..............................................................

>From the New Paradigms Project [Not Necessarily Endorsed]:

From: "Alex Constantine" <[EMAIL PROTECTED]>
To: "Lloyd" <[EMAIL PROTECTED]>
Subject: Feds Target Hip-Hop Collective
Date: Thursday, June 29, 2000 4:47 PM

Published May 24 - 30, 2000
WU-TANG CLAN IS SUMTHING TA FUCK WIT
BY FRANK OWEN
The World-Famous Staten Island Hip-Hop Collective Has a Government Informer
Working Within Its Ranks; at the Same Time, the Group Is Being Investigated
by the Feds for Gunrunning. Coincidence?


Cappadonna (far left) and Ghostface Killah (second from left) are said to be
the closest Wu-Tang allies of Lord Michael Caruso (second from right). but
he also club-hops with musical mastermind RZA (far right).
Earlier this year, when a Wu-Tang Clan promotional van pulled up outside the
midtown club Speed, a member of the venue's security staff wondered who the
goofy-looking white Negro was in the front passenger seat. As he stepped out
of the Ghostface Killah poster-emblazoned vehicle, the gold fronts on his
teeth glinting in the half-light, he looked dimly familiar, as well as kind
of comicalówhat with his baggy jeans and exaggerated gait, not to mention
the carefully arranged cornrows in his hair. The bouncer experienced a shock
of recognition when he realized it was Michael Caruso, a/k/a Lord Michaelóat
present employed as Wu-Tang Clan rapper Cappadonna's personal manager, but
formerly the Ecstasy kingpinówho, after he was arrested three years ago,
ratted out club owners Peter Gatien and Chris Paciello to the government in
order to save his own skin. Caruso had also supplied false information about
the bouncer's friends, who had been charged with distributing drugs, but
were later acquitted. The bouncer refused, of course, to let him into the
club.
Caruso's exterior has altered dramatically since the days when he ran a
violent drug ring at the Limelight disco in the '90s. Gone are the designer
clothes and clean-cut looks. "He dresses like a hood rat," says the security
guard. "I got the strong impression that he's changed his appearance to
protect himself from retaliation. He has to try and blend in with a black
crowd because all the Italian kids hate him." From downtown's version of
Sammy "the Bull" Gravano to Staten Island's answer to Vanilla Ice in one
easy moveóand all under the watchful eye of the feds.
Two years ago, as he sat on the witness stand at Limelight owner Peter
Gatien's drug-conspiracy trial bawling his eyes out in a badly fitting blue
suit, Michael Caruso's life seemed effectively over. The big-time
promoteróthe man who first brought techno music to Manhattan and turned
Staten Island on to Ecstasyóconfessed to a string of brutal crimes: bank
robbery, home invasions, extortion schemes, kidnapping attempts, wholesale
drug trafficking, and more. These should have put him behind bars for 20
years. But in exchange for leniency, he became the centerpiece of the
government's case against Gatien, betraying a man who he'd told associates
was closer to him than his own father. Caruso's testimony about the inner
workings of the Limelight's drug network, which he himself created, not only
provided a glimpse of the seamy underbelly of club cultureóthe violent
demimonde of dope peddlers, gangsters, professional party-goers, and police
informers hidden behind the superficial veil of fun and fabulousnessóbut
helped put behind bars many of his former colleagues.
But even though the jury ultimately didn't believe him, and eventually
acquitted the probe's primary target, Gatien, the feds nonetheless used
Caruso in another high-profile case. He is now a cooperating witness against
his former business partner Chris Paciello. The information he supplied
about Paciello's alleged mob ties played a major role in bringing about the
Miami club king's current legal troubles. Caruso is expected to testify
against his onetime pal at an upcoming September trial.

