UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK - - - - - - - - - - - - - - - - - -x UNITED STATES OF AMERICA : -v- : INDICTMENT ANTHONY COLOMBO, : 04 Cr. GERARD CLEMENZA, CHRISTOPHER COLOMBO, : JOHN CONTINO, PHILIP DIOGUARDI, : a/k/a Fat Philly, JOHN BERLINGIERI, : a/k/a John Ferrara, a/k/a Mary Peters, : a/k/a Blair Robinson, a/k/a Frank Masters, : a/k/a Paula Jetson, a/k/a Michael Contessa, : JOSEPH FLACCAVENTO, NUNZIO FLACCAVENTO, : FRANCIS ALTIERI, PAUL SEIPMAN, : LEO CALDERA, EDDIE ROBINSON, : ANTHONY DEFRANCO, ANTHONY SEDIA, : a/k/a Ants, VINCENT LAROSA, : BRYAN KELLY, GEOFFREY HAWTHORNE, : ROBERT DI MARTINO, and JOSEPH HERNANDEZ, : Defendants. : - - - - - - - - - - - - - - - - - -x RACKETEERING CHARGES COUNT ONE Racketeering Violation The Grand Jury charges: At all times relevant to this Indictment:
The Enterprise 1. ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, JOHN CONTINO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, and JOSEPH FLACCAVENTO, and others known and unknown, were members of the Colombo Brothers Crew, an off-shoot of the Colombo Organized Crime Family of La Cosa Nostra (the "Colombo Brothers Crew"). The Colombo Brothers Crew is a criminal organization whose members and associates have engaged in numerous criminal acts, including extortion, the financing and making of extortionate extensions of credit and the collection of extensions of credit through extortionate means (commonly known as "loansharking"), mail fraud, commercial bribery, and the operation of illegal gambling businesses. 2. The Colombo Brothers Crew, including its leadership, membership, and associates, constituted an enterprise, as that term is defined in Title 18, United States Code, Section 1961(4) that is, a group of individuals associated in fact, which was engaged in, and the activities of which affected, interstate and foreign commerce. The Colombo Brothers Crew was an organized criminal group based in New York City that operated in the Southern District of New York and elsewhere and constituted an ongoing organization whose members 2
functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. 3. The Colombo Brothers Crew was part of a nationwide criminal organization known by various names, including the Mafia and La Cosa Nostra ( LCN ), which operated through entities known as Families. The Colombo Brothers Crew was a spin-off of the Colombo Organized Crime Family of LCN (the Colombo Organized Crime Family ). In addition to the Colombo Organized Crime Family, five other Families operated in the New York City and New Jersey area, namely, the Genovese Organized Crime Family of LCN, the Luchese Organized Crime Family of LCN, the Gambino Organized Crime Family of LCN, the Bonanno Organized Crime Family of LCN, and the Decavalcante Organized Crime Family of LCN. 4. The Colombo Organized Crime Family operated through groups of individuals known as crews and regimes, most of which were based in and around New York City. Each crew had as its leader a person known as a Caporegime, Capo, or Captain, and consisted of made members, sometimes known as soldiers, wiseguys, friends of ours, and good fellows. Soldiers were aided in their criminal endeavors by other trusted individuals, known as associates, who sometimes were referred to as connected or identified as with a soldier. Associates participated in the various activities of the crew and its members. 3
5. Each Capo was responsible for supervising the criminal activities of his crew and provided soldiers and associates with support and protection. In return, the Capo typically received a share of the illegal earnings of each of his crew's soldiers and associates, which was sometimes referred to as tribute. 6. Above the Capos were the highest-ranking members of the Colombo Organized Crime Family. The head of the Colombo Organized Crime Family was known as the Boss, who was normally assisted by an Underboss and a Consigliere, or counselor. The Boss, Underboss, and Consigliere were responsible for, among other things, setting policy, resolving disputes among members of the Colombo Organized Crime Family, and resolving disputes between members of the Colombo Organized Crime Family and members of other criminal organizations. At various times relevant to this Indictment, members of the Colombo Organized Crime Family were temporarily appointed to serve as Boss, Underboss, Consigliere, or Capo in place of an incarcerated member holding that position. Whenever this occurred, the member holding the temporary appointment would function in an acting capacity for the incarcerated member, who continued to hold the official position in the Family. 7. The Boss, Underboss, and Consigliere of the Colombo Organized Crime Family supervised, supported, protected, and disciplined the Capos, Soldiers, and Associates, and regularly received reports regarding their various activities. 4
