Saputo Denies Mafia Links.....

[Winnipeg Fury]

Saputo forced to fight old battle

BERTRAND MAROTTE AND TU THANH HA

Globe and Mail Update

December 12, 2007 at 10:17 PM EST

He transformed his Italian immigrant father's humble cheese-making business into a global dairy-and-bakery conglomerate, built a reputation as one of Quebec's shrewdest entrepreneurs and now sits atop a family fortune estimated at $1.4-billion.

But Lino Saputo's rise to wealth and status as a celebrated entrepreneur and philanthropist has been shadowed over the years by unsubstantiated allegations of links between his company, Saputo Inc., and the Italian mob.

The family-owned business – which went public 10 years ago – has suffered knocks to its reputation in the past because of the unproved allegations but always managed to repair the damage and continue on its prosperous way.

Now, at the age of 70, Mr. Saputo finds himself once again fighting allegations that his Montreal-based company has ties to the Mafia.

His father, Giuseppe Saputo, arrived in Montreal from a Sicilian village in 1950 with one son. His wife and six other children, including Lino, followed in 1952.

After working in a meat plant and saving up $500 at the age of 17, Lino helped set up his father in cheese making.

Mr. Saputo and other family members used a bicycle to deliver the 10 kilograms of mozzarella cheese produced daily.

The company owes its initial success to the exploding popularity of pizza in the 1960s and skyrocketing demand for a key topping, mozzarella.

Lino took over from his father in 1969. A series of acquisitions aimed at diversifying the company followed. Among the more prominent were U.S. dairy firm Stella Foods Inc. in 1997, Quebec snack-cake maker Culinar Inc. in 1999 and Canadian dairy Agrifoods International Co-operative Ltd. in 2002.

Saputo has grown to become one of the top 20 dairy processors in the world, the biggest dairy company in Canada and among the top five cheese producers in the United States.

Among the assets in Mr. Saputo's family holding company – Gestion Jolina Inc. – are the exclusive Golf Saint-Raphaël course near Montreal and extensive real estate.

Mr. Saputo handed over the chief executive officer duties to his son Lino Jr. in 2004 but remains the chairman.

Years of mob controversy and the exacting demands of the food business contributed to his driving his company ever harder, Mr. Saputo said in an interview.

“You know, in the food industry, you're vulnerable … We had to be better than what the law required. We were always vigilant.”

His friend and former banker, André Bérard, says he is outraged by the latest allegations. Mr. Saputo is a “great man who has lived an impeccable life as a citizen and generous contributor to society,” the former chairman and CEO of National Bank of Canada, said in an interview.

This time, the unwanted publicity comes from the Italian police, who want to find out if Mr. Saputo is linked to Rome-based entrepreneur Mariano Turrisi – arrested last month – in a plan to launder $600-million (U.S.) for Vito Rizzuto, the godfather of the Montreal Mafia.

Italian police allege Mr. Turrisi wanted to sell two of his companies at an inflated price to a West Palm Beach, Fla.-registered company named Saputo Enterprise Corp.

Mr. Saputo denies any connection to Mr. Turrisi.

He said he has not been contacted by Canadian police but would like to meet with them in hopes of clearing the air.

He is dismayed that the old stories continue to crop up.

Accounts of his late father agreeing to sell part of his business in 1964 to New York mobster Joseph (Joe Bananas) Bonanno are false, Mr. Saputo insists.

“We're talking about a letter my father wrote inviting Mr. Bonanno to take part in the activities of the Saputo company.

“But my father didn't know Mr. Bonanno at the time. He knew his associate, Mr. John DiBella, and at DiBella's request, my father wrote that letter. But when my father found out who Bonanno was, there was no transaction, nothing further happened. We were victims.”

For years, however, U.S. authorities believed that the predecessor company to Saputo Inc. had mob connections.

The Pennsylvania Crime Commission in 1980 said it had established direct links between G. Saputo & Sons Ltd. and the Joseph Bonanno criminal organization.

In 1980, the company was refused a milk licence to make cheese at a plant near Utica, N.Y., based on evidence purporting to show a long-standing relationship with Mr. Bonanno.

In 1978, Saputo Inc. was prevented from opening a mozzarella plant in Vermont on suspicion of being in cahoots with the Mafia.

Mr. Saputo says he will fight fiercely for the good names of his family and company.

“I've always tried to be as straight and honest as possible in my life,” he said.

