The Bangor Daily News from Bangor, Maine on September 24, 1988 · 5
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The Bangor Daily News from Bangor, Maine · 5

Bangor, Maine
Issue Date:
Saturday, September 24, 1988
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X it rmi Jn!'- ' 1 1 ' ' ' ' 'f i v-mT 1 5T: T MID7MAlM? INSIDEC Hunting section features winners of doe permits seasonal stories Special section TV Update USA Weekend Comics Maine Style y! Laundered money washes up in Maine Mafia kingpin made loans to state airline businesses (c) 1988 Bangor Daily News rsT vgs m vW1 By John S Day Of the NEWS Staff When federal agents broke into a hidden vault at Mafia kingpin Salvatore Michael Caruana's fortress home in West Peabody Mass two years ago they discovered encoded computer records detailing a criminal empire whose drug profits led back to Maine businessmen to the slate's largest home-based airline and to the plane that plunged Samantha Smith to her death In fact Federal Aviation Administration records obtained by the NEWS indicate that Caruana 49 a fugitive who an FBI spokesman said was among the agency's most wanted criminals was the behind-the-scenes owner of the Bar Harbor Airways Beech 99 commuter plane Exclusive d? f$ £ ' IWlTEDSM'iXSm- ft &-Xt 4 " -jr- X? that crashed while attempting to land at the Auburn airport on Aug 25 1985 killing Samantha Smith her father and six other passengers Law enforcement officials describe Caruana as a “made” ie initiated member of the New England La Cosa Nostra crime family headed by the late Raymond LS Patriarca According to court testimony FBI tapes secretly recorded in 1981 at a mob hangout in Boston’s North Epd indicated that Caruana shared his extensive drug profits with Boston Mafia boss Gennaro "Jerry” Angiulo The tapes helped convict Angiulo of racketeering charges in February of 1988 The disclosure that a Mafia figure owned the Samantha Smith crash plane raises new questions about whether the Maine Legislature concerned about retaining local air service took a hear-no-evil stance last May during the deliberations that led up to the approval of a $14 million retroactive tax break for the airline The tax break legislation was passed during the closing hours of the legislative session following an intensive lobbying campaign Legislators were told that collection of the $1 4 million tax levy might bankrupt Bar Harbor and force the airline to cut back its operations or sell out to out-of-state interests The ink on the tax-break bill had hardly begun to dry when Bar Harbor began laying off personnel and cutting back service Last week after Bar Harbor's owners announced that they were in the process of selling control of the Bangor-based airline to Texas Air which has a reputation for union-busting and cost-cutting a host of legislative leaders complained that they had been double-crossed In separate interviews House Speaker John Martin State Senate See MAFIA FUGITIVE on Page 4 NEWS Graphic by Eric Zelz Salvatore Caruana master of high-tech crime By John S Day Of the NEWS Staff Salvatore Caruana is a flamboyant high-tech mobster who married a girl from Dexter owned a lakeside camp in Maine and loaned hundreds of thousands of dollars to individuals in the state The federal government claims that the loan money was derived from Caruana’s hugely-profitable drug trafficking activities They have filed a civil suit in federal court against Albert Tempesta Sr a Dexter automobile dealer to recover $350459 in principal and interest on a $275000 loan by Caruana to Tempesta’s Dexter Leasing Co Salvatore Caruana that extended the loan International Premi um Investments Ltd were seized after the discovery of records linking that firm and five other Caribbean-based institutions to Caruana during a raid on Caruana’s heavily-fortified compound two years ago Contacted by telephone Tempesta said he could not comment on the pending legal suit Tempesta’s attorney William Bolton of Reading Mass said “Our defense is that the bulk of the money in fact has been repaid The matter still is in litigation” Asked how Tempesta came to be involved with Caruana Boulton explained “It’s my understanding that (Caruana) used to visit up there and became friendly with Tempesta through Caruana’s second wife” Caruana’s second wife Sandra is a resident of Dexter The couple owns a lakeside camp in the area authorities said They said that Mrs Caruana leased a par from Tempesta US Deputy Attorney Robert Ullmann said "We claim that (Tempesta) owes the government over $350000 on loans that Car-uana made to him through a front company" If the government prevails in court Tempesta would be required to either pay off the loan or make payments to the Justice De partment “In effect we would be stepping into Caruana’s shoes” Ullmann said The loan to Tempesta and a similar $262500 note to Joseph Caruso the late founder of Bar Harbor Airways were among 45 similar transactions totaling $28 million involving 45 individuals Authorities said that some of the loan recipients were Massachusetts police officers who at times acted as body guards for Caruana Those transactions according to Lt Peter McCarthy head of the Maine State Police’s special investigation unit were vital to Caruana’s drug empire “He needed the ability to cleanse money to take bad money made in the drug trade out of the country — usually flown out — and then deposit that money in (Caribbean) lending institutions Then he would channel the funds back to the United States in the See CARUANA on Page 4 i Deaver receives probation for lying WASHINGTON (AP) - President Reagan’s friend and one-time close adviser Michael K Deaver was given a suspended three-year sentence ana fined $100000 Friday for lying about lobbying for big companies after leaving the White House US District Judge Thomas Penfield Jackson said Deaver’s battle with alcoholism “does not excuse but it helps to ex-plaiu” possible judgment lapses while the former presidential aide was under investigation for possible ethics-law violations Outside the courthouse Deaver told re- porters: “It was a very fair sentence if I had been guilty” Flanked