Copyright 1992 Crain Communications, Inc.  
Pensions & Investments
September 28, 1992
SECTION: Pg. 29

LENGTH: 265 words

HEADLINE: Pension fraud suspected in N.Y.C. case

BYLINE: By Anne Schwimmer

DATELINE: NEW YORK

BODY:
The U.S. Attorney's office has confiscated property belonging to the president of the $ 200 million Mason Tenders District Council Trust Funds and two other men who had dealings with the pension fund.

The three -- Frank Lupo, Ron Miceli and Charles Trentacosta -- are alleged to have defrauded the fund of almost $ 20 million through improper real estate dealings.

The Department of Labor, which cooperated with the U.S. attorney, hopes the union plan will be restituted by the property, the value of which has not been estimated, said John Wehrum, New York area director of the department's Pension and Welfare Benefits Administration.

The property includes the bank accounts and a few pieces of real estate owned by Mr. Lupo, the fund president. According to the indictment, he caused the pension plan to pay $ 24 million for a Manhattan commercial building that really was worth $ 5 million.

The plan bought the building from Mr. Miceli and then paid an additional $ 4.5 million for renovations on it, the indictment said.

Mr. Miceli had purchased the building for $ 7.45 million just 10 months before the sale, according to the indictment.

Mr. Trentacosta and Mr. Miceli -- both said to be members of New York's Genovese crime family -- also are alleged to have sold other buildings in Brooklyn to the plan for ''grossly inflated prices,'' the indictment said.

Also confiscated were several properties and stakes in businesses belonging to Mr. Miceli and stakes in two businesses belonging to Mr. Trentacosta.

Lawyers for the three men could not be reached for comment.