The Mob and the Savings & Loan Scandal

In this eye-opening episode of Gangland Wire, retired Kansas City Police Intelligence Unit detective Gary Jenkins pulls back the curtain on a lesser-known chapter of American crime history — how the Kansas City mob capitalized on the savings and loan crisis of the 1980s to fuel its criminal empire. Gary takes listeners deep into the shadowy world of Nick Civella, the shrewd Kansas City mob boss whose knack for high-stakes financial deals made him a pivotal figure long after his rise to power in 1957. Discover how Civella leveraged massive loans — including the notorious $62 million from the Teamsters Pension Fund — to help finance Las Vegas casinos like the Stardust, creating opportunities for mobsters like Lefty Rosenthal to skim untold millions from the gaming floors. The episode traces how shifting interest rates and lax lending regulations cracked open the door for organized crime to exploit savings and loan institutions. Gary details how local mobsters compromised bank employees, funneled unsecured loans, and left behind a trail of financial ruin that reverberated far beyond Kansas City. You’ll hear gripping accounts of banks like Shawnee State Bank and Indian Springs State Bank, where insiders turned a blind eye — or worse — to the mob’s schemes. Listeners also meet Anthony Russo, a criminal attorney with deep ties to mob-run banking ventures, and Farhad Azima, a businessman whose name appears in allegations linking financial crime to covert government operations. These tangled connections paint a vivid picture of how the lines between legitimate business, organized crime, and shadowy politics can blur. Through vivid stories and insider knowledge, Gary breaks down how these Kansas City schemes mirrored the nationwide savings and loan crisis that ultimately cost taxpayers billions. From questionable loans backed by worthless assets to the fallout that reshaped the Teamsters Union and federal oversight, this episode reveals how deep the mob’s influence ran — and how fragile the American financial system can be when corruption goes unchecked. Tune in for a fascinating blend of true crime, history, and financial intrigue that exposes how power, money, and organized crime colluded behind the scenes to leave a lasting mark on American society. 🎧 Listen now on Apple Podcasts, Spotify, YouTube, or your favorite podcast app. 💬 Subscribe to Gangland Wire for more stories straight from the front lines of organized crime. Subscribe to get gangster stories weekly. Hit me up on Venmo for a cup of coffee or a shot and a beer @ganglandwire Click here to "buy me a cup of coffee" To go to the store or make a donation or rent Ballot Theft: Burglary, Murder, Coverup, click here To rent Brothers against Brothers, the documentary, click here. To rent Gangland Wire, the documentary, click here To buy my Kindle book, Leaving Vegas: The True Story of How FBI Wiretaps Ended Mob Domination of Las Vegas Casinos. Chapters 0:04 Introduction to Kansas City Mob 3:03 The Savings and Loan Scandal 5:45 The Shawnee State Bank Scheme 7:19 The Indian Spring State Bank 9:45 Anthony Russo: The Mob Lawyer 12:08 Russo's Legal Troubles 15:23 Global International Airways Connection 18:19 The Arms Smuggling Allegations 21:09 Azima and Russo's Partnership 25:10 Russo’s Goodwill Trip 26:44 The Rental Money Scheme 28:42 The Dunes Hotel Loan 32:16 The Savella Family Indictment 34:10 Conclusion: Mafia and Scandals 35:15 Final Thoughts and Recommendations Transcript Transcript [0:00] Well, hey, all you wiretappers, good to be back here in the studio of Gangland Wire. This is Gary Jenkins, retired Kansas City Police Intelligence Unit detective, with another story, and it's going to be about Kansas City, but it's going to be how Kansas City was really, part of the, remember the big savings and loan debacle back in the 80s? Anyhow, we had a piece of that action here in Kansas City.