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Arnold Rothstein (January 17, 1882 – November 6, 1928), nicknamed " The Brain", was an American Racketeering, crime boss, businessman, and gambler who became a Crime boss of the Jewish Mob in New York City. Rothstein was widely reputed to have organized corruption in professional athletics, including conspiring to fix the 1919 World Series. He was also a mentor of future crime bosses Lucky Luciano, Meyer Lansky, Frank Costello, Bugsy Siegel, and numerous others.
Rothstein "transformed organized crime from a thuggish activity by hoodlums into a big business run like a corporation", and gained notoriety as the person who first realized that Prohibition was a business opportunity, a means to enormous wealth, who "understood the truths of early 20th century capitalism (giving people what they want) and came to dominate them". His notoriety inspired several fictional characters based on his life, portrayed in contemporary and later short stories, novels, musical theater productions, television shows, and films, including the character Meyer Wolfsheim in The Great Gatsby.: "Meyer Wolfshiem, 'the man who fixed the World Series back in 1919,' was obviously based on gambler Arnold Rothstein, whom Fitzgerald had met in unknown circumstances."
Rothstein refused to pay a large debt resulting from a fixed poker game and was murdered in 1928. His illegal empire was broken up and distributed among a number of other Organized crime organizations and led in part to the downfall of Tammany Hall and the rise of reformer Fiorello La Guardia. Ten years after his death, his brother declared Rothstein's estate was insolvent.
Rothstein was known to be a difficult child, and he harbored a deep envy of his older brother Harry, who studied to become a rabbi. Abe Rothstein believed that Arnold always craved to be the center of attention and became frustrated when he was not.
As a child, Rothstein began to indulge in gambling, but no matter how often his father scolded him for shooting dice, Rothstein would not stop. In 1921, when asked how he became a gambler, Rothstein said: "I always gambled. I can't remember when I didn't. Maybe I gambled just to show my father he couldn't tell me what to do, but I don't think so. I think I gambled because I loved the excitement. When I gambled, nothing else mattered."
Rothstein had a wide network of informants, very deep pockets from some among his father's banker associates, and the willingness to pay a premium for good information, regardless of the source. His successes made him a millionaire by age 30.
Summoned to Chicago to testify before a grand jury investigating the incident, Rothstein said he was an innocent businessman, intent on clearing his name and his reputation. Prosecutors could find no evidence linking Rothstein to the affair, and he was never indicted. Rothstein testified:
In another version of the story, Rothstein was first approached by Joseph "Sport" Sullivan, a gambler, who suggested Rothstein help fix the World Series. Rothstein supposedly refused Sullivan's proposal but when he received Attell's offer, Rothstein reconsidered Sullivan's first offer. He figured that the competition to fix the game made it worth the risk to get involved and still be able to conceal his involvement. David Pietrusza's biography of Rothstein suggests that the gangster worked both ends of the fix with Sullivan and Attell.Pietrusza, pp. 147–92 Michael Alexander concluded that Attell fixed the Series "probably without Arnold Rothstein's approval", which "did not prevent Rothstein from betting on the Series with inside knowledge".
Leo Katcher said that "all the records and minutes of the Grand Jury disappeared. So too did the signed confessions of Eddie Cicotte, Lefty Williams and Jackson.... The state, virtually all of its evidence gone, sought to get the players to repeat their confession on the stand. This they refused to do, citing the Fifth Amendment." Eventually, the judge had no choice but to dismiss the case. Katcher went on, "Thus, on the official record and on the basis of State Maclay Hoyne's statement, Rothstein was never involved in the fixing of the Series. Also, on the official record, it was never proved that the Series had been fixed." Despite the legal case against the ballplayer defendants being dismissed, all eight White Sox players named as trial defendants were permanently banned from playing or participating as coaches in Major League Baseball (MLB) by the newly named first Commissioner, Kenesaw Mountain Landis. Despite all the denials, Katcher noted that "while Rothstein won the Series, he won a small sum. He always maintained it was less than $100,000. It actually was about $350,000. It could have been much – very much – more. It wasn't because Rothstein chickened out. A World Series fix was too good to be true – even if it was true."
With his banking support and high-level political connections, Rothstein soon managed to end-run Tammany Hall to the street gangs. Subsequently, his criminal organization included such underworld notables as Meyer Lansky, Jack "Legs" Diamond, Lucky Luciano, and Dutch Schultz, whose combined gangs and double-dealing with their own respective bosses subverted the entire late 19th-century form of political . Rothstein's various nicknames were Mr. Big, The Fixer, The Man Uptown, The Big Bankroll, and The Brain.
Rothstein frequently mediated disputes among the New York gangs and reportedly charged a hefty fee for his services. His favorite "office" was Lindy's, at Broadway and 49th Street in Manhattan. He often stood on the corner surrounded by his bodyguards and did business on the street. Rothstein made bets and collected debts from those who had lost the previous day. Meanwhile, he exploited his role as mediator with the city's legitimate business world and soon forced Tammany Hall to recognize him as a necessary ally in its administration of the city. Many historians credit him as the first successful modern drug dealer.