“You could leave a pile of money to your children but if you're not leaving them a good reputation … we owe them a good reputation.”

[CanadianSwede]

Whether or not there are mob links, there are so many 'shady' football club owners. Silvo Berlusconi and Thaksin Shinawatra to name a few.

[youllneverwalkalone]

I love a good excuse to make fun of Italian footballers, but I gotta say that the tone of this article is indicative of a latent racism that most of us WASPs have at one time or another been guilty of by suggesting, usually in jest, that all Italians are in some way connected to the mafia. That must get pretty tiring. If the Italian police had any clue what they were doing, would there be a mafia? I mean, Napoli is supposed to make the remaining crime families in North America look pretty tame. But regardless, the article should probably make some effort to comment on the validity of the Italian police investigation. Sounds like the extent of their investigation is that there's a rich Italian guy in Montreal so he must be corrupt.

If you dug deep enough, how many Canadian companies would have indirect dealings with organizations such as the Hells Angels? I bet quite a few because that's the whole point of *organized* crime. They clean themselves up to look legitimate and due diligence can, and should, only go so far.

[Richard]

I found nothing wrong with the tone of the article frankly. The subject matter on the other hand is unfortunate. Don't shoot the messenger.

[RJB]

At some point or another, every succesful Italian has to answer to whether or not they are involved with the Mafia. It's tiresome, and prejudicial, but it's the way it is. Even I have to deal with people joking with me about it, said same with my Italian father. The sad part is that with Mr. Saputo, it sounds like this has been suggested many times, and he's come clean every time. What's the point?

[youllneverwalkalone]

Maybe it was WF who picked the title of the thread, but "Saputa Dodges Mafia Links" doesn't sound very impartial to me. Cause let's face it, that's what people read and remember.

I don't think people presumed innocent "dodge." Semantics perhaps...

[Richard]

Exactly, the article headline is "Saputo forced to fight old battle" so it's the forum thread subject that is misleading, not the article itself or its authors.

[Calgary Boomer]

I asked someone (who has since left the organization) whether or not there was any truth to the rumours or whether he ever felt the undercurrents of those allegations. All he said was the Saputos managed to always "Get things done". That may not have anything to do with the mafia, but Montreal in general.

Sadly, perception is reality.

[Cashcleaner]

My baby's mother comes from an Italian family, and they pretty much let all this sorta talk slide off their back. Like RJB mentioned, as soon as an Italian becomes successful in business, people tend to assume the worst.

I can honestly say I have never been invited to any mob weddings in my life.

[Trident]

I don't like this thread.

I don't believe much of it but any thread where my 2 of my favorite clubs owners get called out won't make me happy.

[Cashcleaner]

^ I don't think anyone is making allegations here, just reporting the news itself. I'm confident Saputo will make it out okay.

[massimo]

I know an investigation was done a few years back + or - 1999 by compliance officers at TSX. I don't know the details, but they had found some irregular dealings the company had done in the past. But could not prove/link any of it. So no charges were made.

[Winnipeg Fury]

quote:Originally posted by youllneverwalkalone

Maybe it was WF who picked the title of the thread, but "Saputa Dodges Mafia Links" doesn't sound very impartial to me. Cause let's face it, that's what people read and remember.

I don't think people presumed innocent "dodge." Semantics perhaps...

Just curious, does the title 'Saputo Denies Mafia Links' sound better ?

[Richard]

^ Yes, the meaning is very different.

[Bill Ault]

^ Agreed

[Winnipeg Fury]

'dodges' and 'denies' are the same to me, so it is fixed.

[Winnipeg Fury]

'dodges' and 'denies' are the same to me, so it is fixed.

[Richard]

OK, 'deny' implies the subject asserts it never happened or never existed, 'dodge' implies the subject acknowledges it happened or existed but is succeeding in avoiding any overt connection between himself and 'it'. Get it, pretty substantial difference and not really all that subtle?

[Grizzly]

This article is largely supportive of Saputo and implies that the accusations are unfounded so I don't understand YNWA's claims that it is indicative of WASP racism especially since neither author has a WASP surname. I do agree that there is a difference between denies and dodge and that denies is that better title for the thread.

