The Olivanti Motorsports scandal was a political, financial, and criminal scandal involving World Stock Car Championship racing team Olivanti Motorsports and its owner Frank Olivanti in the early 1990's, which lead to the demise of the team, the disappearance of many of its officials, and a federal investigation into stock car racing's role in the scandal. Several prominent figures within the series testified before Congress, including CEO Jack Crawford, series legend Cameron Yost, and legal expert Schuyler Stewart.
Background[edit | edit source]
The World Stock Car Championship is an international stock car racing series headquartered in Norwalk, Connecticut which has sanctioned stock car racing since 1950. Previously known as the National Stock Car Series, and despite competition from multiple regional competitors - including the American Stock Car Tour and Midwest Stock Car Series - the series became the premier stock car racing championship by 1970, and soon expanded from a national series to a global one, which led to a rebrand in 1978 as the World Stock Car Championship.
Olivanti Motorsports was a World Stock Car Championship racing team owned by Frank Olivanti, which competed full-time from 1977 until 1992. The team was well-funded from the outset, allowing Olivanti to hire top drivers, race engineers, and fabricators away from competitors. Owing to their immediate success, sponsors flocked to the team, allowing them to rapidly expand from one car in 1977 to four in 1980. Olivanti became the powerhouse team of the 1980's, having the budget to field four competitive cars on a weekly basis, and up to three additional cars for crown jewels.
Frank Olivanti, also known as Frankie Olives, was an American mobster who was boss of the Norcia crime family from 1980 until his death in 2008. Olivanti was able to evade law enforcement attention for years - in part due to law enforcement believing front boss Giovanni Pastorace was overall boss. Olivanti was an amateur boxer and part-time race car driver in his youth, and a protégé of Norcia patriarch Lucio Norcia; he became the Norcia family's most feared enforcer amid his rapid rise to power during the 1960's. Despite his high profile within the Norcia family, his true role in the family remained widely unknown to law enforcement for much of his life. He was named the family's underboss in 1977, and succeeded Lucio Norcia as boss following the former's death in 1980.
Marco Chiesa, also known as Marco Four-Eyes, was an American mobster who served as a caporegime in the Norcia family, serving under Olivanti and Pastorace. Chiesa's 1987 arrest and subsequent role as an FBI informant are widely agreed to be the catalyst for the scandal.
Arrest of Marco Chiesa[edit | edit source]
Marco Chiesa was arrested by federal agents outside of his home in Glen Cove, New York on charges of racketeering and conspiracy on April 14, 1987. While Chiesa was acquitted of the charges (due, primarily, to lack of cooperating witnesses), the arrest of a high-ranking capo spooked the Norcia family, and underboss Iacopo "Jackie Figs" Figura; Figura broke up Chiesa's crew, transferring members to other capos and forcing Chiesa to rely on untested associates and soldiers. Chiesa later testified that it was this action, which he perceived as a slight, which caused him to turn states evidence in 1989.
FBI Informant[edit | edit source]
Chiesa worked with the FBI as an informant for the next three years, providing extensive details on the Norcia family's organization, movements, activities, and members. The FBI had long sought attempted to infiltrate the Norcias, who had never previously had a member turn states evidence and whose activities and structure were - in contrast to the other four members of the Five Families - largely unknown to law enforcement. Lead investigator J. Patrick Washington later stated that "to call Chiesa's information invaluable is an understatement. It was made plainly clear from the outset that we had no chance of laying any charges against them that would stick without his information."
Chiesa's information included the revelation that the Olivanti Motorsports team was established as a front and money-laundering organization and provided documents disclosing significant discrepancies between the team's reported income from sponsorship and investors and the organization's true finances.
Chiesa's status as a trusted caporegime enabled him to deflect attention to other targets while helping the FBI chip away at the family's activities and close ranks on its upper hierarchy.
Federal RICO Investigation[edit | edit source]
Federal RICO charges were formally filed against Olivanti, Pastorace, Figura, and several other high-ranking members of the Norcia family throughout 1992.
Frank Olivanti[edit | edit source]
Olivanti faced the most serious charges; prosecutors alleged at his trial that his public image as a well-respected, law-abiding family man was a front, and that he was in fact a ruthless mafia boss responsible for numerous acts of violence, crime, and extortion.
Olivanti was indicted on October 6, 1992, on the following charges (all under the RICO statute):
- Six counts of first-degree murder
- Three counts of conspiracy to commit murder, including conspiracy to murder Marco Chiesa
- Drug Trafficking
- Bribery
- Money laundering
- Embezzlement of union funds
- Obstruction of justice
Olivanti hired criminal defense attorney Robert V. Kaplan to represent him, and was denied bail based on tapes played at his pretrial hearings.
