Mob (Scarfo) related case heads to trial in Camden

http://articles.philly.com/2013-10-28/ne...tplus-financial

Mob-related case heads to trial in Camden

By Julia Terruso, Inquirer Staff Writer
Posted: October 28, 2013


Five years after the FBI raided the offices and homes of lawyers and reputed mobsters, looking for evidence of a massive business-looting operation that a federal prosecutor said gave new meaning to the term "corporate takeover," the case is headed to trial.

Nicodemo Scarfo, son of infamous jailed Philadelphia mob boss "Little Nicky" Scarfo, is charged along with alleged mob associate Salvatore Pelullo in a 25-count, 107-page indictment peppered with lines from wiretapped conversations that sound like they were ripped from a mob movie script.

On Monday, potential jurors will arrive at the federal courthouse in Camden to fill out questionnaires - the first step of jury selection, expected to take two to three weeks. The trial will likely last six months.

Scarfo, 47, has been on the scene for years, known as "Mr. MacIntosh" and "Mr. Apple" for his tech-savvy cons. In May 2010, he was sentenced to 33 months in prison for running an illegal sports-betting operation.

Pelullo, 45, is an Elkins Park businessman with alleged ties to Scarfo's crime family. Prosecutors say Scarfo and Pelullo targeted the Texas financial-services company FirstPlus Financial for takeover, dismantled its board of directors, and replaced it with pawns who ran a racketeering scheme that defrauded shareholders of more than $12 million from June 2007 to May 2008.

Four lawyers and a former CEO of FirstPlus, John Maxwell, are also charged with mail and wire fraud and other charges related to the operation of the company.

The government will have to prove Scarfo and Pelullo were behind the scam, though their names appear nowhere in business documents. According to the indictment, wiretapped conversations and alias companies associated with the takeover provide evidence of their involvement.

For the lawyers on trial, legal arguments become a little more complex. New York City attorneys Gary McCarthy and David Adler, Texas attorney William Maxwell, and Scarfo's longtime criminal defense attorney, Donald Manno, will aim to prove they were working in a legal capacity - representing mobsters - and not working with them.

Some of the lawyers charged had requested separate trials, concerned that being listed on the same defendant sheet as an organized-crime figure would deny them due process.

Manno, who is representing himself, argued in legal motions for severance based partly on the fact that his main defense is inadmissable. Manno has represented Scarfo for more than a decade and was continuing in that capacity, he says. But to detail their relationship would reveal Scarfo's record to the jury.

The indictment charges that in April 2007, Scarfo and Pelullo devised a plan to take over FirstPlus and then acquired grossly overvalued straw companies to loot hundreds of thousands of dollars from FirstPlus and its subsidiaries through fraudulent consulting agreements. According to the indictment, they used the stolen money to buy jewelry, luxury cars, a yacht, and a plane.

The evidence includes 8,500 recorded conversations, one million hard-copy documents, and tens of millions of electronic files, according to court papers.

The wiretaps, some of which are quoted in the indictment, will likely make up the crux of the government's case.

In one conversation, Pelullo says, "When I get down there, every single check card that's in the company, I'm going to burn myself."

Four defendants have already pleaded guilty.

Cory Leshner, 30, a West Reading lawyer, pleaded guilty in October and is expected to be a cooperating witness in the case.

Scarfo's cousin John Parisi and Scarfo's wife, Lisa Marie Scarfo, pleaded guilty in September. Howard Drossner pleaded guilty and admitted that at the direction of Pelullo, he created false tax returns to help Lisa Marie Scarfo qualify for a mortgage.

From his jail cell in Philadelphia, Pelullo has been blogging and writing letters to Judge Robert B. Kugler, who will hear the case.

In a recent, and somewhat rambling letter, Pelullo lamented what he's missed while in prison, paraphrases Dylan Thomas, saying, "I will not go quietly into the night," and apologizes for previous behavior in court.

"If I seem brazen or rough around the edges that is who I am," he says. "Is that a crime?"

Scarfo and Pelullo also face charges of possession of an arsenal of weapons.

In May 2008, the FBI found three handguns, two rifles, a shotgun, and more than 2,500 rounds of ammunition on Scarfo's yacht, called Priceless. Both men face 30 years to life.

Thanks for posting, Kevlar. Both here and on RD. Much appreciated.

I thought you were better than that, GC.

Posting someone's real name just ain't right. It's happened to me in the past, and trust me, when it does you find yourself mentally going through every post you ever made to make sure that you didn't post "too much" about anyone.

