Copyright 1988 Chicago Tribune Company  
Chicago Tribune
February 7, 1988 Sunday, FINAL EDITION
SECTION: CHICAGOLAND; Pg. 1; ZONE: C

LENGTH: 1315 words

HEADLINE: 2 CHICAGO FIRMS PROBED OVER HEALTH-CARE PLANS U.S. INVESTIGATING POSSIBLE BRIBES TO UNIONS, AGENCIES

BYLINE: By Maurice Possley and James Warren.

BODY:
The FBI and the U.S. Department of Labor have seized thousands of documents in a nationwide investigation of two Chicago companies to determine if they paid bribes to obtain contracts for health-benefit programs offered to government agencies, private employers and major labor unions.

Federal agents, armed with search warrants, collected the documents in Chicago, Baltimore, Honolulu and San Francisco in recent days as part of an investigation of Labor Health and Benefits Plan and Dental Health Care Alternatives, Chicago-based companies owned by Angelo T. Commito, who has been convicted on federal tax charges and linked to organized-crime figures.

The search in Chicago sought documents relating to contracts with and sales pitches to a number of public and private employers and unions, including the City of Chicago, Cook County, the Chicago Transit Authority, the Chicago Board of Education, the United Auto Workers, the International Brotherhood of Teamsters, the Service Employees International Union, Rockwell International and McDonnell Douglas Corp.

The search warrants sought information about possible payments or gifts to Raymond Majerus, the UAW's second-ranking officer until his recent death; Dino Pigoni, top official of Service Employees Local 1 in Chicago; and Walter Piotrowski, the recently retired leader of United Food & Commercial Workers Union Local 100.

Search warrants filed in Chicago indicate that the government believes that profits from the health programs may have reached organized-crime figures. Federal agents sought records that they believe would show contacts involving Commito's companies and organized-crime figures in New York and Chicago, including Vincent Solano, Alfred Pilotto and Anthony Zappi.

The companies of Commito, a Fairfax, Calif., resident who was convicted here in 1979 of failing to file federal income-tax returns, offer dental and vision plans to private businesses, union welfare funds and government agencies. Clients pay a set monthly fee of $5 to $15 per worker to Commito's companies, according to an individual familiar with the businesses.

In the case of dental work, the dentistry is performed by Care Dent Inc., of Wheeling, a group of dentists headed by Dr. Barry Kramer. R.P. Fox Associates of Oak Park processes the claims submitted by Care Dent.

A search warrant for the offices of Commito's companies, 730 N. Franklin St., sought myriad financial and corporate records for an investigation into suspected violations of federal mail fraud, racketeering and bribery laws, as well as violations of federal statutes prohibiting the offering or acceptance of bribes to influence operation of an employee-benefit plan.

A search was executed at the offices of R.P. Fox Associates, 1100 Pleasant Ave., Oak Park, where records were seized related to the processing of benefit claims for several unions, including Service Employees Locals 1 and 4, UFCW Local 100 and the Du Page County Cement Masons.

Investigators also searched the home of Thomas Matassa,
Matassa's attorney, Santo Volpe, declined to comment on the investigation. Former U.S. Atty. Dan Webb, a lawyer for Commito's companies, also declined to comment.

Also among documents sought in the searches were records relating to services provided for Commito's companies by Anthony Bertuca, an assistant corporation counsel for the City of Chicago, and attorney Frank Howard, a close associate of Ald. Joseph Kotlarz (35th).

Howard said his only contact with Matassa was representation of employees of a pornographic bookstore in Chicago owned by Matassa.
The government also searched the home of Robert Greenfield, 3801 N. Mission Hills Rd., Northbrook. Greenfield is a retired attorney and former associate of Allen Dorfman, the businessman who was gunned down in Lincolnwood in 1983 shortly after being convicted of conspiring to bribe a U.S. senator..

Search warrants indicate government interest in "correspondence, memoranda and written communications" between Greenfield and Majerus, the UAW secretary-treasurer who died Dec. 17 of heart failure at age 63.

They also indicate interest in "notes and memoranda of payments made to" Majerus and copies of UAW contracts with Rockwell International and McDonnell Douglas. As head of the union's aerospace division, Majerus oversaw its dealings with those firms.

Among items confiscated were documents relating to investments, including stock in a dental program, apparently made on behalf of Majerus, in which Greenfield acted as "nominee."

A UAW spokesman in Detroit indicated no knowledge of the investigation and said he could not comment. Bruce Lee, a top UAW official in California, home of the relevant Rockwell and McDonnell plants, said he did not believe any of the Chicago firms provided services to the union but recalled that one tried to sell itself to McDonnell Douglas and the union.

According to court records and government reports, Commito has been active in the health-care benefit business since 1972, when he set up Labor Health Plans Inc. Originally, Commito was Labor Health's secretary; a Wilmette plumbing contractor, Leonard Fishman, was the president.

Previously published reports indicate that in 1974, Greenfield helped Commito and Fishman set up a dental program run by Dr. Charles Mitchell, of Chicago.

Majerus once boasted of his introduction of dental-care plans for UAW members through Mitchell. Mitchell and another Chicagoan, Dr. Alan M. Stevens, at one time provided dental benefits to about 200 union and employer groups, including Dorfman's company, Amalgamated Insurance Services Agency.

The two doctors, according to a 1981 article in the Detroit News, paid finder's fees to Greenfield and handled the dental work for five Chicago union locals that had been solicited by Commito, a Detroit native.

Sources familiar with the investigation said the government also has subpoenaed records from Anchor Health Maintenance Organization that involve its business with Commito's Dental Health Care Alternatives.

Mark Crantz, vice president of marketing for Anchor, said Commito's plan is one of two dental plans offered through the HMO. He noted that in recent months Anchor and Commito had been negotiating with the CTA, the City of Chicago, the Chicago Board of Education and Cook County to offer Commito's plan but that no deals have been completed.

One search warrant shows that government investigators sought documents pertaining to gifts or other possible favors to Piotrowski, now retired as the longtime leader of UFCW Local 100, including "sending skis" to him, his "use of a condominium," his receipt of "sunglasses" and "a sweater," and Piotrowski's travel in 1986 and 1987, including trips to Palm Springs, Calif., as well as documents related to the union's eyeglass program.

Piotrowski; Robert Waters, his successor; and John Jans, who runs Local 100's health and welfare fund and is mentioned in the warrants, could not be reached for comment. An attorney for the fund said he was aware of the warrants and subpoenas but not of any improprieties.

The warrants also requested documents relating to several Service Employee locals, including Locals 1 and 4 in Chicago. Two officials, Dino Pigoni, leader of Local 1, and William Wire, head of Local 4's health and welfare fund, are mentioned..

In Pigoni's case, the government has sought documents related to "entertainment or gifts" to him.

Pigoni and Wire could not be reached for comment.

The attorney for Local 1 did not know of an investigation, while an attorney for Local 1's and Local 4's health and welfare funds was aware of the investigation but not of any improprieties.

GRAPHIC: PHOTO
PHOTO: Ray Majerus, who was second in command of the United Auto
Workers until his death.