Sept. 18, 2023

194: The History of the Dixie Mafia

194: The History of the Dixie Mafia

By the 1960s, organized crime gangs were well and truly already becoming a presence across the north of the United States, as underworld figures fought for sole control over highly lucrative gambling, illegal alcohol, and prostitution rings. Down...

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By the 1960s, organized crime gangs were well and truly already becoming a presence across the north of the United States, as underworld figures fought for sole control over highly lucrative gambling, illegal alcohol, and prostitution rings. Down south, things were done a slightly different way. But even though one criminal network in particular didn’t have a strict code, this didn’t make them any less dangerous. Based out of Biloxi, MI, they soon monopolized the control of many illicit activities across numerous states where big profits could be made, but only by those willing to be uncompromisingly ruthless. This is the history of the Dixie Mafia.

Hosted and produced by Erica Kelley
Researched and written by Gemma Harris
Original Graphic Art by Coley Horner
Original Music by Rob Harrison of Gamma Radio
Edited & Mixed by Brandon Schexnayder & Erica Kelley

Sources: https://www.southernfriedtruecrime.com/the-dixie-mafia

Suggested reading:
‘Wicked Phenix City’ by Faith Serafin, ‘Last Gangster in Austin’ by Jesse Sublett, ‘The Twelfth of August: The Story of Buford Pusser’ by W.R. Morris, and of course, ‘Mississippi Mud, Southern Justice, and the Dixie Mafia’ by Edward Humes.


This show is part of the Spreaker Prime Network, if you are interested in advertising on this podcast, contact us at https://www.spreaker.com/show/2975465/advertisement
WEBVTT

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Southern Fried true crime covers cases that
are not suitable for young listeners, and

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there may also be some explicit language
used. Listener discretion is advised. Just

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over three years ago, I released
episode ninety one, The Sherry Murders,

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The Dixie Mafia and Corruption in Biloxi. The way organized crime in Biloxi and

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the dangerous and powerful Dixie Mafia in
particular began and went on to operate,

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played a fundamental role in the story
of the nineteen eighty seven murderers of Vincent

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Sherry and his wife Margaret. Throughout
the episode, I sprinkled information about the

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house who's and whys of relevant Dixie
Mafia activities and corruption to give an overall

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sociohistorical context and essence of place and
time. But there is much more to

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this criminal enterprise's sortid in seedy history
Aside from the Sherry case. I've been

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inundated with request first Mandelent episode on
the Dixie Mafia, so this one,

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while not exhaustive, is solely dedicated
to exploring the profound impact the network's operations

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had on life and the law in
the South. Welcome to Bonus Episode one

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ninety four, The History of the
Dixie Mafia. If you're not familiar with

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the story of the Sherry Murders and
the Dixie Mafia's involvement in that case,

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I do recommend that you go back
and listen to the episode. While there's

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much discussion in Southern folklore about how
exactly and when the Dixie Mafia was born,

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one theory has it that the group
emerged out of the Appalachian States,

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taking rude in Biloxi, Mississippi,
before spreading across the Southeast United States throughout

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the mid late twentieth century. Despite
their nickname of the Cornbread Cosa Nostra,

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Dixie Mafia didn't operate like traditional Italian
and Eastern European crime families in the South.

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Common sense, more than anything,
was the catalyst for this transient,

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loosely organized network of corrupt businessmen,
racketeers, extortionists, money launderers, contract

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killers, bank robbers, bootleggers,
petty thieves, pimps, and drug distributors

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to come together and work towards a
common goal, if an nefarious goal.

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There was no formal, specific figure
head running the show for this motley crew

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of opportunists. It was simply a
case of whoever held the most money held

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the power. There was no initiation
or strict code to follow, just one

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rule, thou shalt not snitch to
the cops. In the early mid twentieth

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century, the summer resort destination of
Biloxi was a draw card for those wanting

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to indulge in illegal gambling and prostitution
along the Gulf Coast. Prohibition had only

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made the city even more alluring to
those with a penchant for vice, as

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bootleggers set up shop to cash in
and do deals with corrupt city officials.

