Frank Costello accumulated an estimated net worth of $150 million during his decades-long reign at the peak of American organized crime. Unlike street-level enforcers who relied on brute force, Costello operated like a corporate chief executive. He built a financial empire spanning bootlegging, slot machine distribution, political lobbying, and legitimate real estate holdings. His wealth allowed him to transition from a poor immigrant child in East Harlem into the polished "Prime Minister of the Underworld" who helped structure the modern American Mafia.
Early Life and Rise to Power
Born Francesco Castiglia in Calabria, Italy, in 1891, Costello immigrated to New York City with his family as a young boy. Growing up in East Harlem, he gravitated toward street gangs, eventually leading the 104th Street Gang. During these formative years, he formed a crucial alliance with Salvatore Lucania—later known as Charles "Lucky" Luciano.
When Prohibition began in 1920, Costello recognized an unprecedented financial opportunity. He partnered with Luciano, Meyer Lansky, and Arnold Rothstein to build vast bootlegging networks that smuggled liquor down the Atlantic coast. Because Costello understood the value of diplomacy and political protection, he channeled a significant portion of his early profits into bribing police officers, judges, and municipal politicians. This strategy insulated him from the constant arrests that plagued his peers.
Following the Castellammarese War of 1931, which restructured Italian-American organized crime into the National Crime Syndicate, Costello emerged as a top earner and strategist for the Luciano Crime Family (later the Genovese family).
Building the Empire: Slots, Gambling, and Politics
Costello's true genius lay in scaling operations beyond traditional extortion. He expanded into three highly lucrative sectors that propelled his net worth upward:
- New Orleans Slot Machines: In the 1930s, Louisiana political boss Huey Long invited Costello to introduce thousands of slot machines across the state. This single venture generated millions of dollars annually.
- National Sports Wire Services: Costello controlled vital communication networks used by bookmakers nationwide to track live odds and race results, effectively taxing every illegal bet placed across America.
- Havana Casinos: Alongside Meyer Lansky, Costello invested heavily in Cuban luxury hotels and casinos, capitalizing on a lax regulatory environment favored by dictator Fulgencio Batista.
His financial reach relied heavily on political corruption. Costello famously boasted that he could pick up a telephone and speak directly to Tammany Hall leaders, judges, or congressional aides. This access kept his criminal operations safe from serious disruption for decades.
The Kefauver Hearings and the Downfall
By 1950, the U.S. Senate launched the Kefauver Committee to investigate organized crime across interstate commerce. Summoned to testify, Costello agreed to appear on television under the condition that his face wouldn't be filmed. Viewers watched his hands twitch nervously as he dodged questions before walking out of the hearing.
The televised hearings transformed him into a national symbol of corruption. Shortly after, federal prosecutors targeted him for tax evasion. In 1954, a court convicted Costello of income tax evasion, sentencing him to five years in federal prison. Although he successfully appealed and reduced some sentences, his legal battles weakened his absolute control over the family.
Internal Conflict and the Assassination Attempt
With Costello's influence waning due to federal scrutiny, ambitious rival Vito Genovese moved to seize full control of the crime family. On May 2, 1957, a gunman hired by Genovese—future boss Vincent "Chin" Gigante—shot Costello in the lobby of his Manhattan apartment building.
The bullet merely grazed Costello's head. Recognizing that an internal war would drain resources and invite more police pressure, Costello chose survival over vengeance. He officially stepped down as active boss, handing day-to-day control to Genovese while quietly retaining his massive personal wealth, real estate holdings, and offshore investments.
Later Years and Legacy
Unlike most mob bosses who died violently or spent life behind bars, Costello spent his final years as a respected elder statesman living comfortably in a Manhattan penthouse. He walked his dog, tended to his garden, and occasionally offered advice to younger mobsters.
When he died of a heart attack in 1973 at the age of 82, he left behind an estate built on decades of illicit enterprise successfully transitioned into legitimate assets. His sophisticated approach to crime and politics directly inspired Mario Puzo's character Vito Corleone in The Godfather, cementing his place in cultural history.
Frequently Asked Questions
How did Frank Costello make most of his money?
Costello generated his wealth primarily through large-scale bootlegging during Prohibition, a massive network of slot machines in Louisiana, illegal gambling rings, and sports wire services, supplemented by later investments in real estate.
Did Frank Costello die in prison?
No. Unlike Al Capone or Vito Genovese, Costello survived an assassination attempt, retired from active leadership, and died of natural causes (a heart attack) at a Manhattan hospital in 1973.
How much was Frank Costello worth at his peak?
Historical estimates place his net worth around $150 million at the time of his death, making him one of the wealthiest criminal figures of the 20th century.
Why was he called the Prime Minister of the Underworld?
Media outlets and law enforcement gave him this moniker because he preferred political lobbying, bribery, and diplomacy over street violence, acting as a bridge between criminals and legitimate societal leaders.
Who ordered the hit on Frank Costello in 1957?
Vito Genovese ordered the assassination attempt to force Costello out of power and take control of what is now known as the Genovese crime family.
