The Miami Herald from Miami, Florida on July 31, 1984 · 162
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The Miami Herald from Miami, Florida · 162

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Tuesday, July 31, 1984
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I 7 ee f ur Specs sNewspope I earn I I t Ultr 4A The Miami Herald I Tuesday July 31 1984 BAHAMASfrom IA book next to the names "Kendal" and "Ruble" The Commission has had a hard time unraveling the affair Some witnesses have refused to testify Others cannot: The man who delivered the $400000 cash for the hotel purchase was murdered exe-cution-style two years ago Caruana himself has been missing since April when he failed to 'appear for trial on US charges of running a marijuana smuggling ring Trail begins The following account is based on evidence before the Royal Commission interviews with US prosecutors and sworn statements by agents of the FBI and Drug Enforcement Administration The trail begins at the Islander Hotel a 100-room complex in Freeport Grand Bahamas It was constructed in the early 1970s by Tampa builder Jim Walter and others who had hoped to turn the hotel into a lucrative resort Robert F Tarr then a financial assistant to Walter was assigned the task of making the Islander profitable He says it was an impossible job In an interview with The Herald Tarr said the hotel was plagued by "constant interference pressure" from the Bahamian government over work permits li'censes and tax restrictions Walter he said decided to get out Twice American firms offered to buy the Islander for more than $I million Tarr said and both times permission was denied by the Bahamian government Eventually in 1976 a new offer came — from Kendal W Nottage Nottage not only was a member of Parliament he was a former law partner and longtime friend of Prime Minister Linden Pindling Pindling's son Obie is a member of Nottage's law firm Tarr knew of Nottage's strong political connections Walter told him to go ahead with a lease-purchase deal According to Tarr Nottage's company paid 626000 of a $50000 down payment and moved into the Islander "Then he never paid anything else Just ignored it" Tarr said 'We couldn't get him out We were basically helpless" Nottage said he had a legitimate option to buy and that the Walter group was trying to sell the hotel out from under him Nottage said he and Rubie had pumped thousands of dollars into it for renova a 'F A ro t 'I did not do not have not ever fronted for anybody!' Kendal Nottage cabinet minister tions In 1979 a company called Baretta Investors made another offer on The Islander — $350000 for a hotel appraised at $18 million In May 1979 an exasperated Jim Walter said yes "We really took a bath" Tarr said "No doubt about it" The new buyers were a group of Boston businessmen that included restaurateur Robert Deutsch and noted trial lawyer Joseph J Balliro For years Balliro has represented some of the most infamous organized crime figures in New England many associated with Patriarca Balliro said he had assembled the Boston investors after he'd heard about a "good buy" on a Freeport hotel After buying the Islander Balliro's group immediately filed a lawsuit to oust Kendal Nottage's company from the premises The litigation dragged Balliro said and the investors got nervous Nottage told Balliro that he was "crazy" if Balliro seriously thought he was going to get the hotel Balliro said he started to believe him After a year he told his partners it was time to bail out Nottage proposed a deal — he and his wife would buy all the shares in Baretta Investors and obtain the hotel for $400000 Balliro said Monday that he and his partners decided to sell because it was "obvious" that the Bahamian government would never give his group permission to run e l m n the hotel Be said he'd never heard of Nottage before the hotel dispute but he learned he had "considerable clout" Kendal Nottage says that he asked Rubie who is one of his law partners where they could get the money for the hotel She suggested IPI a Bahamian company she says she incorporated for an unknown client of another Boston lawyer That mystery