Philadelphia Cosa Nostra Member And Associate Plead Guilty To Making And Collecting Extortionate Loans

The U.S. Attorney’s Office for the Eastern District of Pennsylvania released the below information:

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Philip Narducci, 56, of Philadelphia, and James Gallo, 44, of Philadelphia, entered pleas of guilty today before Judge Timothy Savage on several counts relating to making and collecting upon extortionate loans.  Narducci is a member of the Philadelphia organized crime family La Cosa Nostra (LCN), and Gallo is his associate.

At the hearing, the defendants both admitted that Narducci made usurious and extortionate loans involving tens of thousands of dollars to an unnamed borrower.  When the borrower failed to make weekly interest payments – sometimes with an interest rate above 80 percent - Narducci used threats of violence and actual physical assault to force the borrower to repay the loans.  One such incident occurred at Chick’s Philly, a bar and restaurant operated by Narducci, on Washington Avenue in South Philadelphia.  In one particularly disturbing exchange, Gallo told the borrower he should be scared of Narducci, saying, “He’s a killer you f***ing idiot.  He’s killed f***ing eight people.”

“Philadelphians deserve to be safe and live without the fear or threat of violence, especially from unscrupulous defendants like these,” said U.S. Attorney McSwain. “My Office takes organized crime in this District very seriously, and will investigate and prosecute it to the fullest extent of the law.”

“This organized crime network threatened the safety of our neighborhoods by extorting and assaulting Philadelphians,” said Attorney General Josh Shapiro. “Thanks to strong collaboration between our law enforcement partners, we were able to put an end to this criminal behavior and keep the people of Philadelphia safe. We will continue working together to investigate and prosecute organized crime wherever we find it.”

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Office of the Attorney General, and is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section, and Assistant United States Attorney Jonathan B. Ortiz.

Mob Talk 27 Video: South Philly Extortion and Loan Sharking Case

Veteran organized crime reporters George Anastasia and Dave Schratwieser discuss the federal extortion and loan sharking case against convicted Scarfo mob soldier Philip Narducci and reputed mob associate James Gallo.

You can watch the video via the below link:

https://www.youtube.com/watch?v=7STnBqae9As

Philadelphia La Cosa Nostra Member And Associate Charged With Making And Collecting Extortionate Loans

The U.S. Attorney for the Eastern District in Philadelphia released the below information:

An indictment was unsealed today against an alleged member of the Philadelphia, Pennsylvania organized crime family of La Cosa Nostra (LCN) and his alleged associate.  The indictment charges various crimes involving the making of extortionate loans, conspiracy, and collections of loans by extortionate means. 

The charges were announced today by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Field Division.

The defendants charged in the 15-count indictment are Philadelphia LCN Family member Philip Narducci, 56, and his associate James Gallo, 44.

All of the defendants were arrested today and will make initial court appearances in U.S. District Court in Philadelphia at 1:30 pm. EST. 

According to the indictment, Narducci allegedly made usurious and extortionate loans involving large amounts of money to a borrower.  As set forth in the indictment, when the borrower failed to make weekly interest payments, Narducci allegedly used physical violence through assault and threats of violence to force the borrower to repay the loans.  The indictment also alleges that, at Narducci’s direction, Gallo collected weekly interest payments on the usurious loans from the borrower and used threats of violence to facilitate the collections. 

Each charge of making extortionate extortions of credit, conspiracy to collect extensions of credit by extortionate means, and collections of extensions of credit by extortionate means making extortionate extensions of credit, carries a maximum penalty of 20 years in prison and a $250,000 fine. 

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section. 

The case is being investigated by the FBI, the Pennsylvania State Police, and the Pennsylvania Office of the Attorney General.

An indictment is merely an accusation and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.