Par Funding Principals Charged In A RICO Indictment In Addition To Pending Charges Of Securities Fraud, Extortion, Tax Crimes, Perjury, And Obstruction

The U.S. Attorney’s Office in Philadelphia provided the below information on February 27th:

PHILADELPHIA – A second superseding indictment was filed yesterday charging a violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) by three principals of Complete Business Solutions Group, Inc. d/b/a Par Funding (“Par Funding”) and also charging various other crimes included in a previous superseding indictment, including securities fraud, extortionate collection of credit, tax crimes, perjury, obstruction of justice, witness retaliation, and witness tampering, announced United States Attorney Jacqueline C. Romero. These principals are Joseph LaForte, 52, Joseph Cole Barleta (“Joe Cole”), 39, and James LaForte, 46.

A separate indictment was filed charging Joseph LaForte, and his wife, Lisa McElhone, 43, with tax evasion, a conspiracy to avoid paying taxes, and a scheme to avoid paying approximately $1.6 million in income taxes due to the State of Pennsylvania by fraudulently claiming that their residence was Florida, when in fact they resided in Pennsylvania.

According to the second superseding indictment, codefendants Joseph LaForte, Joe Cole, and James LaForte, and others, were part of an association-in-fact RICO enterprise that conspired to commit a number of predicate crimes, including crimes related to the fleecing of Par Funding’s many investors and the extortionate collection of credit from Par Funding’s many merchant-customers. The indictment alleges that when the defendants were sued civilly by the SEC in July 2020, which resulted in a receivership taking over control of Par Funding, the enterprise took various illegal steps to attempt to regain control of Par Funding and to “defeat” the government, including through acts of obstruction of justice, witness tampering, and retaliation. The enterprise was structured with Joe LaForte as its leader and final decisionmaker, and it operated through various family members and close associates.

The indictment alleges that the principal purposes of the LaForte Enterprise were as follows:

1.     to generate money for its leadership, members, and associates through the commission of various criminal acts, such as securities fraud, wire fraud, the extortionate collection of debt, obstruction of justice, and retaliation;

2.     to conceal from investors, auditors, the government, and law enforcement that its members were self-dealing and enriching themselves to the detriment of Par Funding’s investors;

3.     to conceal Joseph LaForte’s identity, criminal history, and role as the leader of the enterprise and the functional Chief Executive Officer of Par Funding from Par Funding’s investors, customers, and auditors, and from the government and law enforcement, including through misrepresentations, false statements, and other means;

4.     to use extortionate means, including threats of violence, to collect money owed to Par Funding by its merchant-customers;

5.     to maintain control over Par Funding after Par Funding was put under the control of a court-appointed receiver, including by acts of obstruction and retaliation intended to frustrate and interfere with the receiver’s efforts to control Par Funding; and

6.     to protect the enterprise and its members from detection, apprehension, and prosecution by law enforcement.

It is alleged that as part of their fundraising efforts, these defendants and their conspirators caused false and misleading information to be conveyed to investors regarding various issues, including:

• Joseph LaForte’s true name, his role at Par Funding, and his criminal history;
• Par Funding’s underwriting process;
• the diversity of the company’s MCA portfolio;
• Par Funding’s default rate;
• Par Funding’s financial success and profitability;
• the company’s insurance; and
• the defendants’ self-dealing.

For instance, the indictment alleges that although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife, Lisa McElhone, as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company. It is alleged that Joseph LaForte, Joe Cole, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors.

The indictment also alleges that Joseph LaForte and James LaForte conspired with an individual named Renato “Gino” Gioe to participate in the extortionate collection of credit. It is alleged that during the course of Par Funding’s operations, these individuals made hostile, threatening, and intimidating communications to Par Funding’s customers in person and over the telephone in order to collect on delinquent MCAs. For example, the indictment alleges that Joseph LaForte threatened to “blow up” a delinquent customer’s home in May 2019 and asked another delinquent customer in August 2019 whether the customer had heard of “cement shoes.” In addition, the indictment alleges that in May 2018, James LaForte told one customer that he was a “soldier for the family” who had torched people’s cars and kicked people’s teeth in.

Furthermore, the indictment alleges that Joseph LaForte committed a variety of tax crimes. It is alleged that Joseph LaForte committed tax crimes by failing to report millions of dollars in cash kickbacks that he personally received from a Par Funding customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS.

It is further alleged that Joseph LaForte and Joe Cole each committed perjury twice during depositions in federal lawsuits against Par Funding, making misrepresentations regarding various matters. For instance, the indictment alleges that Joseph LaForte lied under oath about his knowledge of his wife’s role at Par Funding, Joe Cole’s role at the company, and the company’s default rate. The indictment alleges that Joe Cole lied under oath about who was on Par Funding’s credit committee (which Joseph LaForte ran) and who ran Par Funding.

Finally, the indictment alleges that Joseph LaForte and James LaForte engaged in obstruction of justice, witness tampering, and retaliation. Specifically, it is alleged that in late February 2023, on the streets of Center City Philadelphia, James LaForte, with the assistance of and in coordination with Joseph LaForte, physically assaulted counsel for the receiver for Par Funding in a lawsuit brought by the U.S. Securities and Exchange Commission in the Southern District of Florida. Moreover, in connection with the same lawsuit, the indictment alleges that Joseph LaForte threatened to cause serious bodily injury to another individual in November 2022. Lastly, it is alleged that James LaForte made threats of violence to multiple parties in early 2023, in an effort to interfere with the SEC lawsuit, a federal grand jury investigation, and an anticipated federal prosecution, as well as to retaliate against these parties.

If convicted of all counts charged against them, the defendants are facing decades or more of imprisonment, and they also face full restitution, a fine, and a period of supervised release and/or probation.

