Operation Gladio: How the CIA's Secret Army Was Financed by the Mafia
In 1948, a mysterious surge in heroin supply flooded major American cities, catching the attention of Harry Anslinger, Commissioner of Federal Narcotics. Following tips from a confidential informant, Anslinger's investigation led to a shocking discovery: Lucky Luciano, head of the Mafia's national crime syndicate, was behind the operation. This revelation was particularly surprising because the mob traditionally avoided the drug trade.
When Anslinger's agents tracked Luciano to Sicily and discovered a half-ton heroin shipment bound for New York via Havana, they hit an unexpected roadblock. Local police refused to make arrests, and when Anslinger contacted the State Department for assistance, he received a stunning response from the U.S. Embassy in Palermo: Luciano was working with the CIA. This connection between organized crime and American intelligence emerged during a critical period of Cold War tensions, as the United States desperately sought allies to contain Soviet expansion across Europe.
Key Takeaways
The unexpected heroin surge of 1948 led to the discovery of a surprising collaboration between the CIA and notorious crime boss Lucky Luciano.
After World War II, the U.S. government recruited former enemies, including Nazi scientists and intelligence officers, to help counter Soviet expansion.
General Reinhard Gehlen, Hitler's former intelligence chief, created a secret paramilitary force of former Nazis that operated with CIA support throughout Europe.
The Heroin Explosion
In 1948, major American cities experienced an unprecedented surge in heroin availability. Federal Bureau of Narcotics Commissioner Harry Anslinger launched an investigation to identify the source of this sudden influx.
Intelligence from a confidential informant pointed to an unexpected culprit: Lucky Luciano, head of the mafia's National Crime Syndicate. This revelation was shocking because traditionally, organized crime avoided drug trafficking.
Anslinger dispatched agents to Sicily where they discovered Luciano organizing a substantial heroin shipment—approximately half a ton—destined for New York via Havana. When local Sicilian authorities refused to arrest Luciano, Anslinger reached out to the State Department for assistance.
The commissioner's call eventually reached the U.S. Embassy in Palermo, where he received a startling response: "Sorry commissioner, have your agent stand down. Lu's with us." When Anslinger questioned what this meant, he learned the astonishing truth: Lucky Luciano, one of the world's most notorious crime bosses, was working for the CIA.
This connection exemplified the CIA's post-World War II strategy of utilizing controversial assets to combat Soviet influence. As the Cold War intensified, American intelligence agencies prioritized containing communism by any means necessary.
The CIA, led by Alan Dulles, embraced radical approaches to counter Soviet expansion. This included recruiting former enemies and overlooking criminal backgrounds if individuals could provide strategic advantages against the communist threat.
Harry Anslinger's Quest for Answers
In 1948, major American cities experienced a sudden surge in heroin supply. Harry Anslinger, Commissioner of Federal Narcotics, sought to identify the source of this influx. His investigation took an unexpected turn when a confidential informant revealed that Lucky Luciano, head of the mafia's National Crime Syndicate, was behind the heroin importation.
This revelation surprised Anslinger, as the mob traditionally avoided drug trafficking. Acting on this intelligence, he dispatched agents to Sicily, where they discovered Luciano preparing a substantial half-ton heroin shipment destined for New York via Havana.
Since American authorities lacked jurisdiction in Sicily, they requested assistance from local police. Strangely, Sicilian law enforcement refused to make any arrests. Frustrated, Anslinger contacted the State Department for support. After being transferred multiple times, his call finally reached the U.S. Embassy in Palermo.
The conversation that followed left Anslinger bewildered. A young embassy employee informed him:
"Sorry Commissioner, have your agent stand down. Lu's with us."
When Anslinger asked for clarification, the response stunned him: Lucky Luciano, one of the world's most notorious crime bosses, was working directly with the CIA. This revelation represented a shocking connection between American intelligence and organized crime in the post-war period.
Lucky Luciano's Involvement
In 1948, major American cities experienced a dramatic surge in heroin supply, prompting Federal Narcotics Commissioner Harry Anslinger to launch an investigation. Intelligence from a confidential informant revealed that Lucky Luciano, head of the Mafia's National Crime Syndicate, was behind the heroin influx. This revelation surprised authorities since the Mafia traditionally avoided drug trafficking.
