Towing arrests

[johnny_scootch]

By Tim Fleischer
Wednesday, February 21, 2018 06:23PM
LOWER MANHATTAN, New York (WABC) -- Prosecutors indicted and charged 17 individuals and 10 companies for an unlawful monopoly in the vast New York City towing industry. The alleged enterprise is accused of an elaborate series of schemes involving shell companies, insurance fraud, bid rigging and other crimes.

"We are announcing the indictment of a group of individuals and companies that maintained a violent, corrupt and nearly complete monopoly on New York City's towing industry," said Manhattan District Attorney Cyrus Vance.

The group faces multiple charges of conspiracy, corruption and working in concert, prosecutors claim, to control a vast network. "Led by Dan Steininger, [they] worked in concert to maintain and enforce a fraudulent monopoly," said Vance.

Prosecutors revealed that when a collision occurs, the NYPD uses a rotating roster of tow companies to ensure equal and fair work. Prosecutors claim that was not the case involving these individuals and companies led by Steininger.

"And stacked that roster with companies that he controlled. The companies had different names. The companies had different logos and listed different owners, when in fact they were different fronts and shell companies for the Steininger enterprise," said Vance.

But Steininger's defense attorney James Kousouros countered, "Just saying it doesn't mean you can prove it. And we will do our best to show they can't prove it."

Karen Steininger, Daniel's sister, is also charged with corruption, restraint of trade and monopoly among other counts.

"There are a lot of charges. A lot of indictments. And until we sort through it it will be a difficult endeavor to make an assessment," said Arthur Trakas, Karen Steininger's defense attorney.

Prosecutors charge the enterprise, which ran from June of 2015 to December of 2017, sometimes resorted to violence against competitors and even damaging competitors' tow trucks. Vance also said one defendant, Carl Fava, was brought in to settle disputes.

"Fava was essentially The Godfather who made the decisions. 'You are going to take this. You are going to take that.' And that's how it's resolved," Vance said.

The enterprise is also accused of insurance fraud through several auto body shops and tax fraud and money laundering. Authorities are filing a civil suit against the companies and individuals to collect the money that was fraudulently obtained.

http://abc7ny.com/illegal-towing-monopo ... a/3120490/




It's rumored Carl Fava is made guy with the Gambino family. He owned Ridge towing and had the huge Belt parkway contract for years until he caught a case. I'm sure someone can find it I forget what it was about.

[johnny_scootch]

https://www.manhattanda.org/da-vance-pa ... -citywide/

[Wiseguy]

I saw this today and was wondering if there was any mob involvement.

The Manhattan DA had a case back in 2015 that involved several heating oil companies and dozens of defendants, many of whom were Italian. Although I don't think there were any specific mob ties mentioned, considering the number of Italians and the mobs historic involvement in the heating oil business, there is virtually no way there wasn't a mob connection of some kind.

[TommyGambino]

Interesting, where was it rumoured Fava is a made guy?

[FriendofFamily]

All the Guy was doing is just being dominant and getting his market share.

I am glad people like Microsoft - Amazon - Google and Facebook aren't a monopoly

Yes I like being sarcastic

[Bklyn21]

Daniel Steininger (r.) is accused of using various illicit tactics to earn a dominant share of the New York City tow market. (JEFFERSON SIEGEL/NEW YORK DAILY NEWS)
A tow truck monopoly resorted to violence, intimidation and property damage to chase off competitors — even going as far as striking their rivals’ vehicles with a crane, prosecutors said Wednesday.

Daniel Steininger, 44, used a variety of illegal tactics to dominate the towing business citywide for nearly two-and-a-half years, according to indictments filed against him and 16 others.

Steininger, 44, of Long Island, skirted city regulations that establish a towing rotation meant to distribute jobs to licensed companies, authorities said.

He scooped up towing companies, and deceived city agencies by registering under various corporate names to control a major piece of the market, according to Manhattan District Attorney Cy Vance Jr.

He allegedly used a mob associate, Carl Fava, 58, to oversee the arrangement.

“In order to get as many spots on that rotation list as possible, the defendants ... fraudulently acquired and consolidated various other towing companies and then stacked that roster with multiple companies,” Vance told reporters at a press conference announcing the case.

When the NYPD formally reopened the bidding process, allowing tow truck companies to work on the city’s highways, Stenininger and his sister, Karen, 38, would have multiple companies under their control submit “competing” applications for the same stretches of roadway, prosecutors said.

And Steininger encouraged his employees to “show some force” when encountering the competition, prosecutors said.

