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According to conference rules, the Jewish delegates could not vote on Cosa Nostra rules or policies; however, the Jewish crime bosses were allowed input on any joint business ventures, such as the Flamingo Hotel.
Luciano opened the Havana Conference by discussing a topic that would greatly affect his authority within the American Mafia; the position of " capo di tutti capi " or "boss of all bosses".
The last official boss of all bosses had been Salvatore Maranzano , who was murdered in September A board of directors, commonly called the "Commission", had been formed to oversee criminal activities, control rules, and set policies.
Now Luciano could easily have declared himself as Maranzano's heir in ; instead, Luciano decided to exercise control behind the scenes. This arrangement had worked until Vito Genovese's return from Italy.
Officially, Genovese was now just a caporegime; however, he had made it clear that he intended to take control of the Luciano crime family.
Since Luciano's deportation in , Luciano ally Frank Costello had been the acting boss of the Luciano family. As a result, tensions between the Costello and Genovese factions had started to fester.
Luciano had no intention of stepping down as family boss; he had to do something about Genovese. Luciano also realized that Genovese threatened his overall authority and influence within the American mafia, probably with support from other crime bosses.
Therefore, Luciano decided to resurrect the boss of all bosses position and claim it for himself. He hoped the other bosses would support him, either by officially affirming the title or at least by acknowledging that he was still "First Amongst Equals".
At the conference, Luciano allegedly presented the motion to retain his position as the top boss in La Cosa Nostra.
Anastasia voted with Luciano because he felt threatened by Genovese's attempts to muscle in on his waterfront rackets. Checkmated by the Luciano-Costello-Anastasia alliance, Genovese was forced to swallow his ambitions and plan for the future.
To further embarrass Genovese, Luciano encouraged Anastasia and Genovese to settle their differences and shake hands in front of the other bosses.
This symbolic gesture was meant to prevent another bloody gang war such as the Castellammarese War of — With Luciano solidifying his personal position and squashing Genovese's ambition for now, Luciano brought up discussion of the mob's narcotics operations in the United States.
One of the key topics at the Havana Convention was the global narcotics trade and the mob's operations in the United States.
A longstanding myth has been the supposed refusal of Luciano and the Cosa Nostra to deal in narcotics.
In reality, only a few bosses such as Frank Costello and the other bosses who controlled lucrative gambling empires opposed narcotics.
The anti-drug faction believed that the Cosa Nostra did not need narcotics profits, that narcotics brought unwanted law enforcement and media attention, and that the general public considered it to be a very harmful activity unlike gambling.
The pro-drug faction said that narcotics were far more profitable than any other illegal activity. Furthermore, if the Cosa Nostra ignored the drug trade, other criminal organizations would jump in and eventually diminish the Cosa Nostra's power and influence.
Luciano himself had a long involvement in the drug trade, starting as a smalltime street dealer in the late s. Since the s, La Cosa Nostra had been involved in drug importation heroin , cocaine , and marijuana into North America.
The American mob's longtime association with the government of Cuba concerning gambling interests such as casinos along with their legitimate business investments on the Caribbean island put them in a position to use their political and underworld connections to make Cuba one of their narcotics importation layovers or smuggling points where the drugs could be stored and then placed on sea vessels before they continued on to Canada and United States via Montreal and Florida among the ports used by Luciano's associates.
Luciano made connections with Sicily's biggest bosses such as Don Calogero "Calo" Vizzini of Villalba who assisted the Allies' invasion of Sicily and had the greatest political connections of all the Sicilian bosses.
Also, Don Pasquale Ania, a powerful boss in Palermo who had connections to legitimate pharmaceutical companies because large-scale heroin manufacturing in Italy was legal at the time.
During the Havana Conference, Luciano detailed the proposed drugs network to the bosses. The narcotics shipped to the New York docks would be overseen by the Luciano crime family later the Genovese and the Mangano crime family later the Gambino.
In Tampa, the narcotics shipments would be overseen by the Trafficante crime family led by Santo Trafficante, Jr.
The Havana Convention delegates voted to approve the plan. Luciano built a massive drug organization spanning Italy and America. These East Coast contacts would then distribute the drugs all along the East Coast.
