Gangland news 8th June 2017

[Hailbritain]

By Jerry Capeci

Mob Big And Bigwig Builder Made Big Money At Bronx-Lebanon Hospital

Gang Land Exclusive!Randolph SilversteinThey don't usually travel in the same circles, but there is little doubt that top Luchese crime family wiseguy Steven (Stevie Wonder) Crea has long had a very good thing going with the Sparrow Construction Company, headed by his millionaire Westchester County neighbor Randolph (Randy) Silverstein.

Back in the 1980s, Crea earned more than $100,000 a year as a "labor consultant" for the non-union company founded by Silverstein's late father, Sidney Silverstein, in 1981. Questions from investigators about those ties later caused the construction firm to lose out on New York City school contracts. But the relationship seems to have weathered those problems. A racketeering indictment unsealed in White Plains Federal Court last week describes Stevie Wonder as part of a lucrative "mail and wire fraud" scheme in connection with a $30 million expansion project of Bronx-Lebanon hospital that Sparrow began in 2009 and completed in 2014.

The indictment charges only Crea, 69, and a soldier who has been a close associate of his for years, Joseph Venice, 56, with taking part in the scam. But investigative sources tell Gang Land "they were not the only mob guys" who shared in payoffs the wiseguys allegedly got for keeping the construction unions they control from picketing or otherwise disrupting the nearly five-year-long building project at Bronx-Lebanon.

Steven CreaThe investigation, which so far has resulted in the indictment of 12 mobsters and five mob associates on racketeering and murder charges, is still continuing.

The 972-bed hospital complex that serves the South and Central Bronx is not named in the nine-count indictment, but sources say that it is the "major New York City hospital" which the indictment identifies as one of several "public building projects" that the Luchese family has used to line its members' pockets in recent years.

The hospital was first named as the focal point of the crime family's "mail and wire fraud" scam Sunday by the New York Post, which wrote in a story by reporters Isabel Vincent and Melissa Klein that Crea "was a regular visitor to (Sparrow's) offices while the center was under construction."

As it turns out, the Post account, which apparently used the indictment as a source of info, actually understated the total cost of the hospital's spanking new nine-story outpatient and wellness center by four million dollars, a hospital spokesman told Gang Land.

"The cost of the project was just a little over $30 million," said hospital spokesman Fred Miller, who defended nearly four million dollars in "cost overruns" and the much longer time (more than four years instead of 19 months) that it took to complete the project, as the norm in city building projects.

Joseph Venice"There are very few construction projects in the city that don't have cost overruns," said Miller. "They were about 10% here — $3.8 million — in approved change orders. And there were many change orders which were disputed and rejected. It was not a $21 million project that ballooned to $26 million. It was a $26 million project" with $3.8 million in additional charges for materials or labor that "went through several levels of review before they were approved," he said.

Miller, an attorney with Garfunkel Wild of Great Neck, said the hospital was blindsided by news that the hospital was part of a mob indictment, and stated that "no one at the hospital has ever been contacted by any" law enforcement officials in the case and that its officials are upset about "any aspersions" that the hospital or its employees were involved in any wrongdoing.

Bronx-Lebanon, he said, "is a major medical center providing necessary medical services in one of the most underserved areas of the country" and "we have not been contacted by anyone who provided us with any information that the hospital is the subject of the indictment."

As for the hospital's decision to use a non-union construction company with links to the mob, Miller said: "Sparrow construction had the low bid on the construction project. Mr. Silverstein was an approved qualified bidder on the project and Sparrow was on an approved list of contractors by the New York State Dormitory Authority," which oversaw the bidding process.

Fred MillerFor the record, there is no allegation, or even an inference, in the indictment that hospital officials or employees were involved in any wrongdoing. The indictment also does not implicate Silverstein, 65, or his company, in any wrongdoing.

But law enforcement officials, and numerous court documents allege that Crea, and codefendants in this indictment and prior labor racketeering cases, have made many hundreds of thousands of dollars through longtime working relations with Silverstein and Sparrow, even though neither has ever been charged with a crime.

"The hospital project made a lot of money for Crea," said one law enforcement source. "That's the advantage of controlling the unions; you take payoffs and tell the unions to keep away."

