NY DA Sept 3, 2000 Indictment against corrupt union officials and mobsters

STEVEN L. CREA, A/KA/ "HERBIE,"

DOMINIC TRUSCELLO,

JOSEPH TANGORRA, A/K/A "FLOWERS,"

JOSEPH DATELLO, A/K/A "BIG JOE,"

PHILIP DESIMONE,

ANTHONY PEZZULLO, A/K/A "RAZOR,"

JOSEPH TRUNCALE, A/K/A "JO JO," INDICTMENT

ARTHUR ZAMBARDI,

SAUL HEIFETZ,

LAWRENCE WECKER,

KENNETH GORDON,

JOSEPH MARTINELLI,

NICHOLAS RUSSO,

STEVEN CHAIT OSSERMAN,

JOSEPH PEZZULLO,

ANDREW REYNOLDS,

ALESSANDRO PALMERI,

GIUSEPPE PALMERI,

MIKOLAJ PONIATOWSKI, A/K/A "NICK,"

JAMES BONAGURA,

ADAM GALLINI, A/K/A "BUZZY,"

KEVIN BARBER,

BRIAN THOMPSON,

DOMINICK DETORE,

ANTHONY FRANTELLIZZI,

DOMINICK FRANTELLIZZI,

ANTHONY RUCERETO, A/K/A "BUSTER,"

ANTHONY O'DONNELL,

GERALD WOODS,

MICHAEL FORDE,

MARTIN DEVEREAUX,

SANTO LANZAFAME, A/K/A "SID,"

JEREMIAH SULLIVAN, SR.,

JOHN CUCCHIARELLA,

ANTHONY BARBAGALLO, A/K/A "SONNY,"

HENRI LABARBERA,

THOMAS ZMICH,

FINBAR O'NEILL,

GRAND TRAIN CORP.,

DIBA CORP.,

MIETEK MASON CONTRACTORS INC.,

LISA CONSTRUCTION CORP., COMMERCIAL BRICK INC.,

MARMER BROTHERS CONSTRUCTION LLC.,

NEW YORK BLACKTOP CORP.,

CLEVELAND CONSTRUCTION CO.,

NORTH BERRY CORP.,

TERRA FIRMA CONSTRUCTION MANAGEMENT

GENERAL CONTRACTING LLC.,

KENT BUILDING SYSTEMS INC.,

Defendants.

__ __________________________________________________________________x

COUNT 1

THE GRAND JURY OF THE COUNTY OF NEW YORK, by this indictment, accuses the defendants Steven L. Crea, Dominic Truscello, Joseph Tangorra, Joseph Datello, Philip DeSimone, Anthony Pezzullo, Joseph Truncale, Arthur Zambardi, Saul Heifetz, Lawrence Wecker, Kenneth Gordon, Joseph Martinelli, Nicholas Russo, Steven Chait Osserman, Joseph Pezzullo, Andrew Reynolds, Alessandro Palmeri, Giuseppe Palmeri, Mikolaj Poniatowski, James Bonagura, Adam Gallini, Kevin Barber, Brian Thompson, Dominick Detore, Anthony Frantellizzi, Dominick Frantellizzi, Anthony Rucereto, Anthony O'Donnell, Gerald Woods, Michael Forde, Martin Devereaux, Santo Lanzafame, Jeremiah Sullivan, Sr., John Cucchiarella, Anthony Barbagallo, Henri LaBarbera, Thomas Zmich, Finbar O'Neill, Grand Train Corp., DIBA Corp., Mietek Mason Contractors Inc., Lisa Construction Corp., Commercial Brick Inc., Marmer Brothers Construction LLC., New York Blacktop Corp., Cleveland Construction Co., North Berry Corp., Terra Firma Construction Management & General Contracting LLC. and Kent Building Systems, Inc. of committing the crime of ENTERPRISE CORRUPTION, in violation of Penal Law Section 460.20(1)(a), as follows:

The defendants, in New York County and elsewhere, from in or about January 1997, through on or about the date of this indictment, having knowledge of the existence of a criminal enterprise, to wit, the Lucchese Organized Crime Family of La Cosa Nostra Construction Group (hereinafter, the "Lucchese Construction Group"), and the nature of its activities and being

employed by and associated with that Criminal Enterprise, intentionally conducted and participated in the affairs of said Enterprise by participating in a pattern of criminal activity.

The Criminal Enterprise

The Lucchese Construction Group was a group of Lucchese Organized Crime Family members and associates, construction industry contractors, and union officials, including all of the Defendants, and others known and unknown to the Grand Jury, sharing a common purpose of engaging in criminal conduct, associated in an ascertainable structure, that was distinct from a pattern of criminal activity, and with a continuity of existence, structure, and criminal purpose beyond the scope of individual criminal incidents.

