US v. Bonanno Organized Crime Family
| Decision Date | 24 March 1988 |
| Docket Number | No. CV-87-2974.,CV-87-2974. |
| Citation | 683 F. Supp. 1411 |
| Parties | UNITED STATES of America, Plaintiff, v. The BONANNO ORGANIZED CRIME FAMILY OF La COSA NOSTRA, Joseph Bonanno, Philip Rastelli, Joseph Massino, Anthony Spero, Louis Attanasio, Alfred Embarrato, Gabriel Infanti, Frank Lino, Nicholas Marangello, Anthony Riella, Michael Sabella, Anthony Graziano, Benjamin Ruggiero, Ignatius Bracco, James Vincent Bracco, William Rodini, Vito Gentile, International Brotherhood of Teamsters, Local 814 Van Drivers, Packers and Furniture Handlers, Warehousemen's and Appliance Home Delivery Union, Executive Board of International Brotherhood of Teamsters Local 814 Van Drivers, Packers and Furniture Handlers, Warehousemen's and Appliance Home Delivery Union, International Brotherhood of Teamsters Local 814 Van Drivers, Packers, and Furniture Handlers, Warehousemen's and Appliance Home Delivery Union Welfare Fund, International Brotherhood of Teamsters Local 814 Van Drivers, Packers and Furniture Handlers, Warehousemen's and Appliance Home Delivery Union Pension Fund, International Brotherhood of Teamsters Local 814 Van Drivers, Packers, and Furniture Handlers, Warehousemen's and Appliance Home Delivery Union Annuity Fund, Defendants. UNITED STATES of America, Plaintiff, v. CERTAIN BUILDINGS AND PROPERTIES LOCATED AT 58-23 58TH ROAD, MASPETH, NEW YORK, 405 Myrtle Avenue, Brooklyn, New York, 78-80 East 4th Street, New York, New York, Defendants. |
| Court | U.S. District Court — Eastern District of New York |
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Peter R. Ginsberg, Thomas A. Carr, Asst. U.S. Attys., for U.S.
Judd Burstein, P.C., New York City, for Anthony Spero.
Joseph R. Benfante, New York City, for Gabriel Infanti.
Gerald B. Lefcourt, P.C., New York City, for Anthony Riela.
Gustave H. Newman, P.C., New York City, for Michael Sabella.
Benjamin Ruggiero, pro se.
Robert M. Simels, New York City, for Nicholas Marangello and William Rodini.
Richard Ware Levitt, New York City, for Joseph Bonanno.
Michael J. Coyle, Stanley A. Teilter, P.C., New York City, for Philip Rastelli.
Ronald P. Fischetti, Fischetti & Pomerantz, New York City, for Joseph Massino.
Wallace Musoff, New York City, for Louis Attanasio.
John J. Pollok, Todtman, Hoffman, Epstein, Young, Goldstein, Tunick & Pollok, P.C., New York City, for Alfred Embarrato, Frank Lino and Anthony Graziano.
Joel A. Pisano, Schwartz, Pisano, Simon & Edelstein, Livingston, N.J., for Belleville Motor Lodge, Inc. Sharon A. Flood, New York City, for James Vincent Bracco.
The government filed this civil action under the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. ?? 1961-1968 (1982 and Supp. IV 1986),1 on August 25, 1987, and filed an Amended Verified Complaint on October 5, 1987. The Amended Complaint names as defendants "the Bonanno Organized Crime Family of La Cosa Nostra" and twenty-two additional individuals and entities. The Amended Complaint alleges that the defendants have engaged in at least 199 acts of racketeering including gambling offenses, narcotics offenses, trafficking in contraband cigarettes, transportation of stolen stock certificates, extortion, usury, labor racketeering, and interference with commerce by threats or violence.
The Amended Complaint alleges that the defendants, through the enumerated acts of racketeering, have participated in the affairs of two enterprises, the Bonanno Organized Crime Family and an enterprise consisting of a union, its executive board, and its employee benefit funds, in violation of 18 U.S.C. ? 1962(c) and that the defendants have invested income received from the alleged racketeering acts in eight business enterprises in violation of ? 1962(a). In addition, the Amended Complaint alleges that the defendants have conspired, in violation of 18 U.S.C. ? 1962(d), to violate 18 U.S.C. ? 1962 (a) and (c).