Method Man: "We're targets."
Insiders had predicted that, by now, Caruso would be dead, in prison, or a
permanent guest of the witness protection program. In the immediate wake of
the Gatien trial, he told friends he expected to do five years in the
slammer, but his sentencing date has been repeatedly postponed (most
recently to June 30), and now he expects to get parole. He's yet to serve a
single day in federal lockup, and he's experienced an amazing turnaround of
fortuneóas a manager for the world-famous hip-hop collective the Wu-Tang
Clan.
Other than changing his appearance, he's made little effort to keep a low
profile. He's frequently seen in public, club-hopping with Method Man, RZA,
and Ol' Dirty Bastard, though the Clan members he's said to be closest to
are Cappadonna and Ghostface Killah. (He also manages the rap group
Authorize FAM, featuring Caruso's and Cappadonna's respective brothers.) He
says he's not scared of reprisals from people he's informed on because the
belligerent rap groupóformed in the projects of Staten Islandóis watching
his back. The man who used to be so scared of reprisals from drug dealers
he'd robbed that he hired around-the-clock bodyguards now has his own
personal hip-hop Praetorian Guard.
Caruso just returned from a 25-date national tour with Wu members, even
though his government cooperation agreement expressly forbids him from
leaving New York or associating with people who have criminal recordsówhich
pretty much covers most everybody in the Wu-Tang Clan.
In what may or may not turn out to be an amazing coincidence, the Wu are
reportedly at the same time the subject of a federal gunrunning probe,
sparked by two murders of Wu-Tang associates involving weapons purchased
near the Clan's compound in Steubenville, Ohio.
But what's even more peculiar is that the Wu-Tang has no idea that Caruso is
a rat. After the Voice started making inquiries about Caruso with the rap
outfit's organization, group representatives confronted Caruso about stories
that he's a snitch. He not only denied providing Wu-Tang information to the
feds, he insisted he'd never informed on anybody. He told the Clan: "Don't
believe anything you read about me in the newspapers. It's all bullshit.
Haven't you ever read stuff about yourself that isn't true?" Also, when
another of the group's representatives approached Ghostface Killah with
documents and Voice articles conclusively proving Caruso is a snitch, the
rapper threatened to beat up the messenger: "How could you say that about
Mike? Mike's a good guy," he fumed. The world-class con man Caruso has
managed to sucker even the Wu-Tang Clan, a group defined by its street
savvy.
"Caruso is playing the Wu-Tang Clan like a violin," says downtown nightlife
veteran Steven Lewis, who worked with Caruso at the Limelight. "He's a
pathological liar and master manipulator. It's part of a pattern with him.
He impresses one group of tough guys with what a big shot he is, betrays
them, and then moves on to a next group. But eventually even the stupid ones
catch on to what a scumbag he really is."
"The Wu-Tang Clan doesn't care if he's a robber or a drug dealer," says a
source inside their camp. "That's probably what attracted them to Caruso in
the first place. But they would never have worked with him if they knew he
was a rat. For obvious reasons, the Wu-Tang Clan is very
anti-law-enforcement. Having someone like Caruso as part of the organization
could seriously lead to the breakup of the group."

