Effective Immediately, Illinois Enacts State Version of RICO to Target Street Gangs

Governor Pat Quinn today signed a tough new law to fight gang crime and reduce violence in Illinois. The new law empowers law enforcement with the ability to prosecute street gang leaders for the criminal acts of their organizations. Joining the governor was Cook County State’s Attorney Anita Alvarez, Chicago Mayor Rahm Emanuel, Chicago Police Superintendent Garry McCarthy and local lawmakers.

"One of the best ways to make our neighborhoods safer is to go after street gang leaders who profit from crime," Governor Quinn said. "Gang leaders cannot be allowed to escape justice by hiding behind criminals who do their bidding. This law will help law enforcement get gangs off the street and keep them off.”

House Bill 1907, sponsored by Sen. Tony Munoz (D-Chicago) and Rep. Mike Zalewski (D-Chicago), is modeled off the federal Racketeer Influenced and Corrupt Organizations (RICO) Act that was designed to help law enforcement fight organized crime by treating criminal acts committed by members of the group as part of an ongoing criminal enterprise. Under this legislation, law enforcement in Illinois can more effectively target the street gang leaders who order and benefit from the crimes of lower-ranking members.

The Illinois Street Gang RICO was an initiative of Cook County State’s Attorney Anita Alvarez, who recently formed the office’s first anti-racketeering unit to use the new law to build gang RICO cases involving multiple defendants with the goal of dismantling the street gang from the top down. The unit’s specially-trained prosecutors will also work with other State’s Attorney’s Offices throughout Illinois on how to apply the law effectively.

“For the first time in the history of our state, this new law will give local prosecutors the tools to identify and address patterns in multiple gang-related offenses and join different organized crime offenses and different offenders into a single court proceeding,” Alvarez said. “Prior to the signing of this bill, state prosecutors were typically only able to charge individual gang crimes and rarely, if ever, were able to prosecute and hold gang leaders accountable for the organized activities of the street gang and its rank-and-file members.”

Under the new law, gang members convicted of criminal conspiracy under the new law could face more than 30 years in prison depending on the associated crimes, and fines of up to $250,000 or twice the gross amount of any criminal proceeds. Illinois joins 31 other states in having racketeering statutes.

According to the Chicago Police Department, Chicago has the largest gang population in the country, with approximately 100,000 members in hundreds of factions. 75-80% of the city’s homicides are gang-related.

"On behalf of the children, families and neighbors of Chicago and across Illinois, I commend the Governor for signing HB1907 into law today, and I thank State Senator Tony Munoz and State Representative Mike Zalewski for their work on this bipartisan legislation and State's Attorney Anita Alvarez for her leadership on this issue," said Mayor Rahm Emanuel. "This law will give local law enforcement the power to prosecute gang leaders for crimes that they ordered others to commit and provide a critical tool to dismantle the structure of gangs that are targeting our neighborhoods."

"The Chicago Police Department is committed to making Chicago a safe place to live, work, and play for our residents and we will use all available resources, including the new RICO law, to ensure the safety of communities across the city of Chicago," said CPD Superintendent Garry F. McCarthy. "I commend Mayor Emanuel and Cook County State's Attorney Anita Alvarez for their leadership, State Senator Tony Munoz and Representative Mike Zalewski for their sponsorship, and Governor Pat Quinn for his support of this critical legislation and look forward to the positive effect this action will have in Chicago."

“As a former law enforcement officer, I’ve seen firsthand how gangs are destroying our neighborhoods,” said Sen. Tony Munoz. “The violence and the killing needs to stop for the good our children, our communities, and our city. This law sends a strong message to gangs that they can no longer dodge justice.”

“Under this law, judges and juries will be able to see the big picture when it comes to looking at the full impact of gangs in Illinois,” Rep. Mike Zalewski said. “Gangs that collectively benefit from crimes should not be able to escape criminal responsibility by letting junior members take the fall.”

The law takes effect immediately.

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Vatican Bank Mafia Link Investigated by Prosecutors

The official request was made more than a month ago but so far the Vatican Bank, known as the Institute for Religious Works, has refused to disclose any records of the account held by father Ninni Treppiedi – who is currently suspended from serving as a priest.

Investigators want to know more about vast sums of money that are said to have passed through his account to establish if they were money laundering operations by on the run Mafia Godfather, Matteo Messina Denaro.

The reports emerged in the Italian media and came just two weeks after the head of the Vatican Bank, Ettore Gotti Tedeschi, was sacked amid claims of power struggles and corruption within the Holy See which have been linked to the leaking of sensitive documents belonging to Pope Benedict XVI.

More in line with a Dan Brown thriller, it is not the first time that the Vatican Bank has been embroiled in claims of Mafia money laundering. Thirty years ago this month financier Roberto Calvi was found hanging under London's Blackfriars Bridge with cash and bricks stuffed into his pockets.

