Transcript of Trusteeship Hearing for laborers Local 734 on Dec.06, 2004
495
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2 OFFICE OF THE GENERAL EXECUTIVE BOARD ATTORNEY
3 LABORERS' INTERNATIONAL UNION OF NORTH AMERICA
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5 In the Matter of
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7 TRUSTEESHIP PROCEEDINGS
8 LOCAL 734
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13 December 6, 2004
10:30 o'clock a.m.
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15 Hilton Gateway
Newark, New Jersey
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18 B E F O R E:
19 PETER F. VAIRA,
20 Independent Hearing Officer.
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496
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2 A P P E A R A N C E S:
3
Messrs. PATTON BOGGS, LLP
4 Attorneys for Office of the General
Board Attorney
5 2550 M Street, N.W.
Washington, D.C. 20037-1350
6
BY: PATRICK J. SLEVIN, Esq., of Counsel
7
8 Messrs. COHEN LEDER MONTALBANO & GROSSMAN
Attorneys for Michael Rosado
9 1700 Galloping Hill Road
Kenilworth, New Jersey 07033
10
BY: BRUCE LEDER, Esq., of Counsel
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18 Tina DeRosa,
Reporter.
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497
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2 P R O C E E D I N G S
3 THE HEARING OFFICER: Let us
4 go on the record. Once again we will
5 continue this hearing of the Emergency
6 Trusteeship of Local 734 and I notice
7 that all counsel are present as
8 before. The court reporter is here.
9 Ma'am, we are on the record.
10 Tell me where we were. Tell
11 me where did we leave off.
12 MR. SLEVIN: We concluded with
13 the testimony of Mr. Maria, Mr. Vaira,
14 and what had happened prior to that is
15 Mr. Limberg and Mr. Elko had
16 testified.
17 Mr. Limberg's testimony was
18 placed under seal and that is I
19 suppose where we would prefer to begin
20 this morning.
21 THE HEARING OFFICER: We are
22 completely finished with Mr. Maria?
23 MR. SLEVIN: At this point.
24 THE HEARING OFFICER: Next
25 witness, then.
498
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2 MR. SLEVIN: There are just a
3 number of items I want to get to
4 before we get started. We will call
5 Mr. Elko in a moment.
6 During Mr. Limberg's testimony
7 he referred to a surveillance that was
8 conducted of a hotel in Manhattan and
9 I think that somewhere in the record I
10 had told you that we would attempt to
11 get some evidence in, possibly a
12 declaration from the Federal Bureau of
13 Investigation. We succeeded in doing
14 that.
15 I provided a copy of the
16 declaration with attached exhibits to
17 Mr. Leder about 15 minutes ago. We
18 did not receive the declaration until
19 after close of business on Friday
20 evening.
21 What I would propose to do is
22 simply read that declaration into the
23 record.
24 THE HEARING OFFICER: Okay.
25 Mr. Leder, I assume you just got it.
499
1
2 I know you just got it this morning
3 because I saw you walk in. You have
4 had a few minutes to look at it. We
5 can postpone a ruling on that for a
6 half hour or so.
7 MR. LEDER: Can I be given an
8 opportunity at the next break to take
9 a look at it.
10 MR. SLEVIN: It obviously
11 would be easier to read it in now, but
12 I suppose we could read it in after
13 Mr. Elko has testified.
14 THE HEARING OFFICER: Is there
15 something he is going to be addressing
16 in it?
17 MR. SLEVIN: There was no
18 foundation who Mr. Vergallito was and
19 the declaration specifies who
20 Mr. Vergallito has been with and what
21 his position is.
22 THE HEARING OFFICER: May I
23 see the declaration before I rule on
24 it.
25 MR. SLEVIN: It is also
500
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2 relevant to Mr. Rizzo.
3 THE HEARING OFFICER: I will
4 tell you what, you may put this in
5 now.
6 I assume you have an objection
7 to it.
8 MR. LEDER: Well, I have a few
9 objections to it.
10 No. 1, my first objection is
11 obviously it is hearsay. I recognize
12 the rules of hearsay are relaxed in
13 this proceeding, but the document is
14 not even notarized or in any form
15 close to an affidavit or
16 certification. So I would object on
17 that ground.
18 On the second ground, the
19 third ground, I would object to if you
20 look at what is entitled Fisure Log.
21 This is a separate document. It
22 indicates that they are believed to
23 have met. So there is nothing in this
24 document that says that they
25 definitely met.
501
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2 THE HEARING OFFICER: I
3 understand that. I have accepted
4 these many, many times in the past
5 from FBI agents. They do not have to
6 be sworn. Under Federal law a
7 declaration is sufficient. I will
8 accept that and you may read it in.
9 MR. SLEVIN: All right.
10 MR. LEDER: Is there any
11 reason to read it in?
12 MR. SLEVIN: The reason why
13 our office attempts to read documents
14 into the record wherever we can is
15 because the hearing is being attended
16 by the membership and they do not have
17 contemporaneous access to the
18 exhibits.
19 It is helpful to the
20 membership to hear the exhibits being
21 put in the record.
22 THE HEARING OFFICER: Go
23 ahead.
24 MR. SLEVIN: And I would
25 simply read the declaration. We will
502
1
2 not go through the attached log, just
3 the declaration.
4 THE HEARING OFFICER: One
5 thing I note that there is a couple of
6 times that Mr. Vergallito and Peter
7 Rizzo are identified as associates. I
8 will disregard that designation. All
9 right.
10 MR. SLEVIN: "Declaration. I,
11 Daniel P. Conlon, have been employed
12 as a Special Agent of the Federal
13 Bureau of Investigation for ten years.
14 I am currently assigned to the New
15 York Field Office of the FBI, and have
16 been so assigned since 1995.
17 "In 1999, I was assigned to
18 Squad C-5 and charged with the
19 responsibility for investigating
20 crimes committed by members of the
21 Genovese Family of the La Cosa Nostra
22 (LCN). I have seven and a half years
23 of experience in the investigation of
24 organized crime activities. I swear
25 that the information provided in this
503
1
2 Declaration is the truth, and
3 accurately represents my investigative
4 efforts on the case and days
5 recounted.
6 "On March 24, 1999, I
7 conducted a physical and photographic
8 surveillance in and around the Soho
9 Grand Hotel (hereinafter Hotel)
10 located at 310 West Broadway, New York
11 New York. The purpose of this and
12 other surveillances was to observe and
13 document meetings held by the Acting
14 Boss of the Genovese Family, Dom
15 Cirillo, with persons known and
16 unknown. During this surveillance,
17 Cirillo entered the Hotel at
18 approximately 2:15 p.m., followed
19 shortly thereafter by Genovese Soldier
20 Paul Rogina.
21 "At approximately 2:40 p.m.,
22 Genovese Family Associate August
23 Vergallito was observed leaving the
24 Hotel, accompanied by a male, who at
25 that time was unknown to the
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2 surveillance team, but who since has
3 been identified as Genovese Associate
4 Peter Rizzo. Cirillo departed the
5 Hotel 17 minutes after Vergallito and
6 Rizzo left the Hotel. The
7 surveillance of March 24, 1999, has
8 been documented in a log dated
9 March 24, 1999, which is attached as
10 Attachment A.
11 "Besides recording a
12 surveillance log, the surveillance
13 team also photographed all of the
14 persons of significance to this
15 surveillance on film of Role 7460,
16 photographs 1 through 17. Vergallito
17 and Rizzo are depicted in photograph
18 dated March 24, 1999, which is
19 attached to this Declaration,
20 identified as Attachment B. In this
21 photograph, Vergallito and Rizzo are
22 leaving the Hotel on March 24, 1999,
23 at approximately 2:40 p.m."