by his wife Carolyn and his daughter Aman da Deaver said he was relieved that for the first time since the investigation began 2'2 years ago “I know what’s going to happen to me — and for that I’m grateful” “It was a very fair sen tence if I had been guilty” — Michael K Deaver Rep John Dingell D-Mich chairman of the House Energy and Commerce Committee before which Deaver was convicted of lying criticized the sentence as being too lenient saying it “sends the wrong message” 1 "The message 'is the powerful can get away with things most people can’t That’s the standard to which this administration has lowered the country” Dingell said in a statement Deaver said he would appeal the conviction and the sentence which also barred him from lobbying the federal government for profit during a three-year probation The judge said Deaver would not have to pay the fine or perform community service until after the conviction is reviewed by an appellate court Reagan who was campaigning for Republican presidential candidate George Bush in Florida said in a statement: “This is a sad day Mike Deaver has been our friend for more than 20 years and has served us and his country with uncommon dedication" ' The judge said Deaver’s “realization that an inexorable disease process had overtaken him coincided with the most intense and uncomfortable public exposure of his personal life he had ever experienced" Preoccupation with alcoholism may have resulted in “distraction from exercising the judgment required” to deal with the investigation by a House subcommittee and a grand jury the judge said Nevertheless Jackson said "I believe as the jury obviously did that Michael Deaver knew his answers were false He knew he had made the contacts with government officials that his testimony disavowed” But Jackson said a prison term would be inappropriate because it would not deter others from committing “a crime of circum- See DEA VER on Page 3 Great Northern to close mill for 2 days to solve soot problem Smokestack to be cleaned by Oct 4 By Mary Anne L'agasse Of the NEWS Staff MILL1NOCKET - Great Northern Paper Co will close its Milii-nocket mill for about two days before Oct 4 to clean out a 347-foot smokestack that has been emitting "large flakes of black soot” Jeff Emery an environmental specialist in tne Department of En vironmental Protection’s Air Bureau said a DEP chemist identified a sample of the material as "oil soot” He said the black flakes could not be inhaled and were more of a “nuisance” than anything else He said that further analysis would reveal if there were "fine particles” that might pose a health hazard Dennis Keschl the director of the air bureau said that the issue re garding public health was “can they inhale the particles?’’ He said the problem had been hionitored weekly since July According to union officials there have been between 400 and 700 insurance claims filed against the company for replacement of paint on vehicles Some people are concerned that if the soot is damaging paint on the cars it could also pose health hazards Gordan Manuel GNP’s spokes man confirmed that the company had had a “large number” of claims He said officials at the company urged people with complaints to contact them But Great Northern officials said they did not believe there was a health hazard Dale Phenicie GNP’s manager of environmental affairs said the material was a sooty type of material that resulted from combustion and was similar to the creosote in a house chimney but contained more inorganic materials “Primarily it’s acidic” Phenicie said He described the material as a “heavy" and “large size” material Phenicie said “Our respiratory systems protect us from those kinds ot materials It is only when the material becomes fine and aerosol that it would really pose a problem” He said that the air-monitoring station located in the so-called "Little Italy" section of town across from the mill was being watched closely The company has one monitoring station with two particulate-monitoring devices One captures everything flowing by and the other captures the small particles people breathe' Phenicie said the filter pad from both test units were analyzed for sulfates an indicator of material like the stack material that might be in- See GREAT on Page 2 Burned buildings’ owners contact Town Office By Brenda Seekins Mid-Maine Bureau Mid-Maine PITTSFIELD - With time running out it 'appears that work could begin soon to remove fire-damaged properties in Pittsfield Town Manager Dwight Dogherty said that as the deadline approached Thursday Sept 22 principals of both properties contacted the Town Office An attorney for Valley Graphics contacted Dogherty reporting that details were being worked out with the insurance company and should be settled Friday to allow the owner to remove the building In regards to Kristina's Place Dogherty said a local contractor had contacted the of fice about removing the property on behalf of the owner Both Valley Graphics and Kristina's Place were damaged by fire in early summer and were served notice by the town Aug 22 to clean up the debris from their respective fires within 30 days The alternative to cleanup is reconstruction of the property with completion in six months Dogherty said Wednesday there had been no efforts to clean up debris7 1 from the Valley Graphics fire on Main Street or Kristina's Place on South Main Street Similarly he had not heard from either property own er regarding plans to clear the lots or rebuild ‘ Up until the Thursday deadline Dogherty expected he would be preparing resolutions for the next meeting of the Pittsfield Town Council to have the properties declared dilapidated and dangerous buildings That action would grant yet another 30 days from the time it was enacted two weeks from its introduction for Sacond clMt pottage psld at Bangor Mains 04401 Publication number USPS 041000 Partly sunny : today High 70 Clear tonight Lows in 40s Sunny Sunday Highs in 60s Details on Page 2 Statewide Edition Yesterday's distribution: 86664 Q 37 00006 See FIRE DEBRIS on Page 17 1 I 7 V i t ti 11

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