A brutal mobster and ruthless racketeer, Arthur “Dutch Schultz” Flegenheimer was one of the most intimidating figures of the 1930s.

Far from the complex philanthropy of Bumpy Johnson and the staunch activism of Stephanie St. Clair, Dutch Schultz was a stone-cold villain of the 20th century.

Schultz was determined to run New York’s most profitable numbers racket and destroyed anyone and everyone who got in the way of his rise to the top.

Known to pull the trigger without a moment’s hesitation, he instigated gang warfare faster than you could roll a pair of dice.

So, how exactly did this second-generation German immigrant ascend from the Bronx slums to become one of New York’s most infamous mobsters? Read on to find out.

Criminal Beginnings

Like most mobsters in the 1900s, Schultz’s upbringing was far from glamorous.

Arthur Flegenheimer was born on August 6, 1902, the son of two German Jewish immigrants, and grew up in poverty in the Bronx.

His father, a saloon keeper, abandoned the family when Arthur was 14 years old. Forced to assume the role of the breadwinner, Arthur dropped out of school and picked up a few odd – but legal – jobs around the Bronx.

His income wasn’t enough to provide for both him and his mother, so he had to start getting creative. He joined a local gang and began to rob craps games and burgle houses to earn a living.

At age 17, Arthur was caught red-handed. He was sentenced to 17 months in prison, his first – and only – time behind bars.

He was released from prison in December 1920, and it was around then that he started going by the name “Dutch Schultz.”

Some say he was given the name after another local (and equally violent) thug of the same name.

Others claim Arthur himself instigated this rebranding after the name of the company he was working for – Schultz Trucking.

Either way, one thing was clear: Arthur Flegenheimer was out, and Dutch Schultz was in.

Profiting From Prohibition

Prohibition (otherwise known as the Volstead Act) was enacted in 1919 to reduce the crime rate in America. In reality, it was the catalyst for a massive wave of organized crime.

Not one to miss out on a money-making opportunity, Schultz decided to cash in on Prohibition.

While still working at Schultz Trucking, he began “bootlegging” – transporting liquor and beer across the border from Canada.

Schultz spent years working as a bootlegger, not just transporting but making his own beer.

He also picked up work in underground speakeasies, where he lived up to his namesake’s reputation for violence and brutality.

It was this violent streak that caught the attention of Joey Noe, owner of a Bronx speakeasy called the Hub Social Club.

Noe initially hired Schultz as security but ended up making him a partner of the club.

Together, the duo opened dozens of illegal speakeasies and breweries all across Manhattan, including in Yorkville, Washington Heights, and Harlem.

Their bootlegging business was thriving, especially after the pair began using intimidation as a sales tactic and forcing rival club owners to buy their beer.

While this massively increased both Noe’s and Schultz’s bankrolls, it also attracted the unwanted attention of other prominent mobsters.

Jack “Legs” Diamond was one such mobster. By moving their headquarters from the Bronx to Manhattan, Legs believed the pair were encroaching on his turf.

Diamond began hijacking Schultz’s liquor shipments, and soon an all-out war between Schultz and the Irish mobster began.

In 1928, an unknown gunman shot Noe in the street. Though he survived the attack, Noe died from his wounds a month later.

Schultz was devastated by the death of his partner in crime and vowed to take revenge.

Confident that Legs was responsible, Schultz ordered his assassination. In October 1929, Legs and his mistress were gunned down at the Hotel Monticello.

Despite sustaining five gunshot wounds, Legs lived to tell the tale. In fact, this was only one of several assassination attempts he would survive during his lifetime.

Certifiably spooked, Legs fled to Albany, where he would migrate most of his operations. Someone eventually found Legs’s Achilles heel, and he was murdered in December 1931.

Though nobody came forward to claim the murder, Schultz reportedly commented that Legs was “just another punk caught with his hands in my pockets.”

Life As A Racketeer

Legs’s departure gave Schultz almost complete domination of the New York speakeasy scene. By this point, the “Beer Baron of the Bronx” had become one of the biggest gangsters in the state.

However, the end of Prohibition meant Schultz had to find new ways to supplement his income.

His solution? The Harlem numbers racket.

