in
History
—
The Devil's Bargain: How the US Navy Partnered with the Mafia to Secure the Home Front in WWII
Fearing sabotage after a ship's mysterious capsizing, the US government secretly allied with imprisoned mob boss Lucky Luciano. This 'Operation Underworld' used the Mafia's control over the docks to protect New York's vital harbor, a pragmatic and controversial chapter of WWII history.
In the tense early days of World War II, the United States faced threats not just on distant battlefields, but right in its own backyard. The bustling Port of New York was the primary artery for shipping troops and supplies to Europe, making it a prime target for enemy sabotage. When a catastrophic event struck the harbor, the U.S. Navy turned to an unimaginably controversial partner for help: the organized crime syndicate known as the Mafia.
A Disaster on the Hudson
On February 9, 1942, the massive luxury liner SS Normandie, which was being converted into a troopship renamed the USS Lafayette, mysteriously caught fire and capsized at its pier in Manhattan. While the official investigation concluded it was an accident caused by a welder's spark igniting a pile of flammable life vests, the Office of Naval Intelligence (ONI) wasn't convinced. The fear of Axis spies and saboteurs lurking among the dockworkers was palpable. The Navy knew it had a massive intelligence blind spot; the waterfront was a closed community, deeply suspicious of outsiders and government agents. They needed eyes and ears on the docks, and they needed them immediately.
An Unholy Alliance is Forged
Commander Charles R. Haffenden of the ONI was tasked with securing the port. He quickly realized his agents couldn't penetrate the tight-knit world of longshoremen. There was, however, one organization that had absolute control over the unions and workers: the Italian-American Mafia. The ONI made a pragmatic, if morally ambiguous, decision. To control the docks, they needed to work with the criminals who already ran them.
The Navy's primary contact was Joseph "Socks" Lanza, who controlled the Fulton Fish Market, but the real power lay with one man: Charles "Lucky" Luciano. The problem? Luciano, the head of the powerful Genovese crime family, was serving a 30-to-50-year sentence in a maximum-security prison. Through Luciano's associate, Meyer Lansky, the Navy struck a deal. According to a 1954 report by New York's Commissioner of Investigation, William B. Herlands, the arrangement was clear:
Luciano's aid was sought... in connection with the Navy's wartime security program for the Port of New York... In return for his cooperation, Luciano was to receive consideration for parole. It was a quid pro quo.
Luciano was moved to a more comfortable, minimum-security prison where he could easily meet with his subordinates. With his blessing, the mob became the unofficial guardians of the New York harbor.
Operation Underworld in Action
The cooperation was remarkably effective. Under Luciano's direction, the Mafia's influence ensured that no labor strikes would disrupt the flow of war materials. Dockworkers, loyal to the mob bosses, became a network of informants, reporting any suspicious activity or unfamiliar faces to Naval Intelligence. The threat of sabotage that had so terrified the Navy evaporated. The docks were secure.
The partnership extended beyond the waterfront. As the Allies planned the 1943 invasion of Sicily, codenamed Operation Husky, the Navy once again turned to Luciano. He provided crucial intelligence about the Sicilian coastline, harbor depths, and, most importantly, contact information for influential Sicilian Mafia figures who would assist the invading American forces. This intelligence helped smooth the path for the Allied landing and subsequent campaign.
A Controversial Aftermath
After the war, the government made good on its promise. Despite public outcry, Governor Thomas E. Dewey, the same prosecutor who had sent Luciano to prison years earlier, commuted his sentence in 1946. The official reason cited was Luciano's wartime service. He was immediately deported to Italy, never to legally return to the United States. For the government, it was a necessary evil—a deal with the devil that helped secure victory. For the Mafia, it was a demonstration of their power and influence, reaching from the underworld to the highest levels of the nation's war effort. Operation Underworld remains one of the most bizarre and pragmatic collaborations in American history, a stark reminder that in times of total war, alliances can be forged in the most unexpected of places.