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UNITED
STATES DISTRICT COURT |
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UNITED STATES OF
AMERICA |
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No. |
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Violations:
Title 18, |
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v. |
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United States
Code, Sections |
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1341, 1344,
1962(c) and (d), |
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1963, and 1014,
and 2 |
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JOHN SERPICO, |
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MARIA BUSILLO,
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GILBERT CATALDO |
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COUNT ONE
The SPECIAL
FEBRUARY 1998 GRAND JURY charges:
General Allegations
1. At times material herein:
a. The Central States Joint Board
("CSJB"), located at 1950 W. Erie, Chicago, Illinois, was a labor organization,
as that term is defined in Title 29, United States Code, Section 402(i) and
(j). The CSJB was comprised of the
following local labor organizations (“locals”), which also were labor
organizations within the meaning of Title 29, United States Code, Section
402(i) and (j) and employee organizations within the meaning of Title 29,
United States Code, Section 1002(4), that at times were members of the CSJB:
Local 8,
Industrial Workers Union, affiliated with the Laborers International Union of
North America (“LIUNA”);
Local 10,
Production Workers Union, affiliated with the International Union of Allied
Novelty and Production Workers (“IUANPW”);
Local 12,
Allied Production Workers Union, affiliated with the IUANPW;
Local 16,
Metal Processors Union, affiliated with the IUANPW;
Local 18,
Plastic Workers Union, affiliated with the IUANPW;
Local 20,
Chemical and Allied Product Workers, affiliated with the IUANPW;
Local 24,
Manufacturing, Production, and Service Workers Union (at times known as the
"Novelty and Allied Workers Union"), affiliated with the IUANPW; and
Local 803,
Amalgamated Production Workers Union, affiliated with the IUANPW (merged with
Local 18, Plastic Workers Union, in or about 1991).
b.
The total membership of the locals
affiliated with the CSJB varied, but at times was approximately 20,000.
c. The CSJB provided a wide range of
administrative and management services to its member locals and in turn to
their members. Among other things, it
hired and supervised business agents and organizers for its member locals, and
managed the financial affairs of its member locals, including the establishment
and management of banking relationships.
In addition to funds maintained separately for each member local, the
CSJB maintained its own funds, derived primarily from fees paid by member
locals.
d. The Central States Joint Board Health &
Welfare Plan ("CSJB Health & Welfare Plan") was an employee
welfare benefit plan subject to Title I of the Employee Retirement Income
Security Act of 1974 (“ERISA”). The
CSJB Health & Welfare Plan was established and maintained by the CSJB and employers,
and received funds contributed by and on behalf of participating members of the
CSJB's member locals. The CSJB Health
and Welfare Plan invested and administered these funds to provide health
insurance benefits for eligible beneficiaries.
e. The Midwest Pension Plan was an employee
welfare benefit plan subject to Title I of ERISA. The Midwest Pension Plan was established and maintained by the
CSJB and employers, and received funds contributed by employers on behalf of
participating members of the CSJB's member locals. The Midwest Pension Plan invested and administered these funds to
provide pension benefits for eligible beneficiaries.
f. The Central States Joint Board Staff Pension
Plan ("CSJB Staff Pension Plan") was an employee pension benefit plan
subject to Title I of ERISA. The CSJB
Staff Pension Plan was established and maintained by the CSJB and its member
locals, and received funds contributed on behalf of participating employees of
the CSJB and its member locals and affiliated benefit plans. The CSJB Staff Pension Plan invested and
administered these funds to provide pension benefits for eligible
beneficiaries.
g. The IUANPW was a labor organization, as that
term is defined by Title 29, United States Code, Section 402(i) and (j), and an
employee organization within the meaning of Title 29, United States Code,
Section 1002(4). The IUANPW was
comprised of member locals and provided various services to these locals and in
turn to their members. The offices of
the IUANPW initially were located in Valley Stream, New York, with the
exception of the offices of the Secretary-Treasurer, which were located at 1950
W. Erie, Chicago. In or about 1995, the
offices of the IUANPW were consolidated at 1950 W. Erie, Chicago,
Illinois. CSJB employees managed the
financial affairs of the IUANPW, including the establishment and management of
banking relationships. The total
membership of the IUANPW varied, but at times was approximately 30,000.
