Reputed mobster Joseph (Joey the Clown) Lombardo was jailed in Chicago yesterday pending sentencing after his conviction for conspiring to bribe Sen. Howard W. Cannon (D-Nev.). But co-defendant Allen M. Dorfman, a millionaire insurance executive, remained free when an appellate court lowered his bail.
Dorfman, 59, had been ordered to post $5 million in cash or negotiable securities by U.S. District Court Judge Prentice H. Marshall. Asked to reconsider, Marshall refused, describing Dorfman in his ruling yesterday as "a manipulative, ruthless person" who could expect a long prison term.
But a three-judge panel of the 7th Circuit Court of Appeals later allowed Dorfman to post $1 million in cash along with an estimated $10.75 million in stock for his insurance agency.
Dorfman's appeal included an affidavit from Albert Jenner, a prominent Chicago attorney and one of Dorfman's lawyers, who described him as a "friend" and a "thoroughly devoted" family man who was "extremely unlikely" to flee.
Lombardo, who was unable to raise the $2.5 million bail set by Marshall, went to jail in mid-afternoon. His appeal was rejected.
Teamsters union President Roy Lee Williams and two officials of the union's $3.5-billion Central States Pension Fund, Amos Massa and Thomas O'Malley, were also convicted Wednesday in the unsuccessful 1979 scheme to try to bribe Cannon with a bargain price for a piece of Las Vegas real estate owned by the pension fund. They were released on their own recognizance until sentencing on Feb. 10.
Under federal law, Williams, 67, can remain in his $225,000-a-year Teamsters job until all his appeals are exhausted. Supporters of legislation to force union officials to quit upon conviction of a crime failed yesterday to get a House vote on it. Although passed by the Senate, the measure is bottled up in a House Labor subcommittee.
In Chicago, Marshall had set the high bonds for Dorfman and Lombardo because he held that there was a substantial risk that they would flee.
Dorfman, a longtime influence behind the scenes in Teamsters affairs, has been described in FBI memos and affidavits as a financial consultant and middleman for members of organized crime. His firm, the Amalgamated Insurance Agency, still handles insurance claims for the Teamsters' Central States Health and Welfare Fund.
Lombardo, 53, is a frequent visitor at Dorfman's insurance offices. FBI records describe him as the man who "controls" Dorfman for the Chicago crime syndicate.
Lombardo was reportedly able to come up with $500,000 toward his bond by yesterday's deadline, but no more. His lawyers asked for a postponement until Dec. 27 so that he could spend the holidays with his family, but Marshall rejected the request.
The judge noted that "Mr. Dorfman has been previously convicted of defrauding the Central States Pension Fund . . . . In these circumstances, Mr. Dorfman can reasonably expect a substantial period of incarceration if post-trial motions are denied. The evidence in this case . . . shows him to be a manipulative, ruthless person who regards his deceits and manipulations as achievements and boasts of them."
After the appellate court intervened, Dorfman's lawyers submitted seven cashier's checks totaling $1 million, along with certificates for the stock that Dorfman and his mother, Rose, hold in Amalgamated.
All five defendants convicted in the bribery scheme were found guilty on 11 counts each, with each count carrying a five-year prison term.