Initially City of London police recorded the death as suicide but Italian authorities believe it was murder after it emerged Calvi, known as God's Banker because of his links to the Vatican Bank, had been trying to launder millions of pounds of mob money via its accounts and through his own Banco Ambrosiano which had collapsed spectacularly.

Father Treppiedi, 36, was serving as a priest in Alcamo, near Trapani, said to be the richest parish on the Mafia's island stronghold of Sicily, and he was suspended after a series of questionable transactions of church funds and which has also led to his local bishop Francesco Micciche being sacked.

Trapani prosecutor Marcello Viola made the request six weeks ago for details of the account held by Father Treppiedi at the Institute of Religious Works to be disclosed but according to reports in Italian media, as yet the go ahead has still not been given by the Vatican.

In particular prosecutors are said to be looking at financial transactions made through Father Treppiedi's account at the Vatican Bank between 2007 and 2009 and which came to almost one million euros but paperwork explaining the source of the money is said to be missing.

Attention is also focusing on several land and property deals made by the parish which is in Messina Denaro's heartland in the area around Trapani and where he still commands fear and respect.

There is speculation that Gotti Tedeschi was aware of the possible Mafia link and was about to name names and police seized paperwork from his home which is said to detail his suspicions and which he had prepared for a handful of trusted sources as he feared his life was possible in danger.

In a statement prosecutor Viola said:"We have made a request for information to the Vatican City State in the spirit of collaboration with regard to an investigation into sums of money in financial transactions undertaken by the Diocese of Trapani."

Transactions by the Vatican Bank are already under the spotlight with leading Italian newspaper Corriere della Sera saying Gotti Tedeschi was aware of accounts held by "politicians, shady intermediaries, contractors and senior (Italian) officials, as well as people believed to be fronts for Mafia bosses."

Of particular interest are said to be property investments and property sales that could potentially have been used to disguise money transfers and launder money – all this in the light of report earlier this year that the Vatican Bank was not completely transparent in its dealings despite efforts to be so.

The latest development comes as prosecutors in the Vatican continue to question the Pope's butler Paolo Gabriele, 46, in connection with the leaking of documents which then ended up in a whistle blowing book published by an Italian journalist called His Holiness.

No-one from the Vatican was immediately available to comment.

Thanks to Nick Pisa

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Death Sentence for Art Rachel?

During his decades as thief extraordinaire for the Chicago Outfit, 74-year-old Art Rachel has been known as "The Brain" or "The Genius" due to his brilliant burglary skills.

In federal court on Thursday though, it appeared Mr. Rachel didn't have the smarts to show sufficient remorse to the judge who was about to sentence him for his latest crime spree.

"We were bored and had nothing to do," Rachel explained to Judge Harry Leinenweber when the time came for him to make a final plea for leniency. "We weren't serious" about robbing banks, armored cars or the home of a late mob boss Rachel said. Then, almost as an afterthought, Rachel said he "could do better."

Judge Leinenweber, unimpressed by the Genius or his recitation, agreed that the allegedly ailing-gangster "could have done better." Leinenweber then handed Rachel a sentence of almost 8 1/2 years in federal prison. At Rachel's age, that could amount to a death sentence.
Earlier, Rachel's attorney Terry Gillespie told the judge that he was saddened to think that his client would "spend most or all the rest of his life in jail. There is a side of Arthur Rachel you haven't seen" Gillespie stated, "he should have something left of his life."

Rachel's life is marked by one case of skullduggery that stands out in the annals of Chicago mob history: the Great Marlborough Diamond Theft.

On Sept. 11, 1980 Rachel and his longtime Outfit partner Jerry "Monk" Scalise broke into this high-end jewelry store in London, England. They escaped with millions of dollars in gems including the once-royal Marlborough diamond-a 45 carat sparkler.

In a botched ending to one of the mob's greatest heists, Rachel and Scalise were nabbed at O'Hare Airport on the way back from Britain&although they didn't have the diamond and it has never been found.

Rachel's sentencing hearing in federal court on Thursday was against that historical backdrop. Assistant U.S. Attorney Amarjeet S. Bhachu noted the notorious diamond theft, Rachel's other "multiple convictions" for robbery and forgery and said he deserved no mercy.

"This thug has the gall to ask for leniency when he does the same thing over and over" Bhachu told the judge. "He is a parasite. He lives off of others. The public needs to be protected from this man."

Rachel, sporting a snow-white goatee, glasses and court-designer manacles, had no family members or friends present for the sentencing-although several had written letters on his behalf to the judge.

His Outfit partner Jerry Scalise was also charged in the current case along with Mob associate Robert "Bobby" Pullia. Scalise and Pullia pleaded guilty and have yet to be sentenced. Rachel took his case to trial and was convicted.

