Mafia Rico Laws Could be Used Against Cyber Rings Next

The set of laws that has allowed federal prosecutors to bring down traditional organized crime gangs should be applied to international cyber crime rings, a top Department of Justice official told a congressional committee on Nov. 15.

The recommendation was one of several DoJ Deputy Section Chief Richard Downing said should be made to the Computer Fraud and Abuse Act (CFAA) during a House Judiciary Subcommittee on Crime, Terrorism and Homeland Security hearing on cyber security’s new frontiers. The committee is considering updating the law.

Downing said the CFAA should be modified to allow offenses to be subject to Racketeering Influenced and Corrupt Organizations Act (RICO) statutes. RICO extends penalties for crimes performed by organizations and allows the leaders of organized crime groups to be tried for the crimes they order subordinates to do.

The move, said Downing, is needed because advancing computer technology has become a substantial tool for organized crime. Downing said “criminal organizations are operating today around the world to: hack into public and private computer systems, including systems key to national security and defense; hijack computers for the purpose of stealing identity and financial information; extort lawful businesses with threats to disrupt computers; and commit a range of other cyber crimes.” The organizations, he added, are closely tied to traditional Asian and Eastern European crime organizations.

Downing said RICO has been used successfully over the years to bring down “mob bosses to Hells Angels to insider traders” and would be effective in the fight against organized cyber criminals.

Downing also recommended the CFAA’s complex sentencing provisions be streamlined and simplified and some maximum sentences be increased to reflect the severity of some cyber crimes.

Prosecutors should also be given more latitude in pursuing the theft of passwords, user names and login credentials. Downing proposed that CFAA not only cover password theft, but other authentication methods, including those that confirm a user’s identity, using biometric data, single-use passcodes or smart cards. It should also cover login credentials used to access to any “protected” computer (defined in the statute quite broadly), not just government systems or computers at financial institutions, he said.

Thanks to Mark Rockwell

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David Schwimmer Joins Cast of Movie About Mob Killer Richard 'The Iceman' Kuklinski

Former 'Friends' star David Schwimmer is all set to play a mafia contract killer in new film about Richard 'The Iceman' Kuklinski.

The 45-year-old, who played nice guy Ross Geller in the hit sitcom, will portray Jack Rosethal opposite Ray Liotta's Mafia's boss in the film.

The titular character will be played by 'Revolutionary Road' star Michael Shannon, reported Ace Showbiz.

Kuklinski claimed to have killed more than 250 people between 1948 and 1986.

'Crazy Heart' actress Maggie Gyllenhaal will also be a part of the film.

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Kefauver Hearings Hit Las Vegas

On Nov. 15, 1950, the Senate Special Committee to Investigate Organized Crime in Interstate Commerce held the seventh in a series nationwide hearings in Las Vegas. Commonly referred to as the Kefauver Hearings, the televised hearings kept an estimated 30 million Americans on the edge of their seats as they watched with rapt attention a parade of crime bosses, bookies, pimps, and hit men discuss a salacious topic that had never before been publicly exposed or discussed. Held in 14 cities across the country, the hearings were led by U.S. Senator Estes Kefauver (Democrat-Tennessee) to expose and control organized crime.

Yet, ironically, historians generally credit the hearings with cementing Las Vegas as the gaming capital of the country since the crackdown on illegal gambling that followed the hearings drove operators to Las Vegas and Nevada – known as the "open city," and the only city/state in the country where gambling was then legal.

The hearings were also significant for revolutionizing the then new medium of television as a source for news and current events. Twice the audience of the 1950 World Series flocked to restaurants, bars and neighbors' homes to watch the all-day hearings. Some school systems even dismissed students early so they could watch with their parents.

As The Mob Museum prepares to open in just three months on Valentine's Day 2012, final touches are being put on the restoration and rehabilitation of The Museum's centerpiece - the courtroom where the Las Vegas Kefauver hearings occurred. Soon you'll be able to explore this notorious piece of Mob history for yourself.

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Reputed Mob Boss, Thomas Gioeli, to Miss Daughter's Wedding

A reputed Mafia boss won't be trading his prison stripes for a pinstripe suit on his daughter's wedding day.

Brooklyn Federal Judge Brian Cogan rejected on Wednesday Thomas (Tommy Shots) Gioeli’s request for a prison furlough to attend his oldest daughter’s nuptials.

Cogan stated that he "conferred with the U.S. Marshals Service and with other judges in the courthouse and concludes such a release is not feasible."

Prosecutors opposed the wedding pass, arguing it would be impossible for the feds to prevent Gioeli from slipping messages to underlings at the ceremony and reception, endanger cooperating witnesses scheduled to testify against him.

Cogan cited security issues and the serious charges against Gioeli in denying the request. The alleged Colombo family boss is on trial for six gangland killings.

Earlier this year Cogan approved a plan to have U.S. Marshals escort Gioeli from the Metropolitan Detention Center in Brooklyn to the Long Island Federal Courthouse to view the casket containing his deceased father. Gioeli apparently objected to paying his last respects in the courthouse garage and refused to leave his prison cell.

Federal Judge Nicholas Garaufis allowed Bonanno associate Patrick Romanello to leave prison to attend his two daughters’ weddings in 2004 and 2005. But sources said the Romanello situation was different because he was not a high-ranking mobster who could order acts of violence as Gioeli is capable of doing.

Gioeli's lawyer, Adam Perlmutter, said the father of the bride deserved to give his daughter away. "I find it sad that in America an individual who enjoys the presumption of innocence can be denied the right to attend his father's funeral and walk his daughter down the aisle," defense lawyer Adam Perlmutter said.

