Mafia Scam Profits from US War on Terror

Friends of mine: Mario Figueroa

More than a dozen Ulster business people have been caught up in a multi-million pound scam that targeted British and Irish investors hoping to make money from the US war on terror, the Belfast Telegraph can reveal today.

The head of the scheme, New Jersey fraudster Mario Figueroa, declared bankruptcy this month after living it up at the best Belfast hotels, where he boasted about his mansions and luxury yachts while luring people into the scheme.

Victims include the managing director of a Lisburn engineering company, a director of a Londonderry property company, the owner of a Strabane garden centre and the owner of a Belfast electrical shop.

The FBI suspects Mafia involvement in the scheme, which employed 30 salesmen working from central New Jersey and took in over $50m.

Figueroa admitted travelling many times to London, Dublin and Belfast to entice investors and based his business solely on UK and Irish investors. The defence companies he invested in were supposed to be major suppliers of Tomahawk cruise missiles and armament parts to be used in Afghanistan and Iraq. In reality, some were little more than shell companies designed to lure investors.

Figueroa led a lavish lifestyle, buying a $2m house, a Mercedes Benz sports car and a 62-foot yacht called Private Enterprise, all of which have now been seized by the New Jersey Attorney General's office.

One investor from the province, Frank Sumner, owner of the Strabane Garden Centre, was one of the few investors to get off lightly, losing about £6,000 to the scheme. Mr Sumner said that the Clover group had phoned him at work and promised he could make vast sums from their investment scheme. He recalled that Figueroa told him that he was coming to Belfast to meet businessmen who were prepared to put large sums of money into the scheme. "He didn't bother coming to see me, I was just small fry compared to some of the people he was looking for," Sumner said. Mr Sumner said he had invested in a defence contractor called Invatech, which the federal prosecutors in New Jersey have identified as one of three " poorly performing" companies into which victims' money was placed.

In a criminal complaint lodged in court, prosecutors say that investment money from one defence company, JCM, was used to pay off irate Invatech investors, while telling them that this money was "profit" from their investment. Many Invatech investors were so impressed they poured hundreds of thousands of dollars more into the scheme.

Sumner said that he hoped that a "slimeball" like Mario Figueroa be brought to justice "for the sake of people that have lost a lot" .

"I don't care if I don't get anything back," he said.

Figueroa has already pleaded guilty to racketeering and money laundering and is due for sentencing in September. He is currently working as a Manhattan mortgage broker, earning $16,000 a month.

According to court records, there are at least 13 Northern Ireland investors so far identified, many of them directors of companies involved in property, engineering and electronics.

They include Edward Nicell, director of Cara Development Ltd, a property investment company in Derleen Park in Derry; David Neil of Express Distribution Services in Craigavon, and Leslie Millar, the managing director of Rocklyn Engineering in Lisburn.

Other investors include Rufus McClelland of Calverts Tavern in Armagh city; Russell Kelly of Beechfield Court in Coleraine; Brian Caldwell of Kingsgate Street, Coleraine; Robert McClurg of Saintfield Road, Ballynahinch; Trevor Calderwood, with an address listed as "Unit 5" in Ballymena and Michael Loughran of Churchtown Road in Cookstown.

At least three UK investors lost over $1m each and have hired a New Jersey attorney to win their money back. Scotland Yard believes that there may be other UK and Irish investors who have not come forward because of fear of tax implications.

One London investment company which is listed as a Figueroa creditor at least five times because of various investment schemes, was fined in 2005 for failure to prevent money laundering, the first company to be fined under UK anti-money laundering laws.

UK investors included a senior civil servant, Grant Ballantine, a consultant on state pension policy at the Government Actuary's Department. Mr Ballantine, who lost over $100,000, said that any money that is returned to investors would be a "drop in the bucket" compared to the amount invested.

Thanks to Sean O'Driscoll

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The Darkness Descends on a Mobster

It’s not often that I come across a game that’s a must have.

I play a lot of games and many of them only generate interest for a short amount of time. You pick up a shiny new game, play it like there’s no tomorrow, and then quickly become bored with it and move on to another game.

With the exception of World of Warcraft, most of the games that I review go back to the shelf once my review has been written. The Darkness, by publisher 2K Games, is definitely not going back to the shelf.

The game is based upon Marc Silvestri’s comic book of the same name. You play a member of the mob who is double-crossed by the Mafia boss. You shoot your way through many goons in your attempt to escape but are eventually cornered in a situation that you will not escape from.

