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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK
------------------------------------ X UNITED STATES OF AMERICA

:

- v -                    :    INDICTMENT

LOUIS MOSCATIELLO, SR.,              :    04 Cr. JAMES DELIO,

a/k/a “Jamie,”

: CARMINE MINGOIA,

FRED NISALL,

: a/k/a “Fred Nisalevich,”

a/k/a “Fred Buschel,”

: a/k/a “Fred Bushell,”

a/k/a “Jack Miller,”

: CARMINE SEDITA,

JOSEPH DELIO,

: ROBERT ALVAREZ,

PAUL GHIRARDUZZI,

: THOMAS BOVE,

FRANK MALANGONE,

: a/k/a “Butch,”

FRED MENDOZA,

: ROBERT CARBONE,

a/k/a “Bucky,”

: LOUIS MOSCATIELLO, JR.,

JOHN CAMPANELLA, JR.,

: JOSEPH SCELZO,

a/k/a “Fat Joey,”

: JOHN BARONE,

SAMUEL DAZLE,

: LEON THOMAS,

ALBERT POMETTO, JR.,

: NICKY GALLO,

MARCO DURAND, and

: JOSEPH RUGGIERO

a/k/a “Joe Black,”

: Defendants.

:

------------------------- X COUNT ONE

Racketeering Violation The Grand Jury charges:

Text Box: 2 At all times relevant to this Indictment:

The Enterprise

1.                     LOUIS MOSCATIELLO, SR., JAMES DELIO, a/k/a “Jamie,” CARMINE MINGOIA, FRED NISALL, a/k/a “Fred Nisalevich,” a/k/a “Fred Buschel,” a/k/a “Fred Buschell,” a/k/a “Jack Miller,” CARMINE SEDITA, JOSEPH DELIO, ROBERT ALVAREZ, PAUL GHIRARDUZZI, THOMAS BOVE, FRANK MALANGONE, a/k/a “Butch,” and FRED MENDOZA, the defendants, and Robert Carbone, a/k/a “Bucky,” together with others known and unknown, were members and associates of the Genovese Organized Crime Family of La Cosa Nostra (the “Genovese Organized Crime Family”). The Genovese Organized Crime Family is a criminal organization whose members and associates have engaged in numerous acts of violence and other criminal acts, including murder, attempted murder, extortion, labor racketeering, employee benefit plan embezzlement, the financing and making of extortionate extensions of credit and the collection of extensions of credit through extortionate means (commonly known as “loansharking”), mail fraud, wire fraud, and money laundering.

2.                     The Genovese Organized Crime Family, including its leadership, membership, and associates, constituted an “enterprise,” as that term is defined in Title 18, United States Code, Section 1961(4) –- that is, a group of individuals associated in fact, which was engaged in, and the activities of which affected, interstate and foreign commerce. The Genovese

Text Box: 3 Organized Crime Family was an organized criminal group based in New York City that operated in the Southern District of New York and elsewhere and constituted an ongoing organization whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. The Genovese Organized Crime Family was referred to by its members and associates in various ways, including as a “la cosa nostra,” a “Family,” and “this thing of ours.”

3.                     The Genovese Organized Crime Family was part of a nationwide criminal organization known by various names, including the “Mafia” and “La Cosa Nostra” (“LCN”), which operated through entities known as “Families.” In addition to the Genovese Organized Crime Family, five other Families operated in the New York City and New Jersey area, namely, the Gambino Organized Crime Family of LCN, the Luchese Organized Crime Family of LCN, the Colombo Organized Crime Family of LCN, the Bonanno Organized Crime Family of LCN, and the Decavalcante Organized Crime Family of LCN.

4.                     The Genovese Organized Crime Family operated through groups of individuals known as “crews” and “regimes,” most of which were based in New York City. Each “crew” had as its leader a person known as a “Caporegime,” “Capo,” or “Captain,” and consisted of “made” members, sometimes known as “soldiers,” “wiseguys,” “friends of ours,” and “good fellows.”

