A "gangland pension" of up to half a million dollars had been paid to women who lived high on criminal profit.

Yet genuine victims of crime had been denied compensation.

The jackpot, totalling up to $493,000 for crime families, had been kept secret from taxpayers, who paid the bill.

A Sunday Herald Sun investigation uncovered public payouts to wives and girlfriends of gangsters Alphonse Gangitano, Victor Peirce, and Mark, Jason and Lewis Moran.

Victim advocates were angry and old-school gangsters sneer that those claiming compo are soft.

Underworld matriarch Kath Pettingill said: "In the old days you wouldn't have dreamed of going to government for money. Death was an occupational hazard."

Mrs Pettingill, who has buried three sons, said she did not seek compensation when the last of them, Victor Peirce, was shot.

Crime Victims Support Association president Noel McNamara said "gangsters' molls" were picking the pockets of genuine victims.

"This is ludicrous," he said. "Live by the sword, die by the sword."

Mr McNamara said the women "exploit the scheme, are protected by its secrecy and are experts when there's easy money to be made".

The investigation found Wendy Peirce and her four children received $153,000 in compensation and other payouts when partner and Victor was executed.

The Victims of Crime Assistance Tribunal refused to disclose payouts.

The widows defended the payments.

Ms Peirce said: "People say I have been living off the money Victor was supposed to have made from crime. But what have the kids done wrong?"

Critics of the system have called for open court compensation deliberations.

Mrs Pettingill said part of the money Victor's widow, Wendy, received was paid to his children -- the two youngest were at school at the time of his death. She said she understood the argument when young children were still dependent.

"Jason Moran's twins were in the vehicle with him at the footy clinic when he was shot and they would have suffered, so I can see why they should get something," she said.

He was charged with possessing cocaine, amphetamines and an unlicensed pistol.

After his arrest Benvenuto, 54, was interviewed by Purana detectives over the murder of Victor Peirce.

It is believed Benvenuto was formally cautioned and gave a "no comment" record of interview on legal advice.

Police have established that Peirce was waiting to meet Benvenuto when he was killed.

Detectives have been told that after Frank Benvenuto's murder a well-known underworld figure rang Peirce to tell him of the death. They remain intrigued as to how the figure knew of the hit before the information was made public.

Detectives are now investigating claims that Vince Benvenuto was asked to assist on behalf of a senior gangland identity.

The head of the Purana taskforce, Detective Inspector Gavan Ryan, said: "We are progressing on a number of gangland murders. We will keep going no matter how long it takes."

Benvenuto, of Black Rock, appeared before Deputy Chief Magistrate Paul Smith during a bail application, charged with trafficking large commercial amounts of cocaine, methylamphetamines, ecstasy and possession of an unregistered firearm.

After his arrest police searches had located a firearm, a taser gun, cash, a small amount of drugs and computer equipment, which was seized.

As a result of a Purana Taskforce investigation into the 2002 death of Victor Pierce, police began gathering intelligence on Benvenuto in 2006, by telephone intercepts, listening devices and camera surveillance.

Purana Taskforce Senior Detective Dale Fitzgerald said as a result of the investigations Benvenuto was found to be trafficking large amounts of cocaine, methylamphetamines and ecstasy.

"We established over nine months Mr Benvenuto was trafficking three to four ounces (of cocaine) per week," Detective Fitzgerald said.

Detective Fitzgerald told the court this is evident from Benvenuto's own admissions.

"We've (also) established he's trafficked over nine months, five or six ounces of methylamphetamine."

Detective Fitzgerald said Benvenuto had also trafficked up to 30,000 pills of ecstasy over the same period.

"His trafficking was on a daily basis.

"Everything he talks about is quantity and quality."

Detective Fitzgerald said there were more than 20,000 telephone calls intercepted during the investigation and some calls recorded Benvenuto boasting about his relationships with other Melbourne gangland identities, including Nik Radev, who was murdered in Coburg in 2003.

The court heard Benvenuto, a licensed finance broker, conducted alleged drug deals from his Caulfield office.

Senior Detective Fitzgerald told the court Benvenuto's father was involved with the market gardeners.

When Andrew McKenna, for Benvenuto, asked Detective Fitzgerald if Benvenuto came to police attention as result of Purana activities, he replied: "He's a suspect in relation to the murder of Victor Peirce."

Benvenuto's sister (who asked not to be named) told the court her mother's house, valued at $1 million, could be used as surety for her brothers bail.