h. Defendant JOHN SERPICO held various offices
with the CSJB, its member locals and affiliated benefit plans, and the IUANPW
(referred to collectively as “the CSJB entities”), and as such was an officer
of and person employed by the following labor organizations; an officer, agent
and employee of the following employee organizations whose members were covered
by the following employee benefit plans; and an officer, trustee, agent, and
custodian of the following employee benefit plans, during or about the
following periods:
Central
States Joint Board
President,
1975 - April 1994
Vice-President,
May 1994 - February 1996
President
Emeritus, February 1996 - present
Consultant,
February 1996 - present
CSJB Health
& Welfare Plan
Trustee and
Chairman, prior to January 1987 - April 1994
Chairman
Emeritus, April 1994 - present
Midwest
Pension Plan
Trustee and
Chairman, prior to January 1985 - April 1994
Chairman
Emeritus, April 1994 - present
CSJB Staff Pension
Plan
Trustee and
Chairman, prior to January 1987 - June 1994
Chairman
Emeritus, April 1994 - present
International
Union of Allied Novelty and Production Workers
Secretary-Treasurer,
1975 - January 1985
Consultant,
1985 - present
Local 8
President and
Business Manager, 1976 - January 1996
Local 10
President,
1976 - April 1994
i. Defendant MARIA BUSILLO was a business and
personal associate of defendant JOHN SERPICO and held various offices with the
CSJB entities, and as such was an officer and person employed by the following
labor organizations; an officer, agent and employee of the following employee
organizations whose members were covered by the following employee benefit
plans; and an officer, trustee, agent, and custodian of the following employee
benefit plans, during or about the following periods:
Central
States Joint Board
President,
April 1994 - present
Member,
General Executive Board, 1980 - present
CSJB Health
& Welfare Plan
Trustee,
August 1994 - present
Midwest
Pension Plan
Trustee, June
1994 - present
CSJB Staff
Pension Plan
Chairman,
June 1994 - present
Trustee,
prior to January 1987 - present
International
Union of Allied Novelty and Production Workers
Secretary-Treasurer,
May 1996 - present
Vice
President, February 1994 - May 1996
Member,
General Executive Board, 1984 - present
Local 8
Secretary-Treasurer,
January 1991 - June 1996
Recording
Secretary, 1979 - December 1990
Local 10
President,
June 1994 - present
Secretary-Treasurer,
1976 - June 1994
j. Defendants JOHN SERPICO and MARIA BUSILLO
exercised substantial influence over the operations and financial affairs of
the CSJB, its member locals and affiliated benefit plans, and the IUANPW
(collectively, "the CSJB entities").
k. The CSJB entities did not regularly hold
contested elections. Defendants JOHN
SERPICO and MARIA BUSILLO ordinarily selected or controlled the selection of
candidates for offices in the CSJB entities, and those candidates ran
unopposed.
l. Title 29, United States Code, Section 501(a)
provided as follows:
The
officers, agents, shop stewards, and other representatives of a labor organization
occupy positions of trust in relation to such organization and its members as a
group. It is, therefore, the duty of
each such person, taking into account the special problems and functions of a
labor organization, to hold its money and property solely for the benefit of
the organization and its members and to manage, invest, and expend the same in
accordance with its constitution and bylaws and any resolutions of the
governing bodies adopted thereunder, to refrain from dealing with such
organization as an adverse party or in behalf of an adverse party in any matter
connected with his duties and from holding or acquiring any pecuniary or
personal interest which conflicts with the interests of such organization, and
to account to the organization for any profit received by him in whatever
capacity in connection with transactions conducted by him or under his
direction on behalf of the organization.
