Stephen Flemmi was Whitey Bulger’s criminal partner in the Winter Hill Gang. Stephen and Whitey were also FBI informants. Were Bulger and Flemmi told they would not be prosecuted for certain crimes? Bulger’s early pre-trial defense claim was that he had immunity, and he was given that immunity by former organized crime strike force federal prosecutor Jeremiah T. O’Sullivan. Did Bulger and prosecutor O’Sullivan have a meeting? Investigative reports confirm they did. Strike Force Attorney (Assistant United States Attorney) O’Sullivan contacted Connolly and requested to meet Bulger and Flemmi. O’Sullivan’s primary concern being that, by protecting Bulger and Flemmi from prosecution for their criminal activities in their RICO case, he might be placing the life of the key Race-Fix case witness (Anthony “Tony” Ciulla) in danger. Former Agent Connolly then set up the “meet” for the Meridian Hotel, right across the street from O’ Sullivan’s office in the McCormick Federal Building. At the meeting which Flemmi did not attend, Bulger gave his word that no harm would come to Ciulla from them, pointing out that they had no control over others who might want to harm the witness. O’Sullivan said that Ciulla’s relocation should prevent retaliation from the others, and his real concern was him (Bulger) and Flemmi.
More importantly, O’Sullivan assured Bulger that he and Flemmi could continue to operate their gambling and loan shark business as cover for their FBI informant activities in reporting on the New England Mafia – but that violence could not be tolerated and such conduct would be subject to prosecution. Bulger agreed this was fair.
Government witness, Stephen Flemmi, confirms this meeting at the hotel between O’Sullivan and Bulger sometime in 1979. Flemmi was debriefed and interviewed several times from Sept 16, 2003 thru October 2004. He was interviewed by Mass State Police detective Lt Stephen Johnson, and DEA agent Dan Doherty.
Flemmi 10/29/02, DEA-6, Pg. 74, Par 160:
Flemmi also noted that he and Bulger were going to meet directly with 0′ Sullivan to discuss the situation, but that this gathering was cancelled for some unknown reason. FLEMMI SAID THAT BULGER ACTUALLY MET (STRIKE FORCE ATTORNEY) 0’SULLIVAN AT A LATER DATE IN A HOTEL, AND ALTHOUGH HE (FLEMMI) WAS SUPPOSED TO GO HE DID NOT.
SHORTLY BEFORE INDICTMENTS WERE ISSUED ON THE CASE, BULGER WAS TOLD BY CONNOLLY THAT HE (BULGER) AND FLEMMI WOULD NOT BE PROSECUTED. FLEMMI NOTED THAT AT A LATER DATE S/A CONNOLLY DIRECTLY CONFIRMED TO HIM (FLEMMI), ALL OF THE ABOVE INFORMATION THAT HE HAD RECEIVED FROM BULGER, REGARDING THE RACE FIX INVESTIGATION. FLEMMI ALSO TOLD CONNOLLY TO THANK O’SULLIVAN FOR O’SULLIVAN’S INTERCESSION. FLEMMI ADDED THAT THERE IS NO QUESTION IN HIS MIND THAT THE SOLE REASON, THEY (BULGER AND FLEMMI) WERE NOT INDICTED AND CONVICTED ON THE RACE FIX CASE, WAS BECAUSE OF THEIR INFORMANT STATUS.
Flemmi, consistently, throughout ALL of his interviews and testimony, MAINTAINS THAT HE AND BULGER WERE AUTHORIZED TO ENGAGE IN NON-VIOLENT GAMBLING AND LOAN SHARKING AS COVER FOR THEIR INFORMANT ACTIVITIES ON BEHALF OF THE JUSTICE DEPARTMENT!