Anslinger dispatched agents to Sicily, where they discovered Luciano organizing a substantial heroin shipment—approximately half a ton—destined for New York via Havana. When local Sicilian police refused to arrest Luciano despite clear evidence, Anslinger escalated the matter to the State Department.
After several transfers, Anslinger's call reached the U.S. Embassy in Palermo. The commissioner was stunned when a young embassy official instructed his agents to stand down, explaining that Luciano was "with us." When pressed for clarification, Anslinger received shocking news: Lucky Luciano, one of the world's most notorious crime bosses, was actively working for the CIA.
This revelation highlighted the complex relationship between intelligence agencies and criminal organizations during the early Cold War period. The CIA's willingness to collaborate with Luciano demonstrated their pragmatic approach to gathering intelligence and countering perceived threats, regardless of their associates' criminal backgrounds.
Mafia's Unexpected Drug Trade
In 1948, American cities experienced a dramatic surge in heroin supply, prompting Federal Narcotics Commissioner Harry Anslinger to investigate. Intelligence from a confidential informant pointed to Lucky Luciano, head of the Mafia's national crime syndicate, as the source—a revelation that initially surprised authorities since organized crime traditionally avoided narcotics trafficking.
Federal agents tracked Luciano to Sicily, where they discovered him preparing a substantial shipment—approximately half a ton of heroin—destined for New York via Havana. When local Sicilian police refused to make an arrest, Anslinger escalated the matter to the State Department.
The commissioner's call eventually reached the U.S. Embassy in Palermo, where he received shocking information: Luciano was working with American intelligence. An embassy representative instructed Anslinger's agents to stand down, revealing that the notorious crime boss had become a CIA asset.
This unexpected alliance formed part of broader post-World War II intelligence operations. As the Cold War intensified, American intelligence agencies recruited various controversial figures to counter Soviet expansion in Europe and beyond.
The CIA, under Alan Dulles, had developed a strategy of using "every tool available" to fight communism. This approach included establishing covert stay-behind armies and recruiting individuals with questionable backgrounds but valuable skills or connections.
Former enemies became strategic partners in this new geopolitical landscape. The traditional boundaries between law enforcement, intelligence operations, and organized crime blurred as American agencies prioritized Cold War objectives over prosecuting criminal enterprises.
The Luciano revelation demonstrates how intelligence considerations sometimes trumped law enforcement priorities during this era. What appeared to be straightforward criminal activity was actually part of a complex web of covert international operations.
While the full extent of Luciano's collaboration remains classified, this incident highlights the often uncomfortable partnerships formed during the Cold War's early stages—when former enemies and criminal elements became tactical allies against perceived greater threats.
Operations in Sicily
The CIA operation in Sicily started in 1948 when a significant influx of heroin appeared in major American cities. Harry Anslinger, serving as commissioner of federal narcotics, immediately launched an investigation. A confidential informant revealed that Lucky Luciano, head of the mafia's national crime syndicate, was responsible for the drug trafficking.
This revelation surprised Anslinger, as the mafia traditionally avoided drug dealing. Acting on this intelligence, he dispatched agents to Sicily where they discovered Luciano organizing a substantial heroin shipment—approximately half a ton—destined for New York via Havana.
American authorities faced jurisdictional limitations in Sicily and requested assistance from local police, who refused to arrest Luciano. When Anslinger escalated the matter to the State Department, his call was eventually routed to the U.S. Embassy in Palermo. The embassy response was unexpected: "Sorry commissioner, have your agent stand down. Lu's with us."
The stunning truth emerged that Luciano, despite being one of the world's most notorious crime bosses, had become a CIA operative. This alliance exemplified the agency's pragmatic approach to fighting communism in post-war Europe, where they frequently recruited questionable assets based on their usefulness rather than their moral standing.
Foreign intelligence operations during this period often involved collaboration with criminals, former enemies, and other controversial figures. The CIA, still a young organization focused primarily on intelligence gathering rather than direct action, found these partnerships provided operational capabilities they otherwise lacked.