The Purpose of the Criminal Enterprise

The common purpose of the Lucchese Construction Group was to make money for its members by engaging in, among other things, criminal schemes related to the construction industry, including price fixing, bid rigging and other anticompetitive arrangements. Among the bids that members of the Enterprise rigged included those on construction sub-contracts involving New York City School Construction Authority projects at Intermediate School ("IS") 93 in Queens County, Public School ("PS") 33 in Queens County, and IS 254 in Bronx County; subcontracts for rehabilitation projects with the New York City Department of Transportation for the 59th Street Bridge and the Triborough Bridge and Tunnel Authority for the Triboro Bridge; the renovation of the Park Central Hotel in New York County; and the construction of the Doral Arrowwood conference center in Westchester County.

In addition to being awarded rigged bids, construction industry contractor members of the Enterprise "contractor enterprise members"), through the influence and control of union official members of the enterprise, were able to realize lower labor costs. The corrupt arrangements involved various construction trade unions, including Builders and Allied Craftsmen Local Union No. 1 New York ("BAC Local 1 ")-the bricklayers union for the New

York City area, and Local 608 of the United Brotherhood of Carpenters and Joiners of America-the carpenters' union for much of New York .County. The reduced labor costs realized by contractor enterprise members greatly enhanced their competitiveness in the ,construction industry in the City and State of New York-amounting to the fixing of prices and placed legitimate construction industry contractors who were not a part of the Lucchese Construction Group at a disadvantage. The projects on which contractor enterprise members enjoyed such a competitive advantage included IS 93, PS 33, the Park Central Hotel and luxury apartments at 354 Broadway in New York County.

In return for rigging bids, fixing prices, and engaging in other anticompetitive arrangements, the Lucchese Organized Crime Family members of the Enterprise received a minimum of five percent of each contract price, as a "mob tax," paid by the contractor enterprise members. Additionally, contractor enterprise members were required to employ made members of the Lucchese Organized Crime Family as "no show" or "no work" employees, primarily as a means of maintaining an ostensibly legitimate source of income, but also to provide medical coverage and pensions for these individuals. A "no show" job meant literally that the person was paid for not being present at a job site, and a "no work" job meant that the person would be at a construction site not working, but engaging in other Lucchese ,Organized Crime Family schemes.

Further, some contractor enterprise members, particularly defendant Steven Chait Osserman of Kent Building Systems Inc., a modular construction company, acted as a front for Steven L. Crea who would otherwise not be permitted to conduct business with the School ,Construction Authority. Moreover, Crea required certain contractors to purchase modular construction units from Kent in order to conduct business in New York State.

Structure of the Criminal Enterprise

At all times relevant to this indictment, Lucchese Organized Crime Family members and associates of the Lucchese Construction Group influenced and controlled contractor enterprise members of the Lucchese Construction Group and union official members of the Lucchese Construction Group. In addition, through their association with the Lucchese Organized Crime Family members and associates of the Lucchese Construction Group, the contractor enterprise members of the Lucchese Construction Group influenced the union official members of the Lucchese Construction Group. Below is a list of the Lucchese Construction Group Members by their affiliation with either the Lucchese Organized Crime Family, participating contractor enterprise members, or union official members.

I. Lucchese Organized Crime Family Members and Associates of the Lucchese Construction Group

The Lucchese Organized Crime Family was part of a nationwide criminal organization known by various names including the "Mafia" and "La Cosa Nostra." It operated through entities called "Families," of which the Lucchese Organized Crime Family was one. Each family was run by a "boss." The head of the Lucchese Organized Crime Family was Vittorio Amuso who is serving a life sentence. The "boss" and "acting boss" were assisted by an "underboss" and a counselor or "consigliere." During times relevant to the indictment, defendant Steven L. Crea held the titles of "underboss" and "acting boss" of the Lucchese Organized Crime Family.

Beneath these executives, the Lucchese Organized Crime Family structure consisted of "crews." Each crew was headed by a Lucchese Organized Crime Family member variously referred to as "capo," "captain," or "caporegime," and was comprised of members and associates of the Lucchese Organized Crime Family. Members, also referred to as "soldiers,"

"wiseguys," and "friends," were "made" at formal induction ceremonies. Associates, which included among other individuals, contractors and union officials, although not formally inducted as members of the Lucchese Organized Crime Family, regularly participated in and advanced its affairs.

Defendant Steven L. Crea engaged in criminal activities including the falsification of business records, the rigging of bids and the corruption of union officials. In addition Crea held an undisclosed interest in and managed the business affairs of Kent Building Systems Inc., and oversaw and coordinated the affairs of the Lucchese Organized Crime Family and the Lucchese Construction Group and received the proceeds thereof.

