New York Attorney General Letitia James today announced the arrests
and indictments of 17 individuals on charges stemming from the operation
of lucrative loansharking and illegal gambling operations on Staten
Island controlled by members of the Gambino organized crime family. The
individuals were charged in an 84-count indictment
for their roles in an illegal sports gambling operation that handled
more than $22.7 million in illegal bets and an illegal loansharking
operation that brought in weekly loan payments on approximately $500,000
in usurious loans. In addition, four individuals were charged in a separate indictment for an illegal mortgage fraud scheme to purchase a $600,000 home in New Jersey.
Among
those arrested today are alleged Gambino soldiers John J. LaForte,
Anthony J. Cinque, Jr., and John Matera, alleged Gambino associates
Edward A. LaForte, Frederick P. Falcone, Sr., Giulio Pomponio, Daniel F.
Bogan, and alleged Colombo associate Charles Fusco.
“Illegal gambling and loan sharking schemes are some of the oldest rackets in the mob’s playbook,” said Attorney General James. “While
organized crime may still be active in New York, today we are putting
several Gambino family members out of business. These criminal
enterprises took tens of millions of dollars from New Yorkers and
trapped many in dangerous amounts of debt. I thank all of our partners
in law enforcement for their collaboration in this investigation to
bring these individuals to justice and keep New Yorkers safe.”
The
investigation, conducted with the New York City Police Department
(NYPD), the New York Waterfront Commission, and the United States
Department of Labor Office of Inspector General, utilized
court-authorized wiretaps and bugs, covert video surveillance cameras,
search warrants on an offshore illegal gambling website, and search
warrants of the residences of some of the defendants.
Much of the
enterprise’s loansharking and bookmaking business, including the
collection of illicit revenue from loansharking victims, was conducted
during meetings at the Eltingville Shopping Center and the Greenridge
Shopping Center on Staten Island.
The investigation uncovered that
Frederick P. Falcone, Sr., a former member of the NYPD, and Edward A.
LaForte acted as loan sharks who maintained detailed ledgers with the
names of victims and their respective usurious loan amounts. At times,
Falcone, Sr. and LaForte needed authorization and funding from LaForte’s
brother John J. LaForte and Anthony J. Cinque, Jr. to make the usurious
loans. Evidence amassed during the investigation, including intercepted
communications, showed that both John J. LaForte and Anthony J. Cinque,
Jr. are soldiers in the Gambino Crime Family and utilized this role to
oversee the illegal operations.
Additionally, the investigation
uncovered that Edward LaForte had a managerial role within an illegal
sports gambling operation utilizing an offshore illegal gambling website
that is not legally sanctioned in New York state. From September 2022
to March 2023, the operation involved over 70 bettors who wagered
approximately $22,753,964. The operation was also run with Amy
McLaughlin, who allegedly assisted in maintaining and organizing the
gambling ring, keeping records of the weekly gambling figures, and
collecting and distributing proceeds. In addition to receiving illegal
gambling proceeds, John LaForte operated and acted in a supervisory role
over the operation. John LaForte and Anthony Cinque, Jr. also funded a
portion of the illegal gambling activities to assist with the payment of
winning bettors.
In his role managing the gambling operation,
Edward LaForte supervised several sheetholders – individuals who manage
the bets and collections for individual bettors – and other individuals
who participated in the illegal sports gambling operation. These
individuals have been identified as Charles Fusco, Robert W. Carter,
Giulio Pomponio, Arthur Geller, Daniel M. Scarabaggio, Daniel H. Shah,
Vincent J. Ricciardi, Frederick Falcone, Sr., Frederick Falcone, Jr.,
Louis A. Palombo, Daniel F. Bogan, and John Matera. Often, the gamblers
who were wagering illegally through these sheetholders would fall into
debt and the members of this criminal enterprise would exploit this
opportunity by providing a usurious loan and charging and collecting
illegally high interest on these loans, making a profit off of a gambler
who had fallen into debt.
In addition, a separate mortgage fraud
investigation originating from wiretap communications of the gambling
and loan shark operations revealed that John LaForte and his wife Tracy
Alfano recruited his nephew Joseph W. LaForte, Jr. to fraudulently apply
for and accept a mortgage loan to purchase a $600,000 home in Monmouth
County, New Jersey. Joseph W. LaForte, Jr. acted as a straw purchaser of
the property where John LaForte and Tracy Alfano currently reside. John
Palladino, acting as a mortgage broker, assisted the others in
obtaining the mortgage by guiding them through the process. Palladino
coached them through the transfer of money to show mortgage eligibility
as well as closing on the loan and the property.
The 84 count
indictment related to the loan sharking and gambling operations –
unsealed today before Richmond County Supreme Court Judge Lisa Grey –
charged 17 individuals with multiple crimes, including Enterprise
Corruption, Criminal Usury in the First Degree and Second Degree, and
Promoting Gambling in the First Degree. If convicted of Enterprise
Corruption, a Class B felony, the defendants face a maximum of 25 years
in prison.
