The Stardust: Las Vegas’ Greatest Crime Scene – HT

 

 

 

A casino built on a dead man’s dream, a counting room where millions vanished into thin air, and a car bomb that lit up the Vegas night like a neon sign. The Stardust wasn’t just a hotel. It was the biggest skimming operation the FBI ever exposed. And when Hollywood needed to show the world what mobcrolled Las Vegas really looked like, they came here.

 This is where casino happened. This is where fortunes were stolen, lives were destroyed, and the American dream turned into America’s greatest crime scene. The Admiral’s last role, let me take you back to a man who built empires on water and watched them burn on land. His name was Tony Cornero, born Antonio Cornero Straa in northern Italy.

  His family brought him to America as a child, and he grew up with that immigrant hunger,  that need to prove something, to become something. During Prohibition, Tony found his calling. Rum running off the coast of Southern California. He was good at it. Made real money, the kind that makes you believe you’re smarter than the law.

 But the law caught up anyway. Federal prison for bootlegging. When he got out in 1931, Nevada had just legalized gambling. Divine timing. Tony and his brothers bought 12 acres near the edge of Las Vegas and built the Meadows Casino, one of the first seven licensed casinos in the city, a decade before anyone thought about the Flamingo or the Desert Inn.

But Tony had enemies. Lucky Luciano and Meer Lansky wanted their peace. When Tony refused to pay tribute to the New York families, the Meadows mysteriously burned down. The fire department would not even come. The casino was outside city limits. So Tony watched his dream turn to ash.

 That’s when people started calling him the admiral. He moved back to California and did something that would cement his legend. He bought ocean liners and turned them into floating casinos. The SS Rex and the SS Tango anchored 3 mi offshore where laws supposedly could not touch him. The Rex could hold 2,000 gamblers. French chefs, full orchestra, 25 cents for a water taxi ride, and you stepped into another world.

 Tony made $200,000 a month, a fortune in depression era America. But success makes you careless. In 1938, he got shot in the abdomen at his Beverly Hills home. He survived barely and California authorities kept coming after his ships. The Coast Guard seized the Rex in 1946. So Tony came back to Vegas. By 1954, the strip was transforming.

 The Sands, the Sahara, the Desert Inn. Tony saw the future written in neon and concrete. He wanted to build something no one could ignore. the biggest casino Las Vegas had ever seen. He bought 36 acres on the North Strip, paid $650,000, and started selling shares. He raised $6 million from investors across the country. There was just one problem.

 The Securities and Exchange Commission said he did not have approval. Nevada Governor Charles Russell looked at Tony’s criminal record and said he would never get a gaming license. Tony did not care. He kept building anyway. He called it the Stardust, Space Age,  and Futuristic, a name that promised something beyond this world.

 By July 1955, construction was 3/4 complete. Tony had personally spent $3 million. The dream was almost real, almost touchable. Then came July 31st, 1955. Tony went to the Desert Inn to play Craps. He had always loved the game and he always believed his luck would turn. He lost $37,000 that night. A dealer shortch changed him $25 on a chip.

 Tony got heated and started arguing. And then his heart stopped. The coroner said he was dead before he hit the floor. It was a massive heart attack at the craps table. Just like that, the admiral’s final voyage ended. The Stardust sat unfinished, a skeleton of steel and concrete. Tony’s vision was frozen mid construction.

The outfit takes over.  For 2 years, the Stardust sat in legal limbo. Creditors fighting, stockholders suing. Nobody sure what would happen to Tony’s dream. Then came Jake the Barber Factor, brother of cosmetics mogul Max Factor, a man with reported ties to the Chicago outfit.

 He and his wife bought out the project’s 3,000 stockholders in January 1958, settled the leans, brought in Moalids to run operations. There were whispers, always whispers in Vegas. People said Chicago money finished the Stardust, $3 million from Tony Icardo and Sam Janana. But whispers do not go in official documents. They just hang in the air like cigarette smoke. What mattered was this.