Otherwise known as the “numbers game,” “policy game,” or “Italian lottery,” the numbers racket was an illegal lottery played in working-class African American neighborhoods.

Gambling was a lucrative business, particularly in Harlem. Gangsters like Stephanie St. Clair (known affectionately as the “Numbers Queen”) already had a stronghold over Harlem’s underground gambling scene.

Schultz had already proved he was not afraid of stepping on other mobsters’ toes and started using brute force to overthrow Harlem’s pre-existing rackets.

Illegal bookmakers were known as ‘policy bankers,’ and Schultz gradually became one of the most formidable policy bankers in Harlem.

Since it was played in African-American neighborhoods, New York’s rackets were predominantly Black-owned. So when Schultz started his violent tirade, policy bankers like Stephanie St. Clair saw it as a racially-motivated attack.

He gave his competitors three grim choices: Relinquish their business to him, continue to run it and hand over a share of the profits, or face the brutal consequences of choosing neither option.

When Schultz had used violence to force rival club owners into buying his beer, he had been met with little resistance. However, Stephanie St. Clair was unlike any gangster he had faced.

Instead of backing down, St. Clair fought fire with fire and launched counterattacks against Schultz’s own rackets and storefronts.

Tousling With The Taxman

During this time, Schultz was also dealing with opposition from the law. He was charged with tax evasion in 1933, and when the trial moved to a small town upstate, Schultz moved with it.

He hired a public relations team to smooth over his gangster image and donated hundreds of thousands of dollars to charity in an attempt to win over the public.

Though his scheme worked, it left a considerable dent in his bankroll.

By the time he returned to Harlem, he was in a desperate plight to gain total control of the gambling scene.

But there were two significant obstacles in his way: Stephanie St. Clair and special prosecutor Thomas Dewey (below).

Dewey had been hired by the mayor of New York, Fiorello La Guardia, to investigate Schultz and bring him down for good.

Meanwhile, the Numbers Queen was still refusing to back down from Schultz’s threats.

Taking Drastic Measures

Nothing could make St. Clair hand over her numbers empire, so Schultz eventually ordered a hit on her life and forced her into hiding.

Wanting to do the same to Dewey, Schultz scheduled a meeting with the head of the mafia’s Five Families, Charles “Lucky” Luciano (below).

Schultz sought permission to assassinate Dewey. Fearing the attention that such a public act of aggression would bring to the underground gambling scene, Lucky prohibited it.

But Schultz – desperate and paranoid – decided to go ahead with his plans anyway.

Dutch Schultz was a powerful man, but if there’s one thing The Godfather has taught us, it’s that you don’t get on the wrong side of the mafia.

Assassination

While Schultz continued with his scheme to assassinate Dewey, Lucky had come up with his own plan.

On October 23, 1935, Dutch Schultz, his accountant, and two of his bodyguards were dining at the Palace Chophouse in Newark. While Schultz was in the bathroom, two gunmen from the infamous hit squad “Murder, Inc.” slipped past security.

The men opened fire on Schultz and his posse and managed to hit them all.

However, Schultz was far from dead and lived almost 30 hours after being shot. He eventually succumbed to his wounds and died in his hospital bed.

What’s The Deal With Schultz’s Treasure?

Before he died, Schultz made several references to a secret stash of treasure.

Rather than naming his killer, he rambled on to the police about his fortune, alluding to stacks of hidden cash that were buried in the woods.

Delirious from his injuries, his messages were random and cryptic.

However, rumors about the existence and whereabouts of this so-called treasure are still rife today, with dozens of optimistic conspiracists journeying to the Catskills to uncover it.

Though there has been no actual evidence to support the theory, the Times Union released an article that claimed its value – if it actually exists – could be close to $100 million.

Summary

Regardless of his abhorrent behavior, Dutch Schultz’s journey from the Bronx slums to infamous multi-millionaire is nothing short of impressive.

Even from his early days as a Prohibition bootlegger, Schultz’s severe and unsentimental approach to his work allowed him to climb the lawless ladder.

It was this behavior that earned him the admiration of his partner-in-crime, Joey Noe, a collaboration that led to him becoming one of the most influential figures in the Bronx.

