Mafia Boss: "I Ran The Biggest Scam In The World! $1.4 Million A Day!" Michael Franzese
20 Aug 2024 (25 days ago)
Michael Franzese's Criminal History
- Michael Franzese was arrested 18 times and earned $10 million a week through 18 companies that defrauded the government.
- The individual pled guilty to racketeering, tax fraud, and conspiracy charges, resulting in a 10-year prison sentence, $14.7 million in restitution, and $5 million in forfeitures.
- The individual kept some of the money from their illegal activities to support their family while they were in prison.
- A lawyer informed an individual that they would be indicted on a gasoline case in June of 1986, but the indictment actually occurred in December of that same year.
- The individual and their partner, Larry, had a bank account in Austria containing $33 million, but Larry became an informant and revealed the account to the FBI.
- The individual claims to have buried money in safes in the ground, and despite investigations, the authorities have been unable to locate these funds.
- Retired agents have told the speaker that they believe he has hidden money and they are waiting for him to retrieve it.
The Mafia Structure and Rules
- There are four levels in the Mafia: associates, soldiers, capos, and the boss. Associates are not official members, soldiers are the lowest official rank, capos are street bosses, and the boss is the head of the family.
- The Mafia originated in Italy as a group that protected towns from marauders, but they eventually became involved in criminal activity. They migrated to New York in the late 1800s and early 1900s.
- Lucky Luciano, a mobster from Italy, saw that the different Mafia groups were warring with each other and decided to organize them. He created the Mafia commission and split the Mafia into separate families, each with its own boss.
- There were approximately 750 "made men" within the five main families in New York City during the speaker's time.
- The speaker states that the families would resolve disagreements "amicably" through sit downs, usually with the boss present as the final authority.
- Sit downs could involve business disputes or deciding someone's fate, even if that fate was a matter of life and death.
- The mafia had strict rules against harming women and children, dealing drugs, and dishonesty, with severe consequences for violations.
- If someone in the Mafia violates the law and gets caught, they understand the consequences.
- To join the Mafia, someone has to propose and vouch for the new member; the speaker had to prove himself worthy over two and a half years, which included a lot of discipline and respect for authority.
- A "made member" must always be ready to work, even if it means leaving a dying parent's bedside.
Michael Franzese's Relationship with His Father, Sonny Franzese
- Franzese's father was sentenced to 50 years in prison, leading Franzese to abandon his plans of becoming a doctor to join the mafia and help his father.
- From a young age, Franzese witnessed his father, a high-profile target of law enforcement, go in and out of jail, leading him to view law enforcement as the enemy.
- The speaker's father held a high-ranking position within the Colombo family, serving as both a captain and an underboss.
- The speaker's father entrusted him with the care of his mother and siblings.
- The speaker's father was accused of masterminding bank robberies, but claimed he was framed.
- The speaker's father asked him if he could kill someone if necessary, to which the speaker responded that he could under the right circumstances.
- Michael Franzese joined the mafia to help his father, Sonny Franzese, who needed money for legal representation.
- Sonny Franzese was accused of being involved in 30-35 murders, although he was only indicted for one and found not guilty.
- Joe Columbo was shot and seriously wounded, lingering for seven years before dying; a new, now-deceased, boss took over about two weeks after the speaker's father proposed him to be a part of that life.
- Michael Franzese describes feeling exhilarated the night he was initiated into the mafia, viewing it as a way to strengthen his bond with his father.
- He explains that he did not initially aspire to be a mobster, but was motivated by a desire to help his father.
- Franzese reveals that his father, despite being present that night, did not defend him when questioned about Franzese's actions, an act Franzese perceived as a betrayal.
- Franzese later learned from Jimmy that his father had not defended him during the meeting, a revelation that Franzese later confirmed with his father.
- The speaker's relationship with his father was never the same after he left the mob.
- The speaker did not attend his father's funeral because he did not want to cause a scene or be the center of attention.
Michael Franzese's Business Ventures
- The Columbo family had 115 members, but only 20 were considered "racketeers" who made money and elevated the family.
- Michael Franzese learned negotiation skills by observing older members and preparing for meetings to avoid being taken advantage of.
- It is stated that a gas tax scam may have been the biggest since the prohibition era.
- The scam involved 18 shell companies based in Panama, used to exploit the gas tax collection process.
- The operation involved buying gas, often from barges coming from the Middle East, then selling it to gas stations at a discount, undercutting competitors while still profiting from the unpaid taxes.
- Michael Franzese proposed a gas scheme to his boss, Junior, emphasizing its profitability and the need to secure his position within the organization.