Defendant Dominic Truscello and defendant Joseph Tangorra were Captains in the Lucchese Organized Crime Family. Truscello was the Captain of the Prince Street Crew of the Lucchese Organized Crime Family. He assisted Crea in the direction of the Lucchese Construction Group, supervised his crew of soldiers and associates and received a portion of the proceeds of the pattern of criminal activity involving his crew members--soldier Joseph Datello and associate Sean Richard-involving the labor savings at the Park Central Hotel and the rigged bids at the Doral Arrowwood project. In addition to receiving cash payments, Truscello was placed on the payroll of a contractor so that he could qualify for a pension that he was not entitled to from the Mason Tenders' District Council. Tangorra was a Captain of a Brooklyn based Crew of the Lucchese Organized Crime Family. He assisted Crea in the direction of the Lucchese Construction Group by supervising other members of the Lucchese Construction Group who were soldiers and associates. His crew included defendants Arthur Zambardi, a soldier, and Andrew Reynolds and Giuseppe Palmeri, associates. Tangorra brokered the settlement of a dispute involving the Bonnano Organized Crime Family of La Cosa Nostra which involved defendants Dominick and Anthony Frantellizzi, principals of Commercial Brick

Inc., over the project at 354 Broadway, and also received the proceeds of rigged bids involving projects at IS 254 in the Bronx.

Defendant Joseph Datello was a soldier in Dominic Truscello's Prince Street Crew. Datello engaged in the rigging of bids at the IS 254 project and the Doral Arrowwood conference center, received a benefit from the corrupt influencing of labor officials involved in the Park Central Hotel Project, and collected the "mob tax." Defendants Philip DeSimone and Arthur Zambardi were soldiers in Lucchese Captain Joseph DiNapoli's crew who were engaged in the rigging of bids involving the IS 254 project, the settlement of the dispute involving the project at 354 Broadway, and the collection of the "mob tax." Zambardi also engaged in price fixing and corruptly influencing union officials for contractor enterprise member Saul Heifetz and others.

Defendant Anthony Pezzullo was a soldier in the Lucchese Organized Crime Family Captain Joseph Giampa's crew, who engaged in the rigging of bids involving Commercial Brick Inc., corruptly influenced union officials for the Frantellizzis, Saul Heifetz and others, and collected the "mob tax." Joseph Truncale, a soldier in the crew of Lucchese Organized Crime Family Captain Anthony Santorelli, was given a "no work" job at the IS 254 project by defendants Marmer Brothers Construction LLC. and Kevin Barber, a Marmer Brothers Vice President.

Defendants Giuseppe Palmeri, his brother Alessandro Palmeri, and Andrew Reynolds were associates of Lucchese Organized Crime Family Captain Joseph Tangorra. All three men engaged in bid rigging involving the IS 254 project. Alessandro Palmeri also served as a shop steward for Laborers International Union Local 20 Cement and Concrete Workers) and falsified union shop steward reports for the IS 254 project.

II. Contractor Enterprise Members of the Lucchese Construction Group

Defendant Saul Heifetz was a union mason contractor who operated under a number of corporate names, including defendants DIBA Corp. and Grand Train Corp. Heifetz worked on masonry and concrete projects throughout New York State, including New .York County. Through his association with Lucchese Organized Crime Family members and associates of the j Lucchese Construction Group, Heifetz was able to use a large nonunion labor force which he paid below the union and prevailing rates of wage. Heifetz paid Mikolaj "Nick" Poniatowski, who ran defendant Mietek Mason Contractors Inc., for the use of his non-union labor force on union and public work projects. In addition, Heifetz and Poniatowski falsified certified payroll reports that were filed with the .New York City School Construction Authority ("SCA") to conceal their use of non-union labor and their violation of the union and the prevailing wage requirements. Heifetz paid a "mob tax" to Crea and other members of the Lucchese Organized Crime Family, including Arthur Zambardi and Anthony Pezzullo, in order to gain this competitive advantage.

Defendant James Bonagura was an employee of Canron Construction Corp. and its related entities. Bonagura assisted in the rigging of bids by the Lucchese Construction Group at IS 254, the 59th Street and the Triboro Bridge Projects, and received bribe payments from Zambardi and Heifetz for his assistance in the rigging of bids by contractor enterprise members.

Defendant Adam Gallini was an estimator and project manager for defendant Marmer Brothers Construction LLC. Gallini engaged in bid rigging with Bonagura and defendant Brim Thompson, a principal of defendant New York Blacktop, for sub-contracts at the IS 254 project. Gallini also was involved in the falsification of Laborers International Union Local 20 (Cement and Concrete) shop steward reports for Marmer Brothers Constriction. Kevin Barber was a Marmer Brothers Vice President who provided a "no work" job for Lucchese soldier

,Joseph Truncale at the IS 254 project and falsified union remittance reports filed with the

Cement and Concrete District Council Benefit Funds office in order to under report overtime hours of Marmer Brothers union employees and also to allow Truncale to receive benefits and qualify for a pension. Defendant Dominic Detore, a principal of defendant Cleveland Construction Co., engaged in bid rigging with Bonagura, and was awarded subcontracts for his

participation in the Lucchese Construction Group. In return Detore paid a "mob tax" on each i

such project.

