Arnold Rothstein
Arnold Rothstein (January 17, 1882 – November 6, 1928),[1] nicknamed "The Brain", was an American racketeer, crime boss, businessman, and gambler who became a kingpin of the Jewish Mob in New York City. Rothstein was widely reputed to have organized corruption in professional athletics, including conspiring to fix the 1919 World Series. He was also a mentor of future crime bosses Lucky Luciano, Meyer Lansky, Frank Costello, Bugsy Siegel, and numerous others.
Arnold Rothstein
January 17, 1882
November 6, 1928 (aged 46)
Gunshot wounds
The Brain, Mr. Big, The Fixer, The Man Uptown, The Big Bankroll
Racketeer, businessman, bootlegger, crime boss
Carolyn Green
Rothstein "transformed organized crime from a thuggish activity by hoodlums into a big business run like a corporation",[1] and gained notoriety as the person who first realized that Prohibition was a business opportunity, a means to enormous wealth, who "understood the truths of early 20th century capitalism (giving people what they want) and came to dominate them".[2] His notoriety inspired several fictional characters based on his life, portrayed in contemporary and later short stories, novels, musical theater productions, television shows, and films, including the character Meyer Wolfsheim in The Great Gatsby.[3]
Rothstein refused to pay a large debt resulting from a fixed poker game and was murdered in 1928. His illegal empire was broken up and distributed among a number of other underworld organizations and led in part to the downfall of Tammany Hall and the rise of reformer Fiorello La Guardia. Ten years after his death, his brother declared Rothstein's estate was insolvent.
Early life and education[edit]
Arnold Rothstein was born into a comfortable life in Manhattan, the son of an affluent Ashkenazi Jewish businessman, Abraham Rothstein, and his wife, Esther. His father was a man of upright character, who had acquired the nickname "Abe the Just".[4] Arnold was highly skilled at mathematics, but was otherwise uninterested in school.[4] His older brother studied to become a rabbi.[5]
Rothstein was known to be a difficult child, and he harbored a deep envy of his older brother, Harry. Rothstein's father believed that his son always craved to be the center of attention and would often get frustrated when he was not.[4]
As a child, Rothstein began to indulge in gambling, but no matter how often his father scolded him for shooting dice, Rothstein would not stop. In 1921, Rothstein was asked how he became a gambler, "I always gambled. I can't remember when I didn't. Maybe I gambled just to show my father he couldn't tell me what to do, but I don't think so. I think I gambled because I loved the excitement. When I gambled, nothing else mattered."[6]
1921 Travers Stakes[edit]
Under the pseudonym "Redstone Stable", Rothstein owned a racehorse named Sporting Blood, a very popular race horse in the early 20's, which won the 1921 Travers Stakes under suspicious circumstances. Rothstein allegedly conspired with a leading trainer, Sam Hildreth, to drive up the odds on Sporting Blood. Hildreth entered an outstanding three-year-old, Grey Lag, on the morning of the race, causing the odds on Sporting Blood to rise to 3–1. Rothstein bet $150,000 through bookmakers, allegedly having been informed that the second favorite, Prudery, was off her feed. Just before post time and without explanation, Hildreth scratched Grey Lag from the starting list. Rothstein collected over $500,000 in bets plus the purse, but a conspiracy was never proven.[11]
Prohibition and organized crime[edit]
With the advent of Prohibition, Rothstein saw the opportunities for business; he diversified into bootlegging and narcotics. Liquor was brought in by smuggling along the Hudson River, as well as from Canada across the Great Lakes and into Upstate New York. Rothstein also purchased holdings in a number of speakeasies. Later he became the first to illegally import Scotch whisky in his own fleet of transatlantic freighters. He knew that high-end booze would be the "chic thing to have."[12]
With his banking support and high-level political connections, Rothstein soon managed to end-run Tammany Hall to the street gangs. Subsequently, his criminal organization included such underworld notables as Meyer Lansky, Jack "Legs" Diamond, Charles "Lucky" Luciano, and Dutch Schultz, whose combined gangs and double-dealing with their own respective bosses subverted the entire late 19th-century form of political gangsterism. Rothstein's various nicknames were Mr. Big, The Fixer, The Man Uptown, The Big Bankroll, and The Brain.
Rothstein frequently mediated disputes among the New York gangs and reportedly charged a hefty fee for his services. His favorite "office" was Lindy's, at Broadway and 49th Street in Manhattan. He often stood on the corner surrounded by his bodyguards and did business on the street. Rothstein made bets and collected debts from those who had lost the previous day. Meanwhile, he exploited his role as mediator with the city's legitimate business world and soon forced Tammany Hall to recognize him as a necessary ally in its administration of the city. Many historians credit him as the first successful modern drug dealer.[13][14][15]
By 1925, Rothstein was one of the most powerful criminals in the country and had forged a large criminal empire. For a time he was the largest bootlegger in the nation, until the rise of George Remus. With a reported wealth of over $10 million (equivalent to $162 million in 2024),[16] Rothstein was one of the wealthiest gangsters in U.S. history, and is widely considered to be one of the founding fathers of organized crime in the United States.[4]