PDF Summary:The King of Diamonds, by Rena Pederson

Between 1960 and 1970, a sophisticated burglar known as the King of Diamonds executed a series of high-profile jewelry thefts in Dallas, targeting wealthy homes and hotel rooms during society events. In The King of Diamonds, Rena Pederson examines this unsolved case, exploring the burglar's methods, the investigation's focus on suspects John Higginbotham and Jasper Kirksmith, and the social context that enabled the crimes.

Pederson describes how Dallas's stark wealth divide and its connections to organized crime created an environment where such crimes could flourish. She discusses the obstacles that hindered the investigation, including the influence of powerful residents and the city's criminal underworld. The book also explores how certain individuals may have exploited their social positions to facilitate the thefts or dispose of stolen goods.

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Dallas was also a city of upper crust and unsavory characters. The lower world had dance clubs, casinos, and grimy bars. The city was home to those involved in sex trafficking, criminal gangs, and spies. Gambling was central to Dallas, earning it the nickname "Midwestern Monte Carlo." In the 1960s, $10 million were illegally wagered each week. Organized crime was also present, with Carlos Marcello, a Mafia leader from New Orleans, controlling the state's slot machine operations, while most of the machines were made by the Chicago Outfit.

Benny Binion and Dallas’s Gambling Reputation

Dallas’s reputation as a gambling hub was established decades earlier by Benny Binion, a local gambling boss who ran a $500,000-a-month operation in the 1940s. Binion’s connections to national crime syndicates and his ability to bribe local officials made Dallas an attractive location for illegal gambling activities. Binion’s influence extended beyond Dallas, as he later moved to Las Vegas and played a significant role in shaping the city’s gambling industry. The infrastructure and networks established by figures like Binion likely contributed to the proliferation of illegal gambling and Mafia-linked slot machine operations in Dallas.

Pederson goes on to explain that several factors hindered the inquiry.

The Enabling Environment: Crime and Dallas's Social Scene

Pederson explains that Dallas's social scene was intertwined with betting and criminal organizations. Many businessmen invested in Las Vegas casinos, and the FBI believed the Mafia was taking more than a million dollars from daily casino profits. The Dallas Morning News voiced worries that the city's upper class was socializing with criminals.

In a 1972 speech, Detective McCaghren cautioned that minor wagers placed at places like gas stations, barbershops, or grocery stores ended up with organized crime networks. He reported that there had been five murders by organized crime in the previous five months, including one tied to a battle for control of the heroin trade. He explained that combating the growing presence of organized crime was becoming more difficult, as criminal elements used lawful fronts to conceal their activities. Local officials labeled his speech as a publicity stunt.

Layoff Betting

Minor wagers at gas stations or barbershops ended up with organized crime networks through a process called “layoff betting.” Local “writers” would take bets from customers and periodically pool the money with other writers. These pooled funds would then be passed up the chain to higher-level bookmakers, who would further consolidate the bets. At the top of the network, syndicate-controlled betting banks would receive the accumulated funds, effectively channeling the money from small, local wagers into the hands of organized crime.

Pederson suggests that some people may have exploited their connections to help the "Diamond King." She also describes organized crime groups within the city involved in stealing and fencing jewels.

Opportunities for Exploitation

Pederson proposes that Lambert may have exploited her access to wealthy homes to orchestrate burglaries. Lambert was a high-profile socialite and philanthropist known for her lavish lifestyle and her ability to charm and manipulate people. Some people suspected her of being the King of Diamonds due to her access to the homes of wealthy people, her frequent need for money, and her cunning nature. She was frequently at the victims' residences shortly before the burglaries occurred. However, there is no concrete evidence linking her to the crimes, and the Lamberts themselves were victims of a 1958 break-in.

Elite Deviance

Criminologists have a term for the kind of lawbreaking that Pederson suspects Lambert of: “elite deviance.” This refers to criminal or unethical behavior committed by individuals or groups in positions of power and influence. Elite deviance can include white-collar crimes like fraud, embezzlement, and corruption, but it can also involve more conventional crimes like theft, assault, or even murder. The key factor is that the perpetrators use their social status, wealth, or connections to avoid detection, prosecution, or punishment. In Lambert’s case, her public image as a philanthropist and socialite may have served as a shield against suspicion, even as she potentially engaged in criminal activities behind the scenes.

