Childhood friend of famous mob family says he knows who killed B - FOX5 Vegas - KVVU

Childhood friend of famous mob family says he knows who killed Bugsy Siegel

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A picture of Bugsy Siegel is shown at a Las Vegas museum on June 20, 2017. (Adam Herbets/FOX5) A picture of Bugsy Siegel is shown at a Las Vegas museum on June 20, 2017. (Adam Herbets/FOX5)
LAS VEGAS (FOX5) -

It has been 70 years since the death of famous mobster Benjamin “Bugsy” Siegel, known for opening the Flamingo Hotel and Casino and launching a trend for what the Las Vegas Strip is today.

Siegel was reading the Los Angeles Times at his girlfriend’s house in Beverly Hills when he was shot to death on June 20, 1947. Technically, the murder case is still open with the Los Angeles Police Department.

There have been many theories as to who killed Siegel. One theory involves a mob struggle over the horse racing wire service, which Siegel controlled. Others say Siegel was embroiled in a love triangle with his girlfriend and another gangster.

Siegel was born in Brooklyn and grew up with two other boys named Moe Sedway and Meyer Lansky. The three grew up together and became gangsters together. Siegel was known as the “muscle” behind the operation. Sedway was the financial guy who kept the mob’s money under wraps. Lansky was in charge.

Stuart Sobel, a childhood friend of Moe Sedway’s son, told FOX5 he learned that at some point the relationship between the three of them turned sour.

Sobel said, when Siegel gained control of the Flamingo Hotel and Casino, he earned a reputation for mishandling money. Sedway routinely reported Siegel’s financial failures to Lansky.

“Bugsy, in a rage, told some friends, ‘I’m going to kill Moe,’” Sobel explained. “He said, ‘He’s in my way. He’s aggravating me. I’m going to kill him. I’m going to chop up his body and put it into the Flamingo industrial garbage disposal.’”

Sobel went on to explain that Sedway found out about the threat against his life and hired his wife’s boyfriend, Matthew “Moose” Pandza, to kill Siegel instead. Sedway was apparently okay with the open relationship and asked his wife to marry Pandza after he had died.

Sobel said Pandza did not have a criminal history and was able to get away with the crime by disassembling the gun and scattering the pieces. Lansky reportedly signed off on the hit, so long as a member of the mob didn’t pull the trigger and it couldn’t be traced back.

Historians at the Mob Museum in Downtown Las Vegas said they have heard this theory before. They don’t know for sure who killed Siegel, but they appreciate everything he did for the city of Las Vegas.

Siegel’s rise to power and death are one of the many stories documented by the famous museum.

Copyright 2017 KVVU (KVVU Broadcasting Corporation). All rights reserved. 

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