It wasn’t long before the “Beer Baron of the Bronx” branched out into the gambling business. In a merciless climb to the top, Schultz eliminated his enemies one by one, either through forced compliance or brutal (and often fatal) beatings.

His legacy as one of New York’s most infamous mobsters was solidified by the way he ran his numbers racket. With hundreds of gunmen at his beck and call, Schultz wasn’t afraid to engage in gang warfare to protect his portfolio of gambling businesses.

However, it was his desperation to become the lynchpin of Harlem’s numbers rackets that ultimately led to his demise.

His attempts to take down his most high-profile enemies – ordering a hit on Stephanie St. Clair and admitting plans to assassinate Thomas Dewey – ultimately caused his own murder.

By the year of his death, he had been named by the director of the FBI as “Public Enemy Number One.”

Despite an account-draining attempt to reconcile his public image, Schultz will forever be remembered as one of the most dangerous and violent gangsters of the era.

Lead image: Twitter/littlesteven_ug

Still not allowed on casino floor

MGM Grand Detroit has lifted its ban on indoor smoking, permitting patrons to light up in designated areas of the property. The casino announced the new policy on Wednesday, effective immediately.

Visitors are still not allowed to spark up a lung dart on the casino floor. The only two indoor areas in which smoking is permitted are labeled “Smoking Slots East and Smoking Slots West.” The casino has installed doors on the two sections of the property to try to minimize smoke drift to adjacent areas. An outdoor smoking patio remains.

originally banned smoking on casino floors in 2020

The Michigan Gaming Control Board originally banned smoking on casino floors in 2020 because of the COVID-19 pandemic, as smokers would have to remove their masks to smoke.

Hollywood Casino at Greektown has also reinstated smoking, but is restricting it to the second floor. MotorCity Casino, Detroit’s other gambling venue, still bans the activity.

Anti-smoking group hates it

Cynthia Hallett, president and CEO of Americans for Nonsmokers’ Rights, is not happy about the policy change, as one might expect. In a statement, she said that it was the “equivalent of coal in their stockings this week” for employees at the casinos.

“After more than two years of a safe workplace, these workers will now have to choose between their health and a paycheck,” Hallett continued. “This is unacceptable. Efforts to try to separate smoking and non-smoking sections, such as adding doors, have repeatedly proven ineffective at protecting employees and guests from dangerous secondhand smoke.”

Though gambling and smoking have historically been closely associated with one another, according to a June 2022 report by C3 Gaming, non-smoking casinos now tend to outperform those that permit smoking.

“Even though only 12% of people in the United States smoke, some casinos continue to prioritize perceived profits from this dwindling group over the health of their workers,” Hallett added.

Pandemic brought attention to smoking in casinos

The subject of smoking in casinos has garnered more attention during the pandemic. When state governments and regulators put bans in place as casinos began to reopen around the country in 2020, many casinos found that they could get by just fine not allowing smoking.

if they want to work, they have to spend hours unable to avoid second-hand smoke

Twenty states already ban smoking in casinos, while in those that don’t, many major casino operators have kept smoking bans in place. The epicenter of the smoking debate is New Jersey, where legislation has been introduced in the past year to prohibit the practice in gambling venues. Atlantic City casino workers have staged protests, urging casinos and lawmakers to protect their health, particularly because if they want to work, they have to spend hours unable to avoid second-hand smoke.

Casino workers in Rhode Island have also called upon lawmakers to ban smoking in casinos. Members of the Pennsylvania legislature have proposed changes to the state’s Clean Indoor Air Act that would remove exemptions for casinos that currently allow them to skirt restrictions on smoking in public areas.

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The Wei Wei Markham Mansion and Casino

On July 23, the York Regional Police, with tactical officers from the Ontario Police and Durham Police, descended on the 20,000 square foot $9 million mansion property in Markham, located on Decourcy Court near Warden Avenue and Major Mackenzie Drive East. The secret mansion casino was busted and restrained by the authorities as they found tons of evidence of illegal criminal activities.

But before we continue with what exactly happened on July 23 and why, we’re going to tell you more about the Wei Wei Markham casino, the million-dollar mansion’s history, and its owners. Stay with us to find what we discovered throughout our extensive research on the Wei Wei Markham casino case.

