U.S.
Department of Justice
Northern
District of
Illinois
Scott Lassar Federal
Building
United States Attorney 219
South Dearborn Street, 5th Floor
Chicago, I1fnois
60604
(312)
353-5506
FOR
IMMEDIATE RELEASE PRESS
CONTACTS
THURSDAY OCTOBER 19, 2000 Randall Samborn,
U.S. Attorney's Office
(312)353-5318
Ross
Rice, FBI Press Office
(312)786-2645
MEDIA
ADVISORY
The U.S. Attorney's Office and
the FBI will hold a press conference at 3:00 p.m. today to
announce
arrests in Chicago and Phoenix stemming from the indictment of six defendants,
including William A. Hanhardt, retired Chicago Police chief of detectives, for
their alleged roles in a nationwide jewelry theft ring. The press conference
will be held in the U.S.. Attorney's press conference room on the 11th floor,
north end, of the Dirksen Federal Courthouse, 219 South Dearborn St., Chicago.
The press conference will be conducted by Scott R. Lassar, United States
Attorney for the Northern District of Illinois and Kathleen McChesney, Special
Agent-in-Charge of tile Chicago Field Office of the Federal Bureau of
Investigation.
It is expected that Hanhardt and other defendants will have their
initial court appearance after the press conference in the Dirksen Federal
Courthouse.
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U.S. Department of Justice
United States Attorney
Northern District of Illinois
United States
Attorney -19
South Dearborn Street, 51h Floor
Chicago,
Illinois 60604
(312)
353-5300
FOR IMMEDIATE RELEASE PRESS CONTACTS:
THURSDAY
OCTOBER 19 2000 U.S. Attorney's Press Office (312) 353-5318
FBI
Press Office (312) 786-2645
NATIONWIDE JEWEL THEFT RING
ALLEGEDLY LED BY EX-CHICAGO DETECTIVE
CHICAGO -- A retired Chicago police chief of detectives was the
leader of a sophisticated nationwide ring of jewelry thieves who targeted
traveling jewelry salesmen and stole millions of dollars of high-quality
jewelry in the 1980s and
1990s, according to a federal grand jury indictment returned today. Scott R.
Lassar, United States Attorney for the Northern District of Illinois, and
Kathleen McChesney, Special Agent-in-Charge of the Chicago Field Division of the
Federal Bureau of Investigation announced that FBI agents immediately began
arresting or searching for four of the defendants in the Chicago area and one
in Phoenix and were seeking the sixth man who is a fugitive.
The indictment alleges that five of the defendants conspired to steal
and transport across state lines j jewelry, gems and watches having a total
value of approximately 54.85 million
involving eight previously unsolved heists in Arizona, California, Michigan,
Minnesota, Ohio, Texas and Wisconsin. Among the thefts was the S1.5 million
jewel theft from safe deposit boxes at the Hyatt Regency Hotel in Columbus,
Ohio, on Aug- 27, 1994. The sixth defendant allegedly participated in a theft
in Indiana in which watches were stolen from, but later returned to, the trunk
of a salesman's car.
The indictment alleges that the leader of the criminal enterprise was
William A. Hanhardt, 71, of north suburban Deerfield, who retired from the
Chicago Police Department in 1986 after a 33-
year career
during which he served as chief of detectives, chief of traffic, commander of
the burglary section, deputy superintendent for the bureau of inspectional
services and district commander. Hanhardt at times personally participated in
the theft of jewelry, according to the indictment. It alleges that he directed
his co-defendants and others in their gathering of information on and
surveillance of potential victims. He used certain Chicago Police Department
officers to conduct database searches of CPD and other law enforcement
computers to obtain information about salesmen and, similarly, he caused a
private investigator to conduct credit bureau database searches and other
inquiries to gather information about salesmen- He supervised
co-defendant Joseph N. Basinski and, together, they
directed the activities of others employed by and associated with the theft
ring, the indictment alleges.