About a month ago I was in a bar talking to some older Montreal guys and when we started talking about the Impact and Saputo stadium the first thing they said was that the Saputo's had associations with the mafia. I was surprised by this so when I went home I googled their name with mafia and there are certainly articles from the past concerning this subject although the Saputos have never been charged with any crime. There is certainly some link with Bonano whether or not it was criminal or simply an unfortunate acquaintance. This was all news to me but I didn't post about it because most of the accusations were unproven and I have been critical of some of the things the Saputo's have done in relation to soccer in the past and don't want to be this forum's anti-Saputo. I also can not comment whether there is any basis in fact to the opinions of these older Montrealers but there is at least some opinion among some Montrealers that there has been a relationship between the Saputo and the mafia whether this is a valid opinion or not.

One also has to consider that Montreal has always been the head of the Canadian branch of the Italian mafia which is considered the sixth family of Italian mafia in North America with the other five being New York based. It is currently considered that the Montreal family is the one in charge of the Italian mafia in North America since the US have severely cracked down on the American families whose leadership is now in prison. In recent times the Montreal mafia has started to have problems with jail as well so I don't know if this remains the case. There is a street in Montreal that is referred to as mob alley because it is home to a large number of big homes inhabited by businessmen with criminal ties. There are also several restaurants/cafes which are known to be associated with these businessmen and are also known as places not to hang out if you are a regular guy. It is the opinion of many people in Montreal that the mafia here is quite involved in a number of industries and that this is the reason why things that other cities seem to get done much more efficiently and cheaply (road construction, garbage collection, etc.) are often done poorly here at greater cost. Again none of this is proven but is the opinion of many Montrealers I have talked to, some who work in these very industries.

It is also true that Italian Canadians are somewhat unfairly associated with the mafia. As someone who travels to Russia a lot I hear a lot of comments about Russians being mafia (even though I am not actually Russian) and much of it is ignorant and untrue. 99% of Italian like 99% of Russians and 99% of bikers for that matter have no criminal association. On the other hand if there was not a significant ethnic based criminal organization from these groups the association wouldn't be made in the first place. While some of bias against these groups is based on ignorance, the real blame for the situation should be put on those criminals who have brought disrepute to their ethnic group in the first place. While their percentage of the ethnic group may be small their criminal activity has been quite significant.

At the present moment there is no proven information that the Saputos are associated with organized crime. While any rich Italian businessman will probably face this accusation at one time or another, it seems there is more to this story than just a rich Italian businessman facing discrimination. The police/authorities in three countries, Canada, Italy and the US, have investigated or are investigating possible links to organized crime and I doubt they are doing this because they dislike the Saputos or Italian Canadians (especially since Italian authorities are themselves Italian). On the other hand until now the Saputos have never been charged with anything and anytime that one is successful and rich one is liable to false accusations which are difficult to defend against. Also any person who is as successful in business as the Saputos has probably had business dealings with a great number of people some of whom just by chance have to be unsavoury whether or not that was known to the other party at the time. Yet there are a number of large corporations and rich families in Canada whose wealth undoubtedly did have a criminal genesis and yet now they are considered successful legitimate businessmen and they actively try to supress any discussion of their past. The most known of these families is another Montreal family, the Seagrams. In fact, almost all of the older Canadian distillery companies have their roots in bootlegging during US prohibition and while prohibition may have been wrong the bootleggers were every bit as bloody and criminal as today's drug mafia.

Obviously noone on this board has enough information to judge whether there are any merits to these claims against the Saputos. I do not think we should assume they are true but I also do not think we should assume they are false because we like what the Saputos are doing for soccer in Canada or because we think there is discrimination against Italian Canadians. It is unfortunate that if the allegations are untrue that it will be difficult for the Saputos to clear their name because there will always be a public perception even if they are officially exonerated. This is unfortunate but is also the price of fame and fortune. On the other hands with their wealth the Saputos are also in a good position to fight the charges even if there is some merit to them and may be able to get away with things that the common man could not. At any rate, this is not the accusation of a tabloid but part of an investigation by authorities. Hopefully the authorities will carry out the investigation in a proper manner and get to the truth of the matter. And yes until the Saputos are found guilty of any crime they should be considered innocent but that doesn't mean the media or this forum should ignore the situation and not report about it.

[Guest Ed]

*****footing around boys! I would say that "Saputo AGAIN dodges Mafia Links" would be an entirely appropriate title. The Bonano connection allegations go way back. You can laugh at the CIA,FBI,HS etc for their recent dealings in combatting terrorism but there is no denying they have cut the Mafia off at the knees in the US. Nothing like that has happened on our turf.

You all have no problem calling Owen Hargreaves a whore and a traitor and yet you piss yourselves over crossing some line in the sand for the Saputos when very clearly there is some smoke.

