The Mob and Narcotics: A Troubled History

In this episode of Gangland Wire, Gary Jenkins sits down with retired FBI agent and organized crime historian Bill Ouseley for a deep dive into the Mob’s transition from bootlegging during Prohibition to dominating the narcotics trade. Ouseley, known for his books Open City and Mobsters in Our Midst, shares insights from his years investigating the Kansas City crime family and the Vegas skimming cases. The conversation traces how organized crime evolved after Prohibition, finding new profit in the rising black market for drugs. From the early days when narcotics were sold in pharmacies and corner stores to the complex, international networks run by the Mob, Ouseley explains how organized crime adapted and thrived. Jenkins and Ouseley discuss the rise of the Federal Bureau of Narcotics in 1930, the societal shift in attitudes toward drug use, and how policy changes created a perfect storm for the Mob to exploit. Ouseley highlights how figures like Harry Anslinger pushed for punitive drug laws that unintentionally fueled organized crime, and how the government’s focus on punishment over treatment helped entrench addiction and criminal networks. 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. 3:20 The Rise of Narcotics in the Mob 5:22 Early Drug Regulation and Public Response 8:23 The 1800s: Opium and Society 12:08 Government Approaches to Drug Issues 13:54 The Impact of Prohibition on Narcotics 17:42 Consolidation of Narcotics Operations 24:17 Anslinger and the Federal Response 36:26 Kansas City’s Narcotics History Ahead [0:00] Well, hey, all you wiretappers out there, it’s Gary Jenkins, [0:02] retired Kansas City Police Intelligence Unit detective and later sergeant. Welcome to Gangland Wire. I have a friend of mine that I’m interviewing today. You might notice there’s not going to be any video with a bunch of images in there. It’s FBI agent Bill Ouseley. Bill, he was the case agent for all the skimming from Las Vegas cases from the Kansas City end. We worked with him over the years hand in glove in the intelligence unit. And he’s a good guy. He still lives in Kansas City. He’s written a couple of books, by the way. He’s got Open City, which is the history of the Kansas City mob, starting back in the Black Hand days and going all the way up till about the time he came here in the early 60s. Then he wrote a second book, which is really about his career and all the different cases he worked with additional information about the local Savella family, which would have been the Savella family by the time he got here in the, I think, 1964, maybe. I graduated from high school in 63. [1:02] Today, we’re going to talk about the history of the mob and narcotics. You know, it’s all a much-discussed subject that whether they approve of them dealing in narcotics. You know, they do on the QT, they do in different ways. They invest money, maybe loan money and high rates of interest, if you will, to narcotics dealers or some of them, you know, deal directly. You know, the Bonanno family was famous for dealing directly with narcotics. Genovese went to jail for dealing in narcotics. So historically. [1:34] Kansas City, I don’t believe Nick Savella really, he did not approve of it. He didn’t allow his guys to do it directly. There were some people that were indirectly involved in narcotics. Now, whether they kicked money up or whether they were using their own money or somebody else’s money to invest in these narcotics operations, we never really found out. Those books are, I’ll have links to them down below in the show notes. So you might want to get those if you want to know a lot more about the Kansas City crime family and his work here. And by the way, so many of those cases in that book that the second book, Mopters in Our Midst, I think I forgot to say the name of that, Mopters in Our Midst. A lot of those cases I’m reading the book when I first got, it’s like, well, I was there. I did that. I, you know, I, I stirred up this little bit of information and, and which the Bureau then takes and runs with, which is what we do. You know, we, we like, maybe they’ll come to us and they’ll hear about something and we’ll go out and, and run surveillances and get license plate numbers and bring them back. And it’ll help them make, make sense of what’s going on, whatever the investigation ends up being. [2:44] Today, now listen up. We’re going to plumb the depth of Bill Ouseley’s knowledge about the earliest days of narcotics and ...