In the middle of a February afternoon in 1981, a car pulled up to the curb at the corner of Broad and Walnut Streets in downtown Philadelphia, stopping beside a pair of uniformed police officers. The driver threw open his door and ran. In the back seat sat a man named Jimmy DeGregorio, a methamphetamine cook for the Pagans Motorcycle Club, and for the past several minutes he had been pressing a . 45-caliber pistol to the back of the driver’s head.

The man behind the wheel was connected to the Philadelphia Mafia. DeGregorio fired at him in the open street, in full view of the police. The driver survived. DeGregorio was arrested on the spot.
The shooting at Broad and Walnut did not end the conflict between the bikers and the mob. It ignited it. A few years later, according to the commander of the police task force that was watching both organizations, a group of Pagans fired more than two hundred rounds into a house in South Philadelphia. The house belonged to the mother of the Philadelphia mob boss.
So why would an outlaw motorcycle club declare war on the Mafia in a city where the Mafia was at the peak of its violence, and why did the mob, run by the most feared boss in its history, never truly make them pay? The version most people know says the Mafia always wins. Outsiders who get in the way of a crime family disappear. The story of the Pagans and the Philadelphia Mafia is stranger than that.
It is a story about money, a chemical, and a partnership that neither side could afford to give up even while they were shooting at each other. The Pagans Motorcycle Club was founded in the late 1950s in Prince George’s County, Maryland, by a man named Lou Dobkin. By the 1970s, the club had spread along the East Coast with chapters in Philadelphia and South Jersey. By the late 1970s, according to one former member, the Pagans had a presence in the Italian Market section of South Philadelphia, in the middle of a neighborhood that the Mafia considered its own.
Even the founding stories of the club do not agree on a specific year. Some date it to 1959. Others say the club started taking shape in 1957. It was a secretive organization from the start.
The Pagans were not merely a club of men who rode motorcycles. Federal prosecutors would later describe an organization that manufactured and sold drugs, especially methamphetamine and the hallucinogen PCP. One DEA agent testified that in the early 1980s the Pagans produced roughly a quarter to a third of all the methamphetamine in the Philadelphia area, and about sixty percent of the PCP. That made them rich.
It also made them a target. As for the Mafia, the years 1980 and 1981 were the bloodiest in the history of the Philadelphia family. For twenty years it had been run by Angelo Bruno, a boss known for keeping the peace and keeping the family out of drugs. On March 21, 1980, Bruno was shot to death inside his car in front of his home in South Philadelphia.
The man driving the car that night, a family associate named John Stanfa, was wounded. Remember that name, because it will come back. Bruno’s successor, Philip Testa, lasted barely more than a year. On March 15, 1981, Testa was killed by a nail bomb planted under the porch of his home as he returned to the house.
After Testa, the national Mafia commission approved a new boss, a short, volatile man from Atlantic City named Nicodemo Scarfo. Scarfo named Salvatore Merlino, known as Chuckie, as his underboss. Philadelphia under Scarfo was a completely different place than it had been under Bruno. Scarfo believed in fear and he believed in money, and he saw no reason to keep the family out of drugs.
The most important drug in Philadelphia was methamphetamine. The key to manufacturing it was a chemical called P2P, the precursor from which the drug is cooked. Whoever controlled the supply of that chemical controlled the entire trade. According to the Pennsylvania Crime Commission, the Scarfo family formalized this system in 1982.
It imposed a tax on P2P, initially $2,000 a gallon. By 1985, the commission reported, the family was collecting $10,000 for every gallon. The commission noted that the DEA had described Philadelphia as the methamphetamine capital of the world. Inside the family, the tax had a special name.
It was called the tribute. The Mafia did not only tax the trade; it was part of it. In 1981, a Philadelphia mobster named Raymond Martorano bought fifty-two gallons of P2P for more than $100,000. He was arrested in January 1982 along with dozens of others and sentenced to ten years in prison.
The Crime Commission reported that his case revealed the family’s relationship with outlaw motorcycle gangs, and it named the Pagans specifically. The trade was deadly inside the Mafia’s own circles as well. In May 1981, a Greek-American drug figure named Chelsais Bouras, known as Steve, was shot to death while having dinner in a restaurant at a table that included Raymond Martorano. Martorano was considered the prime suspect in that murder.
The methamphetamine money was worth killing for, and everyone in the business knew it. Earlier, according to the commission, a senior family member named Harry Riccobene had worked with the Pagans, including Jimmy DeGregorio himself, in manufacturing and selling methamphetamine. The relationship was never simple. Mobsters and bikers were suppliers, customers, partners, and competitors, often all at once.
