US v. LOCAL 359, 88 Civ. 7351 (TPG).
| Decision Date | 24 January 1989 |
| Docket Number | No. 88 Civ. 7351 (TPG).,88 Civ. 7351 (TPG). |
| Citation | 705 F. Supp. 894 |
| Parties | UNITED STATES of America, Plaintiff, v. LOCAL 359, et al., Defendants. |
| Court | U.S. District Court — Southern District of New York |
Edward Ferguson, U.S. Atty's. Office, S.D.N.Y., New York City, for plaintiff.
J. Kenneth O'Connor, O'Conner & Mangan, P.C., Long Island City, N.Y., for defendants.
This opinion constitutes the court's findings of fact and conclusions of law following the trial of the union defendants in this action.
This action was commenced on October 15, 1987. It is brought under the civil provisions of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S. C. §§ 1961 et seq. The Government claims organized crime control and RICO violations in the operation of New York's Fulton Fish Market.
The original complaint named several groups of defendants. The first group was the "union defendants" — i.e., Local 359, United Seafood Workers, Smoked Fish and Cannery Union, and certain officers of Local 359. Although there were six officer defendants named in the complaint, and a seventh later named in the amended complaint, the Government withdrew its claim against five of them following trial. The only officer defendants remaining in the action are:
Anthony Cirillo, President
The next group of defendants was the union welfare and pension funds — the Fulton Fish Market Welfare Fund and the Fulton Fish Market Pension Fund — and Anthony Cirillo and Dennis Faicco, in their capacities as trustees of those funds. Nina Andrew, Executive Administrator of the funds, was also named as a defendant.
The third group of defendants were the "Genovese Organized Crime Family of La Cosa Nostra" and 29 persons allegedly connected with the Genovese crime family, including Thomas Contaldo (said to be a "capo" of the family), Carmine Romano (allegedly a "made member" of the family) and Carmine Romano's brothers, Vincent and Peter Romano (allegedly "associates" of the Genovese family).
The final defendant named in the complaint was the Fulton Market Employers Association and Associated Purveyors.
The original complaint alleged that the Genovese crime family has controlled the Fulton Fish Market and Local 359 since the 1930's and that commencing in the 1970's, Carmine Romano, an officer of Local 359, acted for the Genovese family in controlling the Market. The complaint alleged that in 1981 Carmine Romano and Peter Romano were convicted of criminal RICO violations and were given prison sentences, and that Local 359 was also convicted under RICO and was fined. The complaint alleged that, despite these criminal convictions, the influence of the Genovese crime family in the Fulton Fish Market continued, and that Vincent Romano succeeded his brother Carmine as the principal Genovese representative in the Market. The complaint contained various allegations of criminal activities by the Genovese family in the Fulton Fish Market—extortion, loansharking, gambling and theft.
The complaint alleged that Local 359 is controlled by the Genovese family and that this union "is a vital part" of Genovese control of the Fulton Fish Market, since the union can be used to threaten labor problems. It was also alleged that Anthony Cirillo is merely the "nominal" president of Local 359, and that he was handpicked by the Genovese family for this office. Vincent Romano is said to be the actual head of Local 359.
The complaint requested injunctive relief to prevent further violations of law, and also requested the appointment of a trustee for Local 359 and an administrator for the Fulton Fish Market. The complaint requested election of new Local 359 officers sometime in the future.
On December 1, 1987 the Government stipulated to dismiss the complaint as to the Welfare Fund, the Pension Fund and Nina Andrew. This stipulation also provided that the claims in the complaint against Anthony Cirillo and Dennis Faicco, in their capacity as trustees of the funds, would be dismissed.
On April 15, 1988 a default judgment was entered against the Genovese Organized Crime Family and against three of the defendants allegedly connected therewith—Thomas Contaldo, Colombo Saggese and Robert Gillio. Under the terms of the default judgment, these defendants are enjoined from having any dealings with Local 359 and from having any business dealings in the Fulton Fish Market or in any commercial seafood business in the Southern District of New York or elsewhere.
