Sharing of Blitzstein money described

A key government informant in the trial of two men charged in connection with the murder of Herbert "Fat Herbie" Blitzstein testified that the defendants split up money that the Las Vegas mobster had out in loans.

Veteran mob associate John Branco, in his fourth day on the witness stand in federal court in Las Vegas, testified Thursday that he met with defendant Stephen Cino on Jan. 30, 1997, 24 days after Blitzstein was killed in his home.

Branco testified that at that time, Cino, 60, co-defendant Robert Panaro, 57, and the late Peter Caruso each got $130 from a single $400 collection of money owed Blitzstein. Blitzstein purportedly had about $200,000 in loans out at the time of his death.

The U.S. attorney's office is attempting to prove that Cino and Panaro, who are purported to be members of the Buffalo, N.Y., mob, were involved in the plot to kill Blitzstein and muscle in on his local loan shark operation and other street rackets.

Assistant U.S. Attorney Eric Johnson said he plans to wrap up his examination of Branco on Monday, giving defense attorneys a chance to shake his testimony under cross-examination later in the day.

The trial resumes 8 a.m. Monday in the court of U.S. District Judge Philip Pro.

Branco also testified Thursday that Caruso, who died in jail in January while awaiting trial, told him at a meeting that 72-year-old Alfred Mauriello was hired to kill Blitzstein, who was the right-hand man of the late Anthony Spilotro, the Chicago mob's one-time Las Vegas crime chief.

Branco further testified that at the Jan. 30 meeting he told Cino that Mauriello was the man who had been hired to kill Blitzstein. What the jury has yet to be told is the government's allegation that Mauriello in turn had hired Antone Davi and Richard Friedman to do the killing.

Davi has pleaded guilty to being one of two participants in Blitzstein's death. He faces a prison term of not less than 20 years -- he could have gotten life -- in exchange for his testimony against Friedman, who prosecutors say shot Blitzstein with the gun Davi provided. Friedman is scheduled to go on trial in late May.

Also in the weeks before the trial began, Mauriello pleaded guilty to one count of murder in aid of racketeering and will testify for the prosecution. Mauriello admitted he was paid $10,000 to arrange Blitzstein's murder and hired Davi and Friedman to carry it out.

On Thursday, jurors wore headphones to listen to static-filled surreptitious tape recordings involving Branco and alleged mob figures. Jurors followed the poor quality recordings by reading government transcripts of the tapes.

The prosecution plans to play at least three or four more tapes of conversations involving Branco and others related to the case on Monday.

Attorney Louis Palazzo, representing Cino, filed objections to the playing of the government tapes, which Pro overruled. Attorney John Fadgen is representing Panaro.

The case stems from a 50-count indictment in February 1998 that named 16 suspected associates of crime families from Los Angeles and Buffalo.

Several of them have entered into plea bargain agreements. Just before a jury was to be selected in the current case, two defendants, Louis Caruso and Anthony DeLulio, made plea deals.

They pleaded guilty to conspiracy to participate in racketeering, mail fraud and selling and receiving stolen property. Court documents show the men pleaded guilty to breaking into Blitzstein's home shortly after his death and stealing items including jewelry valued at more than $5,000.

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