05/28/2026
Imagine a Chicago gunman/gangster who relaxed by running a dude ranch in Colorado and staging rodeos in Denver! That was "Diamond Jack" Alterie, real name Leland Varain, alias Louis Alterie. The nickname supposedly came from the large diamond-studded belt buckle he wore. "Diamond Jack" had been raised as a cowboy before entering into a life of crime in Chicago as a hit man and body guard for Dion O'Banion's South Side Gang. He was also a slugger for the Theatrical and Building Janitor's Union. A slugger is someone who extorts money, in this case, from theatre owners. O'Banion was one of Al Capone's early competitors for control of the bootlegging business. After O'Banion was murdered, Alterie decided it was time to head west. Among other land purchases in Colorado, he bought the Sweetwater Lake Ranch in 1927 and ran it as a dude ranch. He had it until 1932 when he could no longer pay the mortgage. During his time there he was shot by his brother, accosted fisherman who didn't rent boats from him for their recreational pursuits, and, at the same time, was known as one of the most generous people around. On November 8, 1932, "Diamond Jack" was involved in an altercation at the Hotel Denver. It resulted in Alterie shooting two innocent patrons of the Hotel. At his trial, Judge John Shumate of Glenwood Springs, sentenced him to 1-5 years in the state penitentiary. He was ultimately granted probation provided he left the state by February 1, 1933 and agreed he would not return for 5 years. Alterie returned to Chicago and on July 18, 1935 he was gunned down in the style of the "rented ambush". This was an excution technique which Alterie himself was said to have invented. It involved renting a room within shotgun range of an address that a marked man frequently visited until the opportunity presented itself for the hit. You can help preserve Glenwood Springs history by joining the historical society at GlenwoodHistory.org/donate
