This investigative article appeared in the March 26, 1977 edition of the Albuquerque Journal, published in conjunction with the "Arizona Project" investigation into organized crime in Arizona, following the car bombing death of Arizona Republic newspaper's investigative reporter, Don Bolles.
I have transcribed the article, and I've included pics of the article pages, if you want to read it directly, yourself. It is plain to see that McCain's father-in-law, James Hensley, and his brother Eugene, via the record of their mob associations, multiple felony arrests, and convictions, began their "business" careers as mob soldiers under Arizona organized crime boss, Kemper Marley.
McCain arrived in Arizona, circa 1980, with no ties to the state. Don Bolles had been murdered less than 5 years before. McCain accepted a position as VP of PR at his new father-in-law's "firm", Hensley & Co., beer distributorship. McCain had to wonder, and must have found out, the background of Hensley and how he came to own one of the largest beer distributorships in the US, yet he accepted Hensley's financial help and connections, in his personal life, and in all of his political campaigns.
Today, McCain's wife, Cindy is chairperson of this company. My question is, when did the money and the business transform from a "mobbed up" enterprise, into a legitimate business generating "clean" wealth, enough wealth to make McCain the 7th wealthiest member of congress?
Download photos of the following article, enlarge and read it, or read my transcript:
Article Image 1
The article begins above this sentence, at the right bottom of the page above. Pictured is Cindy McCain's uncle, Eugene Hensley, in a Stetson hat.
Article Image 2
Riudoso Race Track Owners Tied to Arizona Gambling
March 26, 1977
By Robert V. Beier
Former associated of Phoenix wheeler dealers and gambling interests once controlled Riudoso Downs race track and whiile in New Mexico they apparently kept their business operations to themselves.
Eugene V. Hensley and his brother James W. Hensley who purchased controlling stock of Riudoso Racing Assn in December 1952, once worked for and with Kemper Marley, Phoenix millionaire rancher and wholesale liquor dealer.
And When the Hensley brothers purchased control of the Lincoln County track, Phoenix gambler Clarence E. "Teak" Baldwin simultaneously bought one third of the race track stock-- something the Hensleys denied in a State Racing Commission hearing in May, 1953.
Marley, 70 was named recently in a police affadavit as the man who requested the contract killings of Arizona Republic reporter Don Bolles, slain in a bomb attack last June and Arizona Atty Gen Bruce Babbitt.
No attempt was made on Babbitt's (continued on A-16)
(Continued from A-1)
Ex-Owners Knew Arizona Gamblers
life. Marley has not been criminally charged.
An Investigative Reporters and Editors "IRE" report in it's Phoenix Project revealed Marley also ran an organized crime ???? wire service for bookies that was managed at one time by Baldwin who was convicted of income tax evasion in 1956.
The IRE investigation showed the Hensleys were associates of Marley and Baldwin in the 1930s, 1940s and early 1950s in Phoenix.
A search of commission records in Albuquerque by the Journal showed the racing body in the early 1950s was aware of the associations and leary of Mr. Baldwin connected with the Hensleys in their purchase and operation of the track.
At a May 1953 commission hearing in Albuquerque records show the Hensley brothers readily told of their connections with the Arizona wholesale liquor business and Marley in the 1930s and 1940s and the federal convictions in 1948 for making false entires on government records regarding ???? liquor sales.
However, the Henleys denied at the same hearing that Baldwin their old croney in Phoenix, had any stock interest in Ruidoso Downs.
But two years later, at another hearing records reflect Baldwin did have stock interest in the track.
And the records show a federal lawsuit against Eugene Hensley in Albuquerque filed by trustees for Baldwin to recover 362 shares of Ruidoso Racing Assn stock was settled for $40,000 and the stock was released to the Hensleys. This was in November, 1955.
Efforts by the Journal to contact the Hensley brothers were unsuccessful. Eugene, who now lives in El Paso, and James, a resident of Phoenix, were reported in Mazatlan, Mexico.
At the May, 1953 hearing, records show that the late Tom Closson, as chairman of the commission, told the Hensleys, "The name of Teak Baldwin keeps creeping up as we go along in what the commission conveyed to you. The commission would not have Baldwin connected in any way, shape or form down there at Riuduso Downs."
The Hensleys, records show told the commissioner Baldwin had no money in the track, known as Hollywood Race Track prior to 1953.
It was brought out in the May 1953 hearing that Baldwin had been charged in Phoenix of doctoring drinks of patrons at his restaurant and then fleecing them in gambling games, according to IRE.
Baldwin later was acquitted of grand theft charges. Eugene Hensley revealed it was Baldwin who steered him to look at Ruidoso Downs which he and his brother purchased from the late OM "Hop" Lee Sr., a member of the commission and some Texas proncipals in December, 1952.