In a separate indictment, it is alleged that Joseph LaForte and Lisa McElhone committed several tax crimes. For instance, it is alleged that the married couple defrauded the Commonwealth of Pennsylvania out of more than approximately $1.6 million of state taxes by falsely claiming to be residents of Florida, even though they worked, lived, and spent more than 300 days per year in Pennsylvania. Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone worked together to evade the payment of over half a million dollars of employment taxes that had been imposed on Joseph LaForte in connection with companies that he had operated in the mid-2000s.

An indictment charging Complete Business Solutions Group, Inc., doing business as Par Funding, with wire fraud, securities fraud, and conspiracy, was also filed.

The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the Federal Deposit Insurance Corporation-Office of Inspector General, and Pennsylvania State Police and is being prosecuted by Assistant United States Attorneys Patrick J. Murray, Alexandra Lastowski, and Matthew Newcomer. The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.       

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Ten Members And Associates Of The Gambino Crime Family Arrested In Coordinated U.S.-Italian Takedown: Defendants Charged In Brooklyn Federal Court With Racketeering Conspiracy Involving Violent Extortions, Assaults, Arson, And Union-Related Crimes

The U.S. Attorney’s Office, Eastern District of New York released the below information:

A 16-count indictment was unsealed today in federal court in Brooklyn charging 10 defendants with racketeering conspiracy, extortion, witness retaliation, and union-related crimes committed in an attempt to dominate the New York carting and demolition industries. All ten defendants are in custody and are scheduled to be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.  In connection with the arrests, federal authorities executed search warrants, one of which resulted in the seizure of multiple firearms from an associate of the Gambino crime Family. 

In a coordinated operation, Italian law enforcement today arrested six organized crime members and associates who are charged with, among other crimes, mafia association and connected criminal offenses. One individual remains at large.

The defendants are Joseph Lanni, also known as “Joe Brooklyn” and “Mommino,” an alleged captain in the Gambino organized crime family, Diego “Danny” Tantillo, Angelo Gradilone, also known as “Fifi,” and James LaForte, alleged Gambino soldiers, Vito Rappa, alleged U.S.-based Sicilian Mafia member and Gambino associate, Francesco Vicari, also known as “Uncle Ciccio,” alleged U.S.-based Sicilian Mafia associate and Gambino associate, and Salvatore DiLorenzo, Robert Brooke, Kyle Johnson, also known as “Twin,” and Vincent Minsquero, also known as “Vinny Slick,” alleged Gambino associates. 

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Elizabeth Crotty, Commissioner and Chair, New York City Business Integrity Commission (BIC), announced the charges.

“As alleged, for years, the defendants committed violent extortions, assaults, arson, witness retaliation and other crimes in an attempt to dominate the New York carting and demolition industries,” stated United States Attorney Breon Peace.  “Today’s arrests reflect the commitment of this Office and our law enforcement partners, both here and abroad, to keep our communities safe by the complete dismantling of organized crime.” 

Mr. Peace expressed his appreciation to the New York Waterfront Commission, the Office’s law enforcement partners in Italy, including the Prosecutor of Palermo, the Polizia di Stato, the Servizio Centrale Operativo, and the Squadra Mobile of Palermo.

“These defendants learned the hard way that the FBI is united with our law enforcement locally and internationally in our efforts to eradicate the insidious organized crime threat.  Those arrested are alleged to have taken part in a racketeering conspiracy in an attempt to control the carting and demolition industries in the city.  The FBI will continue to lead the fight against organized crime and ensure that individuals willing to cross the line face punishment in the criminal justice system” stated FBI Assistant Director-in-Charge Smith.

“Today’s arrests should serve as a warning to others who believe they can operate in plain sight with apparent impunity – the NYPD and our law enforcement partners exist to shatter that notion,” stated NYPD Commissioner Edward A. Caban. “And we will continue to take down members of traditional organized crime wherever they may operate.”

“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” said DOL-OIG Special Agent-in Charge Jonathan Mellone.

“Investigating these matters is at the heart of BIC’s mission to ensure the industries under our regulation do not pose a risk to public safety. These arrests demonstrate that the influence of organized crime will never go unchecked,” stated BIC Commissioner and Chair Elizabeth Crotty.  “BIC thanks the NYPD, FBI, EDNY, and our other agency partners for their collaboration and excellent work on this case.”

As alleged in the government’s court filings and summarized below, members and associates of the Gambino crime family used violent extortions, fraud, theft and embezzlement schemes to infiltrate the carting and demolition industries to enrich themselves and the Gambino crime family, including by laundering criminal proceeds.  For example, in the midst of a financial dispute between Tantillo and the owners of Demolition Company 1, Tantillo and Johnson coordinated a violent hammer assault on the dispatcher for Demolition Company 1, which left the dispatcher bleeding and seriously injured.   

Extortions Related to the Carting and Demolition Industries

Tantillo, Rappa, Vicari and Johnson engaged in a violent extortion conspiracy relating to the demand and receipt of money from John Doe 1, who operated a carting business in the New York City area.  The extortion scheme involved threatening John Doe 1 with a bat, setting fire to the steps to John Doe 1’s residence, attempting to damage John Doe 1’s carting trucks, and violently assaulting an associate of John Doe 1.   In addition, Tantillo and Vicari were captured on judicially-authorized wiretaps discussing threats they made to John Doe 1 and John Doe 1’s father-in-law.  On one call, Rappa stated that Vicari “acted like the ‘Last of the Samurai,” describing how Vicari picked up a knife and directed John Doe 1’s father-in-law to threaten to cut John Doe 1 in half in order to get John Doe 1 to make extortionate payments.  After John Doe 1 ultimately made a payment of $4,000 to Vicari, Vicari and Rappa met and sent Tantillo a photo of Vicari raising a small champagne bottle, as in a toast.

