Page 2 - The Michigan Daily - Tuesday, April 10, 1984 Mob's heroin ring uncovered NEW YORK (AP) - Thirty-one people were charged yesterday in a $1.65 billion organized crime heroin ring that officials said used mob-run pizza parlors as a conduit for a massive drug importing business. U.S. Attorney General William French Smith, who came to New York to announce the charges, said it was the most significant such case involving organized crime that the federal government had ever uncovered. AT ONE END of the ring was an Italian figure in the notorious "French Connection" drug cases, and at the other,a reputed New York underboss for the Carmine Galante crime family, officials said. In between were Sicilian immigrants in the Mid- western pizza parlors who helped funnel an estimated 1,650 pounds of heroin worth $1.65 billion over the past five years. Words such as "flour" or discussions about such seemingly innocuous topics as cleaning the pizza parlor tables were used as codes for the drug deals managed by the parlor operators, officials said. "THEY WERE the go-between," said Rudolph Giuliani, the U.S. Attorney based in 'Manhattan, where the criminal complaint against the defendants was filed. Charges of conspiracy to violate federal drug laws were lodged against 31 people. Eight defendants, in- cluding the prime supplier in Italy and the reputed Mafia underboss, Salvatore Catalano, also were charged with conducting a criminal enterprise and could face life imprisonment. Up to 40 people may face charges in the thriving drug operation, officials said. "It is the most significant case involving heroin trafficking by traditional organized crime that the federal government has ever developed," Smith said. OUTLINED by Smith, Giuliani and FBI Director William Webster, the ring was a sweeping operation that laundered tens of millions of dollars in drug proceeds through other countries. From October 1980 to September 1982 alone, the group sent more than $5 million in cash from New York City to Bermuda, Switzerland and other coun- tries, they said. Proceeds from the illicit operation enabled some of the defendants to open huge accounts at brokerage houses, where they made sophisticated business in- vestments, court papers said. The prime heroin supplier was identified as Gaetano Badalamenti of Sicily, Italy, said to have been a major heroin trafficker since the French Connection drug cases of the 1960s and early 1970s. Until his arrest Sunday in Madrid, Badalamenti had been a fugitive and "the most wanted man in Italy," Giuliani said. The officials declined to comment on how the heroin was smuggled into the United States. But they said Sicilians operating pizza shops in Illinois, Michigan, Wisconsin and other states were at the heart of the operation. Nicholson wins Oscar for supporting actor (Continued from Page 1) "I remember a few years ago when a "SUNDAE IN NEW YORK" was friend of mine, Arnold Shapiro, won for voted best animated short film, and the documentary Scared Straight, said "Boys and Girls" was best action short Haley. "He promised me if he won, he film. would speak no more than 30 seconds. The Academy of Motion Picture Arts But when he got on stage, he talked and and Sciences, whose members vote for talked. Two and a half minutes later I the winners, reported that only three of grabbed him by the neck backstage. the acting nominees sent regrets for the " 'But I only talked 30 seconds!' he ceremonies: actor-playwright Sam insisted. That's the trouble: winners Shepard, supporting-actor nominee for get carried away by the excitement of "The Right Stuff;" Albert Finney, up the moment, and they lose all sense of for best actor because of "The time." Dresser;" and Tom Conti, nominee as The "Yent" songs were assigned to best actor for "Reuben, Reuben." Jennifer Holliday for "The Way He PRODUCER Jack Haley planned Makes Me Feel" and Donna Summer what he hoped would be a fast-moving for "Papa, Can You Hear Me?" Mac show. The customary extravaganza Davis was on hand to give the country was abandoned, along with big produc- flavor to "Over You" from "Tender tions for musical tributes. The set was Mercies." designed to eliminate time-consuming "Herb Alpert was getting his Tijuana walks to the podium. Brass together for a tour, and I asked Halen admitted he was unable to con- him to do 'Maniac' from 'Flashdan- trol acceptance speeches, which have ce,'" Haley reported. "It will be the sometimes resembled filibusters, first time the Brass have played especially in the minor categories. together in 15 years." SOPHOMORE OR JUNIOR YEAR ABROAD PARSONS SCHOOL OF. DESIGN IN PARIS