Defendants Anthony Frantellizzi and his brother Dominick Frantellizzi were owners and officers of defendant Commercial Brick Inc., a union masonry contractor, who, through their association with Anthony Pezzullo, Arthur Zambardi and Andrew Reynolds, were able to use a non-union work force in violation of their collective bargaining agreement with Local 1. In return for this, the Frantellizzis paid the "mob tax" to the Lucchese Organized Crime Family.

Defendants Steven Chait Osserman and Nicholas Russo, the ostensible owners and officers of Kent Building Systems Inc., were in fact fronts for Steven L. Crea. In order to conceal Crea's true ownership and control of Kent, Osserman and Russo falsified business records and filed false statements with the New York City School Construction Authority, in an attempt to secure certifications to perform work in the New York City School System.

Defendant Lawrence Wecker was a principal , of Lisa Construction Corp. Wecker paid the "mob tax" to the Lucchese Organized Crime Family in return for his being allowed to perform work throughout the City arid State of New York with non-union workers. Wecker and defendant Kenneth Gordon, an insurance claims adjuster for the company that held a performance bond, rigged the bid four a subcontract at the Doral Arrowwood project, and along with Gordon, Anthony O'Donnell, Joseph Datello, and Steven L. Crea stole over $50,000 from AIG Insurance Company and its affiliate, the Insurance Company of Pennsylvania.

Defendant Joseph Martinelli, the owner of defendant North Berry Corp., was a contractor who paid the "mob tax" in return for his ability to violate his collective bargaining

agreements with the Concrete Workers District Council Benefit Fund by employing non-union workers and paying his union workers cash overtime. Martinelli created a fifteen thousand dollar a week cash "off the books" payroll which defrauded .the. Fund and caused numerous false remittance reports to be f led< with the Fund in order to conceal the secret payroll.

Defendants Anthony. O'Donnell and Anthony Rucereto worked with Sean Richard, an associate in Dominic Truscello's crew. Sean Richard was the principal of S & S Contractors Inc., a subcontractor that violated its collective bargaining agreement with the Carpenters' Union by using non-union labor at the Park Central Hotel project. Sean Richard was the son-in-law of John Riggi; the boss of the DeCavalcante Organized Crime Family of La Cosa Nostra, a New Jersey based. organized crime family that also operated in New York.

Defendant Finbar O'Neill was an officer of Terra Firma Construction Management and General Contracting LLC. O'Neill used Zambardi, Reynolds and Giuseppe Palmeri to coerce a contractor to remove a lien from a project after Zambardi stole money from the contractor. O'Neill also paid the "mob tax" and falsified business records to conceal Zambardi's theft and his payment of the "mob tax."

III. Union Official Members of the Lucchese Construction Group

Defendant Joseph Pezzullo, the brother of Anthony Pezzullo, was a shop steward for Local 1 of the Builders and Allied Craftsmen Union who in return for bribe payments, violated his duty as a union official by under reporting hours worked on shop steward reports. Defendants Henri LaBarbera and Thomas Zmich were Local 1 shop stewards who, in return for bribe payments, violated their duties as union officials by under reporting hours on shop steward reports for the PS 33 and IS 93 projects:

Defendant Santo Lanzafame was the President of the Builders and Allied Craftsmen Local 1. Lanzafame appointed LaBarbera as shop steward on PS 33 with the knowledge that LaBarbera would file false shop steward reports in exchange for bribe

payments. Defendants Jeremiah Sullivan, Sr., John Cucchiarella, and Anthony Barbagallo were Business Agents for Local 1, who violated their duties as union officials by allowing the use of non-union labor and the falsification of union shop steward reports. Cucchiarella and Barbagallo received bribe payments for their involvement in the use of non-union labor and the falsification of union shop steward reports.

Defendant Michael Forde was President of Local 608 of the United Brotherhood of Carpenters and Joiners of America, and defendant Martin Devereaux was a Business Agent for Local 608. Both Forde and Devereaux received bribe payments in return for violating their duties as union officials by allowing the use of non-union labor and the violation of other union requirements by contractor enterprise members.