Eugene Hensley told the commission Baldwin was allowed to run the ???? men's kitchen at the track and had spent some of his own money for equipment.
In 1965, Baldwin also sued over a concession contract he allegedly had at the track. The suit in federal court in Albuquerue was dismissed.
As a result of reports concerning an alleged connection between the Hensleys and Baldwin, the commission in 1953 had the New Mexico State Police investigate the trio in Arizona.
The State Police investigation revealed Eugene Hensley had filed a suit against Baldwin in 1951 in an Arizona Court seeking $6,500 he allegedly had loaned to Baldwin. No disposition of the civil suit was mentioned in the records.
After his federal conviction and nine months in a Tucson federal prison camp Eugene Hensley told the commission he owned and operated a number of bars and cafes in Phoenix until ge purchased the Ruidoso Downs track.
James Hensley sold out his interest in the track in April, 1955. He was secretary-treasurer of the Ruidoso Racing Assn at the time and record do not reflect any further connection with the track.
Also testifying at the May 1953 hearing was RS "Stan" Snedigar, who was designated as secretary of racing at the track.
Formerly connected with Phoenix tracks as a racing official, Snedigar told the commission he was acquainted with the Hensleys and Baldwin in Arizona and detailed for the commission his knowledge of their business interests.
Snedigar later became a member of the Ruidoso Racing Assn board of directors and a minor stockholder in the track.
An IRE report lists RS Snedigar as a partner with Baldwin and others in three Phoenix restaurants and bars.
The 1953 State Police report in connection with it's Arizona investigation of the Hensleys and Baldwin noted Marley "owned a wire service formerly operated in connection with bookmaking of the Al Capone gang."
The same report listed Baldiwn as a "bookmaker for leading tracks" and said that Marley "is reputed to be the financial backer for bookies..."
The 1953 State Police report to the commission also included a transcript of a phone conversation between an officer in Sante Fe and a detective with the Phoenix Police Dpt. who said, "Our confidential files built upon Baldwin (and others) was loaned to some officials and never returned. We've never been able to locate them."
In November, 1966, Eugene Hensley was convicted of federal income tax evasion and failure to file income tax returns. Later, Eugene Hensley was barred from Ruidoso Downs by the Commission.
After unsuccessful appeals of the federal income tax comnvictions and the serving a sentence at ?? ????, Tex. federal reformatory, Eugene Hensley and his former wife, Martha Hensley, sold their controlling stock in the track in 1969.
This article provides in depth investigative reporting on the Hensleys and their boss, United Liquor distributors owner, Kemper Marley:
http://www.phoenixnewtimes.com/...
After his car was bombed, reporter Don Bolles' last word were:
"They finally got me. The Mafia. Emprise. Find John (Harvey Adamson)."
In 1969, Eugene Hensley, according to an article published in the Albuquerque Journal, sold, along with his partners, the Ruidoso Downs Race Track to a group financed by.....Emprise...the company Don Bolles mentioned in his last words.
Background on Emprise:
http://www.freerepublic.com/...
http://query.nytimes.com/...
PRO FOOTBALL: NOTEBOOK; Bidder No. 7 Helps to Thicken the Plot in the Saga of the Browns' Ownership
By MIKE FREEMAN
Published: August 16, 1998
...Jacobs's company, which, among other things, is the concessionaire to several professional baseball teams, has more than 200 operating units in dozens of states and some half-dozen other countries. The company's yearly revenues top $1 billion. The company was built by his father, Louis Jacobs, who died of a heart attack while at his desk in 1968 when Jeremy was 28 years old.
Around the time of Louis Jacobs's death, investigators had been looking into the company, then named Emprise Corporation, for links to organized crime. Jeremy Jacobs, who took control of Emprise after his father died, strongly denied any wrongdoing.
In 1972, however, a jury in a Los Angeles Federal court ruled that Emprise conspired to conceal its ownership interests as well as the interests of two alleged organized crime figures in a Las Vegas casino. The jury said that Emprise gave hundreds of thousands of dollars in loans to front men for alleged mobsters at the casino. The late Louis Jacobs and another son, Max, were named as unindicted co-conspirators. Emprise was fined $10,000.
That year, Sports Illustrated put Louis Jacobs on its cover as ''The Godfather of Sports.'' ....
Note: I can provide photo of 1969 Albuquerque Journal article detailing Eugene Hensley's sale of Ruidoso Downs track to Emprise financed buyer, and the article states that Ruidoso already had a longterm contract with Emprise as it's refreshments concessionaire.
The IRE's "Arizona Project". 23 part investigative March , 1977 report, stated unequivocally that Sen. Barry Goldwater and his brother Robert had intimate, but probably not illegal, ties to known, Las Vegas and Arizona organized crime figures. One excerpt of the report can be read on the same pages in the pictured article above.