The Art of Making Money

by Jason Kersten

  Table of Contents

  Title Page

  Copyright Page

  Dedication

  BOOK ONE

  Chapter 1 - SENIOR

  Chapter 2 - BRIDGEPORT

  Chapter 3 - THE APPRENTICE

  Chapter 4 - ESCAPE

  Chapter 5 - THE DUNGEON

  Chapter 6 - TEXAS

  BOOK TWO

  Chapter 7 - BATTLE OF THE BILL

  Chapter 8 - “EVERYBODY WILL WANT”

  Chapter 9 - THE ART OF PASSING

  Chapter 10 - HOUSE OF BLUES

  Chapter 11 - THE LETTER

  Chapter 12 - SONNY

  Chapter 13 - FAMILY BONDING

  Chapter 14 - DEBTS

  EPILOGUE

  Acknowledgements

  GOTHAM BOOKS

  Published by Penguin Group (USA) Inc.

  375 Hudson Street, New York, New York 10014, U.S.A.

  Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario M4P 2Y3, Canada

  (a division of Pearson Penguin Canada Inc.); Penguin Books Ltd, 80 Strand, London WC2R 0RL, England;

  Penguin Ireland, 25 St Stephen’s Green, Dublin 2, Ireland (a division of Penguin Books Ltd); Penguin

  Group (Australia), 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson

  Australia Group Pty Ltd); Penguin Books India Pvt Ltd, 11 Community Centre, Panchsheel Park, New

  Delhi—110 017, India; Penguin Group (NZ), 67 Apollo Drive, Rosedale, North Shore 0632, New Zealand

  (a division of Pearson New Zealand Ltd); Penguin Books (South Africa) (Pty) Ltd, 24 Sturdee Avenue,

  Rosebank, Johannesburg 2196, South Africa

  Penguin Books Ltd, Registered Offices: 80 Strand, London WC2R 0RL, England

  Published by Gotham Books, a member of Penguin Group (USA) Inc.

  First printing, June 2009

  Copyright © 2009 by Jason Kersten

  All rights reserved

  Gotham Books and the skyscraper logo are trademarks of Penguin Group (USA) Inc.

  LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA

  Kersten, Jason.

  The art of making money: the story of a master counterfeiter / Jason Kersten.

  p. cm.

  eISBN : 978-1-101-06016-2

  Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior written permission of both the copyright owner and the above publisher of this book.

  The scanning, uploading, and distribution of this book via the Internet or via any other means without the permission of the publisher is illegal and punishable by law. Please purchase only authorized electronic editions, and do not participate in or encourage electronic piracy of copyrighted materials. Your support of the author’s rights is appreciated.

  While the author has made every effort to provide accurate telephone numbers and Internet addresses at the time of publication, neither the publisher nor the author assumes any responsibility for errors, or for changes that occur after publication. Further, the publisher does not have any control over and does not assume any responsibility for author or third-party Web sites or their content.

  http://us.penguingroup.com

  FOR KRIS AND WILLIE

  AUTHOR’S NOTE

  To tell this story, I relied on interviews with primary sources whenever possible, reconstructing events and dialogue according to their memories. In instances where their recollections conflicted, I generally favored my protagonist’s version of events unless other source material was convincing enough to override him. I also drew on numerous legal documents such as court transcripts, law enforcement reports and warrants, prison records, and wiretap transcripts. Historical and contextual material was obtained from books, newspaper articles, and interviews.

  Some of the people quoted in this book consented to interviews on the provision that their names be changed. In other cases, I changed the names of minor characters myself or used established nicknames because contacting them was either impossible or impractical.

  Other than a single interview provided to me at an early date, the United States Secret Service chose to remain secret, declining numerous requests for interviews. Quotes and scenes involving Secret Service agents appearing in this book are therefore reconstructed from official reports and interviews with criminal suspects.

  “Modern man, living in a mutually dependent, collective society, cannot become a counterfeiter. A counterfeiter should be possessed of the qualities found only in a Nietzschean hero.”