Defendant Gerald Woods was the Executive Secretary-Treasurer/Business Manager for the Northern New Jersey Regional Council of Carpenters United Brotherhood of Carpenters and Joiners of America. Woods received bribe payments from defendant Anthony Rucereto in return for violating his duties as a union official by allowing the use of non-union labor and the violation of other union requirements by contractor enterprise members, and improperly sponsoring S & S Contractors Inc. and LVC Window Blinds and Drapery Inc. for United Brotherhood of Carpenters and Joiners International Agreements.

Pattern of Criminal Activity

During the period of this offense, each of the defendants, as specified below, participated in a pattern of criminal activity with intent to participate in the affairs of the Lucchese Organized Crime Family as follows:

Pattern Act 1

The defendants Steven L. Crea, Dominic Truscello, Joseph Tangorra, Joseph Datello, Philip DeSimone, Anthony Pezzullo, Joseph Truncale, Arthur Zambardi, Saul Heifetz, Lawrence Wecker, Kenneth Gordon, Joseph Martinelli, Nicholas Russo, Steven Chait

Osserman, Joseph Pezzullo, Andrew Reynolds, Alessandro Palmeri, Giuseppe Palmeri, Mikolaj Poniatowski, James Bonagura, Adam Gallini, Kevin Barber, Brian Thompson, Dominick Detore, Anthony Frantellizzi, Dominick Frantellizzi, Anthony Rucereto, Anthony O'Donnell, Gerald Woods, Michael Forde, Martin Devereaux, Santo Lanzafame, Jeremiah Sullivan, Sr., John Cucchiarella, Anthony Barbagallo, Henri LaBarbera, Thomas Zmich, Finbar O'Neill, Grand Train Corp, DIBA Corp.. Mietek Mason Contractors Inc., Lisa Construction Corp, Commercial Brick Inc., Marmer Brothers Construction LLC., New York Blacktop Corp., Cleveland Construction Co., North Berry Corp., Terra Firma Construction Management & General Contracting LLC. and Kent Building Systems, Inc., committed the crime of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law Sections 340 and 341, as follows:

Said defendants, from in or about January 1997 through on or about the date of this indictment, in New York County and elsewhere, acting with others known and unknown to the Grand Jury, knowingly.. and intentionally entered into a contract, agreement, arrangement and combination in unreasonable restraint of trade and competition, to wit; to restrain competition in the construction industry throughout the City and State of New York by means of price fixing, bid rigging and other anticompetitive arrangements.

Project 1

Pattern Act 2

The defendants, Steven L. Crea, Joseph Datello, Saul Heifetz, Lawrence Wecker and

Lisa Construction Corp., committed the crime of COMBINATION IN RESTRAINT OF

TRADE AND COMPETITION, in violation of General Business Law Sections 340 and 341, as

follows:

Said defendants, from on or about January 1, 1997 to on or about December 18, 1997, in

New York County and elsewhere, acting with others known and unknown to the Grand Jury,

knowingly and intentionally engaged irk a contract, agreement, arrangement and combination in

unreasonable restraint of trade and competition, to wit, to restrain competition in the construction industry throughout the City and State of New York by means of price fixing, bid rigging and other anticompetitive arrangements relating to a project known to the Grand Jury as Project 1.

Pattern Act 3

The defendants Steven L. Crea, Joseph Datello, Saul Heifetz, and Lawrence Wecker committed the crime of COERCION IN THE FIRST DEGREE, in violation of Penal Law

Section 135.65(1), as follows:

Said defendants, from on or about November 5, 1997 to on or about December 18, 1997, in New York County and elsewhere, compelled and induced a person, known to the grand jury as John Doe 1, to engage in conduct which the latter had a legal right to abstain from engaging in, and to abstain from engaging in conduct in which he had a legal right to engage, by means of instilling in him the fear that if the demand was not complied with, the actor or another would cause physical injury to a person and cause damage to property.

Pattern Act 4

The defendants Steven L. Cre4, Joseph Datello, Saul Heifetz, and Lawrence Wecker committed the crime of COERCION IN THE FIRST DEGREE, in violation of Penal Law Section 135.65(1), as follows:

Said defendants, from on or about November 5, 1997 to on or about December 18, 1997, in New York County and elsewhere, compelled and induced a person, known to the grand jury as John Doe 2, to engage in conduct which the latter had a legal right to abstain from engaging in and to abstain from engaging in conduct in which he had a legal right to engage by means of instilling in him the fear that if the demand was not complied with, the actor or another would cause physical injury to a person and case damage to property.

Pattern Act 5

The defendants Joseph Datello, Saul Heifetz, Lawrence Wecker and Lisa Construction Corp., committed the crime of BRIBING A LABOR OFFICIAL, in violation of Penal Law Section 180.15, as follows:

Said defendants, on or about December 18, 1997, in New York County and elsewhere, with intent to influence a labor official known to the grand jury as John Doe 1, with respect to his acts, decisions and duties as a labor official, conferred, offered, and agreed to confer a benefit, to wit, a sure of United States currency, upon such labor official.