Those charged in today’s indictment include:
- John J. LaForte, 56, of Monmouth County, New Jersey
- Anthony J. Cinque, Jr., 39, Richmond County, New York
- John Matera, 53, Monmouth County, New Jersey
- Edward A. LaForte, 58, Richmond County, New York
- Frederick Falcone, Sr., 66, Richmond County, New York
- Giulio Pomponio, 61, Richmond County, New York
- Charles Fusco, 49, Richmond County, New York
- Daniel F. Bogan, 41, Richmond County, New York
- Robert W. Carter, 56, Richmond County, New York
- Louis A. Palombo, 61, Richmond County, New York
- Arthur Geller, 62, Ocean County, New Jersey
- Daniel M. Scarabaggio, 62, Ocean County, New Jersey
- Daniel H. Shah, 38, Hudson County, New Jersey
- Vincent J. Ricciardi, 59, Ocean County, New Jersey
- Amy L. McLaughlin, 44, Richmond County, New York
- James Miranda, 23, Richmond County, New York
- Frederick Falcone, Jr., 41, Richmond County, New York
Another
four-count indictment was unsealed before Richmond County Supreme Court
Judge Lisa Grey charging four individuals, including Gambino soldier
John LaForte, with Residential Mortgage Fraud in the Second and Third
Degree, and Falsifying a Business Record in the First Degree. If
convicted of Residential Mortgage Fraud in the Second Degree, a Class C
Felony, the defendants face a maximum of 15 years in prison.
Those charged in this indictment include:
- John J. LaForte 56, Monmouth County, New Jersey
- Tracy Alfano, 38, Monmouth County, New Jersey
- Joseph W. LaForte, Jr., 34, Richmond County, New York
- John Palladino, 54, Monmouth County, New Jersey
The
charges against the defendants are merely accusations and the
defendants are presumed innocent unless and until proven guilty.
“This case is a stark reminder that organized crime continues to thrive in the New York metropolitan area,” said Commissioner Paul Weinstein of the New York Waterfront Commission.
“The Gambino Crime Family has historically exerted its influence on the
Port of New York. Disruption of its profits from gambling and
loansharking weaken that family’s grip. We will continue to work
together with our law enforcement partners to combat corruption and
racketeering and to keep the public safe.”
“As we have seen for over a century and once again here, illegal bookmaking is often intertwined with organized crime,” said New York State Gaming Commission Chairman Brian O’Dwyer.
“This is why we have regulated gaming with strong safeguards, player
protections, and revenue to make our communities better. With the
numerous legal gambling opportunities available in our state, there is
no legitimate reason to wager with offshore operations and blindly line
the pockets of alleged gangsters. I applaud Attorney General James and
our partners in government for working together to bring this important
case.”
“These arrests reflect the commitment of the NYPD and our
law enforcement partners, at all levels of government, to keep our
communities safe by dismantling organized crime and protecting the
public from its insidious effects,” said NYPD Commissioner Edward A. Caban.
“I commend all of our investigators and everyone at the state Attorney
General’s office for their dedication to this long-term case and their
ongoing commitment to our shared public safety mission.”
“While
sports betting may be legal in the state of New York, operating an
off-the-books multi-million dollar gambling enterprise, engaging in
blatant usury and intimidation, and sinking countless New Yorkers into
crippling debt is not,” said Richmond County District Attorney Michael E. McMahon.
“Illegal gambling is by no means a victimless crime and these 17
defendants, including nearly a dozen Staten Islanders, stand accused of
raking in tens of millions of dollars from our neighbors while engaging
in brazen loansharking and mortgage fraud. I commend our partners in the
New York State Attorney General’s Office, NYPD, Waterfront Commission
of New York Harbor, and U.S. Department of Labor, Office of the
Inspector General for their incredible investigatory efforts and
commitment to holding these individuals accountable in the courtroom.”
The
investigation was led by NYPD Sergeant Jack Dagnese, formerly of the
Criminal Enterprise Investigations Section, under the supervision of
NYPD Sergeant Joseph Rivera, Lieutenant Jason Forgione, Inspector
Osvaldo Nunez and Assistant Chief Jason Savino of the Criminal
Enterprise Investigations Section, and under the overall supervision of
Chief of Detectives Joseph Kenny.
For the Office of the Attorney
General (OAG), the investigation was led by Organized Crime Task Force
(OCTF) Detectives Shavaun Clawson and Ramon Almodovar, under the
supervision of OCTF Supervising Detective Paul Grzegorski, Assistant
Chief Ismael Hernandez, and Deputy Chief Andrew Boss, with special
assistance from the detective specialists from the OAG Special
Operations Unit, led by Deputy Chief Sean Donovan. The Attorney
General’s Investigations Division is led by Chief Oliver Pu-Folkes.
For
the New York Waterfront Commission, the investigation was conducted by
Detective Joseph Curran and Detective William McCabe, under the
supervision of Sergeant Andrew Varga and under the overall supervision
of Executive Director Phoebe Sorial.
The case is being prosecuted
by OCTF Assistant Deputy Attorney General Joseph Marciano, under the
supervision of Downstate OCTF Deputy Chief Lauren Abinanti with the
assistance of OCTF Legal Analyst Christine Cintron. Nicole Keary is the
Deputy Attorney General in Charge of OCTF. The Criminal Justice Division
is led by Chief Deputy Attorney General José Maldonado. Both the
Investigations Division and the Division for Criminal Justice are
overseen by First Deputy Attorney General Jennifer Levy.
https://ag.ny.gov/press-release/2024/attorney-general-james-announces-arrests-alleged-crime-family-members-staten