Forty miles to the west of Pittsburgh stands the old-fashioned blue-collar
town of Steubenville, Ohio. It was here, amid the steel mills and coal
mines, that Dean Martin, Jimmy "the Greek" Snyder, and later Robert
Diggsóbetter known as Wu musical mastermind RZAówere born. The Clan owns a
compound on the outskirts of town, where the self-styled ninja warriors of
rap go to relax and practice target shooting before returning to Shaolin
(Wu-speak for Staten Islandóitself a borough best described as Copland meets
The Sopranos). Steubenville is a rough-and-tumble place. For a town of only
22,000 people, it has more than its fair share of shootings and homicides.
It also has a serious gang problem.
"It might surprise folks in the big city, but we have all kinds of street
gangs in Steubenville," admits Jefferson County assistant prosecutor Chris
Becker. "We get reports from the FBI all the time about gang-related
activity in the area. We've got Bloods, Crips, Godz, you name it. They
basically recruit from small-town America."
On a crisp autumn evening in November 1997, RZA's close friend Wisegod Allah
was walking down a street in Steubenville, on his way to a recording session
with Killarmy, the rap group he managed, when he passed a large party of
Crips hanging out on the corner. Wisegod made the mistake of flashing a
high-powered .357 Magnum handgun at the gang-bangers. The D.A. says that one
of the Crips, Willie Hubbard, believed Wisegod had robbed his Mother
Hubbard's home. The response was scattershot but lethal: Nine shooters fired
over 60 bullets at Wisegod, only one of which hit the intended target,
fatally wounding him in the head.
Steubenville detectives investigating the case traced one of the shootout's
weapons to a batch bought from a local gun store by a colleague of the
Wu-Tang Clan; the detectives also discovered an affiliation between the
Wu-Tang and local Bloods. Wisegod's death touched off a string of
retaliatory shootings. The homes of Walter "Pookie" Thompson and Donald
"Ruckus" Harris, later convicted of the murder along with fellow Crips, were
sprayed with gunfire.
A month later, on December 30, 1997, 23-year-old Robert Johnsonóa close
friend of Cappadonnaówas shot several times by two masked men on a
residential block in the St. George district of Staten Island. Staten Island
police doubt that Johnson's slaying was gang-related. But a gun left at the
scene was traced back to the same batch of weapons purchased in
Steubenville.
The gun deaths of a pair of Wu associates in such a short period of time was
reportedly enough for the Bureau of Alcohol, Tobacco, and Firearms to launch
an investigation into the group's murky extramusical activities. While no
charges have been brought, the feds reportedly believe that the Clan gets
associates to buy guns in Steubenville, which they then take to Staten
Island to defend themselves. (The ATF refuses to confirm that the group is
the subject of an investigation.)
"We're targets, man," Method Man told Vibe last year. "I mean, our lives are
in danger. If I got a gun, it's for protection. You have motherfuckers who
love your music, and would still rob your ass."
"Any alleged criminal activity that they may have engaged in is all in the
past," says Wu-Tang lawyer Peter Frankel. "The guys are too much into their
careers. There is not a scintilla of evidence to suggest the Wu-Tang Clan is
engaged in a current criminal conspiracy. As far as I know, the ATF probe
concentrated not on members of the group, but people peripheral to the
organization."
Others in the camp, though, speculate that the ATF is focusing on Diggs.
Diggs has been known to Steubenville law enforcement since 1991, when the
then 22-year-old shot Willie Walters in the leg following a dispute in which
Walters kicked Diggs's car. Charged with felonious assault, Diggs claimed he
fired in self-defense and he was ultimately acquitted. "I guess I wasn't
that good a prosecutor back then," says Chris Becker, who brought the case
to court.
Since then, Wu members have had numerous well-publicized legal run-ins. In
October 1997, Method Man was charged with assault after blindsiding and
knocking unconscious a Palladium bouncer. Though the charges were later
dropped, the Wu-Tang Clan was banned from Peter Gatien's clubs because of
the incident. In December 1997, Ghostface Killah was busted in Harlem for
carrying a .357 Magnumóthe same model that Wisegod flashed at the
Cripsóloaded with hollow-point bullets. He also pled guilty in a 1995
robbery case, and last year served four months of a six-month sentence.
Then, in January 1999, Ol' Dirty Bastard was arrested on attempted murder
charges after allegedly exchanging gunfire with street crime unit officers
during a traffic stop in Crown Heights. The grand jury refused to indict,
apparently believing the cops started the trouble. At various times ODB has
also been arrested for burglary, threatening to kill a security guard, and
not paying child support.
Into this atmosphere of turmoil stepped Michael Caruso. Caruso has known
Cappadonna for years; they grew up together on Staten Island. But in the
wake of Caruso's 1997 arrest by the Drug Enforcement Agency for distributing
Ecstasy and cocaine at the Limelight, when he immediately offered to
cooperate with the government, the former techno promoter decided to leave
the rave scene, which he felt was over, in search of a new musical
direction. He persuaded electronica fan Cappadonna to employ him as his
personal manager.
Caruso's duties include making sure the rapper gets to recording sessions on
time, and handling money and arrangements when Cappadonna is on tour. Those
who work with him complain that Caruso is unprofessional and incompetent:
"He behaves like an idiot. He spends his whole time smoking blunts, drinking
Hennessy, and using the Wu-Tang name to pick up gullible girls." It seems
life as a federal informer isn't all looking over your shoulder, expecting
to be whacked at any minute.
Caruso told the Clan he used to peddle drugs at the Limelight. He regaled
them with tales of drug and sex orgies hosted by Peter Gatien at fancy
hotels. He forgot to mention he was also working for the government.
"When I first met him I thought he was a big bullshitter," says a member of
the Wu-Tang Clan organization, who requested anonymity. "You could tell he
wasn't really hardcore. He was trying too hard to be down.
"Cappadonna is easily influenced," says the same source. "I'm surprised
Caruso was so easily able to get with the group. They're usually very
careful who they bring into their inner circle, because they've been burnt
before. He just sort of came from nowhere, and all of a sudden he was a
Wu-Tang manager. But just because Cappadonna and Ghostface Killah accept him
doesn't mean the rest of the group does."