Inside the Wei Wei Markham Mansion and Casino

From the outside, one would never suggest that the opulent Wei Wei Markham home at 5 Decourcy Court could be more than that. Except maybe for the number of cars parked outside, nothing else revealed that it’s actually a fully operational underground casino. Not only that, but the lavish Wei Wei Markjam casino property housed its own restaurant & bar and even a spa facility.

The police reported that the Wei Wei Markham casino in Ontario has been in operation for more than a year as an invite-only high-end underground casino. The basement offered slot machines as well as baccarat and mahjong tables. The well-stocked cash bar had thousands of bottles of premium alcohol and a fine wine selection estimated to be worth over $1.5 million.

The restaurant was on the upper floor, where rooms were also available for the guests. The mansion’s upper floors provided additional VIP tables, spa facilities with employees, as well as a huge chef’s kitchen. Stay tuned to find out what else the police found in their Wei Wei Markham Casino Ontario investigation.

The Wei Wei Markham Mansion History & Owners

The mansion was bought in 2015 by Wei Wei, 52, and his wife – Xing Yue Chen, 32, for $4.7 million. The police claim that the brains behind the whole operation was Wei Wei, who started renovations for the casino about two years after purchasing the property. His objective was to fill in the void caused by the COVID-19 casino and gaming property closings as measures to stop the outbreak of the virus.

Moreover, the authorities report a significant rise in illegal activities of that sort throughout the entire region ever since the Covid-19 shutdown. Online casinos back then were not an option, considering that online gambling was illegal in the country. Of course, now Canada has many high-quality Canadian online casinos, but this wasn’t the case in 2020.
For the curious readers, here is a short statistic on how Canadians coped with the Covid-19 situation and what they did during the epidemic.

Back to the topic, not that the organised crime groups weren’t engaging in such illegal affairs before, but these practices have definitely become more common considering the current conditions. In fact, the Wei Wei Markham casino is far from being the first or the last illegal underground casino seized by the police. During Project Endgame, the authorities descended on a series of illegal gambling venues across the region. However, the Wei Wei Markham casino certainly is their biggest hit.

Project Endgame – the Wei Wei Markham Casino Shut Down

In this paragraph, we’ll give you all the details on what the Police found on July 23, 2020, when they broke into the illegal underground casino inside the Wei Wei Markham mansion, so get prepared.

When nearly 100 officers entered the property that night, they could not believe the shocking mix of the opulence and all the crime they encountered at the Wei Wei Markham casino in Ontario. On July 23, 2020, when the Police busted the Wei Wei Markham casino, they seized the following:

The authorities seized $1 million in cash, $1.5 million worth of alcohol, many gaming machines and tables, two large gun safes in the hallway and lots of guns freely accessible at the property, including a 50-calibre Desert Eagle.

Authorities suspect that human sex trafficking could have also been taking place at the Wei Wei Markham casino, as women might have been exploited as part of the accommodation and spa services that were offered.

As a result, Wei Wei, and Wei Dong, were charged with a number of offences, including keeping a common gaming house and multiple firearms offences. Their daughter, Chen Wei, 25, and Xing Yue Chen, 48, are charged with keeping a common gaming house, possession of proceeds of crime and selling liquor without a license. 15 people were charged with ‘keeping a common gaming or betting house,’ and 9 were charged with being found in an illegal gaming or betting house.

The Resolution – Investigation Delays and Dropped Charges

Now, if you’re wondering how the whole Wei Wei Markham scandal ended, this paragraph is going to answer all your questions on the matter. Months after the Wei Wei Markham massive bust, the charges against Wei Wei – the main figure in the case were dropped. The man and his lawyer have filed a complaint, asking that the Office of the Independent Police Review Director investigate further the Project Endgame practices and intentions.

Wei Wei claims that the police planted evidence and stole expensive watches worth hundreds of thousands of dollars. The authorities report finding a gun holster in the family’s bedroom during the second search on July 24. However, the suspects say the weapon’s been planted so that later on, Wei can be connected to other guns found on the property.

According to the complaint letter, when the Police initially took photos of the main bedroom where Wei Wei was staying, there were two watches that appeared – a Patek Phillippe worth about $300,000 and a Jaeger-LeCoultre, worth around $150,000. But later on, in the exit photos made on the same day, the watches are nowhere to be seen.