Bachelor of Fine Arts programs in: Fine Arts Communication Design and Illustration Photography Interior Architecture and Design For a catalog describing Parsons School of Design at The American College in Paris, return the attached coupon to: Parsons School of Design Admissions Office 66 Fifth Avenue New York, NY 10011 Please forward information on the Sophomore or Junior Year in Paris to: Name Address City/State/Zip -11 IN-BRIEF Compiled from Associated Press and United Press International reports Government admits procedures may promote quality problems WASHINGTON - The government is acknowledging for the first time that its emphasis on independent inspections and mounds of paperwork may be partly responsible for quality problems plaguing dozens of nuclear power plants. In a 496-page report expected to be sent to Congress later this week, the Nuclear Regulatory Commission criticizes itself for failing screen utilities on their management capability before giving them permits to build the multibillion-dollar projects. While repeating earlier assertions that many utilites with experience only in building and operating coal-burning electric plants are incapable of managing the myriad of complexities of nuclear power, Commissioner Victor Gilinsky put the onus on the government. "'These companies were encouraged to get into the nuclear business by the government," he said in discussing the report. "And there was disinclination to slow that down. That is the root of the problem here." Senate debates deficit-cutting bill WASHINGTON - The Senate began sifting through a 1,334-page bill with hundreds of provisions designed to reduce the federal deficit by $63 billion over the next three years. The revenue-raising bills range from higher taxes on liquor, phone service and diesel fuels to higher premiums for Medicare recipients. "There is much more to be done on the deficit problem than what is contained in this bill, including major savings in defense and non-defense appropriated funds, said Sen. Robert Dole (R-Kan.), chairman of the Finance Committee and chief author of the bill. "But this bill makes a very good start, and start we must if we are to have a significant impact on the deficit this year." Sen. Howard Metzenbaum w(D-Ohio), noted the bill weighs 2 pounds 6 ounces and the the explanation is another 2 pounds, 2 ounces, "but in terms of substance, this is not a very heavy document." He said he found 33 new "loopholes" in the bill, but he failed, on a 64-18 vote, to eliminate one of them. That provision liberalizes the value of tax- free, tax-deductible gifts that an employer may give to a worker as a reward for long service, safety or productivity. Attorneys argue Gauntlett case LANSING - Attorneys on both sides told the Michigan Court of Appeals yesterday convicted rapist Roger Gauntlett should not have to undergo treatment with Depo-Provera, a drug said to diminish the sex drive. But they differed sharply on what should be done with the Upjohn Co. heir. The prosecution said Gauntlett should be resentenced while the defense said he was validly sentenced to five years probation in the first place. Gauntlett, 42, pleaded no contest to first-degree criminal sexual conduct for molesting his 11-year-old stepdaughter. Kalamazoo County Circuit Judge Robert, Borsos stirred nationwide controversy by ordering him to undergo treatment with Depo-Provera as a condition of probation. The appeals court agreed to hear issues raised by the defense and the prosecution. It has blocked the chemical treatment while considering the case. It was not known when the court would rule. Athletes threatened, Soviets say MOSCOW - The Soviet Union accused President Reagan yesterday of using the Olympics for political gain, charging there have been "slanderous allegations" and "open threats" of violence against Soviet atheletes and officials. "The U.S. administration is trying to use the Olympic games on 'the eve of the elections for its selfish political ends," said a statement from the Soviet National Olympic Committee, carried by the official news agency Tass. Moscow has not yet said whether it will participate in the summer games in Los Angeles. : The United States and several other Western nations boycotted the 1980 Moscow Olympics to protest the Soviet, invasion of Afghanistan. "President Reagan submitted to the International Olympic Committee written guarantees of the U.S. government's respect for the traditions, rules and provisions of the Olympic charter," the statement said. Facts show, however, that these obligations and guarantees are not respected in a number of major matters, the