Operation Fistful: 11 Alleged Members And Associates Of Genovese Organized Crime Family Charged With Making Millions From Loansharking, Illegal Check Cashing, Gambling And Money Lauderling

The New Jersey Office of the Attorney General released the below on October 21st:

NEWARK – Acting Attorney General John J. Hoffman announced that seven alleged members and associates of the New York-based Genovese organized crime family were arrested today and one more is being sought on an arrest warrant on first-degree racketeering charges for allegedly reaping millions of dollars in criminal profits in New Jersey through loansharking, unlicensed check cashing, gambling and money laundering, including laundering of proceeds from narcotics trafficking. Three other alleged associates were charged by summons today, bringing the total number charged to 11. 
                                  
Acting Attorney General Hoffman made the announcement today in Newark with Director Elie Honig of the Division of Criminal Justice, New Jersey Commissioner Michael Murphy and Executive Director Walter Arsenault of the Waterfront Commission of New York Harbor, and representatives of the other law enforcement agencies that assisted in the operation.

Much of the illicit revenue allegedly was collected and laundered through licensed and unlicensed check-cashing businesses in Newark run by alleged Genovese associate Domenick Pucillo, 56, of Florham Park. Pucillo and the other associates charged today allegedly are part of a New Jersey crew operating under the supervision and control of two alleged “made” members of the Genovese crime family – Charles “Chuckie” Tuzzo, 80, of Bayside, N.Y., a Genovese “capo,” and Vito Alberti, 55, of New Providence, N.J., a Genovese “soldier” – who answer to the Genovese hierarchy in New York. Tuzzo, Alberti and Pucillo were among the seven men who were arrested early this morning.

The charges stem from “Operation Fistful,” an ongoing joint investigation by the New Jersey Division of Criminal Justice and the Waterfront Commission of New York Harbor, conducted with assistance from the New York and Queens County District Attorneys’ Offices and other law enforcement agencies. The eight men targeted for arrest face racketeering and money laundering charges that carry consecutive sentences of 10 to 20 years in prison for each charge, including lengthy periods of parole ineligibility.

The 11 defendants are charged, in varying combinations, with running the following criminal schemes, as more fully outlined below, which generated “tribute” payments up the Genovese chain of command:

1. a massive loansharking operation that yielded about $1.3 million in illegal interest per year;
2. an illicit multi-million dollar offshore sports gambling enterprise;
3. an unlicensed check-cashing business that made $9 million in fees in four years, while enabling customers to launder funds and evade taxes by skirting federal reporting requirements;
4. laundering of $666,000 in drug money via check-cashing businesses owned by Pucillo in Newark and Florida;
5. illegal control and use of a trucking firm with a contract to transport cars from Port Newark;
6. tax fraud and evasion.

“We charge that this crew of the Genovese crime family was up to many of the Mafia’s old tricks in New Jersey, including loansharking and illegal gambling, to the tune of millions of dollars,” said Acting Attorney General Hoffman. “History teaches us that as long as demand exists for illegal loans, illicit gambling, drugs, and other black-market goods and services, organized crime is going to turn a profit by preying on society. Our message to the Mafia is that as long as they do, we’re going to be here to send them to prison.”

“This case illustrates that the Mafia has evolved and learned to exploit sophisticated financial systems to hide and launder the proceeds of traditional street crimes such as loansharking and illegal gambling,” said Director Elie Honig of the Division of Criminal Justice. “Through it all, as always, the Mafia makes its money largely through the ever-present threat of violence. This case demonstrates that, as much as the Mafia may change its criminal tactics, we will work tirelessly to remain one step ahead and root out their corrosive influence.”

“This case presents yet another instance of the Waterfront Commission’s concerted efforts with its law enforcement partners to disrupt the influence of organized crime in the metropolitan area,” said New Jersey Commissioner Michael Murphy of the Waterfront Commission of New York Harbor. “The Genovese Crime Family has historically exerted its influence on the Port of New Jersey. Disruption of its profits from gambling, loansharking and money laundering weaken that family’s grip.”

