R
reallyveryradical
Guest
Can We Stop The Demobrocrats
WASHINGTON-Organized labor is enormously influential in the Democratic
primary, as the campaigns of 2008 presidential candidates seek
endorsements from the major labor federations and member unions.
In the next week three labor (LIUNA, SEIU, Change to WIn) presidential
forums-two in Chicago-will feature presidential candidates. There's a
lot of schedule jockeying on Monday. Before heading to Washington,
Obama has an economics speech in New York City in the morning and
Clinton delivers her plan to deliver universal health care coverage in
Iowa.
On Monday and Tuesday, LIUNA-the Laborers' International Union of
North America hosts a Leadership Conference at the Chicago Sheraton
Hotel and Towers. Hillary Clinton, John Edwards and Joe Biden speak on
Monday. Bill Richardson on Tuesday. Barack Obama is not scheduled to
attend"
above from
http://blogs.suntimes.com/sweet/2007/09/sweet_blog_special_dem_preside.html
In the Matter of Alan D. Wasserman
Laborers' International Union of North America
Independent Hearing Officer
Docket No. 97-57D
Decided October 7, 1998
Order and Memorandum
This Order and Memorandum supercedes the Order and Memorandum of
August 28, 1998 ("August 28 Order"). This Order and Memorandum
addresses objections to the August 28 Order filed by Attorney Arnold
J. Gold on behalf of the Respondent. The procedural history of this
matter is discussed below in detail.
This matter comes before the Laborers' International Union of North
America ("LIUNA") Independent Hearing Officer ("IHO") pursuant to the
LIUNA Constitution and Ethics and Disciplinary Procedure ("EDP").
On December 29, 1997, the LIUNA General Executive Board Attorney ("GEB
Attorney") filed Disciplinary Charges against Alan D. Wasserman
("Wasserman"), alleging violations of federal law and the EDP.
Specifically, Wasserman is charged with knowingly associating with a
La Cosa Nostra ("LCN") organized crime family, racketeering, demanding
labor payoffs from contractors, offering to allow employers to pay
LIUNA members less than union-scale wages and benefits, and
obstructing the GEB Attorney and the Inspector General ("IG").
A hearing was held in Newark, New Jersey on May 27, 1998. Wasserman
did not appear at the hearing, but was represented by counsel, Arnold
Jay Gold ("Gold"). At the hearing, Attorney Gold stated that his
client was depressed and unable to assist him in his defense. In
support, Gold presented a letter of a medical doctor who stated that
Wasserman suffered from a "Major Depressive Disorder," resulting in
anger and depression. IHO Exhibit 1. The letter gave no opinion that
such a disorder rendered him unable to assist in his defense but
merely indicated that Wasserman's ability to testify was impaired.
Id. No evidence was offered to show Wasserman could not aid in his
defense. I decided to proceed with the hearing but told Gold that if
he desired an additional session to present new evidence based on the
cooperation of his client, he should inform me and a hearing would be
arranged.
At the conclusion of the hearing, I instructed both parties to inform
me by June 15, 1998, whether they wished the record to remain open
pending the submission of additional evidence. The parties were also
instructed to submit post-hearing briefs three weeks following June
15, 1998. I stated "You have until June 15th to let me know what
other plans you have, whether to close or keep the record open."
Hearing Transcript of May 27, 1998 ("Tr.") 220.
On June 12, 1998, the GEB Attorney requested that the matter remain
open until July 13, 1998. The request was granted. On July 13, 1998,
the GEB Attorney filed a motion to admit testimony regarding a
confidential witness. On July 14, 1998, the GEB Attorney filed the
original and one copy of all exhibits presented at the May 27, 1998
hearing. Wasserman filed no response to the motion to admit the
confidential witness testimony.
>From the date of the hearing on May 27, 1998, Wasserman made no
communication with my office. Attorney Gold made no effort to contact
my office regarding his client's mental status or his intention to
offer any additional evidence. I filed the August 28 Order which
dealt with the merits of the case. On September 2, 1998, Attorney
Gold by letter to my office complained of not having had an
opportunity to present a defense or file a post-hearing brief. Gold's
letter was Wasserman's first contact with my office in over three
months. I issued an Order placing the August 28 Order in suspense and
treating the August 28 Order as a proposed Order. See IHO Order
September 4, 1998. I permitted both parties to file written
objections and conclusions to the proposed order with arguments to
support their conclusions. I clearly stated that objections and
arguments were to be filed by September 28, 1998. Despite the
September 4, 1998 Order, Attorney Gold sent my office a letter
indicating he wished to discuss a timetable for the completion of
evidence after October 1, 1998, including the possibility of having
his client testify. I denied Gold's request to hold the record open
until after October 1, 1998, but gave Attorney Gold until October 2,
1998, to file objections to the August 28 Order. I also requested
Attorney Gold to include an affidavit outlining the proposed testimony
of Wasserman. Gold filed timely objections. In his objections, Gold
asserted that Wasserman was able to appear and testify; however, he
did not submit any proposed testimony by Wasserman as requested. I
find that there is no credible evidence that Wasserman ever intended
to appear.