  —LYNN GLASER, FROM

  Counterfeiting in America: The History of

  an American Way to Wealth

  PROLOGUE

  It took Art Williams four beers to summon the will to reveal his formula. We had been sitting in his living room, a few blocks from Chicago’s Midway Airport, listening to jets boom by for the better part of two hours. I was there interviewing him for an article for Rolling Stone magazine, and he had promised to tell me the secrets that made him one of the most successful counterfeiters of the last quarter century. Understandably, he was reluctant.

  “I’ve never shown this to anybody before,” he finally said with a contempt indicating that I could not possibly appreciate or deserve what I was about to see. “You realize how many people have offered me money for this?”

  Some men—he wouldn’t say who—once promised him three hundred thousand dollars for his moneymaking recipe. They pledged to set him up in a villa anywhere in the world with a personal guard. It was easy to picture Art sitting on a patio above the Caspian Sea surrounded by bucket-necked Russian gangsters. With his high, planed cheeks, blue eyes, and pumped-up physique, he’d fit right in with an Eastern European operation. It was also easy to think that he was full of shit, because Art Williams was a born hustler, as swaggering as any ever found on the streets of Chicago. Later I’d learn that the offer had been real, and that he’d declined because he wasn’t sure if his guards would treat him as prince or prisoner.

  “My friends are going to hate me for telling you,” he sighed. “They’ll probably hate you for knowing.” Then he shuffled off toward the kitchen. Hushed tones of an argument between him and his girlfriend, Natalie, echoed down the hall. It was clear enough that she didn’t want him to show me. When I heard a terse “Fine, whatever,” I was pretty sure that Natalie would hate me too. Then came the rumblings of doors and cabinets opening and the crackling of paper.

  A moment later, Williams returned with some scissors, three plastic spray bottles, and a sheet of what looked like the kind of cheap, gray-white construction paper a kindergarten teacher might hand out at craft time.

  “Feel how thin it is,” he whispered, handing me a sheet. Rubbing the paper between my thumb and forefinger, I was amazed at how authentic it already felt. “That’s nothing,” he said. “Just wait.”

  He cut two dollar-sized rectangles from the sheet, apologizing that they were not precise cuts (they were almost exactly the right size). Then he sprayed both cuts with adhesive, his wrist sweeping fluidly as he pressed the applicator. “You have to do it in one motion or you won’t get the right distribution,” he explained. After he deftly pressed the sheets together and used the spine of a book to push out air bubbles, we waited for it to dry. “I always waited at least half an hour,” he said. “If you push it, the sheets could come apart later on. Trust me, you don’t want that to happen.”

  Another beer later, he sprayed both sides of the glued sheets with two shots of hardening solution, then a satin finish.
“Now this,” he said before applying the final coat, “is the shit.”

  Five minutes later I held a twenty-dollar bill in one hand and Art Williams’s paper in the other, eyes closed. I couldn’t tell them apart. When I opened my eyes, I realized that Williams’s paper not only felt right, but it also bore the distinctive dull sheen.

  “Now snap it,” he commanded. I jerked both ends of the rectangle and the sound was unmistakable; it was the lovely, husky crack made by the flying whip that drives the world economy—the sound of the Almighty Dollar.

  “Now imagine this with the watermark, the security thread, the reflective ink—everything,” he said. “That’s what was great about my money. It passed every test.”

  ART WILLIAMS WAS THIRTY-TWO YEARS OLD and already a dying breed. In an era when the vast majority of counterfeiters are teenagers who use ink-jet printers to run off twenty-dollar bills that can’t even fool a McDonald’s cashier, he was a craftsman schooled in a centuries-old practice by a master who traced his criminal lineage back to the Old World. He was also an innovator who combined time-tested techniques with digital technology to re-create what was then the most secure U.S. banknote ever made.