His drivers resorted to “chasing” — another way to operate out of bounds — by listening to police scanners and rushing to crash sites and steal jobs from other vendors.

“In several instances the defendants simply used violence to maintain their dominance. If a rival company arrived on scene at the same time as one of (Steininger‘s) drivers . . . (they would) show some force, cause a ruckus,” Vance said.


Karen Steininger leaves Manhattan Supreme Court after her arrest and arraignment on Wednesday. (JEFFERSON SIEGEL/NEW YORK DAILY NEWS)
The suspects went so far as to strike rivals’ trucks with a crane — a practice known as “blasting,” prosecutors said.

All but two of the 17 people indicted surrendered early Wednesday and appeared before Justice Daniel Conviser in Manhattan Supreme Court. They pleaded not guilty.

Investigators also uncovered tax fraud, money laundering and insurance fraud in connection with the towing operation, prosecutors said.

Charges include enterprise corruption, scheme to defraud, conspiracy and related counts.

Bail was set at $1 million for Steininger — who posted bond and was released immediately. Karen Steininger was released on $500,000 bail.

Lawyer Joseph Mure, who represents brothers Michael, 49, Angelo, 53, and Salvatore Mazzio, 40, accused of manipulating permit usage, said the trio surrendered voluntarily and will “fight these charges.”

Mure added that the investigation has been on their radar for some time.

“They have known for a year,” he said.

[Bklyn21]

Towing, Heavy duty and Other is outright dominated by OC so is the heating oil industy.One of the few industries left that they have a stranglehold and lil free enterprise from outside Comp.

[johnny_scootch]

Interesting, where was it rumoured Fava is a made guy?

Tommy on the street it's a known fact but I won't present it that way on this forum without forum acceptable proof so I just put rumored and leave it at that. Also Joe Mure is a great guy he does tons for charity and has a big block party every year around Christmas and does the Christmas lights on a massive scale. They close the block down set up a stage for performers and joe causi, tony sirico and the rest of the goombah squad show up. They serve food and hot chocolate but the best part is Lucy's....in fucking December!

[TommyGambino]

Interesting, where was it rumoured Fava is a made guy?

Tommy on the street it's a known fact but I won't present it that way on this forum without forum acceptable proof so I just put rumored and leave it at that. Also Joe Mure is a great guy he does tons for charity and has a big block party every year around Christmas and does the Christmas lights on a massive scale. They close the block down set up a stage for performers and joe causi, tony sirico and the rest of the goombah squad show up. They serve food and hot chocolate but the best part is Lucy's....in fucking December!

Cheers Johnny, so the Gambino's control the towing?

[johnny_scootch]

Cheers Johnny, so the Gambino's control the towing?

Towing industry is huge in NYC no one family controls it all but Gambinos definitely have their unfair share maybe more so in Brooklyn than other boroughs.

[The Greek]

All the Guy was doing is just being dominant and getting his market share.

I am glad people like Microsoft - Amazon - Google and Facebook aren't a monopoly

Yes I like being sarcastic

There's a great book called "Takedown" on how the NYPD infiltrated and help break up mob control in garbage. BFI and Waste Management come into NY and essentially do exactly the same thing as the mob.

[bronx]

worse they have a monopoly thanks to rudy and vacco

[Wiseguy]

worse they have a monopoly thanks to rudy and vacco

Not anymore. Both Waste Management and Browning Ferris (now Republic Services) have largely left the NYC market. The very thing the city did to stop the mob's carting price inflation - capping the rate trash haulers can charge for collections - made it hard for the national companies to make money there. A company called Action Carting is now the biggest in the city from what I've read but they only have something like 15% of the market.

[MikeyRiens11]

I think I read somewhere that some of those companies they tried to bring in compete with/break up the mob control of the industry, got in trouble themselves for some of their own shady business practices.

[TommyNoto]

worse they have a monopoly thanks to rudy and vacco

Not anymore. Both Waste Management and Browning Ferris (now Republic Services) have largely left the NYC market. The very thing the city did to stop the mob's carting price inflation - capping the rate trash haulers can charge for collections - made it hard for the national companies to make money there. A company called Action Carting is now the biggest in the city from what I've read but they only have something like 15% of the market.

That’s interesting as I’ve heard Action is alleged to have wise guy connections . They are big in Jersey City I believe . The info I have could be totally false but wondering if anyone else has heard this . That fact they are located in NJ rather that NYC makes me more suspicious of them as well.