By William Bastone with Andrew Goldberg & Joseph Jesselli
The Smoking Gun: April 7, 2014

When friends and family members gathered recently at the White House for a private celebration of Michelle Obama’s 50th birthday, one of the invited partygoers was a former paid FBI Mafia informant.

That same man attended February’s state dinner in honor of French President Francois Hollande. He was seated with his girlfriend at a table adjacent to President Barack Obama, who is likely unaware that, according to federal agents, his guest once interacted with members of four of New York City’s five organized crime families. He even secretly taped some of those wiseguys using a briefcase that FBI technicians outfitted with a recording device.

The high-profile Obama supporter was also on the dais atop the U.S. Capitol steps last year when the president was sworn in for a second term. He was seated in front of the chairman of the Joint Chiefs of Staff, two rows behind Beyonce and Jay Z, and about 20 feet from Eric Holder, the country’s top law enforcement officer. As head of the Department of Justice, Attorney General Holder leads an agency that once reported that Obama’s inauguration guest also had La Cosa Nostra contacts beyond Gotham, and engaged in “conversations with LCN members from other parts of the United States.”

The former mob snitch has become a regular in the White House, where he has met with the 44th president in the East Room, the Roosevelt Room, and the Oval Office. He has also attended Obama Christmas parties, speeches, policy announcements, and even watched a Super Bowl with the First Family (an evening the man has called “one of the highlights of my life”). During these gatherings, he has mingled with cabinet members, top Obama aides, military leaders, business executives, and members of Congress. His former confederates were a decidedly dicier lot: ex-convicts, extortionists, heroin traffickers, and mob henchmen. The man’s surreptitious recordings, FBI records show, aided his government handlers in the successful targeting of powerful Mafia figures with nicknames like Benny Eggs, Chin, Fritzy, Corky, and Baldy Dom.

Later this week, Obama will travel to New York and appear in a Manhattan hotel ballroom at the side of the man whom FBI agents primarily referred to as “CI-7”–short for confidential informant #7–in secret court filings. In those documents, investigators vouched for him as a reliable, productive, and accurate source of information about underworld figures.

The ex-informant has been one of Obama’s most unwavering backers, a cheerleader who has nightly bludgeoned the president’s Republican opponents in televised broadsides. For his part, Obama has sought the man’s counsel, embraced him publicly, and saluted his “commitment to fight injustice and inequality.” The president has even commented favorably on his friend’s svelte figure, the physical manifestation of a rehabilitation effort that coincided with Obama’s ascension to the White House. This radical makeover has brought the man wealth, a daily TV show, bespoke suits, a luxury Upper West Side apartment, and a spot on best seller lists.

Most importantly, he has the ear of the President of the United States, an equally remarkable and perplexing achievement for the former FBI asset known as “CI-7,” the Rev. Al Sharpton.

A lengthy investigation by The Smoking Gun has uncovered remarkable details about Sharpton’s past work as an informant for a joint organized crime task force comprised of FBI agents and NYPD detectives, as well as his dealings with an assortment of wiseguys.

Beginning in the mid-1980s and spanning several years, Sharpton’s cooperation was fraught with danger since the FBI’s principal targets were leaders of the Genovese crime family, the country’s largest and most feared Mafia outfit. In addition to aiding the FBI/NYPD task force, which was known as the “Genovese squad,” Sharpton’s cooperation extended to several other investigative agencies.

TSG’s account of Sharpton’s secret life as “CI-7” is based on hundreds of pages of confidential FBI affidavits, documents released by the bureau in response to Freedom of Information Act requests, court records, and extensive interviews with six members of the Genovese squad, as well as other law enforcement officials to whom the activist provided assistance.

Like almost every other FBI informant, Sharpton was solely an information source. The parameters of his cooperation did not include Sharpton ever surfacing publicly or testifying on a witness stand.