Just when it seems that there is no way out. you are “selected” by a demonic force that chooses to use you as its host. With the demonic powers at your disposal, you are quickly able to dispatch your enemies and survive. Now, you have to see how long you can live with this demonic force within you.

The game is graphically gorgeous and the character models are extremely detailed. The dialogue is superb and seems like it’s lifted right out of a Tarantino script or an episode of The Sopranos. Voice actors must have had a blast recording this game; they certainly did their jobs and they deliver a terrific performance.

This game is rated “M” for mature and there’s definitely a reason for that. First of all, the game’s dialogue is heavily influenced by mob-style movies, so the dialogue is littered with swearing. Secondly, your use of your demonic powers can be quite grotesque.

When manifesting The Darkness, you have two shadow tendrils that resemble demonic snakes at your disposal. Other than just looking cool, their other function is to allow you to feed on the hearts of your enemies. The tendrils tear the hearts out of fallen enemies and consume the heart right before your eyes. Gross? You betcha. Awesome? Definitely.

I have so many games to review that I don’t tend to fixate on one game for too long at a time. However, The Darkness is definitely being added to my collection. This game is just too damn good to not have available at the house.

Thanks to Rob Michael

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Judge Imposes Gag Order at Family Secrets Mob Trial

The federal judge at the trial of five alleged members of Chicago's organized crime family on Friday imposed a gag order, saying it would "enhance my ability to conduct a fair trial."

Judge James B. Zagel's order bars attorneys "from making extrajudicial statements regarding the merits of this case that a reasonable person would believe could be publicly disseminated."

He said the order would help him to conduct a fair trial because it was likely any commentary on the merits would prejudice the jurors. Zagel said barring parties from making comments to the news media may limit coverage and "prevent these proceedings from taking on a carnival atmosphere."

The indictment in the case outlines a racketeering conspiracy by the mob that includes 18 murders, gambling, extortion and loan sharking. Charged are Frank Calabrese Sr., 69; Joseph (Joey the Clown) Lombardo, 78; James Marcello, 65; jewel thief Paul Schiro, 70, and retired Chicago police officer Anthony Doyle, 62.

Zagel said his order would apply only to commentary or opinions on the merits of the case and would not block lawyers from providing reporters with information about scheduling and other such matters.

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Former Judge Faces 20 Years In Prison For Mafia Dealings

Friends of ours: Genovese Crime Family, Nicholas Gruttadauria
Friends of mind: David Gross

A former Nassau County judge pleaded guilty Friday to trying to launder more than $400,000 for members of the Genovese crime family.

David Gross, 45, admitted he agreed to try to launder the cash he knew was the result of a jewelry heist. What Gross did not know is that one of the men he was making the deal with was an undercover FBI agent.

Federal prosecutors said Gross planned to keep up to 20 percent of all cash he agreed to launder. He also agreed to try to sell more than $280,000 worth of stolen diamonds. "Sworn to do justice, a sitting judge violated his oath as well as the law when he partnered with a member of organized crime to launder proceeds of criminal activity," U.S. attorney Roslynn Mauskopf said.

Gross was first elected as a Nassau County judge in 1999. He was arrested in 2005 and suspended pending the outcome of the criminal case against him. The investigation began after the FBI developed leads stemming from raids on several mafia-run gambling houses on Long Island.

New York FBI Director Mark Mershon described Gross' criminal conduct as "the most egregious betrayals of the public trust."

Investigators said the former judge had teamed up with Nicholas Gruttadauria who they said is a member of the Genovese crime family. Gruttadauria has also pleaded guilty. FBI officials said the two men tried to use invoices from Freeport restaurant Cafe By The Sea to launder the money.

Gross faces 20 years in prison and a $250,000 fine.

Thanks to WNBC

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How the Mob Impacts Your Wallet

Despite the sensational charges - racketeering and 18 murders - the trial of five alleged Chicago mobsters isn't exactly capturing the public's attention.

"There's an awful lot of attitude that we don't have to worry about the Outfit anymore," said James Wagner, head of the Chicago Crime Commission and a former FBI agent who battled the mob in New York and Chicago.

The five defendants all say they're innocent. In addition, Joseph "The Clown" Lombardo Sr., Frank Calabrese Sr., James Marcello, Paul "The Indian" Schiro and Anthony Doyle are all in their 60s and 70s, and the murders are alleged to have happened decades ago.