statement charged. Beirut factions reach agreement BEIRUT, Lebanon -- A committee of Lebanon's rival factions agreed yesterday to disengage their forces along the country's battle fronts at the end of a day of sporadic fighting between Christian and Moslem militias. Preceding the committee meeting at the prsidential palace in the suburb of Baabda, a fierce two-hour clash erupted in Beirut with militiamen using machine guns, rocket-propelled grenades and Jeep-mounted cannons. The Higher Political Committee, which approved a disengagement plan worked out by a security subcommittee, made the decision in a meeting chaired by President Amin Gemayel. The committee was formed last month at national peace talks in Lausanoe, Switzerland to work out long-range reforms for the country. But its work has been hampered by the failure of a cease-fire to take hold. The plan would separate forces along the "green line," a six-mile strip of no man's land in Beirut where Moslem militiamen are grouped on one side with Lebanese army units and Christian militiamen on the other. Under the plan, a buffer force of up to 2,000 soldiers with French and Lebanese observers would move into place in Beirut, and also along confrontation lines in the mountains to the southeast. A 4 Paper piles AP Photo At a news conference yesterday, Michigan Gov. James Blanchard gestures toward some of the state forms that will be eliminated under a new paperwork reduction plan. Blanchard said state businesses will have 98,500 fewer pages of forms to complete yearly now. Rash of arson leaves South Quad officials worried 6 (Continued from Page 1) residents at a special house meeting last week. "I'm one of the last ones out of this building and I don't want to burn, so when that fire alarm sounds I want you moving." Dormitory staff members are taking extra precautions to ensure that residents know the recent fire alarms were the result of real fires, not just the usual false alarms. "THERE HAVE been so many fires lately that students sometimes think they don't have to evacuate because they know the firethas already been put out," said campus security official Joel Allen. Susan Hoffman, another South Quad RA, said she knew of one RA "who actually had to pick up a mattress and roll someone out of bed." Housing officials who worked at the University before 1980 say they are nervous because the rash of fires so - -- closedly resembles a series of arsons in East Quad that year which eventually led to a major fire during exams. The 1980 fire, which consumed a whole hall of East Quad, was also preceded by several trash can fires. One of the small fires got out of control, however, and destroyed the hall. No one was injuried. "The situation which allowed a trash can fire to get out of hand and burn a whole corridor in East Quad is so similar to our situation that it's scary," said Mary Antieau, South Quad's tbuilding director. Correction Friday's partial class boycott was organized by the Student Rights Coalition, an organization supported by a number of student groups on campus. The Daily incorrectly reported Satur- day that it was sponsored by No Code. 0 JOSTEN'S GOLD RING SALE F w 540 E. Liberty St. 761-4539 I SJie 3ibigan Bail Tuesday, April 10, 1984 Vol. XCIV-No. 152 (ISSN 0745-967X) The Michigan Daily is edited and managed by students at The University of Michigan. Published daily Tuesday through Sunday mornings during the University year at 420 Maynard Street, Ann Arbor, Michigan, 48109. Sub- scription rates: $15.50 September through April (2 semesters); $19.50 by mail outside Ann Arbor. Summer session published Tuesday through Satur- day mornings. Subscription rates: $8 in Ann Arbor; $10 by mail outside Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POSTMASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Arbor, MI 48109. The Michigan Daily is a member of the Associated Press and subscribes to United Press International, Pacific News Service, Los Angeles Times Syn- dicate and Field Enterprises Newspaper Syndicate. News room (313) 764-0552, 76-DAILY; Sports desk, 763-0376; Circulation, 764-0558; Classified Advertising, 764-0557; Display Advertising, 764-0554; Corner of Maynard & Liberty I 0 - U SPRING/SUMMER STUDENTS I 1 1 Stop by Ulrich's and see a Josten's representative on Monday, April 9 through Friday, April 13, 11:00 a.m. - 4:00 p.m. He will be glad to show you the entire line of rings from Josten's. During this week you can get $15 off 10K gold rings and $25 off all 14K gold rings. The White Lustrium ring is only $79.95 on these dates. 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