24 Second page. "Besides the
25 March 24, 1999, surveillance described
505
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2 above, Squad C-5 conducted
3 approximately 12 more surveillances of
4 the Hotel on March 3, 11, 17 and 31;
5 April 7, May 12; June 2, 9, 16, and
6 30; and July 14 and 21, 1999. On
7 those occasions, I observed Vergallito
8 showing up at the Hotel while Cirillo
9 or other Genovese Family members were
10 there. I also recall that in either
11 March or April of 1999, I observed
12 Vergallito on at least one occasion
13 seated at the bar in the Hotel in the
14 company of Cirillo and other Genovese
15 Family members.
16 "The foregoing is true and
17 correct to the best of my knowledge.
18 Dated December 3, 2004, Daniel P.
19 Conlon, Special Agent, Federal Bureau
20 of Investigation."
21 Mr. Vaira, attached as
22 Mr. Conlon states to this declaration
23 is the Fisure Log cover sheet which
24 documents surveillance and a
25 photograph that he describes in his
506
1
2 declaration as well.
3 I would also add one more
4 thing, that the dates that are
5 mentioned in the first paragraph of
6 Page 2, there are a number of
7 different websites where you can put
8 in a historical date and it determines
9 what day of the week that particular
10 date falls.
11 All of these dates except for
12 one are Wednesday, with the exception
13 of March 11th which is a Thursday.
14 If it is any help to you,
15 Mr. Vaira, the website that we used
16 was www.dork.com/risa/days.htm.
17 THE HEARING OFFICER: We have
18 a sophisticated investigative
19 technique in my office, too. It is
20 called old calendars. We can get
21 right to that, but thank you for the
22 website anyway.
23 MR. LEDER: I would like to
24 read the one paragraph I read before.
25 It is on the Fisure log cover sheet.
507
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2 There is certain bold subparagraphs.
3 The one I want to read is under
4 administrative data indicates that
5 Dominick Cirillo and Paul Rogina are
6 observed at Soho Grand Hotel, 310 West
7 Broadway, New York, New York where
8 they are believed to have met with
9 August Vergallito.
10 THE HEARING OFFICER: That is
11 attached to the declaration and that
12 is Attachment A. I have that right in
13 front of me along with more
14 surveillance. Thank you very much.
15 All right.
16 MR. SLEVIN: Another
17 housekeeping matter. We would ask
18 that Mr. Limberg's testimony be
19 unsealed and we would be happy to
20 substitute this specific declaration
21 for Mr. Limberg's representations of
22 Detective Varga.
23 THE HEARING OFFICER: I missed
24 the last part about Detective Varga.
25 MR. SLEVIN: Mr. Limberg got
508
1
2 on the stand and testified to his
3 background and to conversations with
4 Mr. Varga.
5 There were a lot of objections
6 to the multiple levels of hearsay, so
7 we would propose to put in this
8 declaration so those concerns as to
9 hearsay are allayed, but we would
10 still want considered Mr. Limberg's
11 background and Mr. Limberg's
12 observations as to everything else as
13 far as who Dominick Cirillo is and the
14 significance of the meeting.
15 THE HEARING OFFICER: Since we
16 have last met I have read the
17 transcript again. I believe
18 Mr. Limberg's testimony is relevant
19 and I am going to unseal it.
20 MR. SLEVIN: One other
21 housekeeping matter. There are a
22 number of instances in the record,
23 actually three where Mr. Maria refers
24 to Mr. Vergallito and his criminal
25 involvement or criminal court cases
509
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2 and so that the record is clear,
3 Vergallito was not part of the Ed
4 Dolan indictment and there are
5 references in the record at Page 335,
6 359, 363 and so for Mr. Vergallito we
7 do have a document as to his criminal
8 case.
9 THE HEARING OFFICER: I read
10 that. There is some confusion.
11 Mr. Vergallito was not involved in the
12 indictment of Dolan which took place
13 prior to that and Vergallito pled
14 separately to some other information
15 probably about two years later.
16 MR. SLEVIN: And also to
17 circle back to the declaration, we
18 have marked that as Exhibit 75, that
19 is the declaration.
20 And one final housekeeping
21 matter. Mr. Maria simply as a
22 demonstrative exhibit compiled a
23 chart, a timeline of officers of 734
24 and the 734 plans. Not all the
25 officers, just various ones and it is
510
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2 simply a demonstrative exhibit that
3 encompasses the substance of his
4 testimony regarding where those
5 individuals served at and at what
6 point in time.
7 I would propose to the extent
8 that it is helpful to the Hearing
9 Officer to put that in the record as
10 well.
11 THE HEARING OFFICER: Okay.
12 MR. LEDER: My objection to
13 Exhibit 76 is to be able to check it
14 for accuracy.
15 THE HEARING OFFICER: I do not
16 need to refer to it now. You have it
17 there. Its essence is to guide me as
18 to who is really coming in or out the
19 door. Who was where. But it would be
20 nice to see it on a piece of paper.
21 MR. SLEVIN: If Mr. Leder does
22 not have anything else we would
23 propose to put Mr. Elko back on the
24 stand.
25
511
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2 THE HEARING OFFICER: I
3 believe you were sworn in the last
4 time, so you are still under oath.
5 I believe we did not get too
6 far on Mr. Elko's testimony, about
7 three questions, so you should start
8 over again.
9 MR. SLEVIN: Mr. Elko was
10 discussing Mr. August Vergallito.
11 THE HEARING OFFICER: Just
12 start all over again.
13 J A C K E L K O, recalled as a witness,
14 having been previously sworn, resumed, and
15 testified further as follows:
16 DIRECT EXAMINATION
17 BY MR. SLEVIN: (Continued.)
18 Q State your name for the record.
19 A Jack Elko.
20 Q Mr. Elko, are you presently
21 employed?
22 A Yes, as an Inspector with the LIUNA
23 office of the Inspector General.
24 Q Hour long have you been employed?
25 A Seven years.
512
1 Elko
2 Q What types of responsibilities do
3 you have?
4 A We investigate organized crime and
5 corruption within the Laborers' Union, LIUNA
6 administration.
7 Q In your capacity as Inspector with
8 the Inspector General's office, have you had
9 occasion to examine Local 734 and its affiliated
10 plans?
11 A Yes, we have.
12 Q Have you gained familiarity with an
13 individual by the name of August Vergallito or
14 Augie Vergallito?
15 A Yes, I have.
16 Q Could you explain to the Hearing
17 Officer what you have learned about his background
18 just within LIUNA?
19 A Within LIUNA of Local 734 at Funds
20 office Augie Vergallito has been past President of
21 Local 734. He has been a member of Executive
22 Board of Local 734 and as employee he was employed
23 as an organizer. And also I learned at one point
24 in time he was listed as a confidential officer of
25 Local 734.
513
1 Elko
2 Q Have you in your investigation
3 become at all familiar with what was known as the
4 Brick office of the benefit plans?
5 A Yes.
6 Q Do you know whether or not
7 Mr. Vergallito was at all employed assisting the
8 Brick office?
9 A Through my investigation it was
10 learned that the September, 1996 minutes of the
11 Local reflect that August Vergallito would be
12 appointed outside field supervisor and office
13 manager of the Brick field office.
14 Q Could you turn to Exhibit 61. I am
15 sorry, that is Exhibit 68.
16 Do you see that document, Mr. Elko?
17 A Yes, I do.
18 Q Are those the minutes that you were
19 referring to?
20 A Yes, they are.
21 Q Mr. Vergallito was a member of LIUNA
22 as well?
23 A Yes, he was.
24 Q Do you know what Local?
25 A 734.
514
1 Elko
2 Q Could you turn to Exhibit 45,
3 please, and identify that document for the record?
4 A This is LIUNA membership standing
5 form.
6 Q Who was the membership standing form
7 for?
8 A A. Vergallito.
9 Q Does it indicate what Local he is
10 part of?