In addition, Tantillo, Brooke and Johnson engaged in two separate violent extortion schemes of Demolition Company 1 and its owners over purported debts owed to Tantillo and a company operated by Tantillo and Brooke.   Brooke violently assaulted one of the owners on a street corner in midtown Manhattan.  In another instance, as mentioned, Tantillo and Johnson coordinated a violent hammer assault on a dispatcher at Demolition Company 1, which left the dispatcher bleeding and seriously injured.  Pictures of the victim dispatcher were then circulated to various people in the carting and demolition industries. 

Frauds and Union-Related Crimes in the Carting and Demolition Industries

The defendants also committed a series of crimes to steal and embezzle from unions and employee benefit plans and rigged bids in the demolition and carting industries.  As part of one such scheme, DiLorenzo provided Rappa with a “no-show” job at DiLorenzo’s demolition company so that Rappa could receive paychecks and union health benefits, among other benefits.  Similarly, Tantillo arranged for Gradilone to receive a “no-show” job at a construction company with which Tantillo was associated, which enabled Gradilone to receive paychecks and union health benefits to which he was not entitled.  Tantillo and Johnson also conspired to secure a “no-show” job for Johnson, so that Johnson could similarly receive union health benefits.

Tantillo also embezzled from employee benefit plans by using laborers from a non-union company, Gane Services, Inc., to perform work for union companies operated by Tantillo, and failing to make contributions for such work as required by collective bargaining agreements.

In addition, Tantillo, DiLorenzo and their co-conspirators conspired to rig bids for lucrative demolition contracts in New York City.  Among other things, Tantillo and DiLorenzo coordinated that their companies exchange bidding information to secure a project on Fifth Avenue. 

Additional Charged Schemes

The defendants also perpetrated a series of other crimes throughout the New York and New Jersey areas from 2017 through 2023.  Their pattern of racketeering activity included additional extortions, retaliating against a federal witness, and money laundering, among other crimes, as detailed in court documents.  For example, in September 2023, Lanni and Minsquero coordinated an assault on proprietors of a restaurant in New Jersey, including physically assaulting a woman at knifepoint.  In addition, LaForte, having previously been convicted of a felony, illegally possessed a firearm in or about May 2023. 

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  The defendants variously face maximum sentences between 20 and 180 years’ imprisonment. 

 The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Matthew R. Galeotti, Anna L. Karamigios, and Andrew M. Roddin are in charge of the prosecution, with assistance from Paralegal Specialist Emme Moosher.

The Defendants:

JOSEPH LANNI (also known as “Joe Brooklyn” and “Mommino”)
Age:  52
Staten Island, New York

DIEGO TANTILLO (also known as “Danny” and “Daniel”)
Age:  48
Freehold, New Jersey

ROBERT BROOKE
Age:  55
New York, New York

SALVATORE DILORENZO
Age:  66
Oceanside, New York

ANGELO GRADILONE (also known as “Fifi”)
Age:  57
Staten Island, New York

KYLE JOHNSON (also known as “Twin”)
Age:  46
Bronx, New York

JAMES LAFORTE (also known as “Jimmy”)
Age:  46
New York, New York

VINCENT MINSQUERO (also known as “Vinny Slick”)
Age:  36
Staten Island, New York

VITO RAPPA (also known as “Vi”)
Age:  46
East Brunswick, New Jersey

FRANCESCO VICARI (also known as “Frank” and “Uncle Ciccio”)
Age:  46
Elmont, New York

E.D.N.Y. Docket No. 23-CR-443 

Joran Van Der Sloot Pleads Guilty And Is Sentenced for Extortion And Wire Fraud

The Justice Department released the below information: 

BIRMINGHAM, Ala. – Dutch citizen Joran van der Sloot (seen in the above Peruvian mugshot) pleaded guilty on October 18^th and was sentenced for his role in a scheme to obtain $250,000 from Elizabeth (“Beth”) Ann Holloway, the mother of Natalee Holloway, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton Peeples.

The guilty plea and sentencing of Joran Andreas Petrus van der Sloot, 36, occurred before U.S. District Court Judge Anna M. Manasco.  Van der Sloot pleaded guilty to extortion and wire fraud and was sentenced to 20 years in prison. 

According to the plea agreement, in 2010, van der Sloot solicited money from Beth Holloway, Natalee Holloway’s mother, on promises he would reveal the location of her daughter’s remains in Aruba and the circumstances of her 2005 death. However, after being paid a total of $25,100, van der Sloot provided information that he later described as “worthless.”

According to the sentencing memorandum and plea agreement, van der Sloot agreed to provide full, complete, accurate, and truthful information regarding Natalee Holloway’s disappearance in exchange for a sentence of 20 years. 

“Today, the United States held Joran van der Sloot accountable for his scheme to exploit a mother looking for information about her missing daughter,” U.S. Attorney Escalona said. “The United States hopes that the information regarding Natalee Holloway’s disappearance provides some important answers for the family and the community that has followed this family’s tragedy. Today’s result would not have been possible without the help of the FBI, Department of Justice’s Office of International Affairs, and the Government of Peru, the Netherlands and Aruba, U.S. Marshals Service, and Shelby County Sherriff’s Office, who assisted in this process.  I am grateful for their hard work and dedication.  May this long-awaited day finally bring justice for Beth and for Natalee’s family and friends.”

“Today’s sentence holds Joran van der Sloot accountable for the pain he has caused the family and friends of Natalee Holloway,” said FBI Birmingham SAC Carlton Peeples.  “After more than a decade of uncertainty, hopefully this will bring them and this community some closure.  During this lengthy investigation, the FBI remained committed in aggressively pursuing and holding this individual accountable for the crimes he committed against US persons. I would like to thank our local, state, federal, and foreign partners who assisted in this investigation and a special thanks to all the FBI personnel, past and present, who worked tirelessly in bringing this individual to justice.”

