30-year term for Scarfo in fraud case
Posted: Tuesday, July 28, 2015, 3:11 PM
Reputed mobster Nicodemo Scarfo Jr. - son of Philadelphia's former mob boss "Little Nicky" - is heading back to prison, this time for 30 years, following in his father's footsteps.
On Tuesday, U.S. District Judge Robert Kugler noted that Scarfo's conviction, for racketeering and conspiracy, was his fifth, and the second in the federal system, which warranted a lengthy term. Scarfo was convicted last summer of committing bank fraud and related offenses. Three others convicted with him also face sentencing this week.
"They stole every dollar they could get their hands on," Kugler said. "It got so bad that they had to take a loan out to pay employees."
In addition to three decades behind bars, Scarfo was ordered to pay more than $14 million in restitution for money that Assistant U.S. Attorney Steven D'Aguanno said was stolen from the Texas-based First Plus Financial.
Scarfo, 50, of Ventnor and the others were convicted after a six-month trial for the fraud that authorities said they operated from South Jersey.
On Tuesday, Scarfo's attorney, Mike Riley, suggested the bank scam did not result in permanent damage to victims. The judge disputed that.
Kugler said stockholders lost out because the thefts, with Scarfo controlling financial matters with an "iron fist," forced the company into bankruptcy.
Asked whether he wanted to address the court, Scarfo responded, "No thank you, your honor."
Apparently unfazed by the long sentence, Scarfo smiled as he was escorted out of the courtroom by federal marshals. There were no family members there to speak on his behalf. Officials said he has a 7-year-old son and a 14-year-old daughter.
D'Aguanno argued for the long sentence to serve as a deterrent to others, and to stop Scarfo who he said has spent most of his adult life in jail, on probation, or committing crime.
In 1988, Scarfo served time for assault, in 1993 for racketeering, in 1996 for illegal possession of a knife, and in 2002 for bookmaking.
While on supervised release, Scarfo began the First Plus Financial scam, collecting $33,000 plus expenses a month as a consultant, D'Aguanno said. There was no indication, D'Aguanno said, that Scarfo did any legitimate work at the firm.
D'Aguanno told Kugler that Scarfo was trained as a mob man by his father, Nicodemo "Little Nicky" Scarfo Sr., who is serving a 55-year sentence on similar charges.
In a battle to control the Philadelphia mob after Scarfo Sr. was sent to prison, his son was shot several times. Joey Merlino took control, and Scarfo later started working with the Lucchese crime family in South Jersey, D'Aguanno said.
On Wednesday, codefendant Salvatore Pelullo is scheduled for sentencing for his part in the First Plus Financial scheme. Brothers John Maxwell, First Plus Financial CEO, and William Maxwell, an attorney for the company, are scheduled for sentencing on Thursday.
Read more at
http://www.philly.com/philly/news/201507...Av2cpyPcMDLW.99