From September to December of 1997, while Sparrow was the general contractor on a hospital project in Manhattan, there were 42 phone calls between Crea and codefendant Saul Heifetz, 79 calls between Heifetz and Sparrow's construction office, and two calls between Heifetz and Silverstein's home in Pelham, according to an affidavit state prosecutors filed in the early stages of an investigation that resulted in labor racketeering charges against Crea and 36 others in 2000.

Michael MeldishIn the same filing, Detective Robert Callus wrote that Silverstein's father, who died that same year, had "stated in 1989 that Sparrow employed Steven Crea as a 'labor consultant,' at a salary in excess of six figures."

Silverstein did not respond to a Gang Land call for comment. The FBI and Manhattan U.S. Attorney's office were also mum about the status in the case of Bronx-Lebanon, as well as Silverstein and Sparrow. So far, the government has yet to respond to a call from the hospital, said Miller.

Last week, White Plains Federal Judge Cathy Seibel scheduled a status conference in September, when prosecutors hope to have a decision on whether to seek the death penalty for Crea, his son Steven Jr., "street boss" Matthew (Matty) Madonna, soldier Christopher Londonio, and associate Terrence Caldwell for the 2103 murder of former Purple Gang leader Michael Meldish.

Quick-Thinking Scam Artist Helped Feds In Luchese Family Takedown

Joseph FotiFederal prosecutors used a longtime but little-known mob associate named Joseph Foti to help them obtain a murder and racketeering conspiracy indictment against the leadership of the Luchese crime family and 14 other defendants, Gang Land has learned.

Sources say Foti, 65, who has ties to two crime families, began wearing a wire for the FBI's squad that investigates the Gambino and Luchese families before the November 2013 murder of Michael Meldish. He continued tape-recording conversations after the gangland-style slaying. But the sources declined to provide any other details about his work as an undercover operative in the case.

In addition to the tape recordings that Foti made, the government also used jailhouse recordings and court-authorized electronic surveillance during the lengthy investigation, prosecutors told Judge Seibel last week. The feds also used other informers in the probe, although their identities are still secret.

Guy FotiIt's not known what made Foti decide to cooperate with the feds, but it's suspected that he was seeking to get out from under his own legal problems.

As it sometimes happens in situations involving mob turncoats, Foti's work as a snitch doesn't sit well with some of his blood relatives. Sources say Foti's younger brother Guy, 60, is a gangster in good standing with the Luchese crime family. Some sources report that Guy, who like underboss Steven Crea, lives in Yonkers, is a "made man."

Back in 2000, when the brothers were nabbed in a $1.9 million bank fraud, they were both Bonanno family associates under Bronx-based mobster William (Willie Glasses) Riviello, according to law enforcement sources and court documents obtained by Gang Land.

Along with Riviello, now 79, the Fotis allegedly fleeced the cash from a Bank of New York branch in Harrison. The charges against Riviello were rolled into a racketeering indictment against him in Brooklyn Federal Court, for which he was sentenced to 70 months.

William RivielloThe Manhattan U.S. Attorney's office prosecuted the Fotis and a third defendant. Joseph Foti received four years, and was ordered to pay $616,000 in restitution. Guy got 37 months, and was told to fork over $1.2 million in restitution.

Before they got to court on that case, Joseph Foti demonstrated his scam artist chops when he was pulled over in Westchester for a traffic violation. The date was January 14, 2000, and just the week before, the feds had obtained an arrest warrant for him. When the cop came back to him with his license and registration, he said: "We have a warrant for your arrest."

"For whose arrest?" the driver said with surprise.
"Joseph Foti," said the cop.
"No. No. No," he said, "I'm not Joe Foti, I'm Guy Foti."

After returning to his patrol car, the police officer strolled back to the car with his gun out and said: "You're under arrest, no matter which Foti you are. There's an arrest warrant for him too."

Violent Mob Enforcer Suffers Brutal Baseball Bat Beating

Michael ScottoMichael Scotto, an enforcer for powerful Gambino capo Daniel Marino who bragged in the past about doling out his own brutal violence, was attacked and severely beaten by baseball bat-wielding assailants last month in a quiet residential section of Staten Island, Gang Land has learned.