Sicily's strategic position in the Mediterranean made it an important location for Cold War operations. The established networks of the Sicilian mafia offered ready-made infrastructure for covert activities that circumvented official channels and government oversight.
Intelligence gathering and covert operations in Sicily operated outside normal diplomatic and legal frameworks. This pattern of extralegal operations would become characteristic of CIA activities throughout the Cold War period as the agency prioritized containing Soviet expansion over legal or ethical considerations.
The Challenge of Jurisdiction
International law enforcement faces significant hurdles when criminal activities cross borders. In 1948, America experienced a dramatic surge in heroin supply, prompting Commissioner Harry Anslinger of the Federal Bureau of Narcotics to investigate. His informants identified Lucky Luciano, head of the mafia's national crime syndicate, as the source.
This revelation surprised Anslinger because traditionally, the mob avoided drug trafficking. Acting on this intelligence, federal agents tracked Luciano to Sicily, where they discovered him orchestrating a massive half-ton heroin shipment destined for New York via Havana.
The jurisdictional limitations became immediately apparent. American agents lacked authority to make arrests on Italian soil, requiring them to collaborate with local police. However, when approached, Sicilian authorities refused to apprehend Luciano. This created a diplomatic impasse that necessitated State Department intervention.
When Anslinger finally connected with the U.S. Embassy in Palermo, he received shocking instructions to stand down. The young embassy official revealed that Luciano was "with us" - working directly for the CIA. This protection of a notorious criminal highlights how intelligence agencies sometimes operate outside normal legal frameworks.
The post-WWII era saw intelligence agencies prioritizing Cold War objectives over criminal prosecution. As the Soviet Union expanded its influence across Eastern Europe, Western powers became increasingly willing to work with problematic assets. The CIA, under Alan Dulles, embraced a pragmatic approach to containing communism.
Operation Paperclip exemplifies this compromise of legal and ethical standards. The program recruited approximately 1,600 Nazi scientists and intelligence officers, many implicated in serious war crimes. Their expertise was deemed valuable enough to overlook their past activities, with official records sanitized to prevent public outrage.
Key figures recruited included:
Kurt Blom: Nazi biowarfare expert who conducted concentration camp experiments
Eric Traub: Designer of bioweapons who later helped establish American research facilities
Wernher Von Braun: V2 rocket developer whose weapons killed thousands in London
General Reinhard Gellen represents perhaps the most striking example of jurisdictional flexibility. Despite being Hitler's intelligence chief for the Eastern front with a reputation for prisoner abuse, Gellen avoided war crimes charges by offering his Soviet intelligence files to American authorities.
The CIA not only protected Gellen but supported his creation of a paramilitary organization staffed by former Nazi soldiers and Hitler Youth members. These "werewolves" operated as an unsanctioned secret army throughout Germany, conducting sabotage and guerrilla operations against communist influence.
When exposed by a former Nazi officer, the German government attempted to investigate this illegal operation within their sovereign territory. The CIA intervened, having the investigation closed and covered up, demonstrating how national security concerns could override both international and domestic legal jurisdiction.
The State Department's Involvement
The intertwining of U.S. intelligence operations with organized crime came to light when Harry Anslinger, commissioner of federal narcotics, investigated a sudden surge in heroin supply across major American cities in 1948. Following a tip from an informant, Anslinger's agents tracked Lucky Luciano, head of the mafia's national crime syndicate, to Sicily where they discovered him preparing a substantial heroin shipment bound for New York via Havana.
When local Sicilian police refused to arrest Luciano, Anslinger reached out to the State Department for assistance. His call was eventually connected to the U.S. Embassy in Palermo, where he received a shocking response: "Sorry commissioner, have your agent stand down. Lu's with us." The young embassy official revealed that Luciano, one of the world's most notorious crime bosses, was working directly with U.S. intelligence agencies.
This collaboration exemplified the complex post-World War II strategy employed by American intelligence. As the Cold War emerged and Soviet influence spread across Eastern Europe, U.S. officials became increasingly concerned about communist expansion. The State Department worked alongside intelligence agencies to implement controversial containment policies, often supporting questionable allies in the process.