Now if you're on a board about sports or movies or something mundane, that's one thing. But we discuss some pretty serious people here.

Bottom line: If you "out" her you might embarrass her. But at the end of the day, she has a place to go. If someone outs you, are you gonna be able to protect yourself?

When Natalie Merlino started making threats, you literally shit your pants in that thread kissing her ass and asking everyone to respect her privacy. So I can't imagine the anxiety attack you'd have if someone posted your real name here. So in all fairness, I think you should at least delete her last name (if not the whole thing)

Just something to think about .

There you happy now PB?

And believe me if your pal knew my name she would of posted it.

Wait someone can find my true identity on the internet?

Very .

And no hard feelings. I like you, GC .

The difference is that Natalie had a legit beef. I shouldn't of posted her facebook photo. She never did anything to me so i really did feel bad for her.

But your pal from day 1 has had a real hardon for me and sending me threatening PM's warning me not to fuck with her. She contributes nothing and like a snake in the grass pops up when she thinks she can score a few points. Well if thats how she wants it then thats what she'll get. I don't start shit with anyone that didn't start it first, i'm probably the most easy going person on the board. Her shit has gotten old.

Except you neglect to mention, that this is NOT your first handle on here. You were LeroyJones and then Uncle Fester, and under those handles were PMing me. After I told you off for the last time, you decided to reinvent yourself yet again, using my husband's name as your current handle.
I've contributed plenty to this board.

And you're not even man enough to carry your current name, as you folded like the spineless coward I knew you were.

Why don't you tell them your the one who told me to join this board when you got tossed off of real deal. You thought it was pretty funny.

Tell them about slick and how you got him banned. Well everyone knows it was your fault now and nobody that knows you can stand you princess.

Whats wrong princess the guys on the new board not paying enough attention to your ass. You PM everyone here telling them to join another forum yet here you are trolling like the lowlife you are.


Post some more pictures Rachel. lol!

I had no clue how to get in touch with you after RD. If anyone searches thru your first handle on here LeroyJones, they'll see the exchange between you and me and how surprised I was to see you here. Fail! Next.

Oh and Carmela must be sicilian for Tag...what a joke you are. Everyone knew who i was you idiot. I post the exact same shit on both the forums.

Tell us another story about sicily Rachel.

Your so full of shit it's funny. Keep trying Rachel.

Slick sends his love. lol

That's why when I asked, "Kev is that you?" You said,

You know all my stories and pictures b/c you've stalked my fb page, no need to repeat them.

Look princess i never dogged you on this forum, your the one who started the shit. You tell people i'm obsessed with you...lol! what a joke. I felt bad you got banned but i can now see why everyone dislikes you so much. And your a rat on top of everything else.

Goodbye Princess.

Take this stuff off the boards!

I'm a rat? Far as I can tell, you're the one dropping guys names in here.
And I never even ratted on you about posting my name in here. I knew you'd eventually fold and take it off yourself. Game. Set. Match.

Done.

Facebook? Sorry sweetie. I didn't know shit about you until the other day when someone told me who you were. Someone you think is your pal but sold you out.

I'll say it again. TAKE THIS STUFF OFF THE BOARDS!

Take care Rachel. I honestly had nothing against you until recently. But you were too stupid to know it.

Sorry SC....i'm done. My apologies to you and the others here for having to read this shit.

Carmella don't tell me your related to frank?

So everyone on these boards knows each other in real life and is Facebook buddies??....well boy am I missing out...

Not me. I'm probably one of the few people alive that doesn't have a facebook page. Never did and at this point no plans to have one in the future.

It's ok giancArlo when I was a new poster here I was on time out for a week for simply standing up for myself while Carmella relentlessly flamed me. Seems to be her thing

actually my real nickname is cheech and i have already said too much...wish i could change my handle

Oh well...so much for this thread.

But the point of the original post was that Scarfo will be in court soon and i think he's going to go down hard. I forgot about the weapon charges...those alone are bad enough to lock him up. But with his priors i bet he'll get hammered at sentencing. And after this case he has the other one coming up for the charges with the other guys from the Lucchese's. I would bet he's going down on that one too. If i was him i'd look into a plea deal, only problem is that one is a fed case and i think the other is a state case so i'm not sure if a joint plea deal is possible.

he gets life is my opinion, if not life big numbers

last name is Scarfo...and I think that had it on wire he was kicking up to Vic

Think hes gonna flip or is he gonna stay quiet like daddy?

