$100+ Million Verdict for Men Framed by the FBI in Mafia Slaying is Upheld

A federal appeals court upheld yesterday a landmark verdict for four men framed by the FBI in a gangland slaying, although the appellate judges said the $101.7 million damage judgment awarded by a lower court was “at the outer edge of the universe of permissible awards.’’

The US Court of Appeals for the First Circuit said the 2007 damage judgment to the families of Peter J. Limone, Joseph Salvati, Louis Greco, and Henry Tameleo, believed to be the largest of its kind nationally, was considerably higher than any of the three appellate judges would have ordered. “But when we take into account the severe emotional trauma inflicted upon the scapegoats,’’ the appeals court wrote of the wrongly imprisoned men, “we cannot say with any firm conviction that those awards are grossly disproportionate to the injuries sustained.’’

Limone, now 75, of Medford, spent more than 33 years in prison as a result of his wrongful conviction in the 1965 murder. Salvati, now 76, of the North End, was in prison for more than 29 years. The other two men, Greco and Tameleo, died in prison after decades of imprisonment.

Juliane Balliro, a Boston lawyer for the Limones and Tameleos, said she had expected the appeals court to uphold the ruling by US District Court Judge Nancy Gertner. “We hope the government will pay this award and allow these folks to move on with their lives and enjoy what little time they have left with their families,’’ she said.

She said the Justice Department can seek to appeal to the full Court of Appeals for the First Circuit or to the Supreme Court, but predicted those challenges would fail. “It really is time for the government to put the sordid past of the FBI behind them and just move on,’’ she said.

Beverley Lumpkin, a Justice Department spokeswoman in Washington, said the government is reviewing the ruling, but she declined to comment further.

In a dramatic ruling on July 26, 2007, Gertner found the FBI “responsible for the framing of four innocent men’’ in the murder of a small-time criminal, Edward “Teddy’’ Deegan, in a Chelsea alley.

She concluded after a 22-day bench trial that the FBI deliberately withheld evidence of the four men’s innocence and helped hide the injustice for decades.

The discovery of secret FBI files that were not handed over during the men’s 1968 state murder trial prompted a state judge in 2001 to overturn the murder convictions of Limone and Salvati. Limone was immediately freed from prison. Salvati had been paroled in 1997. The convictions of Tameleo and Greco were later set aside posthumously.

Documents in the Deegan slaying showed that the FBI knew that the key witness in the case, notorious hitman-turned-government witness Joseph “The Animal’’ Barboza, may have falsely implicated the four men while protecting one of Deegan’s real killers, Vincent “Jimmy’’ Flemmi, an FBI informant.

Gertner found that the FBI protected Barboza and Flemmi because both provided valuable information against the Mafia, which was the bureau’s top priority at the time.

During oral arguments before the appeals judges in May, lawyers for the Justice Department contended the FBI could not be held liable for malicious prosecution because the four men were prosecuted in state court by state authorities. The appellate court agreed yesterday, saying FBI agents helped the state make its case but did not initiate it.

Nevertheless, the appeals court said Gertner was right to hold the government liable for intentional infliction of emotional distress by covering up evidence that the four men were innocent.

Writing for the court, Judge Bruce M. Selya wrote that the FBI “stooped too low’’ to try to stamp out organized crime and that “the large damage awards mark the last word of a sad chapter in the annals of federal law enforcement.’’

Thanks to Jonathan Saltzmen

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The First Family: Terror, Extortion, Revenge, Murder, and the Birth of the American Mafia

Author Mike Dash makes lavish claims at the beginning of "The First Family," noting that "hundreds of books have been written about the Mafia, but this one is different from the rest. focus is the birth of the American branch of the fraternity during the years between 1892 and 1930 — a period that has, to my astonishment, been almost entirely neglected." That neglect means readers of Mafia books are usually uncertain why the United States of America ended up as the stronghold of a violent Sicilian brotherhood that terrorized entire urban areas.

For many years, I reported about organized crime, especially the activities of Sicilian Americans. That meant reading lots of books as background for my reporting. The glamorization of murder, the treatment of Mafia bosses as twisted heroes with catchy nicknames, the failure to explain how Sicilian-American crime syndicates operated in ways similar to Fortune 500 corporations, used to enrage me.