A general exculpatory provision in the constitution and bylaws of such a
labor organization or a general exculpatory resolution of a governing body
purporting to relieve any such person of liability for breach of the duties
declared by this section shall be void as against public policy.
m. Defendants JOHN SERPICO and MARIA BUSILLO
owed a duty to the CSJB entities, and to the members and beneficiaries of those
entities, to carry out their responsibilities regarding the CSJB entities
honestly and for the exclusive benefit of the CSJB entities and their members
and beneficiaries.
n. Gladstone-Norwood Trust & Savings Bank
(“Gladstone-Norwood Bank”), located at 5200 N. Central Avenue, Chicago,
Illinois, was a financial institution whose deposits were insured by the Federal
Deposit Insurance Corporation (“FDIC”).
o. Capitol Bank and Trust (“Capitol Bank”),
located at 4801 W. Fullerton Avenue, Chicago, Illinois, and Capitol Bank of
Westmont, located at 100 E. Ogden Avenue, Westmont, Illinois were financial
institutions owned by CBC Bancorp, Ltd.
The deposits of Capitol Bank and Capitol Bank of Westmont were insured
by the FDIC.
p. Regulations promulgated by the Secretary of
the Treasury pursuant to Title 31, United States Code, Section 5313 required
financial institutions, including banks and currency exchanges, to file a
report with the Internal Revenue Service relating to any cash transaction in
the amount of $10,000 or more. Because
such reports have a high degree of usefulness in criminal, tax, and regulatory
investigations and proceedings, the regulations required that such reports,
prepared by the financial institution, provide the name and address of the
customer engaging in the transaction, the identity of any person on whose
behalf the customer was engaging in the transaction, and the amount and date of
the transaction.
The Enterprise
2. Defendant JOHN SERPICO, defendant MARIA
BUSILLO, the CSJB, its member locals, the CSJB Health and Welfare Plan, the
Midwest Pension Plan, the CSJB Staff Pension Plan, and the IUANPW constituted
an association-in-fact enterprise (the "CSJB Enterprise") within the
meaning of Title 18, United States Code, Section 1961(4). The CSJB Enterprise engaged in, and its
activities affected, interstate commerce.
Means and Methods
3. It was one of the purposes of the enterprise
to enable defendants JOHN SERPICO and MARIA BUSILLO to establish and maintain
control over the assets and activities of the CSJB Enterprise for the personal
benefit of defendants JOHN SERPICO and MARIA BUSILLO, and to conceal the full
nature and extent of the personal benefits from the members and beneficiaries
of the CSJB entities.
4. Among the means and methods by which
defendants JOHN SERPICO and MARIA
BUSILLO achieved the objects of, and conducted and participated directly and
indirectly in the conduct of the affairs of, the CSJB Enterprise were the
following:
Receipt
of Favorable Personal Loans in Return for Bank Deposits
a. From not later than in or about May 1979 and
continuing until at least in or about December 1990, defendants JOHN SERPICO and
MARIA BUSILLO devised, intended to devise, and participated in a scheme to
defraud the CSJB entities of money and property, and, as to that portion of the
scheme occurring on or after November 18, 1988, the intangible right to the
honest services of defendants SERPICO and BUSILLO, by soliciting and receiving
from financial institutions personal benefits in the form of a total of at
least $5,000,000 in personal and business loans on terms and conditions more
favorable than those that the financial institutions ordinarily offered to
other borrowers with similar financial qualifications, in return for the
actions of defendants SERPICO and BUSILLO in causing the CSJB entities to
deposit and maintain at the financial institutions funds belonging to or in the
custody of the CSJB entities. Specific
allegations relating to this conduct and constituting violations of Title 18,
United States Code, Sections 1341 (mail fraud) and 1954 (unlawful employee
benefit plan payments), are set forth in Racketeering Acts 1-13 below.
Receipt
of Kickback in Return for Influencing Pension Plan Hotel Loan
b. From in or about July 1989 until in or about
April 1991, defendant JOHN SERPICO devised, intended to devise, and
participated in a scheme to defraud the Midwest Pension Plan, the CSJB Staff
Pension Plan, and the IUANPW by soliciting and receiving a substantial personal
benefit and kickback in exchange for influencing those entities to provide a
speculative mortgage loan, initially in the amount of $6,500,000, in connection
with the construction of a hotel in Champaign, Illinois. In or about the summer of 1990, defendant
SERPICO caused the delivery of approximately $100,000 of this personal benefit
and kickback in the form of cash to defendant MARIA BUSILLO to assist her in
the purchase of a $900,000 house at 1871 Wagner Road, Glenview, Illinois. Specific allegations relating to this
conduct and constituting violations of Title 18, United States Code, Sections
1341 (mail fraud) and 1954 (unlawful employee benefit plan payments) are set
forth in Racketeering Act 14 below.