LOANSHARKING

Pucillo allegedly used his check-cashing businesses for a massive loansharking operation. He runs several businesses, but the main one is Tri-State Check Cashing, Inc., with headquarters at 17 Avenue A in Newark. He allegedly used cash and credit lines extended to his business to loan money “on the street” at usurious rates. He made loans at one to three “points.” A point equals 1% interest, due weekly, so one point equates to 52% annual interest, two points to 104% annual interest, and three points to 156% annual interest. New Jersey law defines criminal usury as loaning money to an individual at an annual interest rate exceeding 30%, and makes it a second-degree crime if the rate exceeds 50% per year.

Over a two-year period, Pucillo had approximately $3 million in usurious loans on the street and collected approximately $1.3 million in interest per year. It is alleged that Genovese associate Robert “Bobby Spags” Spagnola, 67, of Morganville, N.J., partnered with Pucillo in the loansharking business and received a commission of one point on each loan he secured for Pucillo. In addition, Pucillo allegedly shared the loansharking proceeds up the Genovese chain of command to Alberti and Tuzzo.

Victims were required to pay interest on a weekly basis. The scheme was designed so that, when the victims made loan payments by check, it appeared that they were cashing checks in the ordinary course of Pucillo’s check-cashing business. When they took out loans, victims were required to sign partially completed checks, which Pucillo and his co-defendants could complete and cash through the check-cashing business to collect weekly interest or payments of principal. Victims also could pay in cash.

Defendant Flor Miranda, 40, of Newark, worked as office manager for Pucillo’s check-cashing operation. She allegedly collected loansharking payments and helped Pucillo keep extensive records of the loansharking and money laundering operations run out of his check-cashing businesses.

SPORTS GAMBLING

Vincent P. Coppola, 37, of Union, N.J., son of imprisoned Genovese capo Michael Coppola, allegedly was part of a network of Genovese associates who ran a multi-million dollar illegal sports gambling enterprise in New Jersey that utilized an off-shore “wire room” in Costa Rica to process bets. Coppola allegedly was an “agent” who managed sub-agents or package holders, each of whom had a “package” of bettors under him. He allegedly supervised sub-agents John W. Trainor, 42, of Brick, N.J., and Jerry J. Albanese, 47, of Scotch Plains. Agents decide which bettors can open accounts and gamble using the enterprise’s website and toll-free phone number. They also dictate how much a bettor can gamble per game and per week, and monitor the action and balances of the packages they oversee. Eventually, Coppola allegedly gave Trainor and Albanese more complete control of the bettors in their packages. Coppola allegedly had four packages under him, including those of Trainor and Albanese. In a single year, in 2011, Coppola’s packages allegedly handled more than $1.7 million in bets, and Coppola, Trainor, Albanese and the Genovese crime family – through Alberti and Tuzzo – allegedly made more than $400,000 in profits.

UNLICENSED CHECK-CASHING BUSINESS

In addition to Tri-State Check Cashing and his other licensed check-cashing businesses, Pucillo allegedly financed an unlicensed, illegal check-cashing operation with partners and Genovese associates Abel J. Rodrigues, 52, of Bridgewater, N.J., and Manuel Rodriguez, 49, of Chatham, N.J. This scheme operated out of Portucale Restaurant & Bar at 129 Elm Street in Newark, also known as Viriato Corp. – which is owned by Abel Rodrigues – under the guise that Rodrigues was legally allowed to cash checks as Pucillo’s agent. In reality, this arrangement is illegal, and the defendants allegedly used it to enable clients to launder money and evade taxes. It is alleged that over a four-year period they illegally cashed over $400 million in checks through Portucale Restaurant and collected over $9 million in fees.

Many customers cashed checks at Portucale Restaurant to launder money, hide income or obtain cash for “under-the-table” payrolls because Abel Rodrigues allegedly did not ask for any identification and would not file proper “currency transaction reports,” or CTRs, for any check or combination of checks exceeding $10,000, as required by federal law.