At first the Mafia's operation was one of many individual operations connected or affiliated to the French-Corsican Mob or Unione Corse 's famous "French Connection" heroin distribution ring.
By the late s the Sicilians and Americans organized a joint U. This famous joint U. Salvatore and Ugo Caneba assisted Luciano and were the overseers of the famous heroin operation they controlled from mainland Italy to the United States, the "Caneba Network" which supplied high grade pharmaceutical quality heroin.
Luciano's narcotics network was big and complex and he had many of his old, deported former U. The main drug imported by Luciano's network at the time was heroin and the main sources were French underworld "Clans" that made up the core of the Unione Corse Syndicate, or French Mob.
Auguste Joseph Ricord was another boss that became part of the Unione Corse in the ss. These two "Clans" ruled the French underworld from the late s to the late s, supplying Luciano and his mafia allies with large amounts of heroin until the heroin ring known as the " French Connection " started to crumble in with the arrest of one of its biggest bosses, Auguste Joseph Ricord.
The Luciano narcotics empire continued to grow and prosper with the help of his U. Many of Luciano's partners in the narcotics empire were "Havana Conference" delegates such as Joseph "The Old Man" Profaci who was once the biggest importer of olive oil and tomato paste in the United States and quietly used his food importation business to smuggle narcotics for decades, Gaetano "Tommy Brown" Lucchese , a longtime Luciano ally from their days as children in the streets of New York and who along with his Lucchese crime family 's narcotics distribution arm, the th St.
Crew which controlled all heroin distribution in Harlem, New York. Without a doubt one of the architects of the American heroin network and a partner of Luciano is well known and powerful New York mafia boss, Joseph "Joe Bananas" Bonanno , the patriarch of the Bonanno crime family , who along with the assistance of his cousin, Buffalo crime family boss Stefano "The Undertaker" Magaddino led the American mafia's expansion into Canada.
Bonanno's and Magaddino's crime families in New York and Buffalo opened up Montreal and Toronto in the s as satellite groups or individual operations connected with the famous "French Connection", but eventually the satellite groups would grow into their own powerful crime families and control massive narcotics distribution networks that still operate even today, all of the narcotics networks mentioned help destroy the myth that Charlie Luciano and La Cosa Nostra were against narcotics.
When Cuban President Fulgencio Batista y Zaldivar was eventually overthrown by Fidel Castro in , the mob had to look elsewhere for a landing and storage facility for their narcotics shipments.
In the mids, the New York and Chicago crime families had been sent out west to set up and oversee a race wire service, gambling activities in Los Angeles and Nevada , and supervise narcotics shipments from Mexico.
In a short while, Benjamin "Bugsy" Siegel had become a very popular and visible figure in Hollywood 's most glamorous circles.
By the mids, it was an unfinished dream deferred. This Flamingo Hotel project became Siegel's obsession. Siegel persuaded his longtime friend and business associate Meyer Lansky to help him sell New York and Chicago crime bosses on investing in this project.
Siegel promised the bosses that the hotel and casino would be a smart and profitable investment. However, the Flamingo project immediately ran into problems.
Siegel appointed his girlfriend Virginia Hill as a project overseer. As a result, contractors were stealing Siegel blind; they would sell him materials one day, then steal them from the building site at night, then resell them to Siegel the next day.
To make matters worse, the bosses suspected Siegel and Hill of stealing project money. Lansky and the bosses had discovered that Hill was taking frequent trips to Zürich , Switzerland and depositing money in a bank account.
They suspected that Siegel was skimming money and might flee the country if the Flamingo failed. Following a discussion, the delegates voted to execute Siegel.
The actual hit would be given to Jack Dragna , the Los Angeles crime family boss. Dragna, who despised Siegel, then gave the contract to Mob hitman, John "Frankie" Carbo , a Lucchese crime family soldier.
However, at the last moment, Siegel got a reprieve. The partly completed Flamingo was scheduled to open December Longtime Siegel friend Lansky convinced the delegates to see how the hotel did in its opening.
The delegates agreed and then took a break for Christmas Day. The delegates soon learned that the Flamingo opening night was a flop.
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