[Grizzly]

There is no reason to bring Hargreaves into this thread. Hargreaves actions are without dispute even if people have different opinions about them which have been discussed endlessly on this board. There is absolutely no relationship between Hargreaves or peoples' opinions on him and this matter even if you are pissed of at many forum members for having a different opinion on Hargreaves than you do. Nor does the fact that the Bonano allegations go way back prove that there is a criminal connection between him and the Saputo family.

[youllneverwalkalone]

Just a minor point on Grizzly's history of Montreal: It was the Bronfmans and not the Seagrams who made their fortune running whiskey to the US in the 20s. The Company was sold to the Bronfmans shortly before prohibition -I believe.

I was mistaken about the title of the thread but I do believe the journalist should discuss the merits of the Italian police investigation if they are going to bring it up as the cornerstone of the article.

Every ethnic group, including my own German/Irish self, have been involved in organized crime. Joseph Kennedy was a buddy of the grandpa Bronfman, for example. Not to mention Tom Hagen...

Which brings me to the real point of this post: how much of the Italian mafia is real? And how much was created by Mario Puzo? I spent a winter living on the Isle of Crete which, according to locals, is the hub of INTERNATIONAL organized crime -not Sicily. In addition to the locals, there are many Russian and Serbian (including Arkan before his death) unsavoury characters all over the island, which is really a perfect place being that there is no full time police force whatsoever.

If Mario Puzo had been Greek, or Serb for that matter, would Italians be the first group associated with Mafia? Personally, I don't think so.

[Grizzly]

Both the Bronfmans and Seagrams were involved in bootlegging. The Seagram's family has a long history in distilling and Bronfman's bought their company in 1928 before prohibition was over. Prohibition in the US lasted from 1920 to 1933.

There is no doubt that certain ethnic groups get blamed for more crime than they deserve partly based on movies but this is not to deny either that certain ethnic based criminal organizations do exist and the Italian one has always had a lot of power in Montreal. This is not to say that every member of the mafia is Italian just like much of the Russian mafia is merely Russian speaking ethnic groups from the former Soviet Union and not actually ethnically Russian (nobody speaks of the Armenian mafia but this is in fact a very powerful organization that is grouped under the Russian mafia heading). The thing with stereotypes is there is always some overexaggeration and bias but also usually some truth in the reputations.

[Gordon]

Just to add to the Bronfman's family history, they got their start smuggling whiskey while still living in Yorkton Saskatchewan and moved out east after they were well established in the Whiskey Smuggling game.

Not going to comment on Organized Crime beyond saying that it is not illegal - immoral certainly - to accept "clean" money from suspected criminals. It is clean until proven otherwise. Lots of smoke around the Saputo's, and that usually means something, but not necessarily something criminal.

[youllneverwalkalone]

quote:Originally posted by Grizzly

Both the Bronfmans and Seagrams were involved in bootlegging. The Seagram's family has a long history in distilling and Bronfman's bought their company in 1928 before prohibition was over. Prohibition in the US lasted from 1920 to 1933.

There is no doubt that certain ethnic groups get blamed for more crime than they deserve partly based on movies but this is not to deny either that certain ethnic based criminal organizations do exist and the Italian one has always had a lot of power in Montreal. This is not to say that every member of the mafia is Italian just like much of the Russian mafia is merely Russian speaking ethnic groups from the former Soviet Union and not actually ethnically Russian (nobody speaks of the Armenian mafia but this is in fact a very powerful organization that is grouped under the Russian mafia heading). The thing with stereotypes is there is always some overexaggeration and bias but also usually some truth in the reputations.

But, to be fair, there are a lot of Italians in Montreal full stop. Odds are some of them are going to be crooks. So there will be more Italian criminals there than say from the New Zealand mafia. But there will also be a lot more sqeauky clean Italians in Montreal than say Yorkton, Saskatchewan.

I don't really know what I'm debating anymore but, suffice it to say, I'd like to give Saputo the benefit of the doubt because we need more people like him and Kerfoot who are able to move the game of football forward in this country. Not to mention, I really like a good block of mozzerella.

I will tell you this though: the one they need to be investigating for mafia ties is the guy who almost literally threw Vancouver Fan and me out of the Cafe Calabrese on Commercial Drive in Vancouver for exchanging a couple tickets to the the Scotland friendly without first purchasing a coffee. I know he's hiding something!