  “He put a lot of work into his bills,” Lorelei Pagano, a counterfeit specialist at the Secret Service’s main lab in Washington, D.C., would later tell me. “He’s no button pusher. I’d rate his bills as an eight or a nine.” A perfect 10 is a bill called the “Supernote” that many believe is made by the North Korean government on a ten-million-dollar intaglio press similar to the ones used by the Bureau of Engraving and Printing.

  Art would eventually reveal to me his entire process of making money, and I’d be awed by the obsession, dedication, and exactitude it had taken him to achieve it. But as extraordinary as his formula was, it defined his story about as much as a mathematical equation can capture the mystery and terror of the universe. Far more interesting were the forces that created and compromised him, and those could not be easily explored in a magazine article. Art had too many secrets to share, many of which he had hidden even from himself. He’d spent half his life pursuing verisimilitude in an idealistic attempt to recapture something very real that he believed had been lost, or stolen, or unfairly denied. What enthralled and terrified me the most was that his pursuit had very little to do with money, and the roots of his downfall lay in something impossible to replicate or put a value on. As he would say himself, “I never got caught because of money. I got caught because of love.”

  BOOK ONE

  1

  SENIOR

  “Yo’ ole father doan’ know yit what he’s a-gwyne to do. Sometimes he spec he’ll go ’way, en den ag’in he spec he’ll stay. De bes’ ways is to res’ easy and let de ole man take his own way. Dey’s two angels hoverin’ roun’ ’bout him. One uv ’em is white en shiny, en t’other one one is black. De white one gits him to go right a little while, den de black one sail in en bust it all up. A body can’t tell yit which one gwyne to fetch him at de las’. But you is all right. You gwyne to have considable trouble in yo’ life, en considable joy.”

  —WHAT THE HAIRBALL TOLD JIM ABOUT

  HUCK’S FUTURE, AFTER THEY PAID IT WITH A

  COUNTERFEIT QUARTER. The Adventures of

  Huckleberry Finn, MARK TWAIN

  Stateville Correctional Center in Joliet, Illinois, sits back from the Des Plaines River on a low rise, its thirty-three-foot-high walls and ten guard towers a vision of medieval austerity amid cornfields and plains. Built in the 1920s and inspired by designs from the English social philosopher Jeremy Bentham, the prison’s centerpiece is a “panopticon”—a four-story circular cell block with a guard tower in the dead center. Bentham theorized that the layout would project a “sentiment of invisible omniscience” to the inmates, who would never know when the guards in the tower were watching. For guards and inmates alike it’s a world out of Dante: a giant, clamorous cylinder hiving some of Illinois’s most violent and deranged criminals.

  It was in Stateville’s visiting room, in the winter of 1978, that Art Williams Jr. had his earliest memory of his father. He was six years old, sitting on his daddy’s lap, happy in the knowledge that he would soon be getting out.

  By Joliet standards, Arthur Williams Sr.—inmate number C-70147—was a small fish. He’d been convicted two years earlier for robbing a truck in DuPage County. While the crime was nonviolent, it was part of a long line of similar offenses that stretched back to his teens, and so Judge William V. Hopf had rewarded Williams’s felonious consistency with a stay in what one former warden called “the world’s toughest prison.”

  That winter, there were some signs that Williams was finally getting the message. He’d been on good behavior throughout his term, and he was looking forward to resuming a normal life with his wife and three kids. Not that Williams had many positive reference points when it came to family life.

  He’d been born Arthur Julius Luciano, the son of an alcoholic trucker from Sicily, and a mentally ill Irish mother. In his early years, the family, which also included his younger brother Richard, had lived in Bridgeport—one of the toughest neighborhoods on Chicago’s South Side. When he was twelve, the Lucianos moved to the suburb of Lemont, a quarry town about fifteen miles southwest of Chicago. There they were among the poorest families in town. Their house lacked running water, and Luciano and his brother would lug their water from a nearby gas station, using it to drink and fill their toilet. On their beds were packing blankets from their dad’s truck.