It's a shame Dash's book was unavailable to me back then. Like so many researchers, I have learned that the past is prologue. Dash has conducted painstaking research about the past of the Mafia, in Sicily and, beginning during the 1890s, across the United States. Dash's book does venture into matters previously unknown to me.

Before Dash's research, the "knowledge" spreading throughout American society — often due to popular-culture iterations such as "The Godfather" — came from sources so vague that many media consumers believed the mobsters were Italian American, rather than Sicilian American. The distinction is deeply important to those of Italian descent, and meaningful to an accurate history of organized crime.

Dash, a British academic historian/popular journalist, seems to have learned about every immigrant Sicilian mobster, every murder committed by them, every scheme to extort money from law-abiding Americans. His book is impressive, but so unrelenting in its description of gore that I often felt queasy.

When Dash occasionally gives the gore a rest, he relates little-known stories, not only about the criminals, but also about law-enforcement officers determined to alleviate the violence while resisting tempting bribes from Mafia leaders.

Among the memorable protagonists are Giuseppe Morello, founder of the first Mafia family to rule the New York City crime scene. Born in Corleone, Sicily, during 1867, he arrived in the United States during 1892. Although already an experienced, ruthless criminal, Morello mostly avoided prison time because he insulated himself well from the dirty deeds. Police and prosecutors finally made criminal charges stick, leading to Morello's imprisonment from 1910 to 1920. But even while imprisoned, Morello managed to direct criminal activity. He could not be halted by government authorities. It took a rival Mafia organization to silence Morello — via a 1930 murder.

On the law-enforcement side, Dash provides an especially rich word portrait of William Flynn, a New York City native who directed that city's branch of the U.S. Secret Service. Flynn pursued members of the Morello family relentlessly, even managing to infiltrate the seemingly impregnable Mafia inner circle.

The rest of the cast is huge. But because Dash provides a detailed, well-organized cast of characters at the front of the book, readers can erase lingering confusion quickly.

"The First Family" provides well-researched history for readers fascinated, and even repulsed, by organized crime.

Thanks to Steve Weinberg - the author of eight nonfiction books, most recently "Taking on the Trust: The Epic Battle of Ida Tarbell and John D. Rockefeller," just published in paperback.

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Life in Prison for Genovese Crime Family Capo Angelo Prisco

ANGELO PRISCO, a captain in the Genovese Organized Crime Family of La Cosa Nostra, was sentenced today to life in prison by United States District Judge NAOMI REICE BUCHWALD in Manhattan federal court. PRISCO was convicted on April 27, 2009, after a two-week jury trial, of murder, racketeering, racketeering conspiracy, robbery, extortion, firearms offenses, arson, stolen property offenses, loansharking, and operating an illegal gambling business. According to documents filed in this case, the evidence at trial, and statements made at today's sentencing proceeding:

PRISCO was "made," or inducted, as a member of the Genovese Organized Crime Family in the late 1970s, and was later promoted to the supervisory position of captain. In his capacity as a captain, PRISCO supervised, oversaw, and profited from the criminal activities of his own crew of Genovese Family Soldiers and associates, which operated in the New York City area and in New Jersey.

On June 2, 1992, PRISCO arranged the murder of his first cousin, ANGELO SANGIUOLO. PRISCO received the order to kill SANGIUOLO from VINCENT GIGANTE, a/k/a "The Chin," who was then the boss of the Genovese Organized Crime Family. GIGANTE ordered the murder because SANGIUOLO had been stealing from another Genovese Organized Crime Family soldier, ANTHONY PALUMBO. PRISCO assigned two of his own crew members, JOHN LETO, a/k/a "Johnny Balls," and PAUL GACCIONE, a/k/a "Doc," to carry out the murder. PRISCO then devised a plan to lure SANGIUOLO to PRISCO's Bronx, New York, social club. After SANGIUOLO arrived, PRISCO told him to get into a van with LETO and GACCIONE, on the pretense that LETO and GACCIONE would help SANGIUOLO with a problem SANGIUOLO was having with another person. Inside the van, LETO shot SANGIUOLO numerous times, killing him, then left his body in the back of the van in the parking lot of a Bronx McDonald's. PRISCO then picked up LETO at the McDonald's, and went with him to dispose of the murder weapon.

