Court upholds decision, US liable in killing

Ruling: FBI dealings with Bulger gang led to murder

The US Appeals Court has upheld a lower court ruling holding the FBI responsible for the 1984 killing of a Quincy fisherman by Winter Hill gang leaders and a rogue agent who leaked information to them, in a decision that could settle at least six other cases claiming the FBI had corrupt dealings with James "Whitey" Bulger.

The court ruled that the FBI tolerated former agent John J. Connolly's treacherous relationship with longtime informants Bulger and Stephen "The Rifleman" Flemmi, even while supervisors knew that Connolly was leaking information to the gang leaders.

That information led to the killings of FBI in formants at the hands of Bulger and Flemmi, including the murder of John McIntyre, a 32-year-old fisherman who was lured to a South Boston home, confined to a chair, grilled for hours, choked, and shot to death.

The leaking of information was only part of a broader system that allowed Flemmi and Bulger to commit criminal acts with no reprisals, in exchange for information about the Mafia, which had been the FBI's priority of the 1970s, according to the ruling.

The "FBI stuck its head in the sand when it came to the criminal activities of Bulger and Flemmi," the court said in its ruling.

Yesterday's decision, which also upheld a $3.1 million judgment for the McIntyre family, could help settle at least six other cases brought by the families of Bulger's and Flemmi's murder victims. They allege that the FBI is responsible for Connolly's relationship with Bulger and Flemmi, which led to the leaking of information.

Ten additional suits were filed by families alleging the FBI was responsible for the killings of their loves ones, but those cases were dismissed because they were not filed on time.

The US Department of Justice has refused to take responsibility for the deaths, calling Connolly a rogue agent acting outside the scope of his employment.

Gail Marcinkiewicz, spokeswoman for the FBI's Boston office, referred inquiries to the Department of Justice but said, "Our informant guidelines have changed considerably since that time."

Lawyers in the cases expressed hope yesterday that the Department of Justice would yield to the appeals court decision, for the sake of the families "and justice."

"It's clear from the evidence at the trial and the order that the FBI allowed Connolly to operate at the outer edges," said William Christie, a New Hampshire lawyer representing McIntyre's family. "When you allow that behavior to go forward, it results in catastrophic results, and in this case it was the death of John McIntyre."

Robert George, a lawyer who represents the family of Michael Donahue in a separate case, said, "The circle is finally closing in this set of cases. The government is faced with the reality that the highest court in this district has rejected their argument that the government is not responsible for the death of Michael Donahue and other innocent victims."

Donahue was shot in 1982 while driving with another victim, Edward Halloran after Connolly told Bulger that Holloran was an informant.

Connolly, who was convicted in 2002 of racketeering for protecting Bulger and Flemmi from prosecution in 1995, is on trial in Miami for murder, charged with helping Bulger and Flemmi orchestrate a 1982 slaying.

Charles Miller, a spokesman for the Department of Justice, said yesterday his office was reviewing the ruling, adding "It's too early to make any determination" about its next step.

The Justice Department could choose to appeal to the US Supreme Court, or could yield and settle the remaining civil suits, acknowledging responsibility in one of the most significant cases of government misconduct, negligence, and liability.

A US District Court judge has already ruled in three other cases that the FBI was responsible for the deaths of three people at the hands of the Winter Hill gang. The judge has yet to rule on any monetary damages. And, three other cases alleging the same negligence by the government are pending in the same court.

US Representative William Delahunt, who has long called on the Department of Justice to admit the FBI's wrongdoing, applauded the appeals court decision and called on the government to settle the remaining cases.

"I would hope that the government would address the petitioners here who have been victimized, the families, to see that justice is done," Delahunt said.

Milton Valencia can be reached at mvalencia@globe.com.