Gangland News 1/26/2023

[Dr031718]

Sammy Bull's Gangster Nephew Is Allegedly at It Again

Mario (Buddy) Garafola, a nephew of turncoat underboss Salvatore (Sammy Bull) Gravano, is one of four contractors charged with giving nearly $800,000 in kickbacks to Gambino capo Frank Camuso in the latest scandal to hit the mob-plagued New York construction industry, Gang Land has learned.

Garafola and his wife Jeanine, a manager of their construction company, Earth Structures Inc, are specifically accused of funneling $238,900 in kickbacks to Camuso in 2017 and 2018.

Their indictment comes almost two decades after Mario Garafola admitted his role in a four-year-long racketeering scam involving a $10 million fraud in the building of Metropolitan Transportation Authority headquarters. In 2004, Garafola copped a guilty plea for his role in that scheme, for which he's on the hook for $1.9 million in restitution.

His new case stems from a sprawling 83-count indictment charging the Garafolas and three other defendants with using their companies to route kickbacks to the powerful Gambino capo. The money was relayed through money transfers to three firms owned by Camuso and his family. All told, the Camuso family entities allegedly received a total of $799,906 as part of a long running grand larceny and money laundering conspiracy.

Law enforcement sources say that the illegal payments that Camuso, the Garafolas and the other named defendants allegedly received during the eight-year-long scheme are "much greater" than those laid out in a statement of facts that the Manhattan District Attorney's office unsealed along with the indictment last week.

The specific amounts listed in the statement are based on "rock-hard numbers" that prosecutors derived from documentary evidence seized in search warrants, as well as from electronic surveillance, the sources said.
But the final tally of kickbacks is likely much larger, they said. "The cooperating witnesses say the kickback scheme goes back to 2013," said one source. The conspiracy ended in July of 2021, according to the indictment.

Court filings indicate that the prosecutors obtained some of their information by tapping the phones of Camuso, and mobster Louis Astuto, a key Gambino underling, along with that of the accused mastermind of the scheme, Robert (Rusty) Baselice. The wiretaps, sources said, began in February 2019 and ran for the next year.

Baselice, 51, was a vice president of the Rinaldi Group, a Secaucus based general contractor that oversaw the construction of several hotels and apartment complexes in Manhattan. He is charged with steering $100 million in contracts to favored subcontractors who allegedly paid him $4.2 million in kickbacks in return for the work orders they received during the scheme, which began in April 2013.

According to court records, Baselice was on probation at the time, following a short stretch behind bars he received in March of 2011 for heading an online gambling ring that grossed $178 million from 2007 to 2010. Charged with enterprise corruption by the Queens District Attorney's office, Baselice copped a plea deal, and was given six months in jail, and five years' probation.

The other defendants charged with making payoffs to Camuso, and the amounts they gave, according to court filings, are Genovese soldier Christopher (Jerry) Chierchio, $27,000; Davis Gembala, a contractor with firms in New York and Florida, $509,006, and Vincent Badali, the owner of two Kenilworth, NJ "heating, ventilation and air conditioning" companies, $25,000.

Chierchio received $13 million in contracts from Baselice, and stole $300,000 from one developer at the direction of Baselice and Astuto in 2019, and used his plumbing and sprinkling company, RCI PLB Inc, to pass along a total of $27,000 to Gem Consulting Group LLC, one of three Camuso companies.

David Gembala, 47, the owner of two firms charged in the scheme, allegedly funneled $509,006 of the $2.4 million in kickbacks he received to Gem, and a second company owned by Camuso, HMFL Mamagement Inc. from January of 2019 to February of 2021, according to court filings.

Gembala's firms, Schear, a New York based drywall and carpentry firm and Concrecel USA SE LLC, a Fort Lauderdale-based concrete company, obtained $18 million in subcontracts and change orders from Baselice, the largest amount he doled out, and worked on five of the eight construction projects Baselice oversaw during the scheme.

Vincent Badali, 61, received $15 million in subcontracts and change orders for four construction projects for the Rinaldi Group and along with several cohorts, including Astuto and mob associate Paul Noto, allegedly stole more than $1 million from three developers. In October of 2018, $25,000 of the kickbacks Badali received, were transferred to a third Camuso company, MVJ Inc, according to court filings.

Badali’s New Jersey based firms, TRV Mechanical Contractors LLC, and Airforce1Mechanical LLC, received a total of $755,325 in kickbacks, according to the Statement of Facts.

"Tough talk by the DA at a press conference will get you only so far," said Badali's lawyer, Bruce Maffeo, the only attorney who responded to Gang Land's requests for comment. "We're comfortable about our chances at trial," said the lawyer.