11 A Yes, Local 734.
12 Q Does it indicate an address for
13 Mr. Vergallito?
14 A Yes.
15 Q Where is that?
16 A 150 Cartegna Drive in Brick, New
17 Jersey.
18 Q Is there any zip code on there?
19 A 08723.
20 Q Now, besides your investigation of
21 his role as an employee of the Plans for the
22 Local, have you had occasion to develop any
23 information on Mr. Vergallito with respect to the
24 criminal justice system?
25 A Yes, I have.
515
1 Elko
2 Q If you could explain that to the
3 Hearing Officer in more specificity.
4 A As a result of my employment with
5 the Division of Criminal Justice and being in the
6 Organized Crime Racketeering Task Force for New
7 Jersey for 12 years, and of those 12 years
8 approximately eight were as the supervisor of New
9 Jersey field office, I was familiar with Augie
10 Vergallito as being an associate with the Genovese
11 LCN Family of New Jersey.
12 Q Did you conduct any specific
13 interviews of anyone by which you came to that
14 conclusion?
15 A Yes, I did.
16 Q Can you be more specific. First of
17 all, the time period of such an interview?
18 A The interview that I will testify
19 about took place on April 16th of 1998.
20 Q Who did you talk to on this date?
21 A I met with an investigator from New
22 Jersey Division of Criminal Justice Organized Task
23 Force who was under my supervision while I was
24 employed with the Division of Criminal Justice.
25 This meeting took place
516
1 Elko
2 approximately a year or 13 months after I left
3 employment with the State of New Jersey.
4 Q Who is that individual?
5 A State Investigator Robert Hayes.
6 Q Could you explain a little bit who
7 Mr. Hayes is?
8 A Investigator Hayes is an
9 investigator employed by the Division of the
10 Criminal Justice Organized Crime Racketeering Task
11 Force.
12 He had been under my supervision for
13 at least the previous eight years while I was
14 working at Criminal Justice.
15 Q What types of investigations did
16 Mr. Hayes conduct?
17 A He conducted investigations more
18 particularly involved in organized crime,
19 gambling, racketeering, extortion, and murder.
20 Q Do you know what particular
21 organized crime entities he looked at?
22 A All facets of organized crime within
23 New Jersey.
24 Q What particular families?
25 A All families. However, territory
517
1 Elko
2 wise Investigator Hayes had some confidential
3 sources within the Hudson County area which was
4 basically covered by the Genovese LCN Family of
5 New Jersey.
6 Q Based on what information do you say
7 the Genovese Family controlled Hudson County?
8 A Based on interviews of individuals
9 arrested. More particularly, based on information
10 directly received from individuals arrested and
11 then cooperating with law enforcement officials.
12 Q Go into a little bit about your
13 conversation with Inspector Hayes. What did you
14 ask him and what did he say?
15 THE HEARING OFFICER: Before
16 you do that, let me ask a couple of
17 questions.
18 The Division of Criminal
19 Justice you said has this organized
20 task force.
21 THE WITNESS: That is correct.
22 THE HEARING OFFICER: Does the
23 Division of Criminal Justice have a
24 system of coordinating intelligence
25 information?
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1 Elko
2 THE WITNESS: Yes.
3 THE HEARING OFFICER: In what
4 fashion is that?
5 THE WITNESS: Intelligence is
6 received and based on the individual
7 it is received from, whether it be a
8 confidential source, a confidential
9 informant, that particular person
10 would be in most cases given an
11 identification number.
12 The reports would be filed
13 under that individual's name -- I am
14 sorry, under that individual's number
15 rather than his name, and kept within
16 a confidential source registry at
17 Trenton in the Division of Criminal
18 Justice.
19 THE HEARING OFFICER: Did you
20 have a system of categorizing and
21 numbering your confidential sources?
22 THE WITNESS: Yes. For
23 confidential sources there is a
24 numbering system, yes. That is
25 correct.
519
1 Elko
2 THE HEARING OFFICER: You told
3 me this is put in a registry where you
4 have an evaluation of your
5 intelligence information.
6 THE WITNESS: Yes, we do.
7 THE HEARING OFFICER: Would
8 the various individuals who are
9 working let us say this task force
10 have access to that information?
11 THE WITNESS: If need be, yes.
12 We would periodically have meetings
13 regarding pending investigations and
14 if an individual who had information
15 about a specific area, whether it be
16 Jersey City, whether it be Elizabeth
17 or whether it be Newark, it would be
18 brought to that individual's attention
19 that intelligence may be able to be
20 gathered and gleaned from additional
21 sources who are already registered
22 within the Division of Criminal
23 Justice.
24 THE HEARING OFFICER: When was
25 this organized task force originated?
520
1 Elko
2 THE WITNESS: It was formed in
3 the middle of 1985.
4 THE HEARING OFFICER: How many
5 persons were working in it on the
6 average?
7 THE WITNESS: There were
8 approximately 40 investigators from
9 the New Jersey Division of Criminal
10 Justice and at least another 40 or 50
11 from the New York State Police.
12 THE HEARING OFFICER: All on
13 that task force?
14 THE WITNESS: Yes. It
15 encompassed the entire State of New
16 Jersey. We had the main office
17 naturally in Trenton and I believe
18 three field offices throughout New
19 Jersey.
20 THE HEARING OFFICER: When you
21 were employed before you retired what
22 was your role in that task force?
23 THE WITNESS: I was for the
24 previous eight years prior to my
25 retirement, in 1997 I was the field
521
1 Elko
2 supervisor of the northern office in
3 Fairfield, New Jersey which
4 encompassed investigations in the
5 northern section of New Jersey.
6 THE HEARING OFFICER: And the
7 fellow named Hayes who worked for you?
8 THE WITNESS: Correct.
9 THE HEARING OFFICER: What was
10 his position at the task force at the
11 time you spoke to him in 1998?
12 THE WITNESS: He was still an
13 investigator in the organized task
14 force.
15 THE HEARING OFFICER: Did he
16 have access to the documents you
17 referred to, the confidential reports
18 and the intelligence information?
19 THE WITNESS: Yes, he did.
20 THE HEARING OFFICER: You may
21 continue.
22 BY MR. SLEVIN:
23 Q Did there come a point at which
24 Mr. Hayes introduced you to a confidential
25 informant?
522
1 Elko
2 A Yes.
3 Q Was it approximately this date,
4 April 16, 1998?
5 A Yes.
6 Q Did you have occasion to interview
7 that confidential informant?
8 A Yes, I did.
9 Q What was the general topic that you
10 interviewed him on?
11 A This confidential informant spoke to
12 me about an assault which had taken place some
13 years earlier in New Jersey at the direction of
14 the then Acting Capo Louis Arrechio of the
15 Genovese LCN Family.
16 THE HEARING OFFICER: Could
17 you give me the reliability of this
18 informant, some entity where he
19 worked, what he did, whether he was
20 inside the law, outside the law. How
21 many times he had been used in the
22 past and the status of his
23 reliability.
24 THE WITNESS: The informant I
25 met who was given a number by the
523
1 Elko
2 Division of Criminal Justice was known
3 to me from prior case. I had not met
4 him based on myself being a supervisor
5 within the organized task force. I
6 knew Investigator Hayes who was under
7 my supervision had met frequently and
8 received information from this
9 particular confidential informant.
10 I knew previously, at least
11 the prior five years that the CI had
12 given us information on gambling
13 operations within a certain
14 municipality in Northern New Jersey
15 which were affiliated with the
16 Genovese LCN Family which resulted in
17 arrests and convictions of members of
18 the gambling operation.
19 THE HEARING OFFICER: How many
20 times?
21 THE WITNESS: Well, I would
22 have to say at least twice.
23 THE HEARING OFFICER: What
24 form did this information come that
25 resulted in the arrest or conviction.