PRISCO also was convicted of conspiring to commit robberies with members of his crew. In 1991 and 1992 robberies, PRISCO oversaw various crew members who carjacked and robbed at gunpoint jewelry dealers transporting large quantities of gold and other jewelry they had purchased in the Dominican Republic. PRISCO received $20,000 in cash from one robbery and a bag of gold worth about $50,000 from another robbery. PRISCO then bragged at his Bronx social club about the armed robberies, passing around a relevant newspaper article.

From 2003 to 2005, PRISCO ordered, approved, and supervised multiple violent home invasion robberies targeting individuals believed to keep cash in their homes, during which numerous victims were tied up and beaten. PRISCO had to "green light" the robberies before they could occur, and received a portion of any money stolen. PRISCO also instructed his crew members to "play dumb" if they discovered they had robbed another person tied to organized crime.

PRISCO also was convicted of committing extortion and conspiracy to commit the extortion of a Manhattan construction company owner. PRISCO and his crew first extorted the victim's company in 1997, when PETER RIZZO, an associate under PRISCO at the time, assaulted and broke a glass coffee pot over the head of the victim's business partner. Members of PRISCO's crew then pressured the victim and his business partner to drop the charges against RIZZO stemming from this 1997 assault. Seven years later, various other members of PRISCO's crew -- acting on his orders and following his advice about how to collect the money -- returned to the same construction company and threatened to cut off the victim's finger and harm the victim's family. The victim paid PRISCO and his crew a total of $50,000. Since the 1990s, PRISCO has extorted various other individuals and businesses, including the owner of a diner in the Bronx; the owner of a night club in Manhattan; and an electrical contractor in Brooklyn.

United States Attorney PREET BHARARA stated, "This conviction and the life sentence imposed today on Angelo Prisco puts an end to his decades-long career as a leader of the Genovese Organized Crime Family -- one marked by violence and intimidation. Today's sentence, and the dismantling of the defendant's mafia crew, serves as a reminder that those who pledge themselves to a life of crime will pay a high price in the end."

Mr. BHARARA praised the work of the FBI; the New Jersey State Commission of Investigation; the Orange County, New York District Attorney's Office; the Westchester County, New York District Attorney's Office; the New York State Police; the New York City Office of the Chief Medical Examiner; the New York Police Department; the United States Bureau of Prisons; the Morris County, New Jersey Prosecutor's Office; and the Rockaway Township, New Jersey Police Department for their contributions.

This case is being prosecuted by the Office's Organized Crime Unit. Assistant United States Attorneys ELIE HONIG and LISA ZORNBERG are in charge of the prosecution.

Thanks to ATN

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Ban on Video Gambling Supported by The Chicago Crime Commission

The Chicago Crime Commission encouraged the DuPage County Board to ban video gambling machines in DuPage County. They warned that the long-term cost to society would far outweigh any short-term revenue gains if video gambling machines are installed. Law enforcement and other regulators would be left with a virtually uncontrollable situation.

"The decentralized nature of video gambling may soon turn Illinois into the 'Wild West' of gambling," said J.R. Davis, Chairman of the Chicago Crime Commission. "I would encourage DuPage County as well as municipalities and counties throughout the state to ban the video gambling machines before they are ever installed," he added.

"Video gambling has been called the crack cocaine of gaming for good reason. With the proliferation of video gambling, communities can expect to experience an increase in crime and a rise in other social ills connected with gambling expansion," he continued.

According to legislative analysis, about 66,000 video gambling machines may soon be scattered throughout communities in Illinois. While a law enforcement needs analysis is currently non-existent, Davis estimates Illinois will soon have to hire hundreds of new police and regulatory personnel to begin addressing the law enforcement requirement of this gambling expansion. "Unfortunately, I haven't heard anyone address this reality or speak to how these needs will be met," said Davis.

Davis also expressed concern that it would be difficult if not impossible to curb the influence of organized crime in this new, tough to regulate enterprise. "It is a fact that organized crime is known to gravitate towards gambling and other ancillary businesses," he continued.

