Fri, May. 9, 2008

FBI sweep targets Scarfo

By George Anastasia

Inquirer Staff Writer

FBI agents fanned out across New Jersey yesterday in two high-profile organized crime cases, one linked to a sweeping racketeering indictment and the other to a financial investigation in which the son of jailed mob boss Nicodemo "Little Nicky" Scarfo appears to be a prime target.

FBI agents seized records and documents from the Atlantic County home of Nicodemo S. Scarfo, 42, son of the notorious former Philadelphia/South Jersey mob kingpin.

After serving search warrants, agents also took records from several other locations, including the home of Scarfo's ex-wife and from his lawyer's office in Cherry Hill.

A copy of one search warrant obtained by The Inquirer described the operation as part of an investigation into mail fraud, bank fraud, interstate transport of stolen property, extortion, wire fraud, conspiracy, and money-laundering.

Sources familiar with the probe said federal authorities were focusing on more than a dozen companies that have interwoven connections. It was unclear what role the younger Scarfo played in those companies.

There have been no arrests in the investigation.

In a second and apparently unrelated development, several Scarfo associates were charged in a gambling, extortion and racketeering indictment handed up by a federal grand jury in Newark.

In all, 23 reputed mob members and associates linked to the Gambino and Lucchese crime families were charged in the case, including Andrew "Andy Knapik" Merola and Martin Taccetta.

Merola, 41, was described by the FBI as a high-ranking member of the New Jersey branch of the Gambino organization. Taccetta, 56, is a longtime leader of the Lucchese family in New Jersey.

Scarfo, who authorities say was formally initiated into the Lucchese crime family, was once linked to a bookmaking and loansharking operation with Merola.

FBI Agent Weysan Dun, who heads the bureau's Newark office, said yesterday's indictments and arrests were part of a decades-long attack on the mob in New Jersey.

"Cosa Nostra, which translates as 'this thing of ours,' is steadily becoming 'this thing of the FBI's,' " Dun said in announcing the arrests.

Scarfo, through an attorney, declined to comment about the raid on his home in Egg Harbor Township. His ex-wife, Michele, whose home in the same community was also the subject of a search, also declined to comment.

"Neither one of them wants to say anything," said James Leonard, Michele Scarfo's lawyer.

Leonard said he believed his client was not the target of an investigation. He said FBI agents arrived at her home on Sun Valley Court about 9 a.m. and spent two or three hours taking out documents.

"She was shaken up," Leonard said.

The couple divorced several months ago. They have a school-age daughter.

Nicodemo Scarfo has since remarried and has an infant son also named Nicodemo.

Scarfo's longtime lawyer, Donald Manno, was among others the FBI served with search warrants. Agents spent several hours taking documents from his Cherry Hill office.

Manno confirmed that search warrants had been served but he declined to comment further.

"At this point there's nothing I can say," he said.

Among the companies cited in the search warrant were a Texas firm, FirstPlus Financial, and several of its subsidiaries, including FirstPlus Development, at 1231 Bainbridge St. in Philadelphia.

Calls to both companies were not returned yesterday.

It could not be determined whether search warrants had been served at the company offices. Two sources familiar with the investigation said the case had links to Texas and Florida and included companies involved in finance, construction, development, used-car sales, and charter-boat operations.

On its Web page, FirstPlus Financial, based in Irving, describes itself as a company that "provides a wide range of financial services as well as facilities development, restoration and management services to both consumer and commercial marketplaces."

FirstPlus Development touts itself as a company involved in general contracting, construction management, and project design and building.

The search warrants served yesterday sought all documents and materials issued from Aug. 1, 2006, to the present involving 43 individuals and companies.

Three principals of FirstPlus or its subsidiaries were among those on the list. Nicodemo Scarfo and his jailed father were also listed, along with mob associate Daniel Daidone, a former South Jersey bartenders union official jailed in a Camden City political corruption case several years ago.

Also listed was Salvatore Pelullo, believed to be the brother of two Philadelphia-area businessmen the FBI identified as longtime mob associates.

The younger Scarfo recently moved to Atlantic County after serving a 33-month federal prison sentence for a gambling conviction. He also has a conviction for conspiracy, loansharking and racketeering.

He was identified, but not charged, in a New Jersey State Police investigation last year as a former ranking member of the Lucchese organization. The investigation indicated that Scarfo had been demoted from the rank of capo to soldier in the crime family during an internal reorganization.

"Little Nicky" Scarfo, 79, is serving a 55-year sentence for racketeering and murder. His control of the local crime family ended in the late 1980s when he was jailed and when his son was ambushed in a South Philadelphia restaurant.

The younger Scarfo survived that assassination attempt.

Contact staff writer George Anastasia at 856-779-3846 or ganastasia@phillynews.com

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Feds: 23 mobsters nabbed in sweep; crew boss has Toms River ties

APP STAFF REPORT
May 9, 2008

An overseas gambling operation. False union credentials. A scheme to purchase merchandise using fraudulent bar codes and fake credit cards. Threats of violence.

