Yes. Senator Halley, are you affiliated with any political organization?
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Costello? No. Senator Harley, you never been a member
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of a party? Costello? No. Senator Halley, I find it hard to understand how
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under these circumstances you could have influenced the election of Tamonn Hall officials as you did in 1942.
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Can you explain to the commission the nature of the influence you wield over the influence you wield over these
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politicians and why they trust you? Costello, I don't think I can explain
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that. Mr. Halley, Senator, are they afraid of you? Costello, I don't see why
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they would be afraid of me. Senator Halley, answer my question. Costello,
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you know very well they don't fear me in any way. Senator Harley, do you know
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Judge Saves? Costello, I've had the occasion to meet him. Senator Harley, he's more than just
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an acquaintance. He's a good friend of yours, isn't he? Costello? Yes. Yes, I
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can say he's a friend. Senator Halley, if you wish, I can present recordings of
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your telephone conversations to the commission. Senator Halley, I can make life
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difficult for you, Mr. Costello. Costello, you've been making life
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difficult for me since the beginning of my interrogation, Senator. The next day, Senator Hi questioned
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Costello again, this time about his connections with mafia leaders. He was
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asked about his meeting with Lucky Luciano in Havana, where he had been seen with him. Senator Halley, tell me
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about this meeting. Costello, I was in Miami at the time and decided to spend a
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day or two in Cuba. As I was leaving the hotel to go to the airport, I ran into Charlie Luciano.
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Senator Halley, he accompanied you to the airport. Correct. Costello. Yes.
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Senator Halley. And what did you talk about? Costello. Oh, various things. Our
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health Cuba. Just small talk. Senator Halley. Did you discuss business?
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Costello? No. Senator Halley? Gambling?
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Costello? No. Senator Halley, are you sure you didn't talk about drug
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trafficking? Costello, no. That's ridiculous, Senator.
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Senator Tobay then asked Costello to reveal why he sought American citizenship.
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For Costello, the ordeal was finally over. However, the treatment he endured
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during the commission made him furious, and he harbored hatred for Senator Kafova until the end of his days. He
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believed the senators were hypocrites, targeting him only to advance their political careers. Frank Costello later
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shared an unusual anecdote from the hearings. Senator Estis Kova had
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approached him to request a private meeting. Frank Costello had become the most famous gangster in the United
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States after his appearances before the Cafover commission. This unwanted
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exposure reduced his political influence within Tmeny Hall, although it remained
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significant. Politicians now avoided being seen with him. Despite the
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government's relentless focus on Costello, believing he was the key figure in organized crime, the real
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power actually lay with his rival, Veto Geneovves. By the end of 1951,
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by the end of 1950 one, Don Veton was the new head of the Luciano family. Although Costello still
40:54
held some stature within the organization, he had been demoted to an advisory role. Veto was now the boss. He
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was not the boss, but he was not satisfied. He had an ardent and secret desire to become the supreme leader of
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the mafia, a position last held by Salvatore Morenzano in the 1930s.
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To achieve this, Veto knew he had to eliminate potential rivals, including
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Willie Moretti. Seeing Moretti's health deteriorate, Veto Genevves took
41:26
advantage of the situation to eliminate him once and for all. Costello's lieutenant unfortunately was no longer
41:32
in his right mind due to illness which worried the New York mafia bosses. They feared that Willie Moretti might lose
41:39
control and start talking. This was the perfect opportunity for Veto Geneovves
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who did not hesitate to act. He convinced his fellow mafia members that Moretti was a threat to everyone and
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needed to be eliminated for the greater good. Of course, Veto knew that by getting rid of Moretti, he would gain a
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significant portion of his New Jersey empire and diminish Costello's power.
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Moretti's assassination was swift and clean. Frank Costello lost a dear friend, and his troubles were far from
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over. A year later, he faced legal issues following the CFO Commission
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hearings. Costello was found guilty of contempt of the Senate and sentenced to 18 months in prison. After 37 years of
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avoiding prison, this was a harsh blow for him. He was released in October 1953
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due to a sentence reduction, but soon faced another conviction for tax evasion. After a 2-year investigation,
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the tax authorities sentenced him to 5 years in prison, the harshest penalty.
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At 65 years old, Frank was sent to prison, facing the possibility of spending the rest of his life behind
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bars. This prospect was deeply distressing for him. Fortunately, the
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appeals court later re-examined his case and significantly reduced his sentence.
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Miraculously, Frank was released after only 11 months of detention. His legal
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troubles seemed to be over and he hoped to spend his remaining years in peace.
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However, Vto Genevves was already planning to have him assassinated. Frank Costello started his morning
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ritual by reading the New York Times and drinking coffee. He was particularly
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interested in an article on the front page about a boxing match the previous night.