Tri-State Check Cashing provided the cash disbursed at Portucale Restaurant, but instead of processing and reporting the individual checks that were cashed, Tri-State would receive checks from Viriato Corp. for sums in the hundreds of thousands of dollars, which bundled together the amounts of the checks cashed at Portucale Restaurant. Tri-State would then file CTRs only for the checks from Viriato Corp.

Jennifer Mann, 30, of Bayonne, was employed by Pucillo as the compliance officer for Tri-State. At Pucillo’s direction, she allegedly issued hundreds of false CTRs to conceal tax evasion and money laundering at Portucale Restaurant.

In return for cashing checks for over $10,000 without scrutiny, customers paid fees of up to 3% percent per check, which exceeds the limit of 2.21% permitted under New Jersey law. Abel Rodrigues allegedly received 1% on each check, and the remainder went to Pucillo. It is alleged that Pucillo in turn provided one-quarter of his fees to Manuel Rodriguez, who shared a portion of his fees up the chain to Alberti, Tuzzo and the Genovese crime family.

DRUG MONEY

In January 2012, Pucillo acquired a check-cashing business in Hialeah, Florida, called I&T Financial Services. It is alleged that he subsequently entered into an agreement to launder and transfer drug money from New York and New Jersey to Florida. The drug traffickers allegedly would deliver cash to Flor Miranda at Tri-State Check Cashing in Newark. The money then was wired under the fictitious company name “Gold Shiny” to Florida, where it was laundered through I&T Financial’s business accounts and was received by the client, whose identity remained concealed. Pucillo allegedly laundered and transferred $666,000 in this manner, collecting $22,500 in fees on the transactions.

TRUCKING COMPANY

It is alleged that the Genovese crime family, through members and associates including Tuzzo, Alberti, Pucillo and Trainor, illicitly took control of a company called GTS Auto Carriers, siphoned money from it, and used it to commit other crimes including check forgery and tax evasion. Trainor owned and operated GTS, which transports cars from Port Newark to dealerships throughout New Jersey under a lucrative contract with Nissan. After Trainor obtained the contract, Alberti required GTS to lease trucks to transport the cars from Alberti for over $300,000 per year. Alberti created a company called AMJ Transport solely to lease trucks to GTS.

Alberti also allegedly required GTS to carry Coppola and another Genovese crime family associate on the GTS payroll even though neither actually worked for GTS. In addition, Trainor allegedly had checks issued from a GTS business account to fictitious persons to conceal the fact that he was siphoning money from GTS for his personal use and to pay Alberti and other Genovese crime family members and associates. In five months, Trainor allegedly cashed GTS checks totaling over $100,000 at Pucillo’s check-cashing business, including several on which Trainor forged the signature of the person authorized to sign checks for the GTS account.

TAX FRAUD AND EVASION

It is alleged that, in conducting their criminal schemes, Alberti, Trainor, Rodriguez and Rodrigues – through Pucillo’s check-cashing businesses and other means – concealed their income and either failed to file tax returns or filed fraudulent tax returns which did not account for their criminal earnings.

The detectives who conducted Operation Fistful for the Division of Criminal Justice Gangs & Organized Crime Bureau are Lt. Brian Bruton, Detective Mario Estrada, Detective Patrick Sole and Detective Matthew Tully, under the supervision of Deputy Chief of Detectives Christopher Donohue. The attorneys who conducted the investigation are Deputy Attorney General Lauren Scarpa Yfantis, who is Chief of the Gangs & Organized Crime Bureau, Deputy Attorney General Annmarie Taggart, who is Deputy Bureau Chief, and Deputy Attorneys General Jacqueline Weyand, Ray Mateo and Vincent Militello. Acting Attorney General Hoffman thanked Director Honig, Deputy Division Director Christopher Romanyshyn and Chief of Detectives Paul Morris for their leadership in the operation.