8. The Colombo Organized Crime Family took its name from the late Joseph Colombo, Sr., its former boss, who was gunned down in 1971. ANTHONY COLOMBO and CHRISTOPHER COLOMBO are the first and fourth sons, respectively, of Joseph Colombo, Sr. 9. Several years after the death of Joseph Colombo, in the early 1990's, two factions of the Colombo Organized Crime Family began to vie for outright control over the affairs of the Family. One faction was led by Alphonse Persico, the son of the Colombo Organized Crime Family s longtime Boss, Carmine Persico, who was then, and still is, serving a federal sentence of life imprisonment; the other faction was led by Victor Orena, a high ranking member of the Colombo Organized Crime Family. At the conclusion of the bloody internecine war, numerous members and associates on both sides lay dead, and the Persico faction emerged victorious. ANTHONY COLOMBO, CHRISTOPHER COLOMBO, and GERARD CLEMENZA, all of whom are now members of the Colombo Brothers Crew, were in the losing Orena faction. In the aftermath of the Colombo Family war, ANTHONY COLOMBO and GERARD CLEMENZA were put on the shelf by the Colombo Organized Crime Family and, as a result, were no longer involved in the day-today operations of the Colombo Organized Crime Family. Under the rules of LCN, however, both ANTHONY COLOMBO and GERARD CLEMENZA remained soldiers in the Colombo Organized Crime Family. 10. After being shelved, ANTHONY COLOMBO and GERARD CLEMENZA, as well as CHRISTOPHER COLOMBO, formed the Colombo Brothers Crew, which has acted as an off-shoot of the Colombo 5
Organized Crime Family. The Colombo Brothers Crew has continued to engage in the traditional criminal activities of LCN, including extortion, loansharking, illegal gambling, and fraud. The Colombo Brothers Crew has also retained some of the standard features of crews within LCN Families, including a hierarchical structure, a system of paying tribute to the higher-ranking members within the crew, and the practice of having only made members within the crew resolve disputes with made members of other LCN Families. The Defendants 11. At various times relevant to this Indictment, certain of the defendants listed below were members or associates of the Colombo Organized Crime Family, and all of the defendants listed below were members of the Colombo Brothers Crew. The defendants listed below participated in the operation and management of the Colombo Brothers Crew as follows: a. ANTHONY COLOMBO was a soldier of the Colombo Organized Crime Family and a member of the Colombo Brothers Crew. ANTHONY COLOMBO was responsible for, among other things, supervising and coordinating the illegal activities of the members of the Colombo Brothers Crew; authorizing and directing the members of the Colombo Brothers Crew to commit various crimes, including extortion, loansharking, illegal gambling, fraud, and commercial bribery; and resolving disputes within the Colombo Brothers Crew and between members of that crew and other LCN Families, their members and associates. 6
b. GERARD CLEMENZA was a soldier of the Colombo Organized Crime Family and a member of the Colombo Brothers Crew. CLEMENZA was responsible for, among other things, supervising and coordinating the illegal activities of the members of the Colombo Brothers Crew; authorizing and directing the members of the Colombo Brothers Crew to commit various crimes, including loansharking; and resolving disputes within the Colombo Brothers Crew and between members of that crew and other LCN Families, their members and associates. c. CHRISTOPHER COLOMBO was an associate in the Colombo Organized Crime Family and a member of the Colombo Brothers Crew. CHRISTOPHER COLOMBO was responsible for, among other things, supervising and coordinating the criminal activities of the Colombo Brothers Crew, and authorizing and directing the members of the Colombo Brothers Crew to commit various crimes, including loansharking and illegal gambling. Among CHRISTOPHER COLOMBO s criminal activities were participation in extortion, loansharking, and the operation of illegal gambling businesses. d. JOHN CONTINO was an associate in the Colombo Organized Crime Family and a member of the Colombo Brothers Crew. Among CONTINO s criminal activities were participation in extortion, fraud, and commercial bribery. e. PHILIP DIOGUARDI was an associate in the Colombo Organized Crime Family and a member of the Colombo Brothers Crew. Among DIOGUARDI s criminal activities were 7
participation in extortion, loansharking, fraud, and the operation of illegal gambling businesses. f. JOHN BERLINGIERI was an associate in the Colombo Organized Crime Family and a member of the Colombo Brothers Crew. Among BERLINGIERI s criminal activities were participation in the operation of illegal gambling businesses and loansharking. g. JOSEPH FLACCAVENTO was a member of the Colombo Brothers Crew, whose criminal activities included participation in loansharking. Purposes of the Enterprise 12. The purposes of the enterprise included the following: a. Enriching the leaders, members, and associates of the enterprise through, among other things: (i) the extortionate control of businesses, persons, and property through threats of physical and economic harm; (ii) the financing, extension, and collection of extortionate extensions of credit, commonly known as loansharking ; (iii) operation of unlawful gambling businesses; (iv) mail fraud; and (v) commercial bribery. b. Preserving and augmenting the power, territory and financial profits of the enterprise through intimidation, and threats of physical and economic harm; and c. Keeping victims and citizens in fear of the enterprise and its leaders, members, and associates by: (i) identifying the enterprise, its leaders, members, and associates, 8
