UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA

                        -v -                                                                                         INDICTMENT

ANTHONY PEZZULLO,                                                                              00 Cr.

     a/k/a "Razor,"

     a/k/a "Razorhead,"

PHILLIP DESIMONE,

     a/k/a "Philly,"

JOSEPH DATELLO,

     a/k/a "Big Joe,"

     a/k/a "Joey Glasses,"

JOSEPH ARTHUR ZAMBARDI,

a/k/a "Artie,"

ANDREW REYNOLDS,

ANTHONY RUCERETO,

                                                           Defendants.

 

                                                                  COUNT ONE

                        The Grand Jury charges:

                                                                  Background

 

At all times relevant to this Indictment:

1. The Luchese Family of La Cosa Nostra ("the Luchese Family") maintained a "Construction Panel" consisting of "made members" of the Luchese Family whose purpose was to oversee Luchese Family interests in the construction industry in the New York City area (hereinafter the "Construction Panel"). The Construction Panel, among other things, was involved in the following: (1) securing contracts for contractors associated with the Luchese Family either by bid-rigging, force, or other illegal means; (2) providing "labor peace" for contractors associated with the Luchese Family by intervening on a contractor's behalf with various construction-related unions either by force, intimidation, or


illicit payments to corrupt union officials; (3) extorting construction contractors by requiring them to pay money to the Luchese Family in exchange for being allowed to obtain or perform certain construction work; (4) assisting contractors associated with the Luchese Family in the collection of money owed by other companies to such contractors from construction jobs; and (5) settling disputes that arose with other La Cosa Nostra Families in connection with the construction activities of contractors associated with the Luchese Family. In addition, the Construction Panel was responsible for ensuring that the illegal proceeds obtained from contractors in connection with the above-referenced activities were properly distributed to the Luchese Family hierarchy.

 

2          ANTHONY PEZZULLO, a/k/a "Razor," a/k/a "Razorhead," the defendant, was one of the three Luchese Family members who comprised the Luchese Family's Construction Panel from at least the mid-1990s. PEZZULLO was removed from the Construction Panel in or about mid-1998. As a member of the Construction Panel, PEZZULLO was responsible for, among other things, carrying out the illicit labor peace arrangements and extortionate demands made by the Luchese Family in the construction industry, collecting money from construction contractors operating under the "protection" of the Luchese Family, and interacting directly with representatives of other La Cosa Nostra Families to settle construction-related disputes.

 

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3.                    PHILLIP DESIMONE, a/k/a "Philly," the defendant, was one of the three Luchese Family members who comprised the Luchese Family's Construction Panel from at least the mid-1990s. As a member of the Construction Panel, DESIMONE was responsible for, among other things, carrying out the illicit labor peace arrangements and extortionate demands made by the Luchese Family in the construction industry, collecting money from construction contractors operating under the "protection" of the Luchese Family, and interacting directly with representatives of other La Cosa Nostra Families to settle construction-related disputes. Upon PEZZULLO's removal from the Construction Panel in or about mid-1998, DESIMONE's responsibility for the above-referenced matters was expanded to include supervision of certain construction companies and matters previously controlled by PEZZULLO.

 

4.     JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey Glasses," the defendant, was one of the three Luchese Family members who comprised the Luchese Family's Construction Panel from at least the mid-1990s. As a member of the Construction Panel, DATELLO was responsible for, among other things, carrying out the illicit labor peace arrangements and extortionate demands made by the Luchese Family in the construction industry, collecting money from construction contractors operating under the "protection" of the Luchese Family, and interacting directly with representatives of other La Cosa Nostra Families to settle construction-related disputes.

 

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5.         JOSEPH ARTHUR ZAMBARDI, a/k/a "Artie," the defendant, who is a member of the Luchese Family, assisted the Construction Panel members in the supervision of the illicit labor peace arrangements and extortionate demands made by the Luchese Family in the construction industry.

 

6.         ANDREW REYNOLDS, the defendant, who is an associate of the Luchese Family, assisted the Construction Panel members in the supervision of the illicit labor peace arrangements and extortionate demands made by the Luchese Family in the construction industry. That assistance included, among other things, meeting with union officials involved in construction projects being performed by Luchese -controlled companies in order to resolve union issues arising on such projects.

 

7.         At all times relevant to this Indictment, Commercial Brick was a company that was engaged in masonry work on construction projects located primarily in the New York/New Jersey area, and employed persons in an industry affecting interstate commerce who were affiliated with various labor organizations which represented, sought to represent, and would admit such employees to their membership.

 

The Conspiracy

 

8.         From in or about the mid-1990s through in or about 1999, in the Southern District of New York and elsewhere, ANTHONY PEZZULLO, a/k/a "Razor," a/k/a "Razorhead," PHILLIP DESIMONE, a/k/a "Philly," JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey Glasses," JOSEPH ARTHUR ZAMBARDI, a/k/a "Artie," and ANDREW REYNOLDS, the

 

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defendants, and others known and unknown to the Grand Jury, unlawfully, willfully and knowingly, did conspire, combine, confederate and agree together and with each other to commit extortion, as that term is defined in Title 18, United States Code, Section 1951 (b) (2) , by obtaining money and property from various individuals, namely, union officials and representatives of construction companies who were involved with, or attempted to become involved with, construction work being performed by Commercial Brick, with their consent, which consent had and would have been induced by the wrongful use of actual and threatened force, violence and fear, and would and thereby did obstruct, delay and affect commerce, and the movement of articles and commodities in commerce.

(Title 18, United States Code, Section 1951.)

 

COUNT TWO

 

The Grand Jury further charges:

9.     Paragraphs 1, 2, and 5 of this Indictment are realleged and incorporated by reference as though fully set forth herein.