That may lead people to think the mob is ancient history, Wagner said. But he and another former FBI agent say that's not true. And while it may seem distant and irrelevant to suburban residents, experts say there are many reasons for the public to care about the outcome of such trials and the health of the mob, Wagner said:


James Stolfe, the owner of the popular Connie's Pizza, recently testified that he was threatened by two goons in the 1980s to pay "street tax" so he could stay in business - or else. Stolfe said he ended up paying $100,000 upfront and then $1,000 a month to Calabrese Sr. until 2002, not so very long ago.

"That's one example (of how the mob is still operating), but there are ... any number of businesses out there who are facing the same problem," Wagner said. "In all of those businesses, that's (the cost) passed on to the consumer."

"We're all paying an extra tax to support the Outfit," he said.

The link between unions and the mob is long and storied. The loser, Wagner said, is the average working member who gets stuck with contracts of questionable benefit while mobsters live high on the hog.

One illustration of this is the federal takeover of the Laborers International Union of North America because of pervasive mob influence. After the national takeover, the feds drilled down to its grass roots, its membership organizations. In Chicago, that was the Construction and General Laborers' District Council.

"The rights of members of the union to control the affairs of the union have been systematically abused," wrote federal trustees in 1999 court filings. "Those union members who might have opposed this corrupt state of affairs have been intimidated into silence."

At the time, the national union was made up of 21 locals and 19,000 members. Shortly before the takeover, the union's president was Bruno Caruso, who was "at least" an associate of organized crime, the trustees of Laborers International alleged. The group's vice president was John "Pudgy" Matassa Jr., a made member of the mob, they further claimed.

Besides serving as a "Who's Who" of mob leadership, union bosses spent thousands in union money on luxury meals and the like, the union trustees alleged.

Despite the court action against it in 1999, the Outfit fought tooth and nail to keep some hold on the unions. The fight lasted until 2004, when the court case was closed, shortly after forcing out several people alleged to be abusing union funds. The list included Joseph Lombardo Jr., son of Joseph Lombardo Sr., currently on trial.

In the last decade, dozens of people were convicted of abusing Chicago's Hired Trucks program, with truck companies paying city officials kickbacks to be in the program or, in some cases, to get paid for little or no work.

Some of the companies had mob ties "and therefore made a bundle of money off the improper management of the program," Wagner said. "Certainly a healthy percentage were connected to organized crime."

Those corruption costs are on top of the tax dollars that cover the labor and expenses of the FBI and U.S. attorney's office as they investigate the mob.

Gambling remains the life-blood of the mob, said Wagner and Peter Wacks, a former Chicago FBI agent who fought the mob for decades. "It's always been a big money-maker for them," Wacks said.

That remains true today. Along with the five men on trial now, numerous defendants pleaded guilty before the trial began to running a video poker ring until at least as late as 2003. "They've advanced, basically, like the rest of society has: electronically," Wacks said.

Another defendant, Nicholas Ferriola, admitted to operating a sports bookmaking operation, with "juice" loans made to losing gamblers.

Sports betting operations are particularly popular with the mob, Wagner said, because Illinois casinos do not allow them.

Even supposedly legitimate casinos are not immune to the mob. The proposed Rosemont casino was scuttled after the gaming board proved it had hidden investors tied to the mob. Taxpayers are still losing out on the proceeds of that casino license while the battle rages on in the appellate courts.

The Grand Victoria Casino in Elgin casino paid more than $3 million in fines in 2001 after it was discovered it gave an air handling system contract to the son of a mob figure. The son had no experience in the industry, Wagner said.

The Illinois Gaming Board also banned several organized crime figures from casinos, said Wagner, who once was an investigator for the gaming board. "We got them banned, including Donald Angelini," the mob's oddsman, Wagner said.

Other banned mobsters "were basically outfit loan sharks who were trying to collect money owed to them that people were betting at the boats," Wagner said.

While the Chicago Outfit is not as violent as it used to be, it still manages to bump off those it wants to keep silent or punish, Wagner said.

Two very public and brutal executions took place several years ago, reminiscent of the 18 now charged in the trial.

In 2001, Anthony Chiaramonti was gunned down in Lyons. In 2000, mobster Ronald Jarrett was shot to death in Bridgeport.

As recently as August 2006, mobster Anthony Zizzo disappeared, never to be seen again. While authorities can't prove Zizzo is dead, "there was some speculation that because of some of his associations with some of the defendants, that he might be subpoenaed" in the current trial, Wagner said. But as convincing as he thinks those arguments are about why people should still care about the mob, Wagner has one he thinks is even more convincing.

"For gosh sakes, 18 murders is a huge number ... even if it happened a long time ago," he said. "People should be outraged. ... They ought to be happy that, finally, these men are being brought to justice."

Thanks to Rob Olmstead

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