Alan Dulles of the CIA championed this approach, believing in using every available resource to fight communism—including former enemies. The State Department provided diplomatic cover for many of these operations, enabling intelligence activities on foreign soil while maintaining plausible deniability for the U.S. government.
Operation Paperclip represented another controversial program where State Department cooperation proved essential. This initiative brought approximately 1,600 Nazi scientists and technicians to America despite many being implicated in war crimes. The State Department facilitated their entry by sanitizing backgrounds and providing necessary documentation for these individuals.
The department also played a crucial role in shielding General Reinhard Gellen, Hitler's former intelligence chief for the Eastern front. When Gellen's "werewolves" program—a paramilitary organization comprised of former Nazi soldiers and Hitler Youth—was exposed, diplomatic pressure through State Department channels helped suppress investigations by the new German government.
Foreign embassies, operating under State Department authority, frequently served as operational bases for these covert activities. As demonstrated in the Luciano case, embassy officials could intervene in local law enforcement matters when they conflicted with intelligence objectives, reflecting the department's prioritization of strategic interests over legal concerns.
This relationship between organized crime, former Nazis, and U.S. foreign policy represented a controversial chapter in American diplomacy. The State Department's willingness to cooperate with these elements demonstrated how conventional diplomatic principles could be subordinated to perceived national security imperatives during the early Cold War era.
Luchano's CIA Connection
Lucky Luchano, a prominent figure in the mafia's national crime syndicate, became a person of interest for Harry Anslinger, commissioner of federal narcotics, in 1948. Major American cities experienced a sudden surge in heroin supply, prompting Anslinger to investigate the source.
A confidential informant revealed that Luchano was responsible for importing heroin, which surprised authorities as the mob traditionally avoided drug trafficking. Federal agents tracked Luchano to Sicily, where they discovered him preparing a substantial half-ton heroin shipment destined for New York via Havana.
The investigation hit an unexpected roadblock when local Sicilian police refused to arrest Luchano despite the evidence. When Anslinger sought assistance from the State Department, he received a shocking response from a young man at the U.S. Embassy in Palermo: "Sorry commissioner, have your agent stand down. Lu's with us."
This revelation stunned Anslinger, who struggled to comprehend how one of the world's most notorious crime bosses could be working with American intelligence. The young embassy official confirmed the unthinkable truth - Luchano was cooperating with the CIA.
This connection between organized crime and intelligence operations represented a controversial strategy employed during the early Cold War. American intelligence agencies often formed alliances with unconventional partners to combat perceived communist threats.
Operation Code Brown Distraction
In 1948, America experienced a sudden surge in heroin supply across major cities. Harry Anslinger, the Federal Narcotics Commissioner, launched an investigation after receiving intelligence that Lucky Luciano, the head of the mafia's national crime syndicate, was behind the drug influx.
Anslinger's agents tracked Luciano to Sicily, where they discovered him preparing a massive half-ton heroin shipment destined for New York via Havana. When local Sicilian police refused to make an arrest, Anslinger reached out to the State Department for assistance.
After being transferred multiple times, Anslinger's call finally connected to the US Embassy in Palermo. What happened next shocked him completely. A young man instructed Anslinger to have his agents stand down, explaining that Luciano was "with us." When Anslinger asked for clarification, he received an astonishing revelation: Lucky Luciano, one of the world's most notorious crime bosses, was working directly for the CIA.
The Cold War created strange bedfellows. After World War II, Europe stood divided between Western allies and the Soviet Union. As the Soviets maintained control over multiple Eastern European countries, Western powers grew increasingly concerned about further Communist expansion.
Alan Dulles of the CIA developed a strategy to contain Soviet influence using "stay-behind soldiers" - small groups trained in sabotage, raids, propaganda, and guerrilla warfare. These fighters would continue resisting even if their governments fell to Soviet control. The White House approved the plan, but implementation required experienced leadership.
