The Street Hoodlums are a gang of degenerate, petty, and lowly thugs that commit various crimes in various neighborhoods in western Lost Heaven such as vandalism, mugging, and even sexual assault. They operate in Chinatown.
It was 1932. The Hoodlums had been causing troubles for the residents of Lost Heaven for quite some time, the Lost Heaven Police Department didn't do anything about it due to one of them being the City Councilor's son. One night, when Sarah was heading home, she was approached by several members of the gang and they assaulted her. Luckily she made it back home safely. The next day, at Salieri's Bar she told her father Luigi about what happened and he asked Tommy to take her home safely. They were then approached by the same gang from before and they tried to rape Sarah. Luckily, Tommy was able to beat them all up until they were scared and ran off. He then escorted Sarah back home safely.
The next day, Don Salieri was furious after hearing what happened the night before and he sent both Tommy and Paulie to teach the Hoodlums a lesson they wouldn't forget. After talking to Big Biff about the Hoodlums' whereabouts, they headed there and began beating up the gang members. However, the Hoodlums had armed themselves with firearms and the two were forced to use lethal force. After fighting their way through the gang members, they spotted two of the Hoodlums' assumed leaders. A car chase ensued and Tommy and Paulie eventually put a stop to them. Billy was killed by Paulie while Johnny was left there for dead. Tommy felt guilty of killing them as he couldn't imagine what his mother or Sarah would do if they saw what he did, but Paulie remarked that they are just animals and that he had better get used to it. The two quickly left the scene and headed back to Salieri's.
Even though most of the gang members were wiped out, Billy's death caused the Councilor to be angered and he began targeting several of Salieri's businesses in the city. What made matters worse was that Johnny was revealed to have survived and he identified Tommy as Billy's murderer when Tommy escaped to the church from the police after doing a previous job.