Scheme
Involved Extortion, Illegal Gambling, Theft, and Interstate Transportation of
Stolen Property
NEWARK—Thirteen individuals, including
one alleged member of the Genovese organized crime family and 12 members and
associates of its LaScala Crew, were charged today in connection with an
illegal online gambling operation, U.S. Attorney Paul J. Fishman announced.
The defendants are charged with
racketeering conspiracy in a complaint unsealed this morning in conjunction
with arrests in the case. Two defendants remain at large. A fourteenth
defendant is charged with transmission of wagering information. The defendants
are scheduled to make their initial appearances later today before U.S.
Magistrate Judge Mark S. Falk in Newark federal court.
“The acts alleged in this criminal
complaint show that traditional organized crime continues to pursue its bread
and butter—illegal gambling, loan-sharking, and cargo theft,” U.S. Attorney
Fishman said. “The new wrinkle here is the use of off-shore sites and the
Internet for processing bets. Law enforcement will use countermeasures that are
just as sophisticated to bring these criminal enterprises to justice.”
“Today’s arrests serve as a stark
reminder that traditional organized crime continues to operate in New Jersey,”
FBI Special Agent in Charge Ward said. “Bookmaking, loan-sharking, cargo
thefts, and illegal gambling in social clubs are the staples by which organized
crime funds further criminal activity. The use of Internet gambling and off
shore locales demonstrates an evolution and increased sophistication, but the
threat of force or violence to serve their purpose remains the same, as does
the negative impact of organized crime on the citizens of this state.”
According to the complaint unsealed this
morning in Newark federal court:
The Genovese crime family of La Cosa
Nostra operated out of smaller groups, sometimes referred to as “crews,” that
operated in northern New Jersey and elsewhere. Each crew was headed by a
“captain,” “capo,” or “skipper.” Each captain’s crew consisted of “soldiers”
and “associates.” The captain was responsible for supervising the criminal
activities of his crew and providing the crew with support and protection. In
return, the captain often received a share of the crew’s earnings.
Joseph Lascala, 80, of Monroe, New
Jersey was a capo and a made member of the Genovese crime family, directing
various criminal activities of a group of associates referred to in the
complaint as the “Lascala Crew.” These activities included the theft of goods
and cargo, the receipt of stolen property in interstate commerce, extortion,
illegal gambling, and the collection of unlawful debt.
Members and associates of the Lascala
Crew and others, together with individuals that own and operate the website
Beteagle.com (“website”), used the website to profit through the operation of
an illegal gambling business that operated in northern New Jersey and
elsewhere.
High-level associates of the Lascala
Crew acted as “agents” of an illegal gambling business that was operated
through the website. Before the advent of computerized betting, these agents
would be referred to as “bookmakers” or “bookies.” Through the use of a
username and password, the agents accessed the website and tracked the bets or
wagers placed by their bettors. This “electronic portfolio” was referred to as
the agent’s “package.” The agent also had the ability, through the website, to
create packages for sub-agents. Sub-agents, who also were members or associates
of the Lascala Crew, operated under the agent, maintained their own bettors,
had access to the website related to their package, and were required to share
their profits with the agent and ultimately, Lascala.
Bettors first received a username and
password from the agent or sub-agent, which could be used to place bets. The
bettor, however, did not use a credit card to either access the website or to
pay gambling losses or to receive gambling winnings. The bettor usually was
assigned or chose a player name, such as “Shark,” “Colt,” or “Ace.” The agent
or sub-agent also established a betting limit for each bettor. The bettor used
his or her user name and password to place bets through the website or over the
telephone.
The website was maintained in Costa Rica
and referred to as the “office.” Although the website was maintained in Costa
Rica, the bettors either paid money for losses or received money for winnings
from the agent, his sub-agent, or their co-conspirators in New Jersey. If a
bettor was unable or unwilling to repay gambling losses, then the agent or
sub-agent converted these losses in debts that the bettor was required to
repay. The agent or sub-agent often tacked exorbitant amounts of interest onto
these debts and they used extortionate means to collect these debts, including
the express or veiled threat that the agent, sub-agent, or their
co-conspirators had the backing of the Genovese crime family.
After the agent obtained money, usually
in the form of cash, from his sub-agents or directly from the bettors, the
agent kept a portion of the cash for himself and then distributed the remainder
of the money, through intermediaries, to others, including members and
associates of the Lascala Crew and the individuals who owned and maintained the
Website.
The Lascala Crew, in confederation with
the website, directed, coached, assisted, and caused bettors in New Jersey and
elsewhere to place wagers on sporting events and contests, such as football.
The complaint details a recorded
conversation wherein defendant Joseph Graziano describes the operation:
“You’re in the wrong business now, you
know?...You should be in the sports business....They’re gonna build it up to,
like, [expletive] no end....I call the kid up. In the office down there, I’m
really proud of him. I mean, he has 50 phones in his [expletive] place....And,
it’s nice, it’s like an auction...”
The Lascala Crew also profits by
operating social clubs in northern New Jersey and elsewhere. At these social
clubs, members of the Lascala Crew profit through card games and other illegal
games of chance.
The complaint also charges that the
Lascala Crew engages in cargo theft and the receipt and sale of stolen goods in
interstate commerce, which stolen goods the members of the Lascala Crew refer
to as S.W.A.G. (stolen without a gun).
Each of the defendants, with the
exception of defendant Kenneth Baran, is charged with racketeering conspiracy
in violation of Title 18, United States Code, Section 1962(d). This count
carries a maximum term of 20 years’ imprisonment and a $250,000 fine.
Defendant Ken Baran is charged with
transmission of wagering information, in violation of Title 18, United States
Code, Section 1084 and Section 2. This count carries a maximum term of two
years’ imprisonment and a $250,000 fine.
The charges and allegations contained in
the complaint are merely accusations, and the defendants are presumed innocent
unless and until proven guilty.
U.S. Attorney Fishman credited special
agents of the FBI, under the direction of Special Agent in Charge Michael B.
Ward in Newark; the Special Investigations Unit of the Bayonne Police
Department, under the direction of Chief Robert Kubert; special agents of
IRS-Criminal Investigation under the direction of Acting Special Agent in
Charge JoAnn S. Zuniga; the New Jersey State Police, under the direction of
Col. Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the
direction of Prosecutor Peter E. Warshaw, with the investigation leading to
today’s arrests.
The government is represented by
Assistant U.S. Attorneys Anthony Moscato and Serina M. Vash of the Organized
Crime/Gangs Unit in Newark.
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