Michele Sindona - fraudster and killer

Failed banker ordered murder of investigating lawyer

Michele Sindona - banker whose empire collapsed
after failure of Franklin National Bank in America

The shadowy banker Michele Sindona, who had links to underworld figures in Italy and America as well as prominent politicians, died in hospital in the Lombardy town of Voghera, 70km (43 miles) south of Milan, on this day in 1986.

His death, attributed to cyanide poisoning, came four days after he had been sentenced to life imprisonment for ordering the killing of a lawyer investigating the collapse of his $450 million financial empire.

His own lawyer claimed he had been murdered but although it was never established beyond doubt, the circumstances of his death, caused by drinking coffee laced with the poison at breakfast in Voghera's maximum-security prison, pointed towards suicide.

During his chequered career, which also saw him sentenced to 25 years' jail in America for fraud following the failure of the Franklin National Bank on Long Island, Sindona had links with Mafia bosses in Sicily and New York, with the illegal Propaganda Due masonic lodge and with the controversial head of the Vatican Bank, the American Archbishop, Paul Marcinkus.

His close ties with another Vatican Bank client, Roberto Calvi, gave rise to theories that both he and Calvi, whose body was found hanging from the underside of Blackfriars Bridge in London in 1980 following the collapse of the Banco Ambrosiano, of which he was president, were killed because they knew too much.

Roberto Calvi

Sindona's political associates included the former Italian prime minister, Giulio Andreotti, who hailed him as the "saviour of the lira" just weeks before the Franklin National Bank went down, with catastrophic consequences for the many banks and financial institutions in Italy that Sindona controlled.

He also enjoyed a friendship with the former American president, Richard Nixon. Ironically, through Italy's giant construction conglomerate, Società Generale Immobiliare, Sindona was the part-owner of the Watergate Building in Washington, which housed the Democratic National Committee office, the bugging of which led to Nixon's resignation and impeachment.

Born in Patti, a town on the northern coast of Sicily some 76km (47 miles) from Messina, the son of a florist, Sindona went to a Jesuit school, where he showed an aptitude for maths and economics. He attended Messina University, where he graduated in law in 1942 and completed a thesis on The Prince, Niccolò Machiavelli's 16th century treatise on political philosophy.

He moved to Milan in 1946 at the age of 26 and opened a tax consultancy business, soon gaining a reputation for his knowledge of tax havens and the export of capital.  He began to build capital and within 15 years had amassed a fortune through his shrewd investments, mainly in the banking sector.

He acquired the Banca Unione di Vaticano with the aid of London's Hambros Bank, then the Banca Privata Italiana.  In due course, he added controlling interests in the Wolff Bank of West Germany, the Finabank and Amincorn Banks of Switzerland, the Banca di Messina in his native Sicily and finally the Franklin National Bank.

Carlo Gambino, the New
York Mafia boss

His association with the Vatican Bank led to joint investments not only in the banking sector but in a chain of luxury hotels in Europe and a string of companies in the United States, including the Watergate real-estate development in Washington.

At the same time, though, as investigations later revealed, Sindona had become involved with the Cosa Nostra in Sicily and the Gambino crime family in New York, largely in the area of money laundering, and it transpired that a good deal of the capital he was investing to build his empire came from the proceeds of the Gambino family's heroin trafficking.

All of this went on unnoticed, however, until a sudden stock market crash in April 1974 left the Franklin National, the 20th largest bank in the United States, badly exposed.  In what became known as Il Crack Sindona, Franklin National's profits plunged by 98 per cent compared with the previous year, Sindona lost $40 million dollars and the domino effect brought down most of the other banks he had acquired.

Under pressure from the Gambinos to recover their money, Sindona promised to inject new capital up to the sum of $50 million but by October of that year the Franklin Bank had been declared insolvent and Sindona was being investigated for fraud.

Giorgio Ambrosoli - Sindona was jailed for life for arranging
the murder of the lawyer appointed to look into his affairs

Meanwhile, in Italy, the Bank of Italy had begun to look into Sindona's activities and ultimately a suspension of his banking empire was ordered and a liquidator, the lawyer Giorgio Ambrosoli, appointed.

Sindona urged Licio Gelli, the self-appointed 'grand master' of Propaganda Due, to use his influence and contacts to call off the process, but to no avail. Sindona is said also to have asked Roberto Calvi to provide the capital to rebuild his empire and, when rebuffed, began to leak information about Calvi's activities to a journalist, whose investigations were central to the ultimate collapse of Banco Ambrosiano.

Meanwhile, it was not long before Ambrosoli was receiving telephone calls offering bribes to facilitate the approval of documents proving that Sindona had acted in good faith, which would have exempted him from criminal proceedings and required the Italian government to use public money to bail out his ailing empire.

