Mr. Schiff: Organized crime activity has been around a long time...

Mr. Rice: "During the late 1970's, the Chicago FBI began to seriously target organized crime's control in the city of Chicago and the surrounding metropolitan area."

Mr. Schiff: That's FBI Special Agent Ross Rice in the Chicago office...

Mr. Rice: "One of the things we looked at was the use of pension funds from a labor union that were, in effect, a private bank for organized crime to finance legitimate purchases."

Mr. Schiff: Rice says loans were given to fictitious individuals using phony names...

Mr. Rice: "The loans were never repaid. Eventually the members of the union and the pension fund would have been grossly underfunded."

Mr. Schiff: Rice says a microscopic look at the pension fund and organized crime was called Operation Pendorf...

Mr. Rice: "We were able to amount, at the time, what was the largest electronic surveillance investigation in the history of the FBI."

Mr. Schiff: Agents discovered violence and even the bribing of a U.S. Senator. All who went to trial were convicted and sentenced to lengthy prison terms. I'm Neal Schiff and that's the FBI's Closed Case of the Week."

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