Nazi Scientists Recruited Under Operation Paperclip:
Name Nazi Role US Role Kurt Blom Biowarfare expert, concentration camp experimenter MK Ultra program researcher Eric Traub Top bioweapons designer US Army germ warfare lab developer Arthur Rudolph, Walter Dornberger, Werner Von Braun V2 rocket developers using concentration camp labor NASA rocket engineers
Approximately 1,600 Nazi scientists were brought to America, their war crimes conveniently overlooked as their backgrounds underwent "sanitization" to prevent public outrage. The US government viewed these individuals as a necessary evil in the fight against communism.
General Reinhard Gellen, Hitler's intelligence chief for the Eastern front, offered the United States his extensive Soviet intelligence files in exchange for protection. The Americans agreed, absolving him of war crimes under Operation Paperclip. Gellen established a paramilitary organization trained in guerrilla tactics and sabotage.
His initial recruits consisted of Hitler Youth and former Nazi soldiers - dubbed "werewolves" - who lived as ordinary citizens by day while carrying out anti-communist operations by night. The CIA and UK provided substantial funding and resources, establishing secret supply caches throughout Germany.
When a former Nazi officer exposed this operation, the German government demanded an investigation. The CIA promptly shut down the inquiry and covered up the entire operation. Despite its illegality, American intelligence considered the werewolf program essential as Soviet power continued to grow.
Cold War Tensions in Europe
After World War II, Europe found itself divided into two distinct spheres of influence. The Western allies controlled West Germany while the Soviet Union held control over East Germany, creating a physical and ideological division that would define the Cold War era.
The Soviet Union, having suffered massive casualties while liberating Eastern European countries during its march to Berlin, established satellite states across Poland, Hungary, Romania, and Bulgaria. Soviet military strength remained formidable despite the war's devastation, causing significant concern among Western powers about potential further expansion westward.
To counter this perceived threat, the United States turned to the newly formed CIA under Alan Dulles. As the former OSS station chief in Switzerland, Dulles had observed Soviet activities closely and harbored deep distrust toward communist ideology. He embraced an aggressive containment strategy that would utilize every available resource to prevent Soviet influence from spreading further into Western Europe.
The CIA developed a controversial plan to establish "stay-behind" forces—small groups of citizen soldiers trained in:
Sabotage techniques
Supply raid operations
Propaganda distribution
Guerrilla warfare tactics
These covert resistance units would operate even if their governments fell to Soviet influence. The leadership for these secret armies came from an unexpected source: former Nazi officials and military personnel.
Through Operation Paperclip, the United States recruited approximately 1,600 Nazi scientists, engineers, and intelligence officers. Their war crime histories were systematically sanitized to avoid public outrage. General Reinhard Gellen, Hitler's former intelligence chief for the Eastern front, became particularly valuable to American interests despite his notorious reputation for abusing Soviet prisoners.
Gellen offered his extensive Soviet intelligence files to the Americans in exchange for protection from war crimes prosecution. Under CIA backing, he established a paramilitary organization that went beyond mere intelligence gathering. His first recruits, nicknamed "werewolves," were primarily former Hitler Youth members and Nazi soldiers who operated as ordinary citizens by day while conducting anti-communist operations by night.
The operation included networks of secret supply caches hidden throughout Germany. When a former Nazi officer eventually exposed the existence of these stay-behind forces, the revelations shocked the new German government. Despite initial calls for investigation, the CIA successfully suppressed inquiries into this illegal operation, considering it necessary to counter growing Soviet power and influence in Europe.
The Containment of Soviet Expansion
Following World War II, Europe found itself divided between Western and Eastern influences. While the Western allies controlled West Germany, the Soviet Union maintained control over East Germany. The massive losses suffered by the Soviet Union during their march to Berlin resulted in their refusal to relinquish control over countries they had liberated. Poland, Hungary, Romania, and Bulgaria became Soviet satellite states as former allies transformed into adversaries.
With Europe in ruins and the Russian army maintaining considerable strength, Western powers feared further Soviet expansion. The need for containment became paramount, leading to the involvement of Alan Dulles and the newly formed CIA. As the former OSS station chief in Switzerland, Dulles had closely monitored Soviet activities and harbored deep distrust toward communist ideologies.
A controversial plan emerged focused on training citizen soldiers in guerrilla warfare, sabotage, propaganda, and supply raids. These "stay-behind" forces would resist Soviet influence even if their governments fell. The most shocking aspect of this strategy was the leadership chosen to implement it: former Nazis.
