Acting New England Crime Boss Pleads Guilty in Racketeering and Extortion Conspiracy

Anthony Dinunzio is One of Nine Alleged Leaders, Underbosses, Members, or Associates of the New England Crime Family Indicted by a Federal Grand Jury in Rhode Island and Arrested Since January 2011

WASHINGTON—Anthony L. Dinunzio, 53, of East Boston, Massachusetts, the acting leader of the New England La Cosa Nostra (NELCN) crime family, pleaded guilty today for his role in a conspiracy to extort protection payments from adult entertainment businesses in Rhode Island, according to a signed plea agreement filed today in U.S. District Court in Providence, Rhode Island.

The plea agreement was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Peter F. Neronha, U.S. Attorney for the District of Rhode Island; Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Providence Public Safety Commissioner Steven M. Pare.

“Today, Anthony Dinunzio admitted to serving as a leader of the New England La Cosa Nostra, a criminal organization that, while under his control, extorted business owners throughout Rhode Island,” said Assistant Attorney General Breuer. “Dinunzio is the eighth member of the NELCN to plead guilty for his role in the alleged mafia conspiracy that harmed its community for two decades, and this plea is a crucial step in the Justice Department’s fight to dismantle the NELCN.”

“Prosecutorial offices, when they are at their best, build cases. And not just any cases, but impactful cases. This case is one of those cases,” said U.S. Attorney Neronha. “Through their painstaking hard work, the prosecutors, agents, and detectives have decimated organized crime in Rhode Island and, with this plea today, have removed its leader in Boston.”

“Mr. Dinunzio’s guilty plea based on the evidence gathered by the FBI and our law enforcement partners shows undeniably we have shattered Omerta, the New England LCN’s code of silence,” said Special Agent in Charge DesLauriers. “Our persistent, methodical, and unyielding investigation of those who are part of the LCN and other new national and transnational organized crime groups emerging from every corner of the globe will not stop.”

Dinunzio pleaded guilty before U.S. District Judge William E. Smith in the District of Rhode Island to one count of conspiracy to participate in a racketeering enterprise (RICO). At sentencing, scheduled for Nov. 14, 2012, Dinunzio faces a maximum penalty of 20 years in prison.

According to the signed plea agreement, Dinunzio was a member and leader of the NELCN from at least 2002, as charged in a superseding indictment returned on April 24, 2012. Dinunzio admitted committing multiple acts of extortion and knowingly assisted in the charged criminal racketeering conspiracy through the oversight and receipt of monthly protection payments, paid in cash by the owners and operators of certain adult entertainment businesses in Rhode Island. Dinunzio also admitted to obstructing or impeding the administration of justice by, among other methods, attempting to influence, delay or prevent witness testimony related to the investigation and prosecution of NELCN members.

The superseding indictment alleges that Dinunzio participated with other alleged members and associates of NELCN in a racketeering conspiracy in which monthly cash payments for protection of $2,000 to $6,000 were demanded of the owners and operators of several adult entertainment businesses in Rhode Island.

To date, seven leaders, underbosses, members, or associates of the NELCN have pleaded guilty and been sentenced to federal prison for their involvement in the alleged racketeering and extortion conspiracy to extort protection payments from adult entertainment businesses and individuals in Rhode Island during the past two decades. Admitted NELCN crime boss Luigi “Louie” Manocchio is serving a sentence of 66 months in prison. Edward “Eddy” Lato, an admitted capo, is serving a sentence of 108 months in prison. Alfred “Chippy” Scivola, an admitted NELCN member, is serving a sentence of 46 months in prison. Admitted NELCN associates Richard Bonifiglia, 58, and Albino “Albie” Folcarelli, 54, are both serving sentences of 84 months in prison. Raymond “Scarface” Jenkins is serving a sentence of 37 months in prison. And Thomas Iafrate is serving a sentence of 30 months in prison.

A ninth defendant, Theodore Cardillo, 69, has entered a plea of not guilty to three counts each of RICO conspiracy and extortion conspiracy and is awaiting trial.

