Today, the Daily News
begins a three-part series exposing how
real-life Tony Sopranos and mobbed-up
contractors steal your tax dollars, put workers'
lives in danger and even screw up traffic at
rush hour.
The next time you're stuck in traffic caused
by highway construction that appears to involve
no actual work, you can thank the Gambino crime
family. While you're sitting there, burning up
$3 per gallon gasoline, chew on the fact that
mob-connected contractors are creating highway
traffic jams all over New York — on the BQE, the
Bruckner, the Van Wyck, the Cross Bronx, the
Long Island Expressway, as well as up and down
the New York Thruway.
The mob isn't ripping off taxpayers just on
highway construction jobs, either.
A four-month Daily News investigation has
found that New York's organized crime families —
supposedly banned from all such construction
projects — are back in public works big time —
at city schools, playgrounds, bridges and parks.
Since 1995, dozens of contractors barred from
doing government work because of mob ties,
corruption or serious safety violations have
been able to win more than 100 public contracts
worth more than $1.2 billion.
Take the massive $138 million Brooklyn-Queens
Expressway repair that is currently mucking up
traffic near Flushing Ave. It's the work of
Defoe Construction, a firm the FBI says has been
controlled by organized crime for years.
Earlier this month, The News found traffic
backed up for a mile at the Defoe site, but no
workers were seen working. Four men chatted
inside an air-conditioned van while a backhoe
and several dump trucks sat idle nearby.
Defoe was hired in May by the State of New
York for the BQE job, just weeks after its
president was indicted on charges of bribing a
mob-infected union.
The FBI has gathered evidence over the last
few years that Defoe president John Amicucci has
regularly paid off mob-connected unions to use
cheaper nonunion help.
On government jobs, prosecutors say, that
means Defoe billed the taxpayer for union scale,
hired nonunion help and pocketed the difference
as profit.
Last year, Amicucci was repeatedly caught on
tape delivering payoff cash and discussing
corrupt practices with Gambino gangster Greg
DePalma, according to FBI documents obtained by
The News.
DePalma, who frequently talked in mob
code-speak, often referred to Amicucci as
"Daffy."
On Nov. 15, DePalma told a subordinate: "We
got to meet Daffy this week and pick up the
fazzulas," which the FBI says meant payoff cash.
The day before Thanksgiving, the FBI watched
Amicucci meet DePalma in the Leewood Country
Club parking lot in Eastchester. DePalma offered
to get Amicucci "straightened out" — that is,
arrange for him to become a made member of the
Gambino family. "I could do it for you," DePalma
said.
According to the FBI, Amicucci said he "would
consider DePalma's offer."
Later that day, DePalma boasted about the
"size of rubber band" he got from Amicucci,
which FBI documents said referred "to the
thickness of the cash payment Amicucci had just
made to DePalma."
DePalma described his receipt of tribute
payments from Amicucci: "I did it in the rain
with an umbrella."
Two weeks later, Amicucci was charged with
making illegal payoffs to a corrupt union
infiltrated by the mob. He pleaded not guilty
and faces trial.
None of the evidence stopped Defoe
Construction from bidding on two New York
highway jobs.
Amicucci promised bureaucrats that if his
company won the contracts, he would have nothing
to do with the projects.
In March, the state Transportation Department
took him at his word.
Despite the pending labor corruption
indictment and a thick FBI file regarding its
marriage to the mob, the Defoe firm was awarded
two taxpayer-funded contracts totalling $143
million.
Incredibly, state DOT spokeswoman Jennifer
Post said this arrangement was acceptable
because Amicucci — who says he owns 99.4% of the
company — "has recused himself from any
involvement" in the contracts.
In response to questions from The News,
however, Post admitted the agency was unaware of
the FBI evidence regarding Amicucci's
involvement with the mob.
Amicucci's lawyer, Gerald Shargel, declined
to address the mob allegations, but insisted
Defoe did the job it was hired to do: "Regarding
those projects, they saved the state a fantastic
amount of money. That's why they get these
jobs."
***
The New York State Thruway Authority hired
Persico Construction of Westchester County in
April 2000 to fix an I-95 bridge in New
Rochelle.