client according to evidence supplied to the Royal Commission was Salvatore M Caruana Caruana 45 was born in West Peabody Mass Federal drug agents describe him as a "large-scale" marijuana smuggler associated with convicted drug kingpin Jamiel (Jimmy) Chagra who was charged but acquitted in the 1979 murder of US District Judge John Wood in Texas But according to court documents and federal prosecutors Caruana is more than just a pot smuggler He is a known associate Gennaro Angiulo the alleged "underboss" of the Patriarca mob family based in Providence RI Angiulo currently faces federal racketeering charges in Boston Jeremiah O'Sullivan head of the federal strike force in New England identified Caruana as an unindicted co-conspirator in the Angiulo case Agents say Caruana has a reputation as a dangerous man Caruana previously has been convicted of income tax charges and assault on a federal officer according to assistant US attorney Janis Berry She said Caruana once unleashed a fierce guard dog on an FBI agent trying to serve him with a subpoena Confessed smuggler Timothy Minnig said he once paid Caruana to settle a dispute between Minnig and Jimmy Chagra both of whom were using the Bahamas as a drug smuggling route According to one DEA agent Caruana's method of settling the squabble was to threaten Chagra with nonsurgical castration Soon Minnig himself began to pay Caruana $10 a pound for all the marijuana he smuggled into the United States Minnig said The Nottages said they knew nothing of Caruana They said they dealt exclusively with lawyer Ed Hurley According to Commission testimony Hurley has acknowledged representing Caruana in business matters but said he never mentioned his name to the Nottages Hurley has refused to testify before the Royal Commission about the $400000 loan He did not return several Herald phone calls Monday ‘t d A According to court documents and federal prosecutors Salvatore Michael Garuana above is a known associate of Gennaro Angiulo the alleged 'underboss' of the Patriarca mob family based in Providence RI liticia Hurley has said that a man named Larry Martin delivered $400000 cash to him on July 8 1980 The money was then paid to Balliro's Baretta Investors for the troubled Islander Martin who worked for Caruana was named in the same smuggling indictment In June 1982 Martin was shot to death and stuffed in the trunk of a car in Wakesfield Mass The murder is unsolved The Nottages said they never heard of Larry Martin No questions asked Even though she was listed as a director and secretary of IPI Mrs Nottage said she had no idea who supplied the $400000 and never asked She said she set up many corporations including IPI at Ed Hurley's request Nottage acknowledged the "very strong possibility" that Hurley was acting for Caruana and that Caruana supplied the $400000 loan Robert Ellicott chief counsel for the Royal Commission asked Mrs Nonage "Didn't you think it was important to know who your clients were?" "No sir" she replied adding that this was "the norm" for EP M30 attorneys in the Bahamas Last month she resigned from eight companies that have been linked to Caruana including IPI Mrs Nottage also said she could not remember why she signed a check for $23908383 that was deposited in IPI's account in April 1983 According to the Central Bank of the Bahamas the money came from a US dollar account maintained by the Nottage law firm "It should not be a matter of concern" Mrs Nottage assured the Royal Commission last Saturday Mrs Nottage described the IN-Islander deal as a "hybrid" between a loan and a joint venture Her husband called it a "peculiar and special arrangement" According to documents obtained by the Royal Commission the "loan" originally was to be secured by a mortgage — yet no mortgage has ever been executed All that exists is a typed agreement that the Nottages and IPI will split any profits from the future sale of the Islander Hotel "Have you ever made any repayments to IPI?" Ellicott asked Kendal Nottage last week "No sir" the Cabinet Minister replied Mrs Nottage said no mortgage was ever signed because "both sides just allowed the occasion to lapse a