Published Sunday, September 20, 1998, in the Miami Herald
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AN ERA OF ILLEGAL CASINOS

The last time South Florida went through a massive battle against corruption was almost a half-century ago. Through the 1930s and 1940s, illegal casinos and bookmakers flourished, helping the tourism industry. Walter Clark, the Broward sheriff, was known to say fondly: "I let them have what they want for the tourists."

Among those who enjoyed the casinos, according to Nixon Smiley, in his history Knights of the Fourth Estate, was John Knight, co-owner of The Herald, who before World War II was "frequently seen in gambling places, rolling dice or betting on roulette."

Seymour Gelber, a longtime prosecutor and judge who most recently was mayor of Miami Beach, says the notorious S&G Syndicate thrived in Miami Beach because people accepted small payoffs. "Inspectors were getting $10 or $15 gratuities. That's how corruption begins to flourish. It's acceptable. There's no harm done. There are no victims."

When small bribes are OK for a few people, corruption can spread like a virus, and larger bribes become acceptable for all, Gelber says. "And the syndicate were considered good people. They were big contributors to charitable causes. They were providing a service to tourists." That's how illegal gambling became entrenched.

In the late '40s, outraged citizens decided that gamblers had too much control. They created the Crime Commission of Greater Miami, and John Knight changed his mind about casinos. As Smiley wrote, "While he saw no great harm in gambling, as such, he had become convinced that it was bad for the community. Gambling and bookmaking resulted in the corruption of law-enforcement officials and political leaders."

In an effort that earned the Pulitzer Prize for public service, The Herald launched an anti-crime crusade that culminated in 1950 with visits from a U.S. Senate investigating committee led by Sen. Estes Kefauver.

The Kefauver hearings revealed that Dade's sheriff, Jimmy Sullivan, had seen his wealth increase from $2,500 to $70,000 in three years, though his salary was about $10,000 a year. In Broward, it was uncovered that Sheriff Clark was a partner in a gambling operation that received $745,000 in three years.

After the hearings, the governor removed Clark and Sullivan. New sheriffs ordered raids on gambling dens. Within a year, the wide-open operations of the S&G Syndicate were dead. What was left of organized crime, historian Paul George says, moved underground.