Don't kid yourself, GC. If Scarfo was willing to cooperate (and I'm not implying that he would be), the Feds would bully the State into dropping the charges in a heartbeat. It happens all the time when they flip Federal rats. There's almost always a State charge or two to be worked into the deal.

No doubt if he flipped they would give him a real sweet deal. But i only meant a normal plea bargain. Save them the time and expense of a trial and MAYBE they'll let the sentences run concurrent instead of consecutive.

He's screwed...really no way short of flipping (which i doubt he'll ever do) he's going to get off lightly on these cases....not with his priors.

He should just plead guilty, his chances of beating the case seem pretty slim, i know i would never want me future decided by a jury "of my peers", not sure what the sentencing guidelines are but i gotta think time wise he would be looking at a considerable amount less then if he was found guilty.

If I remember correctly he'll max out at around twenty years, so he'll be a little old man when he comes home. He's fucked.

If he is lucky he might get some father-son bonding time, you know for all those years they have missed.

I'm completely lost.

Well then you should log on more often!

Good to see you back, 22 .

20 years in a cage....no way whatever money he made is worth that kind of time. And even worse is they took it all back from him. As far as i know theres no pot of gold waiting for him when he's released. Pretty sure they seized everything from him.

I hear you there PizzaBoy,this usually happens to me during football season.Looking forward to reading about the banter during the Scarfo-Borgesi trial.

My bad I meant Ligambi-Borgesi trial.

I dont really expect there to be a lot different from the first trial, except theres at least one new witness, a former bonnano associate.

http://www.fivefamiliesnyc.com/2013/10/bonanno-associate-set-to-testify-at.html?m=1

what the fuck is nicky scarfo jr. doing talking on phones?

the apple doesn't fall far from the tree

mafia members are unemployed so driving to a face to face meet should be easy

Your right Dellacroce,I'm just curious to see what a hard-on the feds have for Borgesi.I mean every hour they keep him behind bars is a victory for them.

ya well Borgesi isnt doing anything to diminish that hard on, i mean calling an assistant US attorney a "fucking punk" in open court, the guy brings it on himself. I do feel kinda bad for him though, being locked up for years and right before your about to get out you get indicted again.

^^^^^^^^^

you feel bad for an arch criminal whose murdered and scammed his way through life

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

first of all "arch criminal", the guys a loan shark not keyser soze. second, the guy did his time that he was sentenced to plus a couple of years and he still hasnt been allowed to go home once. Whats right is right.

gas ain't cheap these days

Nah he is an "arch criminal" and a murderer. Not keyser Soze but borderline mass murdering bottom feeder.

Yes the guy is a criminal(and if you wanna add arch in front of it, fine) and a scumbag and bottom feeder etc etc. dont blow what i said out of proportion, im not praising the guy, i could really care less. All im saying is, if you do the time your sentenced to you should be allowed to go home and see your family, shouldve at least been granted bail.

I hear you guys about Borgesi,I remember after the last hung jury his mom was lashing out at reporters saying do you know what its like to have a son that she thought was basically getting screwed.How about the mothers of the 9 mob hits he's claimed to be a part of.At least Georgie is still alive.

always said Georgie Boy got a raw deal, un american you ask me

Make that 11 hits that Bent Finger said Borgesi claimed to have been involved in.

http://articles.philly.com/2012-08-17/ne...big-lou-fazzini

I don't believe Borgesi has near that many hits, the numbers dont add up.

I doubt that number is accurate too, but thats what Bent Finger claimed Borgesi said. He might of made the whole thing up....who knows.

the best is the clip of Freckles getting arrested and Sctratweiser asking if he wanted to talk and Georgie goes Not right now

NJ trial set in unusual white-collar mob case
By GEOFF MULVIHILL, Associated Press
January 4, 2014

CAMDEN, N.J. (AP) — In many ways, it's your run-of-the-mill white-collar case. But this one has a mob twist.

The son of a reputed Philadelphia-area Mafia boss and six others are scheduled to be tried starting this week on charges including the usual stuff — racketeering. But the government says Nicodemo S. Scarfo and his co-defendants, used threats of harm to take over the board of FirstPlus Financial Group, an Irving, Texas-based publicly traded mortgage company, and then had the company buy shell companies they owned so they could take out the assets. The company is now defunct.

In court filings, the government said the conspirators plundered $12 million in less than a year, buying homes, weapons, ammunition, a plane, luxury cars, jewelry and an $850,000 yacht they named "Priceless."

