Peter Clemenza was one of the two original caporegimes in the Corleone family (the other being Salvatore Tessio), ruling over the family's territory in The Bronx.
As Vito's most trusted friend, Clemenza was assigned to keep a watchful eye on his son-in-law, Carlo Rizzi and the bookies that he owned in Hell's Kitchen. Clemenza kept tabs on Carlo through the use of his contact 'Sally Rags', who informed him of Sonny Corleone's brutal assault on Carlo in 1946. The war later claimed Sonny's life, and Vito returned from the hospital following the assassination attempt.
Peter Clemenza visited Sicily in 1950, where he met Michael Corleone in order to arrange his safe return to America and also to oversee the safe passage of a family friend, Salvatore Giuliano. He also picked out new recruits for the Corleone family in Sicily. At this time he was briefly reunited with his brother, Domenico Clemenza. However, Giuliano was killed by his friend Gaspare Pisciotta before he could make his escape. Michael and Clemenza were able to safely return to America.
Clemenza played a key role in aiding Sonny following the shooting of Vito, despite initially being suspected of setting the Don up.
When Paulie Gatto was discovered as the true traitor, Clemenza was entrusted with the task of eliminating him, enlisting rising associate Rocco Lampone to carry out the hit. Clemenza took Paulie's betrayal personally, having shepherded Paulie's rise through the family over the heads of more experienced and loyal soldiers. In order to lull Paulie into a false sense of security, Clemenza and Rocco drove around in a car with him for a few hours, looking for good sites where the Corleone men could "go to the mattresses" in the imminent war. He also collected some cannoli for his wife. After this, Clemenza ordered Paulie to pull the car over so he could urinate, Rocco then shot Paulie in the back of the head three times. Rocco succeeded Paulie as a button man and Don Corleone's new driver.
When Vito's youngest son, Michael, offered to kill both Virgil Sollozzo and Captain Mark McCluskey, who was on Sollozzo's payroll, Clemenza taught him how to use such a gun to commit a murder while reducing the chances of being caught. The plan was successful, and while Michael was hiding out in Sicily, Clemenza prepared for an all-out war against the remaining four families.
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