December 3rd, 1958. Early morning, 11:15 West Monte Vista Road, Phoenix, Arizona. Pearl Ray pulls up to the Greenbomb house for her morning shift. She has been working here long enough to know the rhythms of this household. The white Cadillac that Bess Greenbomb drives every evening to take Pearl home is in the driveway. This is normal.
What is not normal is the frozen food sitting out on the kitchen counter. Bess is meticulous. She does not leave groceries out overnight. Pearl calls out. The house does not answer. She walks further in. Bess Greenbound is face down on the living room. Devon, her wrists are bound behind her back with a cheap neck tie.
Her skull has been crushed with a decorative bottle taken from a shelf in the same room. Her throat has been cut with a 9-in butcher knife. A plastic bag sits at her feet. Her dress shoes are still on. Before cutting her throat, the killers padded her head with newspaper and a towel, specifically to avoid staining the furniture. Pearl runs.
She does not see the bedroom. When she learns what is in the bedroom, she is hospitalized for shock. In the bedroom, Gus Greenbalm is in bed, beige silk pajamas. The heating pad he uses for his chronic back pain is still running. The television is still on. He has been nearly decapitated. The same 9-in butcher knife that killed his wife has been drawn so deeply across his throat that the medical examiner notes he came within millimeters of being fully separated from his head.
He is 65 years old. He built the casino infrastructure that turned Las Vegas into the most profitable city in America. He saved Bugsy Seagull’s Flamingo from bankruptcy within months of Seagull’s murder. He was the man the mob called the mayor of paradise. He turned down the wrong job, accepted it when the mob killed someone to change his mind, spent 3 years running a second casino while his life fell apart around him, and died in his own bed because he made one fatal mistake in a world where fatal mistakes are the only kind. The crime scene photograph makes the front page of newspapers across America. Nobody is ever arrested. Nobody is ever charged. The case remains officially unsolved to this day. This is the full story of Gus Greenbalm and every detail of it. The sister-in-law, the heroine, the car bomb in the driveway, the Thanksgiving
dinner, the Tucson meeting 5 days later is documented, verified, and more brutal than anything Hollywood has ever made about Las Vegas. February 26th, 1893, Chicago, Illinois. Gustav Greenbound is born to Herman Greenbound, a tor and Sarah Goldberger, both immigrants from the AustroHungarian Empire.
The family moves between Chicago, New York, and Nebraska in the early years before eventually settling back in Illinois. It is on New York’s Lower East Side in the mid 1910s that Gus Greenbound finds the thing that will define the next 40 years of his life. His name is Maya Lansky. They are close in age, close in background, close in the specific mathematical intelligence that makes certain men naturally suited to the architecture of illegal money, the ability to see in real time where cash is flowing, where it should be redirected, and how to build systems that generate revenue without generating paper trails. Lansky is the financial genius. Greenbound is the operational one, the man who can take Lansky’s system and run it on the ground in cities where Lansky himself cannot be present. They are associates for the next four decades, their names
permanently linked in the construction of Las Vegas as the mob’s most profitable investment. In 1928, Al Capone sends Greenbalm to Phoenix, Arizona. He is 35 years old. His assignment is to manage the southwest division of the transameric race wire service from an office in the lures tower in downtown Phoenix.
The wire service is the central nervous system of the bookmaking industry. It distributes realtime horse racing results to every book maker, bookie, and gambling room in the region. You cannot settle a bet on a horse race without knowing the result. Greenbound controls the results, which means every bookmaker in Arizona pays Greenbound for the privilege of knowing who won.
He builds Phoenix into the Chicago outfit’s most profitable Southwest operation over the next 15 years. He develops relationships with politicians, businessmen, law enforcement, and civic leaders that no other mob figure in the state comes close to matching. He allegedly cultivates a close friendship with a young Arizona politician named Barry Goldwater, who will later become a United States senator and the Republican presidential candidate in 1964.
