Check Traffic

Check Traffic
Live Cameras, Conditions

°

Homepage / Houston News
Text Size

Reported Mob Boss Hiding In Houston

By Robert Arnold

POSTED: Tuesday, September 15, 2009
UPDATED: 7:12 am CDT September 15, 2009

Along the well-manicured streets of Memorial Drive, one house holds a secret.

Harris County property records will tell you the man who owns the house behind black gates, white statues and trickling fountains is Vincent Cabella. Local 2 Investigates has learned through multiple sources that Cabella is actually Vincent Palermo, former acting boss of the DeCavalcante crime family in New Jersey. Members of the Jersey-based family were also caught on tape by the FBI bragging they were the real-life inspiration for the hit HBO show "The Sopranos."

In the late 90s, the FBI dismantled the DeCavalcante family, in large part based on information provided by Palermo.

After being indicted on a laundry list of federal charges and admitting to the murder of a suspected informant, Palermo became a government witness. In exchange, Palermo spent more than two years in prison. The federal government then gave Palermo a new name and new life in Houston.

In addition to the mansion on Memorial Drive, Local 2 found Palermo, now using the last name Cabella, also owns the property that is the Penthouse Club on Winrock Boulevard near Westheimer Road. Harris County records show he also owns the Mexican food restaurant in front of the Penthouse and the car wash behind the club. State records show a company called "Hereweareagain, inc." owns and operates the Penthouse Club, and another company called "6430 Westheimer, inc" owns and operates All Stars Cabaret across the street from Penthouse. Palermo's wife and son are listed on corporate filings for these companies.

"He looks the same, he looks exactly the same," said Greg B. Smith, investigative reporter with the New York Daily News and author of the book, "Made Men."

Local 2 contacted Smith when we learned of Palermo's identity.

"To me, it's remarkable the circumstances down here in Houston are almost the same," said Smith.

Before becoming a government witness and moving to Houston, Palermo owned Wiggles strip club in Queens. The club was eventually shut down by the city of New York because of numerous drug and prostitution cases that were made on the property.

The city of Houston also successfully sued to shut down the Penthouse Club.

"We had at least 10 separate cases of prostitution and about that number of drug offenses," Senior Assistant City Attorney Don Cheatham said.

Local 2 spotted Palermo in the parking lot of Penthouse, but he never got out of his white Mercedes.

Messages left on Palermo's cell phone by Local 2 were not returned. Palermo's attorney in New York had no comment. The U.S. attorney's offices in New Jersey and New York also did not comment.

Even though the city shut down the Penthouse Club, it is reopening this Thursday. That part of our investigation airs tomorrow at 6 a.m.

Club Shut Down By City Reopening

The sign out front promises a "Grand Opening," but this time last year the Penthouse Club on Winrock Boulevard near Westheimer Road was facing a different future. The city of Houston successfully sued to have the club shut down after undercover officers made numerous arrests at Penthouse.

The lengthy legal battle also raised questions about the owner of the property, Vincent Cabella. Local 2 Investigates reported numerous sources confirm Cabella is actually Vincent Palermo, former acting boss of the New Jersey based DeCavalcante crime family.

Palermo became a government witness after being indicted on a litany of federal charges and admitting to the murder of a suspected informant. Palermo spent more than two years in jail, and in exchange for his testimony, the government gave Palermo a new name and life in Houston.

The battle over the Penthouse actually started brewing when the owners of the club sued the city, claiming it was wrongly being treated as a sexually oriented business.

"It surprised us that they took that step, " said Don Cheatham, senior assistant city attorney. "They believed they could convince the court that they were a bikini bar, which is the common phrase now, and therefore not a sexually oriented business."

The city cited the numerous arrests made by undercover officers working sting operations inside the Penthouse Club.

"We had at least 10 separate cases of prostitution and about that number of drug offenses," said Cheatham.

The city won its case. A judge ordered the Penthouse to be shut down for one year and ruled it could never again operate as a sexually oriented business.

Sources familiar with the case spoke with Local 2 Investigates and said it was the lawsuit that brought out Cabella's identity as Palermo.

"Every time we started an investigation against this guy, we had to stop because we were told he was protected by another agency," one law enforcement source said.

Other sources told Local 2 Palermo was the landlord for the property and collected rent from his son, who is listed in state records as the owner and operator of the company that runs Penthouse.

The judge's ruling has expired and The Penthouse Club is reopening this Thursday. However, the director for global club licensing for The Penthouse Clubs, Jeff Stoller, told Local 2 the club will not operate as a sexually oriented business.

"There will be no nudity in the club," said Stoller. "The family wants to run a good club and be a good neighbor."

Residents living in the nearby Briargrove subdivision are skeptical about the club's reopening.

"I think it's terrible that we can't shut these kind of places down permanently," the president of Briargrove Property Owner, Inc., Bart Jones, said. "I understand their right to exist, to do business, but they attract crime and that's not what you want near your neighborhoods where you live and raise your children."
Text Size
The views expressed are not those of Click2Houston.com, KPRC or its affiliated companies. This is a community moderated forum. (Please note the 'Like' and 'Report' tabs.) By posting your comments you agree to accept our Terms of Use.

Comments

blog comments powered by Disqus

Sponsored Links

Links We Like

Sponsored Content
Employers generally have options when it comes to hiring. Makes sure you present yourself as professionally as possible, or else. More

You can pick your friends, but not your family -- or your neighbors. Here's what you need to know about how to deal with yours. More

It was bound to happen. There are now applications for your cell phone that can help you avoid speeding tickets as well as traffic jams. Drive carefully. More

Are you often tired or rushed in the morning? Give your morning habits a makeover, and start the day feeling positive and energetic instead. More

Most Popular