Operation Paperclip: Nazi Expertise in American Hands
The United States implemented Operation Paperclip, recruiting approximately 1,600 Nazi scientists, engineers, and technicians despite many being implicated in war crimes. Notable recruits included:
Dr. Kurt Blom: Nazi biowarfare expert who conducted concentration camp experiments, later employed in the CIA's MK Ultra program
Dr. Eric TR: Nazi bioweapons designer who helped establish the Plum Island germ warfare laboratory
Arthur Rudolph, Walter Dornberger, and Werner Von Braun: V2 rocket developers who later worked for NASA
American officials justified these recruitments as a necessary evil to prevent Soviet expansion. Their backgrounds were sanitized to avoid public outcry.
The Werewolf Network
General Reinhard Gellen, Hitler's Eastern front intelligence chief known for brutalizing Soviet prisoners, offered his extensive Soviet intelligence files to the United States in exchange for protection and operational involvement. Despite Soviet demands for war crimes charges, the Americans accepted his offer under Operation Paperclip.
Gellen established a paramilitary organization focused on countering Soviet influence. Unlike the CIA, which functioned primarily as an intelligence-gathering agency, Gellen's organization possessed military capabilities. His first recruits—former Hitler Youth members and Nazi soldiers—formed what he called "werewolves," ordinary citizens who operated as communist opposition forces.
With substantial funding from both the US and UK, Gellen established a network of secret supply caches throughout Germany. The operation remained unknown to the new German government until exposed by a former Nazi officer. Despite the revelation of Americans funding a secret Nazi army led by the brutal General Gellen, CIA intervention ensured the investigation was closed and covered up.
In the eyes of American intelligence, the illegality of these operations was overshadowed by their perceived necessity as Soviet power continued to grow.
Operation Paperclip and Nazi Recruitment
After World War II, the United States implemented a controversial program that would shape the future of American intelligence, military capabilities, and space exploration. Operation Paperclip secretly brought approximately 1,600 Nazi scientists, engineers, and technicians to America, overlooking their war crimes and human rights abuses.
Nazi experts like Dr. Kurt Blom, who conducted horrific experiments on concentration camp prisoners, were saved from prosecution and put to work for American interests. Ironically, Blom transitioned from performing non-consensual chemical experiments for the Nazis to doing similar work for the CIA's MK Ultra program.
The military benefits of this recruitment were substantial. Dr. Eric Traub, a Nazi bioweapons specialist, helped establish the U.S. Army's germ warfare laboratory on Plum Island, New York. Meanwhile, rocket scientists Arthur Rudolph, Walter Dornberger, and Werner von Braun—whose V2 rockets killed thousands in London and were built using concentration camp slave labor—became key figures at NASA.
This recruitment strategy extended beyond scientists to intelligence operatives. General Reinhard Gellen, Hitler's Eastern front intelligence chief known for brutally interrogating Soviet prisoners, avoided war crimes charges by offering his Soviet intelligence files to American handlers. The U.S. eagerly accepted his deal, absolving his crimes under Operation Paperclip.
Gellen proved particularly valuable to American Cold War strategy. As Europe was divided between Western allies and the Soviet Union, fear grew about further Soviet expansion beyond their newly acquired satellite states of Poland, Hungary, Romania, and Bulgaria. The CIA, led by Allen Dulles, needed a plan to contain Soviet influence.
Under CIA backing, Gellen established a paramilitary organization trained in guerrilla warfare, sabotage, and anti-communist operations. His recruits, primarily drawn from Hitler Youth and former Nazi soldiers, formed secret "stay-behind" units called "werewolves"—ordinary citizens by day, covert operatives by night.
These werewolf units received substantial funding and resources from both the U.S. and UK. They established hidden supply caches throughout Germany, preparing for potential Soviet incursions. This operation remained unknown to the new German government until exposed by a former Nazi officer.
When German authorities attempted to investigate this unauthorized Nazi army operating on their soil, the CIA intervened to shut down the investigation. Despite the clear illegality of maintaining secret military units led by a former Nazi general, American intelligence prioritized anti-communist operations above legal and ethical concerns.