The concerns were brought to the Newmarket Crown Attorney’s office, and the case was forwarded to York Regional Police Chief Jim MacSween. The reason behind it was that the Crown office simply wasn’t convinced of the York Regional Police’s objectivity in their investigation, especially in such cases where inappropriate conduct might be involved.

Moreover, the Crown has withdrawn all charges against Wei Wei, who has agreed to a common law peace bond for a period of two years. Under the conditions of the peace bond, Wei has to be of good behaviour; he is not allowed to visit any “common gaming house” or go to any premises in Ontario with present gaming equipment. Additionally, he has agreed to forfeit his interest in the Wei Wei Markham mansion and the $960,000 cash and gaming equipment that were seized.

Ultimately, the York Regional Police marked that the case has not collapsed and noted that charges against five other accused remain. It was also concluded that the authorities are happy with the outcome and how this case has developed so far, as it has forfeited millions of dollars.

FAQ

We believe our article gave you all the details on the Wei Wei Markham scandal, as well as what happened on July 23rd and why. Still, we have prepared the following FAQ section for a little more info on the subject in case you’ve missed something along the way. Moreover, those who are particularly interested in the subject of gambling in the country can check out our expert guide reviewing the topic of online gambling in Canada and all that’s related to it.

Didn’t tell the public until Thursday

Harrington Raceway & Casino in Harrington, Delaware, has been closed since Tuesday because of what the casino is simply calling “technical difficulties.” It has not provided an estimate on when it will reopen.

Delaware Online reports that Harrington Raceway CEO Patti Key contacted the Delaware Lottery on Tuesday around noon to let them know that the casino would have to close. Despite this, however, the casino did not inform the public until Thursday afternoon.

causing a temporary disruption to gaming and computer systems”

In a Facebook post, echoed on the Harrington Raceway & Casino’s homepage, the casino said it is “experiencing technical difficulties that are causing a temporary disruption to gaming and computer systems.”

“We are working diligently to investigate the source of the disruption, confirm its impact on our systems, and restore full functionality to our affected systems as quickly as possible,” the statement continued. “We have significant resources, including cyber security specialists, devoted to this process and our work to resolve this issue is ongoing.”

Patrons wasted lots of time, fuel

Needless to say, Harrington Raceway patrons are none too pleased about the closure. The main gripe is that the casino made no announcement until Thursday afternoon, resulting in people making a trip to the casino only to find it closed, like something out of National Lampoon’s Vacation.

Richard Sies told WBOC that he drove from Baltimore on Thursday, an 88-mile trip, only have to make other plans.

When I pulled in here and saw the parking lot was empty, I knew I was in trouble.”

“When I pulled in here and saw the parking lot was empty, I knew I was in trouble,” said Sies. “I guess now I’m going to go to Delaware Park, which is about two and a half hours from here.”

Vernon Lambert had the same experience, as did Gina Cook and Tonia Cain, who made the 60-mile drive from Annapolis, Maryland. All three decided to head over to Bally’s Dover Casino Resort, which is about 21 miles from Harrington Raceway.

Jerome Fears, a Dover resident, is concerned about a ripple effect, worried that Bally’s will become crowded as would-be Harrington customers head to Dover. That would be good for Bally’s, but could make visitors’ experiences less enjoyable.

Laundry list of unknowns

At this point, about 1pm ET on Friday, the situation is mostly filled with unknowns. What we do know is that Harrington announced in May that it had partnered with International Game Technology to upgrade its systems in order to “further optimize its gaming floor, reward players and elevate excitement through a variety of IGT solutions,” but we do not know if this has anything to do with the problem.

Additionally, Department of Safety and Homeland Security spokesperson Arshon Howard told Delaware Online that the Delaware Division of Gaming Enforcement “is not investigating any reports of suspicious or criminal activity at Harrington Raceway & Casino.”

But what is unknown at this point, at least publicly, is what the actual technical issues are, if customer data has been breached, why cybersecurity specialists are on the case, if player reward accounts are affected, how the casino will compensate customers who missed out on free play or other promotions, and how New Year’s Eve events will be affected. And, of course, nobody knows when the casino will reopen.

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