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For these folks, Mississippi was the
best place to do it. Alcohol had

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been banned across the state since nineteen
oh eight, well before the Eighteenth Amendment

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came into effect in nineteen twenty.
Prohibition ended throughout much of the country in

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nineteen thirty three, however it remained
in Mississippi, and yet it was no

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deterrent to those who profited from running
illegal drinking dens. Biloxi's reputation is a

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place where anything could be bought and
sold for a price soon preceded itself.

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But by the nineteen fifties, the
illegal yet open gambling that had been taking

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place just a decade earlier was no
longer. Slot machines began disappearing from the

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city, and in nineteen fifty four, gaming was banned at the Broadwater Beach

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Resort. According to the FBI,
the beginnings of the Dixie Mafia were starting

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to take shape, with Biloxi as
its home base. As the city became

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a hotbed of organized crime. The
Dixie Mafia's operations expanded across Mississippi to Hattiesburg,

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Jackson, and Corinth, also taking
root in Dallas, Texas, Baton

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Rouge, Louisiana, Little Rock,
Arkansas, Atlanta, Georgia, Tulsa,

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Oklahoma, and Birmingham in Phoenix City, Alabama. The group was savvy,

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though they knew they couldn't conduct all
of their business dealings in big cities.

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As an intricate network of underworld connections
were made all across the South. The

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Dixie Mafia knew it was sometimes better
to do business and remote towns where law

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enforcement wouldn't think to look or was
too under resourced to do so. Towns

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situated on state lines, like Texarkana
on the Texas Arkansas border were ideal meeting

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points for members who had to travel. Communications wise, members weren't personally acquainted

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with many others in the network,
unless it was on a need to know

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basis in the course of carrying out
a specific job, and if you wanted

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in on the action. Prisons and
penitent trees were a popular recruitment method.

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It wasn't until nineteen sixty six that
Mississippi ended statewide prohibition, though any reprieve

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for illegal alcohol distribution was brief.
The tourist trade on the Gulf Coast was

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thriving. Visitors from the North came
to seek out all sorts of overage fund

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and there were those who would turn
their hand to anything to meet demand if

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it meant making money. But it
was high stakes being involved with the Dixie

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Mafia on both sides of the law. Beginning around the mid twentieth century,

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dozens of contract killings across the South
were committed, brutal executions designed to eliminate

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enemies intent on bringing down the Dixie
Mafia or exact revenge on former members.

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Anyone cooperating with the police or who
planned to testify in court for the prosecution

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had a target on their back.
For these people, it was only a

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matter of time before they fell victim
to dramatic and often sadistic execution. The

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killings, often public, were a
warning of the consequences on offer for even

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entertaining the thought of crossing the Dixie
Mafia. I'm going to pause now for

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a short commercial break. As early
as nineteen fifty four, Phoenix City lawyer

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and former Alabama State Senator Albert Patterson
was assassinated during his bid to run for

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state Attorney General. Albert worked doggedly
and very publicly a stamp out corruption,

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and the place known as the original
sin City. Three city officials were accused

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of Albert's murder, but it was
only Russell County Chief Deputy Sheriff Albert Fuller

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who was sent to prison, but
he was released after only ten years.

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In early August nineteen sixty seven,
a high profile attack in Jackson County,

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Georgia shocked the community of Jefferson.
Local dyer and vocal aggressive opponent of the

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Dixie Mafia, Floyd Horde, was
assassinated on a bomb rigged to the family

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car exploded. Just days later,
in Tennessee, Mcmarry County, Sheriff Beauford

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Pusser and his wife Pauline were violently
ambushed by a group of men when the

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sheriff was called out to check on
a disturbance out of town. Pauline had

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accompanied her husband as it was round
dawn and quiet. Sheriff Pusser had been

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actively working to disrupt activities conducted by
both the Dixie Mafia and the State Line

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Mob, with whom the Dixie Mafia
was said to have links. The sheriff

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was severely injured in the shooting,
but Pauline was tragically killed four months later.