Bank
Fraud in Connection With Purchase of 1871 Wagner Road
c. From in or about August 1990 through in or
about December 1990, defendants MARIA BUSILLO and JOHN SERPICO devised and
executed a scheme to defraud Capitol Bank, by making materially false
statements and omitting the disclosure of material facts for the purpose of
influencing Capitol Bank to provide a loan of $800,000 to defendant BUSILLO for
the purchase of a house at 1871 Wagner Road, Glenview, Illinois. It was part of the scheme that defendants
BUSILLO and SERPICO falsely represented to Capitol Bank that the full purchase
price of the house was $800,000 when, in fact, it was $900,000, and concealed
from Capitol Bank that defendant BUSILLO had paid an additional $100,000 toward
the purchase price in the form of United States currency which was derived from
acts constituting felony violations of Title 18, United States Code, Sections
1341, 1954, and 1957, thereby preventing Capitol Bank from accurately assessing
the nature and extent of the risks associated with its loan to defendant
BUSILLO. Specific allegations relating
to this conduct and constituting a violation of Title 18, United States Code,
Section 1344 (bank fraud) are set forth in Racketeering Act 15 below.
Unlawful Financial Transactions
d. At various times as further specified below,
defendants JOHN SERPICO and MARIA BUSILLO engaged and attempted to engage in
monetary transactions, affecting interstate commerce, in criminally derived
property of a value greater than $10,000, such property having been derived
from a specified unlawful activity, namely violations of Title 18, United
States Code, Sections 1341 and 1954 described above. Specific allegations relating to this conduct and constituting
violations of Title 18, United States Code, Section 1957 (relating to monetary
transactions in property derived from specified unlawful activity) are set
forth in Racketeering Acts 16, 17, 19, and 20 below.
e. In addition, on or about May 16 and 17, 1988,
defendant JOHN SERPICO knowingly and wilfully structured and assisted in
structuring, and attempted to structure and assist in the structuring, of a
transaction with domestic financial institutions, namely, by obtaining a total
of approximately $68,000 in United States currency through a series of cash
withdrawals, split deposits, and negotiations of cashier’s checks for cash, in
violation of Title 31, United States Code, Section 5324(3), as further set
forth in Racketeering Act 18, below.
The Racketeering Violation
5. From in or about May 1979, and continuing at least
until in or about 1991, within the Northern District of Illinois, and
elsewhere,
JOHN SERPICO and
MARIA BUSILLO,
defendants
herein, together with others known and unknown to the grand jury, being
employed by and associated with the CSJB Enterprise, an enterprise which
engaged in and the activities of which affected interstate commerce, unlawfully
and knowingly conducted and participated, directly and indirectly, in the
conduct of the affairs of that enterprise through a pattern of racketeering activity,
that is, through the commission of the racketeering acts set forth below.
The Pattern of Racketeering Activity
6. 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
Acts 1-13: Union and Benefit Plan Deposits for Personal Loans
7. Beginning in or about May 1979, and
continuing until in or about 1991, in the Northern District of Illinois,
Eastern Division,
JOHN SERPICO and
MARIA BUSILLO,
defendants
herein, and others known and unknown to the grand jury, devised, intended to
devise, and participated in a scheme to defraud the CSJB entities and their
members and beneficiaries of:
a. money and property, including the right to
the full and exclusive enjoyment of financial opportunities derived from the
use of assets belonging to the CSJB entities; and
b. as to that part of the scheme occurring on or
after November 18, 1988, the intangible right to the honest services of
defendants SERPICO and BUSILLO.
8. It was part of the scheme that defendants
JOHN SERPICO and MARIA BUSILLO solicited and received from financial
institutions, including Gladstone-Norwood Bank and Capitol Bank, personal
benefits in the form of a total of millions of dollars of personal and business
loans on terms and conditions more favorable than those that the banks
ordinarily offered to other borrowers with similar financial qualifications, in
return for the actions of defendants SERPICO and BUSILLO in causing the CSJB
entities to deposit and maintain substantial funds at those banks.
