NEW YORK, June 4 (UPI) -- Calling it the most powerful blow yet to organized crime over control of the New York waterfront, prosecutors announced Tuesday that 17 associates of the Gambino crime family were indicted in a series of charges including racketeering and extortion.
"We owe it to the workers that go the waterfront that there's Democracy, that they be paid what they deserve and ensure that the union is honest and represents them and not the Gambino and Genovese crime families," said U.S. Attorney for the Eastern District Alan Vinegrad.
"These charges reflect that these bodies be held account of their life of crime -- today's charges together with the prosecution of the Genovese family leadership presents a historic opportunity to deliver perhaps the most powerful blow yet to organized crime's control of the New York waterfront."
The defendants in the 68-count indictment include officials of the International Longshoremen's Association, Julius R. Nasso, the former business partner of actor Steven Seagal, and Peter Gotti, the brother of imprisoned crime boss John Gotti.
The charges include: racketeering, extortion, wire-fraud, loan sharking, operating illegal gambling businesses, money laundering and witness tampering.
"This case is a major step in our efforts to clean up waterfront and dismantle the Gambino crime family's influence," said New York Attorney General Elliot Spitzer. "Workers who make their living moving commerce through our ports and the labor unions representing them were victimized by the illicit activities of this powerful criminal organization."
The indictment outlines the Gambino family's influence, through extortion and wire fraud, over the International Longshoremen's Association, specifically Local 1814 and Local 1, as well as businesses on the Brooklyn and Staten Island waterfronts.
The indictment alleges that waterfront employees and their relatives, several business owners and an individual in the film industry were extorted, according to Spitzer.
"The individuals charged had a hand in selecting high-level union officials and received kickbacks from the ILA national health plans," said Spitzer. "In addition, the individuals charged operated large scale illegal gambling businesses, and conspired to launder the proceeds of the criminal activity."
The arrests followed a three-year probe initiated by the New York State Organized Crime Task Force, which was conducted through court-authorized wiretaps and eavesdropping devices.
Accused are: Peter Gotti, Anthony Ciccone, Richard V. Gotti, Richard G. Gotti, Primo Cassarino, Jerome Brancato, Peter Piacenti, Frank Scollo, Vincent Nasso, Julius Nasso, Richard Bondi, Salvatore Cannata, Thomas Lisi, Carmine Malara, Anna Eylenkrig, Anthony Pansini and Jerome Orsino Jr.
The indictment alleges that after John A. Gotti was convicted in 1999 of federal racketeering charges, his brother, Peter Gotti, became the acting boss of the Gambino crime family.
According to prosecutors, the Gambino family and the Genovese crime family divided up control of the New York and New Jersey waterfronts, with Brooklyn and Staten Island falling under the Gambino family's control.
Earlier this year, the same investigation led to arrests of Genovese crime family members.
The families are alleged to have coordinated efforts to select ILA officials at the highest levels. Anthony Ciccone, Primo Cassarino, Vincent Nassa and Frank Scollo, together with members of the Genovese family, allegedly intimidated trustees of MILA -- the ILA's health plan -- to award prescription pharmaceutical service contracts to a company partly owned by Vincent Nassa.
The indictment alleges the Gambino and Genovese families then split a kick-back of approximately $400,000 for the contract award.
The indictment also alleges that Anthony Ciccone and several other co-defendants extorted owners of waterfront businesses, including Howland Hook Container Terminal and a trucking company, both in Staten Island as well as businesses in Brooklyn.
The indictment also charges that beginning in September 2000 and continuing through May 2002, Ciccone, Cassarino, V. Nasso and Julius Nasso attempted to extort a well-known movie star and film director.
The defendants attempted to use Ciccone's position as a captain in the Gambino family to pressure the victim either to pay them money or to include J. Nasso in the victim's next film project. In one incident, the victim was directed to pay Ciccone $150,000 for each film he made.
Gotti, pleaded not guilty in federal court in Brooklyn, but was denied bail by Magistrate Judge Cheryl Pollack pending a hearing Friday.
Assistant U.S. Attorney Andrew Genzer had argued that Gotti be denied bail because "he is the chief executive officer of one of the most powerful organized crime families in the country."