bit" — more than four years Within 15 days of the Islander Hotel sale to the Nottages a man named "Michael Caruana" made two flights from Fort Lauderdale to Freeport according to Bahamian immigration records He was accompanied by Ed Hurley Convicted smuggler Arnie Katz who also was on the trips says that Caruana stayed at the Islander and bragged that he was the new owner of the hotel He said his partner was a Cabinet Minister On November 25 1983 a federal grand jury indicted Caruana and 17 other men for running a marijuana and hashish smuggling ring When DEA agent Peter Vinton arrested Salvatore Caruana he noticed Caruana was carrying a small brown book Inside that book was the calling card of Ruble Nonage Several phone numbers were written in the book next to the names "Ruble" and "Kendal" One of them was "809-323-4068" It was the Nottages' unlisted home number Another was "809-322- 3140" which is an unlisted phone in Nottage's office Last week Ruble Nottage suggested that Ed Hurley might have given Caruana those phone numbers Kendal Nottage said he doesn't remember giving the numbers to Hurley The Nottages say they have never spoken a word to anyone named Salvatore Caruana On Saturday the Royal Commission ordered them to produce their law firm's corporate files The Nottages have been charged with no crimes Attorney F Lee Bailey who represents Pindling before the Royal Commission says Ed Hurley "simply didn't inform" the Nottages about who really controlled IPI He says they had no idea it was an accused mobster Caruana himself is still a DEA fugitive and unavailable for comment His trial attorney is Joseph Balliro — the same man who helped sell the Islander Hotel to Kendal Nottage Balliro says he doesn't know where his client is Federal drug agents believe Caruana might be hiding in Freeport This is not the first time Kendal Nottage's name has surfaced in a US investigation Nottage and Prime Minister Pindling each owned 5000 shares of Columbus Trust Co a Nassau trust allegedly used as a laundering conduit for American smugglers After Columbus Trust was identified by US prosecutors in 1980 Nottage and Pindling sold their shares and declared that they didn't know about any illegal activities The company later lost its Bahamian banking charter and folded Last September NBC reported that Nottage was the target of an aborted FBI bribery scam to be carried out aboard a yacht off the Bahamas Pindling angrily branded the plot an attempted "kidnapping' In fact The Herald has learned the FBI had nothing to do with it The case was launched by US Customs agents and never carried out because the State Department scotched the idea Nottage was never approached Nottage has declared himself to be the wealthiest of all Bahamian Cabinet Ministers with an estimated net worth of $79 million On his 1984 financial disclosure form required by Bahamian law Kendal Nottage listed his most valuable single asset as The Islander Hotel now known as the Windward Palms Nottage reported that the place is now worth $35 million He did not mention his agreement with the company called IPI your favorite skirts pants jeans at rarely-seen savings What's better than Levi's®? Your favorite Levi's® styles at Myrons' great low prices Levi's() pull-on and Sport Timer" pants and skirt sport the extra comfort of stretch polyester and polyestercotton twill Levi's® Saddleman® jeans and skirt are made of 100 cotton denim Sizes 848 in bright or basic colors Sizes vary by style Choose: Levi's® Sport Timer' pant usually $28 now 1199 Levi's ® Sport Timer!" wrap skirt usually $25 now 1199 Levi's® Bend Over® pull-on pants usually 1799 now 1199 Levi's® Saddleman® denim jean or skirt usually $25 now 1199 gitive l'''' I ' ' ' - Illi I 0 4 CI 12 la e 1 : iota a as I ro g h IA Itlicla 1 ' f I c 9 ziive t BAHAMAS from IA the hotel Be said he'd never heard attorneys in the Bahamas given Caruana those phone num- I r7777777 4::'7! " : of Nottage before the hotel dis- :: : :or:::rtzl Last month she resigned from bers Kendal Nottage said he t ::: : ':: ::: r " ' !1:'''::: pute but he learned he had tir'4it:'::!