And at the center of it all, a high-ranking member of the Gambino crime family who has an address in Toms River.

No, it's not a new chapter of "The Sopranos," but a 30-count federal indictment unveiled by U.S. Attorney Christopher J. Christie on Thursday, which named 23 made mob members and associates. The charges include running an enterprise that engaged in illegal gambling, extortion, fraud schemes and labor racketeering.

The lead defendant, Andrew Merola, also known as "Andrew Knapik," 41, of East Hanover and Toms River, allegedly had ultimate authority in the management and supervision of a crew of the Gambino crime family, according to the 30-count indictment.

Ralph Cicalese, 55, of Roseland, was allegedly Merola's right-hand man with primary responsibility for overseeing and supervising gambling agents and carrying out the crew's labor racketeering activities.

Another Toms River man, Vincent Fichera, 47, was arrested and charged with one count of conspiracy to commit wire fraud in connection with a bar code scheme allegedly run by the ring.

Ten of the defendants were arrested Thursday morning, including Merola.

The indictment was returned by a grand jury in Newark last Friday and unsealed with Thursday's arrests by special agents of the FBI and other law enforcement officers with the FBI Organized Crime Task Force. The defendants in custody were scheduled to make initial appearances Thursday before U.S. Magistrate Judge Michael A. Shipp in Newark.

According to the indictment, bets on sports events and casino-style games were placed over an Internet site that operated overseas and by calls to a toll-free number. At times, gamblers were delinquent in making their payments to Merola and Cicalese, resulting in the use of threats of violence to insure collection of their gambling debt to the enterprise.

In a separate scheme, the indictment alleges that Merola, Cicalese, Charles Muccigrosso, also known as "Buddy Musk," 68, of Newark; Kyle Ragusa, 41, of East Hanover; John Tizio, 48, of West Orange; India Fugate, 28, of Newark; Fichera and others fraudulently purchased merchandise at a greatly reduced price from stores, including Lowe's Home Improvement, Home Depot, Best Buy, Circuit City and other stores in New Jersey by creating and using bar code labels that falsely represented the price of the merchandise.

The indictment alleges that Merola and Fugate, who worked as a customer service associate at the Lowe's store in Paterson, engaged in a scheme to fraudulently obtain personal identification information from Lowe's customers to obtain a temporary Lowe's credit card and purchase merchandise without the knowledge or permission of the true credit card owner.

The indictment also describes a scheme in which Merola; Lucchese crime family member Martin Tacetta, 56, of East Hanover; and John Cataldo, business organizer of Local 825 of the International Union of Operating Engineers, conspired with Paul Lanza, 54, and Jonathan Lanza, 25, both of Florham Park, to circumvent and ignore requirements of the collective bargaining agreement between Barone Construction and Local 825.

The indictment alleges that Paul and Jonathan Lanza agreed to pay Merola, Cataldo and Tacetta approximately $20,000 to allow Barone Construction to use nonunion labor at a construction project at the BMW of Morristown car dealership.

The indictment also alleges a similar scheme in which Merola and Cicalese conspired with Joseph Manzella, business agent of Local 1153 of the Laborers International Union of North America, to allow Par Wrecking Corp. to use nonunion labor at a demolition project at the Prudential garage in Newark in violation of its collective bargaining agreement with Local 1153.

According to the indictment, Par Wrecking paid more than $35,000 in cash to Cicalese, who had been appointed as the job steward for Local 1153 at the Prudential garage construction site.

Merola and Muccigrosso are also charged with defrauding Kiska Construction, their employer at a construction project at the Goethal's Bridge.

According to the indictment, Merola and Muccigrosso were paid for full-time employment, when in fact, they alternated work weeks with each other, so that each of them only was at work part-time. Cataldo and Joseph Schepisi, foreman for Kiska Construction, are alleged to have assisted in the scheme.

The case is being prosecuted by Assistant U.S. Attorneys Ronald D. Wigler and Leslie F. Schwartz of the Criminal Division's Strike Force Unit in Newark.

So, this is sort of a protectionism thing? You're not allowed to promote betting on competitors' turf?
The current status quo is worse than a full prohibition and racketeering, because, even on prohibition, the market forces would guide the market better that what guides the market today (like befriending a handful on state senators).

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Not to worry. Your promoting gambling on a bulletin board is completely within the law. These guys were promoting gambling in a gambling casino, which is just plain wrong.

JSQ wrote:

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or Wall Street.

going to Vegas in 6 weeks.....can't wait. man, I love that place.

Is there such a crime of promoting gambling? I have been saying that gambling should be legal for a few times on this board - was that a crime?
Also, isn't this the crime the Trenton administration is committing, when running a lottery and a horse race betting system? How about Icahn, Trump, Barack, Yung, Boyd and their businesses in Atlantic city?