Pattern Act 6

The defendants Joseph Datello; Saul Heifetz, Lawrence Wecker, and Lisa Construction Corp., committed :the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants; on or about December 2, 1997, in Bronx County and elsewhere, with intent to defraud, including the intent to commit another crime and to aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a purchase order for Lisa Construction Corp.

Pattern Act 7

The defendants Joseph Datello, Saul Heifetz, Lawrence Wecker, and Lisa Construction Corp., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about December 2, 1997, in Bronx County and elsewhere, with intent to defraud, including the intent to commit another crime and to aid and conceal the commission thereof made and caused to be made a false entry in the business records of an enterprise, to wit a Lisa Construction Corp. check.

IS 93 Project

Pattern Act 8

The defendants, Steven L. Crea, Anthony Pezzullo, Arthur Zambardi, Saul Heifetz, Santo Lanzafame, Jeremiah Sullivan, Sr., John Cucchiarella, Mikolaj Poniatowski, Thomas Zmich, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law Sections 340 and 341, as follows:

Said defendants, from in or about January 1998 through in or about December 1998, in Queens County and elsewhere, acting with others known and unknown to the Grand Jury, knowingly and intentionally engaged in a contract, agreement, arrangement and combination in unreasonable restraint of trade and competition, to wit, to restrain competition in the construction industry throughout the City and State of New York by means of price fixing, bid rigging and other anticompetitive arrangements relating to the New York School Construction Authority Project at IS 93 Queens.

Pattern Act 9

The defendants, Saul Heifetz, Anthony Pezzullo, Arthur Zambardi, DIBA Corp. and Grand Train Corp., committed the crime of BRIBING A LABOR OFFICIAL, in violation of Penal Law Section 180.15, as follows:

Said defendants, on or about April 24, 1998, in Queens County and elsewhere, with intent to influence Thomas Zmich, a labor official, to wit a Local 1 Builders and Allied Craftsmen Union shop steward, in respect to his acts, decisions; and duties as a labor official, conferred, offered, and agreed, to confer a benefit, to wit, a sum of United States currency, upon such labor official.

Pattern Act 10

The defendant Thomas Zmich, committed the crime of BRIBE RECEIVING BY A LABOR OFFICIAL, in violation of Penal Law Section 180.25, as follows:

Said defendant, a labor official, to wit a Local 1 Builders and Allied Craftsmen Union shop steward, on or about April 24, 1998, in Queens County and elsewhere, solicited, accepted, and agreed to accept a benefit from Saul Heifetz, and others known to the grand jury, upon an agreement and understanding that such benefit would influence the defendant in respect to any of his acts, decisions and duties as such labor official.

Pattern Act 11

The defendants Saul Heifetz, Mikolaj Poniatowski, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about April 1, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a New York City School Construction Authority certified payroll report for DIBA Corp. for work performed at IS 93 for the week ending March 7, 1998.

Pattern Act 12

Said defendants, on or about May 6, 1998, in Queens County and elsewhere, with intent ,to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit

a New York City School Construction Authority certified payroll report for DIBA Corp. for work performed at IS 93 for the week ending April 25, 1998.

Pattern Act 13

The defendants Saul Heifetz, Mikolaj Poniatowski, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of PERJURY IN THE SECOND DEGREE, in violation of Penal Law Section 210.10, as follows:

Said defendants, on or about May 6, 1998, in Queens County and elsewhere, swore falsely, and their false statement was made in a subscribed written instrument for which an oath is required by law, to wit a New York City School Construction Authority Certified Payroll report for the week ending April 25, 1998, and made with intent to mislead a public servant in the performance of his official functions and was material to the action, proceeding, and matter involved.

Pattern Act 14

Said defendants, on or about May 6, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a New York City School Construction Authority certified payroll report for DIBA Corp. for work performed at IS 93 for the week ending May 2, 1998.

Pattern Act 15

Said defendants, on or about May 6, 1998, in Queens County and elsewhere, swore falsely, and their false statement was made in a subscribed written instrument for which an oath is required by law, to wit a New York City School Construction Authority Certified Payroll report for the week ending May 2, 1998, and made with intent to mislead a public servant in the performance of his official functions and was material to the action, proceeding, and matter involved.

Pattern Act 16

Said defendants, on or about May 16, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission: thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a New York City School Construction Authority certified payroll report for DIBA Corp. for work performed at IS 93 for the week ending May 9, 1998.

Pattern Act 17

Said defendants, on or about May 16, 1998, in Queens County and elsewhere, swore falsely, and their false statement was made in a subscribed written instrument for which an oath

is required by `law, to wit a New York City School Construction Authority Certified Payroll report for the week, ending May 9, 1998, and made with intent to mislead a public servant in the performance of his official functions and was material to the action, proceeding, and matter involved.

