Once Sunrise Hospital was built, Dalitz and his three partners, Roen, Allred, and Molasky, turned their attention away from Vegas and toward the sunny beaches of San Diego County. As Roen explained it in 1970 to a reporter from the San Diego Evening Tribune, he had become familiar with an attractive piece of property on a placid lagoon near Carlsbad around 1958, when he owned a ranch house at San Luis Rey and frequented the Del Mar track. He said he bought the first thousand acres for about $2000 an acre in 1962, and Adelson and Molasky's Paradise Homes bought another 2000 acres.
Roen told the reporter that each of the four partners had put up $1 million. He said they were "avid golfers," so they built the golf course first, then stables for horses, tennis courts, a hotel, and finally the spa. "We figured to capitalize on the fad for losing weight," Roen said. In 1964, he added, the Teamsters made their first La Costa loan: $4 million. Before they were done in 1987, the Central States pension fund had pumped more than $97 million into La Costa and the partnership.
After the resort opened for business in 1965, local papers were full of hype for the real estate development that the four partners were marketing in conjunction with the hotel. "Robert Stirling (Anne Jeffreys), Yvonne de Carlo, and her stunt man husband Bob Morgan, and George Sherman, director of the Daniel Boone show recently bought home sites," reported Frank Rhodes of the San Diego Union in September 1965. "Phil Harris and Hoagy Carmichael just bought home sites," Rhodes reported again that December. He added that "the managing director of the new La Costa spa will provide milk baths for his beauty patrons" and would "soon ask the health department to set up the rules for the operation."
Though it wasn't played up in the local press, word soon began to get around the underworld and in law-enforcement circles that La Costa was more than just a hangout for harmless Hollywood denizens. As the infusion of Teamster loans grew into a virtual flood of cash, those who had so generously sponsored the resort turned into some of its best customers. One of La Costa's biggest fans was Allen Dorfman, a Chicago insurance executive who ran the Central States pension fund.
Dorfman was no ordinary insurance man. He was the stepson of Paul "Red" Dorfman, an exprizefighter with close ties to Tony Accardo, who succeeded Al Capone as mob boss of Chicago. Known as a hoods' hood, Red became head of the Chicago waste-haulers union in the 1940s after the murder of the union's founder. He had assisted Hoffa's rise by introducing the ambitious young man to an assortment of organized-crime leaders, who in turn helped the rising labor boss extort and intimidate his way up through the Teamsters' hierarchy. In the early 1950s, Hoffa returned the favor to Red by setting up Allen Dorfman, who was then a college gym teacher, in the insurance business, handling the Central States health-and-welfare policies. Hoffa soon gave Dorfman a key role in running the pension fund as well, and Dorfman became Dalitz's financial go-between.
By the early '70s, Dorfman was so well established with both the Teamsters and the Chicago mob that he had become the virtual king of La Costa. In 1967, Hoffa had been convicted of jury tampering and pension-fund fraud and sent away to the federal prison in Lewisburg. He left Dorfman in charge of the Central States Pension fund, proclaiming, "Allen Dorfman speaks for me." "Dorfman was wealthy, politically connected, and fond of the good life," writes James Neff. "Silver-haired and handsomely distinguished, he fancied rubdowns and facials at Teamsters-financed La Costa Country Club, where he owned a condominium."
Dorfman worked every angle. In 1972, according to an account by Steven Brill, author of The Teamsters, Dorfman bought a three-year-old, 12-seat Grumman Gulfstream executive jet equipped with a bed and bar from his friend Frank Sinatra for $3 million. He leased the plane to the pension fund for $30,000 a month. The fund then turned the jet back over to Dorfman for his exclusive use. "Ostensibly Dorfman was to use the jet for his pension-fund consultant activities," wrote Brill, "but in 1972, [it was spotted] 25 different times at the small airfield that services La Costa."
"He dresses more stylishly" than his Teamsters cohorts, Brill described Dorfman in 1979. "He's better built, better kept, better groomed, and much younger looking than 54. He speaks better and prefers Rolls-Royces and Mercedes to Cadillacs and Lincolns."
Dorfman preferred the links of La Costa. "He loved the golf course," according to Brill. "He was the best golfer among the Teamsters' powers, and he had a beautiful condominium overlooking the fairway. Everywhere he went at La Costa, Dorfman was treated as if he owned the place -- which in a way he did; he arranged the $97 million in loans from the Central States pension fund that had built it."
For all his polish, however, Dorfman was never his own man. He was controlled by Chicago Mafia capo Joseph "Joey the Clown" Lombardo, described by Neff as "a cunning hit man who had worked his way up the ranks. With his wire-rimmed aviator glasses, thick black hair, and youngish looks, Lombardo, like Dorfman, possessed the smooth veneer of respectability so often sought by second-generation racketeers." Lombardo, who also hung out around the La Costa fairways, was a constant reminder to Dorfman that he was beholden to the mob.
Later they would both play an important role, along with Kansas City Mafia boss Nick Civella, in the life of La Jollan Allen Glick and his Teamster-backed Las Vegas casinos, the Stardust and the Fremont. According to Brill, Glick met with Dorfman and another pension-fund trustee at La Costa to discuss a loan for the King's Castle Hotel near Lake Tahoe. The deal later fell through when Nevada officials refused to license the mob-connected manager that Dorfman had picked to run the hotel. It was only the first of Glick's many contacts with Dorfman, who would eventually arrange Teamster funding for Glick's purchase of the Frontier and Stardust, where mob killer Tony "The Ant" Spilotro and Frank "Lefty" Rosenthal would skim millions for the Kansas City mob, plus a cut for the Teamsters brass. When Tamara Rand, a real estate woman with a grudge against Glick, started making noises about his business ethics, she was shot dead in her Mission Hills home.