After taking control of the Spanish gang's territory, Hardy had grander plans than just becoming a prominent gangster in Los Angeles. The gang era of the thirties to the fifties was a golden age, with many powerful figures wielding significant influence. However, as government crackdowns intensified, the gang's momentum waned, and many of these leaders were either imprisoned or killed. Hardy wasn't interested in fleeting glory.
Understanding the social and economic changes to come, Hardy knew there were better opportunities than a life in the underworld. He decided to keep a low profile and avoid the limelight, while letting Bill take charge of the gang operations. This strategy was about preserving his identity and preparing for legitimate business ventures.
Siegel, observing Hardy's intentions, asked, "Are you looking to follow my example and stay behind the scenes?"
"Essentially," Hardy confirmed.
"Do you trust your brother?" Siegel inquired.
"I do," Hardy replied.
Siegel pondered for a moment before agreeing. "Very well, I'll inform Fred about you. You'll be able to cooperate with him in the future."
"Thank you, Mr. Siegel," Hardy said.
Siegel responded, "Don't thank me. Your achievements are the result of your own hard work. Come with me; I want to show you my vision for this place."
As they walked through the Flamingo Casino construction site, Siegel passionately described his plans for the casino, which he treated as a work of art. Hardy admired Siegel's dedication, noting how meticulously he oversaw every detail, from the building's structure to the decor.
By the small river that had been dug to attract mountain water, Siegel expressed his frustrations about insufficient funds. He had invested $1.3 million of his own money, with other shareholders contributing $2.4 million, but he needed at least another $4 million to complete the project.
Hardy mentioned, "After taking over the Spanish gang's territory, our annual profit is about $450,000, not including drug-related activities."
Siegel did some quick calculations and noted that Hardy's share, at 40%, was only $180,000—a modest sum compared to the project's needs. However, Hardy also mentioned a new venture involving slot machines and pinball machines placed in bars and convenience stores, which could bring in around $300,000 annually.
Siegel saw potential in this additional revenue and promised to call in some favors to help with any potential police issues related to the slot machines.
Over the next two days, Siegel and Hardy continued their discussions, moving from a restaurant to a bar. Siegel lamented the absence of his partner, Virginia Hill, who had left for New York. Despite this, he introduced Hardy to local officials and helped establish connections for future endeavors.
Returning to Los Angeles, Hardy convened a meeting with his team at the security company. Bill and the others were thrilled to hear that Hardy was ready to formally establish a gang.
"It's good news, indeed," Hardy said with a smile. "I'm planning to formally form a gang, but Bill will take the lead."
Bill was initially surprised. "Boss, you've built all of this. Why make me the leader?"
Hardy explained, "I intend to separate our business into legitimate enterprises and gang activities. For the formal businesses like security, film, and economic companies, I'll need a legal identity. The gang side will be under Bill's leadership."
Bill understood, equating his role to that of a CEO with Hardy as the chairman. Hardy's strategy allowed him to maintain a clean image while still leveraging the gang's power.
With Hardy's decision, the "Red Dani" gang was rebranded as the "Red Bill" gang, with Bill as the new leader. The team was reorganized, with roles assigned to various members, while Hardy and his key personnel remained focused on legitimate business ventures.
The slot machine and pinball machine business flourished, becoming a significant source of revenue. Hardy planned to discuss a new business opportunity with Fred, aiming to expand their operations further.
As Hardy prepared for his meeting with Fred, the transformation of the Red Bill gang and the growth of their legitimate businesses marked a new chapter in Hardy's empire.