Now consider the rule underneath all of this. In the Mafia, the street tax is not really about money. It is about acknowledging authority. When an independent dealer pays the tax, he admits that the family has power over the territory where he works.
When he refuses, he denies it. A family that allows an outsider to refuse will soon find that nobody pays. The usual response to refusal is violence. But the Pagans were not ordinary independent dealers.
They had numbers. They had weapons. They did not care about Mafia rules, and they did not fear the consequences that kept bookmakers and loan sharks in line. Most importantly, the Mafia needed them.
The bikers distributed the drugs on which the family levied its tax. Killing them would mean war. Ignoring them would mean humiliation. That was the trap.
The Broad and Walnut shooting grew out of that trap, and it was only the beginning. In February 1981, according to DeGregorio’s own account, the Mafia kidnapped a drug supplier connected to the Pagans. DeGregorio and his men responded by kidnapping two men from the other side. It is worth being precise about the timing, because the records indicate that February 1981 was one month before Phil Testa was killed.
So the family boss at that moment was Testa, not Scarfo. A later news report said the man DeGregorio shot was a bodyguard for Testa. The names of the two men were never publicly revealed. What happened next is what DeGregorio later described in a television interview.
He sat in the back seat with his gun pressed to the driver’s head, forcing the two men to drive him through downtown Philadelphia. At Broad and Walnut, the driver pulled the car up onto the sidewalk beside the police officers and fled. DeGregorio shot him. In September 1982, DeGregorio was convicted in state court of attempted murder.
Even so, according to his account, the Pagans never paid the tax. Ask the question again now that the picture of the business is clear. Why would the Pagans risk a war with the Mafia? Because paying the tax meant admitting that their most profitable activity belonged, in part, to someone else.
And why did the Mafia not simply wipe them out? Because the bikers were numerous, more dangerous, and more useful. Both sides needed the trade to survive. Neither could afford to lose it.
That tension could not hold forever. It exploded over an incident on a South Philadelphia street. From August 1982 until January 1984, Scarfo was in a federal prison in Texas on a weapons possession charge. While he was away, according to the Crime Commission, Chuckie Merlino agreed to shake down methamphetamine dealers.
The underboss was collecting the tribute himself. Now look at that moment again, slowly. The most detailed account came from a writer who was a member of the Pagans, relying on the head of the police squad that watched both organizations, a Philadelphia police officer named Frank Friel. The accounts of that year conflict.
One places it in 1982, another in 1984, a third in 1986. But what they describe is the same. A Pagan sits on his motorcycle outside a restaurant in South Philadelphia. A car passes down the street.
The driver is Chuckie Merlino, the underboss of the family. According to this account, he was drunk. His car struck the biker. The biker was taken to the hospital, and here is the detail that had been withheld until now.
When the biker’s friends came to visit him, they found the police accident report. It carried the driver’s name. And it contained his home address. The next night, according to this account, the Pagans fired more than two hundred rounds into the house at that address.
Chuckie Merlino was not inside. He had never lived there. The address on his driver’s license was his mother’s house. His mother was not hurt.
Think about what that meant inside the Philadelphia family. The underboss of the most violent Mafia family in America had run over a biker in the street, and the bikers responded by shooting up his mother’s house. By the traditional rules of that world, the reply should have been a massacre. It did not happen.
According to Frank Friel, the incident went unavenged. And according to the same account, Scarfo’s men eventually paid the bikers $5,000 for the injuries and the damage. That payment and those two hundred rounds rest on a single account, and they have been questioned. They cannot be treated as established fact.
But if they are true, they describe something the Mafia almost never did. It paid money. What is firmly established is what happened to Merlino afterward. In March 1986, Scarfo demoted Chuckie Merlino and his brother Lawrence from their positions to the rank of ordinary soldiers.
He named his nephew, Philip Leonetti, the new underboss. The Crime Commission attributed the reasons to the Merlino brothers’ problems with alcohol and their run-ins with the law. The report does not mention the Pagans, and the text cannot claim that the biker was the cause. What can be said is that the second-in-command who brought that embarrassment upon the family was out of his position shortly afterward.
By that time, the family was tearing itself apart for other reasons. In September 1984, Salvatore Testa, the son of the murdered boss and one of Scarfo’s most feared soldiers, was shot to death after his engagement to Chuckie Merlino’s daughter was broken off. In 1985, a man named Frank D’Alfonso was killed on a South Philadelphia street. According to the Crime Commission, Scarfo later planned to kill Chuckie Merlino himself for incompetence.