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They were also charged with a number of mob-specific crimes under the RICO statute, including acting in an alleged capacity and driving while reputed.

link

Alleged mob-run bet ring smashed inside Borgata

By KITTY CAPARELLA
Nov. 15, 2007
Philadelphia Daily News
caparek@phillynews.com 215-854-5880

Well, you can't say the mob doesn't have chutzpah.

In a daring comeback, the Philadelphia-South Jersey Mafia allegedly made a move inside Atlantic City's hottest casino, the Borgata Hotel Casino & Spa, by taking $22 million in illegal sports bets from young, hip gamblers in the casino's high-stakes poker room.

It could be the biggest mob infiltration of a casino since the Atlantic City gambling parlors opened in 1978, if defendants are convicted.

Yesterday, reputed mob capo Michael "Mikey Lance" Lancellotti, 45, and alleged soldier Anthony Nicodemo, 36, both of Philadelphia, were charged with conspiracy to promote gambling.

New Jersey Attorney General Anne Milgram identified the ringleader as Andrew Micali, 32, of Ventnor. He worked with a partner, a reputed major bookmaker, Jack M. Buscemi, 50, of Mullica Hill, N.J., who allegedly received a percentage of the gambling proceeds.

A total of 23 managers, bankers, casino employees and agents were charged in the ring.

"Micali frequently communicated with Lancellotti," according to a law-enforcement source familiar with the probe.

Micali allegedly worked with poker-room supervisor Joseph Wishnick, 42, of Brigantine. Both were charged with promoting gambling. Micali was also charged with money laundering and criminal usury.

Like a few others in the ring, Micali, Lancellotti and Nicodemo were longtime pals of jailed mob boss Joseph "Skinny Joey" Merlino. No mention was made of reputed current mob boss Joseph Ligambi yesterday.

Alleged mob associate Vincent Procopia, 41, of Brigatine, was charged with promoting gambling, while reputed associates Steven "Stevie Gongs" Casasanto, 37, and William DePena, 39, both of Philadelphia, were issued complaint summonses along with 16 others.

The 18 were charged with promoting gambling, money laundering or conspiracy.

Lancellotti was the highest-ranking alleged mobster arrested in a New Jersey gambling ring since 2004, when reputed underboss Joseph "Mousie" Massimino was jailed for 10 years for operating a large-scale sports-gambling ring in South Jersey and Philadelphia - a ring similar to the alleged current one.

You might say the mob operated under the nose of the New Jersey Casino Control Commission - except that the New Jersey Division of Gaming Enforcement; the state police-organized crime, gambling-bureaus and digital-technology units; and 10 other law-enforcement agencies worked on the 18-month probe.

Milgram said that investigators were tipped off in March 2006 by an informant as to what to look for in the overhead surveillance cameras in the poker room.

The Borgata security and surveillance departments helped investigators watch six casino employees, reputed mob associates and others in off-the-books exchanges of cash and casino chips during illegal betting in the poker room.

Gamblers learned of the illegal gaming - which authorities claimed siphoned $22 million from legitimate casino games - by word-of-mouth.

Losing gamblers were forced to borrow money at 50 percent annual interest to cover their debts.

Investigators followed the money to three Philadelphia "wire rooms," including one in a Micali-owned home, where each bettor's winnings and losses were calculated so that payouts or paybacks could be made.

During its "massive" money laundering, Milgram said, the ring used a method called "chip washing" - "taking cash, turning it into chips, 'washing' them by betting and then turning them in, and taking cash out."

During court-approved searches, Micali's bank account - with more than $200,000 - was frozen.

Also seized was $40,000 in chips and cash in Micali's safe deposit box at the Borgata, as well as gambling records, a laptop and a .357 caliber semi-automatic handgun inside his Ventnor home.

In Philadelphia, gambling records, computers, a handgun and $20,000 in cash were seized at three homes, including one owned by Micali.

This was Milgram's first big mob case, yet she was reluctant to mention the mob at an Atlantic City news conference, according to observers, even when reporters bombarded her with mob questions.

Usually in mob cases, defendants are charged with the more serious charge of racketeering conspiracy, but the AG's office charged the suspects with promoting gambling in a casino. It also issued the complaint summonses, which are like traffic tickets. The illegal operation did not affect the normal daily gaming on the casino floor, Milgram said.

"They sought to escape detection by enlisting casino employees in their crimes," Milgram said.

The casino employees charged with promoting illegal gambling included: Borgata poker-room supervisor Paul Parks, 31; Borgata poker dealers Austin Johnson-Brown, 35, and Robert McEwen, 26; Borgata bartender Matthew Weyler, 26; and Tropicana poker-room supervisor Jeffrey Ebert, 45. Ebert was also charged with criminal usury.

"I'm pleased to say they greatly underestimated our vigilance and determination to keep organized crime out of Atlantic City casinos," added Milgram.

If convicted, casino employees could lose their licenses. *

The Associated Press contributed to this report.