Update: A suspect in an Italian police investigation into Montreal Mafia kingpin Vito Rizzuto says he made up the connection he had with the Montreal cheese magnate Lino Saputo. Read the full story .
He transformed his Italian immigrant father's humble cheese-making business into a global dairy-and-bakery conglomerate, built a reputation as one of Quebec's shrewdest entrepreneurs and now sits atop a family fortune estimated at $1.4-billion.
But Lino Saputo's rise to wealth and status as a celebrated entrepreneur and philanthropist has been shadowed over the years by unsubstantiated allegations of links between his company, Saputo Inc., and the Italian mob.
The family-owned business - which went public 10 years ago - has suffered knocks to its reputation in the past because of the unproved allegations but always managed to repair the damage and continue on its prosperous way.
Now, at the age of 70, Mr. Saputo finds himself once again fighting allegations that his Montreal-based company has ties to the Mafia.
His father, Giuseppe Saputo, arrived in Montreal from a Sicilian village in 1950 with one son. His wife and six other children, including Lino, followed in 1952.
After working in a meat plant and saving up $500 at the age of 17, Lino helped set up his father in cheese making.
Mr. Saputo and other family members used a bicycle to deliver the 10 kilograms of mozzarella cheese produced daily.
The company owes its initial success to the exploding popularity of pizza in the 1960s and skyrocketing demand for a key topping, mozzarella.
Lino took over from his father in 1969. A series of acquisitions aimed at diversifying the company followed. Among the more prominent were U.S. dairy firm Stella Foods Inc. in 1997, Quebec snack-cake maker Culinar Inc. in 1999 and Canadian dairy Agrifoods International Co-operative Ltd. in 2002.
Saputo has grown to become one of the top 20 dairy processors in the world, the biggest dairy company in Canada and among the top five cheese producers in the United States.
Among the assets in Mr. Saputo's family holding company - Gestion Jolina Inc. - are the exclusive Golf Saint-Raphaël course near Montreal and extensive real estate.
Mr. Saputo handed over the chief executive officer duties to his son Lino Jr. in 2004 but remains the chairman.
Years of mob controversy and the exacting demands of the food business contributed to his driving his company ever harder, Mr. Saputo said in an interview.
"You know, in the food industry, you're vulnerable ... We had to be better than what the law required. We were always vigilant."
His friend and former banker, André Bérard, says he is outraged by the latest allegations. Mr. Saputo is a "great man who has lived an impeccable life as a citizen and generous contributor to society," the former chairman and CEO of National Bank of Canada, said in an interview.
This time, the unwanted publicity comes from the Italian police, who want to find out if Mr. Saputo is linked to Rome-based entrepreneur Mariano Turrisi - arrested last month - in a plan to launder $600-million (U.S.) for Vito Rizzuto, the godfather of the Montreal Mafia.
Italian police allege Mr. Turrisi wanted to sell two of his companies at an inflated price to a West Palm Beach, Fla.-registered company named Saputo Enterprise Corp.
Mr. Saputo denies any connection to Mr. Turrisi.
He said he has not been contacted by Canadian police but would like to meet with them in hopes of clearing the air.
He is dismayed that the old stories continue to crop up.
Accounts of his late father agreeing to sell part of his business in 1964 to New York mobster Joseph (Joe Bananas) Bonanno are false, Mr. Saputo insists.
"We're talking about a letter my father wrote inviting Mr. Bonanno to take part in the activities of the Saputo company.
"But my father didn't know Mr. Bonanno at the time. He knew his associate, Mr. John DiBella, and at DiBella's request, my father wrote that letter. But when my father found out who Bonanno was, there was no transaction, nothing further happened. We were victims."
For years, however, U.S. authorities believed that the predecessor company to Saputo Inc. had mob connections.
The Pennsylvania Crime Commission in 1980 said it had established direct links between G. Saputo & Sons Ltd. and the Joseph Bonanno criminal organization.
In 1980, the company was refused a milk licence to make cheese at a plant near Utica, N.Y., based on evidence purporting to show a long-standing relationship with Mr. Bonanno.
In 1978, Saputo Inc. was prevented from opening a mozzarella plant in Vermont on suspicion of being in cahoots with the Mafia.
Mr. Saputo says he will fight fiercely for the good names of his family and company.
"I've always tried to be as straight and honest as possible in my life," he said.
"You could leave a pile of money to your children but if you're not leaving them a good reputation ... we owe them a good reputation."
CLARIFICATION
Saputo Inc. was ultimately cleared of allegations of links to organized crime in the United States. Incomplete information was published yesterday.
Report on Business Company Snapshot is available for: SAPUTO GROUP INC.