 On July 2nd, 1958, the Stardust opened its doors. 1,065 rooms, the world’s largest hotel. Not the fanciest, not the most expensive, but the biggest. You could stay for $6 a night. In 1958, that was nothing. That was Vegas saying, “Come on in. The house is playing.” The casino floor stretched 16,000 square ft. Massive for its time.

 a 140 foot bar running along the east wall. You could lose yourself in that space. Literally lose yourself. The pool was 105 ft long. The biggest  in Nevada. Everything about the Stardust was about scale, about making you feel small and the dream  feel infinite. But the real magic was in the showroom.

  The Cafe Continental, the most technically advanced stage in Las Vegas. Hydraulic lifts that could raise performers 10 feet above the floor, 30 ft below. A stage bigger than a basketball court with a swimming tank and an ice skating rink. Equipment that could generate rain and snow on demand. Opening night brought Leo to Paris.

 60 performers imported from France. Topless showg girls in feathers and sequins. It was spectacle. It was excess. It was everything Vegas promised to be. Governors came to the opening, senators, Hollywood celebrities. The guest list read like a who’s who of 1950s America. Everyone wanted to see what would rise from Tony Cornero’s unfinished dream.

 The facade featured a space age theme, stars and planets. The optimism of the atomic age mixed with the mystery of outer space. Sputnik had launched the year before. America was obsessed with the future. The Stardust represented that obsession in neon and stucco. In 1968, they installed the sign that would make the Stardust immortal.

Designed by Kermit Wayne and Paul Miller. 188 ft tall, 90 ft wide, 7,100 ft of neon tubing, 11,000 incandescent bulbs. A cantaliever so large it was visible three miles away in the desert night. The queen of the strip. That’s what they called it. But behind the stardust and the showg girls, something  else was happening.

 Something Tony Cornero never could have imagined. Enter the mob. By 1961, the Stardust management read like a rogus gallery of organized crime. Credit manager Hyman Goldbomb had seven known aliases and 14 criminal convictions. Casino manager Johnny Drew was a veteran associate of Al Capone. General manager Morris Kleinman had served three years for tax evasion.

 The Factors served as landlords. Modalitz’s operation ran the casino. And behind them, the Chicago Outfit, Milwaukee  Families, and Cleveland Syndicates all had their hands in the Stardust’s pockets. This was the golden age of the skim. Before computers tracked every dollar. Before surveillance cameras covered every square inch.

Before regulations made it impossible to steal. Back then,  money moved through casinos like water. And if you controlled the countroom, you could divert that water anywhere you  wanted. But running a mob casino required a special kind of man. someone who could make it profitable  while keeping everyone happy.

 Someone who understood the game. They sent for Gus Greenbomb. Gus was a Chicago boy who had come up through Meer Lansky’s organization. During Prohibition, he ran the wire service for the outfit in Phoenix. After Bugsy Seagull got himself killed in 1947, Greenbomb took over the Flamingo and turned it profitable within months.

 By 1955, he had retired to Phoenix. He was done with Vegas, done with the rackets. He wanted to spend time with his wife Bess, maybe die in bed instead of in a ditch. But Tony Aardo did not care what Gus wanted. In April 1955, Greenbomb’s sister-in-law was found dead. The message was clear. Come run the Stardust or more people you love will die.

  Greenbomb took the job. The Nevada Tax Commission did not like it. These were known criminals. But they also knew that without Greenbomb, the Stardust would fail. So in September 1955, they approved his license. And just like he had done at the Flamingo, Greenbomb turned things around. The casino stabilized.

 Money started  flowing. By early 1956, plans for a $2 million expansion were announced,  but running a mob casino took a toll. Gus’s drug use spiraled. His gambling got worse and somewhere along the way he started skimming from the  skim taking money that belonged to Chicago before it ever got counted. The outfit  noticed.

 They always noticed. There was one more problem. Among Green Bomb staff was an entertainment director named William Nelson. Except  that was not his real name. He was Willie Boff, a former mob enforcer turned federal informant who had testified against the Chicago outfit in the 1940s. In November 1955,  Willie Boff walked out to his car in Phoenix, turned the key, and was blown to pieces.