Text Box: 4 Soldiers were aided in their criminal endeavors by other trusted individuals, known as “associates,” who sometimes were referred to as “connected” or identified as “with” a soldier. Associates participated in the various activities of the crew and its members.

5.                     Each Capo was responsible for supervising the criminal activities of his crew and provided soldiers and associates with support and protection. In return, the Capo typically received a share of the illegal earnings of each of his crew's soldiers and associates, which was sometimes referred to as “tribute.”

6.                     Above the Capos were the highest-ranking members of the Genovese Organized Crime Family. The head of the Genovese Organized Crime Family was known as the “Boss,” who was normally assisted by an “Underboss” and a “Consigliere,” or counselor. The Boss, Underboss, and Consigliere were responsible for, among other things, setting policy, resolving disputes among members of the Genovese Organized Crime Family, and resolving disputes between members of the Genovese Organized Crime Family and members of other criminal organizations. At various times relevant to this Indictment, members of the Genovese Organized Crime Family were temporarily appointed to serve as Boss, Underboss, Consigliere, or Capo in place of an incarcerated member holding that position. Whenever this occurred, the member

Text Box: 5 holding the temporary appointment would function in an “acting” capacity for the incarcerated member, who continued to hold the “official” position in the Family. In addition, at various times relevant to this Indictment, members of the Genovese Organized Crime Family served on a committee or ruling panel, a group of high-ranking members of the Family who assisted and, at times, made decisions with or on behalf of the Boss and the Acting Boss of the Family.

7.                     The Boss, Underboss, and Consigliere, and, at times, members of the ruling panel of the Genovese Organized Crime Family supervised, supported, protected, and disciplined the Capos, soldiers, and associates, and regularly received reports regarding their various activities. In return for their supervision and protection, the Boss, Underboss, Consigliere, and members of the ruling panel typically received part of the illegal earnings of each crew.

The United Brotherhood of Carpenters and Joiners

8.                     At all times relevant to this Indictment, the United Brotherhood of Carpenters and Joiners (the “U.B.C.J.”) was a national labor union that represented skilled workers on construction sites. These workers typically performed such jobs as, among other things, hanging drywall, which is also known as “sheetrock,” by affixing it to interior frames to form the indoor walls of buildings.

9.                 Text Box: 6 In New York City, the U.B.C.J. has approximately 23,000 members and is divided into locals that are associated with the five boroughs. These locals are Locals 608 (Manhattan - Westside), 608 North (Bronx), 157 (Manhattan - Eastside), 45 (Queens), 926 (Brooklyn), and 20 (Staten Island) (collectively, the “New York City Locals”).

10.            The District Council of New York City and Vicinity of the U.B.C.J. (the “District Council”) is the administrative body that oversees the New York City Locals.

11.            The District Council (on behalf of the New York City Locals) has entered into numerous contracts, or collective bargaining agreements (“CBAs”), with various construction contractors and associations of construction contractors who operate at jobsites in the five boroughs of New York City. The CBAs govern many aspects of the relationship between individual contractors and individual members of the U.B.C.J. who are employed by such contractors as carpenters at jobsites within New York City.

12.            Among other things, the CBAs obligate the contractors to employ only union labor on jobsites, to pay wages according to a pre-defined scale set forth in the CBAs, and to notify the District Council regarding new projects. Furthermore, the CBAs require the contractors to make contributions to the Welfare Fund, Pension Fund, Vacation Fund, Annuity Fund,

Text Box: 7 Apprenticeship, Journeyman Retraining, Educational and Industry Fund, Supplemental Funds, U.B.C. and J.A. Funds, and New York City and Vicinity Carpenters Labor-Management Cooperation Fund (collectively, the “District Council Benefit Funds”), in specified amounts for each hour worked by union members employed by the contractors. Of these funds, the Welfare Fund, Pension Fund, Vacation Fund, Annuity Fund, and Apprenticeship, Journeyman Retraining, Educational and Industry Fund (collectively, the “District Council ERISA Funds”) are subject to the provisions of title I of the Employee Retirement Income Security Act of 1974 (“ERISA”). The contributions to the District Council Benefit Funds are made by each contractor through the purchase of “stamps,” each of which represent the benefits due to a union member for an hour worked. The contractors must complete monthly remittance reports which identify the union members who worked on a jobsite and the hours they worked. The monthly remittance reports are filed with the District Council.

