Illinois (Chicago)

Part: 
Four
Chapter: 
4
There is little evidence to indicate large-scale. production of pornographic material in the area, however, several large distributorships have been identified. The largest is Capitol News Agency at 3400 N. Kedzie, Chicago. The other is allegedly Reuben Sturman of Cleveland and the manager is Neil Traynor, who recently replaced Alan Bloom in that position. Capitol controls approximately 80% of the distribution of pornographic magazines and films in Chicago. It has its own delivery service and provides service for stores the materials are sold to. Local authorities report that Capitol News will provide an' individual that wants to open a retail pornographic shop with whateverr financial backing that is needed.

L & W Distributors and A & A Distributors share the remaining 20% of the Chicago area distribution. L & W is owned and operated by Leo Weintraub, an associate of Chicago organized crime figures. His operation deals almost entirely in the sale of "remainders" which are older magazines sold at greatly reduced prices which therefore return a greater margin of profit, Weintraub also owns several adult retail bookstores, in Chicago, all using the name L & W Adult Books.

A & A Distributors is owned and operated by Anthony DeFalco. He primarily deals in new pornographic films and magazines, but also handles remainders. It is believed that he originated the practice of leasing movie machines used in the showing of "peep shows" in retail adult bookstores. There are nearly 800 peep shows operating in Chicago's adult bookstores most of which are leased from A & A Distributors or Capitol News. A & A operates seven adult bookstores throughout the Chicago area and DeFalco is known to have operated pornography stores as far away as Des Moines, Iowa. The Chicago Police feel that his operation has the greatest potential for growth.

A pornographic movie distributorship which has just been started is Chicago Booking Service. It is believed significant because the owner, Patsy Ricciardi, has close ties to the Chicago "Outfit." He was the cousin of the deceased Felix Alderisio, member of Chicago organized crime. He is also associated with Frank Schweihs, suspected hit man and associate of Anthony Spiilotro who handles the Chicago Outfit's interest in Las Vegas and is the leader of the younger members of the Outfit.

Chicago organized crime member Marshall Caifano allegedly has a vested interest in some pornographic bookstores in Chicago. He is believed to be the owner of a pornographic book store, peeping Tom Bookstore, on the near north side of Chicago. This store is fronted for him. Caifano is also alleged to get $500 a week from the Over 21 Bookstore in Chicago which is owned by Reuben Sturman of Cleveland. Owners of the bookstores willingly give protection money to Caifano as a cost of doing business. Caifano is attempting to muscle and organize Chicago area porno graphic theaters, bookstores, and wholesale distributors of porno graphic books and peep show machines. He apparently was assigned the task of obtaining Leo Weintraub's operation, L & W Distributors. He now has approximately 25% of that operation. An attempt was made to muscle the Capitol News Agency, but apparently an agreement was reached between the Chicago Outfit and Sturman's group. Instead of actually taking over the bookstores and distributorships, Caifano instituted the collection of a street tax, which is collected by Mike Glitta and Anthony Juliano. Glitta and Juliano operate adult bookstores themselves. Glitta is the street boss for organized crime figure Joe DiVarco.