In the late 1930’s, Chicago mobster Anthony Giancana, past member of the 42 Gang and leader of the emerging Taylor Street faction of the Outfit, was sentenced to four years in the federal penitentiary at Terre Haute, Indiana for operating an illegal whisky still.152 There, Giancana met “Big” Ed Jones who was serving time for income tax evasion. Jones reportedly told Giancana about the vast sums of money that he had made in the policy racket. Released from Terre Haute in 1942, Giancana began making plans for the Outfit’s eventual takeover of the policy racket. . .Ed Jones and his brother George moved toMexico and left the policy racket to Theodore “Teddy” Roe, their partner in the Maine-Idaho-Ohio wheel.
BTW Giancana wasn't really the Boss of Bosses: that was Carlo Gambino. But he was promoted to Accardo's underboss as a result of the Jones incident you describe, which might be what you're thinking of ("He was made Underboss to Tony Accardo as a reward for the Eddie Jones affair.": http://www.crimelibrary.com/gangsters_outlaws/mob_bosses/giancana/up_5.html).
LOL......"moved" to Mexico?
According to Jacobs, who did not name names, Jones did not move to Mexico willingly. It took a lot of (ahem) muscle and gore for Giancana to oust Jones and take over the operation.
The Big Boys wanted Jones whacked but Sam saved his life. Jacobs quoting Giancana on his generosity in setting Jones up in a Mexican villa: "A lifetime of the s***s is still a lifetime."