Mr Smith did not grant bail to Benvenuto and remanded him in custody to reappear in December 2007.

Also interviewed of the Peirce murder was Steve Kaya, a close Gatto associate and a man described by the Age as a constant companion of Faruk Orman.

On October 8, 2007, the Age reported that Mick Gatto was under fresh investigation over his alleged links to the gangland murder of Victor Peirce.

Mr Gatto, who is heavily involved in the state's building industry, was being scrutinised by Victoria Police's Purana taskforce over the killing of Peirce.

Mr Gatto was allegedly connected to the murder in the brief of evidence served on Orman, although The Age believes there is insufficient evidence to warrant his charging.

The Age reported that one piece of the puzzle in the investigation is photographs secretly taken of Gatto meeting another member of the Benvenuto family in the middle of a city park 48 hours before Peirce's murder.

Police were investigating Mr Gatto's dealings with the Benvenutos in the 48 hours before Peirce's murder as part of allegations that he had prior knowledge of the murder.

Peirce had arranged to meet one of the brothers about the time of his murder.

Mr Gatto's lawyer, Brian Rolfe, who is also acting for Orman, told The Age that "there is not the slightest possibility of Mr Gatto being implicated (in Peirce's murder) in any way".

Mr Gatto has previously denied he is involved in any wrongdoing and has claimed police and the media refuse to leave him alone to pursue his extensive business interests.

On December 24, 2007, John Silvester wrote in the Age that the Purana gangland taskforce had launched a long-term investigation into Italian organised crime, including several unsolved murders.

Silvester wrote that detectives are looking into five "hits" they suspect may have been ordered by leading Italian-Australian gangsters. These include the murders of Gerardo and Vince Mannella, Joe Quadara, Frank Benvenuto and Victor Peirce.

The cases have been officially switched from the homicide squad to Purana.

The first phase for the taskforce was to concentrate on the murders ordered by drug dealer Carl Williams. Williams was earlier this year sentenced to 35 years' jail for the murders of Jason Moran, Michael Marshall, Lewis Moran and Mark Mallia.

The second Purana phase was to investigate Tony Mokbel's drug syndicate, uncover his hidden financial network, and find him. On June 5 this year Mokbel was arrested in Greece and charged with two murders and a string of drug offences. He is expected to be extradited by mid-next year.

Detective Superintendent Richard Grant said Purana would take on new targets next year. He said intelligence files were being checked to identify a new crime ring that required long-term investigation.

Meanwhile, homicide investigators have found that a hitman who worked for Williams also worked for Italian gangsters. Andrew "Benji" Veniamin was considered to be Williams' loyal lieutenant, but police now believe he carried out three contract killings for Italian gangsters before Williams recruited him.

They believe his first known victim was Joe Quadara, and he remains the suspect for the murders of Frank Benvenuto and Victor Peirce.

Police suspect Veniamin was the gunman in seven underworld murders. They say he shot dead Dino Dibra, on October 14, 2000, Paul Kallipolitis, whose body was found on October 25, 2002, and was the main suspect in the murder of standover man Nik Radev, who was shot dead on April 15, 2003. Radev had an appointment to see Veniamin on the morning he was murdered, and was also part of the torture team that grabbed and killed Mark Mallia in August 2003.

Police say that both Peirce and Veniamin worked for Benvenuto at different times when the apparently respectable businessman felt the need to intimidate enemies at the wholesale fruit and vegetable market.

Veniamin was shot dead by a Melbourne identity, Mick Gatto, on March 23, 2004 in a Carlton restaurant. Gatto was acquitted of murder on the grounds of self-defence.

Purana detectives working on the Italian murders have arrested a man they allege was the driver when Veniamin ambushed Peirce in Bay Street, Port Melbourne.

The court heard Peirce] was gunned down by Andrew Veniamin in a hearing for the accused getaway driver, 26, of Sunshine, who appeared at a commital hearing, charged with the murder of Peirce six years before.

Defence barrister Robert Richter QC told the court there was no question that "Benji" Veniamin killed Peirce, saying he undoubtedly planned and carried out the execution.

Mr Richter said much of the case against his client was based on claims by Venimain made to other parties including an informer that may not be admissible.

The informer is due to give evidence tomorrow.

Orman was remanded in custody.

On March 12, 2008, an underworld associate was asked if it was okay for hitman Andrew Veniamin to kill Victor Peirce, a court witness said.

