Gang-Busting U.S. Attorney in N.Y. Quits : Seen Likely to Enter Race for Either Mayor or Governor

U.S. Atty. Rudolph W. Giuliani of New York, who spearheaded investigations of organized crime, municipal corruption and insider trading, resigned today amid speculation that he may run for mayor of New York City or governor of New York state.

Atty. Gen. Dick Thornburgh announced the resignation and praised Giuliani’s record during 5 1/2 years on the job. He also announced the appointment of Benito Romano, who has been an assistant U.S. attorney in New York, to be interim U.S. attorney for the southern district of New York.

There has been widespread speculation that Giuliani, 44, plans to run for mayor of New York this year and there also has been talk that he might run for governor in 1990.

Dispute Over Successor

Giuliani has said for several months that he planned to resign but his departure was delayed by a dispute with Sen. Alfonse M. D’Amato (R-N.Y.) over who would name his successor. Giuliani, a Democrat-turned Republican, had sought to control the appointment.

Giuliani, who served as associate attorney general in the Justice Department before becoming U.S. attorney in 1983, used the federal racketeering statutes to convict the heads of all five New York crime families. His office also broke open a huge heroin distribution operation in the “Pizza Connection” case.

Biaggi’s Conviction

Prosecution by Giuliani’s office of the Wedtech scandal involving payoffs by the defense contracting firm to public officials to obtain federal contracts resulted in the conviction of former Rep. Mario Biaggi (D-N.Y.), among others.

Giuliani pressed insider trading cases. His first target, Dennis Levine, former managing director at Drexel Burnham Lambert, pleaded guilty to securities fraud and other charges. That led to guilty pleas by financier Ivan Boesky and the investment banking firm of Drexel Burnham Lambert, among others.

Most recently, the U.S. attorney’s office lost a highly publicized case--the trial of former Miss America Bess Myerson, her lover Carl Capasso and former Judge Hortense Gabel on charges that they conspired to reduce the alimony Capasso owed to his former wife.