After the death of Don Peppone, Don Morello divided the family into two separate families, with Morello based in eastern Lost Heaven and Salieri in Little Italy. With the City Councilor on their side and Sergio Morello Jr. controlling the Union in Lost Heaven, the Morellos became the most powerful and feared family in Lost Heaven. However, all this power and wealth wasn't enough for Morello, so he started to attack the Salieri Crime Family, creating tension between the two families. In the autumn of 1930, Morello ordered a hit on Salieri's trusted men, Paulie and Sam. However, the hit failed, and the family soldiers eventually tracked down Tommy for helping the Salieri family but were killed by Salieri's men. Salieri decided to get revenge by torching some vehicles outside Morello's Lounge Bar. The mob war officially began in 1935 after the failed assassination attempt on Salieri in Pepe's Restaurant.
After the recent attack by Morello, Salieri decided to fight back by eliminating their key figures, the City Councilor and Sergio Morello. Finally, Salieri planned a hit on Don Morello during a production of Othello in the Opera House. The show finished early, but Tommy and the others pursued Morello, who tried to escape but was finally killed. With the deaths of the family's key figures, this led to the Morello family's downfall and the rise of the Salieri family.
- Don Morello (boss, deceased)
- Sergio Morello Jr. (underboss, deceased)
- Louie (soldato, deceased)
- Joey (soldato, deceased)
- Morello Associate (associate, deceased)
- Corleone Hotel Manager (associate, deceased)
- City Councilor (associate, deceased)
- The Money Thief (associate, deceased)
- The Prosecutor (associate, deceased)