By 1925, Rothstein was one of the nation's most powerful criminals and had forged a large criminal empire. For a time he was the nation's largest bootlegger, until the rise of George Remus. With a reported wealth of over $10 million (equivalent to $162 million in 2024), Rothstein was one of the wealthiest gangsters in U.S. history and is widely considered one of the founders of U.S. organized crime.
The shooting was reportedly linked to debts owed from a three-day high-stakes poker game in October, for which Rothstein owed $320,000 (equivalent to $ million in ). He claimed the game was fixed and refused to pay, provoking his murder. Gambler George "Hump" McManus was arrested for homicide, but later acquitted for lack of evidence.
According to Kevin Cook, author of Titanic Thompson, the poker game was fixed by gambler Titanic Thompson (born Alvin Clarence Thomas) and his associate, Nate Raymond. Due to some complicated side bets, by the end Rothstein owed Raymond $319,000 (much of which Raymond, by secret agreement, was to pass on to Thompson); $30,000 to Thompson; and about $200,000 to the other gamblers present. McManus owed Rothstein $51,000. Rothstein stalled for time, saying he would not be able to pay until after the elections of November 1928, when he expected to win $550,000 for backing Herbert Hoover for president and Franklin D. Roosevelt for governor. Thompson testified at McManus's trial, calling him "a swell loser" who would never have shot Rothstein. According to Cook, Thompson later told some of his acquaintances that the killer had not been McManus, but his bag man Hyman Biller, who fled to Cuba shortly afterward.
In Kill the Dutchman!, a biography of Dutch Schultz published in 1971, the crime reporter Paul Sann suggested that Schultz murdered Rothstein. He says this was in retaliation for the murder of Schultz's friend and associate Joey Noe by Rothstein's protégé Jack "Legs" Diamond.
On his deathbed, Rothstein refused to identify his shooter, answering police inquiries with "You stick to your trade. I'll stick to mine", and "Me mudder my did it." Rothstein was buried at Ridgewood's Union Field Cemetery.
Ten years after his death, Harry Rothstein, Arnold's brother, declared Rothstein's estate insolvent and Arnold's wealth disappeared.
Illegitimate career
By 1910, Rothstein, at age 28, had moved to the Tenderloin section of Manhattan, where he established an important casino. He also invested in a horse racing track at Havre de Grace, Maryland, where he was reputed to have fixed many of the races that he won.
1919 World Series
There is a great deal of evidence both for and against Rothstein being involved in the 1919 World Series fix. In 1919, Rothstein's agents allegedly paid members of the Chicago White Sox to Match fixing the World Series to the Cincinnati Reds. He bet against them and made a large profit in what was called the "Black Sox Scandal".
1921 Travers Stakes
Under the pseudonym "Redstone Stable", Rothstein owned a racehorse named Sporting Blood, a very popular racehorse in the early 20's, which won the 1921 Travers Stakes under suspicious circumstances. Rothstein allegedly conspired with a leading trainer, Sam Hildreth, to drive up Sporting Blood's odds. Hildreth entered an outstanding three-year-old, Grey Lag, on the morning of the race, causing Sporting Blood's odds to rise to 3–1. Rothstein bet $150,000 through bookmakers, allegedly having been informed that the second favorite, Prudery, was off her feed. Just before post time and without explanation, Hildreth scratched Grey Lag from the starting list. Rothstein collected over $500,000 in bets plus the purse, but a conspiracy was never proved.
Prohibition and organized crime
With the advent of Prohibition, Rothstein saw the opportunities for Rum-running and . Liquor was smuggled along the Hudson River, as well as from Canada across the Great Lakes and into Upstate New York. Rothstein also purchased holdings in a number of Speakeasy. He became the first to import illegal Scotch whisky in his own fleet of transatlantic freighters, knowing that high-end booze would be the "chic thing to have." David Pietrusza, Rothstein: The Life, Times, and Murder of the Criminal Genius Who Fixed the 1919 World Series, Basic Books, New York, 2011, p. 193.
Death
On November 4, 1928, Rothstein was shot and wounded during a business meeting at Manhattan's Park Central Hotel at Seventh Avenue near 55th Street. He died two days later at the New York Polyclinic Hospital.
Break-up of empire
At the time of Rothstein's death, Prohibition was in full swing, various street gangs were battling for control of liquor distribution, and the carefully constructed political boss structure of the late 19th century had collapsed. Frank Erickson, Meyer Lansky, Bugsy Siegel, and other former associates split up Rothstein's criminal enterprises after his death. The already-weakened Tammany Hall had relied on Rothstein to control the new street gangs, and his death finished the corrupt political organization. With Tammany's fall, reformer Fiorello La Guardia rose in prominence and was elected Mayor of New York City in 1933.
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Categories: 1882 Births, 1928 Deaths, People Murdered In 1928, American Crime Bosses, Jewish American Gangsters, American Gangsters Of The Interwar Period, Murdered Jewish American Gangsters, Murdered American Gangsters, Criminals From New York City, Match Fixers, Deaths By Firearm In Manhattan, Unsolved Murders In New York City, Criminals From Manhattan, American Ashkenazi Jews, Jews From New York, 20th-century American Jews, Burials At Union Field Cemetery
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