The decision to employ former Nazis reflected Dulles' pragmatic approach to fighting communism. While these individuals had committed terrible atrocities, American intelligence leaders viewed them as a "necessary evil" in the escalating Cold War against Soviet expansion.
The Utilization of Nazi Scientists
After World War II, as the Cold War emerged between former allies, the United States implemented a controversial strategy to gain military and scientific advantages over the Soviet Union. The CIA, under Alan Dulles, recruited approximately 1,600 Nazi scientists, engineers, and intelligence officers through Operation Paperclip, despite many being implicated in war crimes.
These Nazi scientists brought valuable expertise to American programs. Dr. Kurt Blom, a Nazi biowarfare expert who conducted inhumane experiments in concentration camps, later worked on the CIA's MK Ultra program using similar chemical testing methods on unwitting subjects. Dr. Eric Traub, a prominent Nazi bioweapons designer, helped establish the U.S. Army's germ warfare laboratory on Plum Island, New York.
The U.S. also benefited from Nazi rocket science. Arthur Rudolph, Walter Dornberger, and Werner von Braun—developers of the V2 rockets that killed thousands in London using concentration camp labor—were brought to work for NASA where they contributed to America's space program.
The intelligence sphere saw similar recruitment patterns. General Reinhard Gellen, Hitler's Eastern front intelligence chief known for brutally interrogating Soviet prisoners, avoided war crimes charges by offering his Soviet intelligence files to American authorities. The U.S. granted him protection and a role in Cold War operations.
Gellen established a paramilitary organization known as the "werewolves"—former Nazi soldiers and Hitler Youth members who operated as ordinary citizens by day while conducting anti-communist operations at night. This covert army received substantial funding from both American and British sources.
When exposed by a former Nazi officer, the revelation that Americans were funding a secret Nazi army shocked the German government. Despite calls for investigation, the CIA successfully suppressed inquiries, arguing that these controversial assets were necessary to counter Soviet expansion.
The American approach reflected a pragmatic but ethically questionable calculation. While acknowledging the evil of Nazism, U.S. intelligence officials viewed these former enemies as a "necessary evil" in their strategic competition with the Soviet Union.
General Reinhard Gehlen's CIA Partnership
General Reinhard Gehlen, Hitler's former intelligence chief for the Eastern front, established a crucial alliance with the CIA during the early Cold War. After World War II, facing potential war crimes charges from the Soviets, Gehlen made a strategic offer to American intelligence. He provided his extensive Soviet intelligence files in exchange for protection and a continued operational role.
The Americans accepted this bargain under Operation Paperclip, effectively pardoning Gehlen's wartime activities. Unlike many Nazi scientists brought to America, Gehlen remained in Europe to build a new intelligence organization focused on the Soviet Union. This arrangement gave the CIA valuable anti-Soviet intelligence capabilities they desperately needed.
Gehlen's organization went beyond mere intelligence gathering. It functioned as a paramilitary force trained in guerrilla warfare and sabotage tactics. His first recruits came primarily from Hitler Youth and former Nazi soldiers - a covert force he called "werewolves." These operatives lived as ordinary citizens by day while functioning as anti-communist operatives by night.
The CIA enthusiastically supported this arrangement. Gehlen's network established secret supply caches throughout Germany, receiving substantial funding from both American and British intelligence services. This created a ready-made "stay-behind" army that could resist Soviet influence or occupation.
When a former Nazi officer exposed this secret operation, the revelation shocked the new German government. The existence of a CIA-funded paramilitary force led by a brutal former Nazi general operating on German soil without government knowledge created a political crisis. Officials ordered a full investigation.
However, the investigation never materialized. The CIA successfully intervened to have the inquiry closed and the matter covered up. Despite the questionable legality of these operations, American intelligence considered Gehlen's network essential to counter growing Soviet power in Europe.
Gehlen's organization became a key component in the CIA's strategy to contain communist expansion. His extensive knowledge of Soviet operations and intelligence techniques made him valuable despite his dark past. The Americans viewed this partnership as a necessary compromise in the face of the perceived existential threat of communism.