with La Cosa Nostra or the "Mafia"; (ii) causing and threatening to cause economic harm; and (iii) threatening to commit physical violence. Means and Methods of the Enterprise 13. Among the means and methods by which ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, JOHN CONTINO, PHILIP DIOGUARDI, JOHN BERLINGIERI, and JOSEPH FLACCAVENTO, the defendants, and other enterprise members and associates conducted and participated in the conduct of the affairs of the enterprise were the following: a. Members and associates of the enterprise generated and attempted to generate income for the enterprise through, among other things, extortion, loansharking, the operation of illegal gambling businesses, fraud, and commercial bribery. b. To protect and expand the enterprise s criminal operations, members and associates of the enterprise promoted a climate of fear in the community through threats of economic harm and violence. c. Members of the enterprise at times engaged in criminal conduct or coordinated their criminal activities with leaders, members, and associates of other LCN Families. d. So as to avoid law enforcement scrutiny of the enterprise's criminal activities, members and associates of the enterprise conducted clandestine meetings, and generally acted in an evasive, surveillance-conscious manner by, among 9
other things, employing persons to keep a lookout for police activity, frequently moving the locations of their illegal businesses, concealing their business associations and relationships, receiving fraudulently-obtained monies through intermediaries, obtaining telephone and utility service in assumed names, engaging in walk and talks, and typically using coded language to discuss their criminal activities. e. Members and associates of the enterprise attempted to identify and did identify individuals who were working for law enforcement in an undercover capacity or were suspected of providing to law enforcement information about the enterprise, its members and its activities. f. To conceal their receipt of money generated from their criminal activities, members and associates of the enterprise concealed their ownership of various assets that were purchased with proceeds from their criminal activities. The Racketeering Violation 14. From in or about 1994, up to and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, JOHN CONTINO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a "Mary Peters," a/k/a "Blair Robinson, a/k/a "Frank Masters," a/k/a "Paula Jetson," a/k/a "Michael Contessa, and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, being persons employed by and associated with the racketeering enterprise described in 10
Paragraphs 1 through 13 above, namely, the Colombo Brothers Crew, which enterprise was engaged in, and the activities of which affected, interstate and foreign commerce, unlawfully, willfully, and knowingly conducted and participated, directly and indirectly, in the conduct of the affairs of that enterprise through a pattern of racketeering activity, as that term is defined in Title 18, United States Code, Sections 1961(1) and 1961(5), that is, through the commission of the following racketeering acts: The Pattern of Racketeering 15. The pattern of racketeering activity, as defined in Title 18, United States Code, Sections 1961(1) and 1961(5), consisted of the following acts: Racketeering Act One: Operation Of an Illegal Gambling Business 16. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act One: Illegal Gambling Business a. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO, ANTHONY COLOMBO, PHILIP DIOGUARDI, and JOHN BERLINGIERI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly conducted, financed, managed, supervised, directed, and owned all and part of an illegal gambling business, namely, a sports betting operation, in violation of New York State Penal Law Sections 11
225.00, 225.05, 225.10, 225.15, and 225.20, which business involved five and more persons who conducted, financed, managed, supervised, directed, and owned all and part of such business, and which business had been and remained in substantially continuous operation for a period in excess of thirty days and had gross revenues of $2,000 in a single day, in violation of Title 18, United States Code, Sections 1955 and 2. Use of a Wire Communication Facility b. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO, ANTHONY COLOMBO, PHILIP DIOGUARDI, and JOHN BERLINGIERI, the defendants, and others known and unknown, being engaged in the business of betting and wagering, unlawfully, willfully, and knowingly did use a wire communication facility, namely, the telephones assigned phone numbers (212) 427-5258 and (212) 369-3638, for the transmission in interstate and foreign commerce of bets, wagers and information assisting in the placing of bets and wagers on sporting events and contests, and for the transmission of wire communications which did entitle the recipient to receive money and credit as a result of bets and wagers, and for information assisting in the placing of bets and wagers, in violation of Title 18, United States Code, Sections 1084 and 2. 12