Qualification Of Expert Witnesses
The GEB Attorney called Jack Elko ("Elko") and Jeffrey Schaffler
("Schaffler") as expert witnesses.
Jack Elko
Elko was a police officer for 25 years. Tr. 104. During the last 14
of those years, Elko specialized in organized crime investigations for
the Division of Criminal Justice of the Office of the Attorney General
of New Jersey. Id. Prior to his employment with the Division of
Criminal Justice, Elko was employed as an investigator with Morris
County in Morristown, New Jersey. He attended numerous service
schools, including the New Jersey State Police Academy, courses
offered by the Division of Criminal Justice, Seton Hall Law School and
the Federal Bureau of Investigation ("FBI") on organized crime and the
illegal activity usually perpetrated by organized crime. Tr. 105.
Elko testified in this proceeding as an expert in the make-up and
structure of organized crime, specifically in the Newark area. This
technique has been accepted in similar union disciplinary matters.
See e.g., United States v. IBT (Senese & Talerico) 745 F. Supp. 908,
914-15 (S.D.N.Y. 1990), aff'd United States v. IBT (Senese &
Talerico), 941 F.2d 1292 (2d Cir. 1991).
Elko used tested and accepted investigative techniques to verify the
credibility of the individuals whose information he related at the
hearing. Elko testified as to information and hearsay statements of
five named witnesses. Tr. 109-158. In similar circumstances, the
court in United States v. IBT (Cimino), 964 F.2d 1308 (2d Cir. 1992),
at 1312; aff'g 777 F. Supp. 1130 (S.D.N.Y. 1991), gave evidentiary
weight to hearsay declarations of three LCN members that were related
by an FBI agent. The court used a number of factors to evaluate the
reliability of the statements. The court noted that the statements
corroborated each other in crucial respects, the reports painted a
consistent picture of the relationship of the individuals and the
statements matched the FBI agent's declaration in the subject matter.
Id. The court held that these declarations constituted relevant
evidence that a reasonable mind might accept on the subject of
association with organized crime. Id.
I find that Elko is a qualified witness, expert in organized crime
matters, and his testimony, in conformance with accepted investigative
techniques, is reliable.
Elko related information given to him by five named individuals
described below, three of whom have cooperated with federal
authorities and two of whom are law enforcement officers.
Rocco Cagno
Rocco Cagno ("Cagno") is a made member of the Colombo organized crime
family and a former member of LIUNA Local Union 342 ("Local 342"). Tr.
109. Cagno became a made member in 1987; thereafter, he was
incarcerated. The record does not reflect the reason for his
incarceration.
He was released from prison in 1990 and his movements were monitored
by an electronic bracelet. As a condition of his release, Cagno was
required to gain employment. He became employed by Local 342 through
the influence of Colombo family members and Anthony Proto, who was
then the Business Manager of Local 342. Tr. 114. Cagno is currently
in the Federal Witness Protection Program. Elko had the opportunity
to speak with Cagno in October 1997 concerning the various organized
crime affiliations within Local 342. Tr. 109.
Thomas Ricciardi and Anthony Tumac Accetturo
Thomas Ricciardi ("Ricciardi") and Anthony Accetturo ("Accetturo") are
both made members of the Lucchese organized crime family and are also
in the Federal Witness Protection Program. Tr. 117. Accetturo had
been the acting boss of the New Jersey faction of the Lucchese
family. Id.
Steve Montgomery and Lt. Dennis Masucci
Elko also based his opinion on information supplied to him by two law
enforcement officers, Lieutenant Dennis Masucci ("Masucci") and Steve
Montgomery ("Montgomery"). Masucci is a law enforcement officer from
the Essex County Prosecutor's Office in New Jersey. Tr. 126-27. The
information provided by Masucci is based upon confidential informant
sources proven reliable in the past, who gave Masucci information
which resulted in the arrest of organized crime members, including
Gambino organized crime family members in Essex County. Tr. 128.
Montgomery is an FBI Special Agent in Newark, New Jersey and had been
assigned to the Gambino family organized crime unit. Tr. 127.
Montgomery's information is also based on his personal investigation
and confidential sources.
The testimony of Cagno, Ricciardi and Accetturo are corroborated by
each other and by the information supplied by Masucci and
Montgomery.
Jeffrey Schaffler
Schaffler was a federal agent for approximately 30 years. Tr. 160.
He spent his last years as a special agent with the Office of Labor
Racketeering, United States Department of Labor ("DOL"). Id.