For the next two and a half years, lane
closures and traffic stops at the Potter Ave.
location became as routine as kids in the
backseat whining, "Are we there yet?"
The firm is owned by Robert Persico, who was
indicted in March on mob racketeering charges.
Persico has been publicly identified as a mob
associate since 1998.
Prosecutors said in court then that Persico
consulted the Gambino family to get a
mob-controlled union to let him use nonunion
help. In exchange, he got a Gambino soldier a
no-show job, they alleged.
The disclosures didn't stop Persico from
being hired on the I-95 bridge job, which was
supposed to be completed in September 2001 and
cost $6 million.
In fact, the job took an extra year and came
in at $9 million.
Records obtained by The News under the
Freedom of Information Law show that in March
2002, with complaints escalating about the
competency of Persico's work, he hired lobbyist
Albert Pirro, husband of U.S. Senate candidate
Jeanine Pirro.
By the time the I-95 project was half
completed, Persico had already closed traffic
lanes at the site on 101 occasions — far more
than expected. Often, warning signs were not in
place, and workers were left unprotected.
Again and again, traffic was backed up 2, 3 —
even 5 — miles, sometimes in rush hour, other
times in the middle of the night, according to
the documents, which include internal Thruway
E-mails.
Though the firm was under strict orders to
clear all lane closures by rush hour, delays
caused "significant traffic backups throughout
the Tuesday morning rush hour," wrote an
official from Berger Lehman, the project's
engineering firm.
One Thruway official was so concerned, he
wrote: "If stopping traffic for approximately 10
minutes when a 5-plus-mile backup already exists
(which was not properly signed and protected),
please let me know in writing to remove myself
from any liability."
Persico was ordered banned from the site in
2001 after he cursed over a radio about a female
inspector trying to cite the firm for yet
another lane-closure problem.
The Thruway ordered Persico off the site, but
Persico kept showing up. Mid-level state
officials blasted Persico for deliberately
ignoring orders and threatened to bar the firm
from future work with the agency.
Memos from the engineering firm alleged that
pilings that were to take five days to install
took four weeks and that concrete footings
scheduled to be in place in two weeks took six
months.
Persico, in turn, blamed Thruway officials
for the excessive lane closings, claiming that
the agency was oblivious to the road layout in
designing road closure patterns.
The construction company sought additional
funds and said actions by Thruway officials were
to blame for keeping workers on the sidelines.
On April 29, 2002, with Pirro now
representing Persico, an internal Thruway E-mail
showed that midlevel inspectors wanted to impose
sanctions on the firm for failure to complete
the job on time, "but per the director we are
deferring these assessments until a later date."
There were more lane closing disputes during
the summer of 2002. In one case, the state
police had to intervene to undo what it
considered to be an unsafe lane closure during
the July 4 holiday week.
The final sign-off on the contract took place
on Oct. 25, 2002 — 13 months behind schedule.
All the proposed sanctions had disappeared, and
Persico was paid an extra $3 million he had
asked for.
Persico's lawyer, Barry Levin, said Pirro
"was hired to help my client collect outstanding
monies owed to him. Pirro was successful in that
endeavor."
In a written statement to The News, Pirro
would only say he was retained by Persico "to
help resolve its payment dispute with the
Thruway authority over the reconstruction of a
bridge in New Rochelle."
Pirro refused to answer other
questions about the nature of the
representation.
However, Thruway authority spokesman
Daniel Gilbert said Pirro's firm "did
not play a role in the resolution of the
payment dispute, but did make a couple
of inquiries about the process and the
status of the dispute."
Regarding the increase in the
payments, Gilbert said after careful
review, the agency determined that
"various delays and payment for certain
documented extra expenses were
justified. Ultimately, there were many
reasons for the delays, including
numerous design issues which
additionally made the contract more
expensive."
Since the I-95 job, the thruway hired Persico
for two more jobs worth a total of $17.5
million.
In the midst of those projects, the
FBI taped Persico meeting repeatedly
with Gambino gangster Greg DePalma and
discussing construction corruption,
according to FBI transcripts.
Originally published on September 25,
2005