The witness, known as witness B for legal reasons, told the court he approached underworld associate Michael Laverde two weeks before Peirce's murder to ask if it was okay for Veniamin to kill him.

He told the court he discussed the planned hit with Mr Laverde at his dry-cleaning business in suburban Coburg.

"I approached him because I thought he may have been friends with Victor Peirce," witness B told the court.

"He didn't care, as it was nothing to do with him," he said.

Witness B said that in the underworld there was an unwritten understanding if someone had been targeted, that it was discussed.

"In the underworld, if people are going to get knocked they ask others about it," witness B said.

"Some ask and some don't.

"Usually in the underworld ... if we can try to stop a shooting we will."

Witness B told the court that Veniamin confessed to Peirce's murder.

He said that Veniamin told him that he and Orman had planned to meet Peirce in a car park but saw him in Bay Street and decided to pull up alongside his car.

Witness B has denied any role in Peirce's murder.

He also told the court that Veniamin, who was shot dead in a Carlton restaurant in 2004, confessed to murdering another crime figure Dino Dibra in 2000.

He alleged that Orman had also been Veniamin's get-away driver in that murder.

On March 13, 2008, the court was told Victorian detectives were not told of phone intercepts which could have led them to the alleged killers of Peirce until five years after he was shot dead.

Melbourne Magistrates Court was also told an underworld associate was asked if it was okay for hitman Andrew Veniamin to kill Peirce.

Purana Taskforce Detective Sergeant Boris Buick told the court Orman became a suspect in Peirce's murder after the police informer known only as witness B made statements to police in 2006.

Those statements were corroborated by Australian Crime Commission telephone intercepts, Det Sgt Buick told the court.

"It was when he (Orman) was first nominated," he said.

"And after a review of Australian Crime Commission telephone intercepts which corroborated his (witness B) statements."

But he told the court Purana detectives did not know about the phone intercepts until five years after Peirce's murder.

"Telephone intercepts were held by the Australian Crime Commission and were not released to us until five years later," Det Sgt Buick said.

He said police had information showing Orman picked up Veniamin on the night of Peirce's murder, and both men's mobile phones were not used between 8.30pm and 11pm.

"It was about 8pm or shortly after on May 1, 2002 (Orman picked up Veniamin)," Det Sgt Buick said. "Both Veniamin and Orman turned their phones off during the time of the murder."

Witness B told the court he approached underworld associate Michael Laverde two weeks before Peirce's murder to ask if it was okay for Veniamin to carry out the hit.

He said he discussed the planned hit with Mr Laverde at his dry-cleaning business in suburban Coburg.

"I approached him because I thought he may have been friends with Victor Peirce," witness B said.

"He didn't care, as it was nothing to do with him."

Witness B said it was common for underworld figures to discuss when someone had been targeted, in order to avoid deaths.

"In the underworld, if people are going to get knocked they ask others about it," witness B said.

"Some ask and some don't. Usually in the underworld ... if we can try to stop a shooting we will."

Witness B has denied any role in Peirce's murder.

The court also heard Mick Gatto helped Andrew Veniamin "set up"Peirce, who was killed before he could get revenge on the pair for killing Frank Benvenuto.

The underworld informer told police Peirce was murdered after he found out that Gatto had ordered Veniamin to kill Benvenuto.

Benvenuto, who hired Peirce as protection after a series of disputes at the market in the late 1990s, was shot dead outside his Beaumaris house on May 8, 2000.

"About two years after Frank's murder, Andrew said he heard Peirce had found out it was him who had killed Frank and he was worried that Peirce was going to get revenge on him and Mick Gatto. That's why he asked Mick to help him set up Peirce," the informer told police.

He said Veniamin had previously worked for Benvenuto but changed allegiances when Gatto found out Benvenuto had put a contract on his life.

"Andrew told me that Gatto gave him an ultimatum: that he come and work for him and take care of Frank Benvenuto or else Andrew would cop it," he said.

That evening Gatto denied the allegations, describing the informer as a renowned liar and the dead men as his friends, before adding: "The truth will come out."

The informer disputed rumours that Carl Williams ordered Peirce's murder because he reneged on a $200,000 deal to kill rival gangster Jason Moran. "(Williams) hadn't even met Andrew at this stage, as I was the one who introduced Andrew to Carl when he got out of jail after Peirce's murder," he told police.

Two statements made by the informer were tendered to Melbourne Magistrates Court.