 Greenbomb knew what that meant. The clock was ticking on him, too. On the evening of December 3rd, 1958, Bess Greenbomb drove the family made home in their white Cadillac, just like she did every night. She did not know that death was already waiting at 11:15 West Monty Vista Road in Phoenix. When the maid returned the next morning, she found frozen groceries still sitting on the counter.

 Something was wrong. Inside, the scene  was savage. Best lay face down on a dean, her wrists tied with  a necktie, her skull crushed with a decorative bottle, her throat slashed with a 9-in butcher knife. Newspapers and towels had been placed under her body to soak up the blood.

 Upstairs, Gus lay in bed, his throat cut from ear to ear. The television was still on. A heating pad lay beside him. He had been killed in his sleep. The murders sent shock waves through Las Vegas and Phoenix. Some said it was Meer Lansky’s doing, punishment for Greenbomb’s erratic behavior and embezzlement. Others said Tony Aardo ordered the hit.

 Either way, the message was unmistakable. The mob does not give retirement packages, just blood  and silence. The Green Bomb murders were never solved. But the Stardust kept running. Ben Goofstein took over as  president. The Chicago outfits skimming operation continued without interruption. The Stardust rolled on. The glory  years.

If the 1950s were the Stardust’s birth, the 1960s were its adolescence. Wild, glamorous, and  unapologetically alive. This was when Las Vegas became Las Vegas. When the Rat Pack turned the strip into the coolest place on Earth, and while Frank, Dean, and Sammy made the Sands their home base, the Stardust had its own roster of legends.

 Liberace returned again and again. Elvis played here. Harry Bellafonte, Lewis Armstrong, Marlene Dietrich, Joan Crawford lounged by the pool. Orson Wells held court in the casino. Barbara Stryand, then an unknown, opened for Liberace in 1963. In 1960, the Rat Pack came to the Stardust for a different reason. They were filming Oceans 11, the original heist movie.

 In the film, Danny Ocean and his crew plan to rob five casinos in one night. The Stardust had its moment on screen, a piece of cinematic history. By 1966, The Stardust added a 12-story tower. In 1969, Dean Martin signed a deal to perform regularly and was given a 10% ownership stake. The Stardust wasn’t just a casino anymore.

 It was a cultural landmark. But the mob was still there, always there. In 1967, a federal grand jury indicted seven casino executives on tax evasion charges, including three partners from the Stardust. The IRS determined the casino had skimmed at least 23,000 in just 3 months. The case quietly went away. A couple executives paid small fines.

Business continued. That was Vegas in the 60s. Glamour on the surface, muscle underneath. Lefty Rosenthal’s masterpiece. In 1973, the Stardust was sold to Recreon Corporation. A year later, Recreon sold it to Argent Corporation, run by a San Diego real estate developer named Alan Glick.

 Young guy, 34 years old, cleancut, perfect frontman. Glick insisted he was legitimate, insisted he didn’t know about mob involvement. years later, he’d pass a polygraph test about it. But it didn’t matter what Glick knew or didn’t know because Argent Corporation was about to become the center of the largest casino skimming operation the FBI ever exposed.

 And the man who made it all work, the man who turned the Stardust into a finely tuned money printing machine for the mob. His name was Frank Rosenthal. They called him Lefty. Frank Rosenthal was born in Chicago in 1929. A Jewish kid who grew up betting on sports in the bleachers of Wrigley Field. His father owned raceh horses.

Frank learned odds and percentages before he learned algebra. By the time he was 40, Frank Rosenthal was one of the greatest living experts on sports gambling. That’s not me saying it. That’s Sports Illustrated. The man could read a game like Mozart read sheet music. He saw patterns no one else saw. Calculated angles that didn’t exist until he created them.

