---
category: Private Organization
location: Chicago, Illinois, USA
start: 1924
summary: The Music Corporation of America was a major entertainment corporation that
  became entangled in investigations related to organized crime and the broader network
  that Danny Casolaro termed 'The Octopus.'
tags:
- Organization
- Company
- Entertainment
- OrganizedCrime
- TheOctopus
---

The [MCA](/organizations/music-corporation-of-america/) was a major entertainment corporation that became entangled in investigations related to organized crime and the broader network that [Danny Casolaro](/people/danny-casolaro/) termed "[The Octopus](/concepts/the-octopus/)."

### Organized Crime Allegations

[MCA](/organizations/music-corporation-of-america/) was the subject of a [FBI](/organizations/federal-bureau-of-investigation/) wiretap investigation supervised by U.S. Attorney [Marvin Rudnick](/people/marvin-rudnick/) and later by [Richard Stavin](/people/richard-stavin/), a member of the Organized Crime Strike Force. These investigations, which also involved [FBI](/organizations/federal-bureau-of-investigation/) agent [Thomas Gates](/people/thomas-gates/), led them to believe that [MCA](/organizations/music-corporation-of-america/) had been penetrated by organized crime. Specifically, the wiretaps recorded communications between [Robert Booth Nichols](/people/robert-booth-nichols/) and [Eugene Giaquinto](/people/eugene-giaquinto/), then president of [MCA](/organizations/music-corporation-of-america/) home entertainment division. Giaquinto was also a board member of Nichols' holding company, [MIL](/organizations/meridian-international-logistics/), which was under [FBI](/organizations/federal-bureau-of-investigation/) investigation as a source of funding for narcotics and the allocation of drug trafficking proceeds.[1]

The intercepted conversations reportedly revealed connections to [La Cosa Nostra](/organizations/la-cosa-nostra/), including members of the [Gambino Crime Family](/organizations/gambino-crime-family/) and [Bufalino Crime Family](/organizations/bufalino-crime-family/). The wiretap application itself stated that the purpose of the interceptions was to determine the "source, type and quantity of narcotics/controlled substances, methods and means of delivery, and the source of funding for purchasing of narcotics/controlled substances." It was also apparent from the intercepted conversations that [Eugene Giaquinto](/people/eugene-giaquinto/) had a special relationship with [John Gotti](/people/john-gotti/).[1]

### Leveraged Buyout and Investigation Shutdown

At the time of these investigations, [MCA](/organizations/music-corporation-of-america/) was being offered in a leveraged buyout to Japanese interests. An [FBI](/organizations/federal-bureau-of-investigation/) investigation could have jeopardized this sale. Consequently, the wiretaps were sealed by the [DOJ](/organizations/department-of-justice/), and no prosecutions were pursued. The Los Angeles Organized Crime Strike Force was disbanded, [Richard Stavin](/people/richard-stavin/) resigned, and [Thomas Gates](/people/thomas-gates/) closed the [FBI](/organizations/federal-bureau-of-investigation/) investigation. The Japanese ultimately purchased [MCA](/organizations/music-corporation-of-america/) in what was reported as the largest corporate sale in U.S. history at the time.[1]

[Marvin Rudnick](/people/marvin-rudnick/), who lost his job for refusing to drop the investigation, later had part of his story told in the 1993 book *Stiffed: A True Story of MCA, The Music Business, and the Mafia* by William Knoedelseder.[1]

### Connection to "The Octopus"

[Danny Casolaro](/people/danny-casolaro/)'s investigation into "[The Octopus](/concepts/the-octopus/)" included [MCA](/organizations/music-corporation-of-america/), and he was reportedly told by [Robert Booth Nichols](/people/robert-booth-nichols/) about the leveraged buyout. [Dan Moldea](/people/dan-moldea/), in his 1986 book *Dark Victory: Ronald Reagan, MCA, and the Mob*, had previously labeled [MCA](/organizations/music-corporation-of-america/) as "[The Octopus](/concepts/the-octopus/)," a term that likely inspired Casolaro's own use of the phrase.[1]

---

[1] Seymour, Cheri. *The Last Circle: Danny Casolaro’s Investigation into the Octopus and the PROMIS Software Scandal*. First Edition. TrineDay, 2010.