524
1 Elko
2 In what form was it. Was it a search
3 warrant or affidavit. Can you
4 describe it a little more.
5 THE WITNESS: It was
6 information that was supplied on a
7 regular basis as to an ongoing
8 gambling operation within New Jersey
9 that resulted in the execution of
10 search warrants and arrests.
11 THE HEARING OFFICER: Now,
12 this individual, can you give us some
13 information, without telling us where
14 he is working and so forth, was he
15 outside the law and lived on illegal
16 means or did he have a regular job and
17 frequented with persons outside the
18 law.
19 THE WITNESS: As I recall
20 during this particular period of time,
21 it was prior to 1997 when I was still
22 employed with the State of New Jersey,
23 I do not recall that this confidential
24 informant was employed.
25 THE HEARING OFFICER: Was --
525
1 Elko
2 THE WITNESS: Other than the
3 fact he did supply us information that
4 would indicate that he may not have
5 been employed.
6 THE HEARING OFFICER: Meaning
7 that he did not have legitimate job?
8 THE WITNESS: That is correct.
9 THE HEARING OFFICER: Was he a
10 paid informant?
11 THE WITNESS: I don't believe
12 so.
13 THE HEARING OFFICER: Is he
14 still alive?
15 THE WITNESS: That's a good
16 question.
17 THE HEARING OFFICER: Do you
18 have an answer?
19 THE WITNESS: I don't know.
20 THE HEARING OFFICER: You do
21 not know?
22 THE WITNESS: As I sit here
23 right now I do not know if this
24 particular confidential informant is
25 living.
526
1 Elko
2 I did speak with Investigator
3 Hayes within the last couple of weeks
4 and he has not spoke to the
5 confidential informant in a while, but
6 he does not know whether he is
7 deceased either.
8 THE HEARING OFFICER: Go
9 ahead. I will evaluate his
10 reliability by what he says.
11 BY MR. SLEVIN:
12 Q Your conversations with this
13 informant, you said he referred to some kind of
14 relationship he had to a Mr. Arrechio?
15 A Yes.
16 Q Who is Mr. Arrechio?
17 A Louis Arrechio during the latter
18 part of 1980's and through the early '90's up to
19 mid-'90's was an individual who was in charge of
20 the northern section of New Jersey for the
21 Genovese LCN Family.
22 Q What connection did this
23 confidential informant have to Mr. Arrechio?
24 A He was associate of Mr. Arrechio who
25 handled certain tasks of Mr. Arrechio at his
527
1 Elko
2 request.
3 Q Did you learn of any specific tasks
4 that he handled for Mr. Arrechio?
5 A Yes, I did.
6 Q What was that?
7 A He had told me in 1988 he had
8 committed an assault upon an individual at a
9 construction trailer in Fort Lee, New Jersey at
10 the direction of Louis Arrechio.
11 He was told by Louis Arrechio this
12 was a union member who was to be assaulted and the
13 assault was being done as a favor for Augie
14 Vergallito.
15 Q Did the confidential informant act
16 on Mr. Arrechio's request?
17 A Yes, he did.
18 Q Did the confidential informant
19 describe to you in any kind of detail how he acted
20 on that?
21 A Yes.
22 Q Okay.
23 A He explained that he along with
24 another individual had a baseball bat that they
25 had put nails in and they were driven to a site
528
1 Elko
2 where Louis Arrechio remained in the van.
3 He was pointed out the construction
4 trailers, the individual who he assaulted was
5 present and he and his accomplice physically went
6 in and assaulted the union official.
7 Q Was this incident ever made the
8 subject of a criminal indictment?
9 A Yes, it was.
10 Q Could you explain how it was?
11 A In the mid-1990's Louis Arrechio was
12 incarcerated on Federal charges. I believe it was
13 by the Federal Drug Enforcement Administration and
14 tax violations.
15 As a result of his incarceration
16 from investigations that were being conducted by
17 other law enforcement agencies at the time in
18 1997, shortly after my retirement Louis Arrechio
19 pled guilty to an accusation prepared by the
20 Division of Criminal Justice in New Jersey.
21 Q Was there a racketeering component
22 to those charges?
23 A Yes, there was. There was one count
24 of racketeering and it contained approximately 22
25 counts of overt acts pertaining to racketeering.
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1 Elko
2 Q When you say counts, there was one
3 racketeering count and 22 overt acts within that
4 count?
5 A That's correct.
6 Q Have you learned what some of those
7 overt acts were?
8 A Yes, I did. Some of them -- I
9 believe there were three counts of murder. There
10 was arson, extortion. Weapons offenses. And as I
11 recall, there was at least eight counts of
12 conspiracy to commit bodily harm upon union
13 officials within the State of New Jersey.
14 Q Now, were any of those eight overt
15 acts described as assault of union officials?
16 A Yes.
17 Q Did it encompass the incidents which
18 the confidential informant discussed where he
19 assaulted a union official with a baseball bat?
20 A Yes, it did.
21 Q Was the victim named in the
22 indictment?
23 A No, he was not.
24 Q Was Mr. Arrechio at all involved on
25 the scene of that specific assault?
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1 Elko
2 A As I was told by the confidential
3 informant that Mr. Arrechio remained in a van
4 parked on the site.
5 Q Was there any explanation as to why
6 this occurred?
7 A The explanation that the
8 confidential source told me was that Mr. Arrechio
9 was doing that as a favor to August Vergallito due
10 to a union dispute that Mr. Vergallito had with
11 the union official.
12 Q Did there come a time when you
13 conducted any other interviews of individuals with
14 respect to Mr. Vergallito?
15 A Yes, I did.
16 Q Would you explain when that was?
17 A In June of 2001 I received
18 information and spoke with Deputy Chief Robert
19 Martin of the Jersey City Police Department.
20 Q First of all, who is Robert Martin?
21 A Robert Martin is a former Deputy
22 Chief of the Police Department in Hudson County.
23 Q Could you explain a little more.
24 A He was involved with organized crime
25 and worked up the ranks of the police to Deputy
531
1 Elko
2 Chief in the Jersey City Police Department.
3 Q Did some of his duties involve
4 investigation of organized crime?
5 A Yes, it did.
6 Q Did Chief Martin provide you any
7 information with respect to August Vergallito?
8 A Yes. In June of 2001 I was advised
9 by Chief Martin that August Vergallito was still
10 active in union, labor union matters within North
11 Jersey and that he had met with Genovese LCN
12 members and associates at a location in Union City
13 on Wednesday at 10:00 a.m.
14 Q Did he describe what that location
15 was?
16 A He advised me only the name of the
17 location was Rosa's and he gave me a telephone
18 number.
19 Q Did you act on that information?
20 A Yes, I did. I first attempted to
21 find out what actually Rosa's was. I did call
22 Rosa's subsequent to my meeting with Chief Martin,
23 and I discovered that Rosa's was actually a
24 limousine service in the Guttenberg section of
25 Hudson County.
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1 Elko
2 Q Did Chief Martin say anything else
3 with respect to Mr. Vergallito and whether or not
4 he had some role in organized crime?
5 A The information I received was that
6 meetings would take place at Rosa's to discuss LCN
7 business on a regular basis, more particularly on
8 Wednesdays at 10:00 a.m. and Mr. Vergallito would
9 meet with other union officials because he was
10 still influential within union labor activity
11 within New Jersey.
12 Q Did he give you a time when these
13 meetings would take place at Rosa's?
14 A Yes, every Wednesday. He told me
15 every Wednesday at 10:00 a.m.
16 Q For what years are we talking about?
17 A He didn't say what year. This was
18 information that he had received -- to the best of
19 his knowledge and from the information he received
20 they were still continuing in June of 2001.
21 Q Have you had occasion to talk to an
22 individual by the name of Jamie Dolan?
23 A Yes, I did.
24 Q For the record, who is Ms. Dolan
25 again?
