Playboy Enterprises and the Chicago Outfit 1960's

[Villain]

During the early 1960's, many Chicago Outfit top members began investing large portions of their illegal income into legitimate enterprises since they were forced by more then few events that disturbed the core of the U.S. Mob at the time, such as the Apalachin disaster and the McClellan hearings, followed by the so-called Valachi hearings. By now the Mob made so much money that their wealth was much higher then the wealth of some of the most prominent legitimate businessmen in the country at the time. For example, Outfit big shot Ross Prio invested in all kinds of legitimate businesses but one of his most prominent investments was in the Playboy enterprises.

Their "invitation card" was one of Ross Prio's long time associates and close friend Arnold Morton, who in turn was the manager of The Playboy Club at 182 East Walton Street in Chicago, and acted as front man for the Outfit. According to the FBI, Morton introduced Prio to Hugh Hefner, the owner of the world famous Playboy magazine, and from that point on Prio owned one-fourth of the shares in the club, while 80% of the stock was owned by Hefner and his corporation. Again according to the feds, Prio was a constant guest at the joint both for pleasure and business, since he allegedly handled big prostitution ring for the Outfit. The place had special Playboy marked cars, Playboy coats and also Playboy towels which were handed out in the restrooms, and the prime guests were high profile crime figures such as Gus Alex, Eddie Vogel and Sam Giancana.

During one of their visits of the Playboy Club, both Alex and Vogel allegedly met their new girlfriends with the help of Morton, who was also very close friend of Alex and so he always provided the gangsters with his best “products.” Alex’s new girlfriend was a hot blond German known as Suzanne Fueger, who was one of Playboy’s bunnies, while Vogel's girlfriend was known as Peggy Strak. The investigation shows that Vogel often gave Peggy to Alex for his own entertainment or vice versa. According to one informant, Alex once told him that the girls at the club were forced into prostitution by the owner himself, meaning Hefner.

In 1963 Outfit member Augie Circella, owner of the Follies Burlesque Theater, wanted to join the Playboy association and to invest in a new club on Chicago’s North Side that going to be called the Playgirl Club, but Circella needed permission from the boss of that area which was Prio. So Circella contacted his boss Gus Alex, who contacted Pat Marcy, the Outfit’s force in the First Ward, who in turn contacted Prio and asked him to do Circella a favor. So Circella won the approval of Prio but the deal was to take Prio as one of his partners in the club, and so Circella happily invested $40,000 in the joint and placed a former policeman who acted as front in the operation.

The club became suspicious in the eyes of the law when the club’s administration discounted the services of the Star Disposal Service, a legitimate company, and took the services of the West Town Suburban Scavenger Service, which was an Outfit controlled company under the auspices of William Daddono. But the problem was that the government wasn’t able to obtain sufficient evidences of Prio’s involvement in the club at the time, mainly because he always used many legitimate people as his fronts.

Prio also managed to purchase the franchise for the Playboy Club located in Miami, but later the franchise was purchased back by Hefner because of a racial incident that occurred in the club. Prio and the Outfit wanted the club to operate as a segregated joint but Hefner opposed any segregation and that’s why he purchased it back from Prio for $697,000 which was much higher price than the previous one. But no matter how much Hefner tried to distinguish himself from the Mob, still right after that Prio also considerably invested in another multi-million dollar Playboy Club which was located at Lake Geneva in Wisconsin.

In 1972, Prio died of natural causes as a free and also as one quite wealthy man. The newspapers around the country at the time read “Real life “Godfather” Prio dies", since the famous mafia movie was released 9 months before Prio’s death.

[Grouchy Sinatra]

Hugh Hefner had class and took a stand on race issues. I believe he was linked to Sidney Korshak. Definitely took mob money but at least drew a line some places.

[Pogo The Clown]

Too bad Hugh didn't get the Larry Flynt treatment.


Pogo

[Villain]

Too bad Hugh didn't get the Larry Flynt treatment.


Pogo

To tell you the truth, ive seen many reports in which some prominent murderous mobsters were completely disgusted from "respectable" businessmen such as Hefner...i wonder if theres a special place reserved for their souls that provides endless pain?!

[Villain]

Hugh Hefner had class and took a stand on race issues. I believe he was linked to Sidney Korshak. Definitely took mob money but at least drew a line some places.

Thats right, he was also pals with the Korshak bros but i dont think that Hefner cared much about racial stuff but instead he cared about money and lots of black gangsters were coming up in those days, i mean during the early 60s they had a black alderman financing narcotics...im surprised by Prios alleged segregation since he was known for cooperating with both Black and Asian criminals...in fact he had Ken Eto in his own ranks... maybe it wasnt his decision, maybe someone else above him gave the order...