Michael Riley, the lawyer for Scarfo, who is the son of imprisoned Philadelphia and southern New Jersey crime family boss Nicodemo D. "Little Nicky" Scarfo, said part of his argument is that it's not a mob case at all.

"What spices it up is the organized crime allegations," Riley said. "We can't defend the case and say Nick Scarfo is not and has never been associated with the mob."

But he said his client had scant involvement with the business deals at the heart of the case.

Government lawyers declined to give interviews. But in the indictment, they do draw a connection with the mob. They say money raised in the crooked business deal was intended to pay Scarfo's dues as a made member of the Lucchese crime family, with whom his father — who was listed as an unindicted coconspirator — allegedly formed an alliance decades ago.

Riley says he'll try to poke holes in the theory that the money was going to the New York-based Lucchese operation. "Not a single dollar is unaccounted for," he said.

Thirteen people were indicted in October 2011. Six, including Scarfo's wife, who admitted a role in mortgage fraud, have since pleaded guilty.

One who pleaded guilty, Cory Leshner, is expected to testify during the trial, set to begin Wednesday in U.S. District Court in Camden and last three months or so. The jury was selected last year.

The defendants who remain besides Scarfo include Salvatore Pelullo, a reputed mob associate who has a previous conviction for bank fraud and whom authorities said ran the business takeover.

Others are brothers John and William Maxwell, who were executives in FirstPlus, and two lawyers accused of helping the alleged scheme. All have pleaded not guilty.

Michael Huff, who is representing William Maxwell, said he did not do anything wrong as special counsel for the board of directors that took over the firm.

"He was doing his job," Huff said. "He was hired by the corporation to help with any legal matters that might come up with the transition from one board of directors to another board of directors."

A lawyer for Pelullo did not return a call. The lawyer for John Maxwell, who served as FirstPlus CEO and President, declined to comment.

[PDF]
Scarfo indictment - U.S. Department of Justice

↓http://www.westport-news.com/news/us/ar ... 113824.php

NJ trial set in unusual white-collar mob case
The son of a reputed Philadelphia-area Mafia boss and six others are scheduled to be tried starting this week on charges including the usual stuff â€" racketeering. [...] the government says Nicodemo S. Scarfo and his co-defendants, used threats of harm to take over the board of FirstPlus Financial Group, an Irving, Texas-based publicly traded mortgage company, and then had the company buy shell companies they owned so they could take out the assets. In court filings, the government said the conspirators plundered $12 million in less than a year, buying homes, weapons, ammunition, a plane, luxury cars, jewelry and an $850,000 yacht they named "Priceless." Riley says he'll try to poke holes in the theory that the money was going to the New York-based Lucchese operation. The defendants who remain besides Scarfo include Salvatore Pelullo, a reputed mob associate who has a previous conviction for bank fraud and whom authorities said ran the business takeover.

Scarfo has a great lawyer, he has saved my ass on a couple of occasions.

Rocco Cippatone Jr is worth the bread in south jersey or philly or vs the Feds, Jeff Zucker is also good if you can cover it

Scarfo racketeering trial begins in Camden
Julia Terruso, Inquirer Staff Writer
Wednesday, January 8, 2014-

CAMDEN - A federal prosecutor Wednesday outlined the case against reputed mobsters charged with a massive racketeering scheme he claims looted $12 million from a Texas-based Financial Company.

"This is a case about lying, cheating and stealing," said Assistant Attorney General Howard Wiener at openings Wednesday. "They lined their pockets with the millions they stole and cost shareholders millions."

Nicodemo Scarfo, 45, son of infamous jailed Philadelphia mob boss 'Little Nicky' Scarfo, is charged along with alleged mob associate Salvatore Pelullo in a 25-count indictment. Also charged are four attorneys who worked with the men and a former CEO of the publicly traded mortgage company, FirstPlus Financial.

Om Wednesday, Wiener described to jurors how through fraudulent transactions and layers of bank accounts and shell companies the men made off with millions in less than a year, beginning in the Spring of 2007, then used the money to purchase luxury cars, mini mansions, a yacht and in Scarfo's case, to pay owed organized crime debts.

Scarfo's attorney, Michael Riley, said in his opening that not only was the business legitimate but any mention of the mafia a misleading strategy to keep the case interesting and pre-convict his client. He said no money trail in the case leads to the mob.