Additionally, Davis said that the state's self exclusion program, which prohibits problem gamblers from entering casinos, would be left hobbled if video gambling proliferates in Illinois. "I have significant concern that entire families will be left penniless because Mom or Dad will be feeding their entire paycheck into the video poker machines," he concluded.

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Russian Organized Crime Gangs Linked to Cyber Attacks on Georgia

The cyberattacks against Georgia a year ago were conducted in close connection with Russian criminal gangs, and the attackers likely were tipped off about Russia's intent to invade the country, according to a new technical analysis, much of which remains secret.

The stunning conclusions come from the U.S. Cyber Consequences Unit, an independent nonprofit research institute that assesses the impact of cyber attacks. A 100-page technical analysis is only being made available to the U.S. government and some cybersecurity professionals, but the organization did release a nine-page summary early Monday.

The report in part confirms some of the suspicions of observers, who theorized that the distributed denial-of-service attacks (DDOS), which crippled many Georgian Web sites, had its roots in Russia.

The report was chiefly produced through investigations by the CTO of the U.S. Cyber Consequences Unit, John Bumgarner. It involved analyzing a raft of data collected as the attacks were going on and afterwards. The data included server logs from a variety of stakeholders, some of whom would not share information with each other, said Scott Borg, director and chief economist of the institute.

Russia launched a five-day military campaign in August 2008 that corresponded with Georgia's attempts to assert greater control over the South Ossetia and Abkhazia regions, which have strong ties to Russia. Bombers struck targets throughout the country, and at the same time Georgian media and government sites fell under DDOS attack.

That timing doesn't appear to be a coincidence. The attacks were executed with an efficiency that indicated pre-planning, and the cyberattacks also preceded the first news stories of Russia's military intervention, according to the report.

"Many of the cyber attacks were so close in time to the corresponding military operations that there had to be close cooperation between people in the Russian military and the civilian cyber attackers," the report said. "Many of the actions the attackers carried out, such as registering new domain names and putting up new Web sites, were accomplished so quickly that all of the steps had to be prepared earlier."

Borg said that the institute is confident that the Russian government didn't directly carry out the attacks. But it is clear that Russia appeared to be leveraging civilian nationalists who were ready to take cyber action, perhaps with some low-level encouragement.

"It appears that the military invasion was taking into account the help they were about to receive ... by the cyberattack," Borg said.

It is not clear, however, at what level the interaction between Russian government officials and those who executed the attacks occurred. But it does appear that the loose coordination will likely become part of Russia's standard operating procedure from now on, Borg said.

A total of 54 Web sites were attacked, most of which would have benefited the Russian military campaign by not functioning, Borg said. By shutting down media and government sites, it was harder for Georgia to communicate to the public what was going on. Financial transactions were disrupted, and the National Bank of Georgia had to cut off its Internet connection for 10 days, according to the report.

Social networking sites helped recruit volunteers who traded tips on online forums in Russian, with one English-language forum hosted in San Francisco, the report said. Computers servers that had been used in the past to host malicious software by Russian criminal gangs were also used in the attacks.

"It appears that Russian criminal organizations made no effort to conceal their involvement in the cyber campaign against Georgia because they wanted to claim credit for it," the report said.

DDOS attacks work by bombarding a Web site with too many page requests, which causes it to become unavailable due to bandwidth problems unless security measures are taken. The attack is executed by a botnet, or a network of PCs that become infected with malicious code controlled by a hacker.

The code used to command those machines to attack the Web sites appeared to be customized specifically for the Georgia campaign, the report said. Three of the software programs used were designed to test Web sites to see how much traffic they can handle.

A fourth program was originally designed to add functions to Web sites but was altered by the hackers to request nonexistent Web pages. That tool, which is HTTP-based, proved more efficient than the ICMP-based (Internet Control Message Protocol) attacks used against Estonia in 2007, the report said.

Further evidence showed that Georgia could have been hit much harder. Some of Georgia's critical infrastructure was accessible over the Internet. While the civilian cyber attackers had signs of considerable expertise, "if the Russian military had chosen to get directly involved, such attacks would have been well within their capabilities," the report said.

"The fact that physically destructive cyberattacks were not carried out against Georgian critical infrastructure industries suggests that someone on the Russian side was exercising considerable constraint," it said.

Thanks to Jeremy Kirk

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