Acting Attorney General Hoffman thanked the Waterfront Commission of New York Harbor for partnering with the Attorney General’s Office in the investigation. The following individuals conducted the investigation for the Waterfront Commission: Capt. Margaret Baldinger, Sgt. George Falvo, Sgt. Kristen Brylinski, Sgt. Michelle Turner, Detective Joseph Longo, Detective Salvatore Arrigo, Detective Andrew Varga, Detective Matthew Moroney, Detective Frank Albanese, Detective Marc Valentin, Detective Wojciech Stobinski, Detective Vincent King, Detective Fauna Mitchell-Foster, Detective Shanti Kurschner and Detective Michael Petrillo.

Acting Attorney General Hoffman also thanked the following agencies for their valuable assistance:

1. New York County District Attorney's Office
2. Queens County District Attorney's Office
3. United States Department of Homeland Security
4. Florida Department of Financial Services
5. New York City Police Department
6. United States Internal Revenue Service
7. New Jersey Department of Taxation
8. New Jersey Department of Banking and Insurance
9. New Jersey State Police
10. El Dorado Task Force.

These eight defendants were arrested today or are being sought on arrest warrants charging the following crimes. Those arrested were lodged in jail with bail set at $400,000 for each. (* indicates the defendant remains a fugitive)

1. Charles “Chuckie” Tuzzo. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Criminal Usury (2nd degree), Promoting Gambling (3rd degree).
2. Vito Alberti. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Criminal Usury (2nd degree), Promoting Gambling (3rd degree), Filing a Fraudulent Tax Return (3rd degree).
3. Domenick Pucillo. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Criminal Usury (2nd degree), Possession of Usurious Loan Records (3rd degree), Operating an Unlicensed Check-Cashing Facility (3rd degree).
4. Robert “Bobby Spags” Spagnola. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Criminal Usury (2nd degree), Possession of Usurious Loan Records (3rd degree).
5. Manuel Rodriguez. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Operating an Unlicensed Check-Cashing Facility (3rd degree), Filing a Fraudulent Tax Return (3rd degree), Failure to File a Tax Return (3rd degree).
6. *Vincent P. Coppola. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Promoting Gambling (3rd degree).
7. Abel J. Rodrigues. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Operating an Unlicensed Check-Cashing Facility (3rd degree), Filing a Fraudulent Tax Return (3rd degree).
8. John W. Trainor. Racketeering (1st degree), Money Laundering (1st degree), Conspiracy (1st degree), Promoting Gambling (3rd degree), Forgery (3rd degree), Failure to File a Tax Return (3rd degree).

These three defendants were charged today by summons with the following crimes:

1. Jerry J. Albanese. Money Laundering (1st degree), Conspiracy (1st degree), Promoting Gambling (3rd degree).
2. Flor Miranda. Money Laundering (1st degree), Conspiracy (1st degree), Criminal Usury (2nd degree), Possession of Usurious Loan Records (3rd degree).
3. Jennifer Mann. Money Laundering (1st degree), Conspiracy (1st degree), Operating an Unlicensed Check-Cashing Facility (3rd degree), Issuing a False Financial Statement (3rd degree), Forgery (3rd degree).

First-degree racketeering carries a sentence of 10 to 20 years in state prison – 85 percent of which must be served without parole under the No Early Release Act – and a fine of up to $200,000. First-degree money laundering carries a sentence of 10 to 20 years in prison – including a mandatory period of parole ineligibility equal to one-third to one-half of the sentence imposed – with the sentence to run consecutive to the sentences for other charges. First-degree money laundering carries an enhanced fine of up to $500,000. Second-degree crimes carry a sentence of five to 10 years in state prison and a fine of up to $150,000, while third-degree crimes carry a sentence of three to five years in state prison and a fine of up to $15,000, or an enhanced fine of up to $35,000 for the crime of promoting gambling.

The charges are merely accusations and the defendants are presumed innocent until proven guilty. Because they are indictable offenses, the charges will be presented to a state grand jury for potential indictment.