The plan was never carried out. Meanwhile, the man who had started it all, Jimmy DeGregorio, had switched sides. According to veteran Philadelphia crime reporter George Anastasia, DeGregorio learned that several Pagans had conspired with the Mafia to kill him. The two organizations that had been shooting at each other had found something they agreed on: getting rid of him.
DeGregorio turned to the government. In January 1983, according to federal court records, he was released temporarily from prison to work with federal agents. At a Holiday Inn in Essington, Pennsylvania, near the airport, he sold twenty pounds of fake methamphetamine to Pagans members. He was wearing a recording device.
In 1985, he was the chief prosecution witness in a federal racketeering trial against Philadelphia Pagans leaders before Chief Judge Alfred Luongo. On February 15, 1985, all eight defendants were convicted, including the club’s national treasurer. The biker who had shot a mobster in front of police had become the government’s witness against the bikers. The Mafia came next.
On January 8, 1987, Nicodemo Scarfo was arrested at Newark Airport in a case involving extortion of a real estate developer. On November 19, 1988, a federal jury in Philadelphia convicted Scarfo and sixteen of his men on racketeering charges. He was sentenced to fifty-five years in prison. Chuckie Merlino was convicted with him and sentenced to forty-five years.
There was more. In April 1989, Merlino was sentenced to life in prison for the murder of Frank D’Alfonso. That conviction was later overturned, and at a retrial in 1997, he was acquitted. By then it hardly mattered.
He was already serving decades for the racketeering case. The men who brought them down came from inside their own ranks. Among the witnesses who testified against the family was Philip Leonetti, Scarfo’s nephew, the man who had replaced Merlino as underboss. Lawrence, Chuckie’s brother, also became a cooperating witness.
In May 1989, he died in the Witness Protection Program in 2001. The family that had once refused to take revenge on a motorcycle gang could not even stop its own members from testifying. Chuckie Merlino died in a federal prison in Texas in October 2012. Nicodemo Scarfo died at a federal prison medical center in North Carolina on January 13, 2017, at the age of eighty-seven.
The Pagans outlived them both. There is one final turn that closes the circle. John Stanfa, the man who had been driving Angelo Bruno’s car the night he was killed, became boss of the Philadelphia family in the early 1990s. His reign sparked another war, this time against a group of younger mobsters led by Chuckie Merlino’s son.
That war ended in the mid-1990s when Stanfa and most of his followers were arrested and the young group took over. In the 1990s, the Philadelphia family came under the control of a new generation led by Chuckie Merlino’s son, Joseph Merlino, known as Skinny Joey. The methamphetamine trade in the region continued, with the Mafia, the bikers, and veteran cooks still working together, and the tribute still being collected. According to George Anastasia’s reporting, by the late 1990s the Philadelphia Pagans chapter president, a former police officer named Steve Mondevergine, had allied himself with Joey Merlino, and the Mafia sometimes used the Pagans as a strike force.
The bikers had their own enemies by then. After a string of arrests in the late 1990s decimated the Pagans leadership in Philadelphia, the Hells Angels moved to take over their territory. According to later reports, Mondevergine survived an assassination attempt in which he was hit by nine bullets. The Pagans, once again, endured.
The gang whose members had shot up the house of a mob underboss’s mother had become allies of Joey Merlino. That is the answer to the question, and it is narrower than the legend and colder than what the movies show. The Pagans did not defeat the Philadelphia Mafia because they were the most ruthless. They survived because the Mafia needed what they had.
The family’s authority over the methamphetamine trade rested on the tribute, and the tribute rested on the trade continuing. A war with the bikers would have cost the family enormous money, attracted federal attention, and threatened the one business that had made Philadelphia the methamphetamine capital of the world. So the rules bent. The refusal to pay went unpunished.
According to one account, an attack on the underboss’s family was answered with an envelope of money instead of a corpse. The first motive, respect, demanded revenge. The second, money, made revenge too expensive. Money won.
That is what the legend ignores. The Mafia’s power always looked absolute from the outside, but it always rested on something more fragile inside: the willingness of others to keep doing business with it. The men who shot at each other in the 1980s ended up in the same place. Jimmy DeGregorio became a government witness.
Nicodemo Scarfo and Chuckie Merlino died in federal prisons. And the Pagans, who refused to pay the tribute, kept riding their motorcycles through South Philadelphia. A full generation later, the mob boss’s own son was calling them allies.