An illustration of organized crime's covetous eye on New jersey's check cashing industry was provided by the testimony of Italo (Eddie) Baldassari of Hamilton Township about his ill­fated check cashing venture in Atlantic City in 1981. Now the operator of Eddie's Check Cashing in Trenton, Baldassari recalled, with some ner­vous lapses of memory. how two Bruno/Scarfo gangsters eagerly promoted his Atlantic City pro­ject-with an interest-free loan of $5,000, free legal services and free check cashing business equipment. Baldassari's mob friends were Saul Kane of Atlantic City, now serving a 95-year sentence for a narcotics conviction at Lewisburg Federal Penitentiary, and Charles (Chickie) War­rington of Philadelphia, now serving a 10-year sentence for a gambling conviction at the Federal Correctional Facility at Tallahassee, Fl
A.

During Baldassari's interrogation by SCI Coun­sel Saros. he readily admitted knowing War­rington and Kane for more than 20 years-but disclaimed any recollection of their widely publi­cized organized crime connections. At the time he was planning on opening an Atlantic City check cashing business, he testified he discussed the project first with only Warrington at a gambling casino and that Kane was not present. However. Baldassari had told the Commission in private session in late 1987 that both Kane and War­rington were present when he broached his Atlan­tic City project (but he insisted-contrary to the SCI's investigative findings-that the meeting was almost a coincidence). When he was reminded of his earlier statement that Kane also was present at the meeting, Baldassari commented, ''Maybe I said it but I don't recall it."

Mob Favored AC Check Casher

Counsel Saros next questioned Baldassari about the warm reception his project got from Warrington and how the gangster helped to set the witness up as an Atlantic City check casher:

Q. When you told Chickie about your idea of opening the business in Atlantic City did he tell you that he thought that was a good idea?
A. Yes, he did.

Q. Did you decide to name the Atlantic City check cashing business SW Check Cashing?
A. Yes.

Q. Did you file incorporation papers with the State of New Jersey with your name appearing as the sole incorporator?
A. Yes, I think I did. MS. SAROS: And for the record, SW Check Cashing. Inc.. was incorporated in August, 1981.

Q. You also filed an application with the New Jer­sey Department of Banking to operate SW Check Cashing in Atlantic City?
A. Yes. Q, When you discussed the location that you had in mind with Chickie, did he tell you that he knew an attorney who knew real estate people who could help you out?
A. Yes.

Q. Were you put in touch with those real estate people as a result?
A. Yes.

Q. Did Chickie also put you in touch with the same attorney to assist you in obtaining a lease for that location?
A. Yes.

Q. You spoke with that attorney several times on the telephone. Did you ever meet him?
A. No.

Q. Did the attorney tell you that he would take care of things for you?
A. Yes.

Q. And did the attorney, in fact, arrange the lease for you?
A. Yes.

Q. In September 1981, as a result of the at­torney's work, did you sign a five-year lease at $1,500 a month for the premises that you wanted?
A. Yes.

Q. How did you receive the lease?
A. I think Chickie brought it to me in Trenton.

Q. And the real estate people gave you the key?
A. Yes.

Q. Did you ever receive a bill from the attorney who assisted you with the lease?
A. I don't recall. I remember sending him money for the lease but-no, I don't think so.

Q. Do you recall again when you were in ex­ecutive session you testified that you did not pay him any money?
A. Yes.

Q. Are you changing your testimony at this time?
A. No. I-I know I gave him a check for the lease.

Q. You never paid him then for the work that he did for you in arranging the lease?
A. No.

Q. In November, 1981, did you open a bank ac­count for SW Check Cashing, Inc., in Atlantic City with a deposit of $5,000 in cash?
A. Yes.

Q. From whom did you obtain the $5,000 in cash?
A. I had a loan from Chickie.

Q. When did he give you that money?
A. I met him in Atlantic City at that time to go to the bank with him.

Q. And when you met him in Atlantic City he provided you $5,000 in cash?
A. Yes.

Q. Was Saul present at that time?
A. Yes.

Q. Had you ever borrowed money from Chickie before that occasion?
A. Well, years ago when there was a club there used to be card games and a few hundred dollars maybe I borrowed off of him.

