Rise to power in the 1960s
From the end of the 1950s, McPherson worked assiduously to secure and increase his power and influence and by the late 1960s he had established an extensive network of organised crime operations which were allegedly supported and protected by corrupt police and public officials. He gained pre-eminence in the tough Sydney underworld through the systematic intimidation and assassination of criminal rivals, and by cultivating relationships with corrupt police officers such as Detective Inspector Ray "Gunner" Kelly and the notorious Detective Seargent Fred Krahe. These relationships quickly developed into a mutually beneficial arrangements—corrupt police exploited McPherson as an informant and 'enforcer', while they in turn were used by him to neutralise enemies and to protect his organisation.
Tony Reeves cites the 1959 killing of criminal Joseph Hackett as a pivotal event in McPherson's criminal career. He argues that the case was "fixed" by corrupt police and prison guards, who conspired with McPherson and enabled him to avoid prosecution. From this point on, McPherson's influence over police, prison guards, lawyers, magistrates and politicians allowed him to literally get away with murder on numerous occasions.
Murder of Joseph Hackett, 1959
The bullet-riddled body of Joseph George Hackett was found in a laneway in the Inner West suburb of Leichhardt late at night on 27 July 1959. McPherson and his longtime bodyguard, "Snowy" Rayner (alias Lewis William Hunt) were charged with the murder, but according to Tony Reeves, before they could face a trial the case was dropped on the orders of the Attorney General of New South Wales, Reg Downing.
Hackett was led into an ambush by Hilton Mervyn Clayton, another of McPherson's criminal associates. Clayton was arrested only hours after the shooting—although police never revealed how he was picked up so quickly—and after a 14-hour interrogation he allegedly made a "verbal" admission identifying McPherson and Rayner as the killers. Police also located at least two other material witnesses whose evidence could have incriminated McPherson and Rayner. ("Verballing" was a technique resorted to by the New South Wales Police Force in the late 1960s and '70s. A policeman or detective would write a "confession" out and produce it in court unsigned by the defendant.)
Acting on Clayton's admission, detectives Fred Krahe and Les Chowne picked up McPherson and Rayner the next day and questioned them both at length. Significantly, during this first interview, Det. Krahe reportedly revealed to McPherson that it was Clayton who had informed on them. [13] McPherson at first claimed that he had been visiting his mother in hospital when the murder took place, but neither man's alibi stood up, and they were both charged with murder and remanded to Long Bay Gaol.
McPherson had good reason to fear that he would not be allowed out on bail, so during the hours he spent on remand at Long Bay, he allegedly dictated a letter, and then used his influence with a corrupt prison officer known as "The Major" to have it smuggled out of prison and delivered to a trusted associate, Christopher George Campbell. Although not written in McPherson's own hand—Reeves suggests it was transcribed by Rayner—the letter was signed "Lenny" and the contents were highly incriminating. Campbell in fact kept the letter—in 1968 he sold it to journalists from The Australian who were researching a (never-completed) investigation into organised crime. [14] News Limited executives then took possession of it and kept its existence secret for many years, until a copy was leaked to Tony Reeves by an anonymous contact.
The letter bluntly states that Hackett had been killed "because he had a big mouth" and that McPherson and Rayner had "surrendered" to a person referred to as "Verbal"—which, Reeves argues, meant that McPherson had made a deal with Det. Ray Kelly (whose nickname was "Verbal"). It outlines their scheme to avoid prosecution, states that Clayton had already been "seen" by some of Lenny's men and that he would never testify against them, describes the plan to fabricate alibis, details the bribing of two other witnesses by offering them £1500 to leave the country, and gives instructions for Campbell to deposit £400 in the account of solicitor Phil Roach—a well-known criminal lawyer who, Reeves claims, regularly acted as an intermediary between criminals like McPherson and corrupt police such as Krahe and Kelly.
When the pair faced court later that day, Rayner was remanded in custody. Remarkably though, in spite of the seriousness of the charge against McPherson, and his extensive criminal record, magistrate Roy Harvey released him on £1,000 bail and ordered him to report to police three times a week until the Coroner's case began.
The hearing opened on 21 September 1959, but by this time the two "gigs" (witnesses) referred to in Lenny's letter had left the country. Clayton—who had not been seen since the day after the murder—could not be found, so the case was adjourned and McPherson and Rayner were released on bail. Overnight, Clayton was located by DS Fred Krahe, but when the hearing reopened, Clayton recanted on his earlier statement, flatly denying that McPherson and Rayner were the men he had seen on the night Hackett was killed.