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Ray Sugar Robinson had fought Gene Fulmer, winning by a knockout in the fifth round. This victory was favorable
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for Costello, who had placed a large bet on Robinson, earning him a substantial
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sum of $225,000. At 10:30 a.m., Frank headed to the
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Waldorf Histori to visit the barber shop. This was not just a place for grooming. It was where he met with
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politicians from Tamonn Hall and his associates from the underworld. Unlike
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other crime bosses, Frank moved without bodyguards and often took a taxi or
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simply walked to his meetings. By 6:00 p.m., Frank, his wife, and a group of
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friends arrived at an upscale restaurant on East 55th Street. They enjoyed a pleasant evening, and around 10:00 45
44:21
p.m., Frank decided to leave, allowing his wife and friends to continue their night. Meanwhile, two black limousines
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had parked in front of his residence. Three men inside were waiting, occasionally, checking their watches and
44:35
keeping an eye on the entrance. At 10:55 p.m., a taxi dropped Frank off at his
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home. As he entered his building, he noticed someone following him, but didn't pay much attention. The man, tall
44:48
and muscular, seemed in a hurry and preoccupied. Frank approached the elevator when
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suddenly he turned around and heard, "This one's for you, Frank." A gunshot
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followed. The bullet fired at close range, grazed his skull just below the
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right ear. Miraculously, Frank survived, suffering only a minor injury. Though
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blood was pouring from his wound, he was quickly taken to the hospital. Upon
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arrival, the police bombarded Frank with questions, especially about his attacker's identity. Frank remained
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silent, adhering to the OMA code. The police then searched his belongings,
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finding a piece of paper with intriguing numbers. They took Frank to the station for further questioning, urging him to
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be reasonable. You know very well we will get to the bottom of this anyway. Costello, I
45:43
refuse to answer your questions without my lawyer present. Is this about the Las Vegas casino?
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I already told you I refused to answer. Come on, admit that you're the owner of
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that casino, Frank. Since when does the law allow you to search people's pockets
46:03
without a warrant? Hours of questioning led nowhere for the investigators. But
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who could the attacker have been? Frank had an inkling. Instinctively, he knew
46:14
that Veto was behind this. Veto was the only man capable of ordering his
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execution. As a potential rival for the supreme title of boss of all bosses, it
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wasn't surprising that Veto wanted him eliminated. And he was right. The
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attacker was none other than Veto's driver and bodyguard, Vincent the Chin Giganti, who turned himself in to the
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police a few weeks later. Costello decided to stay silent, especially
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during Vincent Giganti's trial, where Frank stubbornly refused to identify his attacker, showing loyalty to the mafia
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once again. Veto's henchman was thus found not guilty. The case was closed.
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However, the failed assassination put Veto in a delicate situation. Knowing he
47:03
had to calm things down, Veto decided to organize a meeting with Frank in New
47:08
Jersey. Lucky Luciano recalled the meeting. Puciano, after Giganti's
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failure, Geneovves and Costello met at Longi Wilman's place in New Jersey.
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Frank told me everything afterward. Veto proposed a compromise because both of them were in a tight spot after what had
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happened. He told Frank, "Don't move. Don't complain to anyone." And above
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all, don't go to Charlie Lucky with this story because if you do, you'll start a war. In that case, I promise the first
47:40
dead man will be you. So, they made a deal. Frank had no choice. He promised
47:46
to forget everything, and Veto agreed to let him retire with his games and properties.
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However, many in the mafia did not believe Veto's claim that he wanted to eliminate Costello because he had become
47:58
an informant for the government. Albert Anastasia, an ally of Frank
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Costello and head of the former Mangano family, believed that Veto Genevves had
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committed a serious violation of mafia laws. Ordering the murder of Costello without first seeking approval from the
48:15
commission was seen as a step too far. This led to escalating tensions,
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significantly deteriorating relations between the Genevies and Anastasia families. At that time there were fears
48:29
of a new war breaking out in New York. Veto Genevves became alarmed by the news
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that Frank Costello and Albert Anastasia had reportedly met in secret. Fearing
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for his life, Veto discreetly reached out to Carlo Gambino, one of Anastasia's
48:46
lieutenants. During their meeting, Veto proposed that Gambino could replace Anastasia as boss
48:54
in exchange for eliminating him. Ambitious and aware that he might
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eventually end up on Veto's hit list, Carlo Gambino agreed to the proposal.