Q. When Chickie gave you the $5,000 in cash in Atlantic City did he tell you, "Whatever you need let me know. I can help you out"?
A. Yes.

Q. Did you sign any paper or document in return for the $5,000?
A. No.

Q. Did you have to provide any collateral for the $5,000?
A. No.

Q. There was remodeling of the premises that you leased for your check cashing business. Did you do any of the remodeling on those premises?
A. I don't recall any remodeling being done there.

Q. Remodeling was done. Do you know who did it?
A. No. 69

Q. After you signed the lease for the location of SW Check Cashing, did Chickie tell you that he would be able to provide you with the equipment that you would need in the check cashing business, including bullet-proof glass and steel plating?
A. Yes, because he [had] had a check cashing business. He told me it closed up.

Q. Did you move that equipment onto the leased premises?
A. No. Chickie brought it there.

Q. Did you give Chickie a key to the premises?
A. He had a key, yes.

Q. Do you know how he obtained the key?
A. I don't recall whether I gave it to him or he got it.

Q. Do you know whether Saul [Kane] had a key to the premises?
A. I don't know.

State Police Cause Check Casher's Withdrawal

Baldassari was all but ensconced as an ap­parent Bruno/Scarfo gang check cashing front in Atlantic City when the deal suddenly was cancelled-by Baldassari himself. The collapse of the project was unexpected because Baldassari had filed for his check cashing license; he had signed the lease for the outlet; he had opened a bank account with a free mob loan; mob-supplied equipment was moved into the business, and the office was renovated. The reason for the cancella­tion of the project was a State Police disclosure to Baldassari of incriminating conversations that had been wiretapped between Chickie Warrington and Baldassari and between Warrington and Saul Kane. As the public hearing testimony indicated, an obviously frightened Baldassari immediately attempted to wipe out all business connections with the mobsters:

Q. ... Did you decide not to go through with the check cashing business in Atlantic City?
A. Yes, I did.

Q. And why was that?
A. Because the State Police had a tape or Chickie talking to me on a phone and they come in and talked to me and I heard the tape and they told me that they were investigating him or stuff. When I heard that, I backed of of it.

Q. Did you tell Chickie that the reason you were not continuing with the check cashing busi­ness in Atlantic City was because of that visit by the State Police?
A. I might-might have, yes.

Q. Did you tell Chickie that you were not going to run the business there?
A. Yes.

Q. What was his response?
A. He said okay. I gave him his money back to him.

CHAIRMAN PATTERSON: Let me interrupt just a minute to make sure I understand. The State Police came to you and they had a tape of you talking to Chickie, right?
WITNESS: Yes.

CHAIRMAN PATTERSON: Chickie wasn't going to be your partner?
WITNESS: No.

CHAIRMAN PATTERSON: He wasn't going to have anything to do with the check cashing operation?
WITNESS: No.

CHAIRMAN PATTERSON: Why would a tape of you talking to Chickie influence you not to go ahead with the check cashing business there when you weren't going to have anything to do with Chickie?
WITNESS: He lent me the money. I didn't need his money. I could go to the bank and borrow money, but at that point in time I needed it to expedite the leasing and all and when I heard this, the State Police was investigating him, I got worried that something was going on so I backed off.

CHAIRMAN PATTERSON: And I still can't quite understand if [nothing] was going on with Chickie-he wasn't going to be your partner and wouldn't have anything to do with the check cashing operation-why that caused you to go out and cease to be interested in a check cashing operation in Atlantic City.
WITNESS: Well, I don't recall what the State Police said to me but they said many things and what I heard I didn't like so I stayed away.

CHAIRMAN PATTERSON: Unless, of course-unless Chickie was going to be your partner.
WITNESS: No.

BY COMMISSIONER EVENCHICK: Was there anything on the tape that the State Police played for you, conversation between yourself and Chickie, that had to do with the check cashing business?
WITNESS: There was a conversation about Chickie talking to Saul. I don't recall what the conversation was.

COMMISSIONER EVENCHICK: You have no recollection of the conversation?
WITNESS: No, I don't.

BY MS. SAROS: Q. After you decided not to continue with opening the business in Atlantic City for check cashing, did you withdraw your application from the Department of Banking?
A. Yes.