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In December nineteen sixty seven, Biloxie
bookmaker Harry Bennett was murdered in a

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public hit outside his apartment building.
Harry was due to testify against some of

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the Dixie Mafia when he was killed. Five men were convicted and imprisoned for

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the murder of Floyd Horde, but
their sentences were later commuted, and while

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Sheriff Pusser was certain he knew who
had killed his wife, no one was

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ever brought to The violence continued unabated. In the winter of nineteen sixty nine,

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an armed Dixie Mafia gang of around
five men ambushed a group of carnival

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workers camping near Covington, Louisiana,
and what became known as the Gypsy camp

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murder. The group rounded up the
campers, tied them to trees, and

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robbed them of thousands of dollars in
cash and jewelry. When fortune teller Margie

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George refused to cooperate, one man
struck her in the head with a hatchet

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and another man shot her. One
of the prime suspects was said to be

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an imposing Dixie Mafia figure named Bill
Club, an experienced bank ropper and contract

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killer from Texarkana, but a potential
witness named Bobby Gilgwyn turned up dead before

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he could testify against anyone. Ultimately, no one was prosecuted for the crime,

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and the case remains unsolved. A
storm of a different kind reached Havoc

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Dot August when Hurricane Camille decimated the
Gulf coast. The Chips were temporary down

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for Biloxi as it worked to rebuild, but the Dixie Mafia saw this as

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a golden opportunity to take greater control
of the city along what was known as

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the Strip. Illegal clubs were already
part of the Biloxi scenery. Prostitution and

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pornography rings went hand in hand.
Legitimate motels and nightclubs provided a front for

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illegal gambling dens brothels, and strip
clubs for aspiring Underworld figures. It was

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like moths to aflame. Their above
board business assets, including used carlots and

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junkyards, provided a front for what
went on behind the scenes. Fueled by

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greed, Multiple key players worked together
to maintain operations. One well known kingpin

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was affluent, well connected, and
trusted Biloxi Club owner Mike Gillitz Junior,

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known simply to many as Mister Mike. While many of his rivals illegal business

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ventures were shut down, Mike always
seemed to be free to continue trading.

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Expanding a crow minal organization by training
up loyal proteges is par for the course

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in the Underworld, and Mike Gilich
found this in Kirksey Knicks. Unlike Mike,

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who came from a poor immigrant background, Kirksey, who was highly intelligent,

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held from a privileged and educated Oklahoma
family. You may remember both Mike

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and Kirksey from episode ninety one.
Despite having the world as his oyster,

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Kirksey instead chose a life of crime. He was said to be a suspect

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and the murders of both Harry Bennett
and Pauline Pusser back in nineteen sixty seven

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and the Gipsy Camp murder in nineteen
sixty nine. In the spring of nineteen

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seventy one, Kirkzy Knicks and his
associates killed wealthy New Orleans grocery business executive

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Frek Corso and a robbery gone wrong. Kirksey was convicted for murder and was

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sent away to serve a life sentence
in Angola Prison, but he kept his

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hand in with the Dixie Mafia operations, and the years to come, Kirksey

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would be convicted of running a highly
profitable scam from within prison, which netted

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him hundreds of thousands of dollars.
One case attributed to the Dixie Mafia,

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which remained unsolved for decades, was
the horrific triple murder of Bryce Durham,

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his wife Virginia, and their eighteen
year old son Bobby, in the town

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of Boone, North Carolina, in
nineteen seventy two, in the midst of

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a February snowstorm. The victims strangled
and drowned bodies were found laying in their

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bathtub. Watauga County Sheriff's office was
competent the slayings were a hit, but

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the unidentified killer or killers remained at
large despite over one hundred law enforcement agencies

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across the South doing their best to
stamp out Dixie Mafia activity. It was

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like a game of whac amole,
but a big part of the problem came

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from within police ranks themselves, powerful
players wanting to maintain the status quo at

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whatever cost, needed allies where it
mattered. The Dixie Mafia were known to

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incentivize police and politicians to look the
other way, offering attractive financial benefits.