9. It was further part of the scheme that from
in or about May 1979 through in or about 1991, defendants JOHN SERPICO and
MARIA BUSILLO sought and received a total of more than $5,000,000 in personal
and business loans for at least nine different investments and purchases,
including the following transactions, among others:
a. A loan of approximately $210,000 from
Gladstone-Norwood Bank to defendant JOHN SERPICO in or about May 1979, in
connection with the purchase of a 59-unit apartment building at 3708 N.
Sheffield, Chicago, Illinois;
b. A loan of approximately $240,000 from Capitol
Bank to defendant MARIA BUSILLO and a relative in or about August 1986, representing
100 percent of the purchase price of a six-unit apartment building at 3158 N.
Mobile, Chicago, Illinois;
c. A loan of approximately $125,000 from Capitol
Bank of Westmont to defendant MARIA BUSILLO in or about January 1987, to
refinance a mortgage on a condominium located on Marco Island, Florida;
d. Loans of approximately $150,000 and
$1,800,000 from Capitol Bank for Studio Network, Inc., a business then owned by
defendant JOHN SERPICO and Individual A, in or about May 1987 and September
1987, to provide financing relating to a film studio located at 1058 W.
Washington, Chicago, Illinois;
e. A loan of approximately $195,000 from Capitol
Bank to defendant JOHN SERPICO and Individual B in or about November 1988, to
provide financing for the start-up of Protective Service Systems, Inc.,
including 100 percent of the purchase price of a building to be used to house
illegal aliens detained by the United States Immigration and Naturalization
Service;
f. Loans totaling approximately $1,400,000 from
Capitol Bank to defendant JOHN SERPICO and two partners, namely Gilbert Cataldo
and Individual C, from in or about May 1989 through in or about December 1990,
to provide 100 percent financing for the construction of a building at 1101 W.
Taylor St., Chicago, Illinois;
g. A loan of approximately $100,000 from Capitol
Bank to defendant MARIA BUSILLO and Individual D in or about June 1989, for the
purchase of property at 4913-21 S. Racine, Chicago, Illinois that formerly had
been used as a bus fueling depot;
h. Loans totaling approximately $540,000 from
Capitol Bank to defendant JOHN SERPICO and Individual E from in or about
December 1989 through in or about June 1990 for the construction of a nine-unit
apartment building at 702 S. Lytle St., Chicago, Illinois; and
i. Loans from Capitol Bank to defendant MARIA
BUSILLO from in or about April 1990 through in or about May 1991 in connection
with real estate transactions in Glenview, Illinois.
10. It was further part of the scheme that because
of and in return for their influence in depositing and maintaining at banks,
funds belonging to the CSJB entitles, defendants JOHN SERPICO and MARIA BUSILLO
solicited and received loans, including each of the above-described loans, on
terms and conditions more favorable than those that the financial institutions
making those loans ordinarily offered to other borrowers with similar financial
backgrounds, including the following favorable terms and conditions, among
others:
a. loans were made on an unsecured basis;
b. loans were not fully secured in a manner
consistent with lending policies;
c. loans were made for which the borrower could not
demonstrate adequate cash flow to service the debt, consistent with lending
policies, or for which the extent of the borrower's pre-existing debts rendered
the borrower ineligible under lending policies;
d. loans were made to finance 100 percent of the
purchase price of real estate, or of the start-up costs of a business;
e. interim construction loans were made without
permanent financing in place;
f. principal payments were amortized over
periods longer than was consistent with lending policies, thereby reducing
monthly debt service payments;
g. loans were made to cover interest payments on
existing loans;
h. business and real estate development loans
were made to principals with little or no expertise in such ventures; and
i. customary charges and fees were reduced and
waived.
11. It was further part of the scheme that from in
or about May 1979 through in or about 1991, in order to induce, influenced by,
and in return for the personal benefits that they sought and received in the
form of favorable loans, defendants JOHN SERPICO and MARIA BUSILLO took the
following actions, among others:
a. represented to bankers from whom they were
seeking and intending to seek personal loans that substantial funds belonging
to CSJB entities would be deposited in their banks; and
b. caused substantial funds belonging to CSJB
entities to be deposited into banks from
which they sought or from which they had received personal loans. Such deposits took the form of demand
deposits, certificates of deposit, and the placement of plan assets under bank
management for a fee. At times these
deposits were made on the same day or within days of significant actions taken
by the recipient bank on loan requests by defendants SERPICO and BUSILLO.