Q. Did you also return the $5,000 to Chickie?
A. Yes.

Q. Did you pay him any interest on the $5,000?
A. No.

Q. Did he ask you for any interest?
A. No.

Q. Did you also close the bank account that you had opened in the name of SW Check Cashing, Inc. ?
A. Yes.

Q. Did you also speak to Chickie about talking to the attorney to get you out of the lease?
A. Yes. I told him to have the lease broken.

Q. And was the lease broken?
A. I don't recall. I never spoke to Chickie again.

Q. Did you ever have to pay any further money under the lease?
A. No.

Q. Have you to this date opened a check cashing business in Atlantic City?
A. No.

Q. Mr. Baldassari, as a result of the execution of a search warrant at the home of Saul Kane, a business card for Eddie's Check Cashing was found there. Have you given Saul Kane your business card?
A. It's possible. I don't know.

Q. You don't recall?
A. I don't recall, no.

Q. I'm going to question you now about two taped telephone conversations which occurred on December 16, 1981. At 9:30
A.m. on that date you had a telephone conversation with Chickie Warrington. At that time you stated, and I quote, "We need the lease and the key. I got to go to the bank. I just talked to the guy on the phone and I need the lease to go to the bank on Monday morning." Chickie then asked you: "I never gave you the lease?" You responded: "You never returned it to me." Do you recall having that conversation with Chickie?
A. Yes, I think so.

Q. A few minutes later, at 9:46
A.m. on the same date, a telephone call was placed from Chickie Warrington to Saul Kane. In that conversation Chickie told Saul Kane that he needed a copy of the lease and an extra key. Kane re­sponded, "Okay." Did you know at that time that Chickie Warrington was going to call Saul Kane following your conversation with Chickie?
A. No.

Q. Do you know any reason why Chickie would be asking Saul Kane for a copy of the lease and an extra key after you had just asked Chickie for those items?
A. No.

Q. Did you ever have a conversation with Chickie about either of those taped conversations?
A. No. Not that I remember, anyway.

Why Atlantic City Check Casher?

The Commission expressed an interest in the witness' reason for locating a check casher outlet in Atlantic City, which is mob boss Nicodemo Scarfo's home base as well as the site of New Jersey's legalized gambling casinos. Com­missioner W. Hunt Dumont questioned Baldassari on this point:

COMMISSIONER DUMONT: Why did you want to set up a check cashing business in Atlantic City?
WITNESS: I thought it would be very good there.

COMMISSIONER DUMONT: Why did you select Atlantic City over any other city in the State?
WITNESS: Well, because of Atlantic City gam­bling, a lot of people going there with checks and welfare was good there, too. I checked into the welfare.

COMMISSIONER DUMONT: So you were pri­marily interested, were you not, in the cus­tomers who would be going to the casinos as well as the low income welfare recipients in that town? Is that correct?
WITNESS: Well, more of the welfare recipients are there because I was looking for a location near the welfare.

COMMISSIONER DUMONT: Well, there are other cities in the State which have a large number of welfare recipients. Why did you select Atlantic City?
WITNESS: Because I thought it was good there.

COMMISSIONER DUMONT: Because of the casinos, did you not?
WITNESS: Well, casinos and the welfare there.

COMMISSIONER DUMONT: How long had you known Chickie Warrington?
WITNESS: About 25 years.

COMMISSIONER DUMONT: And how did you know him?
WITNESS: Through a bar on Calhoun Street, [Trenton], Columbus Bar and Grill. He used to go and play cards next door there.

COMMISSIONER DUMONT: And did you have any business dealings with him?
WITNESS: No.

COMMISSIONER DUMONT: Well, did you play cards with him at this bar?
WITNESS: No.

COMMISSIONER DUMONT: Well, I'm still try­ing to find out how you knew him.
WITNESS: It was a clubhouse next door to [the] bar and my brother owned the Columbus Bar and I used to be there and he used to be next door. He used to come next door and have a drink.

COMMISSIONER DUMONT: How long have you known Saul Kane?
WITNESS: 25 years, I guess.

COMMISSIONER DUMONT: And how do you know him?
WITNESS: Through the candy-chocolate business. I'm in the donut business and he come over and sold us chocolate.