The Chicago outfit noticed. Of course, they noticed. A man who could predict outcomes and move money. That’s exactly who you want running your casinos. In 1974, Frank Rosenthal joined the Stardust as an executive consultant to Alan Glick. No license, no official title, just a quarter million a year to advise the chairman.

 Rosenthal actually ran four casinos simultaneously, the Stardust, the Fremont, the Hosienda, and the Marina. The Stardust was his command post, his masterpiece, and he revolutionized the industry. Frank Rosenthal created the first sports book that operated from within a casino. Before Lefty, serious sports betting happened in back rooms and bookie joints.

 Rosenthal brought it to the casino floor, made it legitimate, made it glamorous. The Stardust became the premier destination for sports gambling in America. He hired female blackjack dealers, the first casino on the strip to do it systematically. Controversial at the time,  some said degrading, some said progressive. What mattered was that it worked.

revenue  doubled in one year. Rosenthal demanded perfection in everything. There’s a story that he required each blueberry muffin baked in Stardust kitchens  to have an equal number of blueberries. That’s not a legend. He confirmed  it himself. Get caught cheating at a table game.

 Your hand got crushed with a rubber mallet. Put your feet on a gaming table. You went out a window head first. Not a door, a window. Insult Rosenthal or threaten him. You got beaten to near death while he stood over you smoking a cigarette, sipping sparkling water. Even had his own talk show, the Frank Rosenthal Show, taped at the Stardust.

 Frank Sinatra appeared as a guest. Bob Hope, Wayne Newton, Liberace, OJ Simpson. It was the first time Sinatra ever did a talk show. Rosenthal made it happen. But while Rosenthal was revolutionizing casino operations in public, he was orchestrating the biggest theft in Las Vegas history in private, the skim. The scheme worked like this.

 Money would come through the casino cage. Cash from table games, from slots, from the sports book. Before it got counted for tax purposes, trusted men would pull it aside, skim it off the top. They would undercount the coins by rigging the weighing machines, divert cash through hidden routes and secret compartments. Then the money got transported to mob bosses in other cities.

 Chicago got 40,000 a month. Milwaukee took their share. Cleveland,  Kansas City. All the families that had invested in Argent Corporation wanted their returns. Jay Vandermark supervised the slot  machines. He compromised the coin weighing equipment. made millions disappear into thin air. Between 1974 and 1979, Argent corporations skimmed somewhere between seven and 15 million dollars.

 The largest  casino skim operation the FBI ever uncovered. Frank Rosenthal claimed he knew nothing about it. “If I were guilty, I would have been charged,” he said later. “I submitted myself to endless hours of interviews. if they had something, they would have dropped the hammer on me. And he was  right.

 Despite suspicions, despite federal documents implying his involvement,  Frank Rosenthal was never arrested or indicted for the skimming operation.  He never testified in the 1986 trial. He maintained until  the day he died that his mob associations were strictly social. But the Nevada Gaming Control Board  did not need a conviction.

They just needed to know he was running casinos without a license. In 1976,  they held hearings. They told Rosenthal he needed to apply for a key employee license. He refused. He said his job was  entertainment and consulting, not gaming. They denied him anyway. He appealed to  state court and he won.

 He appealed to the Nevada Supreme  Court in 1980 and he lost. Frank Rosenthal could no longer have anything to do with gambling in Las Vegas, but he did not leave.  He kept hosting his talk show, kept working as entertainment director, kept pushing the boundaries of what the gaming commission would tolerate.

 And while all this legal drama unfolded, his personal life was falling apart. Her name was Jerry McGee, former showgirl, beautiful, damaged. Frank fell for her hard. They married, had two children. He gave her 2 million in cash and a million in jewelry. trusted her completely. But Jerry had a past, a hustler named Lester Diamond, an ex-boyfriend who never really became an ex.

 The kind of relationship that poisons everything around it. Frank’s friend Tony the Ant Spelotro ran security for the Chicago Outfit in Vegas. Tony the Ant Spelotro, 5’5, of pure  violence. He and his hole-in-the-wall gang specialized in burglaries and home invasions. Spelotro was supposed to protect Frank and protect the skim.