Schaffer has been a supervisory special agent for DOL, and thereafter,
an assistant special agent in charge of a DOL investigation office.
Id. Schaffler is currently under contract to the Office of the
Inspector General of the Port Authority of New York and New Jersey.
His duties involve investigation of contractors who do business with
the Port Authority, the operation of construction projects, the manner
in which construction bids are made, contract fraud and wage and hour
issues. Tr. 159-60. Schaffler testified in this proceeding in the
capacity of an expert in the labor field.
I find that Schaffler is a qualified expert witness in the labor
field.
Findings of Fact
Structure of Organized Crime
1. The LCN is a tightly structured
criminal organization which operates in various cities throughout the
United States. It is in the business of crime for a profit.[1]
2. The LCN is comprised of groups of individuals organized into
entities called families. Tr. 105.
3. A typical LCN family structure consists of the head (the
"boss"), his assistant (the "underboss"), and an advisor (the
"consigliere"). The boss, underboss, and consigliere oversee the
activities of LCN members and their associates. LCN members within a
family operate in small groups called "crews" which are headed by men
called "capos" or "crew bosses." Tr. 106.
4. A "made member" is an individual within an LCN family who
has undergone an initiation process and sworn allegiance to that
family putting the family above everything else. Tr. 106. See also
United States v. Tortona, 922 F.2d 880, 885 (1st Cir. 1990).
5. An "associate" is an individual who works under a capo and
assists made members, but who has not been formally initiated into the
family. Tr. 106. An associate may either earn his living by
performing illegal acts on behalf of an LCN family or he may have an
ostensibly legitimate job while at the same time assisting a
particular LCN family in the acquisition of profits and monies. Tr.
129-30.
6. Both members and associates engage in activities which bring
money to an organized crime family. Tr. 106. Traditionally, an
associate could only become a made member by participating in the
murder of an individual. In more recent times, an associate may
become a made member based upon the benefits he is able to produce for
that family, such as earning large sums of money or exercising
influence in business or politics. Tr. 106-07.
7. A number of LCN families are located in the New York/New
Jersey area, including the Gambino, Lucchese, and Colombo families.
The LCN's History Of Control Over Local 342
8. The evidence presented during the hearing establishes by a
preponderance of the evidence that Local 342 in Newark, New Jersey has
been subject to LCN control for many years.
9. From at least the 1970's, the Gambino and Colombo organized
crime families have shared control of Local 342. Tr. 110. The two
families shared illegal profits from contractors within their
jurisdiction by soliciting money for labor peace and outright
extortion. Tr. 110, 114, 131. Members and associates of both
families were placed on the labor payroll with various contractors
through Local 342. Tr. 110, 114. The relationship between the two
families later shifted to an arrangement where the Colombo family
received preferential treatment for placement of workers at particular
contract sites, but no longer shared in racketeering labor profits.
Tr. 111-12.
10. The New Jersey Organized Crime Task Force ("Task Force") was
created by the State of New Jersey in 1986. Tr. 132. From that time
to the present, the Task Force and other law enforcement entities have
documented the Gambino family infiltration of Local 342. Id.
11. Paul Castellano ("Castellano") was the boss of the Gambino
family in New York. After Castellano's murder in December 1985, he
was succeeded by John Gotti ("Gotti") in January 1986. Id.
12. Michael Mandaglia ("Mandaglia") had been the Business Manager
of Local 342 for several years prior to the Task Force's creation in
1986. Id. According to Elko, court authorized electronic surveillance
revealed that Mandaglia had given Castellano $5,000 a year from the
New Jersey faction of the Gambino family. Id. Mandaglia gave Robert
Bisaccia ("Bisaccia"), the former Vice President of Local 342, $2,000
a year. Id. Bisaccia was a Gambino family member later incarcerated
for racketeering. Tr. 138.
13. In 1986, Mandaglia retired from Local 342 and was succeeded as
Business Manager by Anthony Proto ("Proto"). Tr. 133. Proto was a
made member of the Gambino family. Tr. 117, 133.
14. In August 1991, Alfred "Al" Andrade ("Andrade") assaulted a
coffee truck vendor in downtown Newark, New Jersey. Tr. 133-34. The
assault was a result of the vendor's failure to pay Andrade $500 a
month for permission to park the vendor's vehicle on a particular
street corner in Newark. Tr. 134. The vendor's vehicle was smashed
with a sledgehammer. Id. The police responded and, after a period of
time, Andrade was arrested. Id. Months later, with the victim's
approval, the charges were downgraded to simple assault, not pursued,
and the vendor immediately left New Jersey and moved to South
Carolina. Id.
15. At the time of the assault, Andrade was a shop steward of
Local 342. Tr. 134. Cagno was present at the scene. Cagno stated
that Andrade's accomplice for the assault was Wasserman, who at the
time was an employee of Local 342. Id.