Racketeering Act Two: Loansharking Conspiracy 17. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Two: Conspiracy To Make Extortionate Extensions Of Credit a. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, JOHN BERLINGIERI, and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other to make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to various individuals, in violation of Title 18, United States Code, Section 892. Conspiracy To Collect Extensions Of Credit By Extortionate Means b. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, JOHN BERLINGIERI, and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other to participate in the use of extortionate means, to wit, threats of 13
violence, to collect and attempt to collect from various individuals extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), and to punish such persons for the non-repayment of said extensions of credit, in violation of Title 18, United States Code, Section 894. Racketeering Act Three: Loansharking of Victim-1 and Victim-2 18. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Three: Making Extortionate Extensions Of Credit a. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly did make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to Victim-1 and Victim-2, in violation of Title 18, United States Code, Sections 892 and 2. Collection Of Extensions Of Credit By Extortionate Means b. From in or about 1994 up through and including in or about 2001, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO and JOSEPH FLACCAVENTO, the defendants, together with others known and unknown, unlawfully, willfully, and knowingly participated in the use of extortionate 14
means to collect and attempt to collect extensions of credit from Victim-1 and Victim-2, and to punish such persons for the nonrepayment of said extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), in violation of Title 18, United States Code, Sections 894 and 2. Racketeering Act Four: Loansharking of the UC 19. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Four: Making Extortionate Extensions Of Credit a. From in or about November 2000, up through and including in or about March 2001, in the Southern District of New York and elsewhere, JOSEPH FLACCAVENTO, the defendant, and others known and unknown, unlawfully, willfully, and knowingly did make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to a law enforcement officer acting in an undercover capacity (the UC ), in violation of Title 18, United States Code, Sections 892 and 2. Collection Of Extensions Of Credit By Extortionate Means b. From in or about November 2000, up through and including in or about March 2001, in the Southern District of New York and elsewhere, JOSEPH FLACCAVENTO, the defendant, and others known and unknown, unlawfully, willfully, and knowingly participated in the use of extortionate means to collect and 15
attempt to collect extensions of credit from the UC, and to punish such person for the non-repayment of said extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), in violation of Title 18, United States Code, Sections 894 and 2. Racketeering Act Five: Loansharking of Victim-3 20. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Five: Making Extortionate Extensions Of Credit a. From in or about June 1999, up through and including in or about January 2000, in the Southern District of New York and elsewhere, GERARD CLEMENZA and PHILIP DIOGUARDI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly did make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to Victim-3, in violation of Title 18, United States Code, Sections 892 and 2. Collection Of Extensions Of Credit By Extortionate Means b. From in or about June 1999, up through and including in or about January 2000, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, PHILIP DIOGUARDI, and JOHN BERLINGIERI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly participated in the use of extortionate means to collect and attempt to 16
collect extensions of credit from Victim-3, and to punish such person for the non-repayment of said extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), in violation of Title 18, United States Code, Sections 894 and 2. Racketeering Act Six: Loansharking of Victim-4 21. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Six: Making Extortionate Extensions Of Credit a. From in or about 1999, up through and including in or about 2001, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, and JOHN BERLINGIERI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly did make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to Victim-4, in violation of Title 18, United States Code, Sections 892 and 2. Collection Of Extensions Of Credit By Extortionate Means b. From in or about 1999, up through and including in or about 2001, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, and JOHN BERLINGIERI, the defendants, and others known and unknown, unlawfully, willfully, and 17
knowingly participated in the use of extortionate means to collect and attempt to collect extensions of credit from Victim- 4, and to punish such person for the non-repayment of said extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), in violation of Title 18, United States Code, Sections 894 and 2. Racketeering Act Seven: Loansharking of Victim-5 22. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Seven: Making Extortionate Extensions Of Credit a. From in or about 2000, up through and including in or about 2001, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO and JOHN BERLINGIERI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly did make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to Victim-5, in violation of Title 18, United States Code, Sections 892 and 2. Collection Of Extensions Of Credit By Extortionate Means b. From in or about 2000, up through and including in or about 2001, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO and JOHN BERLINGIERI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly participated in the use of extortionate means to 18
