NEW ORLEANS, May 31 -- Federal and state authorities said Tuesday a federal grand jury indicted 17 members of the Marcello, Gambino and Genovese organized crime families on charges of infiltrating the video poker industry in Louisiana.
U.S. Attorney Robert Boitmann, FBI New Orleans Special Agent in Charge Charles Neil Gallagher and Louisiana State Police Superintendent Paul Fontenot said indictments handed down Friday capped a two-and-a- half-year joint investigation.
The investigation centered on the infiltration of Worldwide Gaming of Louisiana Inc. and its subsidiary, Louisiana Route Operators Inc. Worldwide Gaming is the sole distributor in Louisiana for Bally video poker machines.
All 17 defendants were charged with violations of the Racketeer Influenced Corrupt Organizations Act, mail fraud, wire fraud, interstate travel and communications in aid of racketeering, conducting an illegal gambling business and conspiracy. If convicted, they faced terms of up to 230 years in prison and fines totaling millions of dollars.
They were identified as Anthony S. Carollo, Slidell; Frank J. Gagliano Sr., Metairie; Joseph F. Gagliano, Kenner; Steven R. Bolson, Linwood, N.J.; Christopher J. Tanfield, Navarre Beach, Fla.; Aaron Mintz, New Orleans; Cade R. Farber, Metairie; Felix A. Riggio III, Hammond; Joseph Paul Marcello Jr., New Orleans; and Joseph Corozzo of New York, N.Y.
Also, John Gammarano, Brooklyn, N.Y.; Eugene Gilpin, New York, N.Y.; Kenneth A. Jowaiszas, Clifton, N.J.; Paul Morabito, Port Washington, N. Y.; Murton Schlesinger, Metairie; Anthony Joseph Tusa Jr., New Orleans; and Victor Joseph Tusa Sr., New Orleans.
The indictment said that Worldwide Gaming secured the sole Bally distributorship from Bally Gaming Inc. of Las Vegas, with Bally agreeing to furnish Worldwide Gaming with $20 million worth of credit, inventory and cash. Money earned by the video poker business which could have been used to repay Bally allegedly was skimmed, stolen and diverted to the organized crime families.
Investigators said that based on their investigation, it was concluded that Bally gaming was a victim of a fraud scheme in the case and suffered a significant economic loss. Bally Gaming cooperated completely with the FBI in the investigation.
The indictment charged that various members and associates of the Marcello, Gambino and Genovese organized crime families engaged in a pattern of racketeering activity by forming an enterprise with the purpose of profiting from video poker operations while concealing their organized crime connections.
The indictment said the Marcello family infiltrated the legalized gaming industry in Louisiana with the assistance of Gambino 'capo' or captain Joseph 'JoJo' Corozzo; Gambino soldier John 'Johnny G' Gammarano; and Genovese associate Eugene 'Noogie' Gilpin, also known as 'Eugene Gillette.'
Authorities said Gammarano and Corozzo are associates of Gambino family boss John Gotti and that Jowaiszas and Morabito are associates of the Gambino and Genovese families.
The indictment identified Anthony Carollo as the boss of the Marcello family, and Frank Gagliano Sr. as the underboss. Joseph Marcello Jr. is the brother of the late Carlos Marcello and is an associate of Carollo.
Mintz, Farber, Schlesinger, Riggio, Anthony Tusa, Victor Tusa and Joseph Gagliano are all alleged to be associates of the Marcello family. Joseph Gagliano is the son of Marcello underboss Frank Gagliano.
The indictment charged that the Tusas, who are brothers, own and operate the Bayou Casino video poker company. Riggio is alleged to be a former owner and operator of video poker distributors and operates Florida Parish Distributors and Tangi Amusements of Hammond. Louisiana State Police revoked licenses of the two companies in May 1993 and seized 99 of Tangi's video poker machines.
Authorities said Bolson, a New Jersey lawyer, and Tanfield, are both associates of the Gambino and Genovese families. With Aaron Mintz, Bolson and Tanfield established Worldwide Gaming in December 1991.
According to the indictment, Felix Riggio, with the assistance of other organized crime defendants and their associates, bought Louisiana Route Operators' video poker routes on behalf of his organized crime- controlled company, Tangi Amusements.
The Tusa brothers were accused in the indictment of conspiring with the Marcello family to secure video poker machines from Worldwide Gaming, knowing that the company was a front for organized crime.
(Writtenby Gene Mearns in New Orleans; edited by Phil Magers in Dallas)