Pederson also writes that Ramsden could have exploited his relationships to sell jewelry discreetly. Ramsden headed the fine jewelry division of Neiman Marcus and was part of the Dallas elite. He was suspected of being the King of Diamonds due to his knowledge of the top jewelry owners, having sold many of their pieces, and his ability to recognize counterfeits from a distance. He was also known to be connected to criminals and gamblers. Ramsden was an expert at selling, persuading customers that the jewelry's value would increase and that they'd lose a fantastic chance if they didn't purchase immediately. He discreetly sold jewelry on behalf of his clients, including movie stars like Joan Crawford, and was famous for going above and beyond to close deals.

Discretion Is Key in Luxury Sales

In The Luxury Strategy, Jean-Noël Kapferer and Vincent Bastien argue that knowing the top jewelry owners and selling jewelry discreetly are hallmarks of a good luxury salesperson. They explain that luxury salespeople should know their clients’ tastes and collections in detail, guarantee discretion, and organize confidential transactions. They also note that luxury salespeople should help clients buy, exchange, or part with exceptional pieces. This suggests that Ramsden’s behavior was normal for a luxury salesperson, not that he was the King of Diamonds.

Criminal Networks and Fencing Operations

Pederson writes that crime syndicates in Dallas engaged in stealing jewels and fencing operations. The Green Gang was the largest crime organization in North Texas, engaging in breaking into safes, smuggling drugs, robbing, and committing burglaries. They recruited prisoners after their release. Another criminal organization active in the area was the Dixie Mafia, which was also involved in jewel thefts.

The Mafia had a presence in Dallas, led by Joseph Civello. Civello had a strong alliance with Carlos Marcello, the Mafia leader in New Orleans. Civello passed away in 1970, and his long-time lieutenant, Joe Campisi, was seen as his successor. Marcello ran a Dallas-based operation for selling pilfered items.

The Structure of Organized Crime in the South

Criminologists have long studied the structure and operations of organized crime in the United States. In the Encyclopedia of Organized Crime in the United States, Robert J. Kelly and his co-authors provide a comprehensive overview of the major criminal organizations that have operated in the country, including the Green Gang, the Dixie Mafia, and the Civello–Marcello connection. The Green Gang, as described by Kelly, was a loosely organized group of criminals who specialized in safecracking, truck hijacking, and other forms of theft. They were known for their willingness to recruit new members from the ranks of recently released prisoners, which allowed them to maintain a steady supply of skilled criminals. The Dixie Mafia, on the other hand, was a more sophisticated organization that operated across multiple states in the South. They were involved in a wide range of criminal activities, including drug trafficking, gambling, and prostitution. The Civello–Marcello connection represents the highest level of organized crime in the region. Joseph Civello, the head of the Dallas Mafia, had a close relationship with Carlos Marcello, the boss of the New Orleans Mafia. This alliance allowed them to coordinate their criminal activities and expand their influence across the South.

Obstacles to the Investigation

Pederson describes two obstacles to the inquiry. First, it was hindered by the influence of powerful people in the Highland Park area. The chief of police refused to authorize a warrant to search Higginbotham's house, fearing the embarrassment it would cause to the upper echelon of the city if the investigation turned up nothing. It made sense that the police leader was cautious, given the Fourth Amendment’s protection against unreasonable searches and seizures. However, law enforcement tracked the robber to Higginbotham's home and possessed details about the stolen jewels, so a search warrant would likely have been granted. The police chief would have opposed it. The investigation came to a halt at Higginbotham’s door.

The Likelihood of Obtaining a Search Warrant

Pederson’s inference that a warrant would have been granted is legally plausible. Empirical studies show that magistrates rarely deny search-warrant applications. In his treatise on search and seizure, Wayne LaFave notes that magistrates approve 98% of warrant requests. He explains that magistrates are more likely to grant warrants when officers can identify specific stolen property they expect to find at a suspect’s residence. In Higginbotham’s case, law enforcement had tracked the robber to his home and possessed details about the stolen jewels, making it likely that a search warrant would have been granted.

Second, the investigation was complicated by a dangerous criminal group called the Dixie Mob, who committed theft and murder in the South and Southwest. They were known for hijacking trucks, robbing bars, selling drugs, and committing jewel thefts.

(Shortform note: The term “Dixie Mob” refers to a loosely organized network of criminals who worked together when it was convenient. Unlike traditional crime families, the Dixie Mob didn’t have a single leader or a strict hierarchy. Instead, members formed temporary alliances to commit crimes like theft, drug trafficking, and murder.)