Ambrosoli refused all offers, however, and paid the price. On July 12, 1979, arriving home from his office in Milan, he was walking between his car and the door of his apartment when he was approached by three men, one of whom shot him five times in the chest.

Investigations concluded that the killer was an Italian-American, William Arico, who had been commissioned on behalf of Sindona by Roberto Venetucci, a heroin trafficker.

The following month, while awaiting trial in New York over the Franklin National Bank collapse, Sindona defied orders restricting his movement by returning to Sicily, where he threatened Enrico Cuccia, the president of Mediobanca and an opponent of any rescue plan for Sindona's empire, and asked Licio Gelli to put pressure on Giulio Andreotti to intervene, threatening to name five prominent individuals who had profited from illegal currency deals.

None of this worked, however, and on his return to the United States he gave himself up.  After his conviction for fraud relating to the Franklin Bank collapse, he was extradited to Italy and found guilty of ordering the murder of Ambrosoli.

In the days before his death, he repeatedly spoke about his fears of being poisoned. On the day of his poisoning, prison guards noted that he took his coffee from his cell into the bathroom, which he had not done before, and emerged gasping for breath and claiming he had been poisoned. This led investigators to conclude that, on the balance of probability, he had taken his own life.

Patti, the town in Sicily where Sindona was born

Travel tip:

Situated close to the ruins of the Greek city of Tyndaris (Tindari), the town of Patti, birthplace of Michele Sindona, has an old town characterized by narrow streets, stairways and squares, with the different styles that reflect the area's diverse cultural heritage, having been a settlement for Greek, Roman, Arab, Norman and Spanish people. There is a 12th-century cathedral that underwent reconstruction in the 15th century and again  after the earthquake of 1693.

Hotels in Patti by Booking.com

The remodelled cathedral in the town of Voghera in Lombardy

Travel tip:

Voghera, which has a castle erected by the Visconti family between 1335 and 1372 and an 11th century cathedral later remodelled in Baroque style, is famous for the term 'Casalinga di Voghera' - Voghera housewife - which is often used in the media and political discourse to refer to the average Italian citizen - not particularly well educated or sophisticated but working hard and striving through self-sacrifice to raise a family in the best way possible.  In England, an equivalent but now somewhat archaic phrase is 'the man on the Clapham omnibus', which was once regularly used in courtrooms to represent someone whose hypothetical opinion might determine whether an action was or was not reasonable.

More reading:

Unanswered questions over bizarre death of Roberto Calvi

Carlo Gambino - the Mafia boss who inspired fictional Godfather

Giulio Andreotti - Italy's political survivor

Also on this day:

1837: The birth 'La Castiglione' - countess, model and secret agent


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Bernardo Provenzano - Mafia boss

Head of Corleonesi clan dodged police for 43 years

Bernardo Provenzano after he was arrested in 2006
following 43 years on the run from police

Bernardo Provenzano, a Mafia boss who managed to evade the Sicilian police for 43 years after a warrant was issued for his arrest in 1963, was born on this day in 1933 in Corleone, the fabled town in the rugged countryside above Palermo that became famous for its association with Mario Puzo's novel The Godfather.

The former farm labourer, who rose through the ranks to become the overall head - il capo di tutti i capi - of the so-called Cosa Nostra, lived for years under the eyes of the authorities in an opulent 18th century villa in a prestigious Palermo suburb, although ultimately he took refuge in the hills, alternating between two remote peasant farmhouses.

He was finally captured and imprisoned in 2006 and died in the prisoners' ward of a Milan hospital 10 years later, aged 83.

Although Provenzano assumed power during one of the bloodiest periods in Mafia history, he was eventually credited with rescuing the organisation from the brink of collapse by turning away from the violent path followed by his predecessor as capo di tutti i capi, Salvatore 'Toto' Riina, and restoring traditional Mafia values.

Corleone - the small agricultural town in the hills above
Palermo that became a Mafia power hub

Provenzano was born and raised in Corleone, the small agricultural town that acquired mythical status after Puzo chose Vito Corleone as the name for his fictional mafia boss in The Godfather.

He left school at the age of 10 to work in the fields at the time of the Allied invasion of Sicily in the summer of 1943.  He and Riina knew each other as boys and they joined the Mafia as teenagers. Provenzano was an excellent shot and he and Riina were hired by the ambitious mobster Luciano Liggio as armed escorts in his cattle-rustling operation.

Provenzano and Riina were subsequently among the 14 gunmen who in 1958 helped Liggio seize control of the Corleonese clan by murdering its leader, Michele Navarra.  Provenzano was identified as one of the killers and implicated in several other murders during a power struggle that ensued within the Corleone clan following the Navarra slaying. A warrant for his arrest was issued in 1963 and he went into hiding.