13. From in or about 1996 until in or about 2002, the District Council operated a Stamps Investigation Team, which was responsible for ensuring that contractors purchased the appropriate number of stamps for their union employees. The Stamps Investigation Team was also responsible for collecting payments to the District Council Benefit Funds that were delinquent.

14.            Text Box: 8 At all times relevant to this Indictment, the New York City Locals were run by various union officers. The principal officer of each local is the Business Manager, who is ultimately responsible for the day-to-day operations of the local. Depending upon the size of the local’s jurisdiction, the Business Manager may be assisted by a Business Agent or Agents. Collectively, the Business Manager and Business Agents are responsible for ensuring that construction contractors comply with the terms of the CBAs at jobsites within their respective territories.

15.            The CBAs also required the appointment by the District Council of a shop steward, also called a job steward, to each construction project or jobsite. The shop steward functions as the “eyes and ears” of the District Council on the jobsite, and is authorized to deal with employers on behalf of represented employees at that site concerning such employees' hours, wages, and working conditions. Shop stewards are appointed based on their skills and their position on the out-of-work list, and, according to District Council By-Laws, no steward may be referred to a job from the out-of-work list out of turn. The shop steward is required to complete weekly reports which identify the union members who were employed on the jobsite and the hours that they worked. When the shop steward has completed his/her union work on behalf of the District Council, the shop steward is required

Text Box: 9 to work on the job like any other union member.

Local 530 of the Operative Plasters and Cement Masons Union

16.            At all times relevant to this Indictment, Local 530 of the Operative Plasters and Cement Masons Union (“Local 530") was a labor union that represented workers who performed specialized taping and skimcoating work on construction sites in New York City, Westchester County, Rockland County, and Long Island. Taping and skimcoating is one method by which interior walls constructed of sheetrock are finished. Taping refers to the procedure by which the joints, or holes, between pieces of hanging drywall are sealed using tape. Skimcoating refers to the application of a thin-layer of joint compound to the entirety of the interior wall surface.

17.            Local 530 has entered into CBAs with various construction contractors and associations of construction contractors who operate at jobsites in the five boroughs of New York City, Westchester County, Rockland County, and Long Island. The CBAs govern many aspects of the relationship between individual contractors and individual members of Local 530 who are employed by such contractors at jobsites within Local 530's jurisdiction.

18.            Among other things, the CBAs obligate the contractors to employ only union labor on jobsites, to pay wages according to a pre-defined scale set forth in the CBAs, and to

Text Box: 10 notify Local 530 regarding new projects. Furthermore, the CBAs require the contractors to make contributions to the Welfare Fund, Annuity Fund, and Apprentice Fund (collectively, the “Local 530 Benefit Funds”), in specified amounts for each hour worked by union members employed by the contractors. The Local 530 Benefit Funds are subject to the provisions of title I of ERISA. The contractors must complete monthly remittance reports which identify the union members who worked on a jobsite and the hours they worked. The monthly remittance reports are filed with Local 530.

19.            At all times relevant to this Indictment, Local 530 was run by various union officers. The principal officer of Local 530 is the President and Business Manager (the

“President”), who is ultimately responsible for the day-to-day operations of the local. The President is assisted by Business Agents, as well as by the Vice-President. Collectively, the President, Vice-President, and Business Agents are responsible for ensuring that construction contractors comply with the terms of the CBAs at jobsites within Local 530's jurisdiction.

20.       &