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1 Elko
2 A Jamie Dolan was, at the time was
3 employed by the Fund of Local 734 as a
4 confidential officer.
5 Q What was the purpose of your
6 interview of Ms. Dolan?
7 A The purpose was to find out more
8 particularly when she was hired, how she was
9 hired, and her job description.
10 Q Do you recall approximately the date
11 of your interview?
12 A Yes. I believe it was November 9,
13 2004.
14 Q Well, you say currently or at the
15 time of your interview she was an employee of the
16 benefit plans.
17 Do you know whether or not she was
18 ever employed by Local 734?
19 A Yes, I do.
20 Q What did you learn?
21 A She had told me that she was hired
22 by the Local and commenced employment on
23 January 1, 1996.
24 Q How long did she continue in that
25 role?
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1 Elko
2 A She continued working for the Local
3 up until the fourth quarter of 2002 where her
4 salaries were transferred over to the Funds
5 office.
6 Q Now, did you have occasion to talk
7 to an individual by the name of Rhoda Vergallito?
8 A No, I did not.
9 Q Did you have occasion or opportunity
10 to determine whether Ms. Dolan was connected in
11 any significant way to Ms. Rhoda Vergallito?
12 A Yes. At the conclusion of my
13 interview with Jamie Dolan it was discovered that
14 Rhoda Vergallito and Jamie Dolan were actually
15 relatives.
16 Q Now, in your interview with
17 Ms. Dolan, was that something that she revealed
18 immediately?
19 A No, it was not.
20 Q Explain to the Hearing Officer how
21 that conversation went between you and Ms. Dolan.
22 A I asked Jamie Dolan about her
23 commencing work with the Local 734 in January of
24 1996. She explained that she was hired -- I am
25 sorry, she explained that she was offered a
535
1 Elko
2 position as a confidential officer by Castiglione
3 within Local 734 due to her experience working
4 with other union benefits offices in New Jersey.
5 Q Did you ask her whether there had
6 been a prior confidential officer?
7 A Yes. I asked Jamie Dolan if there
8 had been a prior confidential officer. She said
9 she did not know.
10 I then went over her job description
11 and she said she would be on call Monday through
12 Friday 5:30 to midnight to receive calls on a
13 pager system as a result of complaints received by
14 members of Local 734.
15 Q Did she say whether anyone else held
16 that position of confidential officer?
17 A When asked, she did not know of
18 anyone else that was a confidential officer prior
19 to her commencing employment.
20 Q What about when she was confidential
21 officer?
22 A When she was a confidential officer
23 she said no one else had done the work, had
24 received messages except herself.
25 Q Did she refer to Rhoda Vergallito
536
1 Elko
2 during this meeting?
3 A No, she did not. I questioned her
4 about Rhoda be hired in 1996. I questioned her
5 and she said Rhoda was hired to perform the same
6 services at a different time.
7 I had then asked her if she had
8 known if Rhoda Vergallito was replacing anyone as
9 the confidential officer. She said she did not
10 know that also.
11 Q In this specific portion of your
12 interview did she mention whether or not Ms. Rhoda
13 Vergallito was her mother?
14 A No, absolutely not.
15 Q Did she mention whether or not
16 August Vergallito was her father?
17 A No, she did not.
18 Q Did there come a point in the
19 interview when you were able to determine that
20 Rhoda Vergallito was Jamie Dolan's mother and
21 August Vergallito was Jamie Dolan's father?
22 A Yes.
23 Q How did that come about?
24 A At the conclusion of my interview
25 with her I simply asked are there any relatives
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1 Elko
2 working within the Funds or the Local 734.
3 Q When you say relatives, did you mean
4 relatives of her or just relatives?
5 A Relatives of her working within the
6 Local, and her response was I had just seen my
7 brother-in-law downstairs. I merely asked who her
8 brother-in-law was and she said Bernard Dwyer who
9 was known to me as working at the Brick office as
10 someone who worked with the scholarships.
11 At that point it was quite obvious
12 during my continued interview of Jamie Dolan that
13 she wasn't offering whether or not she was related
14 or had relatives within 734.
15 Q When she said I just saw my
16 brother-in-law, did you draw any connections?
17 A I certainly did. I asked her who
18 her brother-in-law was. She had said Bernie
19 Dwyer. I said if your brother-in-law was Bernie
20 Dwyer, is your sister Kim Vergallito.
21 Q Why did you ask if her sister was
22 Kim Vergallito?
23 A Because I knew Bernie Dwyer was
24 married to August Vergallito's daughter Kim.
25 Q When you found out that connection,
538
1 Elko
2 what did she say to you when you asked her how she
3 was connected or that you had established that she
4 was connected to the Vergallitos?
5 A I am not quite sure of the question.
6 Q Once she said that Dwyer was her
7 brother-in-law.
8 A Correct.
9 Q You knew that Dwyer was married to
10 Kim Vergallito?
11 A I knew that Dwyer was married to Kim
12 Vergallito, but I did not know she was related to
13 Kim until I asked her because obviously she could
14 have been related on Dwyer's other family side.
15 But it was confirmed immediately that she was
16 Kim's sister and she confirmed that and
17 acknowledged that.
18 With that I then said to her, well,
19 then when you were hired in 1996 by Castiglione,
20 John Fritzsch who was Fund Administrator at that
21 time was also your brother-in-law because it
22 already previously known that he was married to
23 the other daughter Stacy.
24 I also advised her that Rhoda
25 Vergallito was her mother who was also acting as
539
1 Elko
2 confidential officer doing the same job she had
3 been doing for working for the Local, and then I
4 also advised her that Augie Vergallito was her
5 father who her mother replaced as confidential
6 officer.
7 Q Did she have any reaction when you
8 pointed all that out?
9 A She had no reaction whatsoever.
10 Q She did not say anything?
11 A No. I obviously would have not
12 realized at that moment that Jamie Dolan was Augie
13 Vergallito's daughter unless I had asked whether
14 she had family members working within Local 734.
15 Q In your interviews or investigation
16 of Local 734, did you have occasion to learn
17 anything about an individual by the name of Isaac
18 Barocas?
19 A Yes, I did.
20 Q Who is Isaac Barocas?
21 A Isaac Barocas was the office manager
22 and pension investigator who worked out of the
23 Brick, New Jersey office for the Local 734.
24 Q Did he have any other positions at
25 the Brick office?
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1 Elko
2 A At one time I believe he was a
3 scholarship director as he had said for Local 734.
4 Q Did you have occasion to conduct an
5 interview with Mr. Barocas?
6 A Yes.
7 Q When was that interview?
8 A That was also November 9, 2004.
9 Q Where did that interview take place?
10 A At the Fund office in Rochelle Park.
11 Q Did you ask Mr. Barocas whether or
12 not he knew of August Vergallito?
13 A Yes, I did.
14 Q What did Mr. Barocas say?
15 A Again at the conclusion of my
16 interview I asked Mr. Barocas if he knew August
17 Vergallito. He did say he had.
18 Q How had Mr. Vergallito known him?
19 A He told me he was once a business
20 associate of Mr. Vergallito's in a business known
21 as Rosa's Limousine Service.
22 Q Did he describe with more
23 specificity the nature of that enterprise or their
24 relationship, their business relationship?
25 A He told me that in 1990 he became
541
1 Elko
2 involved with Rosa's Limousine Service as an
3 investor, and at that time the business was owned
4 by August Vergallito. For the period of 1990 to
5 1995 Mr. Barocas said he was the office manager
6 and again an investor with Mr. Vergallito.
7 Q Is Mr. Barocas still involved with
8 Rosa's Limousine?
9 A According to him he left Rosa's
10 Limousine in 1995.
11 Q Did you ask him if he had any
12 long-term contact with Mr. Vergallito?
