I never knew the real story.
Not sure if that is accurate. I thought the issue with the cops took place in their hotel room. That would account for Saito "not being there" but when the cops showed up to the room he and Patera put up a helluva fight.
It's hard to say; there are several different versions that have been told over the years.
I remember when the old man tried exploiting Patera's jail sentence upon his return. He had a whole big comeback planned for Ken with Patera's own Coliseum Home Video in the works. This was all before Ken hurt his biceps.
In fact, Vince came up with an in-ring conference/vignette in which Patera would discuss his plans and choose a manager. Bobby Heenan had a dialogue exchange planned, but Vince shot it down. Heenan wanted to come to the ring meeting with a box of pastries, offer the box to Patera, and say, "Would you like some, 'sticky-buns?'" "Oh...I mean, would you like some sticky-buns?"