12. It was further part of the scheme that
defendants JOHN SERPICO and MARIA BUSILLO failed to disclose to the CSJB
entities the material fact that they were obtaining substantial personal loans
from banks at the same time that they were causing substantial funds belonging
to the CSJB entities to be deposited into and maintained at those banks.
13. It was further part of the scheme that
defendants JOHN SERPICO and MARIA BUSILLO concealed and hid from the CSJB entities,
and caused to be concealed and hidden from the CSJB entities, material facts
concerning the existence and purpose of the scheme, and the actions undertaken
to carry it out.
14. The above-described scheme affected financial
institutions, specifically including Capitol Bank, Capitol Bank of Westmont,
and Gladstone-Norwood Bank, by causing them to make loans and receive deposits
that they otherwise would not have made and received under the same terms and
conditions. The above-described scheme
further affected Capitol Bank in part by causing Capitol Bank to be convicted
in or about November 1996 of conspiracy to commit mail fraud, and bribery in
connection with an employee benefit plan, for which offenses it was sentenced
to, among other things, pay a fine of $800,000.
Racketeering Act 1: $240,000 Loan for Purchase of 3158 N. Mobile
15.
Racketeering Act 1 consists of the violations
of Title 18, United States Code, Sections 1954 and 1341 set forth respectively
in paragraphs 16-17 and 18-19, below, either one of which alone constitutes the
commission of Racketeering Act 1.
Racketeering
Act 1(A): 18 U.S.C. § 1954
16.
Paragraph 1 above is realleged and
incorporated herein by reference.
17.
In or about August 1986, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO and
MARIA BUSILLO,
defendants
herein, did knowingly receive and agree to receive and solicit a loan,
specifically a loan from Capitol Bank to defendant BUSILLO and a relative, in
the amount of approximately $240,000, relating to the purchase of property at
3158 N. Mobile Avenue, Chicago, Illinois, because of and with intent to be
influenced with respect to any of their actions, decisions, and other duties
relating to questions and matters concerning the CSJB Staff Pension Plan,
namely the deposit and maintenance at Capitol Bank of funds belonging to the
CSJB Staff Pension Plan;
In
violation of Title 18, United States Code, Section 1954.
Racketeering Act 1(B): 18 U.S.C.
§ 1341
18. Paragraphs 1 and 7 through 14 above are
realleged and incorporated herein by reference.
19. On or about August 25, 1986, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO and
MARIA BUSILLO,
defendants
herein, for the purpose of executing the above-described scheme, and attempting
to do so, knowingly caused to be delivered by the United States Postal Service,
according to the directions thereon, an envelope containing a commitment for
title insurance from Heritage Title Co., that envelope being addressed to:
CAPITOL BANK
AND TRUST
4801 W. Fullerton
Ave.
Chicago,
Illinois 60639
In
violation of Title 18, United States Code, Section 1341.
Racketeering Act 2: $125,000 Loan for Florida
Condominium
20.
Racketeering Act 2 consists of the violations
of Title 18, United States Code, Sections 1954 and 1341 set forth respectively
in paragraphs 21-22 and 23-24, below, either one of which alone constitutes the
commission of Racketeering Act 2.
Racketeering
Act 2(A): 18 U.S.C. § 1954
21.
Paragraph 1 above is realleged and
incorporated herein by reference.
22.
In or about January 1987, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO and
MARIA BUSILLO,
defendants
herein, did knowingly receive and agree to receive and solicit a loan,
specifically a loan from Capitol Bank to defendant MARIA BUSILLO in the amount
of approximately $125,000, relating to a condominium on Marco Island, Florida,
because of and with intent to be influenced with respect to any of their
actions, decisions, and other duties relating to questions and matters
concerning the CSJB Staff Pension Plan, namely the deposit and maintenance at
Capitol Bank of funds belonging to the CSJB Staff Pension Plan;
In
violation of Title 18, United States Code, Section 1954.
Racketeering
Act 2(B): 18 U.S.C. § 1341
23. Paragraphs 1 and 7 through 14 above are
realleged and incorporated herein by reference.