16. In 1987, the Task Force launched an investigation into
organized crime influence in New Jersey. The investigation employed
court authorized electronic surveillance and other investigative
techniques. The investigation resulted in the indictment of numerous
Gambino family members for labor racketeering in New Jersey, one of
whom was Proto, the former Business Manager for Local 342. Tr. 133.
Proto was convicted and incarcerated for labor racketeering in 1993.
Tr. 110. Proto was later permanently expelled from LIUNA in a
separate disciplinary action. See In the Matter of Anthony Proto, IHO
Order and Memorandum, 97-09D (March 26, 1998).
17. After Proto's incarceration in 1993, he unofficially appointed
his son, James Proto, as the Business Manager of Local 342. Tr. 133.
Andrade became a Business Agent of Local 342 at that time, assisting
James Proto with his duties. Tr. 134.
18. While Andrade was Business Agent and James Proto was Business
Manager, Wasserman was appointed as a shop steward for Local 342. Tr.
147.
19. James Vallaro ("Vallaro") was an associate of the Gambino
family in Staten Island, New York. Vallaro's father was a made member
of the Gambino family and a high volume bookmaker. Tr. 135.
Following the 1993 convictions of other Gambino family members,
Vallaro moved to New Jersey and became a member of Local 342. Id.
20. At the time of his move, Vallaro was unknown to law
enforcement in New Jersey. Tr. 136. Elko became aware of Vallaro's
presence and involvement in the LCN through electronic surveillance
which he supervised for the Organized Crime Bureau. Tr. 135. The
information about Vallero which Elko obtained from the surveillance
was verified by Cagno. Tr. 136.
21. Vincent "Juicy" DiModica ("Juicy DiModica") was a member of
Local 342. Juicy DiModica was also made member of the Gambino family
and responsible for the New Jersey area, including all the Gambino
family members and associates within Local 342. Tr. 109, 113.
22. As a result of the 1993 incarcerations of Proto and Robert
Bisaccia, former Vice President of Local 342, Juicy DiModica was
elevated to acting capo of the Gambino family. Tr. 115-116. Elko
testified that he learned this fact from intelligence sources,
discussions with Cagno and interviews with other organized crime
members, including Ricciardi and Accetturo. Tr. 117-19.
23. After Proto's incarceration, Cagno became concerned about the
distribution of money and work for the Colombo family members within
Local 342. Tr. 116. Cagno related his concerns to members of the New
York City Colombo family. Id. Cagno was approached within the next
week by Andrade at a Local 342 membership meeting. Id. Andrade
requested that Cagno attend a meeting with Juicy DiModica at the
Kenilworth Inn on the Garden State Parkway. Id.
24. Cagno and Juicy DiModica, as representatives of their
respective families, attended certain meetings at the Kenilworth Inn.
Tr. 114-15. At the meetings, Juicy DiModica told Cagno that his son
James DiModica, Wasserman, and Andrade were acting on behalf of Juicy
DiModica and the Gambino family. Tr. 114.
25. Vallaro assisted Juicy DiModica in the day-to-day operations
of Local 342 for the Gambino family. Tr. 135. The now public
electronic surveillance revealed that Vallaro met on a daily basis
with Andrade to discuss labor issues within Local 342. Tr. 138.
During a 30-day period, 30 telephone calls were intercepted, both
incoming and outgoing, from Vallaro's and Andrade's homes regarding
labor issues and Local 342. Id.
26. Conversations over prison telephones of Proto, Casarro, and
Bisaccia were intercepted and monitored. Id.
27. In April 1994, a conversation was intercepted between Joseph
Vallaro and Cassarro who was in state prison. Tr. 140. Joseph
Vallaro told Cassarro that he and Juicy DiModica had met with the
consigliere of the Gambino family in New York. Id. Joseph Vallaro
told Cassarro that James Proto, the Business Manager of Local 342, was
not making any money for them and that they would be broke in two
months. Elko testified that he understood this conversation to mean
that James Proto was not being forceful enough in extracting money
from contractors for Local 342. Id.
28. Elko testified that after the Vallaro/Cassarro telephone
conversation, James Proto remained Business Manager of Local 342 for
approximately one year. Id. James Proto was replaced by Wasserman.
Id.
VHR Construction
Charge I:
In or around December 1995, Alan D. Wasserman, while a member and
representative of LIUNA Local 342, committed "barred conduct" in
violation of the LIUNA Ethics and Disciplinary Procedure by committing
an act of racketeering, in that Wasserman did request and demand money
or a thing of value from VHR Construction, an employer engaged in an
industry affecting interstate commerce, when Wasserman asked for a
payoff in form of a "Christmas gift" while being a Union member and
representative (29 U.S.C.