Genovese squad investigators–representing both the FBI and NYPD–recalled how Sharpton, now 59, deftly extracted information from wiseguys. In fact, one Gambino crime family figure became so comfortable with the protest leader that he spoke openly–during ten wired face-to-face meetings–about a wide range of mob business, from shylocking and extortions to death threats and the sanity of Vincent “Chin” Gigante, the Genovese boss who long feigned mental illness in a bid to deflect law enforcement scrutiny. As the mafioso expounded on these topics, Sharpton’s briefcase–a specially customized Hartman model–recorded his every word.

Task force members, who were interviewed separately, spoke on the condition of anonymity when describing Sharpton’s work as an informant and the Genovese squad’s activities. Some of these investigators provided internal FBI documents to a reporter.

Records obtained by TSG show that information gathered by Sharpton was used by federal investigators to help secure court authorization to bug two Genovese family social clubs, including Gigante’s Greenwich Village headquarters, three autos used by crime family leaders, and more than a dozen phone lines. These listening devices and wiretaps were approved during the course of a major racketeering investigation targeting the Genovese family’s hierarchy.

A total of eight separate U.S. District Court judges–presiding in four federal jurisdictions–signed interception orders that were based on sworn FBI affidavits including information gathered by Sharpton. The phones bugged as a result of these court orders included two lines in Gigante’s Manhattan townhouse, the home phone of Genovese captain Dominick “Baldy Dom” Canterino, and the office lines of music industry power Morris Levy, a longtime Genovese family associate. The resulting surreptitious recordings were eventually used to help convict an assortment of Mafia members and associates.

Investigators also used Sharpton’s information in an application for a wiretap on the telephone in the Queens residence of Federico “Fritzy” Giovanelli, a Genovese soldier. Giovanelli was sentenced to 20 years in prison for racketeering following a trial during which those recordings were played for jurors. In a recent interview, the 82-year-old Giovanelli–now three years removed from his latest stint in federal custody–said that he was unaware that Sharpton contributed in any fashion to his phone’s bugging. He then jokingly chided a reporter for inquiring about the civil rights leader’s past. “Poor Sharpton, he cleaned up his life and you want to ruin him,” Giovanelli laughed.

While Sharpton’s acrimonious history with law enforcement–especially the NYPD–rankled some Genovese squad investigators, they nonetheless grudgingly acknowledged in interviews that the activist produced for those he would go on to frequently pillory.

Genovese squad members, however, did not share with Sharpton specific details about how they were using the information he was gathering for them. This is standard practice since FBI affidavits in support of wiretap applications are filed under seal by Department of Justice prosecutors. Still, Sharpton was briefed in advance of his undercover sorties, so he was well aware of the squad’s investigative interest in Gigante and his Mafia cronies.

Sharpton vehemently denies having worked as an FBI informant. He has alleged that claims of government cooperation were attempts by dark forces to stunt his aggressive brand of civil rights advocacy or, perhaps, get him killed. In his most recent book, “The Rejected Stone,” which hit best seller lists following its October 2013 publication, Sharpton claimed to have once been “set up by the government,” whose agents later leaked “false information” that “could have gotten me killed.” He added, “So I have been seriously tested in what I believe over the years.”

In an interview Saturday, Sharpton again denied working as a confidential informant, claiming that his prior cooperation with FBI agents was limited to efforts to prompt investigations of drug dealing in minority communities, as well as the swindling of black artists in the recording industry. He also repeatedly denied being “flipped” by federal agents in the course of an undercover operation. When asked specifically about his recording of the Gambino crime family member, Sharpton was noncommittal: “I’m not saying yes, I’m not saying no.”

If Sharpton’s account is to be believed, he was simply a concerned citizen who voluntarily (and briefly) joined arm-in-arm with federal agents, perhaps risking peril in the process. The other explanation for Sharpton’s cooperation–one that has uniformly been offered by knowledgeable law enforcement agents–presents the reverend in a less noble light. Worried that he could face criminal charges, Sharpton opted for the path of self-preservation and did what the FBI asked. Which is usually how someone is compelled to repeatedly record a gangster discussing murder, extortion, and loan sharking.

(Read the full report and source documents at The Smoking Gun)

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