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FBI
continued from page 3
along with three business partners including Moe Dalitz,
whose mob ties are the stuff of legend. Michael Newton
tells Dalitz’ story in his 2009 biography, “Mr. Mob: The
Life and Crimes of Moe Dalitz.”
Molasky and his partners financed a hospital and later
other deals with $100 million in loans from the Teamsters
Union, which at the time was heavily involved with the
mob. One of those developments was Rancho La Costa in
San Diego County.
San Diego Reader journalist, Matt Potter has
researched Rancho La Costa and its developers.
“In 1962, Dalitz, Molasky, Paradise, and two partners,
In 1992, Molasky was given
immunity from prosecution in a
failed racketeering
investigation
Merv Adelson and Allard Roen, would snap up a total of
5000 acres outside the tiny San Diego County beach town
of Carlsbad,” Potter wrote in his June 2011 article about
the San Diego FBI building under the headline, “Why
Would the FBI Give $223 Million to This Man?”
“There, with funds loaned by the Teamsters and C. Arn-
holt Smith’s US National Bank, they built Rancho La
Costa, the posh resort that became synonymous with
America’s mid-century wave of organized crime, murder,
and political corruption.”
The resort became popular with Hollywood executives
and wealthy golfers. But it also catered to Allen Dorfman,
the Chicago insurance executive who managed the Team-
ster’s pension fund; Frank Fitzsimmons who replaced
Jimmy Hoffa at the helm of the Teamsters when Hoffa
went to jail; and others with links to organized crime.
Meanwhile Molasky became a Hollywood executive.
With Adelson, who later married anchorwoman Barbara
Walters (twice), and producer Lee Rich, he formed Lori-
mar productions. Lorimar made television shows such as,
“The Waltons,” “Dallas” and “Knots Landing” as well as
the movies “Being There” and “An Officer and a Gentle-
man.”
But in 1974, Penthouse wrote an expose under the
headline, “La Costa: The Hundred-Million Dollar Resort
with Criminal Clientele.” The story claimed that the
resort was a front for organized crime.
Molasky and his three partners sued Penthouse for libel,
asking for more than $490 million in damages. In 1982 a
jury decided in favor of Penthouse, but Judge Kenneth
Gale declared a mistrial, and ordered a new trial. Accord-
ing to Potter, the $25 million trial was marred by allega-
tions of corruption and backroom deals, leaving both
sides bruised.
Three years later, the case was settled out of court. No
money was exchanged, but the magazine’s owner, Bob
Guccione, issued a letter saying La Costa was an out-
standing resort complex and praising all of the develop-
ers as civic minded philanthropists. Guccione went even
further with Molasky and Adelson, saying the magazine
did not mean to suggest that either man was involved
with organized crime.
Seven years later, in 1992, Molasky was given immuni-
ty from prosecution in a failed racketeering investigation.
The Las Vegas Organized Crime Strike Force was inves-
tigating The Computer Group, an organized sports gam-
bling ring. According to the Las Vegas Review Journal,
Molasky told a grand jury only that he had placed large
bets with the group, which was not illegal.
Neither case seemed to hurt Molasky’s career. He went
on to work closely with casino-owner Steve Wynn, and to
build some of the most prestigious projects in the Las
Vegas Valley, including Park Towers luxury condomini-
ums, Bank of America Plaza, Bank of West and Hangar
Seven at Paradise Aviation, part of McCarran Internation-
al Airport.
Over time, Molasky’s children entered the business, creating
their own construction firms and adding to the group’s portfo-
lio of companies.
Steve Miller, a former Las Vegas City Council member and
veteran broadcaster, writes the Inside Vegas column for Amer-
icanMafia.com. He says he has known of Irwin Molasky since
he arrived in Vegas as a child, and has watched Molasky
progress from building country clubs and homes to specializ-
ing in large government projects.
“I guess he does pretty good work,” Miller says. “He seems
to have a real good reputation with the government. If I was
working with the FBI, I wouldn’t want to kiss them off.
“I have no adverse negative dossier on him and I would hear
any negatives. He’s kept his nose clean, “ Miller said.
“Around here he has been Mr. Clean all of his career.”
COMPUTER/IT
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SUB-BIDS REQUESTED
Tacoma Water Green River
Filtration Facility Project
Bid Package #6:
Mechanical and Fire Suppression
Bid Package #7: Electrical
Bids Due: July 26, 2012 at 2:00pm
HOFFMAN
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COMPANY OF
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Bid Phone: (206) 286-6697
Fax: (206) 286-7523
1505 Westlake Ave N, Suite 500
Seattle, WA 98109
LIC # HOFFMCC164NC
We are an equal opportunity employer and request
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Other Subcontracting Opportunities - Internet
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6-27-12
June 27, 2012 The Portland Skanner Page 11