Who Was Frank Costello
Frank Costello was an Italian-American mobster who became one of the most powerful crime bosses in New York during the mid-20th century. He was known for his political connections and his ability to influence business and labor unions. Costello led the Luciano crime family and was a central figure in the National Crime Syndicate. His nickname was "The Prime Minister of the Underworld." He focused on gambling, narcotics, and corruption of public officials.
Costello was born Francesco Castiglia on January 26, 1891, in Lauropoli, Calabria, Italy, and he later settled in New York City. He worked closely with Charles "Lucky" Luciano and Meyer Lansky to build a national organized crime network. His operations included control of the numbers racket, bookmaking, and infiltration of legitimate industries. He was convicted of tax evasion in 1936 and again in 1946, but he continued to exert influence from prison and after his release. He died on February 18, 1973, in New York City.
Frank Costello Quotes on Power and Business
Frank Costello is often quoted for his blunt views on power, money, and influence. One of his most famous statements is, "The best business is politics," which reflects his strategy of blending organized crime with political and financial systems. He emphasized that control of money flows, not just violence, was the key to long-term power. His approach focused on corruption, lobbying, and strategic alliances rather than public confrontations.
Another well-known Frank Costello quote is, "I don't like to shoot. I like to watch," which illustrates his preference for manipulation and behind-the-scenes control over direct violence. He built a reputation as a calm, calculating operator who avoided unnecessary attention. His style influenced how later criminal organizations structured their leadership and financial operations. His emphasis on political connections and legal corruption remains a case study in financial crime.
Costello's Influence on Wall Street and Finance
Costello's network reached into Wall Street through figures involved in stock manipulation, loan sharking, and insider trading. He used his political ties to shape financial regulations and enforcement priorities. His methods showed how organized crime could penetrate capital markets and corporate governance without direct ownership of public companies.
Key Financial Tactics
His operations included using shell companies, laundering money through legitimate businesses, and pressuring unions to control pension fund investments. These tactics are often cited in modern discussions about financial crime and regulatory gaps.
Frank Costello's Legacy and Modern Relevance
Frank Costello's legacy is studied by law enforcement, historians, and financial crime experts. His career illustrates how organized crime figures can exploit legal and financial systems for profit and influence. The U.S. Department of Justice and the Federal Bureau of Investigation continue to reference his methods in discussions about racketeering and corruption.
His life and quotes are frequently referenced in books, documentaries, and articles about the history of American organized crime. The FBI's public records and case studies on mid-century crime syndicates often mention his role. His influence is also discussed in analyses of political corruption and the intersection of crime and finance.
For more details on Costello's life and methods, see the Forbes overview of organized crime and finance. The SEC's spotlight on financial crime also provides context on the regulatory environment he exploited.