The Amended Complaint seeks a preliminary injunction pursuant to 18 U.S.C. ? 1964(a) restraining the defendants from, among other things, engaging in certain racketeering activities, associating with each other "for any business or commercial purpose," participating in the affairs of the union defendants or any other labor organization or employee benefit plan, and transferring property interests in the eight specified businesses. The Amended Complaint also seeks the appointment of a trustee pendente lite to oversee the operation of the union defendants and a receiver pendente lite to oversee the eight businesses.
The ultimate relief sought by the government includes a permanent injunction prohibiting the defendants from participating in the union defendants or any other labor organization or participating in any moving or storage business, from associating with each other for business or commercial purposes for five years, and from engaging in certain criminal activities. The Amended Complaint also seeks treble monetary damages pursuant to 18 U.S.C. ? 1964(c) and divestiture of the defendants' interests in the eight businesses pursuant to 18 U.S.C. ? 1964(a). Finally, the government has simultaneously filed a Verified Complaint in Rem seeking forfeiture of three properties pursuant to 18 U.S.C. ? 1955.
On October 8, 1987, the government entered into a Consent Judgment with defendants International Brotherhood of Teamsters Local 814 Van Drivers, Packers and Furniture Handlers, Warehouseman's and Appliance Home Delivery Union ("Local 814"), the Executive Board of Local 814, Local 814 Welfare Fund, Local 814 Pension Fund, and Local 814 Annuity Fund (together "Local 814 Funds"), Ignatius Bracco, and Vito Gentile. The Consent Judgment, approved by court order, provided for the dismissal of the action as against those defendants, the appointment of a trustee, an interim executive board, and an interim board of trustees to oversee the affairs of Local 814 and Local 814 Funds, and for an injunction against Ignatius Bracco's and Vito Gentile's participation in the affairs of any labor organization, other than by simple membership or the receipt of employee benefits, for a period of five years.
The remaining defendants, other than Michael Sabella, have filed motions to dismiss the Amended Complaint pursuant to Rules 12(b)(3), 12(b)(6), and 9(b), Fed.R. Civ.P., for a more definite statement under Rule 12(e), Fed.R.Civ.P., and to strike redundant, immaterial, impertinent, or scandalous matter under Rule 12(f), Fed.R. Civ.P. The defendants attack the Amended Complaint on numerous grounds, asserting that it fails to allege legally sufficient predicate acts for each individual defendant, fails to allege predicate acts within the statute of limitations period, fails to allege a pattern of racketeering or collection of an unlawful debt as required by RICO, fails to plead RICO's requirements with particularity, relies on inapplicable theories of co-conspirator liability, fails to allege that the defendants participated as principals in unlawful activity as required by ? 1962(a), and impermissibly names the Bonanno Family as both a defendant and a RICO enterprise.
The defendants challenge the relief sought in the action, claiming that the Amended Complaint seeks forfeiture of property interests which is unauthorized and unconstitutional in a civil RICO action and injunctive relief which would violate the defendants' First Amendment right of association. The defendants argue that forfeiture of real property is not authorized by 18 U.S.C. ? 1955 and that the Amended Complaint impermissibly seeks forfeiture of defendant Rodini's interest in an employee benefit fund. The defendants move for a denial, without a hearing, of the government's request for preliminary relief, in particular asserting that the appointment of a receiver pendente lite would be unnecessary. The defendants also maintain that the government lacks standing under ? 1964(c) to assert claims for money damages and that such claims are insufficient because they are barred by the statute of limitations and res judicata.
Defendants Riela and Joseph Bonanno maintain that the Eastern District of New York is an improper venue for the action, that the relief sought in this action would amount to the application of an ex post facto law, and that subjecting Riela and Bonanno, who are elderly and infirm, to this action would be a violation of their due process rights and an abuse of process. Defendant Spero also moves in limine for a ruling that the Court will not draw an adverse inference from Spero's invocation of his Fifth Amendment privilege against self-incrimination.2
The defendants have to a large extent divided the responsibility for briefing each of these arguments among them and then have joined in each other's motions when applicable. Defendant Sabella had already filed an answer and a motion to dismiss the original Complaint before the government filed its Amended Complaint. Thus Sabella's motion to dismiss the original Complaint and the government's motion to file the Amended Complaint against Sabella are also before the Court. The arguments raised in the motions concerning Sabella are similar to those raised in the other defendants' motions. Unless clearly limited to particular defendants, the following discussion is intended to apply to all defendants whose motions are before the Court.
The RICO statute was part of the Organized Crime Control Act of 1970, Pub.L. 91-452, 84 Stat. 922, which Congress enacted in an effort to eradicate organized crime in the United States. The Statement of Findings and Purpose of the Organized Crime Control Act provides:
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