York City area, and Local 608 of the United Brotherhood of Carpenters and Joiners of
America—the carpenters’ union for much of New York County. The reduced labor costs
realized by contractor enterprise members greatly enhanced their competitiveness in the
construction industry in the City and State of New York—amounting to the fixing of prices—
and placed legitimate construction industry contractors who were not a part of the Lucchese
Construction Group at a disadvantage. The projects on which contractor enterprise members
enjoyed such a competitive advantage included IS 93, PS 33, the Park Central Hotel and luxury
apartments at 354 Broadway in New York County.

In return for rigging bids, fixing prices, and engaging in other anticompetitive
arrangements, the Lucchese Organized Crime Family members of the Enterprise received a
minimum of five percent of each contract price, as a “mob tax,” paid by the contractor
enterprise members. Additionally, contractor enterprise members were required to employ
made members of the Lucchese Organized Crime Family as “no show” or “no work”
employees, primarily as a means of maintaining an ostensibly legitimate source of income, but
also to provide medical coverage and pensions for these individuals. A “no show” job meant
literally that the person was paid for not being present at a job site, and a “no work” job meant
that the person would be at a construction site not working, but engaging in other Lucchese
Organized Crime Family schemes.

Further, some contractor enterprise members, particularly defendant Steven Chait

Osserman of Kent Building Systems Inc., a modular construction company, acted as a front for

Steven L. Crea who would otherwise not be permitted to conduct business with the School

Construction Authority. Moreover, Crea required certain contractors to purchase modular

construction units from Kent in order to conduct business in New York State.

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