In 1987, Hanley, Bitondo and other high-ranking officials of the N.Y.C. District Council of Carpenters were indicted on 79 counts of labor racketeering, including extortion, bribery, and bid rigging.[2][3] District Attorney (DA) Robert M. Morgenthau claimed that contractors that cooperated with the DA's investigation claimed they paid over $100,000 in extortion payments, but DA Morgenthau explained that the figure documented less than 10% of the money paid to the gangsters during the investigation. Gambino associate turned informant Dominick LoFaro wore a covert listening device to gather information on the unions and gangsters, and provided information to the New York State Organized Crime Task Force leading to the "bugging" of the offices of Local 608 at 1650 Broadway and of Local 257 at 157 East 25th Street.
LoFaro also discussed Hanley's ties to other organized crime figures, including Bartholomew "Bobby" Boriello, Albert "Kid Blast" Gallo, Anthony "Tony" Scotto and Anthony "Sonny" Ciccone. Hanley would receive a 4-year prison sentence to lesser charges of bribe giving, and would be banned from future union activities. Hanley earned an early release from prison and received a no-show work release job at Casale Jewelry on Court Street, Brooklyn. Hanley's son William resigned from his position as President of Carpenter's Union Local 157 (which was renamed after the massive racketeering indictment) in November 2007, and the Local was placed under trusteeship, citing connections to organized crime, including prevailing upon a contractor to hire a no-work man[clarification needed] named Joseph Vecchiarello.
Goldstock, Ronald, Martin Marcus and II Thacher. Corruption and Racketeering in the New York City Construction Industry: Final Report of the New York State Organized Crime Task Force. New York: NYU Press, 1990. ISBN0-8147-3034-5
Jacobs, James B., Coleen Friel and Robert Radick. Gotham Unbound: How New York City Was Liberated from the Grip of Organized Crime. New York: NYU Press, 2001. ISBN0-8147-4247-5
Jacobs, James B., Christopher Panarella and Jay Worthington. Busting the Mob: The United States Vs. Cosa Nostra. New York: NYU Press, 1994. ISBN0-8147-4230-0