10.     At all times relevant to this Indictment, DIBA Construction and Grand Train Construction were companies that were engaged in construction work on projects located in the New York City area and employed persons in an industry affecting interstate commerce who were affiliated with various labor organizations that represented, sought to represent, and would admit such employees to

 

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their membership.

 

The Conspiracy

 

11.       From in or about 1998 through in or about 1999, in the Southern District of New York and elsewhere, ANTHONY PEZZULLO, a/k/a "Razor, 11 a/k/a "Razorhead," and JOSEPH ARTHUR ZAMBARDI, a/k/a "Artie," the defendants, and others known and unknown to the Grand Jury, unlawfully, willfully and knowingly, did conspire, combine, confederate and agree together and with each other to commit extortion, as that term is defined in Title 18, United States Code, Section 1951(b) (2) , by obtaining money and property from various individuals, namely, union officials who were involved with, or attempted to become involved with, construction jobs being performed by the operators of DIBA Construction and Grand Train Construction, with their consent, which consent had and would have been induced by the wrongful use of actual and threatened force, violence and fear, and would and thereby did obstruct, delay and affect commerce, and-the movement of articles and commodities in commerce.

 

(Title 18, United States Code, Section 1951.)

 

COUNT THREE

 

The Grand Jury further charges:

 

12.       Paragraphs 1 and 4 of this Indictment are realleged and incorporated by reference as though fully set forth herein.

 

The Conspiracy

 

13.       In or about 1998, in the Southern District of New York and elsewhere, JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey

 

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Glasses," and ANTHONY RUCERETO, the defendants, and others known and unknown to the Grand Jury, unlawfully, willfully and knowingly, did conspire, combine, confederate and agree together and with each other to commit offenses against the United States, that is, to violate Section 1343 of Title 18, United States Code.

 

The a Object of the Conspiracy

 

14.       It was an object of the conspiracy that JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey Glasses," and ANTHONY RUCERETO, the defendants, and others known and unknown to the Grand Jury, unlawfully, willfully and knowingly, 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, would and did transmit and cause to be transmitted by means of wire communication in interstate commerce, writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, in violation of Title 18, United States Code, Section 1343.

 

Overt Acts

 

15.       In furtherance of the conspiracy and to effect the illegal object thereof, the following overt acts, among others, were committed in the Southern District of New York and elsewhere:

 

a.         In or about 1998, ANTHONY RUCERETO, the defendant, submitted a bid of approximately $2.9 million on behalf of S&S Contracting Company for renovations to be performed at the Park Central Hotel in Manhattan.

 

b.         In or about 1998, ANTHONY RUCERETO, the

 

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defendant, agreed with co-conspirators not named as defendants herein, to resubmit S&S Contracting Company's bid in an amount slightly less than $5 million for drywall work to be performed at the Park Central Hotel in Manhattan, which would be later substantiated by the submission of fraudulent and inflated work requisitions, in exchange for a kickback to a representative of the contracting management firm supervising the project.

c.         In or about 1998, a representative of S&S Contracting Company, who is a co-conspirator not named as a defendant herein, spoke by telephone from New Jersey with another co-conspirator not named as a defendant herein, in Manhattan concerning the submission of the fraudulently inflated bid on the Park Central Hotel project.

d.         In or about 1998, representatives of S&S Contracting Company submitted a revised bid of approximately $5 million for drywall work to be performed at the Park Central Hotel in Manhattan.

e.         In or about 1998, JOSEPH DATELLO, the defendant, met with co-conspirators not named as defendants herein to discuss the payment of the promised kickback to a representative of the construction management company supervising the Park Central Hotel renovation project.

f.          In or about 1998, a co-conspirator not named as a defendant herein paid a cash kickback to a representative of the construction management company supervising the Park Central Hotel renovation project in exchange for having awarded S&S Contracting

 

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Company the drywall contract at the fraudulently inflated bid. (Title 18, United States Code, Section 371.)

 

COUNT FOUR

 

Wire Fraud

 

                                    The Grand Jury further charges:

 

                        16.       In or about 1998, in the Southern District of New York and elsewhere, JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey Glasses," and ANTHONY RUCERETO, the defendants, together with others known and unknown to the Grand Jury, unlawfully, willfully, and knowingly, 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, did transmit and cause to be transmitted by means of wire communication in interstate commerce, writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, to wit, a representative of S&S Contracting Company, who is a co-conspirator not named as a defendant herein, spoke by telephone from New Jersey with another co-conspirator, not named as a defendant herein, in Manhattan concerning the submission of a fraudulently inflated bid for drywall work on the Park Central Hotel construction project.

 

(Title 18, United States Code, Sections 1343 and 2.)

 

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                                      COUNT FIVE

Making an Extortionate Extension of Credit

 

The Grand Jury further charges:

17. From in or about 1997 through in or about 1999, in the Southern District of New York and elsewhere, JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey Glasses," the defendant, unlawfully, willfully, and knowingly did make an extortionate extension of credit, as that term is defined in Title 18, United States Code, Section 891, to two individuals (hereinafter, "Debtor #111 and "Debtor #2").

(Title 18, United States Code, Sections 892 and 2.)

                                                 COUNT SIX

The Collection of an Extension

of Credit By Extortionate Means

 

The Grand Jury further charges:

18. From in or about 1997 through in or about 1999, in the Southern District of New York and elsewhere, JOSEPH DATELLO, a/k/a "Big Joe," a/k/a "Joey Glasses," the defendant, unlawfully, willfully, and knowingly did use, and participate in the use of extortionate means to collect and attempt to collect an extension of credit from Debtor #1 and Debtor #2, and to punish such persons for the non-repayment of said extensions of credit, as that term is defined in Title 18, United States Code, Section 891.

(Title 18, United States Code, Sections 894 and 2.)

 

 

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