 Instead, Spelotro started an affair with Jerry. He had crossed the line and the skim was no longer safe.  Frank found out in the final weeks of their marriage. The betrayal broke something in him. And then the FBI investigation went public. Federal agents raiding properties. Grand jury indictments. The whole skimming operation exposed for the world to see.

15 people indicted in 1983 connected to Chicago, Milwaukee, Cleveland, and Kansas City mob families. The biggest  organized crime bust in Vegas history. Jerry overdosed and died in Los Angeles.  Some said drugs. Some said it was more complicated than that. The details  stayed fuzzy, and Frank Rosenthal knew his time was running out. The car bomb.

 October 4th, 1982.  Frank Rosenthal left Tony Roma’s restaurant on East Sahara Avenue. Got into his 1981 Cadillac Elderorado. Put the key in the ignition. A bomb exploded beneath the car. The fireball lit up the night. Witnesses heard Frank screaming, “They’re [snorts] trying to kill me.” as he crawled from the burning wreckage.

 He survived. The only reason his specific Cadillac model had a metal plate that shielded him from the blast. Pure chance. Pure luck. The kind of thing that makes you believe  in fate. Nobody was ever charged for the bombing. Frank claimed he never knew who did it. But most people figured it was the Mob.

Revenge for  the heat the FBI investigation brought. Punishment for Spelotro’s skimming that even the bosses didn’t know about. A message that even Lefty Rosenthal was not untouchable. Frank left Las Vegas 6 months later, took his two kids to California, then to Florida, ran a sports bar, worked as a consultant for offshore sports betting companies, lived quietly.

 He died in 2008 of a heart attack. He was 79 years old. Tony Spelotro was not so lucky. In 1986, he and his brother were beaten to death and buried in an Indiana cornfield. The outfit’s final accounting. Casino. Years later, in 1995, Martin Scorsesei made a movie Casino based on Nicholas Pelgi’s book about Frank Rosenthal and the Stardust Operation.

 Robert Dairo played Sam Ace Rothstein, the brilliant casino manager with mob connections. Sharon Stone played Ginger McKenna, the troubled showgirl wife. Joe Peshy played Nikki Santoro,  the violent enforcer. The performances were brilliant. They changed the names, called the casino the Tangiers instead of the Stardust.  But everyone knew what they were watching.

 Everyone recognized the countroom scenes, the car bombing, the personal betrayals, the empire built on sand, and held together by fear. Frank Rosenthal said Dairo’s portrayal was about a seven on a scale of 1 to 10. Close, but not quite perfect. He would not comment on Sharon Stone’s version of his ex-wife. Some wounds do not heal.

Casino became a classic, one of the greatest mob films ever made. And the Stardust became immortal in a way Tony Cornero never imagined. Not as the world’s biggest hotel, not as a showcase for topless showgirls, but as the symbol of mobcontrolled Vegas. The place where millions got stolen and lives got destroyed.

 and the American dream turned into the American crime scene. The movie made people curious. They would drive past the Stardust and wonder what really happened there. Which rooms, which count rooms, which tables? But by then, the Stardust was already dying. The long decline. The Boyd family bought the Stardust in 1985. Bill Boyd tried to restore some dignity to the property.

 They added a 32-story hotel tower in 1990, but Vegas was changing. The mega resorts were coming. Steve Wyn opened the Mirage in 1989 with a volcano out front. The Luxer, the Excalibur, the MGM Grand. Each property bigger and more expensive than the last. The Stardust represented old Vegas, the Vegas of $6 rooms, cheap buffets, and table minimums you could afford.

 The Vegas where working people came to feel like high rollers for a weekend. New Vegas did not want working people. It wanted whales, convention groups, corporate credit cards. Leo de Paris finally closed in 1991 after 33 years. It had been the longest running show in Vegas history. They replaced it with Sief Freed and Royy’s Magic Show.