"No one's gonna wake up with a horse in their bed, no one's going to go sleep with the fishes," Riley said of evidence jurors can expect. "This is not an organized crime case and to suggest it, is unfair. It's a distraction and it's offered to cloud your view."

The trial before a jury of 19, selected last year, some as early as October, is expected to last for at least three months.

In addition to Pelullo and Scarfo, attorneys Gary McCarty, David Adler and Donald Manno and brothers John and William Maxwell, executives with FirstPlus, are also on trial. Manno, a Cherry Hill attorney who has long represented Scarfo, is representing himself.

Prosecutors argue Scarfo and Pelullo controlled the scheme from the top, selling straw companies for millions and directing the defendants to knowingly cover up the fraud and launder the money. Manno is charged with having knowledge of the plan and helping Scarfo fraudulently secure a $500,000 mortgage from St. Edmond's Federal Savings Bank to purchase his Egg Harbor Township house.

The defense argues the company was ill-fated from the start having gone bankrupt in 2006 but that the investors and consultants, including Pelullo and Scarfo, were turning things around.

In court on Wednesday Pelullo's attorney, Troy Archie described Pelullo, 47, as a misunderstood, successful but brassy businessman who had partnered with Scarfo in the past running a company that sold vacation packages and a Philadelphia-based mortgage company, GlobalNet.

Archie said his client's past as a high school dropout with two fraud felonies, coupled with his irreverent and often "maniacal" attitude made him an easy target for FBI investigators. Archie even played a phone recording in which Pelullo is yelling and using profanity discussing a board of directors' vote in order to introduce jurors to his personality.

"This case is the government's belief that where there was mafia smoke there must be mafia fire. And now they have to masquerade that smoke as fire," Archie said.

For a case described as having mafia ties the evidence will be pretty dry - bank records, securities filings and money trails.

Jurors will also hear hours of recorded phone conversations - there were more than 8,000 wiretaps issued during the course of the investigation. They'll need to determine whether those exchanges, some of which are extremely crude, prove illegal activity or just demonstrate tough guy talk.

In one excerpt Wiener shared with the jury, Pelullo says of a dissenting board member, "if you ever rat, your wives will be (expletive) and your kids will be sold off as prostitutes."

The most critical testimony will likely come from Cory Leshner, 30, a West Reading lawyer and one of six people indicted who pleaded guilty.

Scarfo's cousin John Parisi and Scarfo's wife, Lisa Marie Scarfo, pleaded guilty in September. Howard Drossner pleaded guilty and admitted that at the direction of Pelullo, he created false tax returns to help Lisa Marie Scarfo qualify for a mortgage.

Prosecutors have also pointed to evidence Pelullo visited and communicated with Scarfo Sr., as evidence of direct mob involvement.

An interesting legal question arose before the trial started when Pelullo's attorney asked that reporter George Anastasia, present in courtroom to cover the case for the website BigTrial.net be barred from openings and testimony because he is on the witness list.

Anastasia, who covered the mob extensively for the Inquirer and has also written about the FirstPlus case, said he has no idea what testimony he would be asked to provide.

Anastasia said he's considering filing a complaint should the motion be granted since prohibiting him from the courtroom would also prevent him from doing his job writing about the case.

Opening arguments continue Thursday in Judge Robert B. Kugler's courtroom for the remaining defendants charged. Only Pelullo and Scarfo are in custody and both face 30 years to life in prison. In addition to the racketeering charge, Scarfo faces weapon charges. In 2008 the FBI found three handguns, two rifles, a shotgun, and more than 2,500 rounds of ammunition on Scarfo's yacht, called Priceless.

↓http://www.philly.com/philly/news/new_j ... QltVAFl.99

Scarfo racketeering trial begins in Camden
CAMDEN - A federal prosecutor on Wednesday outlined the case against reputed mobsters charged with a massive racketeering scheme he claims looted $12 million from a Texas-based financial company.

Haha this pellulo guy is a handful

"Wait someone can find my true identity on the internet?"

Please tell me that you're kidding...

Just in case you're not: Yes, depending on how careful you are and how sophisticated the snoopers are. Do yourself a favor and research the term 'Doxing' to start. To give you a clue: 'dox' comes from the abbreviation 'docs'. If you're not careful, more than you're identity can be found. If you are careful, you may be pretty safe.

Haha ya this guy is something else, he even has his own blog site-

http://salvatorepelullo.blogspot.com/?m=1

GreAt find should be amusing I will check it out while I'm supposed to be working tomorrow