[Mercedes] interesting obscure bit of history

[Curley McLain]

Interesting, but it makes sense.

https://www.thearmorylife.com/operation-underworld-the-mafias-hidden-role-in-wwii/?
Operation Underworld: The Mafia’s Hidden Role in WWII

By Eugene Nielsen

Operation Underworld: The Mafia’s Hidden Role in WWII December 18th, 
2025 8 minute read
By Eugene Nielsen

One of the most improbable alliances in World War II history was a 
covert partnership between the United States government and organized 
crime. Known as Operation Underworld, this clandestine initiative was 
born out of wartime desperation.

With America’s eastern seaboard vulnerable to Axis sabotage and German 
U-boats decimating Allied shipping, federal authorities turned to an 
unlikely source for help — mobsters like Charles “Lucky” Luciano and 
Meyer Lansky.

The USS Lafayette fire sparked immediate fears of Nazi sabotage right in 
America’s backyard. Image: NARA
The USS Lafayette fire sparked immediate fears of Nazi sabotage right in 
America’s backyard. Image: NARA
These figures, once hunted by law enforcement, were now enlisted to 
safeguard ports, suppress labor unrest, and gather intelligence. What 
began as a tactical response to immediate threats evolved into a 
strategic collaboration that extended across the Atlantic and played a 
subtle but vital role in the Allied victory.

Sabotage and the USS Lafayette
The turning point came on February 9, 1942, when the USS Lafayette 
(formerly the SS Normandie) caught fire and capsized in New York Harbor. 
The ship, a French luxury liner being converted into a troop transport, 
was lost in an incident officially blamed on a welding accident. 
However, the timing, just two months after Pearl Harbor, sparked 
widespread fears of Nazi sabotage, adding urgency to efforts to secure 
the waterfront.

The massive USS Lafayette lies completely on its side against a pier in 
New York Harbor, its hull exposed above the waterline. Image: U.S. Navy
The massive USS Lafayette lies completely on its side against a pier in 
New York Harbor, its hull exposed above the waterline. Image: U.S. Navy
The incident exposed glaring vulnerabilities in port security and 
intensified concerns about Axis agents operating within the U.S. At the 
same time, German U-boats prowled the Atlantic, sinking over 120 Allied 
merchant vessels in the first quarter of 1942 alone. The Office of Naval 
Intelligence (ONI), overwhelmed and lacking resources, realized that 
traditional law enforcement couldn’t secure the docks. The Mafia, with 
its deep control over unions and street-level networks, offered a solution.

Operation Underworld
Launched in the spring of 1942, Operation Underworld was a highly 
classified initiative jointly orchestrated by the ONI and the U.S. 
Attorney’s Office. The program was conceived in response to growing 
concerns over Axis sabotage, labor unrest, and rampant theft along the 
New York waterfront, a vital artery for American military logistics 
during World War II. Recognizing the limitations of conventional law 
enforcement in securing the docks, federal authorities turned to an 
unconventional solution: enlisting the cooperation of organized crime.

This bustling market represented more than commerce; it was a nerve 
center for organized crime’s grip on the docks. Image: Library of 
Congress/Public Domain
This bustling market represented more than commerce; it was a nerve 
center for organized crime’s grip on the docks. Image: Library of 
Congress/Public Domain
Operation Underworld was spearheaded by Commander Charles R. Haffenden, 
who led ONI’s New York office and was directly responsible for 
coordinating with Mafia contacts. Given ONI’s hierarchical structure, 
such a sensitive and unconventional operation would almost certainly 
have required approval or tacit support from senior leadership.

The operation sought to harness the influence of Italian-American and 
Jewish mobsters, whose control over longshoremen’s unions and intimate 
knowledge of port operations made them uniquely equipped to monitor and 
protect the waterfront. Among the key objectives were the prevention of 
sabotage through surveillance and deterrence of foreign agents, the 
suppression of labor strikes that could disrupt wartime shipping, the 
curtailment of black-market theft of military supplies, and the 
collection of intelligence on Axis sympathizers and pro-fascist groups 
operating in urban centers.

Every man was a potential set of eyes and ears for Operation Underworld. 
Workers influenced by the mafia became an unofficial security force 
during World War II. Image: Library of Congress/Public Domain
Every man was a potential set of eyes and ears for Operation Underworld. 
Workers influenced by the mafia became an unofficial security force 
during World War II. Image: Library of Congress/Public Domain
The New York Port of Embarkation (NYPOE) served as a critical hub for 
deploying U.S. troops and supplies to overseas theaters, making it a 
strategic asset vulnerable to sabotage and espionage. Though NYPOE was 
not the direct focus of Operation Underwood, its logistical lifelines 
depended heavily on the civilian docks and labor unions that Operation 
Underworld helped stabilize. By curbing labor unrest and deterring 
Axis-aligned saboteurs, the operation ensured uninterrupted military 
shipments through New York’s port system, indirectly safeguarding the 
NYPOE’s vital wartime mission.

