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Purple Gang Aka Sugar House Gang — Part 4

96 pages · May 11, 2026 · Document date: Apr 14, 1945 · Broad topic: Organized Crime · Topic: Purple Gang Aka Sugar House Gang · 96 pages OCR'd
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Cash Shared-_ ‘With Adonis And Purple Gang’ Heads Funds to ‘Charities’ Reduced Net; Notes \ For $25,000 Signed . By Frank Costello jHKCG . directly _ VAN ~underw orld figures aS as Adonis, the Lansky broth: ——— ed urple Gang.” documented - proof came tcori-Eeeson's-onteer-wttch wre Taided by by District A Attorney y Frank 3. Hogan May 2 A comprehen- sive chart disclosed that Erickson _ ra dan “anther m members. “aft the Isompine netted: "$685,536.76 Weeti November “fy 1645, .Qctober 31, 1946, in operating {Colo onial_ inn, ‘a notorious ¢ “Bling establishment | in Hallandate, a. Crickson had 5 percent of the ofits, or_ $34,276.94 while the ais share. ‘of 3216 , percent, OF “went to men de- ‘as members — "Purple Gang" in Detroit. ~~ ‘Wants Papers ~ Returned Ail this and more came out in general sessions, where Sol Gelb, \Erickson’s counsel, tried without success to have returned to his client all of the voluminous papers selzed from Erickson's office. Judge John A. Mullen held thle all papers which indicate gambling operations may be retained Hy Hogan, who is conducting a gratid jury investigation of Erickson, Among the ttems seized was a folder -headed “79 Wall Street (Corp. * in which were two prom- fssory notes showing that Frank Costello borrowed $25,000 twige om Erickson, One note s ted November 9, 1946, the othtr intember 23, 1847. Both wete Phyable in one year at the rate @f 4 percent Interest. ot ” | = , . OO “of ~ the” *) to va i) c lattch—custelig — thanked "Frank (Erickson) for check fo the Salvation Army.” The folder also a letter ir George Wolf, Costello's lawyer, to Erickson concerning payment of $10,000 on the November 9, 1046, loan. his folder, as well as two other dqcuments dealing with of! inter ests owned by Erickson and Cos tefio, are yet to be ruled upon b } Judge Mullen. He will decide toq morrow whether these papers, tiges, Georgdy Sadio, and Mert. b (Wertncimer and Ruben Niacewe e latter two were deschibed by, Purple gang, a nolerlous combine .which has been broken up. . Erickson‘s net income, as shown! by his own files, gave these figures: 1948 — $169,819.58; 1947 — $194 _- 841.35; 1946--$194.354.71: 1945-—- $141,562.48; 1944—$48,571.10; 1943. $100,352.10; 1942 — $45,817.1 a 41—$81,126.07 and 1940-357} O87 OF well as a few others, are to be r | “The docttments also containg turned to Erickson, who maintains 'tax returns to Erickson’s employed, they havé nothing to do with his.Which showed they received from tambling activities, i 000 to $4,000 each. There also was a cancelled Erickson check for . In addition to the Colonial Int'go5 000, dated last March 28, which jn Hallandale, 17 miles north of the big-time bookie paid to Good- Miami Beach and 2 miles south of body and Co., a brokerage firm, Hollywood, Erickson, according te The papers also showed that ,his own. papers, had half of a Erickson used various es as gambling joint in Boea Raton, Fla. his own—including Jack¥Lennon, Yast year. The “wins” total w sa New Jersey bookie ntenced | 34247 80 but after ny 4n7F leet tase Pav hanteneal “exnences, Peay eae, fe ee eee rear ior DOOR Making; the net profit was $8024. 80, whi Frankgt trader, beligyed to be -an was splitypelween Erickson a jempioyes and Harr. Mitnards, a one John O'Rourke, each recei 870 a week “dummy? held in ing $4012.48, This was for the year|$100,000. bail as a material wit- nding October 31, 1949. ness In the investigation, According to Erickson’s own’ he rai ‘ - days hedule, the house collected $426, /after Eri efore a 77 and paid out to winners $392,-|Stnate subcommittee in Was §.20 from December 18, 1948, totin Ty cannitted That” he March 17, 1949. From January 12/hils been A bookie t jog to April 10, 1949 — during the] z height of the short season — the'n Boca Raton house took in $754,083+ _. find paid out $689,541 to winners.| While the net income for the! K colonial Inn for the 12-month pe- riod ending October 31, 1946, to- 6 failed §$685.538.76, this was re- duced by $40,760.50 for “charities,” which were not described in court. ' “ ay’ Pa rigos- Erickson’s papers were. read in aie court by Alfred J. Scolti, assisiant Wash district attorney in charge of the . “ee. _ -tackets bureau. woe . Beottl said that Erickson w gonnected with “topnotch unded. Wash. orld characters,” and then h lead off the names of those ut Wash. ad pieces of the Colonial Inn. B des Joe Adonis, whose real name Date: Scotti as members of the Detroit! N.Y. Mirror ——WAT £8 1. u-19 - ~~ ¢ Tolson, 1 _- {¥ 9 - bat oe ial vf / lege f ein a 4 Ni choly oo i 5 if Harbo ee a _ Belmont Letters From Costello m=.» a i Mohr The folder slso contained Iet- a Tele. Rocm__ On ct oa een lis Joe Doto, Scptti mentioned Jack Nease_ CEH Tat aidaie advaneed 250 Mevettdasky, brothels, SL Candi lig the 79 Wail Street Corp, and nda Bratt, Richa ein VincentAlo, 7 Se 4 etter Gated January” 3, 1998, In7 kriown as “Jiminy Blue Eyes,” Bert i; 4 ~ 3 Acco -Herald _ _ Post News a ' Star
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