Thanks to John Marzulli

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Twenty Defendants, Including Five Allegedly Tied to the Zetas Cartel, Indicted on Federal Narcotics Charges

Twenty defendants are facing federal narcotics charges, including five alleged members of a Chicago-based cell of the Zetas Mexican drug cartel who were responsible for transporting millions of dollars in drug proceeds between Chicago and Mexico, federal law enforcement officials announced. A joint investigation led by the Drug Enforcement Administration and the Federal Bureau of Investigation resulted in the charges, as well as accumulated seizures during 2010 of more than $12.4 million cash and approximately 250 kilograms of cocaine in the Chicago area. An additional $480,000 cash and two kilograms of heroin were seized yesterday.

Federal agents executed simultaneous arrests in the Chicago area and in Laredo, Tex., of defendants stemming from the multi-jurisdiction investigation of drug-trafficking and the flow of its narcotics proceeds. Twelve of the 20 defendants indicted in Chicago were arrested in Chicago and a 13th in Laredo.

The 20 Chicago defendants were charged in five separate indictments that were returned by a federal grand jury on Nov. 2 and unsealed following the arrests. The 12 Chicago defendants arrested appeared in U.S. District Court and remain in federal custody pending detention hearings. Five defendants remain fugitives; one was already in federal custody and another is hospitalized.

The seizures of cash and heroin occurred during the arrests and execution of search warrants at the residence of one defendant in Bellwood and another defendant’s residence in Bolingbrook, as well as a safe deposit box.

All 20 Chicago defendants were charged with various narcotics offenses, including conspiracy to possess and distribute quantities of cocaine and using a telephone to facilitate narcotics trafficking. The five alleged members of the money transportation cell were also charged with conspiracy to transfer narcotics proceeds outside the United States. If convicted, 12 defendants face a mandatory minimum of 10 years to a maximum of life in prison and a $10 million fine, while the remaining eight defendants face a mandatory minimum of 5 years to a maximum of 40 years in prison and a $5 million fine. The money transportation conspiracy carries a maximum of 20 years in prison and fine of twice the value of the money involved. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

“One indictment in this group signals the first federal prosecution in Chicago of defendants allegedly tied to the Zetas drug-trafficking cartel, and the seizures of cash represented a significant blow to the operation of this alleged money transportation cell,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. He praised the dedication and teamwork of the local, state and federal law enforcement agencies in Chicago that worked tirelessly to disrupt these alleged drug-trafficking conspiracies.

Mr. Fitzgerald announced the charges together with Jack Riley, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Gary J. Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago; Alvin Patton, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Garry F. McCarthy, Superintendent of the Chicago Police Department.

“DEA’s commitment to hitting alleged drug trafficking organizations from all angles is especially evident when you consider the impact of the seizure of over $12 million in suspected drug proceeds. In the specific indictment that alleges affiliation of some of the defendants with the Zetas, the influence of Mexican criminal organizations in the wholesale Chicago drug market is apparent. The severing of those ties is of the upmost importance to the DEA,” Mr. Riley said.

Mr. Grant said: “The extensive cash seizures made during the course of this investigation illustrates how lucrative the illicit drug trade can be. Combined with the apparent presence of the Zetas in the Chicago area, the charges announced today should serve as a wake-up call to law enforcement throughout the state.”

The prosecutions were coordinated with the U.S. Attorney’s Office for the Southern District of Texas, and federal prosecutors in the Western District of Texas also assisted in the investigation. The Illinois Attorney General’s Office conducted a separate but related investigation that resulted in the arrest of eight defendants on state narcotics charges last week in Galesburg, Ill. The federal investigation was conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High-Intensity Drug-Trafficking Area Task Force (HIDTA).

One indictment alleges that defendant Eduardo Trevino, a fugitive believed to reside in Nuevo Laredo, Mexico, directed a money transportation network for the Zetas from Nuevo Laredo, and that this network coordinated the transfer of money from places such as Chicago to Laredo, and then from Laredo to Mexico. At the direction of the Zetas, defendant Salvador Estrada allegedly collected, processed and concealed cash from the sale of drugs so that the narcotics proceeds could be transported by truck drivers, including defendants Miguel Arredondo and Vicente Casares, from Chicago to Laredo, knowing that the proceeds would be transported to the Zetas in Mexico. Defendant Juan Aguirre allegedly worked with the others to coordinate the delivery of cash proceeds to truck drivers.

Estrada allegedly identified and maintained safe houses where drug proceeds were secretly collected, packaged and concealed, such as 1241 South Wenonah Ave., Berwyn, and 3800 West 24th St., Chicago.

According to the indictment, the following seizures, totaling $12,452,685, were made during the course of the investigation:

• $9,428,950, from the 24th Street stash house on April 30, 2010;
• $2,000,010, also on April 30, 2010;
• $999,310, on May 27, 2010; and
• $24,415, on Dec. 18, 2010, along with a Mosberg 100 ATR .308 rifle and a Colt .22 semi-automatic handgun.

The 14-count indictment against Trevino and the five alleged Chicago cell members seeks forfeiture of approximately $13 million, including the $12.45 million seized previously. Five of the six (named above) were charged with conspiracy to transport narcotics proceeds outside the United States. Together with defendant, Aureliano Montoya-Pena, all six were charged with conspiracy to possess and distribute more than five kilograms of cocaine and various other narcotics offenses.

The other four indictments charge the remaining 14 defendants with various narcotics distribution offenses.

The government is being represented by Assistant United States Attorneys William Ridgway, Gregory Deis and Heather McShain.

The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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