DISTRICT ATTORNEY - NEW YORK COUNTY

News Release
November 12, 2002

Contact: Barbara Thompson
212.335.9400

Manhattan District Attorney Robert M. Morgenthau announced today the arrests of 20 people charged in seven indictments for their participation in the criminal activities of an organized crime crew of the Bonanno Organized Crime Family.

Six of the defendants are charged with Enterprise Corruption under New York State's racketeering statute for crimes including gambling, loan sharking and weapons possession. Eleven other defendants are charged with assisting the criminal enterprise. Two defendants are charged with obstructing the investigation into the crew; one is charged with criminal contempt and the other with perjury in connection with their appearances before the grand jury. The defendants netted more than $2.5 million a year from their criminal activities.

Charged with Enterprise Corruption as the "DeFelippo Crew," are Bonanno capo PATRICK DEFILIPPO, soldiers EMMANUEL GUARAGNA, ANTHONY FRASCONE and JOHN SPIRITO and associates ANTHONY SIANO, and RUSSELL TRUCCO.

Those charged with assisting the criminal enterprise are FRANK MADONNA, DANIEL GOLIO, STEPHEN GUARAGNA (the son of EMMANUEL GUARAGNA), ALFIO INDIVIGLIA, GEORGE PISANTI, SIDNEY MELTZER, MARGARET FRASCONE (the mother of ANTHONY FRASCONE), NICHOLAS A. TERRIGNO, NICHOLAS S. TERRIGNO, ANTHONY SECCAFICO, LOUIS SCARPATI, and MARIE CELESTINO.

SALVATORE MONTAGNA is charged with contempt and LOUIS DEROSA is charged with perjury.

Mr. Morgenthau said that today's indictments stemmed from a joint investigation between the Organized Crime Investigation Division ("OCID") of the Organized Crime Control Bureau ("OCCB") of the New York City Police Department and the District Attorney's Rackets Bureau.

In January 2000, two undercover detectives from OCID began meeting with Bonanno associate Fred Kuletsky. Operating as "hijackers," the detectives purchased firearms and cocaine from Kuletsky and others, and developed evidence leading to electronic surveillance of Kuletsky’s cellular telephone. This, in turn, produced more evidence of narcotics and weapons-trafficking activities, as well as Kuletsky’s collection of loan sharking payments on behalf of defendant EMMANUEL GUARAGNA. Kuletsky and several others were indicted in March 2002. That case remains pending.

In March 2000, Kuletsky invited one of the undercovers to the Aquarius Social Club, located at 2106 Waterbury Avenue in the Bronx, a common meeting place for members of the Bonanno crew headed by capo PATRICK DEFILIPPO. At the social club, the undercover met defendant ALFIO INDIVIGLIA, the club’s caretaker, who operated an illegal bookmaking and numbers business from the location. The undercover soon ingratiated himself with INDIVIGLIA and became a partner in his illegal sports-betting operation. The undercover’s conversations with INDIVIGLIA, together with evidence obtained through the interception of GUARAGNA’s conversations with Kuletsky, led to eavesdropping of the club’s telephone. Eavesdropping over that instrument began in November 2000.

As the undercover continued to deal with Kuletsky and INDIVIGLIA, court authorized eavesdropping expanded to fifteen instruments, including conventional telephones, cellular telephones, electronic pagers, and meeting places used by the leaders and members of the DeFilippo Crew. Among the facilities placed under electronic-surveillance was the interior of EMMANUEL GUARAGNA’s car, where he was overheard reporting to DEFILIPPO concerning various criminal operations.

The principal business of the DeFelippo Crew was gambling and loan sharking. The crew operated three separate gambling operations. One was operated by EMMANUEL GUARAGNA and ANTHONY SIANO at the Aquarius Social Club with the assistance of INDIVIGLIA. In addition, GEORGE PISANTI and SIDNEY MELTZER operated a sports-betting wire room as part of the operation at 3103 East Tremont Avenue in the Bronx.

The second gambling operation was run by JOHN SPIRITO and ANTHONY FRASCONE. In this operation, defendants NICHOLAS A. TERRIGNO, NICHOLAS S. TERRIGNO, ANTHONY SECCAFICO, LOUIS SCARPATI, and MARIE CELESTINO made collections of gambling debts and delivered the proceeds and gambling records to FRASCONE's mother, MARGARET FRASCONE at her home. DEFILIPPO, among others, would pick up the money from MARGARET FRASCONE.

The third gambling operation involved JOHN SPIRITO who controlled so-called Joker Poker and Cherry Master machines operated by the crew.

The gambling operations took in approximately $100,000 in bets per month. The associated loan sharking operation had hundreds of thousands of dollars "on the street" and took in more than $1 million in interest per year.

STEPHEN GUARAGNA, the son of EMMANUEL GUARAGNA, is charged in a separate indictment with conspiracy to commit loan sharking in association with his father. STEPHEN GUARAGNA made collections on behalf of the crew and communicated with his father about the status of his collections.

In addition to gambling and loansharking, FRANK MADONNA and DANIEL GOLIO also engaged in discussions with the OCID undercover to fence 5000 stolen tires on behalf of the crew. The tires were to be sold to dealers throughout the metropolitan area. As a result, MADONNA and GOLIO are each charged in a separate indictment with Attempted Criminal Possession of Stolen Property in the First Degree.

LOUIS DEROSA is charged with two counts of Perjury in the First Degree for lying during his appearance before the Grand Jury on September 26, 2002. DEROSA was questioned about loansharking payments he made to EMMANUEL GUARAGNA. He lied in denying that he had made any payments of interest on a loan he had received from GUARAGNA. In fact, he had borrowed more than he testified and paid a considerable amount of interest on the debt. DEROSA also lied in denying that his brother had received a usurious loan from GUARAGNA.

SALVATORE MONTAGNA is charged with one count of Criminal Contempt in the First Degree for refusing to answer questions put to him during his Grand Jury appearance on September 24, 2002.

Enterprise Corruption is a class B felony punishable by up to 25 years in state prison. Criminal Usury in the First Degree is a class C felony punishable by 15 years. Criminal Possession of a Weapon in the Third Degree and Conspiracy to commit Criminal Usury in the First Degree are class D felonies punishable by up to 7 years in prison. Promoting Gambling in the First Degree and Possession of Gambling Records in the First Degree are E felonies punishable by up to 4 years. Perjury in the First Degree is a class D felony punishable by up to 7 years, while Criminal Contempt in the First Degree is an E felony punishable by up to 4 years.

Rackets Bureau Senior Investigative Counsels Vincent G. Heintz and Julie Garrett-Hamilton presented the case to the Grand Jury and will prosecute the case under the supervision of Rackets Bureau Chief Patrick J. Dugan.

For their roles in the investigation, Mr. Morgenthau thanked New York City Police Commissioner Raymond Kelly, Chief of OCCB William Morange, Chief of OCID Captain Brian O'Neill, Lieutenant Brian Verwoert, Sergeant Filipe Rodriguez, case officer Detective William Gillespie and members of his team.