In 1940, the Luciano crime family—operated as a powerful, modernized criminal empire in New York under the day-to-day leadership of acting boss Frank Costello, while its founder, Charles "Lucky" Luciano, directed affairs from prison.
Leadership and Structure
Imprisoned Founder: Lucky Luciano was serving a 30-to-50-year prison sentence after his 1936 conviction for running a prostitution ring, yet he still maintained influence from behind bars. “While incarcerated, Luciano continued to direct his own group's operations from behind bars, while his deputy, Frank Costello, exercised daily control in New York.”
Acting Boss Frank Costello: Costello managed daily operations using a strategy of political bribery and cooperation rather than open confrontation. “Costello believed that bribery was better than confrontation as a strategy for advancing the interests of organized crime.”
The Commission: The national syndicate and governing body created by Luciano continued to regulate territory and minimize bloody gang warfare among the Five Families.
Operations in 1940
Thriving Enterprises: Organized crime functioned as a structured, expansive business enterprise across the United States.
Political and Labor Influence: The family systematically courted politicians and infiltrated unions and legitimate industries to protect and expand their illegal profits.