Six years ago, when three masked robbersóone of them carrying a Tech 9
machine pistol, another a handful of brightly colored balloonsóburst into
the Chelsea apartment of novice party promoter Don Archer, he thought it was
a prank. After all, today was the nightcrawler's birthday. His friend
Allison had just phoned, and said she was coming over to help him celebrate.
Surprise quickly turned to terror, however, when he realized this was no
joke. The slightly built Archer (not his real name) was quickly overpowered
by beefy intruders and thrown to the floor, where he was tied up with duct
tape alongside Allison, whom the gunmen had supposedly kidnapped from the
street below. Turning up the music, the armed thugs ransacked the apartment,
and stole $12,000 in cash and a box of the animal tranquilizer ketamine. To
cover their exit, the bandits left pills and empty cocaine bottles strewn
around the room to deter the victim from calling the police.
"I was so scared, I cleaned up immediately and moved out of the apartment
and never went back," says Archer, who wondered how the robbers got past the
luxury building's doorman. He suspected it was an inside job. But it wasn't
until later that he found out that Allison had conspired with scam artist
Michael Caruso, who planned and pulled off the heist.
In the early '90s, Michael Caruso was a major figure in the dissemination of
rave culture in America. After a 1990 trip to the U.K. to check out the
burgeoning acid house scene, he came back to Staten Island with a crate of
techno 12-inch singles, which he handed out to local DJs, among them Pete
Repete. At clubs like the Wave and Red Spot, this hyperkinetic sound caught
the fancy of a new generation of Italian American males: "It was something
different," recalls Repete. "They liked the aggressive energy of the music
immediately." Caruso sensed that raving was the next big thing, and he was
determined to capitalize on it, by fair means or foul.
Caruso got his big break when downtown DJ Keoki heard Repete spin at a West
Village after-hours club. Keoki invited Repete to perform at one of the
Limelight's decadent Disco 2000 extravaganzas. Keoki introduced Repete and
Caruso to Peter Gatien, who suggested the Staten Islanders start throwing
Thursday parties in the small upstairs chapel area. The Inner Mind parties,
as they were called, quickly outgrew the chapel space, then soon moved to
the main floor on Fridays.
At Caruso's new Future Shock parties, shirtless juvenile delinquents from
Brooklyn and Staten Island, high on Ecstasy and angel dust, slam-danced to
hardcore beats imported from Belgium and the U.K. Tattooed kids who would
normally be fighting each other in the street were instead embracing each
other on the dancefloor, their natural-born machismo melting under the
influence of the drugs. "It was like playing in a penitentiary," jokes Moby,
who, years before he was nominated for a Grammy, performed at Lord Michael's
Limelight events.
"There was a huge response," says Steven Lewis. "It was the only place in
Manhattan that played techno music at the time. But the sudden success of
Future Shock transformed Caruso. Practically overnight, he morphed from this
shy, polite guy into a wannabe gangster who was always talking about having
people beaten up or killed."
One time, he threatened to have Lewis kidnapped because Lewis wasn't letting
in Lord Michael's drug-dealer friends from the neighborhood: "Caruso told me
that I'd made the wrong people mad, that someone called Al Dente wanted to
whack me. I thought he was kidding. But sure enough, one day I get a phone
call: 'Hey, this is Al Dente. If you don't start letting my boys into the
club, you're gonna have to deal with me.' I didn't know whether to be afraid
or order the pasta special."
In the early days, Caruso claimed he was building a new youth movement,
populated by "a new breed"óthe antithesis of the "Guido" stereotype that
bedeviled young Italian American males. His crowd listened to progressive
music and got along with blacks and gays. But really, he was laying the
foundations for a criminal organization. He gathered around him a small army
of Italian American toughs, culled from Brooklyn street cliques like the
Bath Avenue Crew and Together Forever.
"After the initial popularity of the Future Shock parties, a lot of
gangsters started coming," explains Repete. "They saw the success we were
having, and they wanted a piece of it. Greed and ambition were Caruso's
undoing. All he needed to do was stay with the scene and he would have ended
up making more money than he did by robbing people and selling drugs."
"In the beginning, Caruso seemed like a regular neighborhood guy," adds
Repete. "I had no clue what a scumbag he would turn into."