He was seldom seen in public, refused to have his picture taken and never answered the telephone in person, so fearful was he that he would be found. Yet over the next four decades he would become one of the most powerful figures in organised crime in Italy.

For more than 40 years, these police mug shots were the
only pictures by which the fugitive boss could be identified

When Leggio was arrested and jailed in 1974, Riina became the boss of the Corleonese clan and chose Provenzano as his right-hand man.

Riina set his sights on taking over the Mafia throughout Sicily and on switching from traditional Mafia activities such as extortion and protection rackets to the heroin trade, which was far more lucrative. However, his ambitions met with fierce opposition from the Palermo families and sparked a civil war within the Cosa Nostra that claimed more than 1,000 lives.

Ultimately, Riina prevailed. But the bloodshed outraged public opinion, prompting a concerted crackdown on Mafia activities culminating in the “Maxi Trial” of 1986-87 that saw nearly 360 mobsters convicted.  Many were found guilty in absentia, including Riina and Provenzano.

Extraordinarily, Provenzano was all this time living in the spectacular 18th century Villa Valguarnara in Bagheria, which was his home for much of the 1980s and 1990s. He went to considerable lengths to keep himself invisible, never having a bank account or a telephone, communicating with associates by way of pizzini - typewritten coded notes folded into tiny squares - and travelling to meetings in an ambulance.

Riina's response to the "Maxi Trial" was to wage a new war on the State itself, in which high profile victims included the Euro MP and former Mayor of Palermo, Salvatore Lima, and Italy’s most prominent anti-Mafia judges, Giovanni Falcone and Paolo Borsellino, who were murdered in Sicily within the space of five months in 1992.

These deaths caused still more public outrage and in January 1993 Riina was finally tracked down and arrested.

The anti-State campaign continued after Riina's arrest with a series of bomb attacks in public places in mainland Italy.  Five people, including a baby girl, were killed in 1993 when a car bomb exploded outside the Uffizi Gallery in Florence.

The Torre dei Pulci, close to the Uffizi Gallery,
which took the brunt of the 1993 bomb attack

In the meantime, Provenzano had taken Riina's place as capo di tutti i capi. The bombings stopped, it is thought, because he saw the high levels of violence that characterised Riina's reign as being an impediment to Mafia operations, attracting unwanted attention from the authorities.

It is even suspected that it was Provenzano who tipped off the police, through intermediaries, about Riina's address, so that he could seize power and oversee a return to more traditional Mafia practices.

Despite Riina's arrest, Provenzano kept out of sight and for many years it was assumed he was dead. In fact, he was quietly rebuilding the organisation and restoring its financial power.

That he was alive came to light in January 2005 during the arrest of other suspected Mafiosi, when police discovered some of his type-written coded notes and, working on a tip-off from a supergrass, found him living in a shepherd’s refuge in the countryside outside Corleone.

He was arrested on April 11, 2006. Having been already convicted in absentia of several murders, including those of the judges Falcone and Borsellino, he was imprisoned with no requirement for a trial.

Paradoxically, for one who made his money from crimes supported by threats and violence, Provenzano was deeply religious. Associates described how his notes often included blessings or quotations from the bible, while he appeared at one meeting of Cosa Nostra bosses in 1992 dressed as a cardinal. When arrested, all that he took with him from the shepherd’s refuge were his medicine and his rosary.

Travel tip:

Corleone, a town of around 12,000 inhabitants in the province of Palermo, was once dominated by Arabs before falling into the hands of the Normans.  Its strategic position overlooking the main routes between Palermo and Agrigento meant it was on the frontline in many wars.  At one time the town had two castles and was encircled by a defensive wall.  Its association with the Mafia began in the 1960s following the outbreak of violence that followed the killing of Michele Navarra. The link was solidified when Mario Puzo decided his main character in The Godfather would be known as Vito Corleone after a United States immigration official processing the arrival of Vito Andolini mistook his place of origin for his surname.

Inside the cathedral at Monreale, just outside Palermo, with
its fabulous Byzantine mosaics

Travel tip:

Some of the most impressive buildings in Palermo were left behind following the period in which the Normans ruled after conquering Sicily in 1072. The Norman legacy was a blend of Romanesque architecture, Byzantine mosaics and Arabic domes.  Notable examples are the Palazzo dei Normanni on Piazza Indipendenza, where the Palatine Chapel features golden mosaics of scenes from the Bible, the Church of La Martorana in Piazza Bellini and, a little out of town, cathedral at Monreale, with ceilings and walls decorated by master mosaicists from Byzantium.