collect and attempt to collect extensions of credit from Victim- 5, and to punish such person for the non-repayment of said extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), in violation of Title 18, United States Code, Sections 894 and 2. Racketeering Act Eight: Conspiracy to Extort EDP 23. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, CHRISTOPHER COLOMBO, and JOHN CONTINO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other to commit extortion, as that term is defined in Title 18, United States Code, Section 1951(b)(2), by conspiring to obtain money and property from and with the consent of another person, to wit, an officer of certain cleaning and construction companies based in New York, New York (the EDP Entities ), which consent would have been, and was, induced by the wrongful use of actual and threatened force, violence and fear, and thereby would and did obstruct, delay and affect commerce and the movement of articles and commodities in commerce, as that term is defined in Title 18, United States Code, Section 1951(b)(3), to wit, ANTHONY COLOMBO and JOHN CONTINO, and others known and unknown, used the Colombo Brothers Crew s corrupt influence over, and extortionate control of, the EDP Entities to, among other things, (1) take control of most of the business operations of the EDP Entities; (2) obtain 19
hundreds of thousands of dollars in compensation for themselves; and (3) obtain no-show jobs, wages, and/or other benefits, including unemployment payments, for members of the Crew, members of their families, and their associates, in violation of Title 18, United States Code, Section 1951. Racketeering Act Nine: Extortion and Fraud In Connection With the No-Show Job of ANTHONY COLOMBO S Immediate Family Member 24. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Nine: Extortion a. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO and JOHN CONTINO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly committed and attempted to commit extortion, as that term is defined in Title 18, United States Code, Section 1951(b)(2), by obtaining and attempting to obtain money and property from and with the consent of another person, to wit, officers of the EDP Entities, which consent would have been, and was, induced by the wrongful use of actual and threatened force, violence and fear, and thereby would and did obstruct, delay and affect commerce and the movement of articles and commodities in commerce, as that term is defined in Title 18, United States Code, Section 1951(b)(3), to wit, using the Colombo Brothers Crew s corrupt influence over, and extortionate control of, the EDP Entities, ANTHONY COLOMBO and JOHN CONTINO caused the EDP Entities to pay 20
an immediate family member of ANTHONY COLOMBO tens of thousands of dollars in connection with a no-show job, in violation of Title 18, United States Code, Sections 1951 and 2. Mail Fraud b. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO and JOHN CONTINO, the defendants, and others known and unknown, having devised and intending to devise a scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, to wit, a scheme to defraud DoubleClick, Inc. ( DoubleClick ), a publicly-traded Internet advertising company, whereby an immediate family member of ANTHONY COLOMBO received monies from the EDP Entities that were paid to the EDP Entities by DoubleClick, as payment for hours that the family member did not work as either an employee of the EDP Entities or DoubleClick, for the purpose of executing such scheme and artifice and attempting so to do, unlawfully, willfully, and knowingly did place in a post office and authorized depository for mail matter, matters and things to be sent and delivered by the Postal Service, and did cause to be delivered by mail according to the direction thereon, and at the place it was directed to be delivered by the person to whom it was addressed, such matters and things, to wit, checks and other records that were sent via the United States mail, in violation of Title 18, United States Code, Sections 1341 and 2. 21
Racketeering Act Ten: Extortion and Fraud In Connection With the No-Show Job of PHILIP DIOGUARDI 25. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Ten: Extortion a. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, JOHN CONTINO, and PHILIP DIOGUARDI, the defendants, and others known and unknown, unlawfully, willfully, and knowingly committed and attempted to commit extortion, as that term is defined in Title 18, United States Code, Section 1951(b)(2), by obtaining and attempting to obtain money and property from and with the consent of another person, to wit, officers of the EDP Entities, which consent would have been, and was, induced by the wrongful use of actual and threatened force, violence and fear, and thereby would and did obstruct, delay and affect commerce and the movement of articles and commodities in commerce, as that term is defined in Title 18, United States Code, Section 1951(b)(3), to wit, using the Colombo Brothers Crew s corrupt influence over, and extortionate control of, the EDP Entities, ANTHONY COLOMBO, JOHN CONTINO, and PHILIP DIOGUARDI caused the EDP Entities to pay DIOGUARDI monies from the EDP Entities and others, as payment for hours that DIOGUARDI did not work as an employee of the EDP Entities, in violation of Title 18, United States Code, Sections 1951 and 2. 22