The FBI investigated the case.  Criminal Chief Lloyd C. Peeples and Assistant U.S. Attorney Catherine L. Crosby prosecuted the case. 

14 Defendants Indicted, Including The Entire Administration Of The Colombo Organized Crime Family: Colombo Crime Family Boss, Underboss, Consigliere And Captains Are Among The Defendants Charged With Labor Racketeering, Extortion And Money Laundering

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

On September 14, 2021, U.S. Attorney’s Office Eastern District of New York announced in federal court in Brooklyn, a 19-count indictment was unsealed charging 14 defendants, including 10 members and associates of the Colombo crime family of La Cosa Nostra and a member of the Bonanno organized crime family, with various offenses including labor racketeering involving multiple predicate acts of extortion conspiracy, attempted extortion and extortion, extortionate collection of credit conspiracy, extortionate collection of credit and money laundering conspiracy.  

The charges in the indictment against the Colombo crime family members relate to multiple charged schemes in a long-running effort by the crime family to infiltrate and take control of a Queens-based labor union (the “Labor Union”) and its affiliated health care benefit program (the “Health Fund”) that provides medical benefits, including dental, optical and pharmacy benefits, to the members of the Labor Union, and to a conspiracy to commit fraud in connection with workplace safety certifications.

Among those charged with racketeering are Andrew “Mush” Russo, the boss of the Colombo crime family, Benjamin “Benji” Castellazzo, the underboss, and Ralph DiMatteo, the consigliere.  Alleged Colombo crime family captains Theodore Persico, Jr., Richard Ferrara and Vincent Ricciardo are charged with racketeering, along with soldier Michael Uvino and associates Thomas Costa and Domenick Ricciardo.  In addition, alleged Bonanno family soldier John Ragano is charged with loansharking, fraud and drug trafficking offenses. 

Thirteen defendants were arrested today in New York and New Jersey and are scheduled to be arraigned via videoconference this afternoon before United States Magistrate Judge Taryn A. Merkl at the federal courthouse in Brooklyn.  Vincent Ricciardo was arrested in North Carolina and will be arraigned before United States Magistrate Judge David C. Keesler in federal court in Charlotte.  DiMatteo remains at large.

Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York; Michael Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor Office of Inspector General, New York Region (DOL-OIG); Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD); Dermot F. Shea, Commissioner, New York City Police Department (NYPD); and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the charges and arrests.

“Today’s charges describe a long-standing, ruthless pattern by the administration of the Colombo crime family, its captains, members and associates, of conspiring to exert control over the management of a labor union by threatening to inflict bodily harm on one of its senior officials and devising a scheme to divert and launder vendor contract funds from its health care benefit program.  In addition, for their own enrichment, the defendants conspired to engage in extortionate loansharking, money laundering and fraud, as well as drug trafficking,” stated Acting U.S. Attorney Kasulis. “This Office and its law enforcement partners are committed to dismantling organized crime families, eliminating their corrupt influence in our communities and protecting the independence of labor unions.”

Ms. Kasulis also thanked the U.S. Department of Labor, Employee Benefits Security Administration, Atlanta and New York Offices (DOL-EBSA), the Nassau County District Attorney’s Office, the Waterfront Commission of New York Harbor and the Department of Justice’s Organized Crime and Gang Section for their valuable assistance in the investigation.

“Everything we allege in this investigation proves history does indeed repeat itself. The underbelly of the crime families in New York City is alive and well. These soldiers, consiglieres, under bosses, and bosses are obviously not students of history, and don't seem to comprehend that we're going to catch them. Regardless of how many times they fill the void we create in their ranks, our FBI Organized Crime Task Force, and our law enforcement partners, are positioned to take them out again, and again,” stated FBI Assistant Director-in-Charge Driscoll.

“An important mission of the Office of Inspector General is to investigate criminal allegations relating to organized crime and their illicit influence over labor unions and their affiliated employee benefit plans.  We will continue to work with our law enforcement partners to investigate these types of allegations,” stated DOL-OIG Special Agent-in-Charge Mellone.

“The indictment of 14 defendants, including members of the Columbo crime family on labor racketeering, extortion and money laundering charges should send a clear and concise message that these types of crimes will never be tolerated by law enforcement.   By infiltrating and taking control of a Queens-based labor union and its affiliated health care benefit program these defendants were able to extort a substantial amount of money which should have been used for the members of the union. These benefits included medical, dental, optical and pharmaceutical.  Congratulations to all of the investigators and their affiliated agencies on a job well done during this extensive investigation,” stated NCPD Commissioner Ryder.

“This indictment is another example of the NYPD’s long-term commitment, working with its law enforcement partners, in making sure those accused of organized crime are held accountable. I commend those who carried out the investigation as well as the office of the United States Attorney for the Eastern District in New York for its work in ensuring there is justice in this case,” stated NYPD Commissioner Shea.

“Every time construction certifications are faked, every time bogus records are created and used to manipulate the facts, building in this City is undermined and New Yorkers' safety is compromised. This investigation is evidence of how corruption can erode the integrity of construction in New York City. And these charges reveal how DOI is working with its law enforcement partners to uncover and stop the illegal conduct,” stated DOI Commissioner Garnett.  “DOI thanks the City Department of Buildings for reporting allegations related to this conduct, and the Office of the United States Attorney for the Eastern District of New York, the FBI, and the Office of Inspector General for the U.S. Department of Labor for their partnership.”

