That particular group of Mormons involved in the business of gambling and alcohol sales was in the public eye to a significant degree (and I suspect even moreso in the Mormon community).As the story goes, Hughes hired Mormons, because he felt he could trust them. He had many business dealings.
Why would the Church have a reaction?
Some of the opinions here have been that Mormons shouldn't take part in businesses that are associated with drinking, gambling, pornography, etc. It strikes me that if the Church would ever have been inclined to give an authoritative pronouncement on the issue, the attention directed towards Hughes' "Mormon Mafia" would have provided an opprotune occasion to do so.