The informer, a drug dealer who has confessed involvement in two gangland murders, said Orman was the driver for Veniamin

The informer said Gatto had Frank Benvenuto's brother, Vince Benvenuto, set up Peirce, to whom he was supplying drugs.

He said Vince Benvenuto arranged to meet Peirce at the rooftop car park of a Port Melbourne supermarket but, when Pierce didn't turn up, they arranged another meeting the following night.

The informer said Veniamin was "obsessed" with getting Peirce and became depressed when Pierce didn't show up to the first meeting. "Andrew's reputation was that of a killer. That was his profession and he loved it," he said. He said Veniamin asked for Gatto's help because he was having "a lot of trouble finding Peirce".

In the March 16, 2008, Sunday Herald Sun, Mick Gatto broke a three-year silence to refute claims he was behind several unsolved underworld hits.

Gatto and his legal team said they have information that contradicts the allegations made against him.

Mr Gatto's team may produce documentary evidence in a bid to clear his name.

Mr Gatto and his lawyers say his name is being tarnished despite the fact that there are no charges against him.

"I find these allegations scurrilous," Mr Gatto said.

"I've never arranged a hit on anyone."

Mr Gatto said he believed he was being defamed as part of a personal vendetta.

He said he believed it was happening because as far as police were concerned, "I'm the only one who's got through the loop".

"It's annoying for me. It's annoying for my family. It's annoying for everyone. Personally I just want to be left alone."

Mr Gatto said he had told police he was prepared to be interviewed if he was suspected of anything, but they had not taken up the offer.

He said that otherwise his life was good.

"I've got no complaints. I try to mind my own business and keep my head held high," Mr Gatto said.

But he said he believed modern policing was eroding civil liberties.

Saying that the police have a powerful tool, Mr Gatto said "they can put people up (in custody) for 23 hours a day with no contact with the outside world until they've rolled over".

"And once they've rolled over, they turn them into puppets. Accused people who are innocent until proven guilty are locked away in a little eight-by-four room," he said.

"They drive people to the point that they are so desperate, they say anything at all to get out of there."

Mr Gatto had avoided the limelight since being acquitted of murdering Veniamin in 2005.

He said the previous week that reports Veniamin was "like a son to him" were not accurate.

"I used to see him once a week, once a fortnight. He was a powerful little figure over in Sunshine," he said.

A Victoria Police spokewoman declined to respond to Mr Gatto's comments.

On July 5, 2008, three $100,000 rewards were re-offered to help solve Melbourne gangland murders.

Detectives said they were closing in on several suspects in relation to the shootings of Peirce, Paul Kallipolitis and Francesco Benvenuto.

They said they believe the killings are linked and offered a $100,000 reward a murder for information leading to the arrest and conviction of those responsible.

Police said there were no rules stopping gangland figures such as Carl Williams receiving the rewards.

"I don't make that decision, but he is eligible to apply," Det Insp Bernie Edwards, of the Purana Taskforce, said.

Detectives believe Andrew "Benji" Veniamin was the shooter in all three murders, but they want to identify other people involved.

"We do not believe Andrew worked alone," Det Insp Edwards said.

He said involvement in the murders could include financing the hits, or providing or disposing of firearms and cars.

Purana detectives were "definitely closing in on a number of suspects", he added, and warned it might be time for anyone involved to hand themselves in "before we come and get you".

The suspects were known within the "gangland fraternity", but Det Insp Edwards refused to say whether any of them were already in jail.

Det Insp Edwards said he hoped the rewards, which had been offered separately at different times in the past seven years, would help people do the right thing and contact police.

"The code of silence wavers a lot when there's money involved," he said.

The Victoria Police board of management determines whether a reward application is successful.

"It depends on the information they provide (and) whether there is a successful prosecution," Det Insp Edwards said.

"Solving the three murders would take police a great step towards finishing the gangland murders."

Det Insp Edwards said it was getting easier to crack underworld crime because, while older criminals were a "lot stauncher", modern crooks were "a little bit self-centred".

On July 14, 2008, Vince Benvenuto was charged with the Peirce killing.

He was quizzed during the afternoon by detectives from the Purana taskforce and later appeared at the Melbourne Magistrates Court to face one count of murder.

He was further remanded in custody to reappear at Melbourne Magistrates Court on 6 October.

Purana detectives had successfully applied in Melbourne Magistrates' Court for permission to question the 55-year-old.

Magistrate Dan Muling granted detectives four hours to interview Benvenuto.