WASHINGTON-Organized labor is enormously influential in the Democratic
primary, as the campaigns of 2008 presidential candidates seek
endorsements from the major labor federations and member unions.
In the next week three labor (LIUNA, SEIU, Change to WIn) presidential
forums-two in Chicago-will feature presidential candidates. There's a
lot of schedule jockeying on Monday. Before heading to Washington,
Obama has an economics speech in New York City in the morning and
Clinton delivers her plan to deliver universal health care coverage in
Iowa.
On Monday and Tuesday, LIUNA-the Laborers' International Union of
North America hosts a Leadership Conference at the Chicago Sheraton
Hotel and Towers. Hillary Clinton, John Edwards and Joe Biden speak on
Monday. Bill Richardson on Tuesday. Barack Obama is not scheduled to
attend"
above from
http://blogs.suntimes.com/sweet/2007/09/sweet_blog_special_dem_preside.html
In the Matter of Alan D. Wasserman
Laborers' International Union of North America
Independent Hearing Officer
Docket No. 97-57D
Decided October 7, 1998
Order and Memorandum
This Order and Memorandum supercedes the Order and Memorandum of
August 28, 1998 ("August 28 Order"). This Order and Memorandum
addresses objections to the August 28 Order filed by Attorney Arnold
J. Gold on behalf of the Respondent. The procedural history of this
matter is discussed below in detail.
This matter comes before the Laborers' International Union of North
America ("LIUNA") Independent Hearing Officer ("IHO") pursuant to the
LIUNA Constitution and Ethics and Disciplinary Procedure ("EDP").
On December 29, 1997, the LIUNA General Executive Board Attorney ("GEB
Attorney") filed Disciplinary Charges against Alan D. Wasserman
("Wasserman"), alleging violations of federal law and the EDP.
Specifically, Wasserman is charged with knowingly associating with a
La Cosa Nostra ("LCN") organized crime family, racketeering, demanding
labor payoffs from contractors, offering to allow employers to pay
LIUNA members less than union-scale wages and benefits, and
obstructing the GEB Attorney and the Inspector General ("IG").
A hearing was held in Newark, New Jersey on May 27, 1998. Wasserman
did not appear at the hearing, but was represented by counsel, Arnold
Jay Gold ("Gold"). At the hearing, Attorney Gold stated that his
client was depressed and unable to assist him in his defense. In
support, Gold presented a letter of a medical doctor who stated that
Wasserman suffered from a "Major Depressive Disorder," resulting in
anger and depression. IHO Exhibit 1. The letter gave no opinion that
such a disorder rendered him unable to assist in his defense but
merely indicated that Wasserman's ability to testify was impaired.
Id. No evidence was offered to show Wasserman could not aid in his
defense. I decided to proceed with the hearing but told Gold that if
he desired an additional session to present new evidence based on the
cooperation of his client, he should inform me and a hearing would be
arranged.
At the conclusion of the hearing, I instructed both parties to inform
me by June 15, 1998, whether they wished the record to remain open
pending the submission of additional evidence. The parties were also
instructed to submit post-hearing briefs three weeks following June
15, 1998. I stated "You have until June 15th to let me know what
other plans you have, whether to close or keep the record open."
Hearing Transcript of May 27, 1998 ("Tr.") 220.
On June 12, 1998, the GEB Attorney requested that the matter remain
open until July 13, 1998. The request was granted. On July 13, 1998,
the GEB Attorney filed a motion to admit testimony regarding a
confidential witness. On July 14, 1998, the GEB Attorney filed the
original and one copy of all exhibits presented at the May 27, 1998
hearing. Wasserman filed no response to the motion to admit the
confidential witness testimony.
>From the date of the hearing on May 27, 1998, Wasserman made no
communication with my office. Attorney Gold made no effort to contact
my office regarding his client's mental status or his intention to
offer any additional evidence. I filed the August 28 Order which
dealt with the merits of the case. On September 2, 1998, Attorney
Gold by letter to my office complained of not having had an
opportunity to present a defense or file a post-hearing brief. Gold's
letter was Wasserman's first contact with my office in over three
months. I issued an Order placing the August 28 Order in suspense and
treating the August 28 Order as a proposed Order. See IHO Order
September 4, 1998. I permitted both parties to file written
objections and conclusions to the proposed order with arguments to
support their conclusions. I clearly stated that objections and
arguments were to be filed by September 28, 1998. Despite the
September 4, 1998 Order, Attorney Gold sent my office a letter
indicating he wished to discuss a timetable for the completion of
evidence after October 1, 1998, including the possibility of having
his client testify. I denied Gold's request to hold the record open
until after October 1, 1998, but gave Attorney Gold until October 2,
1998, to file objections to the August 28 Order. I also requested
Attorney Gold to include an affidavit outlining the proposed testimony
of Wasserman. Gold filed timely objections. In his objections, Gold
asserted that Wasserman was able to appear and testify; however, he
did not submit any proposed testimony by Wasserman as requested. I
find that there is no credible evidence that Wasserman ever intended
to appear.