More reading:

How Giovane Falcone made taking on the Cosa Nostra his life's work

Paolo Borsellino - the other half of Sicily's dynamic duo of Mafia-busters

Lucky Luciano - mobster from Palermo who organised the gangs of New York

Also on this day:

1788: The death in Rome of Bonnie Prince Charlie, pretender to the English throne

1888: The death of the Saint, Don Bosco


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Giovanni Falcone - anti-Mafia crusader

Sicilian lawyer made life's work of taking on Cosa Nostra 

Giovanni Falcone (left), pictured with his fellow anti-Mafia
magistrate Paolo Borsellino. Both were murdered in 1992

Giovanni Falcone, who would become known as an anti-Mafia crusader during his career as a judge and prosecuting magistrate, was born on this day in 1939 in Palermo.

The son of a state clerk, he was raised in a poor district of the Sicilian city. Some of the boys with whom he played football in the street would go on to become Mafiosi but Falcone was determined from an early age that he would not be drawn into their world.

Educated at the local high school, he studied law at Palermo University. In 1966, at the age of 27, he was appointed a judge in Trapani, a crime-ridden port on the west coast of Sicily and began his lifelong quest to defeat the criminal organisation.

In time, Falcone became the Mafia's most feared enemy and by 1987, when he was the chief prosecutor at the so-called 'maxi-trial' in Palermo which convicted 342 members of the so-called Cosa Nostra, the likelihood he would be murdered meant he could not leave home without a heavily armed police escort.

He worked in a bomb-proof bunker underneath the city's law courts. His home was similarly protected and when he travelled between the two it was with a convoy of armoured police cars.

Yet he refused to be cowed, even when a wave of Mafia reprisals led to the deaths of many of his colleagues.  The first was Gaetano Costa, Palermo's chief magistrate, who was murdered shortly after signing 80 arrest warrants for Mafia bosses that Falcone's investigations had linked to mobsters in America.

The assassination of Boris Giuliano, the Head of Police in Palermo, soon followed, after which Falcone was assigned to a select pool of anti-Mafia judges and prosecutors.

In 1982 Carlo Alberto Dalla Chiesa, the carabinieri general who had smashed the Red Brigades, was despatched to Palermo to co-ordinate Rome's anti-Mafia policy. Only 100 days after taking office, he was machine-gunned to death in the street.

Falcone became effective head of the anti-Mafia drive after its co-ordinator, Judge Rocco Chinnici, was blown up by a car bomb in July 1983.

His work led to the dramatic 'maxi-trial' of 1986-87, in which 8,000 pages of evidence, much of it based on information passed on by pentiti - the Mafiosi turned informants - led to the conviction of 342 gang members.

They received sentences totalling 2,665 years in prison, including 19 life sentences, although the success of the operation was much undermined when all bar around 30 of those found guilty were later released on appeal, with doubts expressed over the validity of testimony from informants.

After the 'maxi-trial', Falcone had hoped to be appointed chief prosecutor in Palermo but was denied the opportunity.

Instead, he took a position in Rome with the Ministry of Justice, where he was successful in preparing a decree that overturned the judgment of the Supreme Court to quash so many of the 'maxi-trial' convictions and led to the re-arrest of many Mafia bosses.  In another judgment by the Supreme Court, in January 1992, the original convictions were upheld.

Falcone died four months later, on one of the visits to his home in Palermo he made every week. He was killed when a half-ton of explosives was detonated under a section of the coastal motorway he always used on his way from the airport. His wife, Francesca, died with him, along with three police officers.

The assassination had been ordered by the head of the Corleonesi faction of the Sicilian Mafia, Salvatore "Toto" Riina, who was arrested the following year and jailed for life.  Less than two months after Falcone's death, his friend and close associate in the anti-Mafia fight, the magistrate Paolo Borsellino, was killed by a car bomb in Palermo.

Gold mosaics line the ceilings of the Cappella Palatina,
one of Palermo's main tourist attractions 

Travel tip:

Despite its inevitable association with the criminal underworld, Palermo is an attractive tourist destination, a vibrant city with a wealth of history, culture, art, music and food. It has many outstanding restaurants as well as fine examples of Romanesque, Gothic and Baroque churches, palaces and buildings.  Top attractions include the extraordinary Cappella Palatina, featuring Byzantine mosaics decorated with gold leaf and precious stones.

Travel tip:

Sicily's most famous coastal resort is the clifftop town of Taormina, overlooking the Ionian coast. Full of restaurants and shops, with beaches nearby, it is rich in history. The Greek amphitheatre, with its panoramic view of Mount Etna and the coast, is used for concerts and plays, and the town's old streets are enclosed within medieval walls.

(Photo from Cappella Palatinia by Woodguy CC BY-SA 3.0)

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