After the court sentencing, Rachel's attorney said he "found it to be a very sad hearing, maybe more than most because despite what the prosecutor said and the name calling I found him to be a very decent kind man." Lawyer Terry Gillespie told ABC7 that Rachel has "been always a gentleman, bright. I just got a sense that it's such a waste. He spent half his life in jail and now he's going to die there, but he had no excuses. He didn't allow me to present any excuses."

Thanks to Chuck Goudie and Ann Pistone.

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Whitey Bulger's Girlfriend, Catherine Greig, Should Get 10 Years in Prison Says the Feds

The longtime girlfriend of Boston mob boss Whitey Bulger should spend a decade in federal prison because she knowingly protected one of the Northeast’s most violent fugitives for more than 16 years, prosecutors said.

In a sentencing memo filed in U.S. District Court, prosecutors say Catherine Greig not only concealed Bulger’s identity, but made it possible for him to live in hiding — paying bills, picking up prescription medication, and targeting people whose identities she and Bulger could later steal. The pair were finally discovered last year in Santa Monica.

“This is no garden variety harboring case,” First Assistant U.S. Atty. Jack Pirozzolo wrote in the filing, submitted Friday in Boston. “It is the most extreme case of harboring this District has seen.”

Greig is scheduled to be sentenced Tuesday.

Bulger, 82, pleaded not guilty to charges linked to 19 slayings from the 1970s and '80s during his time as the leader of the Winter Hill Gang, an Irish American crime ring in Boston, prosecutors say. He also worked as an FBI informant. Bulger is awaiting trial.

Greig, 61, pleaded guilty in March to charges of identify fraud, conspiracy to commit identify fraud and conspiracy to harbor a fugitive.

Although the charges Greig faces could result in a maximum of 15 years in prison, prosecutors have said she could get as little as 32 months. The prosecution recommended a longer prison term and asked that Greig pay a $150,000 fine.

“High-profile defendants such as Bulger require substantial assistance if they are to remain fugitives,” Pirozzolo wrote. “… Greig must know that there is a high price to be paid for choosing personal affection and loyalty over their legal obligations.”

After an FBI agent warned Bulger in late 1994 that he was about to be indicted, the mob boss fled Massachusetts with one girlfriend in tow, prosecutor say. He came back to Boston a few weeks later. He dropped off the first girlfriend and picked up Greig, who left her car and poodles with the first girlfriend, prosecutors said.

Prosecutors say Bulger and Greig spent the first year on the run posing as a married couple, traveling to Chicago, New York and Louisiana. They settled in Santa Monica, where they lived in a rent-controlled apartment not far from the Pacific Ocean. Behind a secret wall in the two-bedroom apartment, Bulger stashed 30 weapons and more than $820,000 in cash, prosecutors say.

Bulger spent years on the FBI's "10 most wanted fugitives" list. He and Greig were arrested in June 2011 in Santa Monica after a tipster recognized them.

Thanks to Laura J. Nelson.

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Christopher Varlesi Indicted for Allegedly Causing 15 Investors to Lose Approximately $600,000 in Ponzi-Type Fraud Scheme

A Chicago man who operated an investment trading pool allegedly fraudulently obtained approximately $1.4 million and caused some 15 individual investors to lose about $600,000, federal law enforcement officials announced today. The defendant, Christopher Varlesi, was charged with six counts of mail and wire fraud in an indictment returned yesterday by a federal grand jury. Varlesi allegedly misappropriated a substantial portion of investor funds for his own benefit, including misusing $99,750 in May 2010 to pay for a year’s rent for an apartment in the Trump International Hotel and Tower in Chicago and to make Ponzi-type payments to other investors.

Varlesi, 53, of Chicago, will be arraigned at a later date in U.S. District Court. He was the sole proprietor of Gold Coast Futures & Forex, which purported to buy and sell securities and commodities and operate a pool of investor money for trading purposes but was not actually registered or licensed to do so. The indictment seeks forfeiture of approximately $600,000.

The charges were announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Securities Department assisted in the investigation, as did the Commodity Futures Trading Commission, which filed a civil enforcement lawsuit against Varlesi in March of this year.

According to the indictment, between July 2008 and January 2012, Varlesi made false representations to clients about using their money to trade gold, commodity futures, and foreign currency, the expected return on their investments, and the security of their money. He fraudulently retained investors’ funds and concealed the scheme by creating and distributing false account statements and making Ponzi-type payments to investors, the charges allege. Varlesi also allegedly told clients that their investments were guaranteed to be profitable, with no risk of losing principal. As part of the scheme, the charges allege that he provided promissory notes to certain investors, falsely promising to return the entire principal amount of their investment, as well as guaranteed interest ranging between five to 7.5 percent per month.

The government is being represented by Assistant U.S. Attorney Sarah E. Streicker.

Each count of wire and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. The court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.stopfraud.gov.

An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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