As set forth in the indictment and other court documents, the defendants and their co-conspirators committed a variety of crimes – including extortion, loansharking, fraud and drug trafficking – on behalf of the Colombo organized crime family.  First, the Colombo crime family’s administration, including Russo, Castellazzo and Dimatteo, as well captains Persico, Ferrara and Vincent Ricciardo, used extortionate means, including direct threats of bodily harm, to control the management of the Labor Union and caused it to make decisions that benefitted the Colombo crime family.  Since approximately 2001, Colombo captain Vincent Ricciardo and his cousin, associate Domenick Ricciardo, have collected a portion of the salary of a senior official in the Labor Union (“John Doe #1”) by threatening to harm John Doe #1 and his family.  At the direction of the Colombo crime family’s leadership, beginning in late 2019, the defendants broadened the extortion effort to force John Doe #1 and others at the Labor Union and its affiliated Health Fund to make decisions that benefitted the Colombo crime family, including by forcing them to select vendors for contracts who were associated with the Colombo crime family.  The defendants sought to divert more than $10,000 per month from the Health Fund’s assets to the administration of the Colombo crime family. 

For example, on June 21, 2021, in a consensually recorded conversation, Vincent Ricciardo threatened to kill John Doe #1 if he did not comply with Vincent Ricciardo’s demands.  He explained that John Doe #1 knows, “I’ll put him in the ground right in front of his wife and kids, right in front of his f-----g house, you laugh all you want pal, I’m not afraid to go to jail, let me tell you something, to prove a point? I would f-----g shoot him right in front of his wife and kids, call the police, f--k it, let me go, how long you think I’m gonna last anyway?”

Further, Colombo crime family members Russo, Castellazzo, Dimatteo, Ferrara, Persico, Vincent Ricciardo, Uvino joined with defendants Thompkins and Bellantoni, among others, to devise a scheme to launder money from Health Fund contracts and payments through third parties and eventually to the Colombo crime family’s leaders.  The defendants attempted to re-bid Health Fund vendor contracts for claims administration, pharmaceuticals and other health services to persons and companies affiliated with the defendant Joseph Bellantoni.  Bellantoni and others agreed that in exchange for the new vendor contracts, they would pay kickbacks to the Colombo crime family and would use various intermediaries to hide the payments.

The indictment also charges Bonanno organized crime family soldier John Ragano with leading a scheme to issue fraudulent workplace safety training certifications.  As alleged, Ragano operated two workplace safety schools in the New York area that claimed to provide Occupational Safety and Health Administration’s (“OSHA”) training courses and certifications, along with various New York state certifications, to construction industry workers.  Rather than provide training, Ragano along with his business partner John Glover and Domenick Ricciardo, falsified paperwork to the U.S. Department of Labor and other government agencies which represented that hundreds of workers had completed required safety courses when in reality they had not.  Instead, various defendants used Ragano’s “schools” to conduct meetings involving members of La Cosa Nostra and to store illegal drugs and fireworks.

Vincent Ricciardo, Uvino, Ragano and Costa are also charged with loansharking.  As alleged, these defendants participated in extending and collecting on extortionate loans totaling $250,000 to an individual identified as “John Doe #2.”  The defendants charged and collected a weekly 1.5% interest rate that did not reduce the principal owed and divided the proceeds between themselves.  Further, Vincent Ricciardo, Ragano, Costa, Glover and Vincent Martino were charged with conspiracy to distribute marijuana by transporting large shipments of marijuana in vehicles from New York to Florida.  Vincent Ricciardo and Costa were also charged, as previously convicted felons, with possessing and transporting ammunition, and Persico, who is currently on federal supervised release following his release for a prior racketeering conviction, was charged with lying to federal court officers about his dealings with other Colombo crime family members. 

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted, the defendants each face up to 20 years’ imprisonment.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys James P. McDonald and Devon Lash are in charge of the prosecution.

The Defendants:

ANDREW RUSSO (also known as “Mush”)
Age: 87
Glen Head, New York

JOSEPH BELLANTONI
Age: 39
Massapequa, New York

BENJAMIN CASTELLAZZO (also known as “Benji”)
Age: 83
Manahawkin, New Jersey

THOMAS COSTA
Age: 52
West Islip, New York

RALPH DIMATTEO
Age: 66
Merrick, New York

RICHARD FERRARA
Age: 59
Brooklyn, New York

JOHN GLOVER
Age: 62
Queens, New York

VINCENT MARTINO
Age: 43
Medford, New York

THEODORE PERSICO, JR. (also known as “Teddy”)
Age: 58
Brooklyn, New York

JOHN RAGANO (also known as “Bazoo” and “Maniac”)
Age: 59
Franklin Square, New York

DOMENICK RICCIARDO
Age: 56
Franklin Square, New York

VINCENT RICCIARDO (also known as “Vinny Unions”)
Age: 75
Franklin Square, New York

ERIN THOMPKINS
Age: 53
Franklin Square, New York

MICHAEL UVINO
Age: 56
Garden City, New York 

Philadelphia Local 98 Leader John Dougherty And Nephew Charged With Extortion and Conspiracy

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

PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that John Dougherty, 60, and Gregory Fiocca, 28, both of Philadelphia, PA, were charged by Indictment with 18 counts of extortion and one count of conspiracy to commit extortion. This Indictment represents new charges against Dougherty, separate and distinct from any other currently pending case.

The Indictment alleges that Dougherty, the Business Manager of International Brotherhood of Electrical Workers Local 98 (“Local 98”), and Fiocca, his nephew and a member of Local 98, conspired to extort salary, wages, and employee benefits from Fiocca’s employer, an electrical contracting company, for services Fiocca allegedly did not actually perform from August 2020 until January 2021. The object of the conspiracy was to have Fiocca’s employer continue to pay Fiocca without holding Fiocca accountable or monitoring his work performance. The defendants allegedly used actual and threatened force, violence and fear, including fear of economic harm, to obtain this result.

The Indictment further alleges that between October 2019 and August 2020, after Dougherty appointed Fiocca to be the Local 98 steward for employees working at this job site, Fiocca frequently did not show up for work, was not present at his workstation, and did not complete his assigned work. As a result, Fiocca allegedly was sometimes paid for fewer than 40 hours per week.  It is also alleged that Dougherty was apprised of Fiocca’s attendance and performance issues but refused to acknowledge that Fiocca was at fault.