13 A He said he still meets with
14 Mr. Vergallito on occasion socially.
15 Q Could you turn your attention to
16 Exhibit 49 and identify that document?
17 A It is a result of a business search
18 on Rosa's Taxi-Irving Barocas.
19 Q Have you had occasion to examine
20 this document?
21 A Yes, I have.
22 Q Generally speaking what significance
23 do you attach to this?
24 THE HEARING OFFICER: It says
25 a business search. Who did the
542
1 Elko
2 business search?
3 THE WITNESS: I am sorry.
4 THE HEARING OFFICER: Who did
5 the search?
6 MR. SLEVIN: What I will
7 proffer is the Inspector General had
8 Gerald Colca do a background check on
9 Mr. Barocas and the entities that are
10 mentioned in this document.
11 THE HEARING OFFICER: Where
12 does it come from?
13 THE WITNESS: It's a database
14 search that he runs on entities and
15 individuals.
16 THE HEARING OFFICER: Who is
17 the individual?
18 MR. SLEVIN: Irving Barocas.
19 THE HEARING OFFICER: Who is
20 the other individual?
21 MR. SLEVIN: C-O-L-C-A.
22 THE HEARING OFFICER: Is that
23 his business?
24 MR. SLEVIN: That is right.
25 THE HEARING OFFICER: He is an
543
1 Elko
2 independent contractor?
3 MR. SLEVIN: That is right.
4 THE HEARING OFFICER: Okay.
5 A It's a business search on Mr. Irving
6 Barocas.
7 Q Is there anything of significance to
8 you that emerges from this particular search?
9 A That Rosa's Taxi has been affiliated
10 with Mr. Barocas, 531 70th Street, Guttenberg, New
11 Jersey. The same location I had originally
12 received in 2001.
13 Q When you say the original
14 information you received in 2001?
15 A That information was that
16 Mr. Vergallito was meeting with members of
17 Genovese LCN Family at Rosa's in Guttenberg.
18 Q Have you had occasion to interview a
19 Mr. Peter Rizzo?
20 A Yes.
21 Q Who is Mr. Rizzo?
22 A Mr. Rizzo is employed by Local 734
23 Funds as a Fund Administrator.
24 Q When did you interview Mr. Rizzo?
25 A I believe that was also on November
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1 Elko
2 9, 2004.
3 Q Generally speaking, what was the
4 subject matter of the interview?
5 A The interview was conducted by
6 myself and Mr. Ray Maria. It was basically over
7 Mr. Rizzo's job affiliation with Local 734 and the
8 Fund from its inception as to when he started his
9 specific job duties, what his administrative
10 duties are at present, naturally his salary and
11 then more particularly at the end we asked him
12 about association with individuals regarding the
13 LCN, the Genovese LCN Family in North Jersey.
14 Q Did you ask him about any individual
15 specifically that he might have been associated
16 with in La Cosa Nostra?
17 A Yes, I did.
18 Q Which individuals?
19 A I asked him if he had known Joseph
20 LaRay, Pepe LaScala, Mr. Ferone. He said he did
21 not. I also asked him if he knew Mr. Dominick
22 Cirillo and his response was the name does not
23 ring a bell.
24 Upon further questioning I asked
25 Mr. Rizzo if, in fact, he had met Mr. Dominick
545
1 Elko
2 Cirillo with Augie Vergallito and his response was
3 he didn't remember.
4 THE HEARING OFFICER: Did not?
5 THE WITNESS: Did not.
6 Q Did you ask Mr. Rizzo whether or not
7 he had any ongoing contact with Mr. Vergallito?
8 A He did say he occasionally sees
9 Mr. Vergallito for lunch.
10 Q Would you turn your attention to
11 Exhibit 75.
12 First of all, before we get to that
13 document, how many times have you spoken
14 face-to-face with Mr. Rizzo?
15 A About three times.
16 Q Do you recall when that was?
17 A They were all within the last three,
18 four weeks.
19 Q Could you now turn your attention to
20 Exhibit 75 and it is I believe the last document.
21 There is a photograph attached. Do you see that
22 photograph?
23 A Yes, I do.
24 Q Can you identify either of the
25 individuals in that photo?
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1 Elko
2 A Yes, I can.
3 Q Who can you identify?
4 A The gentleman on the left is
5 Mr. Peter Rizzo, and the gentleman on the right
6 with the white jacket is Mr. Augie Vergallito.
7 Q Now, if you could describe which
8 gentleman is Mr. Rizzo.
9 A Mr. Rizzo is on the left. He has a
10 black sweater on it appears and dark colored sport
11 coat.
12 Mr. Vergallito has on a black shirt
13 and white jacket.
14 Q One more question. In conducting
15 your interview of Local 734 and the affiliate
16 plans, specifically Mr. Barocas, did you have
17 occasion to learn whether or not he goes by more
18 than one first name?
19 A Yes.
20 Q How is that?
21 A We were always advised -- we were
22 originally advised that Mr. Barocas was actually
23 Isaac Barocas. Through subsequent interviews and
24 talking with individuals I discovered and
25 Mr. Maria discovered the same thing that Isaac and
547
1 Elko
2 Irving were actually the same person.
3 MR. SLEVIN: No further
4 questions.
5 THE HEARING OFFICER: Go
6 ahead. We will go for about 20
7 minutes.
8 CROSS-EXAMINATION
9 BY MR. LEDER:
10 Q Mr. Elko, you have been employed by
11 the LIUNA for the last seven years; is that
12 correct?
13 A That's correct.
14 Q And at what time were you assigned
15 an investigation of Local 734 and its affiliated
16 Funds?
17 A The latter part of October, 2004.
18 Q So prior to October of 2004 you were
19 not conducting any investigations of Local 734?
20 A I did conduct some investigations at
21 Local 734. Yes, I have.
22 Q Let us take from October of 2004 by
23 who you were instructed to investigate Local 734?
24 A Douglas Gow, Inspector General, to
25 assist Mr. Ray Maria in an investigation at Local
548
1 Elko
2 734.
3 Q Prior to October of 2004 had you
4 conducted any investigations of Local 734?
5 A Yes, I had.
6 Q Can you tell me how many times and
7 when?
8 A As I recall, I believe there was
9 two.
10 Q When were they?
11 A It was sometime, would be guessing
12 between 1999 and 2004. In that area.
13 Q Why did you conduct those two
14 investigation?
15 A Again, at the direction of the
16 Inspector General.
17 Q What were the results of those
18 investigations?
19 A The results were forwarded back to
20 the Inspector General. I have no results.
21 Q What did you compile?
22 A I compiled some documents as per a
23 request by the Inspector General.
24 Q Did you report about any individuals
25 in those two reports?
549
1 Elko
2 A Yes, I had, based on the purpose of
3 my inquiry.
4 Q What was the purpose of inquiry?
5 A It might be a little unusual. I
6 recall at one point when the Local had gone into a
7 Voluntary Supervision as a matter of course we
8 would receive correspondence from it saying that
9 these members are Executive Board members or
10 members of Trustees or what-have-you.
11 That request would involve whether
12 or not the Inspector General has any objection or
13 any inquiries as to those individuals.
14 I specifically went over and I spoke
15 with Mr. Rosado at the time and after discussion I
16 prepared my report and sent it back to the
17 Inspector General.
18 Q So the Voluntary Supervision
19 occurred in October of 2002. Is it your
20 recollection from your testimony that your
21 investigation occurred right prior to the
22 supervision or right after?
23 A No, it was subsequent to 2002.
24 Q You went and spoke to Mr. Rosado?
25 A Yes, because he was the Chairman at
550
1 Elko
2 that time.
3 Q Chairman of what?
4 A The Funds or -- no, he was Business
5 Manager and I spoke to him.
6 Q What did you talk to him about?
7 A About the list of members as given
8 to me by the Inspector General.
9 Q Not the members of the whole union,
10 but the members of Executive Board?
