Eastern European Connections
Anthony Casso had a close alliance with Ukrainian mob boss Marat Balagula, who operated a multi-billion dollar gasoline bootlegging scam in Brighton Beach. Balagula, a Soviet Jewish refugee from Odessa, had arrived in the United States under the Jackson-Vanik Amendment. After Colombo captain Michael Franzese began shaking down his crew, Balagula approached Lucchese consiglieri Christopher Furnari and asked for a sit-down at Brooklyn's 19th Hole social club. According to Casso, Furnari declared,
"Here there's enough for everybody to be happy... to leave the table satisfied. What we must avoid is trouble between us and the other families. I propose to make a deal with the others so there's no bad blood.... Meanwhile, we will send word out that from now on you and your people are with the Lucchese family. No one will bother you. If anyone does bother you, come to us and Anthony will take care of it."
Street tax from Balagula's organization was not only strategically shared, but also became the Five Families' biggest moneymaker after narcotics trafficking.
According to Philip Carlo,
"It didn't take long for word on the street to reach the Russian underworld: Marat Balagula was paying off the Italians; Balagula was a punk; Balagula had no balls. Balagula's days were numbered. This, of course, was the beginning of serious trouble. Balagula did in fact have balls – he was a ruthless killer when necessary – but he also was a smart diplomatic administrator and he knew that the combined, concerted force of the Italian crime families would quickly wipe the newly arrived Russian competition off the proverbial map."
Shortly afterward, Balagula's rival, a fellow Russian immigrant named Vladimir Reznikov, drove up to Balagula's offices in the Midwood section of Brooklyn. Sitting in his car, Reznikov opened fire on the office building with an AK-47. One of Balagula's close associates was killed and several secretaries were wounded.
Then, on June 12, 1986, Reznikov entered the Rasputin nightclub in Brighton Beach. Reznikov placed a 9mm Beretta against Balagula's head and demanded $600,000 as the price of not pulling the trigger. He also demanded a percentage of everything Balagula was involved in. After Balagula promised to get the money, Reznikov snarled, "Fuck with me and you're dead – you and your whole fucking family; I swear I'll fuck and kill your wife as you watch – you understand?"
Shortly after Reznikov left, Balagula suffered a massive heart attack. He insisted, however on being treated at his home in Brighton Beach, where he felt it would be harder for Reznikov to kill him. When Anthony Casso arrived, he listened to Balagula's story and seethed with fury. Casso later told his biographer Philip Carlo that, to his mind, Reznikov had just spat in the face of the entire Cosa Nostra. Casso responded, "Send word to Vladimir that you have his money, that he should come to the club tomorrow. We'll take care of the rest." Balagula responded, "You're sure? This is an animal. It was him that used a machine gun in the office." Casso responded, "Don't concern yourself. I promise we'll take care of him... Okay?" Casso then requested a photograph of Reznikov and a description of his car.
The following day, Reznikov returned to the Rasputin nightclub to pick up his money. Upon realizing that Balagula wasn't there, Reznikov launched into a barrage of profanity and stormed back to the parking lot. There, Reznikov was shot dead by DeMeo crew veteran Joseph Testa. Testa then jumped into a car driven by Anthony Senter and left Brighton Beach. According to Casso, "After that, Marat didn't have any problems with other Russians."
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