Caruso's first major robbery of record occurred early in 1992. Goldilocks,
normally a supplier of Ecstasy, wanted to buy 20,000 hits from Caruso. When
Goldilocks's assistant, Mr. Purpleóso-called because of his purple hair and
clothesóarrived at the door of Caruso's posh Gramercy Park apartment,
$180,000 in hand, two of Caruso's goons emerged from a side door, announced
they were undercover drug cops, and pushed Purple in. Purple was ordered to
lie down on the floor, where he was handcuffed. Caruso was also handcuffed
as part of the scam.
Caruso's duplicity didn't end there. He subsequently paid his lieutenant
Robert Gordon $5000 to convince Goldilocks that Caruso had nothing to do
with the rip-off. Goldilocks bought the story, and continued to do drug
deals with his Lordship.
Less than a year after the robbery, in March 1993, Caruso's partner in crime
Damon Burett was found shot in the head in the loft space at Caruso's pad.
When not dealing drugs for Caruso, Burett worked as Lord Michael's
housekeeper in return for room and board. He was widely regarded as a sweet
guy, but emotionally unstable.
When the police arrived, Caruso was holding a .32 pistol. The medical
examiner ruled Damon's demise a suicide, but private eye John Dabrowskióa
retired Nassau County homicide cop working for Gatienócame to believe that
Caruso used a suicide attempt by Burett the previous Sunday to cover the
murder. On the witness stand at the Gatien trial, Caruso denied killing
Burett. But Dabrowski claims that, given the extraordinarily high level of
Valiumóthe equivalent of over 100 pillsófound in the housekeeper's blood,
it's doubtful he could have held a gun, let alone put it to his head and
squeezed the trigger. And the contents of Burett's suicide note raise more
troubling questions: "I took pills and lemons [slang for quaaludes]. It was
better than blowing my brains out." Why would somebody describe one method
of killing himself and do precisely what he said he wasn't going to do?
When key Caruso associate Paul Torres was arrested in 1997, he told the DEA
that he thought Lord Michael killed Damon because Burett was being
investigated for narcotics. Damon's father, Raymond, confirmed to the Voice
that his son was picked up on serious drug charges roughly a year before his
death.
"The detectives handling the case didn't do a proper investigation," claims
Dabrowski. "Caruso basically bullshitted the police like he did everybody
else."

His job as a federal informer hasn't put a crimpin Caruso's lifestyle. Since
his DEA arrest, he continues to throw parties, associate with known
criminals, and hatch scams. He and Brendon Schlitz, an incarcerated member
of a Mafia-connected street gang known as the Port Richmond Crew, used to
rob drug dealers. According to Schlitz, a former schoolmate, Caruso spends
his daysówhen not on tour with the Wu-Tang Clanóhanging out at his father's
garage, Mike's Radiator Repair, smoking pot, trading rhyming couplets with
his rapping brother Mario, and "dreaming of his next big score." (When the
Voice attempted to contact Caruso at the garage, Mario answered and said,
"All you guys do is put slander all over him." Then he hung up. The Voice
was unable to reach Caruso himself.)
"He's running around Staten Island like the mayor," says Schlitz. "He tells
everybody he's down with the Wu-Tang Clan. They don't know how much of a
lying rat bastard he really is."
Only two months agoóat a stop on the Ghostface Killah/Cappadonna tour,
during Soul Camp, a hip-hop night at the Garage in Washington, D.C.óan
armed, drunken Caruso intimidated a group of promoters.
"He threatened our staff," says the concert organizer. "He was carrying a
handgun in the waistband of his green Karl Kani jeans. 'It's about to get
real in here,' he warned them. 'I'm going to come up with some heat.'
Everybody knew what he meant."
The dispute was a trivial one. After the gig, a Ford Expedition had turned
up to take the Wu-Tang Clan back to the hotel, instead of the expected large
van. "Where's the van?" Caruso raged. "If I don't get a van, I want a
thousand dollars right now."
"We had zero problems with the artistsóGhostface and Cappadonna were great,"
says the promoter. "The concert was incredible, except for dealing with
Caruso, which was a nightmare. In this business you run into a lot of
assholes. But Caruso was the biggest dickhead I've had to deal with. Why the
Wu-Tang Clan allow this idiot to represent them amazes me. He's hurting the
group's reputation."

Additional reporting by Cara Buckley




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