Greenbound donates to Goldwater’s political campaigns. They are photographed together at civic events. Whether Goldwater fully understands the specific nature of Greenbalm’s business and the depth of his criminal connections has never been definitively established. What is established is that Greenbound operates in the highest social and political circles Phoenix has to offer for three decades while running illegal gambling operations in the same city simultaneously without serious legal consequence. He is, as one contemporary account describes him, a man who wore silk pajamas and steel underneath. Then Las Vegas arrives. In the early 1940s, Greenbound begins acquiring interests in the city that the mob is starting to understand will be the most important criminal investment opportunity in American history. He and Mo Sedway take control of the Elcortez
Casino in downtown Las Vegas in 1945. The following year, through his connections to Bugsy Seagull, Greenbound becomes involved in the Flamingo. Seagull’s Flamingo is the most ambitious construction project in American organized crime history and by early 1947, the most catastrophic financial disaster.
He has gone $6 million over budget. He has been skimming construction funds with his girlfriend Virginia Hill, who has been making regular trips to Zurich to deposit cash in Swiss accounts. The syndicate’s money is disappearing into a building that will not open on schedule, and a woman’s overseas banking arrangements.
The mob has run out of patience. On June 20th, 1947, nine bullets come through the picture window of Virginia Hills Beverly Hills living room while Seagull reads the newspaper. He is dead before anyone reaches him. Within hours before the blood on the Beverly Hills sofa has dried, before the Los Angeles detectives have finished photographing the scene, Mo Sedway and Gus Greenbalm walk through the front door of the Flamingo Hotel in Las Vegas and take control.
No announcement, no ceremony, no paperwork presented. They simply walk in and begin running the casino that belongs to their organization. It is the most audacious corporate succession in Las Vegas history. The man being replaced is still warm. What Greenbomb does next establishes his reputation permanently.
The Flamingo is drowning in debt. Its staff is demoralized. Its operations are chaotic. Greenbound brings the same qualities to the Flamingo that he brought to the Transameric Wire Service in Phoenix. precision, control, and the specific genius for making numbers work that had made him indispensable to Lansky and Capone since the 1920s.
He secures financing through Valley National Bank, the first bank in American history, to lend money to a mobcrolled casino. He restructures the operations floor by floor. Within several months, the Flamingo is out of debt. Within the first year, it generates $4 million in annual profit. The mob’s most embarrassing investment becomes its most profitable Las Vegas asset. And Gus Greenbalm is the reason.
He controls multiple syndicate casinos and bookmaking operations across Arizona and Nevada through the early 1950s. He is given the informal title that nobody officially bestows, but everybody uses the mayor of Paradise. Paradise Township is the unincorporated Clark County district that contains the Las Vegas strip, not technically within Las Vegas city limits.
The man who runs it is not an elected official. He is a Jewish bookmaker from Chicago who was sent to Phoenix by Al Capone in 1928 and who turned the mob’s investment in Las Vegas from a catastrophe into a cash machine. He also makes one decision during this period that some investigators later argue sealed his fate.
He hires a new entertainment director for the Riviera named William Nelson. William Nelson is the assumed identity of Willie Beoff, a former Chicago outfit labor fixer who had extorted millions from Hollywood studios in the 1930s, been convicted, and then testified against his former Chicago associates to save himself from a longer sentence.
Four Chicago mob bosses went to federal prison partly because of Beoff’s testimony. Hiring the man who betrayed the Chicago outfit was not, from Tony Accardo’s perspective, a neutral act. In early 1955, Gus Greenbau makes a decision that everyone around him understands is correct and that the Chicago outfit will not accept.
He wants to retire. He is 62 years old. His body is failing him. Chronic back pain, ulcers, recurring asthma. His closest operational partner, Mo Sedway, died of a heart attack in 1952, leaving a hole in his daily working life that has not been filled. He has been running criminal operations since Al Capone was in power and he is done.
He wants to go back to Phoenix permanently, play golf with Barry Goldwater at the Arizona Club and let someone younger manage the chaos of Las Vegas casino operations. On April 20th, 1955, the Riviera Hotel opens on the strip. It is the first high-rise on the Las Vegas strip, nine stories, more glamorous than anything built before it.