  Things only got tougher. Within a year of moving to Lemont, Luciano’s father died after driving his rig off an overpass on Chicago’s Damen Avenue. His mother was ill-equipped to raise the boys alone. She was prone to spells of verbal fixation in which she would repeat the phrase Lotti-fa-dotti to herself, sometimes for hours. Within a year she remarried another alcoholic trucker, who had a tendency to go after the boys with a belt after a few whiskeys. Whatever mitigating influence their mother might have had on their stepdad’s violence ended when she died of natural causes, when Luciano was only fourteen.

  Poverty can always afford paradox, and the great one of Luciano’s childhood was that somehow the family always managed to feed a pack of five or six dogs. Completely undisciplined, they were of every breed and bark and occupied the house with the same prerogatives as the children. They’d sleep in the beds with the kids, and Luciano adored them. “I can’t say for sure that Art ever really loved anybody, but he definitely loved those dogs,” says Bruce Artis, one of Luciano’s childhood friends. “That was just the strangest thing about him, but maybe it wasn’t so strange—given his folks, I mean.”

  By the time he was sixteen, Luciano had decided that home was not the place to be. He fixed up a broken-down ’65 Ford that his stepfather had abandoned in the front yard and began road-tripping as far from Lemont as he could afford. On one occasion he stole some checks from his stepdad to fuel a trip to Florida. After he used one to buy some fancy shoes in Pensacola, a suspicious clerk called the sheriff, who picked up Luciano and called his stepdad, who made him ride a bus back to Lemont barefoot. When Luciano was nineteen, an acquaintance recently released from prison taught him how to be a short-range con artist. He’d take a twenty-dollar bill and buy something for a dollar at a gas station. After getting his change, he would say, “Know what, buddy? I didn’t want to break that twenty. If I give you a five and five singles back can you give me a ten?” But Luciano would hand a five and four singles to the attendant, who would pass him the ten, then look at him and say, “You only gave me nine.” That’s when Luciano would respond, “Sorry about that. You know, I might as well just take back the twenty. You got nine, here’s another dollar which makes that ten and here’s another ten, so can I just get back my twenty?” By the time he was done confusing the attendant, Luciano would have an extra ten dollars.

  Change raising was an ideal con for Luciano. It allowed him to make money on the road by using his natural charms. He was laid-back and funny, impossi
ble not to like even though he was always on the make, whether it was fast money or women. With his high self-confidence, he began ranging farther afield, and to fuel his travels he graduated to paper hanging. He’d pull into a town, establish a residence and a checking account under a false name, and embark on a shopping spree. After a week or two, he’d return the goods for cash. By the time the checks bounced he’d be in the next state, on to the next scam.

  It was during a ramble into Texas in the late sixties that he met Malinda Williams. She was a dark-haired beauty of seventeen who was waiting tables at a diner in Dallas. A country girl who’d grown up in the small town of Valley View, she’d moved to the city after her father got a job as a Dallas police officer. She’d been raised by conservative, evangelical parents, and was just beginning to taste her independence right at the time that half her generation needed little more excuse than rumors of a party six states away to leave home. Luciano regaled her with tales of the big city and his travels across the country, and within days she’d quit her job and joined him on the paper-hanging trail. Truth was, parts of Malinda were just as wild and unhinged as Luciano. Neither of them knew it then, but she suffered from bipolar disorder, and for the first few years there were a lot of highs. The couple latched on to the hippie movement, following the sun to places like southern California and Florida, then eventually gravitated back to Illinois and settled down in the Chicago suburb of Schaumburg, where Luciano worked various jobs in construction with his brother Richard. At some point, presumably either to avoid the draft or the law, Luciano changed his last name to his wife’s—Williams. Whatever his motivation for the name change, in March of 1972 his draft number indeed came up and Uncle Sam found him. He was briefly stationed in Texas at Fort Bliss, but according to his military records he struck his commanding officer shortly after discovering that the army planned to ship him off to Vietnam. He spent the rest of his service, 533 days, in Fort Leavenworth. He was there on Thanksgiving Day, 1972, when Art junior was born.