Police said they were closing in on several suspects they believe were involved in the deaths.

On July 15, 2008, the Age reported that the charging of Vince Benvenuto had put a fresh focus on Mick Gatto's alleged links to the same killing.

Law enforcement authorities have information that Gatto was in contact with members of the Benvenuto family before Peirce's killing. On one occasion shortly before the murder, Gatto was covertly recorded meeting another member of the Benvenuto family in a city park.

It is believed that about the same time, Veniamin - who had formed a relationship with Gatto - was trying to find a way to lure Peirce to a location where he could be killed.

Another man, Faruk Orman, accused of being Veniamin's driver and has been committed to stand trial for Peirce's murder, is a close associate of another Gatto associate, Steve Kaya. Both Kaya and Orman were present when Gatto shot dead Veniamin in 2004.

An underworld informer told police, in a statement tendered to the Melbourne Magistrates Court during a committal hearing for Orman in March, that Mick Gatto helped Veniamin "set up" Peirce, who was killed before he could get revenge on the pair for killing Frank Benvenuto.

Mr Gatto has repeatedly denied any involved in Peirce's murder, telling The Age earlier in the month that the dead men were his friends.

Benvenuto shook his head as the murder charge was read out as he sat in the dock during a brief filing hearing.

Benvenuto was to return to court on November 3.

On July 14, 2008, Wendy Peirce pleaded guilty to threatening two of her dead husband's ex-girlfriends shortly before they were due to give evidence at a committal hearing for a man charged with his murder.

Peirce appeared in the Melbourne Magistrates Court charged with threatening to inflict serious injury on two women, who cannot be named for legal reasons.

She made the threats just weeks before a committal hearing in March for a man charged with Victor Peirce's murder.

A prosecution summary tendered to the court said Peirce threatened to harm one of the women in a phone call to Detective Sergeant Boris Buick, of the Purana taskforce, on February 19.

Peirce told Sergeant Buick she believed the woman "basically contributed to my husband's death".

Peirce threatened the other woman in an email sent from her daughter Katie's account, according to the summary.

She signed off as Wendy Peirce, before adding a postscript: "Don't think for one moment that I haven't forgotten you and will hunt you down like a mangy maggot that you are. That's not a threat, that's a promise."

Magistrate Peter Mealy bailed Peirce to reappear in the same court on August 14.

On July 16, 2008, it was reported that Gatto had said police should charge him over the two murders or back off.

Mr Gatto said police were yet to produce any evidence he had been involved.

"If they're going to come and arrest me, come out and do it," he told the Herald Sun.

"I'll come up trumps, I promise."

Mr Gatto accused the Purana Taskforce of "putting the squeeze" on two suspects in the Peirce killings to implicate him.

He said one of the men, who has been in custody for months, had been made a series of offers to name him as involved.

"It's just wrong. They shouldn't be allowed to do it," he said.

"There's been an agenda with me for a long time. It's why they're squeezing these blokes. Go out and get evidence."

Mr Gatto's legal representatives, Grigor Lawyers, wrote to Purana, accusing it of peddling innuendo about him.

The letter stated the talk was damaging his legitimate business activities and had the potential to endanger his life.

"Mr Gatto has answered questions in various interviews and hearings, both prior to and since his acquittal on a murder charge," it said.

"He remains prepared to fully co-operate with your investigators if he is able to assist with your inquiry.

"It would be most unfortunate if there was any suggestion that he had refused to co-operate with an investigation in any future proceedings that may involve him."

Victoria Police declined to comment on Mr Gatto's claims.

Mr Gatto said he knew Vince Benvenuto but only spoke to him every few months, and not in the lead-up to Peirce's death.

He said nothing had changed since he was acquitted in 2005 over the shooting death of Andrew Veniamin.

"It's been three years since I've been home. Nothing's changed," he said.

Mr Gatto said the situation reminded him of the scrutiny he was placed under after the 1988 killing of another gangland identity.

He was then questioned by homicide squad officers over the shooting of Joe Arena.

"It's exactly the same. There's not an iota of evidence," Mr Gatto said.

On September 15, 2008, a court heard Wendy Peirce used Facebook to tell one of her late husband's lovers that she planned to blow her head off.

Peirce, 50, of Port Melbourne, was jailed for six months after she pleaded guilty to two charges of threatening to inflict serious injury and one charge of stalking.

The Melbourne Magistrates Court was told that in February Peirce threatened two women - both former girlfriends of her late husband.