Giovanni Pastorace[edit | edit source]
Pastorace was initially assumed to be the boss of the Norcia family; it was only Chiesa's testimony that brought attention to Olivanti. Pastorace already had several investigations into his activities, and he would plead guilty to multiple counts of extortion, bribery, and conspiracy on May 15, 1992 in order to avoid trial and was sentenced to eighteen years to life in prison. It was later alleged during Olivanti's trial that Pastorace's guilty plea was an attempt to divert attention away from the rest of the family.
Pastorace died on January 11, 2003 while imprisoned at Sing Sing Correctional Facility.
Iacopo Figura[edit | edit source]
Figura faced several counts of conspiracy, obstruction of justice, and bribery alongside two counts of murder. Figura was acquitted on one of the murder charges, as well as a single bribery count, but was found guilty on all other charges and sentenced to life imprisonment in 1993.
The Olivanti Trial[edit | edit source]
Olivanti's trial proved to be a media sensation; the televised opening statements on February 3, 1993 became the most watched non-sports event for the year, with the delivery of the verdict a close second. Like Pastorace and Figura, Olivanti was tried in the U.S. District Court for the Eastern District of New York. Jury selection began in January, and for the first time, the (anonymous) jury was completely sequestered to avoid any potential jury tampering. The prosecution began by playing tapes which showed Olivanti, Figura, Chiesa, and Pastorace, among others, at various times describing Norcia family business, including murders and specific rackets under family control.
Several eyewitnesses were called to the stand, culminating in Marco Chiesa on March 3. Chiesa confirmed Olivanti's place in the structure of the family, and provided detail of the numerous conspiracies under the families control, corroborating and expanding upon the prosecution tapes. The most significant testimony he gave, however, was on the six murder charges; Chiesa, as a high-ranking capo, was present when each of the murders was approved by Olivanti, and confessed to committing four of them himself. Chiesa described the four hits in detail, providing full descriptions of each murder and the aftermath. Olivanti's attorney, Kaplan, was unable to shake Chiesa on the stand during cross-examination. The government rested its case on April 6 after playing more tapes, and calling several other eyewitnesses.
Robert Kaplan attempted to call several witnesses for the defense, but most were ruled irrelevant. Kaplan's defense was further undone when Olivanti's tax attorney, Matt Jordan, perjured himself. Olivanti became increasingly hostile and combative during the trial, and was twice removed from the courtroom due to outbursts, both of which were directed at Chiesa.
On April 14, after 18 hours of deliberation, the jury returned a guilty verdict on all counts for Olivanti. On May 24, Judge H. Richard Isaacs sentenced Olivanti to life imprisonment without the possibility of parole, as well as a $500,000 fine. Olivanti attempted to flee to Sicily before surrendering to federal authorities on December 29, 1993.
Dissolution of Olivanti Motorsports[edit | edit source]
 Olivanti
| |
|---|---|
| 250px | |
| Full Name | Olivanti Motorsports |
| Owners | Frank Olivanti |
| Base | New York City, New York, USA
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| Series | World Stock Car Championship |
| Race Drivers | Cameron Yost |
| Sponsors | Filippo Berrio, Valvoline, Merit, Clayton Homes, McDonald's, Budweiser, Pepsi, Motorcraft |
| Manufacturer | Buick, Chevrolet, Ford |
| Opened | 1977 |
| Closed | 1993 |
| Career | |
| Drivers' Champions | |
| Wins | |
During the trial, evidence was introduced that established Olivanti Motorsports as an organized criminal outfit, whose primary purpose was to serve as a front organization and money-laundering enterprise for the Norcia family. Testimony from multiple witnesses detailed that the organization employed multiple Norcia members, including at least one caporegime and Frank Olivanti's son, Vinnie, who was officially listed as the team's vice president. Witnesses also testified that people involved with the actual operation of the racing team were kept insulated from the rest of the organization in order to maintain its appearance as a legitimate operation. This included the drivers, crews, fabricators, marketing team, and public relations staff.
Sponsors, likewise, were unaware of the true of the race team; the team had one of the most lucrative sponsorship packages in the series - owing in no small part to their performance on track - and often commanded bidding wars whenever a sponsorship deal was ending. While Frank Olivanti signed the official contracts, multiple sponsor representatives testified that he was not involved in negotiations, which were done by a member of the public relations staff; those staff members were cleared of any connection to the Norcia family outside of working for the race team.
Following the filing of RICO charges against Olivanti and a government injunction against all businesses owned by both the Norcia family and Olivanti himself, the team announced that it had suspended operations for the early 1993 season. In a later press release issued just before the 1993 Icebreaker Sweepstakes, the team stated that it was looking forward to competing in the latter half of 1993 once the cases were resolved. The team was allowed to continue to prepare cars and train crew members, but could not race or accept sponsorship money. The team's drivers sought to race part-time for other teams, but were blocked by Olivanti's lawyers from running for top teams.