COMMISSIONER DUMONT: Now, do you know anything else about Warrington and Kane, about their past other than what you've just described?
WITNESS: No, except what--l think the last hearing I was at they told me he might have been in jail. I don't recall. Although the association of Kane and War­rington with organized crime, and particularly with the Scarfo mob, was widely known, Baldassari claimed almost complete ignorance of their back­grounds:

COMMISSIONER DUMONT: Did you know anything about their association with or­ganized crime?
WITNESS: No.

COMMISSIONER DUMONT: Had you ever heard this during the period of time that you had known them, some 20 to 25 years?
WITNESS: No.

COMMISSIONER DUMONT: When did you first learn that, if you did?
WITNESS: Just recently at a hearing. Maybe the State Police mentioned something to me. I don't recall

COMMISSIONER DUMONT: Prior to the time that the State Police played the tapes, you did not know of any association they had with or­ganized crime. Is that your testimony?
WITNESS: Not that I remember.

COMMISSIONER DUMONT: Now, didn't you find it a bit unusual that they arranged free legal services for you and an interest-free loan, equipment and a key to certain space in Atlan­tic City at no charge to you?
WITNESS: No.

COMMISSIONER DUMONT: How much money were you out as a result of this particu­lar venture into Atlantic City? How much did it cost you?
WITNESS: About-I don't know-whatever the lease was.

COMMISSIONER DUMONT: Was that one month's rent, $1,500?
WITNESS: Yes.

COMMISSIONER DUMONT: And you paid one month in advance?
WITNESS: Yes, I think so.

COMMISSIONER DUMONT: And that's the ex­tent of the investment that you made on this Atlantic City venture. Is that correct?
WITNESS: Yes, sir.

COMMISSIONER DUMONT: And this venture was discontinued as a result of these tapes which were played by the State Police to you. Is that your testimony?
WITNESS: Yes.

COMMISSIONER DUMONT: Now, did the State Police at the time they played these tapes to you indicate that you were under in­vestigation?
WITNESS: No, I don't think so.

COMMISSIONER DUMONT: But they did in­dicate that Chickie was under investigation­
WITNESS: Yes, sir.

COMMISSIONER DUMONT: Did they indicate what Chickie was under investigation for?
WITNESS: I don't remember.

Mob Would Profit from AC Check Casher

SCI Intelligence Chief Dintino, testifying on Baldassari's connection with mobsters Chickie Warrington and Saul Kane at the time he was setting up a check casher outlet in Atlantic City, told Counsel Gaal that such a commercial enterprise in a casino gambling mecca would be profitable for organized crime:

Q. Chief, after hearing the involvement of Mr. Warrington and Mr. Kane in the behind-the­scenes formation of S & W Check Cashing Incorporated in Atlantic City with Mr. Baldassari applying for the license as the sole person involved, do you have any opinion as to Mr. Baldassari's role?
A. It's obvious to me that Mr. Baldassari was either a willing or unwilling front for Chickie Warrington and Saul Kane. If licensed, Mr. Baldassari would have been a licensed check casher ultimately controlled by Nicky Scarfo and his henchmen.

Q. I take it that it would be very beneficial for organized crime, especially in the illegal ac­tivities of Mr. Warrington and Mr. Kane, to be involved in a check cashing operation es­pecially in Atlantic City New Jersey?
A. No question about it. It would have provided them with the opportunity to launder illegal money, evade taxes, conduct loansharking operations, collect gambling debts and com­mit numerous other crimes.

Q. Could either Mr. Warrington or Mr. Kane have obtained a license on their own?
A. No, because of their criminal backgrounds. So Mr. Baldassari, having no criminal back­ground, would be a perfect person to front the check cashing operation for Warrington and Kane. I might add that this is routine in or­ganized crime. They are always searching for individuals who they hope they can trust that have no criminal background so that they can subvert the regulatory process. Other exam­ples would include the solid waste industry, liquor establishments and casino ancillary ser­vices.

Q. Chief Dintino, with all of your experiences in the organized crime intelligence field, is this check cashing scenario the classic example of an individual being used to front for organized crime?
A. Absolutely. I might add that at this hearing we have heard about many fronts.

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