An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland of the District of Rhode Island and Trial Attorney Sam Nazzaro of the Criminal Division’s Organized Crime and Gang Section. The matter was investigated by the FBI, the Rhode Island State Police and the Providence Police Department.

Philadelphia La Cosa Nostra Associate Pleads Guilty to Racketeering Conspiracy

WASHINGTON—Louis Barretta, 48, of Philadelphia, pleaded guilty today to participating in a racketeering conspiracy involving loan sharking and illegal gambling, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania; and George C. Venizelos, Special Agent in Charge of the FBI’s Philadelphia Division.

At the plea hearing before U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania, Barretta pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) family through a pattern of racketeering activity. He admitted to the court that he made usurious loans and collected payments on these loans by using extortionate means, and he conducted a sports bookmaking business in furtherance of the racketeering conspiracy. His sentencing is scheduled for November 26, 2012.

Barretta was among 14 members and associates of the Philadelphia LCN family charged with crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling, witness tampering, and theft from an employee benefit plan in a third superseding indictment returned by a federal grand jury in Philadelphia on July 25, 2012. The other defendants charged in the 52-count third superseding indictment included Philadelphia LCN family boss Joseph Ligambi, Philadelphia LCN Family underboss Joseph Massimino, George Borgesi, Martin Angelina, Anthony Staino, Jr., Gaeton Lucibello, Damion Canalichio, Gary Battaglini, Robert Verrecchia, Eric Esposito, Robert Ranieri, Joseph Licata, and Louis Fazzini.

Lucibello pleaded guilty to racketeering conspiracy charges on August 2, 2012, and is awaiting sentencing on September 14, 2012. Angelina also pleaded guilty to racketeering conspiracy charges on August 8, 2012, and is awaiting sentencing on September 17, 2012.

The trial for Ligambi, Massimino, Borgesi, Staino, Canalichio, Battaglini, Licata, and Fazzini is scheduled for October 9, 2012. The trial for Verrecchia, Esposito, and Ranieri has not yet been scheduled. Ligambi, Massimino, Borgesi, Canalichio, Licata, and Fazzini are detained while awaiting trial. Staino, Battaglini, Verrecchia, Esposito, and Ranieri are free on bond while awaiting trial.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor, III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.

Goodwin Announces Indictment of California Man in Major Extortion Scheme

CHARLESTON, WV—U.S. Attorney Booth Goodwin today announced that Vivek Shah, 25, of West Hollywood, California, has been indicted by a federal grand jury in Charleston, West Virginia, on charges arising from a multi-million-dollar extortion attempt. The indictment alleges Shah sent a prominent West Virginian a letter threatening to kill a relative of the letter’s recipient unless $13 million was wired to an offshore bank account by June 28, 2012.

The letter identified several of the recipient’s relatives by name, the indictment says. According to the indictment, Shah later sent the victim wiring instructions for a bank account in Cyprus, along with a second copy of the original threatening letter.

Shah was arrested on August 10, 2012, pursuant to an arrest warrant issued in the Southern District of West Virginia. The arrest warrant was issued in response to a criminal complaint containing allegations related to those in the indictment announced today. The criminal complaint reveals Shah sought out handgun training only days before he was arrested.

The indictment charges Shah with two counts of interference with commerce by threats and two counts of transmitting threatening communications in interstate commerce. If convicted on all counts of the indictment, Shah faces up to 40 years in prison.

The indictment results from an investigation by the Federal Bureau of Investigation’s Pittsburgh, Los Angeles, and Chicago Divisions and the United States Postal Inspection Service. Counsel to the United States Attorney Steve Ruby is handling the prosecution.

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

Philadelphia La Cosa Nostra Capo Pleads Guilty to Racketeering Conspiracy

WASHINGTON—Martin Angelina, 50, of Philadelphia, pleaded guilty today to participating in a racketeering conspiracy involving loan sharking and illegal gambling, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and George C. Venizelos, Special Agent in Charge of the FBI’s Philadelphia Division.