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The rest is history. Another of Costello's friends killed due to the
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ruthless Veto Genevves. This death had a profound impact on
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Frank. Costello knew he would be next. His lawyer recalled being summoned
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shortly after Anastasia's murder. Upon arriving at Frank's apartment, he found
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Costello and Tony, Anastasia's brother, embracing and sobbing. It was the first
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time the lawyer had seen Frank cry. With most of his allies out of the picture,
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Joe Adonis and Lucky Luciano had been deported to Italy, and Willie Moretti
49:42
and Albert Anastasia were dead. Frank found himself alone, facing veto, who
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now had a clear path to the supreme leadership he craved. As Costello's lawyer stood at the door, Frank looked
49:55
at him and quietly said, "This means I am next." For Costello, the best
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solution was to step back and seek peace with Vito Genevves. With the substantial
50:07
wealth he had accumulated, he could afford to live in luxury for the rest of his life. Therefore, it was wiser to
50:14
withdraw and avoid further conflict. Veto agreed to Costello's request for
50:19
peace, but humiliated him by stripping away his income from Las Vegas, Florida,
50:25
and the Caribbean. He also demoted Costello to the rank of a soldier in the mafia and demanded that he publicly
50:32
vowed to stay out of any rackets for the rest of his life. These harsh conditions
50:38
were accepted by Frank. He later confided to a friend that he had misjudged Veto. his friend recalled, "As
50:46
far as I can remember, he didn't change his habits and didn't seem affected by the blow. However, I never heard him
50:53
mention Genevese's name in public again, which used to come up frequently in conversation.
51:00
It was as if he had erased him from his memory." With Castello sidelined, Veto
51:06
aimed for the title he desired. He organized a conference in Appalachin, New York, inviting all the major mafia
51:13
bosses in the country to crown him Capo Ditati Capi. However, things did not go
51:20
as planned. The Appalachin Conference turned into one of the biggest fiascos in mafia history when a police raid
51:27
forced the attendees to flee into the woods. Over 100 people were arrested,
51:33
including several high-ranking mobsters, and Veto's prestige took a significant hit among his peers. Veto's troubles
51:40
didn't end there. The following year, he was arrested and implicated in a drug
51:46
trafficking case, likely orchestrated with the government's help by Luciano, Costello, Lansky, and Carlo Gambino to
51:54
end Veto's reign. Genevies was sentenced to 15 years in prison, which he served
52:00
at the federal penitentiary in Atlanta. Ironically, Frank joined him there later due to new legal troubles, having to
52:07
serve the remainder of his sentence for tax evasion. With both Frank Costello
52:13
and Veto Genevves in the same prison, tensions inevitably rose. Prisoners
52:18
believed Veto was behind Costello's tax problems, nearly causing riots and endangering Veto's life. since the
52:26
prison lacked sufficient guards for protection. To calm the situation, Frank
52:31
called his lawyer. Upon arrival, the two had a discussion. Frank explained the
52:37
situation. The situation is too perilous. Everyone is panicking. I'm trying to
52:42
tell them that Veto is not involved, but they won't listen. I want us to meet in
52:48
the director's office with a photographer to capture us shaking hands. The meeting was finally arranged.
52:54
Veto and Frank met and tensions eased. Frank's lawyer recalls Veto saying at
52:59
one point, "Between you and me, Frank is quite a character. He's so smart that I
53:05
always wonder where he's going with everything he says. Then I realize he's right, and I'm the fool in the story. He
53:12
even warned me against holding that meeting at Appalachin, and I didn't listen." Thanks to Costello's diplomacy,
53:20
Veto was able to save himself. In doing so, Frank also ensured his own protection upon his release from prison.
53:29
After all, he had helped the head of the Genevese family. Released in June 1961,
53:35
Frank was able to retire and live peacefully as he had wanted. No longer a
53:41
threat to the FBI, he seemed finally out of trouble. Along with the immense
53:46
fortune he had amassed, his friends and his wife, he had little to complain
53:51
about. However, the world he had known had changed significantly. His longtime
53:56
friends were no longer around. It was the end of an era, an era extremely prosperous for the underworld and all
54:03
its actors, including Frank, who undoubtedly left an indelible mark on
54:08
mafia history. Frank Costello was a unique gangster remembered for his
54:14
incredible skill in influence peddling corruption that allowed the underworld
54:19
to establish itself in New York like never before. He will also be remembered
54:25
for his art of diplomacy within the underworld, a quality that helped avoid
54:31
many mafia conflicts. Frank Costello, a notable figure in the
54:36
history of organized crime, came close to achieving his vision of becoming a respectable businessman. However,
54:43
involvement in the Kosan Nostra was a lifelong commitment and Costello was well aware of this. His life came to an
54:51
end due to a heart attack on February 18, 1973 at the age of 82.
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This brings us to the end of Frank Costello's story. I hope you found it informative and that it provided new
55:04
insights into this intriguing historical figure. If you enjoyed this second part, your support through likes and shares
55:10
would be greatly appreciated. Thank you for your continued support and engagement in the comments. I look
55:17
forward to sharing more stories with you soon. Until then, take care and see you next
55:24
time.