Mail Fraud b. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, JOHN CONTINO, and PHILIP DIOGUARDI, a/k/a Fat Philly, the defendants, and others known and unknown, having devised and intending to devise a scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, to wit, a scheme to defraud DoubleClick whereby PHILIP DIOGUARDI received monies from the EDP Entities that were paid to the EDP Entities by DoubleClick as payment for hours that PHILIP DIOGUARDI did not work as an employee of either the EDP Entities or DoubleClick, for the purpose of executing such scheme and artifice and attempting so to do, unlawfully, willfully, and knowingly did place in a post office and authorized depository for mail matter, matters and things to be sent and delivered by the Postal Service, and did cause to be delivered by mail according to the direction thereon, and at the place it was directed to be delivered by the person to whom it was addressed, such matters and things, to wit, checks and other records that were sent via United States mail, in violation of Title 18, United States Code, Sections 1341 and 2. Racketeering Act Eleven: Commercial Bribery and Fraudulent Billing of DoubleClick, Inc. 26. The defendants named below committed the following acts of racketeering, any one of which alone constitutes the commission of Racketeering Act Eleven: 23
Commercial Bribery a. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO and JOHN CONTINO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly traveled in interstate commerce and used the mail and a facility in interstate and foreign commerce, with intent to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of unlawful activity, specifically, commercial bribery in violation of New York State Penal Law Sections 180.00, 180.03, 180.05, and 180.08, and, thereafter, performed and attempted to perform an act to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of such unlawful activity, to wit, an employee of DoubleClick caused DoubleClick to provide multiple payments for the same services to companies controlled by ANTHONY COLOMBO and CONTINO, and the DoubleClick employee thereafter received kickbacks, in the form of cash payments and wire transfers, from ANTHONY COLOMBO and CONTINO, without the knowledge of his supervisors at DoubleClick, in violation of Title 18, United States Code, Sections 1952(a)(3) and 2. State Commercial Bribery Violation b. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO and JOHN CONTINO, the defendants, 24
conferred, and offered and agreed to confer, a benefit upon an employee, agent and fiduciary without the consent of the latter's employer and principal, with intent to influence his conduct in relation to his employer's and principal's affairs, and the value of the benefit conferred and offered and agreed to be conferred exceeded one thousand dollars and caused economic harm to the employer and principal in an amount exceeding two hundred fifty dollars, in violation of New York State Penal Law, Section 180.03. Mail Fraud c. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO and JOHN CONTINO, the defendants, and others known and unknown, having devised and intending to devise a scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, to wit, a scheme to defraud DoubleClick by paying kickbacks to an employee of DoubleClick who approved fraudulent invoices submitted by companies controlled by ANTHONY COLOMBO and CONTINO, for the purpose of executing such scheme and artifice and attempting so to do, unlawfully, willfully, and knowingly did place in a post office and authorized depository for mail matter, matters and things to be sent and delivered by the Postal Service, and did cause to be delivered by mail according to the direction thereon, and at the place it was directed to be delivered by the person to whom it 25
was addressed, such matters and things, to wit, fraudulent invoices and checks sent through the United States mail, in violation of Title 18, United States Code, Sections 1341 and 2. (Title 18, United States Code, Section 1962(c).) COUNT TWO Racketeering Conspiracy The Grand Jury further charges: 27. Paragraphs 1 through 13 and 16 through 26 of this Indictment are repeated, re-alleged, and incorporated by reference as though fully set forth herein. 28. From in or about 1994, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, JOHN CONTINO, PHILIP DIOGUARDI, JOHN BERLINGIERI, and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, being persons employed by and associated with the racketeering enterprise described in Paragraphs 1 through 13 of this Indictment, namely, the Colombo Brothers Crew, which enterprise was engaged in, and the activities of which affected, interstate and foreign commerce, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other to conduct and participate, directly and indirectly, in the conduct of the affairs of that enterprise through a pattern of racketeering activity, as that term is defined in Title 18, United States Code, Sections 1961(1) and 1961(5), which pattern is set forth more fully in paragraphs 16 through 26, 26
