Gambino Organized Crime Family Soldiers John Gammarano and William Scotto Indicted for Racketeering and Securities Fraud
Gammarano, A Long-Time Gambino Family Member, Has Also Been An Acting Captain Of The Family
An indictment was unsealed this morning in Brooklyn federal court charging Gambino organized crime family soldiers JOHN GAMMARANO and WILLIAM SCOTTO with racketeering, racketeering conspiracy, and securities fraud conspiracy.1 The defendants were arrested earlier today and are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven M. Gold, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. The case has been assigned to United States District Judge Charles P. Sifton.
The charges were announced by Roslynn R. Mauskopf, United States Attorney for the Eastern District of New York, and Mark J. Mershon, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
As set forth in the indictment, GAMMARANO, also known as “Johnny G.,” has been affiliated with the Gambino family at least since 1982, and at various times has held the position of acting captain. SCOTTO, known as “Billy,” is also a made member of the Gambino family and currently holds the rank of soldier. The racketeering and racketeering conspiracy charges include predicate acts of securities fraud conspiracy, extortion conspiracy, attempted extortion, and extortionate collection of credit.
Securities Fraud Conspiracy
The defendants are charged with engaging in a wide-ranging securities fraud conspiracy between 1995 and 2003. Specifically, the indictment alleges that in February and March 2000, a co-conspirator, while an undisclosed owner of several hundred thousand shares of GlobalNet, Inc. common stock, secretly paid brokers cash commissions to promote the sale of GlobalNet stock in order to artificially inflate the price of that stock. The indictment further charges that in March 2003, a second co-conspirator paid GAMMARANO approximately $5,000, which represented a portion of the proceeds from a fraudulent securities transaction involving an entity known as Jaguar.
The indictment alleges that in 1995 GAMMARANO conspired to extort money from the principals of First Hanover Securities, Inc., through threats of force and violence; in 1995 GAMMARANO and SCOTTO conspired to extort property from John Fiero and Fiero Brothers, Inc.; and between 1988 and 1991, GAMMARANO conspired to extort money from DeLuxe Homes of Pennsylvania, Inc.
SCOTTO is charged with attempting to extort money from an individual identified in the indictment as “John Doe,” by threats of force and violence in February 1993.
Extortionate Collection of Credit
The indictment charges that in 1982 GAMMARANO used extortionate means to collect extensions of credit made to an individual named George Foronjy.
“The public can be assured that we will be relentless in our efforts to end organized crime’s corrupting influence in the market place and in our communities,” stated United States Attorney Mauskopf. Ms. Mauskopf thanked the FBI for its assistance in the case.
FBI Assistant Director-in-Charge Mershon stated, “Even in a law enforcement world of shifting priorities, organized crime remains a priority program of the FBI in New York. That is because, as this case amply reflects, mobsters still commit crimes of violence to enforce the legally unenforceable agreements that are the backbone of their underground economy. As long as there are mobsters in New York, the FBI will commit resources to policing them.”
If convicted of all charges, GAMMARANO and SCOTTO each faces a maximum sentence of 45 years of imprisonment and a $250,000 fine.
The government’s case is being prosecuted by Assistant United States Attorney Jeffrey A. Goldberg.
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