Liberace plays the opening night for $50,000 a week, the most expensive entertainment contract in Las Vegas history at that point. 3 months later, the Riviera is effectively bankrupt, drowning in $1.4 million in construction bills and $800,000 in trade creditor debts.
Tony Icardo, the Chicago Outfits boss, a man who has spent 30 years as one of the most powerful organized crime figures in America without ever spending a single night in prison, wants Greenbound to take it. He wants the man who saved the flamingo to save the Riviera. Greenbomb says no. Aardo asks again. Greenbomb says no again.
Then the message arrives that requires no words. April 1955. Gus’s brother, Charlie Greenbound, comes home to his Phoenix house. His wife, Leon Mloud Greenbound, is on the floor. She is 75 years old. She has been suffocated. The medical examiner’s report uses the specific clinical language by human hand over her nose and mouth.
Nothing is missing from the house. No forced entry, no robbery, no motive that any ordinary detective framework can explain. Leone had been telling her friends, her family, and her hired help for months that she feared for her life from men connected to her brother-in-law Gus. Nobody had taken the warning seriously enough.
Nobody had done anything about it. She is dead. There are no suspects. There are no arrests. There is only the body of a 75year-old woman on the floor of her Phoenix home and a message delivered with the specific clarity that only the mob can produce. You are not retired. You work for us. You always have.
And if you continue to decline, the next person on this floor will be someone closer to you than your sister-in-law. Gus Greenbalm accepts the Riviera. He brings his team. He rebuilds the hotel’s financial operations with the same methodical competence he applied to the flamingo. Within three years, the Riviera is profitable.
Akardo has what he wanted. And Greenbalm has what he always had, a job he cannot leave, working for people who will kill his family if he declines. Then Willie Bof dies. November 4th, 1955, Phoenix, Arizona. Bof off living under the name William Nelson, the man Greenbalm had hired as his entertainment director, the man whose Senate testimony had put four Chicago bosses in federal prison, walks out of his home on Bethany Home Road to his pickup truck in the driveway. He turns the key.
A bomb wired beneath the starter detonates. The blast shatters windows three blocks away. Parts of Beoff and his truck are distributed across the driveway. Barry Goldwater, who had been friends with Beoff and vacationed with him and his wife just a month earlier, attends the funeral and tells the press he had no idea who Beoff really was.
Greenbomb loses his closest friend to a car bomb in a Phoenix driveway. He understands in a way that is no longer abstract or professional, but personally devastating exactly what the world he has spent his entire adult life inside actually is. He has been working for these people since he was 35 years old.
He has made them tens of millions of dollars. He has saved their most important Las Vegas investment twice. He has run their Southwest operations for 30 years without a serious legal problem. He has seen what they did to Willie Beoff. He has seen what they did to Leon. and he is now in his 60s running a Las Vegas casino he never wanted with a back that requires constant pain management in a world where the only people he trusted are dead he begins using heroin to manage the back pain not occasionally every day he drinks he gamles with the recklessness of a man who has stopped calculating odds because he no longer believes the future is something he is managing toward womanizes his behavior havior at the Riviera becomes erratic, unpredictable decisions, sloppy operational choices. The kind of management that loses the confidence of
the people around him and raises questions from the men in Chicago who are watching the numbers and he begins to skim, not from the Riviera’s official reported revenues that would have been caught immediately. He skims from the skim. The Chicago Outfits standard Las Vegas operating procedure is to steal a percentage of the gross revenues before they are officially counted, keeping them off the books and invisible to the IRS.
It is the mob’s most protected income stream. Greenbound begins taking from that already stolen money. He is stealing from the mob’s own offthe-books take to fund heroin, gambling debts, and the lifestyle of a man who has stopped caring about consequences. The Las Vegas Weekly would later describe what he was doing in nine words that contain the entire logic of his fate.
It is okay to skim for the mob. It is not okay to skim from the mob. Chicago discovers it quickly. Aardo is informed. Marshall Kyano, the Chicago Outfits most feared enforcer in Las Vegas, a man whose reputation alone cleared rooms, approaches Greenbound directly. He delivers the offer in terms that require no elaboration.