above, as Racketeering Acts One through Eleven. Each defendant agreed that a conspirator would commit at least two acts of racketeering activity in the conduct of the affairs of the enterprise. (Title 18, United States Code, Section 1962(d).) GAMBLING CHARGES COUNT THREE Gambling Conspiracy The Grand Jury further charges: 29. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the defendants, and others known and unknown, unlawfully, willfully and knowingly combined, conspired, confederated and agreed together and with each other to commit an offense against the United States, to wit, to violate Title 18, United States Code, Sections 1084 and 1955. 30. It was a part and an object of the conspiracy that ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary 27
Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the defendants, and others known and unknown, being engaged in the business of betting and wagering, unlawfully, willfully and knowingly would and did use a wire communication facility for the transmission in interstate and foreign commerce of bets and wagers and information assisting in the placing of bets and wagers on a sporting event and contest, and for the transmission of a wire communication which did entitle the recipient to receive money and credit as a result of bets and wagers, and for information assisting in the placing of bets and wagers, to wit, the defendants used a wire communication facility, namely, the telephones assigned phone numbers (212) 427-5258 and (212) 369-3638, to conduct a sports betting business, in violation of Title 18, United States Code, Section 1084. 31. It was further a part and an object of the conspiracy that ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the 28
defendants, and others known and unknown, unlawfully, willfully, and knowingly would and did conduct, finance, manage, supervise, direct, and own all and part of an illegal gambling business, namely, a sports betting operation, in violation of New York State Penal Law Sections 225.00, 225.05, 225.10, 225.15, and 225.20, which business involved five and more persons who conducted, financed, managed, supervised, directed, and owned all and part of it, and which business had been and had remained in substantially continuous operation for a period in excess of thirty days and had gross revenues of $2,000 in a single day, in violation of Title 18, United States Code, Section 1955. Overt Acts 32. In furtherance of the conspiracy and to effect the illegal objects thereof, the following overt acts, among others, were committed in the Southern District of New York and elsewhere: a. On or about January 6, 2000, ANTHONY COLOMBO had a meeting with PHILIP DIOGUARDI in New York, New York. b. On or about October 9, 2000, CHRISTOPHER COLOMBO had a telephone conversation about illegal gambling. c. On or about October 16, 2000, PHILIP DIOGUARDI, a/k/a Fat Philly, had a telephone conversation about illegal gambling. d. On or about October 12, 2000, JOHN BERLINGIERI had a telephone conversation about illegal gambling. 29
e. On or about November 17, 2000, PAUL SEIPMAN had a telephone conversation about illegal gambling. f. On or about December 3, 2000, LEO CALDERA had a telephone conversation about illegal gambling. g. On or about October 9, 2000, EDDIE ROBINSON had a telephone conversation about illegal gambling. h. On or about October 20, 2000, ANTHONY DEFRANCO had a telephone conversation about illegal gambling. i. On or about December 14, 2000, ANTHONY SEDIA, a/k/a Ants, had a telephone conversation about illegal gambling. j. On or about February 19, 2001, VINCENT LAROSA had a telephone conversation about illegal gambling. k. On or about March 16, 2001, BRYAN KELLY had a telephone conversation about illegal gambling. l On or about November 6, 2000, GEOFFREY HAWTHORNE had a telephone conversation about illegal gambling. m. On or about December 22, 2000, ROBERT DI MARTINO had a telephone conversation about illegal gambling. n. On or about October 13, 2000, JOSEPH HERNANDEZ had a telephone conversation about illegal gambling. (Title 18, United States Code, Section 371.) 30
COUNT FOUR Operation of Illegal Gambling Business The Grand Jury further charges: 33. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the defendants, and others known and unknown, unlawfully, willfully, and knowingly conducted, financed, managed, supervised, directed, and owned all and part of an illegal gambling business, namely, a sports betting operation, in violation of New York State Penal Law Sections 225.00, 225.05, 225.10, 225.15, and 225.20, which business involved five and more persons who conducted, financed, managed, supervised, directed, and owned all and part of it, and which business had been and had remained in substantially continuous operation for a period in excess of thirty days and had gross revenues of $2,000 in a single day. (Title 18, United States Code, Sections 1955 and 2.) 31