 But even that could not stop the bleeding. Wayne Newton became the resident headliner from 2000 to 2005. He did his best to bring crowds. Bill Boyd called the Stardust Old Las Vegas and marketed it as a retro experience. Some people loved it for that. They love the nostalgia, the reminder of what Vegas used to be.

 But nostalgia does not pay the electric bill. By 2006, the Stardust had gone from the world’s largest hotel to one of the smallest properties on the strip. 1,552 rooms, 85,000 square ft of casino. The land was worth more than the building, 60 acres on the north strip, prime real estate. Boyd Gaming saw the writing on the wall. In January 2006, they announced the Stardust would close.

 They would demolish it and build something new. Echelon Place, a $4.4 billion mega resort. The future replacing the past. implosion. The Stardust closed its doors for the last time on November 1st, 2006. 48 years of history, 48 years of mobsters and showg girls need piaz in tourists and dreams. The iconic neon sign came down in February 2007.

 It was given to the neon museum where old Vegas goes to be remembered. Then came March 13th, 2007, 2:34 in the morning. Thousands of people gathered on the strip and in nearby parking lots. Tourists, locals, people who had worked at the Stardust, people who had gotten married there, people who had won and lost fortunes there.

 A 4-minute fireworks show lit up the sky. A celebration and a funeral at the same time. Then came the countdown. 428 lb of explosives detonated simultaneously. The 32story tower and the 9-story tower collapsed into themselves. More than 500,000 tons of concrete and steel fell at the speed of gravity. The dust cloud rose like an atomic mushroom.

 Gray ash blanketed the strip. 20 water cannons tried to keep it down. Las Vegas Boulevard shut down temporarily. The cloud hung in the air for over 20 minutes before finally disappearing into the desert wind. The implosion was overseen by Controlled Demolition Incorporated, the same company that had handled every prior resort implosion on the strip.

 They knew what they were doing. It was clean, professional, complete. In those 20 minutes of dust and debris, an erra ended. The era of mob control. The era of skimming and murder disguised as entertainment. The era when casinos were built by dreamers with criminal pasts and maintained by criminals with impossible dreams. Boyd gaming had big plans for Echelon Place.

Multiple hotels, restaurants,  entertainment, a project that would revitalize the North Strip. Then came the Great Recession of 2008. The economy collapsed. Credit dried up. Construction stopped. The site sat vacant. A hole in the ground where the Stardust used to stand. What remains?  In 2013, Boyd sold the unfinished Echelon project to Genting Group, a Malaysian casino conglomerate.

 They had different plans, different dreams. They called it Resorts World Las Vegas. And after 14 years of waiting, after multiple delays, design  changes, a pandemic, and even a lawsuit from Win Resorts, Resorts World finally opened on June 24th, 2021.  It cost $4.3 billion. the most expensive resort property ever developed in Las Vegas.

 3,500 rooms, a 117,000 square ft  casino, a 5,000 seat theater, everything the Stardust was not. But inside, near the Las Vegas Boulevard entrance, they installed something that connects past to present,  a replica of the Stardust sign. 2,800 lb, 1,500 LED lights,  more than a mile of wiring. Not the original.

 The original sits  in pieces at the Neon Museum downtown, but a tribute, an acknowledgement that this ground has history, that the  Stardust’s Stardust still settles here. They put it near a sports lounge, a nod to Frank Rosenthal’s innovation. The first sports book integrated into a casino floor started at the Stardust.

  Now, every casino in Vegas has one. And if you go to the Orleans Casino,  also owned by Boyd Gaming, you can touch actual history. Slot machines from the Stardust. Still working, still  taking money, still giving some back. The Neon Museum preserves the Queen  of the Strip in sections throughout their neon boneyard.

 That massive sign, those exploding stars. You can stand in  front of it at sunset and remember when Vegas was different. When the neon meant something more than decoration,  when it meant possibility, the stardust never became what Tony Cornero dreamed. He died before opening night, but it became something else, something darker and stranger and more American than any dream.

 It became the proving ground for how organized crime could run a legitimate business while stealing millions right under everyone’s noses.

 

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