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Cultivating close relationships with senior and not
so senior police figures in the South was

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a priority to keep underworld business turning
over, keep your friends close, and

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all that. In Biloxi, the
much needed friend and high places was Leroy

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Hobbs, former Gulfport Police Chief and
Sheriff of Harrison County, who came into

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office in nineteen seventy one. Sheriff
Hobbs was exactly the kind of guy the

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Dixie Mafia needed and the citizens of
Harrison County thought they needed to. Leroy

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was charismatic, with the gift of
gab and outspoken about his campaign to expose

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corruption in Biloxi, but as quickly
as he was appointed, the lure of

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getting chummy with the Dixie Mafia,
who paid for the authorities to let things

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slide, proved too great for the
sheriff. Leroy was soon taking bribes from

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owners of illegal gambling dens and strip
clubs. I'm going to pause now for

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a final commercial. By the late
seventies and early eighties, Sheriff Leroy Hobbes

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and feared Dixie Mafia figures, including
club owner David DJ Venus the Third and

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Jim Blackwell, were virtually untouchable as
they enjoyed the fruits of their deeply corrupt

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endeavors. Leroy and DJ were tight. Their frequents in public socializing after hours

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raised many an eyebrow, but the
men seemed to have no concerns about how

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blurred the lines appeared in their professional
relationship. Whatever efforts the upstanding and honorable

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men and women of Harrison County law
enforcement went to at grassroots level, it

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made little, if any difference.
While Leroy Hobbes was in charge. In

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nineteen eighty two, DJ Venus and
Jim Blackwell had a rival named Dewey Deangelou

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viciously mutilated and murdered. But Leroy
saw to it that any police inquiries were

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shut down in order to steer suspicion
away from the suspects and protect their relationship.

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By now, organized crime was so
ameshed with the Harrison County Sheriff's Office

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that the FBI was knocking on the
door. Private investigator Rux Armistead had long

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also been pursuing those at the top
of the Dixie Mafia food chain. In

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nineteen eighty three, things had deteriorated
to such an extent with the Harris County

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Sheriff's Office that the FBI designated the
entire agency as a criminal enterprise. Special

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Agents Royce Hicknighte and Keith Bell spearheaded
the investigation into local corruption using sophisticated means.

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In a sting that June, an
FBI informant set up DJ Venus to

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bribe Leroy Hobbes into facilitating a massive
cocaine drop. It went off without a

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hitch, and DJ Leroy, Jim
Blackwell, and other Dixie Mafia members were

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arrested. Agent Bell later described the
extent of the corruption in Harrison County by

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saying it was out of control.
They were doing anything and everything illegal to

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here for money. The sheriff and
the officers loyal to Sheriff Hobbs would release

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prisoners from the county jail, safeguard
drugs shipments, and hide fugitives anything you

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can think of they were involved in. Local officers wanting to eradicate the stench

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of corruption from their workplace, were
key to assisting the FBI investigation. At

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the same time, a clampdown began
on strip joints, which soon began closing.

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DJ Venus, Jim Blackwell, and
Leroy Hobbs played guilty to charges brought

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against them in the steing. DJ
received fifteen years in prison and Jim and

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Leroy each received twenty years, the
judge telling the disgraced sheriff quote, you

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sold your soul to the devil.
But Leroy Hobbs only ended up serving twelve

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years. By the mid nineteen eighties, some Biloxi business leaders hoped that casinos

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would boost the local economy. For
the Dixie Mafia, this would be a

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gold mine, but other citizens opposed
the move, concerned about incouraging more organized

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crime. Operations had evolved for the
Dixie Mafia all across the South, with

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sophisticated vehicle theftbrings, selling stolen goods
and credit card in real estate fraud now

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stock in trade. At the same
time, in the Appalachian coal fields,

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a massive multi jurisdictional enterprise involving fraudulent
leases and mining equipment theft was also operating.

