At a crowded gambling hall, Henry remembers the first time he met Jimmy Conway. Jimmy makes quite an entrance: hugs, kisses, and slipping lots of folded $20 bills in people's pockets.
Jimmy is one of the most feared guys in the city, Henry tells us. He first went to jail at age 11 and started making mob hits at 16. Real precocious. But, what he really loves to do is hijack and steal things.
Then, we get a montage of Jimmy stealing stuff. Oh, and paying off the cops.
Behind a hijacked cigarette truck, Jimmy introduces Henry to Tommy DeVito.
Cut to Henry and Tommy selling the hijacked smokes out of the back of a car. Henry gets pinched.
After his court hearing, Jimmy slips Henry some money, calling it his "graduation present." Everybody gets pinched, but Henry did it right: he didn't rat anybody out.
Outside of the courtroom, the whole gang is there: Paulie, Tuddy, Tommy, everybody. They congratulate Henry as if he was class valedictorian. Man, all we got for our graduation was a clock radio.