On August 19, 2020, after Fiocca had been paid for fewer than 40 hours for the previous week because he had worked for fewer than 40 hours that week, Fiocca allegedly grabbed his manager by the throat, threw him on a desk, and threatened him and the company’s owner with further violence. The Indictment further alleges that later that same day, after the assault, Dougherty made escalating threats of economic harm to the owner of the company including: no longer allowing electricians on the job to work overtime, thus forcing the company to operate three shifts of employees; pulling all the electricians off the job entirely; and even trying to prevent the company from securing future work.

As a result, as charged in the indictment, from August 19, 2020 to January 17, 2021, Fiocca remained employed by the company, did little or no work, and continued to receive paychecks and benefits paid by the company.

“No one is entitled to wages they do not earn, and more importantly, no one should fear economic reprisal or physical violence for attempting to do honest business in Philadelphia,” said Acting U.S. Attorney Williams. “As alleged in the Indictment, Fiocca took advantage of his uncle’s position as a powerful leader of an influential union, assaulted a co-worker, and enriched himself at the expense of his employer – and Dougherty had his nephew’s back through all of it. These kinds of actions do not represent ‘business as usual,’ and will not be tolerated in this District.”

“When union leaders put their own interests ahead of its honest and hard-working members, they are not only breaching their obligation to protect union workers and their families, they are breaking the law,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Such corruption must not go unchecked. No matter how long it takes, the FBI, particularly the determined agents and support staff of our Public Corruption Squads, will not rest until unscrupulous public officials and union leaders are brought to justice. The FBI is committing to protecting Philadelphia’s citizens and dedicated laborers.”

If convicted of all counts, the defendants face a maximum possible sentence of 380 years in prison, a $4,750,000 fine, a term of supervised release of two years, and a $1,900 special assessment.

An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Frank R. Costello, Jr., and Richard P. Barrett.

My Washington Times Review Of 'The Black Hand: The Epic War Between A Brilliant Detective And The Deadliest Secret Society In American History'

The Washington Times published my review of The Black Hand: The Secret War Between a Brilliant Detective and the Deadliest Secret Society in American History.

My mother was Italian and I grew up in South Philadelphia, the city’s “Little Italy” section and the hub of the Cosa Nostra organized crime family in the Philadelphia and South Jersey area.

When I was a teenager in the 1960s I lived around the corner from Angelo Bruno, who was then the mob boss. I also lived around the corner from Richard Zappile, who became Philadelphia’s chief of detectives. He served as the city’s point man against the mob and in 1993 he broke up a particularly violent internecine mob war. The late Mr. Zappile went on to become the first deputy police commissioner and deputy mayor.

Yes, Virginia, there are Italian-American criminals. But there are also Italian-American law enforcement officers who are not afraid to take on organized crime.

Stephan Talty’s “The Black Hand” is about an earlier Italian-American police officer who faced a group of Italian criminals who were the precursors to Cosa Nostra. Italian immigrants in New York City in the early 1900s called these feared criminals “La Mana Nera,” The Society of the Black Hand.

The Black Hand members were extortionists, kidnappers, bombers and murderers. Initially they preyed upon the Italian immigrant community, but they later branched out. They kidnapped children and held them for ransom and they extorted money from small business owners.

…But there was one police officer, an Italian-American, one of the few on the force, who cared very much for the community and hated the Black Hand.

“Joseph Petrosino was the head of the famous Italian Squad, a short, stout, barrel-chested man, built like a stevedore,” Mr. Talty writes.

You can read the rest of the review via the below link:

http://www.washingtontimes.com/news/2017/jun/11/book-review-the-black-hand/ 

Note: Below are photos of the late Joseph Petrosino:

Theft Of 10,000 Pounds Of Chocolate And Other Crimes: Members And Associates Of Russian Crime Syndicate Arrested For Racketeering, Extortion, Robbery, Murder-For-Hire Conspiracy, Fraud, Narcotics, And Firearms Offenses

As Joon H. Kim, the U.S. Attorney’s for the Southern District of New York, notes in the below released information, this is the first federal racketeering charges ever brought against a Russian "vor," more commonly known as the "Russia Mafia."

While the theft of 10,000 pounds of chocolate is laughable, the other crimes are far more serious.

You can read the U.S. Attorney's statement below:  

Joon H. Kim, the Acting United States Attorney for the Southern District of New York,  William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Leon Hayward, Acting Director of the New York Field Office of U.S. Customs and Border Protection, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of three Indictments and one Complaint charging 33 defendants with a variety of racketeering, fraud, narcotics, firearms, and stolen property offenses.

Of the charged defendants, 27 are associated with a nationwide racketeering enterprise led by RAZHDEN SHULAYA and ZURAB DZHANASHVILI and are charged in United States v. Razhden Shulaya, et al. (the “Shulaya Indictment”) and an accompanying superseding indictment, which has been assigned to U.S. District Judge Katherine B. Forrest. Of those defendants, 23 were taken into federal custody. 18 will be presented before U.S. Magistrate Judge Gabriel W. Gorenstein today. One defendant will be presented in the District of Nevada.  Three defendants will be presented in the Southern District of Florida.  DENIS SAVGIR, EREKLE KERESELIDZE, GIORGI LOMISHVILI, MAMUKA CHAGANAVA, and SEMYON SARAIDAROV remain at large. One defendant, TIMUR SUYUNOV, is currently detained in federal custody and will be brought to Manhattan federal court on a writ.

Two additional defendants are charged in United States v. Nikoloz Jikia, et al. (the “Marat-Uulu Complaint”), with conspiracy to commit murder-for-hire and with additional firearms offenses.  Of those defendants, one of whom is also charged in the Shulaya Indictment, both were taken into federal custody last evening and will be presented before Judge Gorenstein today.