Pattern Act 18

The defendants Saul Heifetz, Anthony Pezzullo, Arthur Zambardi, Mikolaj Poniatowski, Santo Lanzafame, Jeremiah Sullivan, Sr., Thomas Zmich, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about April 24, 1998, in Queens County and elsewhere with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending April 24, 1998.

Pattern Act 19

Said defendants, on or about May 1, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending May 1, 1998.

Pattern Act 20

The defendants Saul Heifetz, Anthony Pezzullo, Arthur Zambardi, Mikolaj Poniatowski,

Santo Lanzafame,.; Jeremiah Sullivan, Sr., Thomas Zmich, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on far about May 9, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work Performed at IS 93 for the week ending May 9, 1998.

Pattern Act 21

The defendants Saul Heifetz, ,Anthony Pezzullo, Arthur Zambardi, Mikolaj Poniatowski, Santo Lanzafame, Jeremiah Sullivan, Sr., Thomas Zmich, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on, or about May 16; 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission, thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending May 16, 1998.

Pattern Act 22

The defendants Saul Heifetz; Anthony Pezzullo, Arthur Zambardi, Mikolaj Poniatowski, Santo Lanzafame, Jeremiah Sullivan, Sr., Thomas Zmich, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about May 23 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending May 23 1998.

PS 33 Project

Pattern Act 23

The defendants, Steven L. Crea, Anthony Pezzullo, Arthur Zambardi, Saul Heifetz, Santo Lanzafame, Jeremiah Sullivan, Sr., John Cucchiarella, Mikolaj Poniatowski, Henri LaBarbera, DIBA Corp., Grand Train .Corp. and Mietek Mason Contractors Inc., committed the crime of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law Sections 340 and 341, as follows:

Said defendants, from in or about April 1998 through in or about December 1998, in Queens County and elsewhere, acting with others known and unknown to the Grand Jury, knowingly and intentionally engaged in a contract, agreement, arrangement and combination in unreasonable restraint of trade and competition, to wit, to . restrain competition in the construction industry throughout the City and State of New York by means of bid rigging and price fixing relating to the New York School Construction Authority Project at PS 33 in Queens.

Pattern Act 24

The defendants, Saul Heifetz, Anthony Pezzullo, Arthur Zambardi, Santo Lanzafame, DIBA Corp. and Grand Train Corp. committed the crime of BRIBING A LABOR OFFICIAL, in violation of Penal Law Section 180.15, as follows:

Said defendants, on or about June 21, 1998, in Queens County and elsewhere, with intent to influence Henri LaBarbera, a labor official, to wit a Local 1 Builders and Allied

Craftsmen Union shop steward, in respect to his acts, decisions, and duties as a labor official, conferred; offered, and agreed, to confer a benefit, to wit, a sum of United States currency, upon such labor official.

Pattern Act 25

The defendant Henri LaBarbera, committed the crime of BRIBE RECEIVING BY A LABOR OFFICIAL, in violation of Penal Law Section 180.25, as follows:

Said defendant, a labor official, to wit a Local 1 Builders and Allied Craftsmen Union shop steward, on or about June 21, 1998, in Queens County and elsewhere, solicited, accepted, and agreed to accept a benefit from Saul Heifetz, and others known to the grand jury, upon an agreement and understanding that such benefit would influence the defendant in respect to any of his acts, decisions and duties as such labor official:

Pattern Act 26

The defendants Saul Heifetz, Mikolaj Poniatowski, DIBA Corp., -Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about June 6, 1998, in Queens County and elsewhere, with intent to defraud; including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a New York City School Construction Authority certified payroll report for DIBA Corp. for work performed at PS 33 for the week ending June 6,1998.

Pattern Act 27

The defendants Saul Heifetz; Mikolaj Poniatowski, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of PERJURY IN THE SECOND DEGREE, in violation of Penal Law Section 210.10, as follows:

Said defendants, on or about June 6, 1998, in Queens County and elsewhere, swore falsely, and their false statement was made in a subscribed written instrument for which an oath is required by law, to wit a New York City School Construction Authority Certified Payroll report for the week ending June 6, 1998, and made with intent to mislead a public servant in the performance of his official functions and was material to the action, proceeding, and matter involved.

Pattern Act 28

Said defendants, on or about July 21, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a New York City School Construction Authority certified payroll report for DIBA Corp. for work performed at PS 33 for the week ending June 13, 1998.

Pattern Act 29

Said defendants, on or about July 21, 1998, in Queens County and elsewhere, swore falsely, and their false statement was made in a subscribed written instrument for which an oath is required by law, to wit a New York City School Construction Authority Certified Payroll report for the week ending June 13, 1998, and made with intent to mislead a public servant in the performance of his official functions and was material to the action, proceeding, and matter involved.

