I-Team Report: The Notorious Madam Rose Part II

November 24, 2010 (CHICAGO)

Rose Laws was in practice the "Madam of the Gold Coast" and she still is by reputation -- a 30-year reputation she carries with pride.

After pleading guilty in a federal racketeering case and serving nearly two years in prison, Chicago's most notorious madam since the Everleigh sisters did her first-ever interview with the ABC7 I-Team.

"Where I became a madam was, like I walked into Johnny's one night, and the bar was packed with people, and this guy who owned a bakery was there, and he said, 'how much would it take for you to go to bed with me?" said Laws.

It was the late 1960s at Johnny's 12th Street Rag in Berwyn where Laws worked as a barmaid. But could make much more money booking prostitutes.

"That was when I realized I was becoming an agent for call girls," said Laws.

Her career as a madam took off as she befriended some of Chicago's best known Outfit bosses.

"I drove straight to Joey Aiuppa's house," said Laws.

By Rose Laws' description, the late Joey "Doves" Aiuppa - Chicago's top mobster in the 60s and 70s - became her personal protector. And she had other guardian angels with connections.

"Tony Accardo helped me out.What was in it for them? They never asked for nothing," said Rose Laws.

That would be the late Anthony "Joe Batters" Accardo, consigliere of the Chicago Outfit. But in 30 years of deploying thousands of call girls for millions of dollars, Laws claims she never once paid off the mob, police, prosecutors or judges.

"They were my friends," said Laws. Did you give them discounts? No. The FBI don't believe me, so how can I expect you to believe me. When I got busted or indicted by the FBI they were standing there saying we will give you protection if you testify against the mob. Why would I do that? They never done nothing wrong to me."

Rose Laws says one customer gave her a west suburban motel, where she and her five children lived and some of her customers played. Laws seemed so untouchable that once a year she would throw a lavish party for her girls and clients.

"Any mob figure that was well known was there, and 13 judges, federal judges," said Laws.

With photos - and a personal black book - she did have the goods on some of Chicago's most prominent names.

"If you had all of these judges as customers though, why couldn't they help you?" Chuck Goudie asked Laws. "They couldn't mix their name with mine," she replied. Descretion also demanded by most businessmen, she said, among them near north insurance tycoon Mickey Segal.

GOUDIE: "Good client?
LAWS: Yes.
GOUDIE: Rich client?
LAWS: He was one of my best clients. He was a good guy."

Federal court records show Segal diverted "large sums" of insurance funds on "very expensive call girls" among other indulgences. He's now in federal prison for racketeering and mail fraud.

Segal's attorney told the I-Team, "putting Ms. Laws' allegations on the air would be unfair to Mr. Segal, hurtful to his family, and possibly prejudicial to his efforts to obtain release."

It was the same story with Laws' political clients including city, state and U.S. elected officials. Among them, she says, is a now-deceased Chicago politician who on two occasions had an aide call in the reservation.

"He wants the biggest girl you got," said Rose referring to the request.

And while they were together, the well-known leader's bodyguards protected the doors.

"When that was over the girl came out of the room crying: 'Look what he did to my clothes! Look what he did! He tore up my long-line bra, he tore it all to pieces, and my pantyhose, he tore up my stockings, he tore up my panties, he tore up everything.' I said how did he tear them up? She said, 'putting them on him! They were too small for him,'" said Laws.

Laws says that the FBI seized her black book during their investigation and never returned it. However, she claims copies of it were sold by law enforcement to her former competitors.

Is there currently a Gold Coast madam working Chicago? No, says Rose Laws, there are several.

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