Vanessa Richardson (36:54)
By the 1930s, Benjamin Martin Bugsy Siegel was one of the most feared gangsters on the east coast. He was part of a new mob organization called the Syndicate, which he ran with his friend and co conspirator Meyer Lansky and a few other gang leaders. But Bugsy and Lansky were the head honchos in charge. Meyer managed business operations while Bugsy did the dirty work running a squad of hitmen known as Murder Inc. But after Bugsy's high profile murders began to draw unwanted attention, the was scene syndicate decided it was time to send their hot headed colleague out west. That way he could expand the operation and hopefully learn to Tone down his antics along the way. And so in 1933, 27 year old Bugsy rented a 35 room mansion in Beverly Hills for himself, his wife Esta and their two young daughters. Bugsy immediately fell in love with Southern California. He'd always been a movie buff and with his good looks and snappy suits, he fit right in with the Hollywood crowd. He even had an old friend in the movie business, George Raft. Back when they were kids, he and Bugsy had wreaked havoc on the streets of Brooklyn. Eventually, George straightened up, found work as a Broadway actor and went to Hollywood where he made a name for himself playing gangsters on the big screen. When George heard Bugsy was coming to la, he was thrilled. Now he could introduce his famous friends to a real life gangster. Before long, Bugsy was a fixture at Hollywood parties where movie stars couldn't wait to meet the suave and charming mob hitman. Leading men like Jimmy Stewart, Clark Gable and Cary Grant were fascinated by Bugsy's machismo and studied his mannerisms for their own roles. Bugsy asked platinum blonde starlet Jean Harlow to be the godmother to one of his daughters and had several affairs with different actresses. But when Bugsy wasn't partying with celebrities, he was hard at work. Los Angeles was an untapped market for organized crime and everywhere he looked, Bugsy saw opportunities to make a fortune. First, Bugsy forged an alliance with the leaders of Hollywood's background actors union. Bugsy used this partnership to extort the Hollywood kingpins he met at parties. If the head of a studio didn't pay him off, Bugsy would make sure no extras showed up to film the big crowd scene the following day. With the entire production at stake, it was cheaper and safer for the studios to play ball with the dangerous gangster in their midst. And in his first year in Hollywood, Bugsy squeezed the studios for more than $400,000. This way, it's the equivalent of nearly $10 million today. But Bugsy made even more money for the syndicate by running illegal gambling operations. He organized regular high stakes craps games at his mansion and muscled his way into the lucrative world of off track betting, taking a cut of the winnings from horse and greyhound races all over Southern California. He even partnered with his actor pal George Raft to invest in the SS Rex, a casino boat anchored in international waters just a few miles from Santa Monica. Water taxis ran between LA and the Rex 24 hours a day, ferrying wealthy Angelenos to the floating gambling den where US laws didn't apply. In its first six months, the SS Rex earned over $200,000. But despite all the money changing hands, Bugsy felt like something was missing. He knew he was supposed to be laying low in la, but he couldn't help himself. And before long, Bugsy was raring to get back to his favorite pastime. Contract killing. Harry Greenberg, known to his friends as Big Greenie, was a 30 year old New York based member of the syndicate. When aggressive federal prosecutor Thomas Dewey started investigating him in early 1939, Big Greeny went on the run. First to Montreal and then to Detroit. But at some point, Big Greenie cracked. Word got back to the syndicate that he was thinking about cooperating with with Dewey's investigation and ratting out his friends. So the syndicate's leaders put the matter to a vote and agreed. Big Greeny had to die before he got them all arrested. As luck would have it, Big Greeny had left Detroit and taken up residence in Los Angeles. Soon, Bugsy Siegel got a call from his old Murder Inc. Colleagues asking if he could hire someone guys to take Big Greeny out. Bugsy was thrilled to have a chance to get back into the assassination game. Even though his bosses at the syndicate instructed him not to get personally involved in the hit, Bugsy couldn't help himself. Bugsy used his connections to track Big Greeny to a small apartment and had his men keep an eye on the place. Then on the night of November 22, 1939, when Big Green Greenie came home, an assassin was waiting in the bushes beside the driveway. He stepped up to the driver's side window and shot Big Greeny five times. Then ran out to the street where Bugsy was waiting in his brand new 1939 Buick convertible to help him escape. For a public figure like Bugsy, taking part in a gangland murder and using his own personal vehicle as the getaway car was unwise to put it lightly. Over the next several months, police rounded up multiple accomplices who pointed to Bugsy as the mastermind. In 1940, 36 year old Bugsy was arrested and held in custody as he went on trial for Big Greenies murder. But after multiple key witnesses turned up dead, the charges were dropped in 1942. Still, things weren't the same after Bugsy went free. In the wake of his highly publicized murder trial, the famous actors who used to flock to Bugsy's house no longer wanted to be seen with him. Feeling like he'd overstayed his welcome in Hollywood, Bugsy set his sights on new opportunities in a city just a Few hours east. Las Vegas. In 1942, Las Vegas was a very different place than it is today. It was just a little railroad junction town with a population of less than 8,500. After the Nevada Legislature legalized gambling in 1931, a few old west themed casinos sprung up. But most high rollers preferred the swankier gambling dens up north in Reno. But Bugsy saw potential in Las Vegas that others didn't. His experience with the SS Rex had shown that wealthy Angelenos wanted a