Sell out your stake in the Riviera and walk away and the debt is settled. Stay and you will be carried out of the building in a box. Johnny Rosselli, the outfit’s Las Vegas fixer, goes to see Greenbound to discuss the offer. He urges him to take it, sell the stake, take the money, leave, go to Phoenix, play golf, live.
According to Roseli’s own later account, Greenbomb looks at him and says, “I don’t want to leave. This godamn town is in my blood. I can’t leave. It is the most expensive sentence he ever speaks.” November 27th, 1958, Thanksgiving Day. 11:15 West Monte Vista Road, Phoenix. Gus Greenbalm carves the turkey at the head of his table.
He has invited family over for the holiday. Pearl Ray is there. The house is warm and full and smells of the dinner Bess has been cooking since the morning. He has hired two personal bodyguards in recent weeks, the first time in 30 years of operating for the mob that he has felt he needed personal protection.
The bodyguards are not at the table. It is Thanksgiving. It is family. He eats and talks and is by the accounts of those present quieter than usual. 100 miles south in the Sonoran Desert outside Tucson, Arizona, a meeting is taking place at a ranch owned by Detroit mob boss Pete Licavoli. The men present include Tony Aardo, Joe Banano, the New York family boss who lives in Tucson, and other senior organized crime figures whose specific identities have never been fully established.
They are meeting on Thanksgiving Day, 100 miles from the man they are meeting about. What is decided in that room is never recorded in any document that has been made public. 5 days later, Bess Greenbound drives Pearl Ray home in the white Cadillac, as she does every evening. She returns to the house alone.
The killer’s Phoenix police find cigarette ash and shoe impressions near the garage. Evidence that two people lay in wait for hours follow her inside. There is no forced entry. They have either been given a key or obtained access through means the police never establish. They tie her wrists with the necktie.
They crush her skull with the decorative bottle. They pad her head with newspaper and a towel to prevent the blood from staining the furniture. Then they use the knife. Gus is in bed, heating pad running, television on, silk pajamas. The knife nearly takes his head off entirely. The killers leave. They are seen by no one.
Two unidentified men are reported to have arrived in Phoenix the day of the murders and departed immediately afterward for Miami. The Arizona Republic reports it. No names are ever confirmed. The Justice Department convenes a federal grand jury in Los Angeles to investigate the slayings and broader mob activity in California and Arizona.
Joe Banano is subpoenaed. Several men connected to the previous year’s Appalachin Summit are subpoenaed. Nothing produces an indictment. Johnny Rosselli later tells investigators that according to Jimmy the Weasel Fratiano, Maya Lansky, a silent partner in the Riviera, who was losing money because of Greenbomb’s erratic management, had personally wanted him eliminated.
Whether it was Lansky’s contract or Aicardos or both has never been established. The $25,000 reward offered for information about the murders goes unclaimed. Gus and Bess Greenbalm are buried at Beth Israel Cemetery in Phoenix in twin bronze caskets. A few feet from their graves. Leon Mloud Greenbalm is also buried.
The 75year-old woman who told everyone who would listen that she feared for her life from men connected to her brother-in-law who was not believed who was smothered by human hand in her own home in 1955 because the mob needed a message delivered and she was the message. Three graves, one family, one man’s 30-year career in the mob service.
Gus Greenbalm had been given every chance to leave. He had tried to retire in 1955 and had the warning delivered in the clearest possible terms. He had been given the explicit offer by Marshall Kyifano, “Sell out and walk away and live. He had heard Johnny Rosselli’s advice directly.
He had made his choice each time.” Some of those choices were not really choices. Nobody says yes to the mob with a gun at their family’s head and calls it a decision. But the final choice that this town is in my blood, I can’t leave was his, and it cost him Bess, and it cost him the life he might have had in Phoenix, playing golf at the Arizona Club, watching Las Vegas grow into everything he helped make it from a safe distance.
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