Ed Murphy: Gay Blackmailer and Activist – Chapter 5: Stonewall Shakedowns
The Stonewall Inn in Greenwich Village, New York City started life as Bonnie’s Stone Wall, named after the autobiography of Ruth Fuller Field (1864-1935), The Stone Wall. Although it was written under the pen name of “Mary Casal,” the book was extraordinarily frank in its descriptions of lesbian love and sexual attraction. In 1967, the building was reopened as a gay bar by “Fat” Tony Lauria, the son of a Mafioso and several partners. One of them was Matty “the Horse” Ianniello, the acting boss of the Genovese family. Ianniello was widely acknowledged as the Genovese capo who controlled most of New York’s gay bars and clubs. The New York State Liquor Authority refused liquor licenses to any bar that catered to open homosexuals. This created an opening for organized crime to run bars without licenses and pay off police.
Matty “The Horse” Ianniello
The Stonewall, 1960s
The Stonewall Inn was a dump. The bar had no running water; glasses were washed in a bucket. Urine soaked the toilet floor. There were no fire exits. But The Stonewall Inn had a special draw: it was the only gay bar that permitted dancing. From an upper room and back entrance, the Stonewall also offered drugs and male prostitutes. One of the bartenders, a chubby blond drag queen named Maggie Jiggs, presided over the main bar, and sold drugs in addition to Stonewall’s watered drinks. Ed Murphy was the burly doorman-bouncer. Murphy had been a ubiquitous presence in gay bars since 1946. He was still closeted in 1969, but he had sex with young men and pimped them out for tips. Murphy was said to have worked with Gambino Family associate Mike Umbers, a pornographer, to pimp teenage boys to wealthy men. Umbers reportedly had a minor role in the “Dog Day Afternoon” botched bank robbery. Umbers pressured John Wojtowicz to pay back his loan to the mob by robbing a bank. Wojtowicz borrowed the money to pay for his wedding and sex change operation for his wife, Liz Eden. Wojtowicz claimed that the idea to rob a bank came from a Chase Manhattan executive that he met in a Greenwich Village gay bar.
Did Ed Murphy continue the blackmail schemes at the Stonewall Inn that he utilized earlier during “The Chickens and the Bulls” scandal? Was he working with members of organized crime families to blackmail gay men? Was he protected by the FBI as an informer? All the evidence seems to point that way.
In his 2004 book, “Stonewall: The Riots that Sparked the Gay Revolution,” historian David Carter debunked the myth that the New York Police Department’s raid on Stonewall was intended solely to harass gay patrons. Carter studied the 1969 police files on the raid and interviewed the man who planned and led it, Deputy Inspector Seymour Pine. Pine recalled that months earlier he was called into the office of his commanding officer to discuss stolen bonds. Interpol had noticed that an unusual amount of negotiable bonds were surfacing in Europe and had requested that the NYPD investigate. Were the bonds legal or counterfeit? Who was behind it?
NYPD Deputy Inspector Seymour Pine
The NYPD investigation found evidence that the Mafia was involved along with some Wall Street employees who frequented the Stonewall Inn. Carter suggested that Murphy supplied members of the mob with names and personal information that could be used for blackmail. The police concluded that bonds had been stolen by a closeted Wall Street executive at the bidding of gangsters operating out of the Stonewall Inn. Lucian K. Truscott IV, the writer who covered the Stonewall Riots for the Village Voice, wrote an article for the New York Times in 2009, “The Real Mob at Stonewall.” Truscott related that “Deputy Inspector Pine had two stated reasons for the raid: the Stonewall was selling liquor without a license, which it was, and it was being used by a Mafia blackmail ring that was setting up gay patrons who worked on Wall Street, which also seems likely.”
The victims were set up for Murphy by the good-looking bartenders and waiters at Stonewall. The waiters would get friendly with customers and ferret out personal details. If the customer was connected or had a big job on Wall Street, the man was a good mark. “It’s really so insidious,” said one Stonewall regular, “when you’re talking to somebody that you find nice—he’s being nice, pleasant finally. Eventually you tell him where you work, and then all of a sudden this happens. It’s just so awful.”
Some victims had their wallets stolen by prostitutes. The blackmailers researched which men might be vulnerable to extortion. The Stonewall Inn also maintained a membership list. Anyone who wanted to be admitted needed to sign a book. Wise patrons used fake names, but lots of others used their real names. Blackmailers used these membership lists, plus the information pumped by waiters, to identify well-placed homosexuals in the financial industry. Closeted Wall Street employees were probably threatened by Murphy. I can see him promising to protect their anonymity, in exchange for financial instruments that the mob wanted.
The Mattachine Society of New York, the city’s first gay rights organization, had experience with Ed Murphy during “The Chickens and Bulls” extortion scandals a few years earlier. They alerted their members and others who purchased their gay bars guide that Ed Murphy was active at The Stonewall and to be wary of him. “MSNY has also been informed that Murphy has an interest in the Stone Wall, a club on Christopher Street, and several other gay clubs in New York…We caution our readers NEVER to use your real name when cruising, NEVER to give your address to a questionable bar or club, and remember, that trick or hustler you’ve just picked up may be “working” for management! We urge you, if you’ve been intimidated or blackmailed in the past, to report it to the D.A.’s office, or to M.S.NY.”
Dick Leitsch, Mattachine Society
In their March 1968 newsletter, the Mattachine Society described their role in aiding the New York City District Attorney’s office with information that led to the arrest of several blackmailers. They also made a point to identify one of them—“Edward F. P Murphy, an ex-convict who is alleged to have been the head of a national ring which recently was active in extorting money from homosexuals…has served prison terms for larceny and for carrying deadly weapons, and was arrested for impersonating an officer, and for extortion…”
Ed Murphy was never charged in the Stonewall shakedowns or stolen bonds. Neither the men who stole the bearer bonds nor the men who sold them were ever charged or punished. However, the incident led to a crackdown in the financial services industry, and many gay men lost their jobs or careers and were ruined. The head of the Mattachine Society, Dick Leitsch, gave this statement before the New York State Assembly at its “Hearings on Homosexuality” on January 7, 1971:
“Last year, following a wave of thefts from Wall Street brokerage houses, the State issued an order that all employees in the financial industry be fingerprinted. Because of this, many old and trusted employees had to be let go, because bonding companies will not insure known homosexuals and the fingerprint checks turned up evidence of old arrests. Banking and many other fields requiring bonds are off-limits to homosexuals because of this policy of bonding companies.”
This act capped a decade of exploitation and degradation of hundreds, if not thousands, of gay men and youths by Ed Murphy. He was protected by the FBI, the NYPD, the Mob, the New York State Select Committee on Crime, and his own fists, friends, and personality. He got away with it. In a tremendous irony, the Stonewall raid to arrest him for blackmail instead morphed Ed Murphy into a gay liberation legend.