Federal Investigation and Prosecution
At one point, Federal Prohibition Agents calculated that DeMayo was personally grossing more than $1,000,000.00 annually from the still operations. The U.S. Attorney General soon ordered the Federal Prohibition Agency and the Bureau of Narcotics (DeMayo had begun dealing heroin and other illegal narcotics) to investigate the Kansas City organization.
Unlike bosses in other major cities, DeMayo was heavily involved in the day-to-day operations of his organization. This involvement later made it easier for prosecutors to directly connect him to crimes. DeMayo was also arrogant enough to locate his headquarters in an office building directly across the street from the Federal Building downtown. When Prohibition agents set up surveillance on DeMayo's headquarters, they were able to use offices in the Federal Building itself.
Early efforts by agents to recruit informants were thwarted due to widespread fear of the mob. Eventually the agents recruited Gus West, who would play a key role in bringing down DeMayo. Using information supplied by West, Prohibition agents managed to introduce undercover agent James Kominakis to DeMayo. Kominakis played the role of a major Illinois bootlegger who wanted to buy large quantities of whiskey for sale in rural Illinois. In April 1927, Robert Carnahan, a DeMayo associate, sold Kominakis a small amount of whiskey and some counterfeit whiskey revenue stamps.
Kominakis returned to Kansas City a few days later and asked to buy more whiskey. DeMayo and Carnahan met Kominakis at a Kansas City warehouse and sold him 50 gallons of whiskey. With the sale completed, agents moved in and arrested both gangsters.
Read more about this topic: Frank De Mayo
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