Three additional defendants are charged in United States v. Alex Fishman, et al. (the “Fishman Indictment”), which has been assigned to U.S. District Judge Richard J. Sullivan.  Each of those three defendants was taken into federal custody today and will be presented before Judge Gorenstein this afternoon.

Finally, one additional defendant was charged in United States v. Sergey Gindinov (the “Gindinov Indictment”), which has been assigned to U.S. District Judge Alison J. Nathan.  GINDINOV was taken into federal custody today and will be presented this afternoon before Judge Gorenstein.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “Today, we have charged 33 members and associates of a Russian organized crime syndicate allegedly engaging a panoply of crimes around the country. The indictments include charges against the alleged head of this national criminal enterprise, one of the first federal racketeering charges ever brought against a Russian ‘vor.’ The dizzying array of criminal schemes committed by this organized crime syndicate allegedly include a murder-for-hire conspiracy, a plot to rob victims by seducing and drugging them with chloroform, the theft of cargo shipments containing over 10,000 pounds of chocolate, and a fraud on casino slot machines using electronic hacking devices. Thanks to the remarkable interagency partnership of FBI, CBP, and NYPD, we have charged and arrested 33 defendants allegedly involved in this criminal enterprise.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The suspects in this case cast a wide net of criminal activity, aiming to make as much money as possible, all allegedly organized and run by a man who promised to protect them. But that protection didn't include escaping justice and being arrested by the agents and detectives on the FBI New York Eurasian Organized Crime Task Force. Our partnerships with other FBI field offices, the NYPD and CBP allows us to do everything we can to go after criminals who don't believe the law applies to them.”

Acting CBP New York Director Leon Hayward said:  “U.S. Customs and Border Protection is extremely proud to have assisted our federal partners in this operation.  It is through our interagency partnerships, and collaborative approaches like the one leading to today’s arrests, that law enforcement successfully combats modern criminal organizations.”

NYPD Commissioner James P. O’Neill said:  “The Thief-in-Law allegedly established an extensive cross country criminal enterprise from Brighton Beach to Las Vegas that engaged in bribes, gambling, and murder for hire.  Thanks to all whose work resulted in the arrest and indictment of 33 today.”

According to the allegations in the Indictments and Complaint unsealed today in Manhattan federal court:[1]

The Shulaya Enterprise was an organized criminal group operating under the direction and protection of RAZHDEN SHULAYA a/k/a “Brother,” a/k/a “Roma,” a “vor v zakonei” or “vor,” which are Russian phrases translated roughly as “thief-in-law” or “thief,” and which refer to an order of elite criminals from the former Soviet Union who receive tribute from other criminals, offer protection, and use their recognized status as vor to adjudicate disputes among lower-level criminals.  As a vor, SHULAYA had substantial influence in the criminal underworld and offered assistance to and protection of the members and associates of the Shulaya Enterprise.  Those members and associates, and SHULAYA himself, engaged in widespread criminal activities, including acts of violence, extortion, the operation of illegal gambling businesses, fraud on various casinos, identity theft, credit card frauds, and trafficking of large quantities of stolen goods.

The Shulaya Enterprise comprised groups of individuals, often with overlapping members or associates, dedicated to particular criminal tasks.  While many of these crews were based in New York City, the Shulaya Enterprise had operations in various locations throughout the United States (including in New Jersey, Pennsylvania, Florida, and Nevada) and abroad.  Most members and associates of the Shulaya Enterprise were born in the former Soviet Union and many maintained substantial ties to Georgia, the Ukraine, and the Russian Federation, including regular travel to those countries, communication with associates in those countries, and the transfer of criminal proceeds to individuals in those countries.

The Shulaya Enterprise was led principally by SHULAYA and ZURAB DZHANASHVILI, a/k/a “Zura,” his lieutenant.  Along with SHULAYA and DZHANASHVILI, AKAKI UBILAVA, a/k/a “Ako,” HAMLET UGLAVA, MAMUKA CHAGANAVA, MIKHEIL TORADZE, NAZO GAPRINDASHVILI, a/k/a “Anna,” ARTUR VINOKUROV, a/k/a “Rizhy,” EVGHENI MELMAN, TIMUR SUYUNOV, ZURAB BUZIASHVILI, GIORGI LOMISHVILI, AZER ARSLANOUK, IVAN AFANASYEV, a/k/a “Vanya,” DENIS SAVGIR, DIEGO GABISONIA, LEVAN MAKASHVILI, SEMYON SARAIDAROV, a/k/a “Sammy,” and VACHE HOVHANNISYAN are charged in Count One of the Shulaya Indictment with racketeering conspiracy.

The Enterprise’s criminal activities included:

The operation of illicit poker businesses in Brighton Beach;

The extortion of gamblers who became indebted to the Shulaya Enterprise;

Attempts to extort local business owners;

Efforts to defraud casinos in Atlantic City and Philadelphia by using electronic devices and computer servers to predict and exploit the behavior of electronic slot machines;

The theft of cargo shipments, including a shipment containing approximately 10,000 pounds of chocolate confections;

The use of a female member of the Shulaya Enterprise to seduce men, incapacitate them with gas, and then rob them;

Attempts to create an after-hours nightclub that would host, among other things, the sale of narcotics;

The transportation and sale of numerous cases of untaxed cigarettes;

Plans to pay bribes to local law enforcement; and

Creation and use of forged identification documents, checks, and invoices.

SHULAYA, DZHANASHVILI, UGLAVA, CHAGANAVA, TORADZE, VINOKUROV, SUYUNOV, BUZIASHVILI, LOMISHVILI, AFANASYEV, KANADASHVILI are charged in Count Two of the Shulaya Indictment with conspiring to sell and transport stolen goods in a scheme involving contraband cigarettes, falsified bills of lading, and assorted stolen merchandise.