24. On or about January 15, 1987, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO and
MARIA BUSILLO,
defendants
herein, for the purpose of executing the above-described scheme, and attempting
to do so, knowingly caused to be placed in an authorized depository for mail
matter, to be delivered by the United States Postal Service, an envelope
containing a letter from Capitol Bank requesting a payoff letter, that envelope
being addressed to:
Janice Hedish
Great Western
Savings
9451 Corbin
Ave.
Northridge,
California 91328
In
violation of Title 18, United States Code, Section 1341.
Racketeering Act 3: $150,000 Loan for Studio Network, Inc.
25.
Paragraph 1 above is realleged and
incorporated herein by reference.
26.
In or about May 1987, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO,
defendant
herein, did knowingly receive and agree to receive and solicit a loan,
specifically a loan from Capitol Bank for Studio Network, Inc., in the amount
of $150,000, because of and with intent to be influenced with respect to any of
his actions, decisions, and other duties relating to questions and matters
concerning the CSJB Staff Pension Plan, namely the deposit and maintenance at
Capitol Bank of funds belonging to the CSJB Staff Pension Plan;
In
violation of Title 18, United States Code, Section 1954.
Racketeering
Act 4: $1,800,000 Loan for Studio Network, Inc.
27.
Racketeering Act 4 consists of the
violations of Title 18, United States Code, Sections 1954 and 1341 set forth
respectively in paragraphs 28-29 and 30-31 below, either of which alone
constitutes the commission of Racketeering Act 4.
Racketeering
Act 4(A): 18 U.S.C. § 1954
28.
Paragraph 1 above is realleged and
incorporated herein by reference.
29.
In or about October 1987, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO,
defendant
herein, did knowingly receive and agree to receive and solicit a loan,
specifically a loan from Capitol Bank relating to Studio Network, Inc., in the
amount of $1,800,000, because of and with intent to be influenced with respect
to any of his actions, decisions, and other duties relating to questions and
matters concerning the CSJB Staff Pension Plan, namely the deposit and
maintenance at Capitol Bank of funds belonging to the CSJB Staff Pension Plan;
In
violation of Title 18, United States Code, Section 1954.
Racketeering
Act 4(B): 18 U.S.C. § 1341
30. Paragraphs 1 and 7 through 14 above are
realleged and incorporated herein by reference.
31. On or about September 29, 1987, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO,
defendant
herein, for the purpose of executing the above-described scheme, and attempting
to do so, knowingly caused to be delivered by the United States Postal Service,
according to the directions thereon, an envelope containing a commitment for
title insurance from Chicago Title Insurance Co., that envelope being addressed
to:
Laser,
Schostok, Kolman & Frank
189 W.
Madison
Chicago,
Illinois 60602
In
violation of Title 18, United States Code, Section 1341.
Racketeering
Act 5: $195,000 Loan for Protective Service Systems
32.
Racketeering Act 5 consists of the
violations of Title 18, United States Code, Sections 1954 and 1341 set forth
respectively in paragraphs 33-34 and 35-36 below, either one of which alone
constitutes the commission of Racketeering Act 5.
Racketeering
Act 5(A): 18 U.S.C. § 1954
33.
Paragraph 1 above is realleged and
incorporated herein by reference.
34.
In or about November 1988, in the
Northern District of Illinois, Eastern Division,
JOHN SERPICO,
defendant
herein, did knowingly receive and agree to receive and solicit a loan,
specifically a loan from Capitol Bank to defendant JOHN SERPICO and Individual
B, in the amount of $195,000, relating to Protective Service Systems, Inc.,
because of and with intent to be influenced with respect to any of his actions,
decisions, and other duties relating to questions and matters concerning the
CSJB Staff Pension Plan, namely the deposit and maintenance at Capitol Bank of
funds belonging to the CSJB Staff Pension Plan;
In
violation of Title 18, United States Code, Section 1954.
Racketeering
Act 5(B): 18 U.S.C. § 1341
35. Paragraphs 1 and 7 through 14 above are
realleged and incorporated herein by reference.
36. On or about October 19, 1988, in the Northern
District of Illinois, Eastern Division,
JOHN SERPICO,