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Miami Mobile, Alabama, Fort Worth, Texas, Memphis, Tennessee,

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and the Carolinas were all now home
to the flourishing Dixie Mafia. Law enforcement

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from New Orleans to Dallas was doing
its best to gather intelligence to shut down

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operations, but it was like trying
to put out a wildfire with a leaky

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hose with many of the other firefighters
who were supposedly helping you lighting the fires

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themselves. The FEDS and local law
enforcement hoped the very public downfall of Leroy

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Hobbes and the convictions of DJ Venus
and Jim Blackwell were the beginning of the

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end for the Dixie Mafia, well
in Harrison County at least, but one

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final shocking event would prove the fight
wasn't over, and it wouldn't be for

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some years. As I mentioned earlier, the Dixie Mafia were key players in

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the nineteen eighty seven double murder of
Circuit court judge and former attorney Vincent Sherry

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and his wife and Biloxi mayoral candidate, Margaret. The couple was brutally murdered

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in their home. Vincent's body was
discovered by his close friend and former business

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partner, attorney Pete Hallett, who
would go on to become mayor of Biloxi

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two years later. Judge Sherry had
formerly represented prominent club owner Mike Gilitch or

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Mister Mike. I'm not going to
repeat all the ins and outs of the

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case here, suffice it to say
that when it came to eventual convictions related

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to the Sherry case in both nineteen
ninety one and later in nineteen ninety six,

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kirksey Nicks, Mike Gillich, and
Pete Hallett, along with others,

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all did prison time, but not
on standalone murder charges. To find out

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how all that unfolded and why,
you'll need to go listen to the episode.

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By the late nineties, the face
of Biloxi was changing, with the

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closure of illegal clubs in full swing
following the legalization of gambling in nineteen ninety.

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Public officials knew they were under scrutiny
to not only clean up the city,

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but purged the once rotten cores of
any agencies which had been tainted by

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corruption. It was a similar story
over in Louisiana, where the heat was

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being turned up on former Governor Edwin
Edwards, who'd held a record four terms

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in office between nineteen seventy two and
nineteen ninety six, despite beating two corruption

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trials and twenty two state and federal
grand juries and evading conviction over a conspiracy

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to sell construction permits for hospitals and
nursing homes. In two thousand and one,

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the hugely popular Edwards was sentenced to
ten years in prison for racketeering and

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extortion. It had been proven that
during his last term, Edwards had rigged

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Louisiana's riverboat casino licensing process. It's
not clear whether the former governor was ever

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explicitly associated with the Dixie Mafia,
but it gives you an overall idea of

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how ingrained corruption was at the highest
levels of Southern politics over such an extended

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period. With numerous Dixie Mafia figures
finally imprisoned for considerable stretches by the two

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thousands, it appeared the head of
the snake was finally cut off. More

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sophisticated intelligence gathering in conjunction with sentencing
and PAROLEA form and widespread community support saw

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the Dixie Mafia become a shadow of
its former self. And here's a nice

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PostScript to prove it. Over forty
five years after the triple murder of the

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Durham family in two nineteen, a
man named Shane Burt contact of the Sheriff's

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office in White County, Georgia.
Shane was researching the life of his late

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father, convicted killer Billy Sunday Bert. Billy had died two years earlier in

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prison, where he was doing life
for three murders from the nineteen seventies.

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He was said to be responsible for
as many as fifty contract killings. Shane

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explained that his father revealed during a
previous visit that he had killed three people

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in the North Carolina Mountains during a
heavy snowstorm. Of the three other suspects

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in the case, only one was
still alive, eighty one year old Billy

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Wayne Davis, who was sentenced to
life in Georgia for a nineteen seventy one

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murder in Douglas County. It wasn't
until twenty twenty two that that case was

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announced assolved after Davis admitted to being
the getaway driver. Beyond confirmation that the

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murders were a hit, it wasn't
revealed why they were committed or whether Davis

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would be charged. Nevertheless, it's
proof that it's never too late for anyone

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with information to come forward. Only
Tom will tell whether the corruption, which

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historically plagued many cities and counties across
the South, is something to remain concerned

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about. While many of the key
players in this story have since passed away,

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00:21:06.160 --> 00:21:10.720
either from natural causes or as an
occupational hazard, we're all familiar with

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the adage that absolute power corrupts absolutely
Southern Fried True Crime is hosted and produced

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00:21:22.400 --> 00:21:26.559
by me Erica Kelly. Today's episode
was researched and written by Jimma Harris.

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00:21:26.960 --> 00:21:30.480
Southern Frid's original music is by Rob
Harrison of Gamma Radio and the original graphic

249
00:21:30.599 --> 00:21:36.039
art is by Coley Horner. If
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