DiVarco was born in Chicago, Illinois. He and Joe Arnold were partners in a local haberdashery during the 1960s. As an associate of North Side caporegime Vincent Solano, DiVarco later oversaw the day-to-day operations of the Rush Street crew. During the 1970s and 1980s, these activities included illegal gambling, loan sharking, extortion, protection, "street tax" collections, and the operation of several adult bookstore operations. DiVarco, along with James Alegretti watched over all the Outfit-owned night clubs, gambling halls, and brothels in the area. DiVarco owned and controlled a glassware company and glasswasher distributorship. He was basically under the rule of Ross Prio. DiVarco was said to have performed many hits for Outfit boss Sam Giancana. After Giancana was murdered, DiVarco
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