Qualification Of Expert Witnesses
The GEB Attorney called Jack Elko ("Elko") and Jeffrey Schaffler
("Schaffler") as expert witnesses.
Jack Elko
Elko was a police officer for 25 years. Tr. 104. During the last 14
of those years, Elko specialized in organized crime investigations for
the Division of Criminal Justice of the Office of the Attorney General
of New Jersey. Id. Prior to his employment with the Division of
Criminal Justice, Elko was employed as an investigator with Morris
County in Morristown, New Jersey. He attended numerous service
schools, including the New Jersey State Police Academy, courses
offered by the Division of Criminal Justice, Seton Hall Law School and
the Federal Bureau of Investigation ("FBI") on organized crime and the
illegal activity usually perpetrated by organized crime. Tr. 105.
Elko testified in this proceeding as an expert in the make-up and
structure of organized crime, specifically in the Newark area. This
technique has been accepted in similar union disciplinary matters.
See e.g., United States v. IBT (Senese & Talerico) 745 F. Supp. 908,
914-15 (S.D.N.Y. 1990), aff'd United States v. IBT (Senese &
Talerico), 941 F.2d 1292 (2d Cir. 1991).
Elko used tested and accepted investigative techniques to verify the
credibility of the individuals whose information he related at the
hearing. Elko testified as to information and hearsay statements of
five named witnesses. Tr. 109-158. In similar circumstances, the
court in United States v. IBT (Cimino), 964 F.2d 1308 (2d Cir. 1992),
at 1312; aff'g 777 F. Supp. 1130 (S.D.N.Y. 1991), gave evidentiary
weight to hearsay declarations of three LCN members that were related
by an FBI agent. The court used a number of factors to evaluate the
reliability of the statements. The court noted that the statements
corroborated each other in crucial respects, the reports painted a
consistent picture of the relationship of the individuals and the
statements matched the FBI agent's declaration in the subject matter.
Id. The court held that these declarations constituted relevant
evidence that a reasonable mind might accept on the subject of
association with organized crime. Id.
I find that Elko is a qualified witness, expert in organized crime
matters, and his testimony, in conformance with accepted investigative
techniques, is reliable.
Elko related information given to him by five named individuals
described below, three of whom have cooperated with federal
authorities and two of whom are law enforcement officers.
Rocco Cagno
Rocco Cagno ("Cagno") is a made member of the Colombo organized crime
family and a former member of LIUNA Local Union 342 ("Local 342"). Tr.
109. Cagno became a made member in 1987; thereafter, he was
incarcerated. The record does not reflect the reason for his
incarceration.
He was released from prison in 1990 and his movements were monitored
by an electronic bracelet. As a condition of his release, Cagno was
required to gain employment. He became employed by Local 342 through
the influence of Colombo family members and Anthony Proto, who was
then the Business Manager of Local 342. Tr. 114. Cagno is currently
in the Federal Witness Protection Program. Elko had the opportunity
to speak with Cagno in October 1997 concerning the various organized
crime affiliations within Local 342. Tr. 109.
Thomas Ricciardi and Anthony Tumac Accetturo
Thomas Ricciardi ("Ricciardi") and Anthony Accetturo ("Accetturo") are
both made members of the Lucchese organized crime family and are also
in the Federal Witness Protection Program. Tr. 117. Accetturo had
been the acting boss of the New Jersey faction of the Lucchese
family. Id.
Steve Montgomery and Lt. Dennis Masucci
Elko also based his opinion on information supplied to him by two law
enforcement officers, Lieutenant Dennis Masucci ("Masucci") and Steve
Montgomery ("Montgomery"). Masucci is a law enforcement officer from
the Essex County Prosecutor's Office in New Jersey. Tr. 126-27. The
information provided by Masucci is based upon confidential informant
sources proven reliable in the past, who gave Masucci information
which resulted in the arrest of organized crime members, including
Gambino organized crime family members in Essex County. Tr. 128.
Montgomery is an FBI Special Agent in Newark, New Jersey and had been
assigned to the Gambino family organized crime unit. Tr. 127.
Montgomery's information is also based on his personal investigation
and confidential sources.
The testimony of Cagno, Ricciardi and Accetturo are corroborated by
each other and by the information supplied by Masucci and
Montgomery.
Jeffrey Schaffler
Schaffler was a federal agent for approximately 30 years. Tr. 160.
He spent his last years as a special agent with the Office of Labor
Racketeering, United States Department of Labor ("DOL"). Id.