"Hanhardt's organization surpasses in duration and sophistication
-just about any other jewelry theft ring we've seen in federal law enforcement,"
said Mr. Lassar. "The defendants would determine the most opportune time
to steal jewelry from places such as cars and hotel rooms by surveilling
traveling salesmen and by keeping detailed records analyzing their routines,
all with the purpose of providing income to themselves from the stolen
property," he added.
The indictment seeks forfeiture of $4,$45,000 from five of the
defendants, along with the suburban Chicago residences of Hanhardt and
co-defendant Sam DeStefano.
"This indictment effectively dismantles a prolific jewelry theft
ring that operated with virtual impunity, directed by a corrupt law enforcement
official," said Ms. McChesney. "The public expects aggressive
enforcement of the law by its police officials, not collusion with criminals."
The
indictment names and describes the other defendants as follows:
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Joseph N.
Basinski, 55, of Chicago, who also personally participated in the theft of
jewelry and identified potential targets for the enterprise, including owners
of or salesmen to jewelry stores, by physical surveillance, telephone calls and
database searches;
Paul J.
Schiro, 63, of Scottsdale, Ariz., who also personally participated in the theft
of jewelry and conducted physical surveillance of jewelry shows, owners of jewelry
stores and jewelry salesmen;
Sam
DeStefano, 46, of west suburban Downers Grove and Chesterton, Ind., who also
personally participated in the theft of jewelry and conducted physical
surveillance of jewelry shows, owners of jewelry stores and jewelry salesmen;
Guy
Altobello, 69, of west suburban Elmhurst, who worked at Altobello Jewelers,
Inc., a retail jewelry store located formerly in Villa Park and now in Wheaton,
who provided one or more of his co-defendants with information about jewelry
salesmen that conducted business with Altobello Jewelers so that they could
further identify salesmen and determine the most opportune occasion to steal
jewelry from them; and
William R. Brown, 74, formerly of
the Chicago area and most recently Gilbert, Ariz.,
whose current whereabouts are unknown, and who was charged only with conspiring in the 1996 heist of watches from a
jewelry salesman in Chesterton, Ind.
The indictment also identifies two
additional co-conspirators who are now deceased: James D'Antonio, of suburban
Chicago, who maintained information on traveling jewelry salesmen, along with
various tools of the enterprise until he died in December 1993, and Robert
Paul, of Apache Junction, Ariz., and formerly of Chicago, who conducted
physical surveillance of jewelry stores and salesmen in Arizona.
Hanhardt, Basinski, Schiro, DeStefano and Altobello were each charged
with one count of racketeering conspiracy for allegedly conspiring from the
early 1980s until April 1998 to engage in a pattern of transporting stolen
goods across state lines and receiving, possessing and disposing of stolen
property that crossed state lines. Hanhardt, Basinski, Schiro and Brown were
each charged
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with one
count of conspiracy to commit interstate transportation of stolen property in
connection with a planned theft of watches in Indiana in 1996.
Hanhardt, Basinski and Altobello
were arrested this morning without incident. They were scheduled to have an
initial court appearance later today in U.S. District Court.
The eight alleged jewel thefts
are described as follows:
• The theft of approximately 180watches
worth approximately $310,000 from the vehicle of a salesman for Baume
& Mercier, Inc., on Oct. 8, 1984, in
Glendale, Wisconsin;
• The theft of watches worth
approximately $500,000 from the vehicle of a
salesman for Rolex Watch USA, Inc.,
on or about Oct. 13, 1986, in
Monterey, California;
• The theft of jewelry worth
approximately $125,000 from the vehicle of a
salesman for Gordon Brothers Corp.
on or about Aug- 28, 1989, in
Englewood, Ohio;
• The theft of a bag containing jewelry
worth approximately $1 million from
a salesman for J. Schliff and Sons,
Inc., doing business as Gem Platinum
Manufacturing, on or about June 30,
1992, at Dallas/Ft. Worth, Texas;
• The theft of jewelry worth more than
$1 million from the rental vehicle of a
salesman for Gem Platinum
Manufacturing on June 23, 1993, in Flat Rock,
Michigan;
• The theft of jewelry worth
approximately $240,000 from the rental vehicle
of a salesman for H.K. Mallak, Inc-,
on Aug. 3,1993, in Mankato, Minnesota;
• The theft of jewelry worth more than
5170,000 from representatives for
Nafco Gems, Ltd., and Mayfield's
Company on May 7, 1994, at the Sky
Harbor Airport, Phoenix, Arizona;
• The theft of jewelry, gemstones, cash
and other material having a total value
of more than $1.5 million from safe
deposit boxes at the Hyatt Regency
Hotel, Columbus, Ohio, on Aug. 27,
1994.