Pattern- Act 30

The defendants Saul Heifetz; Anthony Pezzullo, Arthur Zambardi, Mikolaj Poniatowski, Santo Lanzafame, Jeremiah, Sullivan, Sr.,, Henri LaBarbera, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about June 5, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to lie made. a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending June 5, 1998.

Pattern Act 31

The defendants Saul Heifetz, Anthony Pezzullo, Arthur Zambardi, Mikolaj Poniatowski, Santo Lanzafame, Jeremiah Sullivan, Sr., Henri LaBarbera, DIBA Corp., Grand Train Corp. and Mietek Mason Contractors Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about June 14, 1998; in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid arid conceal the commission thereof, made and caused to be made a false entry in the business records of an, enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending June 14, 1998.

Pattern Act 32

Said defendants, on or about June 21, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending June 21, 1998.

Pattern Act 33

Said defendants, on or about June 28, 1998, in Queens County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false-entry in the business records of an enterprise, to wit a Shop Steward report of Local 1 of the Builders and Allied Craftsmen Union for work performed at IS 93 for the week ending June 28, 1998.

Kent Building Systems

Pattern Act 34

The defendants, Steven L. Crea, Steven Chait Osserman, Nicholas Russo and Kent Building Systems Inc. committed the crime of COMBINATION IN RESTRAINT OF TRADE AND COMPETITION, in violation of General Business Law Sections 340 and 341, as follows:

Said defendants, from on or about January 1, 1998, to on or about December 31, 1998, in Queens County and elsewhere, acting with others known and unknown to the Grand Jury, knowingly and intentionally engaged in a contract, agreement, arrangement and combination in unreasonable restraint of trade and competition, to wit, to restrain competition in the construction industry throughout the City and State of New York by means of price fixing, bid

rigging and other anticompetitive arrangements, relating to the supply of modular construction units at the School Construction Project at IS 93 Queens.

Pattern Act 35

The defendants Steven. L. Crea, Steven Chait Osserman, Nicholas Russo and Kent Building Systems Inc. committed the crime of COERCION IN THE FIRST DEGREE, in violation of Penal Law Section 135.65(1), as follows:

Said defendants, from on or about January 1, 1998 to on or about December 31, 1998, in Queens County and elsewhere, compelled and induced a person, known to the grand jury as John Doe 3, to engage in conduct which the latter had a legal right to abstain from engaging in and to abstain from engaging in conduct in which he had a legal right to engage by means of instilling in him the fear that if the demand was not complied with, the actor or another would cause physical injury to a person and cause damage to property.

Pattern Act 36

Pattern Act 37

The defendants Steven L. Crea, Steven Chait Osserman, Nicholas Russo and Kent Building Systems Inc. committed the crime of COERCION IN THE FIRST DEGREE, in violation of Penal Law Section 135.65(1), as follows:

Pattern Act 38

The defendants Steven L. Crea, Steven Chait Osserman, Nicholas Russo, and Kent Building Systems Inc., committed the crime of FALSIFYING BUSINESS RECORDS IN THE FIRST DEGREE, in violation of Penal Law Section 175.10, as follows:

Said defendants, on or about April 4, 1997, in Bronx County and elsewhere, with intent to defraud, including the intent to commit another crime and aid and conceal the commission thereof, made and caused to be made a false entry in the business records of an enterprise, to wit a New York City School Construction Authority subcontractor application for Kent Building Systems Inc., dated April 4, 1997.

Pattern Act 39

The defendants Steven L. Crea, Steven Chait Osserman, Nicholas Russo, and Kent Building Systems Corp., committed the crime of OFFERING A FALSE INSTRUMENT FOR FILING IN THE FIRST DEGREE, in violation of Penal Law Section 175.35, as follows:

Said defendants, on or about April 4, 1997, in Bronx County and elsewhere, knowing that a written instrument, to wit a New York City School Construction Authority subcontractor

application for Kent Building Systems Inc., dated April 4, 1997, contained a false statement or false information, and with intent to defraud the state or any political subdivision thereof, offered or presented it to a public office and public servant with the knowledge and belief that it will be filed with, registered and recorded in and otherwise become a part of the records of such public office, and public servant.

Pattern Act 40

The defendants Steven L. Crea, Steven Chait Osserman, Nicholas Russo and Kent Building Systems Inc. committed the crime of PERJURY IN THE SECOND DEGREE, in violation of Penal Law Section 210.10, as follows:

Said defendants, on or about April 4, 1997, in Bronx County and elsewhere, swore falsely, and their false statement was made in a subscribed written instrument for which an oath is required by law, to wit a New York City School Construction Authority subcontractor applicatio