Asphalt worker turns pension boss

James Capasso Jr. was once an asphalt worker for the city of Chicago. For 20 years, he has been executive director of a public pension fund for the city's blue-collar workers -- with $1.6 billion in assets.

For most of that time, Capasso also was a member of and an auditor for Laborers' International Union Local 1001, long run by members of the powerful Roti family, to whom he's related by marriage. Capasso's association with the Laborers' ended in June 2004. Though he admitted no wrongdoing, he resigned then in a deal with the parent union, which was threatening to bring Capasso up on disciplinary charges.

In March 2004, an independent hearing officer sided with the international union in its bid to take over Local 1001 and clean house as a result of alleged organized-crime influence. Capasso was accused of participating in "bookmaking activities for the Chicago Outfit."

Capasso -- who wasn't criminally charged -- also was among 33 people accused of getting "improper" benefits from the union. The hearing officer found that Local 1001 officers "misappropriated funds" but did not rule on the mob allegations.

Capasso told union investigators the mob allegations were "smut." Capasso said he was made a Local 1001 auditor with help from Ernest Kumerow, a former union boss and reputed organized-crime associate whose late father-in-law was Chicago mob boss Anthony Accardo.

Capasso -- who did not return calls requesting comment -- is paid $120,000 a year to run the city pension fund.