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Gallagher continued

The Congressman and the Salad Oil Swindler

Originally appeared in Life on October 25, 1968

More on Congressman Cornelius Gallagher

The congressman's legal client, "Tino" De Angelis,
was photographed in 1964 as he painstakingly tried
to explain the intricacies
of his commodities swindles.
The prospect of investigating a congressman's activities is apt to evoke something short of enthusiasm at many levels of government. And Gallagher, as previously mentioned, is no ordinary congressman when it comes to influence. Here in his home territory, investigations are particularly touchy. The U.S. Attorney's office in Newark is headed by David M. Satz Jr., a personable young man with ambitions to be a federal judge. One of Mr. Satz's assistants since January 1963 has been Martin Tuman, who got the job with Congressman Gallagher's political sponsorship. Gallagher had good reason to know Tuman's abilities; Tuman is a member of the firm of Dembe, Dembe & Gallagher. Although the Justice Department virtually prohibits private practice by Assistant U.S. Attorneys, Tuman's name in gold leaf has been on the door of the Bayonne law offices for the more than five years he's been working for the Justice Department. Satz had had complaints but claims there has been no proof of Tuman practicing private law. He told LIFE he has asked that Tuman's name he removed from Dembe, Dembe & Gallagher's door. But there it's staved, and there Tuman has staved in Satz's office. Nevertheless, Tuman is a practicing memher of Dembe, Dembe & Gallagher. "He can't touch anything that has anything to do with federal court," shrugged Harvey Demhe. "Tuman's practice [is] estates and probate matters."

On Jan. 27, 1965, after a conference with FBI agents investigating Pal Provision Corp., Satz subpoenaed the records of the Broadway National Bank pertaining to the Pal loan.

"We believed this was De Angelis doing the same thing again," said Satz. "If there had been a default, we frankly felt it might have broken the hank."

Happily, the Broadway National Bank was not stuck with any phony collateral. The Pal company put up some money to pay off the loan. The rest came from representatives of De Angelis who explained that they hoped reducing the Pal loans might conceivably make the sentencing of Tino go more easily.

De Angelis was sentenced to 20 years in prison in August 1965. By that time, Satz had pigeonholed the investigation of Gallagher's deals. "Bells rang and I was damn annoyed," Satz admits, when Gallagher's name popped up in the Pal mess. Nevertheless he decided what the congressman had done to help finance the De Angelis interests was simply a private matter "between Gallagher and the bank."

Back at the hank Dembe had some reservations about Gallagher, who was, after all, not only a congressman and a bank director but also a man in a better position than most to know what De Angelis was up to.

"My brother and I told Neil," Dembe told LIFE, "'If ever your connection in this thing comes out, nobody will believe that you didn't have any interest in it. . . . You're in there, you're on the Foreign Affairs Committee, a lot of this business is export with [backing of] government funds. . . . If your connection comes out - there goes your chance for the governorship.'"

Harvey Dembe, speaking as a lawyer and hanker and as Gallagher's partner, was pronouncing a political obituary of the congressman. John V. Kenny, boss of Gallagher's political domain, obviously thinks it's too early for an obituary. His business is winning elections, knowing what voters want – or how much they will take.

Finis

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