11 A No, the members of Fund.
12 Q The members of the Fund.
13 Do you know who those members were?
14 A No. I do remember John Fritzsch was
15 on there. I believe he was the administrator at
16 that time. Mr. Rosado was on there. I think Joe
17 Gambardella was on there.
18 Q Did you conduct any independent
19 investigation of Mr. Rosado?
20 A No.
21 Q Did you conduct any investigation of
22 Mr. Gambardella?
23 A No.
24 Q Did you conduct any investigation of
25 Mr. Fritzsch?
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1 Elko
2 A No, I did not.
3 Q What was the purpose of meeting with
4 Mr. Rosado to talk about those people?
5 A I would assume at that point that my
6 questions for Mr. Rosado were these members on the
7 Board prior to the Supervision. Are they on here
8 presently now. Were there any changes.
9 I certainly looked at the list at
10 that point knowing full well that Mr. Vergallito
11 had a history in Local 734 and he was not on that
12 list. So based on the interview of him, based on
13 the individuals who were on that list I prepared a
14 report saying that these were the ones that were
15 on before. These are the ones that are on there
16 now and it's in Voluntary Supervision.
17 Q At that time you knew that August
18 Vergallito had some contact with Local 734?
19 A Yes, I did.
20 Q Did you inquire of Mr. Rosado
21 whether Mr. Vergallito was still employed?
22 A No, I did not.
23 Q Did you do any investigation
24 concerning Mr. Vergallito's involvement with the
25 union?
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1 Elko
2 A No, not at that time.
3 Q Did you alert Mr. Rosado that there
4 were certain questionable things about
5 Mr. Vergallito that he should be aware?
6 A No, I did not.
7 Q Prior to October of 2002 did you
8 conduct another investigation of Local 734?
9 A Yes. Yes, I did.
10 Q Do you recall when that was?
11 A No. It had to be -- it may have
12 been around the same time. Either prior to
13 October of 2002 or just shortly thereafter. It
14 was resulting in a complaint from a member who is
15 disgruntled with some union representation at a
16 printing company.
17 Q Did you investigate that?
18 A I investigated it to the extent
19 where I originally took information from the
20 employee. I had spoken to Mr. Rosado and Joe
21 Gambardella about it, and at that point the union
22 member I believe left the union, refused to
23 cooperate and the case was dismissed or closed
24 out.
25 Q The case meaning the employee's
553
1 Elko
2 complaint, the dispute?
3 A That's correct.
4 Q Grievance?
5 A Yes, that is correct.
6 Q Did you have any indication that
7 Mr. Rosado or Mr. Gambardella did not handle the
8 grievance in the proper function?
9 A The grievance?
10 Q I used the word grievance, but the
11 complaint from the member. Did you have any
12 information that Mr. Rosado or Mr. Gambardella did
13 not handle that appropriately?
14 A No, I did not.
15 Q Did you issue some kind of report on
16 that?
17 A I just typed up my results and
18 findings and sent them down to Washington.
19 Q When did you first become aware of
20 Mr. Vergallito's involvement with Local 734?
21 A I would say probably in the late
22 1980's.
23 Q At that time did you believe that
24 Mr. Vergallito had these alleged connections with
25 organized crime?
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1 Elko
2 A In 1980's, late '80's, yes, I did.
3 Q So you believed that he was employed
4 by Local 734 and involved with organized crime; is
5 that correct?
6 A In the late 1980's?
7 Q Yes.
8 A While I was employed with the State
9 I knew two things. That August Vergallito was an
10 associate of the Genovese LCN Family and was
11 involved with union business within unions in New
12 Jersey.
13 Q Was Mr. Vergallito arrested because
14 he was somehow involved with organized crime and
15 involved with labor unions?
16 A I don't know the answer to that.
17 Q Was Mr. Vergallito widely known as a
18 member of an organized crime family to members of
19 Local 734?
20 A I do not know.
21 Q You have worked a lot in organized
22 crime. Do organized crime members advertise that
23 they are organized crime members?
24 A Not normally.
25 Q In fact, they usually keep that
555
1 Elko
2 pretty secret?
3 A In most case.
4 Q In most cases.
5 Sammy the Bull cases are the
6 exception to the rule; aren't they?
7 A There are exceptions.
8 Q But most of the time there are not?
9 A Correct.
10 Q Do you have any reason to believe
11 that any of the Executive Board members of Local
12 734 in October of 2004 knew that Mr. Vergallito
13 was a member of organized crime?
14 A The Executive Board?
15 Q Yes. Yes, any of the members of the
16 Executive Board.
17 A Well, I am not sure who are you
18 putting in the class of Executive Board. Just my
19 lack of knowledge of the Executive Board and the
20 Trustees.
21 Q Do you have the exhibit book in
22 front of you?
23 A Yes, I do.
24 Q I turn your attention to Exhibit No.
25 5.
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1 Elko
2 Do you have any reason to believe
3 that Michael Rosado knew that Augie Vergallito was
4 a member of organized crime?
5 A No, I do not.
6 I can save the trouble. This list
7 of these individuals on Exhibit --
8 Q Five.
9 A Exhibit 5. In my opinion they did
10 not know he was a member of organized crime.
11 Q Do you have any reason to believe
12 that the two Employer Trustees, Mr. Salerno and
13 Mr. Calastro knew that Mr. Vergallito was a member
14 of organized crime?
15 A I don't know. You are asking me a
16 question.
17 Q I am just asking if you have any
18 knowledge.
19 A I don't know if they do and I don't
20 know that they do not.
21 Q But you have no knowledge that they
22 do know; is that correct?
23 A I have no idea that they do know or
24 they don't know.
25 Q All Right. Besides Local 734, was
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1 Elko
2 Augie Vergallito involved with other unions?
3 A There is some intelligence that he
4 has been involved with some other unions. I knew
5 he was involved with Local 31 at one time before
6 joining 734, if that answers your question.
7 Other unions, I understand he may
8 have been affiliated with Local 911 along with his
9 brother.
10 Q Any other ones?
11 A Not that I know of.
12 Q 31 and 911. 31, is that Laborers'
13 union?
14 A That is a Laborers' Local that
15 merged with Local 31 in Jersey City.
16 Q Local 31, is that a Laborers' Local?
17 A I don't believe so. No, it is not.
18 Q Now, turning your attention to
19 Exhibit 45, you indicated that this is -- what is
20 this?
21 A We call it a membership standing
22 sheet.
23 Q Membership standing sheet, okay.
24 You indicated that his address is listed as 150
25 Cartegna Drive, is that correct. Right next to it
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2 it says invalid address.
3 Do you know what that means?
4 A I don't know. I have no idea,
5 invalid address.
6 Q Is this on every one of these
7 membership standing sheets that you have seen?
8 A No, I don't believe so.
9 Q It is very possible that the address
10 listed here is incorrect, an invalid address by
11 the nature of the document?
12 A By the nature of the document it may
13 be, correct.
14 Q You do not know that for a fact?
15 A No.
16 Q Now, going back to Louis Arrechio,
17 you indicated that he was indicted in the
18 mid-1990's; is that correct?
19 A I believe he was convicted or pled
20 guilty to Federal charges. He was incarcerated,
21 imprisoned in mid-1990's I believe on Federal
22 charges.
23 Q So that had nothing to do with your
24 office or your former office, the Division of
25 Criminal Justice; is that correct?
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2 A Those charges, no.
3 Q Did you get a copy of the document
4 which indicated that he pled guilty to one count
5 of racketeering and 22 other counts?
6 A No, I did not.
7 Q How do you know that information?
8 A Well, I had a document that was
9 unsigned prior to him pleading guilty. In other
10 words, I could not have an official copy.
11 Q Was a signature necessary for the
12 document?
13 A It was a plea draft. I think that
14 is the copy that I have.