Nevertheless, the coroner found that there was a case to answer and McPherson and Rayner were committed to stand trial in November 1959. Bail was refused at this stage, but at a hearing two days later Justice Brereton released both men on £1,000 bail. Before the trial could go ahead, however, the matter was "no-billed" by state Attorney General Reg Downing. In his account of the case, investigative journalist Tony Reeves reported that, years later, an anonymous barrister who claimed to have been privy to "secretive arrangements" between lawyers, police and politicians at the time, had told him that McPherson had "donated" over $10,000 to Downing to assist in his decision. [15]
Attempted murder of John Unwin, 1960
In 1960 McPherson and Rayner were charged with the attempted murder of SP bookmaker John Joseph Unwin. The vehicular ambush took place on a busy central Sydney street at mid-evening, and several shots were fired between the two cars as they repeatedly rammed each other, but Unwin managed to return fire, wounding Rayner in the arm, and he escaped without injury. The charges against McPherson were quietly dropped some time later, in part because Unwin refused to cooperate with police. [16]
End of first marriage
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By the early 1960s McPherson's marriage to Dawn Joy had become a sham, and he is known to have had numerous lovers and several children by other women. The end of the marriage was precipitated by a particularly violent attack on his wife in October 1960. After coming home from a drinking binge and discovering that his dinner was not ready, a drunken McPherson savagely pistol-whipped his wife, repeatedly threatened to kill her, and fired shots into the food still cooking on the stove.
Joy was rescued from the house by her father, and she initially agreed with his advice that she should charge her husband with attempted murder. However, at a "conciliation" meeting—arranged and attended by Det. Ray Kelly—she was coerced into dropping the idea. Joy never returned to live with Lenny after the incident, and she subsequently divorced him, signed over her share of their Gladesville home to him, remarried and left Sydney. [17]
In May 1962 McPherson was arrested by two junior detectives for consorting with known criminals, a charge which carried a potential sentence of six months in prison. However, the detectives received a radio order to release McPherson before their car had even arrived at the station, and the two officers involved subsequently stated that the order had come from corrupt detective Ray "Gunner" Kelly.
Murder of Robert Walker, 1963
On 9 July 1963 McPherson (then 42) married for the second time to Marlene Carrol Gilligan, 22. That evening, McPherson allegedly slipped away from his own wedding reception at Balmain and carried out the brutal murder of a rival criminal, Robert James "Pretty Boy" Walker, at Randwick, in Sydney's east. Walker had already earned McPherson's displeasure by bragging of being "the toughest man in Sydney" but he was marked for death after he attacked one of McPherson's trusted minders, the notorious Sydney criminal Stan "The Man" Smith (aka Raymond Arthur Owens) – described by Reeves as "a psychotic gunman and drug addict". [18]
Walker had bashed Smith for assaulting a prostitute at a Woolloomooloo hotel; some days later, Smith and several confederates went to Walker's house in Paddington to 'sort him out', but Walker drove them off by firing a salvo of rifle shots through his front door, and one shot wounded Smith in the chest. [19] Walker was charged and he went to ground after the shooting, but he made the mistake of hiding out at the Randwick house of the prostitute Smith had assaulted. [18]
On the evening of the McPherson's wedding reception, at around 6pm, Smith received a call from the prostitute. Smith alerted McPherson, who told his new bride that he had urgent business, and the two men left the reception. They drove to the suburb of Kingsford, changed clothes, picked up a stolen car and drove it to the house where Walker was hiding. They waited until Walker left the woman's house at about 6:15pm, then followed him as he walked down Randwick's main street, Alison Road, on his way to a local pub. Drawing up alongside, McPherson opened fire on Walker at close range with an Owen submachine gun, hitting him six times and killing him instantly; several shots also struck a parked car and a nearby fence.