‘k: : : eight companies that have been doesn't remember giving the num- '- ::':' :book next to the names "Kendal" '1: ::!' '' " - " "considerable clout " : f':c 't:i'14 ii':?: linked to Caruana including IPI hers to Hurley ' and "Ruble" I : ' :4 : : Kendal Nottage says that he gi "''3 ':'::f 1! Mrs Nottage also said she could The Nottages say they have The Commission has had a hard 1 :? !: -'::7"'"' '-::'-: '!:: i asked Rubie who is one of his law :: r '''1:f': fr'': ‘''41 t'H' not remember why she signed a never spoken a word to anyone time unraveling the affair Some :''": :: : : : partners where they could get the : kiI124 4I "" '74 )'' ''' 1 ' f check for $23008383 that was named Salvatore Caruana witnesses have refused to testify ::::'::::::: 4 ::''5' :'1 : y : : money for the hotel She suggested tf!'-C:4::71::':':: 4F deposited in IPI's account in April On Saturday the Royal Corn- Others cannot: The man who ''':':::''"0' : ::ko-rs44::i': ::: i IPI a Bahamian company she says : 1t :e 0 A ' 1983 According to the Central mission ordered them to produce delivered the $400000 cash for the "!:?' : :: :'' :!vi411cik :::144 i :7 : she incorporated for an unknown 1:::: 4e-e A'"''4 Bank of the Bahamas the money their law firm's corporate files hotel purchase was murdered exe- ' :: 'r: " :'5":N1 y: : : :::::!: client of another Boston lawyer 7 ' kk4 -' ' -0 came from a US dollar account The Nottages have been charged -cution-style two years ago Car- : :!:::::H:: ! ' 4 !::::':':: :!: ::: That mystery client according :::: t:!:44 C-4: : maintained by the Nottage law with no crimes uana himself has been missing :t"::::' ' : t Ae41:::(: :'''':''':::: ii to evidence supplied to the Royal r t::?: i : e' :-406 : : firm Attorney F Lee Bailey who since April when he failed to 4'::-1 4:40-ft:- ::i?::A Commission was Salvatore M ': 101F$''::: ':::: ' 0"-0': : : : "It should not be a matter of represents Pindling before the appear for trial on US charges of -":: :Ji:::':::: !(442inp 4: : Caruana :::' :"::: : k:o: : concern" Mrs Nottage assured Royal Commission says Ed Hurley running a marijuana smuggling '':':'::::::::'::::::: e-i: 'i:'::4: y'' ' 4 Caruana 45 was born in West ' 1:5''' ' '''Z:r:': 1 i l the Royal Commission last Satur- "simply didn t inform the Not- :ring 1' - : ': ' :' st 4 " Peabody Mass Federal drug ' : ': :1 :tt-40 : r : : day tages about who really controlled :':::: i: 3: : agents describe him as a : :i : 7 : : hl rs Nottage described the IPI- IPI He says they had no idea it Trail begins "large-scale" marijuana smuggler Islander deal as a "hybrid ' be- was an accused mobster "'''''- ': ":'' !:1 ' 4:: ' associated with convicted drug According to court : tween a loan and a joint venture Caruana himself is still a DEA The following accot is based -:' ' :i t toi 1 : kingpin Jamiel (Jimmy) Chagra documents and federal Her husband called it a "peculiar fugitive and unavailable for com- on evidence before tun he Royal ': '-i :: 'IL 1 s : who was charged but acquitted in and special arrangement" nt His trial attorney is Joseph Commission interviews with US T the 1979 murder of US District prosecutors Salvatore According to document ob- me Balliro — the same man who prosecutors and sworn statements I did not do not have Judge John Wood in Texas tamed Commission by the Royal Commion Michael 1 1 n- helped sell the Islander Hotel to by agents of the FBI and Drug But according to court docu- alicHael uttruana the "loan" originally was to be Kendal Nottae Caruana is more than just a pot t Enforcement Administration not ever fronted for ments and federal prosecutors secured by a mortgage — yet no g The trail begins at the Islander anybody!' above is a known mortgage has ever been executed Balliro says he doesn't know Hotel a 100-room complex in smuggler He is a known associate associate of Gennaro All that exists is a typed agree- where his client is Freeport Grand Bahamas It was Kendal Nottage cabinet Gennaro Angiulo the alleged ment that the Nottages and IPI Federal drug agents believe constructed in the early 1970s by minister -underboss" of the Patriarca mob Angiulo the alleged will split any profits from the Caruana might be hiding in Free-Tampa builder Jim Walter