Earth Structures, the Garafola concrete company, received $7 million in subcontracts and change orders. Mario and Jeanine allegedly took part in the theft of $700,000 from two developers and received a total of $757,095 in kickbacks in 2017 and 2018, according to the D.A.'s statement .

In the MTA scheme, Mario Garafolo was charged in September 2004 with using three construction companies to rake in millions of dollars for himself and the Gambino family in the building of the MTA's new headquarters at 2 Broadway. Garafola used non-union workers for demolition and other renovation work but billed the MTA for union wage work.

According to that indictment, which including charges of extortion, fraud, money laundering and obstruction of justice, Garafola was paid $12,500 a week in cash. He allegedly shared that money with his father, Edward, a Gambino soldier who died in prison in 2020 while serving a life sentence for murder and taking part in a failed plot to kill Sammy Bull Gravano in 1999 and 2000.

Two months later, in November of 2004, Mario Garafola pleaded guilty in a deal calling for a maximum of five years in prison, even though his sentencing guidelines were eight years. At sentencing in 2005, he received three years and was ordered to pay $1,920,591 in restitution — $1.1 million to the MTA, $526,000 to the Carpenters & Joiners Union, and $283,000 to the Cement & Concrete Workers Union.

Gang Land was unable to determine if Garafola has made any payments, at the rate of 25% of his net income since his release from prison in 2008, a condition of his sentence. Neither Garafola nor his attorney returned calls for comment about both cases. "It's not public information," said a spokesman for the Brooklyn U.S. Attorney's office.

And so far, neither the MTA nor officials at either union have been able to come up with an answer to Gang Land's queries about that matter on behalf of the public, including our subscribers.

Feds Want A Single Colombo Family Trial, But Will Deal with Two, If The Judge Says So

Theodore Persico Federal prosecutors in Brooklyn have finally come to grips with the notion that they may have to prepare for not one, but two trials, to handle the blockbuster racketeering indictment that alleges a 20-year-long shakedown of a Queens-based construction workers union by the Colombo crime family.

Assistant U.S. attorney James McDonald was obviously mistaken when he stated at a pre-trial conference nearly a year ago that he expected many of the 14 accused mobsters and associates in the case to accept plea offers the government had extended to all the defendants and resolve the case with guilty pleas.

"I firmly believe we will reach agreements with the majority, if not all of the defendants," McDonald stated during a court session in early March, a month before the crime family's 87-year-old boss, Andrew (Mush) Russo, who was suffering from several ailments, including dementia, died.

Since then, six defendants, including only one family wiseguy, capo Richard Ferrara, have pleaded guilty in the hope of getting credit for agreeing to a so-called "global plea" offer carrying reduced sentencing guidelines for them.

Still awaiting trial, tentatively slated to begin in October, are five mobsters charged in the union shakedown. They include family underboss Benjamin (The Claw) Castellazzo, consigliere Ralph De Matteo, and the family's heir apparent boss, capo Theodore (Skinny Teddy) Persico, the nephew of the late boss, Carmine (Junior) Persico, who died behind bars in 2018.

Also awaiting trial are wiseguys Vincent (Vinny Unions) Ricciardo, the accused architect of the long-running extortion of Local 621 of the United Construction Trades & Industrial Employees Union (UCTIE), and Michael Uvino, who along with Vinny Unions threatened 621 president Andrew Talamo at his home during the investigation, according to court filings.

Prosecutors McDonald and Devon Lash argue that the mobster quintet should be tried along with three mob associates who are not charged with racketeering or the union extortion, but like the wiseguys, are charged with tangential crimes related to the plan to steal Local 621 benefit funds to enrich "themselves and members of the Colombo crime family."

The government's evidence at trial, they argue, will "establish that during the conspiracy," the trio of vendors, Joseph Bellantoni, Erin Thompkins, and Albert Alimena, an accused Genovese family associate who was added to the case last May, knew their codefendants were mobsters and will not be prejudiced by going to trial with them.

"The government respectfully maintains that all eight defendants are properly joined with their co-defendants, can be tried together, and any risk of spillover prejudice" to the trio of vendors "can be mitigated by a proper limiting instruction," the prosecutors told Brooklyn Federal Judge Hector Gonzalez earlier this month.

"However," the prosecutors wrote, they were "mindful of the Court's stated concerns (about) a large multi-defendant trial" and proposed an October 16 trial of the five mobsters on racketeering and extortion charges and a second one "in early 2024" for the three mob associates if Gonzalez agrees with a defense motion for separate trials.

