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The Dixie Mafia (Part 3)

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  • The Dixie Mafia (Part 3)

    The House Assassination Committee report, footnoted below, is must reading and will reveal the influence of players in our series of articles dealing with the Dixie Mafia. Although most of the men in this report are dead some of their children, families and associates expanded to include runners and out siders.


    My first encounter with these men and their children came in 1971 when "Little Joe Marcello", entered my Metairie, LA. apartment at 1:45 A.M. in the morning and told me to get out of the bed and onto the couch, he then proceeded to have sex with my live-in girlfriend who had been partying at the Fat City, Court Jester Lounge. The next afternoon she boarded Marcello's family yacht and cruised to Grand Isle with Little Joe and Uncle Carlos. I packed my stuff and hit the bricks, things got a little too close for comfort.

    The second encounter was at Panama City, Florida in October 1981, just after a dinner "sit down" at the Foxfire Lounge on Hwy 98. At the time I was undercover for Treasury agent Bobby Sides at Panama City Toyota, acting as the right hand man to owner Lowe Smith, "Godfather of St. Andrews." The Foxfire, now the Black Angus, was considered a safe place to have meetings because it was constructed to make it impenetrable from FBI bugging devices.

    It didn't hurt that Lowe Smith married a beautiful young blonde, Debbie Spring, whose father was the FBI's supervisory agent in charge in Jacksonville, Fl. During the time period Lowe Smith, Jerry Wauburn and other associates at the Boating Center on Hwy 22 and Wewa, Florida, were involved in smuggling bales of marijuana from a way station on Big Pine Key. Jerry took the fall for the group and later died in prison.

    Before I arrived in 1981, the group had apparently somehow been involved in the January 1977, Sandy Creek smuggling case set up as an FBI sting with the help of informant Bobby Joe Vines. The whole thing went bad after the dope was delivered to the wrong location and 4 people partying that night in a Springfield bar decided they wanted some of it after learning about the drop from David Goodwin one of the smugglers.

    Harold Sims,39, Douglas Hood, 21, Sheila McAdams, 16 and Sandy McAdams,14, crashed the party and unloading of the "GunSmoke" shrimp boat. The foursome were executed by Walter Gale Steinhorst, 48, of Live Oak, Fl. who had been paid $100 by smugglers to guard the road leading into Sandy Creek.

    Their bodies were transported into a Jefferson county sinkhole where they-were dumped with concrete blocks tied to them. They were discovered by cave divers months later.

    In 1977, Leo Jones was the Florida State Attorney in the Sandy Creek case and Sister Blackmon was his assistant and girlfriend, who later became his wife. Both Jones and Sister have since been publicly accused by law enforcement officers investigating the case, as being part of a wide-ranging conspiracy to continue the cover-up.

    There have been eyewitness and published reports of Sister and Jones traveling and partying together with the Lukefahrs brothers who were among key defendants given state immunity on the murders.

    On February 25, 1978 the Tallahassee Democrat reported that then State Attorney Leo Jones was ticketed for driving 77 mph in a 55 mph zone on State Rd. 20 in Liberty County west of Tallahassee.

    At the time, Jones was driving a new 78 Lincoln belonging to the Lukefahrs Atlanta attorney, Edwin Marger. Jones also admitted accepting a ride to Louisiana in Marger's private plane and attending social events with him. After flying to Louisiana - to question Tom Lukefahr - on Marger's private plane, Leo Jones agreed to drop murder charges against the 3 Lukefahrs brothers who were Marger's clients.

    Meanwhile back to 1981 at Smith's Panama City Toyota, which was a hustle, bustle place with shell tricks and marijuana laden new cars sold by the dozens to unseen buyers, whisked away after they were loaded onto car-carrier trucks waiting in the parking lot behind the Foxfire Lounge.

    It was my first real adventure being inside a Dixie Mafia operation that included, drugs, prostitution, dealing in stolen cars, machine guns, money laundering and whispers about murders.

    Their tentacles ran deep into the Florida 14th Judicial Circuit State Attorney's office and local law enforcement. Colan Donnell, a Smith associate and dope dealer who I had known a number of years, once confided in me, asking if I knew how things were in Panama City?

    Colan then explained his walk-away from a 1982 bust for distribution and sale of cocaine, saying "Alton and Sister always took care of things for the boys." At that time former investigators from the State Attorney's office and Bay County Sheriff office were managing local strip clubs. Several investigators were directly employed by Lowe Smith, who died this year.

    Speaker of the Florida House, Alan Bense, gave the eulogy for Lowe's funeral on February 29th, 2004, at Evergreen Cemetery on Hwy 231.

  • #2
    Another fine post.
    I love St Andrews and PCB.
    I come in peace. I didnít bring artillery. But Iím pleading with you, with tears in my eyes: If you fuck with me, Iíll kill you all.

    Gen. Mattis

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    • #3
      Thank you Marco...it gets better and better the closer it gets to the end

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      • #4
        54to 455545

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