In exchange for their assistance, mob leaders were offered leniency in 
ongoing prosecutions, protection from further legal action, and, in 
select cases, early release from prison. Though controversial, the 
arrangement proved effective in stabilizing the docks and securing one 
of the nation’s most critical wartime assets.

Meyer Lansky
Meyer Lansky, the cerebral architect of the Jewish mob, was instrumental 
in brokering the alliance between organized crime and the U.S. 
government during World War II. Renowned for his financial acumen and 
strategic foresight, Lansky operated more like a corporate executive 
than a street-level gangster.

Meyer Lansky operated as a sort of “corporate executive,” building 
bridges between mafia factions and eventually the U.S. government 
itself. Image: Library of Congress/Public Domain
Meyer Lansky operated as a sort of “corporate executive,” building 
bridges between mafia factions and eventually the U.S. government 
itself. Image: Library of Congress/Public Domain
His long-standing ties with Italian-American crime families, 
particularly with Lucky Luciano, positioned him as a trusted 
intermediary capable of uniting disparate factions of the underworld. 
Lansky was respected not only for his intellect, but also for his 
ability to maintain order and resolve disputes without violence.

When federal agents approached him, Lansky saw the opportunity not just 
as a patriotic duty, but as a calculated move to protect his interests 
and elevate his influence. He agreed to cooperate on the condition that 
Luciano be involved, recognizing that Luciano’s control over the docks 
was essential. Lansky then mobilized Jewish gangsters, many of whom 
harbored deep resentment toward fascism and its antisemitism, to monitor 
Nazi sympathizers in New York and New Jersey. These operatives used 
intimidation, infiltration, and surveillance to disrupt pro-fascist 
activities.

Beyond the waterfront, Lansky’s network infiltrated German-American Bund 
meetings and tracked Axis-aligned operatives, feeding intelligence to 
federal authorities and helping neutralize domestic threats during a 
critical period of the war.

Lucky Luciano
Charles “Lucky” Luciano, widely regarded as the architect of modern 
organized crime in America, was serving a 30- to 50-year sentence at 
Dannemora Prison (now part of Clinton Correctional Facility) when U.S. 
authorities approached him during World War II. Despite his 
imprisonment, Luciano maintained considerable influence over New York’s 
waterfront through trusted associates like Joseph “Socks” Lanza, who 
controlled the Fulton Fish Market and held sway over the United Seafood 
Workers union. This network gave Luciano indirect command over 
longshoremen and port operations, critical assets during wartime.

Lucky Luciano went from this mugshot to becoming an unlikely wartime 
asset for the U.S. government. Image: NYPD
Lucky Luciano went from this mugshot to becoming an unlikely wartime 
asset for the U.S. government. Image: NYPD
With Meyer Lansky acting as intermediary, Luciano agreed to cooperate 
with the Office of Naval Intelligence in exchange for potential 
clemency. He instructed his men to assist naval intelligence officers, 
secure the docks against sabotage, and monitor for Axis agents. 
Luciano’s influence over labor unions also enabled him to prevent 
strikes and ensure uninterrupted military shipments.

His wartime contributions were deemed so vital that in 1946, New York 
Governor Thomas Dewey, who had led the prosecution against him, commuted 
Luciano’s sentence. Luciano was subsequently deported to Italy, a 
decision that sparked public controversy. While critics viewed it as 
rewarding a criminal, supporters argued that his cooperation had helped 
safeguard American infrastructure during a critical period of the war.

Other Underworld Allies
While Lucky Luciano and Meyer Lansky were the central architects of 
Operation Underworld, several other prominent figures in organized crime 
played supporting roles that proved vital to the operation’s success. 
These men, each wielding influence over key sectors of the waterfront 
and labor unions, helped enforce security, suppress unrest, and maintain 
the flow of wartime logistics.

Frank Costello’s political connections made him the perfect 
behind-the-scenes operator for Operation Underworld. Image: Library of 
Congress/Public Domain
Frank Costello’s political connections made him the perfect 
behind-the-scenes operator for Operation Underworld. Image: Library of 
Congress/Public Domain
Frank Costello, often called the “Prime Minister of the Underworld,” 
also contributed through his deep political ties. A trusted confidant of 
Lucky Luciano, Costello’s influence over Tammany Hall and New York’s 
municipal apparatus enabled quiet coordination between law enforcement 
and organized crime. His behind-the-scenes maneuvering helped legitimize 
the operation and shield it from public scrutiny.