casino gambling hotspot close to home. And Las Vegas wasn't far away. Rebounding from his recent failures, Bugsy wagered he could turn his luck around in Vegas. Gambling had always been a profitable venture for Bugsy and the syndicate. And now Bugsy wanted to build a luxury casino that would put Las Vegas on the map. Card games and roulette. Plus resort style amenities like air conditioning and swimming pools. For the next few years, Bugsy tried to buy a controlling stake in different small time casinos around Vegas. Eventually, he realized he'd be better off building his own from scratch in 1920. In 1946, 42 year old Bugsy partnered with a cash strapped property developer named Billy Wilkerson to buy a 33 acre plot on the south side of town. In March of that year, they broke ground on a casino that would change Las Vegas forever. Bugsy called his pet project the Flamingo. It turned out Bugsy was a great, great gangster, but a terrible project manager. Soon he'd pushed out Wilkerson, the experienced developer, and insisted on ordering the construction workers around himself. Once the contractors realized how clueless Bugsy was, they found ways to take advantage of him. In the wake of World War II, construction materials were already expensive. Now Bugsy's suppliers were double or triple billing him for every truckload of materials, knowing the gangster would never catch on. Before long, the Flamingo's construction budget had ballooned from $1.2 million to $6 million. Nearly 100 million in today's dollars. This was a problem for Bugsy. He'd put a lot of the syndicate's money in the Flamingo, promising his fellow gangsters a huge, huge return on investment. As the costs spiraled out of control, Bugsy's old friend Meyer Lansky started to grow impatient. Bugsy was already on thin ice after his attention grabbing role in the big Greenie hit. Now his desert adventure was seriously impacting the syndicate's bottom line. By December of 1946, nearly 10 months since breaking ground, the Flamingo still hadn't opened to add insult to injury, Meyer believed that Bugsy had been embezzling some of the funds. Instead of investing the syndicate's money into the Flamingo the way he was supposed to, he thought Bugsy was funneling it into an offshore bank account. Instead, this was the last straw. The leaders of the syndicate put the matter to a vote and decided that Bugsy Siegel had to die. But one person was willing to go to bat for him. Meyer Lansky, Bugsy's oldest friend and partner in crime, wanted to give his pal one last chance. He urged his fellow gangsters to hold off on the hit until after the Flamingo's grand opening on December 26th. If Bugsy's investment turned out to be as big of a money maker as he claimed, the syndicate could rethink their decision. Bugsy didn't know it, but he was gambling with his life. Bugsy Siegel pulled out all the stops for the grand opening of the Flamingo. He called in every favor he could with the Hollywood celebrities who would still talk to him, hoping to get all the stars at the Flamingo for opening night. But when December 26 arrived, a winter another storm in LA grounded the two planes Siegel had chartered to fly the celebrities to the party in Vegas. The few guests who showed up found a half finished casino with faulty heating and decrepit rooms. To make matters worse, rival casinos had hired professional gamblers to attend the party. By the end of the night, the Flamingo wound up paying out more money than it made at the cardinal tables. Even if Bugsy didn't know his life was on the line, it was clear he had to make some changes, and fast. In January of 1947, he temporarily closed the Flamingo to finish construction. It reopened in March. But despite all the glitz and glamour inside the casino's bright pink walls, the operation was still losing money. Bugsy had done everything he could think of. And yet the Flamingo wasn't bringing in enough business to cover the hotel's astronomical costs. By July, even Bugsy's longtime defender, Meyer Lansky, was ready to pull the plug on his old friend. On the night of June 20, 1947, Bugsy was back in LA after an extended seat stay in Vegas, trying to turn the Flamingo's fortunes around. He sat on the couch with a newspaper, trying to relax after the stress of the past few months. Outside, a sniper was hiding, watching. They took aim and fired nine shots, killing Bugsy with a bullet to the head. Minutes after Bugsy's death, representatives from the syndicate were walked into the Flamingo and informed them the casino had a new manager, Meyer Lansky. With Meer at the helm, the Flamingo flourished, attracting even more casinos and turning Vegas into a worldwide destination. Meanwhile, Bugsy's killer was never caught. The hot shot had gone to Vegas, bet big, and lost it all. Looking back at this week in crime history, we can see that crime sometimes does pay, at least for a while. Sam Giancana and Bugsy Siegel rose from the streets and lived like kings for a time. But eventually the bill came due and it was delivered by the people they once called friends. Thanks so much for listening. I'm Vanessa Richardson and this is Crime House the Show Crime House the Show is a Crime House original powered by Pave Studios. At Crime House we want to express our gratitude gratitude to you, our community for making this possible. Please support us by rating, reviewing and following Crime House the Show. Wherever you get your podcasts, your feedback truly matters. And for ad free and early access to Crime House the Show plus exciting bonus content, subscribe to Crime House plus on Apple Podcasts. We'll be back next Monday. The show is hosting hosted by me, Vanessa Richardson, and is a Crime House original powered by Pave Studios. This episode was brought to life by the Crime House the Show team. Max Cutler, Ron Shapiro, Alex Benedon, Natalie Pertzovsky, Lori Marinelli, Sarah Camp, Truman Capps, Hania Saeed and Michael Langsner. Thank you for listening. Ready to rethink everything you know about true crime? Check out Murder in the Media, the first audiobook from Crime House Studios. Find Murder in the Media on Spotify.