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Though, as for Luciano saying that about the Mafia not being real - well that's just first-class BS!
Hoover was too busy deporting "Reds" in the twenties, chasing bank robbers like Dillinger and Pretty Boy Floyd in the thirties, looking for sabateurs in the forties, hounding civil rights leaders in the fifties and sixties.
Other than what OHMSS said, this is what some history books might read. Most serious books on the subject of the American LCN tell us that the mob knew all about Hoover's secret homosexuality and had incriminating photos and other evidence. They used to feed him horse racing tips through their mutual friend, the gay lawyer Roy Cohn, as well as other small favors that benefited him. Hoover knew all about their existence and power and had too much to lose as far as his public image and possibly his job. That's why he dragged his feet for so long as far as doing something about the LCN. Once Apalachin happened, he had no choice but to acknowledge their existence and allow some of his people to pursue them. Even up until the end of his tenure, Hoover never committed to fully taking them down.
Hoover's alleged homosexuality has never been proven, in fact, NYT author and journalist Tim Weiner told NPR
"This is a myth. It's been around since 1937, since Hoover went after homosexuals and government. It was - gasoline was poured on the embers of this by Bill Donovan, Hoover's mortal enemy in government. It's been around forever. Now, what do we know that this? Hoover never married. He never had an adult relationship with a woman, other than his mother, whom he lived with until he was 43, the day she died. Hoover was also inseparable from his number two man at the FBI, Clyde Tolson.
Now, the evidence - if you can call it that - that Hoover was a secret homosexual rests almost entirely with an account by a British journalist who's only witness is a convicted perjurer. The evidence on the other side is strong. Hoover never loved anyone, except his dogs. He was married to the FBI. And the idea that he was a secret homosexual who, you know, wore tutus for fun is a myth. Unfortunately, that's the only thing anybody seems to know about him today"
Read more: http://newsbusters.org/blogs/tim-graham/2012/02/16/liberal-author-crushes-npr-hosts-hope-spread-movie-myth-gay-j-edgar-hoov#ixzz2ZsegDRfA
"Harry Hay, founder of the Mattachine Society, one of the first gay rights organizations, said that Hoover and Tolson sat in boxes owned by and used exclusively by gay men at the Del Mar racetrack in California".
Actress and singer Ethel Merman, who was a friend of Hoover's since 1938, said in a 1978 interview: "Some of my best friends are homosexual. Everybody knew about J. Edgar Hoover, but he was the best chief the FBI ever had".
Luisa Stuart, a model who was 18 or 19 at the time, told journalist Anthony Summers (who wrote a book about Hoover that contradicts Tim Weiner and presented various eyewitness accounts) that she had seen Hoover holding hands with his rumored lover, associate director Clyde Tolson, as they all rode in a limo uptown to the Cotton Club in 1936.
People can choose to come down on either side of the coin on this one, personally I could care less. But what cannot be disputed is that Roy Cohn was both an infamous LCN lawyer plus a personal friend of Hoover and a homosexual as well. If Hoover was not a homosexual with something to hide from the public, why was he so obviously reluctant to acknowledge their existence or commit resources to fighting them? They obviously had something both dirty and devastating on the man for him to deny their undeniable political and economic power. It's antithetical to his reputation as America's #1 crime fighter, so consumed with internal threats to the government. Then there's the deal made with Luciano for NYC dock protection against Nazi saboteurs and his invaluable assistance in the Allied invasion of Sicily, his use of the infamous Colombo capo and hit man Greg Scarpa, Sr, as a prized mole, and his even more egregious failure to investigate the ties between Oswald and members of Carlos Marcello's New Orleans/Dallas LCN family that included Oswald's assassin Jack Ruby, not to mention Oswald's uncle was a bookmaker in Marcello's organization, and it was common knowledge that both Marcello and Tampa boss Santo Trafficante, Jr were sworn enemies of the Kennedy's and had made threats against them. Oswald was indeed the patsy he claimed, and the magic bullet theory utter nonsense bought by too many gullible people with their heads up their asses.