After Luciano’s imprisonment in 1936, he continued to run his crime 
family from behind bars, initially through Vito Genovese, his acting 
boss. However, when Genovese fled to Naples in 1937 to escape a murder 
indictment, Luciano appointed Costello, his consigliere and political 
strategist, as acting boss. This transition placed Costello in a pivotal 
position by the time Operation Underworld launched in 1942, allowing him 
to serve as a crucial intermediary between the Mafia and government 
officials, ensuring the operation’s success through his unique blend of 
criminal authority and political finesse.


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Joseph “Socks” Lanza, a prominent figure in New York’s maritime commerce 
and a capo in the Luciano crime family (later known as the Genovese 
family), was among the key contributors to Operation Underworld. 
Operating out of the Fulton Fish Market, Lanza wielded considerable 
influence over the United Seafood Workers union, giving him strategic 
control over a critical segment of the waterfront. Rather than relying 
solely on brute force, Lanza leveraged his position to enforce 
discipline, maintain order, and discreetly oversee port activities. His 
cooperation with Naval Intelligence helped deter sabotage attempts and 
ensured the smooth transit of military cargo through one of the nation’s 
busiest hubs, reinforcing America’s wartime logistics during a period of 
heightened vulnerability.

Together, they formed a shadow network of wartime enforcers, operating 
under the radar but with significant impact. Their contributions, though 
less publicized than those of Luciano and Lansky, were essential to the 
success of Operation Underworld and the broader effort to protect 
America’s wartime infrastructure.

Invasion of Sicily
The Mafia’s utility did not end at the water’s edge. During Operation 
Husky, the Allied invasion of Sicily in July 1943, U.S. military 
planners faced formidable obstacles: rugged terrain, entrenched fascist 
resistance, and a population wary of foreign troops. Here too, Lucky 
Luciano’s connections proved crucial.

Calogero Vizzini became an unlikely asset for Operation Husky. His 
connections, facilitated through Luciano’s network, helped Allied forces 
avoid ambushes and identify fascist loyalists. Image: Public Domain
Calogero Vizzini became an unlikely asset for Operation Husky. His 
connections, facilitated through Luciano’s network, helped Allied forces 
avoid ambushes and identify fascist loyalists. Image: Public Domain
Through intermediaries, Luciano facilitated contact with Sicilian Mafia 
leaders, notably Calogero Vizzini, a dominant figure in Villalba with 
deep local influence. These mobsters acted as informal guides, helping 
Allied forces navigate unfamiliar landscapes, identify fascist 
loyalists, and avoid ambushes. They also provided intelligence on German 
troop movements and used their authority to persuade villagers to 
cooperate with the invaders.

After the initial military success, Mafia figures played a stabilizing 
role in the region’s governance. Some were appointed to municipal 
positions, leveraging their local clout to maintain order and assist in 
rebuilding efforts. Their involvement helped fill the power vacuum left 
by the collapse of fascist rule and eased the transition to Allied control.

Operation Husky brought Allied forces ashore in Sicily, and local 
cooperation made all the difference. Image: IWM
Operation Husky brought Allied forces ashore in Sicily, and local 
cooperation made all the difference. Image: IWM
While their participation sparked debate over the long-term consequences 
of empowering criminal elements, their wartime contributions were 
undeniably effective. The collaboration in Sicily underscored the 
strategic value of unconventional alliances in achieving military 
objectives during World War II.

A Fierce Debate
Operation Underworld remained classified for decades, its details 
obscured by layers of secrecy and denial. When historians and 
journalists finally uncovered the truth, the revelations sparked fierce 
debate. Critics argued that the alliance legitimized organized crime and 
empowered figures who would later dominate the postwar underworld.

Coast Guard patrol over the Lafayette wreckage. There was a concern 
there were saboteurs already embedded in the dock workforce. The 
government needed boots on the ground. Image: U.S. Navy
Coast Guard patrol over the Lafayette wreckage. There was a concern 
there were saboteurs already embedded in the dock workforce. The 
government needed boots on the ground. Image: U.S. Navy
Supporters countered that the collaboration was a pragmatic response to 
wartime exigencies. In a moment of national peril, the government had 
few options and the Mafia delivered results. The operation also 
highlighted the porous boundaries between legality and necessity in 
times of crisis.

Final Thoughts
Operation Underworld showcases the complexities of wartime 
decision-making. Faced with sabotage, espionage and logistical chaos, 
the U.S. government turned to men it had once prosecuted to protect its 
ports and support the war effort. Luciano and Lansky, symbols of 
criminal enterprise, became unlikely allies, demonstrating that in times 
of war, alliances are often forged by necessity. Their contributions, 
though shrouded in secrecy and controversy, helped secure American 
shores and pave the path to victory in Europe.