and family based in Providence RI (underboss' of the future sale of the Islander Hotel port others who had hoped to turn the Angiulo currently faces federal "Have you ever made any This is not the first time Kendal hotel into a lucrative resort racketeering charges in Boston Patriarca mob family repayments to IPI?" Ellicott asked Nottage's name has surfaced in a Robert F Tarr then a financial tions Jeremiah O'Sullivan head of the based in Providence Kendal Nottage last week US investigation ence assistant to Walter was assigned In 1979 a company called federal strike force in New En- "NO sir" the Cabinet Minister Nottage and Prime Minister the task of making the Islander Baretta Investors made another gland identified Caruana as an n T replied Pindling each owned 5000 shares profitable He says it was an offer on The Islander — $350000 unindicted co-conspirator in the IA1 Mrs Nottage said no mortgage of Columbus Trust Co a Nassau impossible job for a hotel appraised at $18 Angiulo case - was ever signed because "both trust allegedly used as a launder-In an interview with The Her- million In May 1979 an exasper- Agents say Caruana has a repu- sides just allowed the occasion to ing conduit for American smug aid Tarr said the hotel was ated Jim Walter said yes tation as a dangerous man Hurley has said that a man lapse a bit" — more than four glers plagued by "constant interference "We really took a bath" Tarr Caruaenaor income tax tax h ha previously $ named Larry Martin delivered years After Columbus Trust was iden- pressure" from the Bahamian gov- said "No doubt about t ' convicted 400000 h to him on July 8 Within 15 days of the Islander tilled by US prosecutors in 1980 ernment over work permits II- The new buyers were a group of an d assault on a federal officer 1980 The money was then paid to Hotel sale to the Nottages a man Nottage and Pindling sold their censes and tax restrictions Wal- Boston businessmen that included according to assistant US attor- Balliro's Baretta Investors for the named "Michael Caruana" made shares and declared that they ter he said decided to get out restaurateur Robert Deutsch and ney Janis Berry She said Caruana troubled Islander two flights from Fort Lauderdale didn't know about any illegal Twice American firms offered noted trial lawyer Joseph J Balli- once unleashed a fierce guard dog Martin who work ed for Car- to Freeport according to Bahami- activities The company later lost to buy the Islander for more than ro For years Balliro has repre- on an FBI agent trying to serve uana was named in the same an immigration records He was its Bahamian banking charter and $1 million Tarr said and both sented some of the most infamous him with a subpoena smuggling indictment In June accompanied by Ed Hurley folded times permission was denied by organized crime figures in New Confessed smuggler Timothy I 1982 Martin was shot to death Convicted smuggler Arnie Katz Last September NBC reported the Bahamian government Even- England many associated with Minnig said he once paid aruana and stuffed fed in the trunk of a car in who also was on the trips says that Nottage was the target of an tually in 1976 a new offer came Patriarca to settle a dispute between Minnig Wakesfield Mass The murder s that Caruana stayed at the Island- aborted FBI bribery scam to be — from Kendal W Nottage Balliro said he had assembled and Jimmy Chagra both of whom unsolved er and bragged that he was the carried out aboard a yacht off the Nottage not only was a member the Boston investors after he'd were using the Bahamas as a drug The Nottages said they never new owner of the hotel He said Bahamas Pindling angrily branded of Parliament he was a former heard about a "good buy" on a smuggling route According to one heard of Larry Martin his partner was a Cabinet Minis- the plot an attempted "kidnap- law partner and longtime friend of Freeport hotel DEA agent Caruana's method of ter ping" Prime Minister Linden Pindling After buying the Islander Balli- settling the squabble was to No questions asked On November 25 1983 a leder- In fact The Herald has learned Pindling's son (-Ale is a member of ro's group immediately