COUNT FIVE Transmission of Wagering Information The Grand Jury further charges: 34. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the defendants, and others known and unknown, being engaged in the business of betting and wagering, unlawfully, willfully, and knowingly used a wire communication facility for the transmission in interstate and foreign commerce of bets and wagers and information assisting in the placing of bets and wagers on a sporting event and contest, and for the transmission of a wire communication which did entitle the recipient to receive money and credit as a result of bets and wagers, and for information assisting in the placing of bets and wagers, to wit, the defendants used the telephone number assigned (212) 427-5258 to facilitate and carry on a sports betting operation. (Title 18 United States Code, Sections 1084(a) and 2.) 32
COUNT SIX Transmission of Wagering Information The Grand Jury further charges: 35. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the defendants, and others known and unknown, being engaged in the business of betting and wagering, unlawfully, willfully, and knowingly used a wire communication facility for the transmission in interstate and foreign commerce of bets and wagers and information assisting in the placing of bets and wagers on a sporting event and contest, and for the transmission of a wire communication which did entitle the recipient to receive money and credit as a result of bets and wagers, and for information assisting in the placing of bets and wagers, to wit, the defendants used the telephone assigned phone number (212) 369-3638 to facilitate and carry on a sports betting operation. (Title 18 United States Code, Sections 1084(a) and 2.) 33
COUNT SEVEN Use of Interstate Facility in Aid of Racketeering The Grand Jury further charges: 36. From in or about 1999, up through and including in or about 2002, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, a/k/a Fat Philly, JOHN BERLINGIERI, a/k/a John Ferrara, a/k/a Mary Peters, a/k/a Blair Robinson, a/k/a Frank Masters, a/k/a Paula Jetson, a/k/a "Michael Contessa, PAUL SEIPMAN, LEO CALDERA, EDDIE ROBINSON, ANTHONY DEFRANCO, ANTHONY SEDIA, a/k/a Ants, VINCENT LAROSA, BRYAN KELLY, GEOFFREY HAWTHORNE, ROBERT DI MARTINO, and JOSEPH HERNANDEZ, the defendants, and others known and unknown, unlawfully, willfully, and knowingly traveled in interstate commerce and used the mail and a facility in interstate and foreign commerce, with intent to promote, manage, establish, carry on, and facilitate the promotion, management, establishment and carrying on of unlawful activity, specifically, gambling in violation of New York State Penal Law Sections 225.00, 225.05, 225.10, 225.15, and 225.20, and thereafter, performed and attempted to perform an act to promote, manage, establish, carry on, and facilitate the promotion, management, establishment, and carrying on of such unlawful activity, to wit, the defendants used the telephones 34
assigned phone numbers (212) 427-5258 and (212) 369-3638 to facilitate and carry on a sports betting operation. (Title 18, United States Code, Sections 1952(a)(3) and 2.) LOANSHARKING CHARGES COUNT EIGHT Conspiracy To Make Extortionate Extensions Of Credit The Grand Jury further charges: 37. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, JOHN BERLINGIERI, JOSEPH FLACCAVENTO, and NUNZIO FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other to make extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to various individuals. (Title 18, United States Code, Section 892.) COUNT NINE Conspiracy To Collect Extensions Of Credit By Extortionate Means The Grand Jury further charges: 38. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, ANTHONY COLOMBO, GERARD CLEMENZA, CHRISTOPHER COLOMBO, PHILIP DIOGUARDI, JOHN BERLINGIERI, JOSEPH FLACCAVENTO, and 35
NUNZIO FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other to participate in the use of extortionate means, to wit, threats of violence, to collect and attempt to collect from various individuals extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7), and to punish such persons for the non-repayment of said extensions of credit. (Title 18, United States Code, Section 894.) COUNT TEN Making Extortionate Extensions Of Credit The Grand Jury further charges: 39. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly made extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to Victim-1 and Victim-2. (Title 18, United States Code, Sections 892 and 2.) 36
COUNT ELEVEN Collection Of Extensions Of Credit By Extortionate Means The Grand Jury further charges: 40. From in or about 1994, up through and including in or about 2001, in the Southern District of New York and elsewhere, CHRISTOPHER COLOMBO and JOSEPH FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly did participate in the use of extortionate means to collect and attempt to collect extensions of credit from Victim-1 and Victim-2, and to punish such persons for the nonrepayment of said extensions of credit, as those terms are defined in Title 18, United States Code, Sections 891(5), 891(6), and 891(7). (Title 18, United States Code, Sections 894 and 2.) COUNT TWELVE Making Extortionate Extensions Of Credit The Grand Jury further charges: 41. From in or about November 2000, up through and including in or about March 2001, in the Southern District of New York and elsewhere, JOSEPH FLACCAVENTO and NUNZIO FLACCAVENTO, the defendants, and others known and unknown, unlawfully, willfully, and knowingly made extortionate extensions of credit, as that term is defined in Title 18, United States Code, Section 891(6), to the UC. (Title 18, United States Code, Sections 892 and 2.) 37