A longtime Brooklyn resident, 24-year-old Schuster recognized wanted bank robber Willie Sutton while riding on a New York City bus in February 1952. Following Sutton to a garage, Schuster quickly notified police of Sutton's whereabouts, resulting in the robber's later arrest as Sutton was changing a dead battery from his car, which had stalled in the street. After receiving a modest amount of publicity from New York City press, Schuster was murdered outside his home on March 8, 1952, having been shot twice in the groin and once in each eye. Although a manhunt was quickly organized by police, their search failed to apprehend any suspects. Eventually, Frederick J. Tenuto was suspected of Schuster's murder. Tenuto, an associate of Sutton's, was also on the FBI's Ten Most Wanted list and positively identified by witnesses as having left the scene of the crime. According to Detective Jack LaTorre, over 300 suspects were questioned, one being a local fence for stolen goods.
Death and aftermath
According to testimony in 1963 by Mafia turncoat Joseph Valachi, Gambino crime family boss Albert Anastasia allegedly ordered the murder of Schuster. When Anastasia saw Schuster being interviewed on television, he allegedly said: "I can't stand squealers! Hit that guy!" However, many people in law enforcement were skeptical. No one was ever arrested in the Schuster murder. Schuster was buried in Montefiore Cemetery in Springfield Gardens, Queens. Schuster's estate sued New York City for failure to protect him. In accordance with the law at that time, their complaint was dismissed and the dismissal was affirmed by the intermediate appellate court. In general, governments were held not to owe protection obligations to citizens for fear of straining public treasuries. However, in a landmark case, New York's highest court reversed the decisions and ruled that in a case where a member of the public has furnished the sort of cooperation that the police have asked the public for, an obligation of protection of a person who comes forward to help the police is created. Schuster v. City of New York, 5 N.Y.2d 75. This important precedent meant the case could go to trial. The City of New York eventually settled for $41,000, a reasonably large sum at the time, especially considering that even the presumably exaggerated sum the complaint sought was $1,000,000.