In two
other instances, the indictment alleges that the defendants attempted to steal:
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• a suitcase from a salesman for Solar
Diamonds, Inc., from a hotel room at the
Los Angeles Airport
Hilton on June 17, 1994, and
two jewelry cases, one
of which contained 15 fine watches, from the car of
a salesman for Baume
& Mercier on Oct. 2, 1996, in Chesterton, Indiana.
Hanhardt, Basinski,
Schiro and Brown allegedly conspired to commit this
theft between April
and October 1996. The indictment alleges that,
separately or
together, they traveled to Wisconsin and Indiana on occasion to
identify potential
opportunities to steal the watches, and they conducted
surveillance of the
Baume & Mercier salesman at his house and in his car.
On Oct. 2, 1996, while
the salesman was in the Spa Restaurant in Chesterton
and with Hanhardt,
Schiro and Brown serving as lookouts, Basinski entered
the trunk of the
salesman's car and removed two cases, one of which
contained the watches
worth approximately $58,000. Within a short time,
Basinski returned the
two cases to the trunk of the salesman's car.
As part of the racketeering conspiracy, the indictment alleges that
the defendants attended jewelry trade shows for wholesalers and retailers, some
not open to the public, to identify individuals and to evaluate the quality and
quantity of their jewelry lines. Among the shows they attended were:
§
the American Gem Trade Association's 1996 annual
convention in Tucson, Arizona;
§ the
Tucson Gem and Mineral Society's 1996 trade show in Tucson;
§ the
1996 Jeweler's Circular Keystone International Jewelry Show in Las
Vegas.
The defendants also kept and used various tools and instruments to
assist in gaining access to vehicles, trunks, ignitions, hotel rooms and safety
deposit boxes, to avoid detection or to escape law enforcement, including
locksmith tools, keymaking machines, related publications, automobile
instruction books, automobile keys, hotel keys, key blanks, lock picks,
"slim jims," smoke grenades, fake mustache and fake beard, key
cutting dies, wrenches and other hand tools, evasion devices, taser, cam set,
key cutters, bullet proof vests, cameras, listening devices, and key code
books. They
obtained
and made keys that opened vehicles, hotel rooms and safe deposit boxes used by
traveling jewelry salesmen, the indictment alleges.
Among the documents that the defendants allegedly obtained, created
and maintained as part of the conspiracy were specific, detailed and
accurate personal information on salesmen, their family members and their
residences; information relating to their businesses; information about
vehicles they used; travel itineraries and analyses including airlines used,
ticket numbers, travel dates, cities, hotels, travel agencies and rental car
companies used, number of miles driven, airline baggage claim tickets and hotel
bills; and credit card, bank and other account information, including credit
bureau reports on victims and potential victims.
The investigation was conducted by the FBI in Chicago and Phoenix.
The government is being represented by Assistant U.S. Attorneys John J. Scully
and John F. Podliska. The Jewelers' Security Alliance in New York City assisted
in the investigation.
if convicted, racketeering conspiracy carries a maximum penalty of 20
years in prison and a $250,000 fine, and conspiracy to commit interstate
transportation of stolen property carries a maximum penalty of five years in
prison and a $250,000 fine. As an alternative maximum fine, the Count may order
a fine totaling twice the gross loss to any victim or twice the gain to any
defendant, whichever is greater. The Court will determine the appropriate
sentence to be imposed under the United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and
is not evidence of guilt. The defendants are presumed innocent and are entitled
to a fair trial at which the United States has the burden of proving guilt
beyond a reasonable doubt-
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