One hidden microphone in the Villa Capri restaurant in Kansas City led to wiretaps and hidden microphones in Milwaukee, Las Vegas, Chicago and 19 separate wires in Kansas City. In Chicago, agents developed probable cause to place a tap on a telephone in the office of Allen Dorfman. They soon learned that Chicago Mob Caporegime Joseph “Joey the Clown” Lombardo frequented this office. Chicago Agents code named this Operation Pendorf or penetrate Dorfman.
Allen Dorfman was the step-son of a Chicago gangster named Red Dorfman. After WW II, he became friends with Teamsters president Jimmy Hoffa and rose in the ranks of both the Teamster’s Union and the Chicago Organized Crime family. Dorfman formed the Union Insurance Agency and soon had an exclusive contract to sell insurance to the Teamsters.
Dorfman became influential in the Teamster’s Central States Pension Fund. He was part of a cabal of Mob bosses from Cleveland, Milwaukee and Kansas City who determined who got pension funds loans. For this, he and his Chicago mob bosses demanded kickbacks. In this video clip, you will hear Lombardo on the phone in Dorfman’s office. He is threatening St. Louis lawyer and Dunes Casino owner Morris Shenker that he will not reach his 73rd birthday if he does not pay a kickback on a pension fund loan.