filed a threaten Chagra with nonsurgical al grand jury indicted Caruana and the FBI had nothing to do with it Nottage's law firm lawsuit to oust Kendal Nottage's castration Even though she was listed as a 17 other men for running a The case was launched by US Tarr knew of Nottage's strong company from the premises The SOon Minnig himself began to director and secretary of IPI Mrs marijuana and hashish smuggling Customs agents and never carried political connections Walter told litigation dragged Balliro said and pay Caruana $10 a pound for g all Notta e said she had no idea who ring out because the State Department him to go ahead with a lease-pur- the investors got nervous the marijuana he smuggled into supplied the $400000 and never When DEA agent Peter Vinton scotched the idea Nottage was chase deal Nottage told Balliro that he was the United States M innig said asked S She said she set up many arrested Salvatore Caruana he never approached According to Tarr Nottage's "crazy' if Balliro seriously The Nottages said they knew corporations including IPI at Ed noticed Caruana was carrying a Nottage has declared himself to company paid $26000 of a thought he was going to get the nothing of Caruana They said Hurley's request small brown book Inside that be the wealthiest of all Bahamian $50000 down payment and moved hotel Balliro said he started to they dealt exclusively with lawyer N ottage acknowledged the book was the calling card of Ruble Cabinet Ministers with an esti- into the Islander believe him After a year he told Ed Hurley "very strong possibility that Hur- Nottage ' mated net worth of $79 million "Then he never paid anything his partners it was time to bail out According to Commission testi- ley was acting for Caruana and Several phone numbers were On his 1984 financial disclosure else Just ignored it” Tarr said Nottage proposed a deal — he mony Hurley has acknowledged that Caruana supplied the written in the book next to the form required by Bahamian law 'We couldn't get him out We and his wife would buy all the - representing Caruana n business $400000 loan names "Ruble" and "Kendal" One Kendal Nottage listed his most were basically helpless" shares in Baretta Investors and matters but said he never men- Robert Ellicott chief counsel for of them was "80 3 9-32 -4068" It valuable single asset as The Island- Nottage said he had a legitimate obtain the hotel for $400000 tioned his name to the Nottagefs the Royal Commission asked Mrs was the Nottages unlisted home er Hotel now known as the option to buy and that the Walter Balliro said Monday that he and Hurley has refused to test! y Notta e "Didn't you think it was number Another was "809-322- Windward Palms group was trying to sell the hotel his partners decided to sell be- before the Royal Commission important t to know who your 3140" which is an unlisted phone Nottage reported that the place out from under him Nottage said cause it was "obvious" that the about the $400000 loan clients were?" in Nottage's office is now worth $35 million He did he and Rubie had pumped thou- Bahamian government would nev- He did not return several Herald "No sir" she replied adding Last week Ruble Nottage sug- not mention his agreement with sands of dollars into it for renova- er give his group permission to run phone calls Monday that this was "the norm" for gested that Ed Hurley might have the company called IPI MO Clf11 EP 0 ETE) 0 ts 14& fot tn ------ :-(---- - !- 4 ' : : - - le ' de :ief ' - - I 91 c 4 : 40 411 " f - 11 0 i' : - k ‘ ' ' :2 i salt- 33°b (0 at isi CD - in omen : i ''' : - t:f3:- -' -'3oal '' - ziTo A epoppommolq )' ' ''''''''' ' t 4 3:lk- 4" : 4 ' ' i'lf 4 ' ' ' - - ‘ ' ' V c''!: it'C''''41Aw-'110!44 : ' it - : - : : ' ' 7 777777‘ r : 07 - i2:1' -0r"a iP 'J 7-:1: N I - ::- : '' ' 7'': :::i:': :':'- '--t ct'-'1 ' AV :V:::4: i ' : ::"1' '-' ' ''''i:' : :: '''' t 4 : :': ?::: AZ:tg::l:il4: :: : : ' ::4: --::::: f ':: : :i : i Pee i ' t 1 ':: : ::::::::::V:: -::::1:: Ii§: - : : : :: ''''-':i: '''''"'''-H:'7' 1 - ' ' i:A'll :' !: l' i: ' :: :::Z:''''': ''7' s: : ''::::' : ' :''1:' 'r v : 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