15 Q The copy you have is a plea draft?
16 A It's a draft of his pleading guilty
17 to that particular accusation.
18 Q So in your experience there are
19 times when a criminal defendant will execute a
20 document pleading guilty; is that what you are
21 indicating?
22 A That is correct. Prior to arrest,
23 prior to indictment.
24 Q Prior to trial?
25 A Prior to trial.
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2 Q This is a settlement agreement
3 basically?
4 A Correct.
5 Q Where there is an admission by the
6 defendant?
7 A Yes.
8 Q Was that document ever signed?
9 A I believe so, yes.
10 Q Do you know what was in the final
11 document?
12 A I believe that it was the same draft
13 that I have here.
14 Q If you never saw the final document,
15 how do you know it is the same?
16 A I don't know. I am just telling you
17 this was a draft and I believe --
18 Q You do not know. You do not know if
19 there were eight counts of conspiracy or three
20 counts of conspiracy in the final?
21 A Officially.
22 Q You do not know if there were eight
23 counts of murder or three counts of murder?
24 A Not in the final.
25 Q With regard to these charges, do you
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2 know if Augie Vergallito was named as
3 co-conspirator, an actor of some kind with regard
4 to the one count you alleged with regard to
5 conspiracy to commit physical assault on a union
6 official?
7 A No, I do not.
8 Q Do you know if Augie Vergallito was
9 ever charged with that crime?
10 A I believe he was not charged with
11 that crime.
12 Q Not charged, okay.
13 There is no official transcript, is
14 there, indicating that Augie Vergallito asked
15 Mr. Arrechio for a favor?
16 A Just on the information received
17 from the confidential informant.
18 Q The confidential informant was not
19 paid, right; was that your testimony?
20 A That is correct.
21 Q Was the confidential informant
22 arrested prior to him becoming a confidential
23 informant?
24 A I believe so.
25 Q So the confidential informant traded
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2 either evasion of criminal charges or lessening of
3 criminal charges in cooperating with you?
4 A On occasion that happens, yes.
5 Q Not on occasion, it is normal, is it
6 not?
7 A It is not normal. It happens on
8 occasion.
9 THE HEARING OFFICER: Was he
10 under arrest when he spoke to you?
11 THE WITNESS: No, sir.
12 THE HEARING OFFICER: But the
13 gist of Mr. Leder's questioning is
14 this is a confidential informant that
15 had the heat on him.
16 THE WITNESS: At one point in
17 time and I am not 100 percent
18 positive, but I would say generally
19 based on the circumstances of
20 information received what I did know
21 about the confidential informant he
22 was involved in criminal activity and
23 solicited some assistance with law
24 enforcement.
25 As a result of that assistance
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2 he cooperated with law enforcement
3 over an extended period of time.
4 Q Just to make the record clear, you
5 are unaware of any legitimate employment that he
6 had; is that correct?
7 A Yes, I am.
8 Q Did you ever learn what the dispute
9 was between Mr. Vergallito and the ultimate
10 victim?
11 A No, I did not.
12 Q Now, in June of 2001 you were
13 employed where?
14 A With the Inspector General's office.
15 Q You spoke to Deputy Chief Martin?
16 A Correct.
17 Q From Jersey City.
18 Is Deputy Chief Martin involved in
19 the investigation of organized crime as Deputy
20 Chief?
21 A I believe he oversaw the bureau at
22 that particular time, but prior to him becoming
23 Deputy Chief he was involved in organized crime
24 investigations.
25 Q So it was prior to becoming Deputy
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2 Chief that he was involved in the investigations?
3 A As I recall, Deputy Chief Martin had
4 on continuous basis supplied myself and other
5 members of the Division of Criminal Justice with
6 information regarding organized crime in Jersey
7 City.
8 Q In June of 2001 you had been out of
9 the Division of Criminal Justice for how long?
10 A Four years.
11 Q So even though you are not in that
12 office for four years he still supplied you with
13 that information in June of 2001?
14 A That is correct.
15 Q Did you make it clear to him you are
16 no longer involved in law enforcement?
17 A Yes. In 1999 he supplied me with
18 information about organized crime within Jersey
19 City that involved other local officials.
20 Q He knew that you were not involved
21 in law enforcement in 2001?
22 A Absolutely.
23 Q How did it come to be you came to
24 talk about August Vergallito in June of 2001?
25 A Because he knew the labor union
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2 within Jersey City and Hudson County had been
3 affiliated with LCN Genovese Family and he knew
4 August Vergallito was a member of Genovese Family
5 which I knew from other information he gave me in
6 former years.
7 Q In June of 2001 you went to his
8 office for what purpose?
9 A I didn't go to his office. I think
10 I spoke to him on the phone or Investigator Hayes
11 told me he had spoken to him and I should call
12 him. But I did receive that information from
13 Deputy Chief Martin. I just don't call him every
14 month if that is what your question is.
15 Q What was the purpose of your call?
16 A Because we are continuously
17 investigating LCN figures in Hudson County.
18 Q In June of 2001 you called him and
19 said what is up?
20 A No.
21 Q What was the purpose of the call?
22 A He had called me and told me Augie
23 Vergallito, an Genovese associate was meeting with
24 union officials at a place within Hudson County,
25 New Jersey.
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2 Q So now you did not call him, he
3 called you?
4 A As I recall, I think he had called
5 me, correct, or I may have run into him. I don't
6 know at this point, but that is when I received
7 the information.
8 Q Option No. 1 is you called him?
9 A Excuse me.
10 Q The second option is you called him
11 because Hayes called you and told you he had
12 something for you?
13 A That is correct.
14 Q You also said that he might have
15 called you?
16 A I don't believe he called me. I
17 would call him or I would see him or Hayes would
18 tell me he had spoken to him and I should call
19 him. He knew I was interested in intelligence
20 within the unions within Hudson County.
21 Q The third option is you might have
22 ran into him?
23 A No, I didn't run into him.
24 Q I thought you just testified to
25 that.
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2 A I may have. I may have ran into
3 him. There are a number of reasons because I did
4 talk to him frequently at that time.
5 Q He volunteered the information
6 regarding August Vergallito without your
7 prompting?
8 A He just told me.
9 Q He said that August Vergallito is
10 meeting at Rosa's on union matters; is that
11 correct?
12 A He had told me that August
13 Vergallito meets at a location called Rosa's where
14 he meets with other union officials and members of
15 Genovese LCN Family. That is what he told me.
16 Q Did you inquire who the other union
17 officials were?
18 A Yes.
19 Q Did he give you an answer?
20 A Yes.
21 Q Who?
22 A John Viola.
23 Q Is that it?
24 A That is who he told me he was
25 meeting. The other union officials was John
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2 Viola.
3 Q You said union officials, but there
4 was only one, John Viola?
5 A Yes.
6 Q Did he give you any other names, did
7 he tell you who the LCN members are?
8 A Yes. Pepe LaScala.
9 Q So the meetings that were being held
10 at Rosa's, in Union City at Rosa's were among
11 three people?
12 A He told me John Viola, Pepe LaScala,
13 himself and others he didn't name.
14 Q Others he didn't name. Did you ask
15 him who those were?
16 A No. He did not know.
17 Q What did you do with this
18 information?
19 A I tried to ascertain the location of
20 Rosa's.
21 Q Did you get a street address?
22 A Yes, I did.
23 Q Then what did you do?
24 A I conducted a surveillance of Rosa's
25 on two separate occasions.
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2 Q And --
3 A Originally before I conducted a
4 surveillance I called Rosa's. Naturally as I
5 testified before I did not realize prior to this,
6 nor did Deputy Chief Martin that Rosa's was
7 actually a limousine service. I assumed it was
8 luncheonette based on the name.
9 Q You found out it was a limousine
10 service?
11 A After calling.
12 Q Do you remember who you spoke to?
13