Following Olivanti's conviction, the team's sponsors sued Olivanti for breach of contract; a similar suit on behalf of its drivers and crew was filed soon after. All parties in both suits contended they had been defrauded by Olivanti, who had concealed the team's true nature from them and provided them false information to convince them to sign. Representatives from Ford called the situation "a grievous act of deception and fraud." Statements from Pepsico and Valvoline echoed similar sentiments.
The team was officially dissolved and its assets were seized by the federal government as a result of Olivanti's conviction. All existing contracts were paid out from sale of seized assets; as a result, more than 50 pit crew members, 100 machinists and fabricators, all four of its drivers, crew chiefs, race strategists, and spotters, were released weeks after the 1993 season began. Several team executives remained on until the end of 1994, helping to close out the investigation and resolve any lingering issues, both from the investigation itself and from sponsors. The team's facilities, equipment, and cars remained in possession of the government until the investigation was officially closed in late 1994, and were sold at auction in 1995.
Congressional Commission on Stock Car Racing[edit | edit source]
Given the high profile of Olivanti Motorsports, questions were raised about what, if any, role the World Stock Car Championship played in the criminal enterprise. A Congressional Committee was soon formed to investigate the presence of organized crime in stock car racing; given the sport's origins as a hotbed for moonshine runners to compete against each other, suspicions were rampant that criminal empires like the Norcia family were more prominent in auto racing than previously known. Several legal experts were summoned to Congressional hearings throughout September and October of 1993, as well as team owners, former drivers, and WSCC executives.
Jack Crawford's Testimony[edit | edit source]
Jack Crawford, then CEO of the World Stock Car Championship, testified before Congress for two days on October 5 and 6, 1993. Crawford testified that, although motorsports sanctioning bodies are responsible to ensure that their teams are obeying employment law - citing the 1972 Roy Lewis Lawsuit - they were not responsible for performing criminal background checks or ensuring their teams were operating within the bounds of the law. Crawford, under pressure from Congressman George Graves (R-MS), explained that sanctioning bodies do not have the means, authority, or capability to perform forensic accounting or criminal investigations; he further explained that in cases where criminal activity is suspected, the team submits its concerns to the relevant authorities. He cited several cases in which the series had done so, including three reports made to the FBI between 1970 and 1990.
Amos Thompson's Testimony[edit | edit source]
Amos Thompson, then co-owner of Thompson Brothers Racing, testified about an incident in 1981 that he reported to the FBI. Thompson testified that several members of an Irish mafia gang approached him, looking to buy into the team. Thompson explained that he turned them down when he suspected they wanted to use the team to clean their books and reported the incident the next day. His testimony was seen as instrumental in showing that teams would turn away criminal partners, barring instances where their criminality could not be reasonably known or suspected.
Cameron Yost's Testimony[edit | edit source]
Former series champion Cameron Yost, who drove for Olivanti Motorsports during his final four seasons, testified that he was not aware of the nature of Olivanti Motorsports' existence as an arm of the Norcia family, nor did he have any knowledge of Frank Olivanti's status within the family. Yost corroborated testimony during the trial which stated the drivers - and the race team - were kept isolated from the rest of the organization, stating that the only "higher up" he met was Olivanti, who he met only during events specifically involving the race team, which included race events and team celebrations.
Schuyler Stewart's Testimony[edit | edit source]
Schuyler Stewart, an attorney from upstate New York who represented the plaintiffs in the landmark Lewis case, testified that, in his legal opinion, the World Stock Car Championship organization could not be reasonably expected to perform criminal background checks on prospective owners to the level that would be able to uncover involvement in organized criminal activity. He stated that, in his legal opinion, the responsibility of the sanctioning body, with respect to its teams, was established in Roy as solely with respect to ensuring the teams are following applicable employment law. Stewart further clarified that the sanctioning body was only responsible for activity that affected stock car racing, stating that while criminal activity "could be used to fund motorsports activities, unless it has direct action on the race track or within the team's race shop, the sanctioning body does not bear responsibility for investigating and punishing it."
Patrick Washington's Testimony[edit | edit source]
J. Patrick Washington testified that, despite his career as an organized crime investigator spanning nearly two decades, he had no reason to believe that organized crime had made an inroads into stock car racing. He explained that, in recorded conversations with Chiesa, the latter had explained that the Mafia had attempted on several occasions to buy into racing teams in Champ Car, Formula A, and the World Stock Car Championship, but were rebuffed by teams. Patrick further explained that the idea seemed to come in part due to the prominence of cigarette advertising on cars, noting that the Norcia family in particular saw the presence of sponsors such as Marlboro and L&M as circumventing the law to advertise on television despite U.S. law prohibiting cigarette ads.
Washington detailed nine known attempts by organized crime syndicates (or their affiliates) to foster relationships with stock car racing teams; the multiple failures eventually convinced Olivanti to start his own organization from the ground up. He also noted that the teams did not have reason to suspect organized criminal activity specifically, and indicated that Chiesa understood their reluctance to be based more on the vague terms the families preferred to use when proposing deals.