The prosecutors are still holding out some hope, though, that other defendants will cop plea deals.

They noted that "plea negotiations are ongoing with several of the defendants," and asked for permission "to seek a consolidated trial" among the remaining defendants if "negotiations result in agreements in the coming months" for several defendants.

While His Mob-tied Client Awaited Sentencing, A Defense Lawyer Applied To Change Sides

The sentencings of Genovese soldier Christopher Chierchio and his cohorts for the $80 million ripoff of three Lottery winners have been put off following a most unusual development in Gang Land: A lawyer for a defendant convicted at trial wants to switch sides and become a federal prosecutor.

Dennis Dillon, a trial attorney for the self-described Lottery Lawyer, Jason (Jay) Kurland, has submitted applications for a job at not one, but two U.S. Attorney's offices — including the Manhattan office that convicted his client.

While it's not clear which office he prefers, Dillon has also applied to the U.S. Attorney for the Eastern District of New York located just across the East River in Brooklyn, where the trial took place.

The surprise decision by Dillon to seek a position as an assistant U.S. attorney has resulted in a postponement of all four sentencings in the Lottery Winners Ripoff case.

Even more curious, Dillon's cross-over career goal is apparently A-OK with Kurland, who was found guilty of every charge against him and likely faces a heavy guidelines sentence in the 12-to-15 year range because of the huge amount of money that was fleeced from his clients.

Kurland, the only defendant in the case who opted for trial, was scheduled to be sentenced first in the case, on February 3. In the new schedule, he will still lead the way, on April 26. The new dates for Chierchio and the two cohorts who cooperated and testified against Kurland, Frangesco (Frankie) Russo and Francis (Frank) Smookler, have not been set. But they will follow Kurland.

Dillon certainly has the kind of credentials that would impress the honchos at the city's two U.S. Attorney's Offices — Breon Peace in Brooklyn, and Damian Williams in Manhattan. Dillon has a Bachelor of Arts degree from Oxford University. He's also a cum laude Harvard Law School grad who's been an associate in the white shoe firm of Morvillo Abramowitz Grand Iason & Anello since 2019.

It's unclear exactly when Dillion applied for positions as an AUSA, but it had to come after Kurland's trial that ended on July 27. Otherwise, he would have been toiling under a clear conflict of interest — representing a defendant while angling to go to work for the folks trying to send him to jail.

Manhattan prosecutors informed Brooklyn Federal Judge Nicholas Garaufis of Dillon's decision to seek a job as an AUSA in November. They noted he had submitted an application with their office as well as with the Brooklyn U.S. Attorney's office.

Dillon would have had a conflict with both offices if he applied for a job before Kurland's trial. The case began in Brooklyn in 2020, when federal prosecutors there charged the four defendants with ripping off three Lottery winner who were Kurland's clients. But their counterparts in Manhattan took over the case to avoid the appearance of a different potential conflict of interest because Kurland's lead counsel, Telemachus (Tim) Kasulis, is married to a top Brooklyn official.

Garaufis ordered a hearing before ruling on Dillon's request to continue representing Kurland while his AUSA applications were pending. After the hearing, the judge found that "defendant Kurland waived any right to bring claims or arguments regarding ineffective assistance of counsel or any other prejudice" by that decision.

It's common of course for ex-prosecutors to switch to defense work after leaving the feds. They include Dillon's co-counsel on the case, Kasulis, who is a former Manhattan federal prosecutor.

It's less common for defense lawyers to go over to the government, but not unheard of.

What was unheard of, by any of the defense lawyers or current and former prosecutors who spoke to Gang Land, not for attribution, is a defense lawyer seeking a job as a prosecutor for the same office that convicted his client — before he was sentenced.

Regardless, it seems odd that Kurland agreed to let Dillon continue to work for him while seeking a job as a prosecutor.

It also remains to be seen how it will strike the top guns of each U.S. Attorney's office that Dillon doesn't seem to care where he ends up working.

Meanwhile, Kasulis and the honchos at Morvillo Abramowitz got good news two weeks ago from Kurland's civil attorney, Andrew Bourne. He notified Brooklyn Federal Judge Joan Azrack that Fireman's Fund had decided to obey her order and live up to Kurland's $10 million insurance policy, and had agreed "in principle" to pay Kurland's defense costs. The lawsuit should be settled in the near future, he wrote.

[Dr031718]

[TommyGambino]

So the true number Camuso received is probably in the millions considering it goes back 10 years. Had anyone actually heard of Camuso until a few years ago?

[JohnnyS]

Thanks for posting.