- Franzese's gas scheme generated substantial profits, reaching $7-10 million per week, which led to his promotion to captain and allowed him to amass significant wealth.
- Michael Franzese had millions of dollars, with much of it being cash.
- Franzese had multiple businesses, including automobile agencies, dealerships, a leasing company, a film production company, restaurants, and a video shop.
- Franzese had to pay the mafia if the earnings were from illegal businesses, but not from legal businesses unless the mafia contributed in some way.
- Michael was given a car dealership and, despite initially lacking funds, was able to secure floor planning by promising a General Electric Credit employee a cut of each car sale.
Betrayal and Its Consequences
- Michael's success in the gasoline tax scheme, orchestrated with his partner, ended when his partner, facing legal trouble in another case, became an informant and testified against him.
- Michael believed his partner was weak, predicting he would cooperate with authorities to avoid jail time, a belief that proved true when the partner became an informant.
- MH's cooperation with authorities was not well-received, and there was a desire to remove him from the picture.
- The man reveals that an article in the Long Island Press falsely claimed he was planning to start his own crime family, which led to a betrayal by his father and ultimately his decision to leave "that life".
Violence and Death in the Mafia
- Franzese believes that everyone has the capacity for violence and that murder is a part of human nature, citing the military as an example of killing for a cause.
- Arty, a close friend of the speaker's father, was murdered. The speaker saw Arty's body in the funeral parlor and was deeply affected by it.
- The speaker's friend, who was also in the Mafia, was killed because he violated the principles of their life. The speaker tried to save him but was unsuccessful.
- The speaker acknowledges the brutal nature of the Mafia, where mistakes can lead to death, and he witnessed many people, including friends, die for unjustified reasons.
- A man recounts a story about two brothers who were ordered to kill their father for having an affair. The brother who carried out the killing was so traumatized that he could not be alone in his house for 20 years.
- Michael tells a story about a man named Tony who was involved in a drug deal with someone higher up. Tony was afraid he would be killed for his mistake and committed suicide.
Michael Franzese's Time in Prison
- The speaker spent 29 months and seven days in solitary confinement.
- The speaker was put in solitary confinement for refusing to cooperate with agents and testify against a friend.
- Michael Franzese lost a significant amount of weight in prison, dropping to 166 pounds, due to avoiding the prison food after experiencing food poisoning. He ate primarily cereal, bananas, and soup.
- He found solace in a Sony Walkman, particularly during Christmas Eve, as the music provided a temporary escape from the harsh realities of prison.
- Franzese emphasizes the importance of maintaining contact with family while incarcerated, highlighting how his father's lack of communication led to strained relationships. He attributes his own perseverance to his wife's unwavering support and the encouragement he received from his church community.
Michael Franzese's Life Philosophy
- Michael Franzese believes there were two possible motives behind the meeting he was called into: to intimidate him and discourage any rebellious actions, or to potentially eliminate him and seize control of his prosperous business.
- Michael says that his children take advantage of him and do not show him respect.
- Michael says that people are more interested in hearing about his personal life and struggles than his experience with the mafia.
- A new platform is being started to offer more than just conversation and to create a community where people can help one another.
- The speaker believes that people who have lived anomalous lives have learned fundamental truths about the world and how to navigate it.
- The speaker's motto is to not micromanage, as it takes them away from what they are good at.
- Michael Franzese believes that people should focus on their strengths and delegate tasks that they are not as skilled at. He also emphasizes the importance of personal life being in order, as it often reflects on one's professional life.
- Two defining moments significantly impacted Franzese's life. The first involved his father proposing him into a life he does not specify, and the second was a conversation with Pastor Dr. Myin Taylor.
- Franzese reveals that his conversation with Pastor Taylor, shortly before marrying his wife, gave him hope for changing his path in life. He was inspired by the pastor's belief in forgiveness and the possibility of turning things around. (02:03:32)
- Michael acknowledges past wrongdoings but emphasizes the importance of personal growth, forgiveness, and being judged by present actions.
- Rudy Giuliani, who had been a formidable legal adversary to Michael during his time combating organized crime, wrote the forward to Michael's book.
- Michael expresses admiration for the interviewer's work ethic and success at a young age, hoping they will continue to be an inspiration.
The Speaker's Childhood and Family
- As a child, the speaker was largely unaware of their father's involvement in organized crime, believing his associates to be positive influences.
- The speaker recounts two instances that revealed a darker side to their father: physically assaulting an individual during a business meeting and punching a carpenter in their home. (00:07:29),
- The speaker's mother may have been jealous of the attention her husband, the speaker's father, paid to the speaker. Please note that some bullet points were not included as they were duplicates or did not fit into any specific category.