At the plea hearing before U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania, Angelina pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) family through a pattern of racketeering activity. He admitted to the court that he attempted to collect payments related to usurious loans by using extortionate means and operated an illegal video poker machine business in furtherance of the racketeering conspiracy. His sentencing is scheduled for December 3, 2012.

Angelina was among 14 members and associates of the Philadelphia LCN family charged with crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling, witness tampering, and theft from an employee benefit plan in a third superseding indictment returned by a federal grand jury in Philadelphia on July 25, 2012. The other defendants charged in the 52-count third superseding indictment included Philadelphia LCN family boss Joseph Ligambi, Philadelphia LCN family underboss Joseph Massimino, George Borgesi, Gaeton Lucibello, Anthony Staino, Jr., Damion Canalichio, Louis Barretta, Gary Battaglini, Robert Verrecchia, Eric Esposito, Robert Ranieri, Joseph Licata, and Louis Fazzini.

Gaeton Lucibello pleaded guilty to racketeering conspiracy charges on August 2, 2012, and is scheduled to be sentenced on November 26, 2012.

The trial for Ligambi, Massimino, Borgesi, Staino, Canalichio, Barretta, Battaglini, Licata, and Fazzini is scheduled for October 9, 2012. The trial for Verrecchia, Esposito, and Ranieri has not yet been scheduled. Ligambi, Massimino, Borgesi, Canalichio, Licata, and Fazzini are detained while awaiting trial. Staino, Barretta, Battaglini, Verrecchia, Esposito, and Ranieri are free on bond while awaiting trial.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor, III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

The case is being investigated by the FBI; the Internal Revenue Service-Criminal Investigation Division; the Pennsylvania State Police; the New Jersey State Police; the Philadelphia Police Department; and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.

Former Miami Beach Lead Code Compliance Officer Pleads Guilty to Extortion Conspiracy Involving a South Beach Nightclub

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jeffrey C. Mazanec, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Jose L. Alberto, the former lead code compliance officer for the city of Miami Beach, pled guilty to one count of conspiracy to commit extortion under color of official right for his participation in a scheme to extort cash payments from a South Beach nightclub.

Sentencing has been scheduled for November 2, 2012, at 9:30 a.m. before U.S. District Judge Robert N. Scola. At sentencing, Alberto faces a possible maximum statutory sentence of up to 20 years in prison.

On March 29, 2012, Alberto was indicted on one count of conspiracy to commit extortion under color of official right, in violation of 18 U.S.C. § 1951(a); and 22 counts of extortion under color of official right and induced by the wrongful use of actual and threatened fear of economic loss, in violation of 18 U.S.C. § 1951(a). According to documents filed in the case and statements made in court, Alberto was the second most senior official at the Miami Beach Code Compliance Division and oversaw and managed all the Miami Beach code compliance officers. As part of their duties, Alberto and the other code compliance officers could issue citations for code violations to businesses operating in Miami Beach.

At today’s hearing, Alberto admitted that in June 2011, he solicited a cash pay-off from a Miami Beach nightclub owner in exchange for not enforcing a large fine for a code violation. The nightclub owner reported the alleged extortion to the FBI, which commenced an undercover investigation. During the undercover investigation that followed, Alberto accepted 22 separate cash pay-offs for a total of $16,600 from either the nightclub owner or an undercover FBI agent posing as the manager of the nightclub. These cash pay-offs were made in exchange for Alberto’s protection from potential code violations and to permit the nightclub to continue operating.

In court, Alberto also admitted that while the pay-offs were being made, he introduced various other code enforcement officers to the undercover FBI agent to help protect the nightclub. These code enforcement officers, like Alberto, also received cash pay-offs in exchange for their protection of the nightclub. Two of those officers, Vicente Santiesteban and Orlando Gonzalez, have pled guilty to conspiring with Alberto to extort cash from the Miami Beach nightclub and are scheduled to be sentenced in the coming months.

Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case was prosecuted Assistant U.S. Attorneys Jared E. Dwyer and Robin W. Waugh.

Starr County Sheriff’s Deputy Arrested and Detained on Bribery, Extortion, and Drug Charges

Second Starr County Deputy Arrested in Bribery and Extortion Conspiracy

WASHINGTON—A Deputy Sherriff for the Starr County, Texas Sherriff’s Office has been ordered detained by a federal magistrate judge in the Southern District of Texas on charges of conspiracy, federal programs bribery, extortion, and drug possession with intent to distribute, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

Nazario Solis, III, 34, of Rio Grande City, Texas, was ordered detained yesterday by U.S. Magistrate Judge Dorina Ramos in McAllen, Texas. Solis was arrested on July 12, 2012, on charges contained in an indictment filed in the Southern District of Texas.

The indictment charges Solis with one count of conspiracy to commit federal programs bribery and extortion, one count of federal programs bribery, one count of extortion, one count of conspiracy to possess with the intent to distribute marijuana, one count of possession with intent to distribute marijuana, and one count of attempt to possess with intent to distribute cocaine. The indictment also charges Jason Michael Munsell, a deputy sheriff with the Starr County Sheriff’s Office, with conspiracy to commit federal programs bribery and extortion, one count of federal programs bribery, and one count of extortion. Munsell, 26, surrendered to the FBI in McAllen on July 17, 2012, and was released on bond the following day.

According to the indictment, from approximately March 2011 to approximately April 2011, Solis and Munsell accepted approximately $1,500 total in cash payments from the operator of a gambling business in Starr County in exchange for providing warning of law enforcement activity involving the gambling business. The indictment further alleges that Solis and Munsell were recorded confirming that they had provided such notice about a law enforcement raid on at least one occasion in March 2011, allowing the business to remove money and employees that might otherwise have been arrested.

Solis is also charged with conspiracy to possess with the intent to distribute and possession with the intent to distribute less than 50 kilograms of marijuana in approximately April 2011.

The indictment also charges Solis with attempting to distribute three kilograms of cocaine and cash in exchange for semi-automatic and fully-automatic firearms. The indictment alleges that Solis engaged in extensive negotiations with another individual to obtain the firearms, which Solis intended to send to his “boss” in Mexico. However, the individual with whom Solis engaged in negotiations was an undercover law enforcement agent, and no actual firearms were sent to Solis. The indictment alleges that Solis was recorded stating, “My boss likes the 308 [rifle]...he likes the M-4s [rifle] and the 223 [rifle].” The indictment further alleges that Solis preferred semi-automatic rifles, complaining that fully-automatic rifles used “too much ammo.” Solis allegedly stated, “We kill one bird, and we shoot seven times. That’s not, that’s not very good mathematics.”

Solis faces a maximum penalty of up to five years in prison, a fine of $250,000, and supervised release for each conspiracy charge; 10 years in prison, a fine of $250,000, and supervised release for each charge of extortion and federal programs bribery; five years in prison, a fine of $250,000, and supervised release for the marijuana distribution charge; and five to 40 years in prison, a fine of $250,000, and supervised release for the attempted cocaine distribution charge.

Munsell faces a maximum penalty of five years in prison, a fine of $250,000 and supervised release for the conspiracy charge and 10 years in prison, a fine of $250,000, and supervised release for each charge of extortion and federal programs bribery.

An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.

This case is being prosecuted by Trial Attorneys Peter Mason and Anthony J. Phillips of the Public Integrity Section in the Justice Department’s Criminal Division. The case is being investigated by the FBI’s Public Corruption Task Force in McAllen, which is composed of U.S. Customs and Border Protection-Internal Affairs, U.S. Immigration and Customs Enforcement-Office of Professional Responsibility, Department of Homeland Security-Office of Inspector General, and the Texas Rangers. The Drug Enforcement Administration-Houston Division and the Bureau of Alcohol, Tobacco, Firearms, and Explosives also participated in the investigation.