On the same day, April 15, 1988, the other 25 individual defendants named as being connected with the Genovese crime family entered into a consent judgment. Under this judgment, defendants Carmine Romano and Vincent Romano are enjoined from having any dealings with Local 359 and from having any business dealings in the Fulton Fish Market. Certain other defendants are enjoined from having dealings with Local 359, but are not prevented from engaging in business in the Market. All defendants are made subject to injunctive provisions forbidding extortion, gambling and loansharking, and also forbidding them from dealing with Local 359 in any illegal manner. The consent judgment provides for the appointment of an administrator for the Fulton Fish Market whose duty it is to ensure compliance with the consent judgment and the default judgment.
The action was dismissed as to the Fulton Market Employers Association and Associated Purveyors by order dated July 6, 1988, consented to by the Government.
On June 4, 1988 the Government filed an amended complaint. It is directed solely against the union defendants — Local 359 and, as now limited, to two of its officers, Cirillo and Faicco.
Although only the union and certain of its officers are named as defendants in the amended complaint, it basically repeats the lengthy allegations in the original complaint about the control of the Fulton Fish Market by the Genovese crime family and about Genovese criminal activities in the Market. As to the union defendants, the essence of the allegations of racketeering in violation of RICO are the same in the amended complaint as they were in the original complaint — Genovese control of Local 359 and use of the union for criminal activities.
The amended complaint requests, as did the original complaint, that certain officers of Local 359 be removed, that a trustee be appointed for the union and that election of new officers be held sometime in the future. As already indicated, the request for removal of officers has now been limited to Cirillo and Faicco.
The amended complaint alleges various types of criminal activity committed by Cirillo and Faicco, acting in conjunction with the Genovese crime family. The only allegation of crime against the union itself is the claim of illegal receipt of money, in violation of the Taft-Hartley Act, for which the union was convicted in 1981. As the issues are now defined, the Government does not contend that this matter is of any relevance to the question of whether Cirillo and Faicco should be replaced by a trustee and later by newly elected officers. However, the union remains as a defendant in the case because it would be affected by the relief the Government requests against Cirillo and Faicco. Following the trial held August 1-17, 1988 the Government's claims of criminal acts committed by Cirillo and Faicco were refined and limited in the Government's post-trial briefs, in its presentation at the oral argument held August 25, 1988, and in a letter dated September 19, 1988.
The Government contends that it is entitled to civil RICO remedies under 18 U.S.C. § 1964 as a result of violations of 18 U.S.C. § 1962(c), which provides:
(c) It shall be unlawful for any person employed by or associated with any enterprise engaged in ... interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise's affairs through a pattern of racketeering activity....
The statute provides for a number of possible equitable remedies to prevent and restrain violations of § 1962. It is conceded that removal of Cirillo and Faicco from their union offices would be authorized by the statute if they were found to have violated § 1962 and if such a remedy were necessary to prevent further violations.
A "pattern of racketeering activity," within the meaning of § 1962(c), means at least two "acts of racketeering activity" committed within certain specified periods of time. 18 U.S.C. § 1961(5). An act of racketeering activity is one of the federal or state crimes listed in § 1961(1). The parties concede that, in a civil RICO action, the Government may prevail if it proves the necessary elements by a preponderance of the evidence.
It is agreed that the Fulton Fish Market is an "enterprise" within the meaning of the statute. Moreover, there appears to be no question but that the Genovese crime family was, at least in the past, heavily involved in criminal activity in the Fulton Fish Market, including the use of Local 359 to further the Genovese family's criminal objectives.
However, the union defendants contend that following the criminal convictions of 1981, the union was effectively purged of Genovese control and influence. The union's International established a trusteeship of Local 359 which lasted from 1981 until 1983. A new slate of officers headed by Anthony Cirillo was elected in 1983 with the concurrence of the International. Faicco came to the union thereafter, first as an employee and then as an officer.
The union defendants concede that Vincent Romano was involved in the Fulton Fish Market following the conviction of his brother Carmine in 1981. They concede that this involvement lasted until the time of the present litigation. Moreover, they have not attempted to rebut the Government's evidence that Vincent...
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