SHULAYA, DZHANASHVILI, UGLAVA, CHAGANAVA, TORADZE, KANADASHVILI, and VINOKUROV are charged in Count Three of the Shulaya Indictment in connection with a multi-year conspiracy to transport and sell purportedly stolen contraband cigarettes.

SHULAYA, DZHANASHVILI, SUYUNOV, AFANASYEV, SAVGIR, HOVHANNISYAN, DAVYDOV, KERESELIDZE, and MITSELMAKHER are charged in Count Four of the Shulaya Indictment in connection with a conspiracy to create and use false identification documents.

SHULAYA, UBILAVA, UGLAVA, MELMAN, GABISONIA, and MAKASHVILI are also charged in Count Five with wire fraud in connection with their plot to defraud casinos through the use of electronic devices and software designed to predict the behavior of particular models of electronic “slot” machines, thereby removing the element of chance from play of those machines.

LOMISHVILI, MARAT-UULU, and PETRUSHYN are charged in Count Six of the Shulaya Indictment with narcotics conspiracy in connection with their efforts to sell cocaine and heroin.

LERNER is charged in Count Seven of the Shulaya Indictment with obstruction of justice for lying to the FBI about information LERNER provided the Shulaya Enterprise about the FBI’s investigation.

MARAT-UULU and JIKIA are charged in the Jikia Complaint with conspiring to commit a murder-for-hire, and with firearms offenses.

GINDINOV is charged in the Gindinov Indictment with conspiring to sell narcotics in Manhattan and Brooklyn.

ALEX FISHMAN, STEVEN FISHMAN, and MELNYK are charged in the Fishman Indictment with conspiring to transport and sell contraband cigarettes in Manhattan and Brooklyn.

Mr. Kim praised the outstanding work of the FBI, including the Atlantic City, New York, Los Angeles, Las Vegas, and Miami offices, the CBP, the NYPD, and the St. Pierce, Florida, Field Office of Homeland Security Investigations for their investigative efforts and ongoing support and assistance with the case.

The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Andrew C. Adams and Andrew Thomas are in charge of the case.

The charges contained in the Indictments and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Ten Puerto Rico Police Officers Indicted For Allegedly Running Criminal Organization Out Of Police Department

The U.S. Justice Department released the below information:

Ten Puerto Rico police officers have been indicted for their alleged participation in a criminal organization, run out of the police department, that used their affiliation with law enforcement to make money through robbery, extortion, manipulating court records and selling illegal narcotics, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.

“The criminal action today dismantles a network of officers who, we allege, used their badges and their guns not to uphold the law, but to break it,” said U.S. Attorney Rodríguez-Vélez.  “The indictment portrays a classic criminal shakedown; but the people wielding the guns and stealing the drugs here weren’t mob goodfellas or mafia soldiers – these were police officers violating their oaths to enforce the law, making a mockery of the police’s sacred responsibility to protect the public.”

“Corruption is at the root of all evil,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division.  “These police officers violated the trust of the people of Puerto Rico and not only dishonored the police department, but also their fellow, honest, and hardworking officers.  The FBI, along with the United States Attorney's Office, will continue to attack corruption at all levels.”

The indictment, returned on Sept. 24, 2015, by a federal grand jury in the District of Puerto Rico, includes 11 charges against the following police officers: Shylene López-García aka “Plinia;” Ángel Hernández-Nieves, aka “Doble;” Xavier Jiménez-Martínez, aka “Negro;” Alvin Montes-Cintrón, aka “Vinillo;” Ramón Muñiz-Robledo, aka “Marmota;” Guillermo Santos-Castro, aka “Caco Biftec;” Luis Flores-Ortiz, aka “Piquito;” José Neris-Serrano; Manuel Grego-López; and David Centeno-Faría, aka “David Bisbal”.

The defendants are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.  Other charges against certain defendants include extortion under color of official right, narcotics trafficking, civil rights violations and false statements to federal agents.

According to the indictment, the officers charged with RICO conspiracy were members of a criminal organization who sought to enrich themselves through a pattern of illegal conduct.  The officers worked together to conduct traffic stops and enter homes or buildings used by persons suspected of being engaged in criminal activity to steal money, property and narcotics.  The officers planted evidence to make false arrests, extorted narcotics and firearms from individuals in exchange for their release.  The members of the enterprise gave false testimony, manipulated court records and failed to appear in court when required so that cases would be dismissed.  The officers also sold and distributed wholesale quantities of narcotics. 

For example, in January 2012, defendants Hernández-Nieves, Muñiz-Robledo and Grego-López, in their capacity as police officers, released a federal fugitive from custody in exchange for firearms.

In another example, the indictment alleges that in February 2013, defendants López-García and Montes-Cintrón, in their capacity as police officers, stole at least 500 grams of cocaine during the course of a police intervention, which Jiménez-Martínez sold afterward in furtherance of the goal of the enterprise.  

The indictment charges that the defendants frequently shared the proceeds they illegally obtained and that they used their power, authority and official positions as police officers to promote and protect their illegal activity.  Among other things, the indictment charges that they used the Police of Puerto of Rico’s (POPR) firearms, badges, patrol cars, tools, uniforms and other equipment to commit the crimes and concealed their illegal activity with fraudulently obtained court documents and falsified POPR paperwork to make it appear that they were engaged in legitimate police work.

The case is being investigated by the FBI’s San Juan Division.  The case is being prosecuted by Assistant U.S. Attorneys Mariana Bauzá-Almonte and Teresa Zapata-Valladares of the District of Puerto Rico.

The charges contained in the indictment are merely accusations.  The defendants are presumed innocent unless and until proven guilty.

Citizens of Puerto Rico with allegations of law enforcement corruption are encouraged to contact the FBI’s San Juan Division at (787) 754-6000.