Schaffer has been a supervisory special agent for DOL, and thereafter,
an assistant special agent in charge of a DOL investigation office.
Id. Schaffler is currently under contract to the Office of the
Inspector General of the Port Authority of New York and New Jersey.
His duties involve investigation of contractors who do business with
the Port Authority, the operation of construction projects, the manner
in which construction bids are made, contract fraud and wage and hour
issues. Tr. 159-60. Schaffler testified in this proceeding in the
capacity of an expert in the labor field.
I find that Schaffler is a qualified expert witness in the labor
field.
Findings of Fact
Structure of Organized Crime
1. The LCN is a tightly structured
criminal organization which operates in various cities throughout the
United States. It is in the business of crime for a profit.[1]
2. The LCN is comprised of groups of individuals organized into
entities called families. Tr. 105.
3. A typical LCN family structure consists of the head (the
"boss"), his assistant (the "underboss"), and an advisor (the
"consigliere"). The boss, underboss, and consigliere oversee the
activities of LCN members and their associates. LCN members within a
family operate in small groups called "crews" which are headed by men
called "capos" or "crew bosses." Tr. 106.
4. A "made member" is an individual within an LCN family who
has undergone an initiation process and sworn allegiance to that
family putting the family above everything else. Tr. 106. See also
United States v. Tortona, 922 F.2d 880, 885 (1st Cir. 1990).
5. An "associate" is an individual who works under a capo and
assists made members, but who has not been formally initiated into the
family. Tr. 106. An associate may either earn his living by
performing illegal acts on behalf of an LCN family or he may have an
ostensibly legitimate job while at the same time assisting a
particular LCN family in the acquisition of profits and monies. Tr.
129-30.
6. Both members and associates engage in activities which bring
money to an organized crime family. Tr. 106. Traditionally, an
associate could only become a made member by participating in the
murder of an individual. In more recent times, an associate may
become a made member based upon the benefits he is able to produce for
that family, such as earning large sums of money or exercising
influence in business or politics. Tr. 106-07.
7. A number of LCN families are located in the New York/New
Jersey area, including the Gambino, Lucchese, and Colombo families.
The LCN's History Of Control Over Local 342
8. The evidence presented during the hearing establishes by a
preponderance of the evidence that Local 342 in Newark, New Jersey has
been subject to LCN control for many years.
9. From at least the 1970's, the Gambino and Colombo organized
crime families have shared control of Local 342. Tr. 110. The two
families shared illegal profits from contractors within their
jurisdiction by soliciting money for labor peace and outright
extortion. Tr. 110, 114, 131. Members and associates of both
families were placed on the labor payroll with various contractors
through Local 342. Tr. 110, 114. The relationship between the two
families later shifted to an arrangement where the Colombo family
received preferential treatment for placement of workers at particular
contract sites, but no longer shared in racketeering labor profits.
Tr. 111-12.
10. The New Jersey Organized Crime Task Force ("Task Force") was
created by the State of New Jersey in 1986. Tr. 132. From that time
to the present, the Task Force and other law enforcement entities have
documented the Gambino family infiltration of Local 342. Id.
11. Paul Castellano ("Castellano") was the boss of the Gambino
family in New York. After Castellano's murder in December 1985, he
was succeeded by John Gotti ("Gotti") in January 1986. Id.
12. Michael Mandaglia ("Mandaglia") had been the Business Manager
of Local 342 for several years prior to the Task Force's creation in
1986. Id. According to Elko, court authorized electronic surveillance
revealed that Mandaglia had given Castellano $5,000 a year from the
New Jersey faction of the Gambino family. Id. Mandaglia gave Robert
Bisaccia ("Bisaccia"), the former Vice President of Local 342, $2,000
a year. Id. Bisaccia was a Gambino family member later incarcerated
for racketeering. Tr. 138.
13. In 1986, Mandaglia retired from Local 342 and was succeeded as
Business Manager by Anthony Proto ("Proto"). Tr. 133. Proto was a
made member of the Gambino family. Tr. 117, 133.
14. In August 1991, Alfred "Al" Andrade ("Andrade") assaulted a
coffee truck vendor in downtown Newark, New Jersey. Tr. 133-34. The
assault was a result of the vendor's failure to pay Andrade $500 a
month for permission to park the vendor's vehicle on a particular
street corner in Newark. Tr. 134. The vendor's vehicle was smashed
with a sledgehammer. Id. The police responded and, after a period of
time, Andrade was arrested. Id. Months later, with the victim's
approval, the charges were downgraded to simple assault, not pursued,
and the vendor immediately left New Jersey and moved to South
Carolina. Id.
15. At the time of the assault, Andrade was a shop steward of
Local 342. Tr. 134. Cagno was present at the scene. Cagno stated
that Andrade's accomplice for the assault was Wasserman, who at the
time was an employee of Local 342. Id.