Although police were on the scene almost immediately, McPherson and Smith made a clean getaway. They dumped the stolen vehicle, and retrieved their own car. After hiding the machine-gun at an associate's welding business, Smith and McPherson changed back into their own clothes, dumped the clothes they had worn during the shooting into the Parramatta River and returned to the wedding reception in Balmain. According to Tony Reeves, the entire operation took just over half an hour. [20]
The case caused a sensation because of the brazen nature of the killing and the fact that it was the first underworld murder in Sydney involving the use of a machine-gun. However the investigation was led by Ray Kelly, who (according to Reeves) pointed the finger of suspicion away from McPherson and directed it at Raymond 'Ducky' O'Connor, another prominent Sydney criminal and a longstanding enemy of McPherson's. The inquest opened in December 1963, and when it resumed in February 1964 O'Connor was called to give evidence. The inquest ended with the coroner finding that he was unable to recommend any prosecution. [21]
Some months later, in 1965, journalists Ron Saw and Frank Brown wrote an article about the case, published in the new satirical magazine Oz in which they alleged that a loose association of prominent Sydney criminals had clubbed together to have Walker killed because of his attempts to establish himself as a standover man. [22]
Murder of 'Greyhound' Charlie Bourke, 1964
Only days after the conclusion of the inquest into Walker's murder, McPherson allegedly executed another rival. McPherson had reportedly clashed with standover man and greyhound trainer Charles Bourke over the provision of 'protection' for a new illegal baccarat club in the city, and Bourke had also begun to encroach on the protection rackets McPherson was running on illegal gaming houses in the Newtown area.
McPherson's reprisal was brutal. Bourke was gunned down on the front lawn of his Randwick home in the early hours of the morning of 10 February 1964. Forensic investigations determined that the killer had hidden in nearby bushes and had fired 10 rifle shots into Bourke from a distance, reloaded, then approached the dying man and fired a further 10 shots into him at close range. No-one was ever charged over the killing, but Tony Reeves asserts that sources who had been close to Det. Ray Kelly assured him that there was no doubt that McPherson was the killer, and that Kelly had ensured that McPherson would not fall under suspicion. [23]
Murder of Jacky Steele, 1965
The next rival eliminated by McPherson was murderer, safecracker and standover man Robert Lawrence "Jacky" Steele, whose shooting and subsequent death became one of the most celebrated criminal cases of the period. On the evening of 26 November 1965 Steele was fired upon by four men who approached him in a car, while he was walking down a quiet street in the affluent suburb of Woollahra in Sydney's inner east.
He received multiple gunshot wounds—including a shotgun blast that ripped a five-inch hole in his abdomen—but he survived the initial attack and he was able to stagger 200 metres back to his home and drag himself up three flights of stairs to his flat before collapsing. Steele was still conscious when he arrived at St Vincent's Hospital, Sydney, where surgeons removed more than 40 shotgun pellets and bullet fragments from his body.
The wounded Steele survived in hospital for almost a month before finally dying from complications arising from his injuries. In that time he briefly became a media star, and reporters interviewed him in his hospital bed, although one newspaper photographer discovered that Steele, wary of another attempt on his life, was keeping a loaded shotgun at the ready under the sheets.
Steele told a Sunday Mirror reporter that his assailants were able to surprise him by driving up to him in a car that resembled an official police vehicle, and that they were all wearing hats of a style then much favoured by detectives. Tony Reeves speculates Steele may have been falsely told to expect a visit from police with whom he was connected, that McPherson may have used his corrupt police connections to gain the use of a real police vehicle [24] and that the gunmen made eight rehearsal runs for the attack before carrying it out. [25]
Like Charlie Bourke, Steele had incurred Lenny's wrath because he was trying to challenge McPherson's control over inner-city standover rackets, but McPherson's considerable ego also played a part. By Steele's own account, his fate was sealed by a feature in the satirical magazine Oz , entitled "The Oz Guide to Sydney's Underworld", and which was published shortly before the shooting.
Based on information supplied by two Sydney journalists, Oz editor Richard Neville compiled a "Top 20" list of Sydney gangsters. The No. 1 spot was left empty but—in a reference to McPherson—the name "Len" was placed at No. 2, and "Len" was also described as a "fence and a fizz-gig" (police informant). [26] The edition sold out in three days and a delighted Steele reportedly bought 20 copies, making great play of the fact that McPherson was not at No. 1 on the list of top criminals.
It may seem unlikely that a man of McPherson's reputation could be disturbed by an article in a satirical student magazine, but Neville has since revealed that, soon after the "Underworld Guide" was published, he received a visit at his Paddington home from McPherson himself. Lenny explained that had obtained Neville's address from a friend's son, who was at university with Neville. He claimed that he had come to assure himself that the Oz team were not part of a rival gang, and to insist that he was not a "fizz". [27]
In a subsequent edition, Oz delved further into the case when it published the confidential minutes of a monthly meeting of Sydney detectives, held on 1 December. The leaked document revealed that Steele (then still alive in hospital) had named those he believed had carried out the shooting, and that Steele had privately told police that he was sure that McPherson was behind the shooting, and that it had been ordered because of Lenny's fury over the Oz article. The fact that the secret report had been obtained from an underworld source was described by Oz as a "devastating indictment of police". [28]