The attack took place around 5PM on May 19, one of the hottest days of the year, as Scotto, 31, was leaving a nearby home and was walking towards his parked car on Falcon Avenue in the Oakwood section. At least two men wearing ski masks assaulted him from behind, striking him in the head, neck and back, police sources said. The attackers then smashed him in the face after he went down, the sources said.

"They really did a number on him, may have caused some permanent eye damage," said one neighborhood source.

Police sources said a woman whose windows were open heard Scotto yelling for help and called 911. Cops from the nearby 122d Precinct responded within minutes. But his assailants had fled. Battered and bleeding, Scotto was taken to a local hospital where he was treated and kept overnight.

It's unclear who Scotto was visiting before the assault. Police sources say he told cops he did not recognize his assailants or know why they had assaulted him. He could not be reached by Gang Land. His former attorney said he hadn't spoken to Scotto since his release from prison in 2014 and had not heard about the beating.

Daniel MarinoScotto, a nephew of Gambino soldier William (Big Billy) Scotto, was indicted on racketeering charges along with Marino and 12 others in 2010. He copped a plea deal to extortion and gambling charges and served three years in prison.

While working for Marino, who copped a plea deal and was sentenced to five years, Scotto helped recruit bettors and loanshark customers. He also served as a collector and a violent enforcer, according to court papers in the case.

In June of 2009, Scotto was caught boasting in a tape-recorded conversation with his cohorts about how he doled out a brutal beating in the woods to one delinquent borrower in order to get the $10,000 debt his victim owed the mob.

"I really beat the shit out of (the victim,)" he told his cohorts on June 16, 2009. "Put it this way — all the fucking beatings we gave that kid this week, picture all of that combined by triple," Scotto said. Scotto said he had used rocks to beat his victim and inflicted so much damage he thought he had "killed him," according to the government's sentencing memo.

"I haven't attacked somebody like that in a while," he said. "He wasn't moving. I dragged him out of the woods by his fucking shoes, bouncing his head off things that were like tree stumps and shit."

[Hailbritain]

Great column this week Jerry , you cocksucker

[Hailbritain]

Venice

[Hailbritain]

Fotti

[Hailbritain]

Fotti

[Hailbritain]

Scotto

[SonnyBlackstein]

Great GL this week.
Thanks HB,
Could you kindly also post the pics of Willie Glasses and Daniel Marino? Cheers.

Of course there was a rat. Had to be. Curious as to what info he gave for them to charge the Crea's, as it must be considered hearsay I would assume (being not directly involved, and doubtful witnessing).

Curious how Silverstein isnt charged. informing perhaps (GL states multiple informers). Its interesting only Crea and Venice are charged and not Silverstein, Sparrow or any employees.
If they had info on Fraud involving Bronx-Lebanon and its construction, how is it no BL employees nor the construction firm are charged?

Michael Scotto: What goes around...

[TommyGambino]

The state of Scotto in that pic, off his fucking nut

Great article this week

[OlBlueEyesClub]

The state of Scotto in that pic, off his fucking nut

Great article this week

Right.


Capeci earned himself a hefty check off subscriptions with this one.

[Ivan]

"I dragged him out of the woods by his fucking shoes, bouncing his head off things that were like tree stumps and shit."

great quote

[SonnyBlackstein]

Biggest/Most interesting case since Massino.

[SonnyBlackstein]

Here's a thought, Crea Snr flipping to save his son.
Maybe the Feds scare Snr with giving Jnr the needle to get him to roll. Or maybe the thought of his kid doing life without parole at such a young age is enough in itself.

If ever there was a reason to flip.
Not only save himself, but his kid.
Twice the motivation.

Prediction, post a guilty conviction Snr does a Massino and asks to see the judge to hash out a deal.

[Pogo The Clown]

Scotto, a nephew of Gambino soldier William (Big Billy) Scotto

So the fresh street talk about Billy Scotto being a Capo was wrong. I'm shocked.


Pogo

[NYNighthawk]

I don't think a Westchester County jury would give Crea, Sr. the death sentence. Those residents are too liberal. However I do believe the morning he was arrested that was his last day of freedom. He will die in the can unless he flips.

[NickyEyes1]

No chance they give the death penalty