Allied intelligence agencies prioritized anti-communist operations over accountability for Nazi war crimes in Gehlen's case. This reflected a wider pattern seen in Operation Paperclip, where scientific and intelligence expertise was valued above moral considerations.
The Origin of Gallen's Werewolves
In the aftermath of World War II, Europe faced a new division as former allies became adversaries. The Soviet Union, having suffered immense casualties while liberating Eastern European countries, maintained control over Poland, Hungary, Romania, and Bulgaria as satellite states. The Western powers grew concerned about potential Soviet expansion westward.
Alan Dulles, a key figure in American intelligence, watched Soviet activities with deep suspicion. He believed in utilizing every possible resource to combat communism, even controversial ones. A plan landed on his desk proposing the training of "stay behind" citizen soldiers who would engage in sabotage, conduct supply raids, spread propaganda, and execute guerrilla warfare tactics.
The implementation of this plan took a shocking turn when Dulles recruited Nazis through Operation Paperclip. This covert program brought approximately 1,600 Nazi scientists, engineers, and technicians to America despite their involvement in war crimes. Their backgrounds were sanitized to prevent public outrage.
General Reinhard Gallen, Hitler's former intelligence chief for the Eastern front, became particularly valuable to American interests. The Soviets wanted him tried for war crimes due to his reputation for abusing Soviet prisoners. Gallen offered the United States his extensive Soviet intelligence files in exchange for protection and a role in future operations.
Under Operation Paperclip, Gallen received immunity for his war crimes. He worked alongside the CIA to establish a paramilitary organization focused on opposing Soviet influence. Unlike the CIA, which primarily gathered intelligence, Gallen's group was trained for direct action.
Gallen recruited primarily from Hitler Youth and former Nazi soldiers. He named his operatives "werewolves" – ordinary citizens by day who transformed into communist fighters by night. The United States and United Kingdom provided extensive resources, allowing Gallen to establish secret supply caches throughout Germany.
The operation remained hidden until a former Nazi officer exposed its existence. The revelation that Americans were funding a secret Nazi army led by General Gallen caused immediate concern. The German government ordered an investigation, but the CIA successfully had it closed and covered up. Despite the illegality of the operation, U.S. officials deemed the werewolves necessary to counter Soviet strength.
The Secret Army's Existence and Exposure
After World War II, as Cold War tensions mounted, the CIA developed a clandestine strategy to combat potential Soviet expansion. Under Alan Dulles, the agency implemented a radical plan focusing on training citizen soldiers in sabotage, propaganda, and guerrilla warfare techniques. These "stay-behind" forces would resist Soviet influence even if their governments fell.
The leadership question was answered controversially: former Nazis would command this secret army. Through Operation Paperclip, approximately 1,600 Nazi scientists and intelligence officers were recruited by the United States despite their connections to war crimes. Their backgrounds were sanitized to prevent public outcry.
General Reinhard Gellen, Hitler's Eastern front intelligence chief, offered the US his Soviet intelligence files in exchange for protection. Despite Soviet demands to charge him with war crimes for his notorious prisoner abuse, the Americans granted him immunity and operational authority.
Gellen created a paramilitary organization trained beyond mere intelligence gathering. His recruits, primarily Hitler Youth and former Nazi soldiers, were called "werewolves" - ordinary citizens by day who targeted communists by night. The CIA and British intelligence provided extensive resources, establishing secret supply caches throughout Germany.
The operation remained hidden until a former Nazi officer exposed its existence. This revelation shocked the new German government, which ordered a full investigation into Americans funding a secret Nazi army. The CIA intervened, having the investigation closed and covered up despite the operation's illegal nature. For American intelligence, these "werewolves" represented a necessary defense against growing Soviet power.
Meanwhile, in the criminal underworld, connections to intelligence agencies surfaced unexpectedly. When Federal Narcotics Commissioner Harry Anslinger investigated a surge in American heroin supply in 1948, evidence led to crime boss Lucky Luciano preparing a substantial shipment in Sicily. However, when Anslinger sought assistance from the US Embassy, he was told to stand down because Luciano was "with us" - working for the CIA.