[HairyKnuckles]

"family's 87-year-old boss, Andrew (Mush) Russo, who was suffering from several ailments, including dementia, died."

Nice pick to lead a Family. Reminds me of uncle junior.

Thanks for posting!

[Little_Al1991]

"family's 87-year-old boss, Andrew (Mush) Russo, who was suffering from several ailments, including dementia, died."

Nice pick to lead a Family. Reminds me of uncle junior.

Thanks for posting!

He deserved the position.He was keeping the seat warm for Teddy Persico.After Teddy came of supervised release, he would have been the boss according to the indictments
Russo had formerly been the Acting Boss and then the Street Boss before becoming the official boss.His leadership must have been good

[NYNighthawk]

There's no backlash for being related to Sammy the Rat?

[Browniety86]

There's no backlash for being related to Sammy the Rat?

He's Cousin Eddie's son right...his Dad was a stand up guy til he died so I'd say no backlash...

[Amershire_Ed]

Thanks for posting

[Pmac2]

Did Sammy ever confirm when his brother inlaw Eddie was inducted? Sammy's talked shit about the guy for years tried to get him killed after saying in his book eddie told me to flip. After all this we found out eddie was maybe the smartest guy in the family when it came to construction. He had a head for it. And he gets 30 years in prison doesn't flip. He did like 20yrs I side and died. He should have took a plea also but didn't. Or did he and the judge smoked him. No he went to trial

[SonnyBlackstein]

He deserved the position.He was keeping the seat warm for Teddy Persico.

I don't agree with the opinion he was "keeping the seat warm for teddy."

He was acting boss for multiple periods through the last 3 decades. He had seniority. IMO it was his age and health which was leading to Teddy taking over. But Mush, if he was 10 years younger, healthy, would've had the job due seniority in front of teddy

He's Cousin Eddie's son right...

[AntComello]

He deserved the position.He was keeping the seat warm for Teddy Persico.

I don't agree with the opinion he was "keeping the seat warm for teddy."

He was acting boss for multiple periods through the last 3 decades. He had seniority. IMO it was his age and health which was leading to Teddy taking over. But Mush, if he was 10 years younger, healthy, would've had the job due seniority in front of teddy

He's Cousin Eddie's son right...

You really don’t think mush knew all along that Teddy was going to be boss when he got out of prison? I think he knew and he was fine with it. Mush seems hard core cosa nostra and had a good relationship with the Persicos.

[gohnjotti]

He deserved the position.He was keeping the seat warm for Teddy Persico.

I don't agree with the opinion he was "keeping the seat warm for teddy."

He was acting boss for multiple periods through the last 3 decades. He had seniority. IMO it was his age and health which was leading to Teddy taking over. But Mush, if he was 10 years younger, healthy, would've had the job due seniority in front of teddy

He's Cousin Eddie's son right...

Persico Jr. was indeed groomed for the leadership spot after his mid-2000s release from prison (according to Kenny Gallo) and was in the contention to be promoted as boss after his 2008 release from prison.

However, along that same vein, I think it was 2007 or so when someone (maybe James Bombino?) was tape-recorded suggesting that Andy Russo would become acting boss once his supervised release conditions ended in 2010.

Ultimately, I don’t think it matters too much; we’ve seen in the past that, even while serving as an admin member in 2009, Persico Jr. still deferred to Michael Persico (liaison for Junior and Little Allie) for permission on committing acts of violence. And Russo seems to have consistently been a puppet for the Persicos also, so I don’t think it would look much different if Persico Jr. or Andy Russo held the ‘official’ title during that brief period between Junior’s death and Mush’s death. I think it’s more likely that decisions are still made by the Persicos as a faction (including Allie, Michael, Teddy) rather than any one guy on the street. I doubt much changes on the street whether Ralph DeLeo is boss or Andy Russo holds the title.

Then again, I say this even though Vic Orena was Junior Persico’s cousin. So who knows; the Colombos are a volatile family and anything could happen, especially with Teddy Persico and his history of violence. It’s still an important discussion to have because it points to who is more active and well-respected within the family.

[TSNYC]

The Garafolas (father and son) along with their associate in that MTA case, John Vitiello, were all very close with Jack Colucci whose been involved in construction business forever and whose father was the guy Sammy the bull killed back in the day. These relationships get real tangled and messy. My understanding is Garafola the son is sick, had a couple strokes, not doing well.

[Tonyd621]

If my defense attorney was angling for a job in the prosecutors office even after my case was done. I still would not be comfortable with it. Who knows who long has been jockeying for a position. Two applications, one in the same courts. No way!