Monday, September 22nd17.6°C
23284

Son of former Philadelphia mob boss convicted of defrauding publicly traded company

CAMDEN, N.J. - The son of a former Philadelphia mob boss and another reputed mob associate were convicted Thursday of federal fraud charges for taking over a Texas-based mortgage company and then plundering its assets to buy homes, luxury cars and even a yacht.

Nicodemo S. Scarfo, the son of former Philadelphia Mafia leader Nicodemo D. Scarfo, was convicted of multiple counts including racketeering conspiracy, conspiracy to commit securities fraud and wire fraud.

A second lead defendant, Salvatore Pellulo, who prosecutors said ran the business takeover, was convicted of similar charges, including racketeering conspiracy and conspiracy to commit securities fraud.

The government said Scarfo and his co-defendants used threats of harm to take over the board of publicly held FirstPlus Financial Group, an Irving, Texas-based mortgage company, and then had the company buy shell companies they owned so they could take out the assets. The company is now defunct.

Prosecutors said the conspirators plundered $12 million in less than a year, buying homes, weapons, ammunition, a plane, luxury cars, jewelry and an $850,000 yacht they named "Priceless." They also alleged some of the money was used to pay organized crime debt.

The government said the men conspired in 2007 to get the money from FirstPlus two ways — first by hiring shell companies owned by Pelullo and Scarfo as consultants, then by buying other shell companies they formed.

John and William Maxwell, brothers who were executives at FirstPlus, were found guilty Thursday of wire fraud.

Scarfo's former lawyer, Donald Manno, and two lawyers for FirstPlus, David Adler and Gary McCarthy, were also charged in the fraud case. They were acquitted of all counts.

During the trial, prosecutors played for jurors recordings that they said established that the business dealings were mob-related, including some jailhouse recordings of conversations involving the elder Scarfo in which his son and Pellulo talk about the company takeover.

In one, the younger Scarfo says, "We're a good six to 10 months off from being able to help everybody." The government said "everybody" meant crime associates.

The elder Scarfo, who was also known as "Little Nicky," led the Philadelphia Mafia until 1988 when he was convicted of racketeering and sent to prison.

The Canadian Press


Read more Business News

23226


Recent Trending




Today's Market
S&P TSX15129.00-136.35
S&P CDNX928.09-26.97
DJIA17172.68-107.06
Nasdaq4527.689-52.10
S&P 5001994.29-16.11
CDN Dollar0.9060+0.0003
Gold1215.90-2.00
Oil91.50-0.91
Lumber325.40-1.20
Natural Gas3.91+0.007

 
Okanagan Companies
Pacific Safety0.17+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.10
Cantex0.04-0.01
Anavex Life Sciences0.2195-0.0035
Metalex Ventures0.05-0.01
Russel Metals35.37-0.38
Copper Mountain Mining2.40-0.26
Colorado Resources0.16-0.005
ReliaBrand Inc0.0206-0.0043
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.27-0.02

 



22908

FEATURED Property
2070188766 Marin Crescent
3 bedrooms 3 baths
$729,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_



23448

23448


Member of BC Press Council


22707