16. In 1987, the Task Force launched an investigation into
organized crime influence in New Jersey. The investigation employed
court authorized electronic surveillance and other investigative
techniques. The investigation resulted in the indictment of numerous
Gambino family members for labor racketeering in New Jersey, one of
whom was Proto, the former Business Manager for Local 342. Tr. 133.
Proto was convicted and incarcerated for labor racketeering in 1993.
Tr. 110. Proto was later permanently expelled from LIUNA in a
separate disciplinary action. See In the Matter of Anthony Proto, IHO
Order and Memorandum, 97-09D (March 26, 1998).
17. After Proto's incarceration in 1993, he unofficially appointed
his son, James Proto, as the Business Manager of Local 342. Tr. 133.
Andrade became a Business Agent of Local 342 at that time, assisting
James Proto with his duties. Tr. 134.
18. While Andrade was Business Agent and James Proto was Business
Manager, Wasserman was appointed as a shop steward for Local 342. Tr.
147.
19. James Vallaro ("Vallaro") was an associate of the Gambino
family in Staten Island, New York. Vallaro's father was a made member
of the Gambino family and a high volume bookmaker. Tr. 135.
Following the 1993 convictions of other Gambino family members,
Vallaro moved to New Jersey and became a member of Local 342. Id.
20. At the time of his move, Vallaro was unknown to law
enforcement in New Jersey. Tr. 136. Elko became aware of Vallaro's
presence and involvement in the LCN through electronic surveillance
which he supervised for the Organized Crime Bureau. Tr. 135. The
information about Vallero which Elko obtained from the surveillance
was verified by Cagno. Tr. 136.
21. Vincent "Juicy" DiModica ("Juicy DiModica") was a member of
Local 342. Juicy DiModica was also made member of the Gambino family
and responsible for the New Jersey area, including all the Gambino
family members and associates within Local 342. Tr. 109, 113.
22. As a result of the 1993 incarcerations of Proto and Robert
Bisaccia, former Vice President of Local 342, Juicy DiModica was
elevated to acting capo of the Gambino family. Tr. 115-116. Elko
testified that he learned this fact from intelligence sources,
discussions with Cagno and interviews with other organized crime
members, including Ricciardi and Accetturo. Tr. 117-19.
23. After Proto's incarceration, Cagno became concerned about the
distribution of money and work for the Colombo family members within
Local 342. Tr. 116. Cagno related his concerns to members of the New
York City Colombo family. Id. Cagno was approached within the next
week by Andrade at a Local 342 membership meeting. Id. Andrade
requested that Cagno attend a meeting with Juicy DiModica at the
Kenilworth Inn on the Garden State Parkway. Id.
24. Cagno and Juicy DiModica, as representatives of their
respective families, attended certain meetings at the Kenilworth Inn.
Tr. 114-15. At the meetings, Juicy DiModica told Cagno that his son
James DiModica, Wasserman, and Andrade were acting on behalf of Juicy
DiModica and the Gambino family. Tr. 114.
25. Vallaro assisted Juicy DiModica in the day-to-day operations
of Local 342 for the Gambino family. Tr. 135. The now public
electronic surveillance revealed that Vallaro met on a daily basis
with Andrade to discuss labor issues within Local 342. Tr. 138.
During a 30-day period, 30 telephone calls were intercepted, both
incoming and outgoing, from Vallaro's and Andrade's homes regarding
labor issues and Local 342. Id.
26. Conversations over prison telephones of Proto, Casarro, and
Bisaccia were intercepted and monitored. Id.
27. In April 1994, a conversation was intercepted between Joseph
Vallaro and Cassarro who was in state prison. Tr. 140. Joseph
Vallaro told Cassarro that he and Juicy DiModica had met with the
consigliere of the Gambino family in New York. Id. Joseph Vallaro
told Cassarro that James Proto, the Business Manager of Local 342, was
not making any money for them and that they would be broke in two
months. Elko testified that he understood this conversation to mean
that James Proto was not being forceful enough in extracting money
from contractors for Local 342. Id.
28. Elko testified that after the Vallaro/Cassarro telephone
conversation, James Proto remained Business Manager of Local 342 for
approximately one year. Id. James Proto was replaced by Wasserman.
Id.
VHR Construction
Charge I:
In or around December 1995, Alan D. Wasserman, while a member and
representative of LIUNA Local 342, committed "barred conduct" in
violation of the LIUNA Ethics and Disciplinary Procedure by committing
an act of racketeering, in that Wasserman did request and demand money
or a thing of value from VHR Construction, an employer engaged in an
industry affecting interstate commerce, when Wasserman asked for a
payoff in form of a "Christmas gift" while being a Union member and
representative (29 U.S.C.
