Good news for the Philly Mob, all of the defendants charged in last month’s sweeping racketeering indictment have now been granted bail.
A federal judge on Tuesday ordered the release of reputed Mob Underboss Steven Mazzone despite federal prosecutors’ attempts to use more secretly recorded tapes to block Mazzone’s path to freedom, at least for now.
Mazzone was ordered released on $200,000 bail after defense attorneys John Meringolo and Lou Busico mounted a strong rebuttal to the government’s motion to keep Mazzone in prison pending his trial on racketeering/extortion charges.
Sources say Mazzone posted several properties to secure his release. He will also be held on house arrest with electronic monitoring in the ramp up to his possible trial, months from now. He was released Wednesday evening from the Federal Detention Center in Center City.
“Obviously, we are very pleased with the judges decision. All along, John and I believed the facts and the law required Mr. Mazzone to be released. John made spectacular arguments in his brief,” attorney Louis Busico said after the judge’s ruling.
A motion filed by prosecutors last week asked a federal judge to keep Mazzone in prison pending his trial on racketeering, loansharking and extortion charges. Mazzone was indicted along with 14 others late last month and has been behind bars ever since. Prosecutors continued to insist the 57-year old Mazzone was a flight risk and a danger to the community.
In a 13-page document, assistant U.S. Attorney Jonathan Oritz cited several newly disclosed and secretly recorded tapes of Mazzone and others speaking about Mazzone. The most damaging one appears to be this statement allegedly made by Mazzone describing what it means to “kick up” proceeds to the Mob hierarchy.
“None of youse are owed anything. It’s what you’re going to bring here,” Mazzone allegedly said. “You know what I mean? It’s what you’re going to bring here. This is the family, this is where you bring it to. It’s not for you.”
Another potentially damaging reference in the prosecution document goes on to say “The defendant (Mazzone) is also referred to as “Underboss” at several other points throughout the government’s recordings, including by co-defendant and capo Domenic Grande.”
The court filing also further describes the Philly Mob’s alleged attempt to retake control over criminal activity in Atlantic City. It claims Mazzone “planned and directed the extortions of at least three individual victims, including a 78 year old bookmaker in the Atlantic City region.”
It goes on to say: “Throughout the government’s recordings, co-conspirators are captured reassuring each other that their actions have been approved by and/or were directed by the defendant. For example, when confronted by another LCN associate who was concerned that he was going to be “pinched” for “shaking guys down,” co-defendant Ken Arabia responded that “Stevie told me to go down there and get them. I went down there and did what he told me … I’m just doing what my guy told me to do.”
“Several times, when discussing the proceeds of their criminal activities, co-defendants reference the fact that a percentage of the profits will be going to “Stevie.” At one point, co-defendant Arabia is recorded telling the victim of one of the extortions that he is “direct with Stevie,” using the defendant’s reputation as a high-ranking member of the Philadelphia LCN to accomplish the extortion.”
Prosecutors also outlined Mazzone’s involvement in extortions. Stating, “The evidence of his involvement again includes recorded co-conspirator statements, many of them from the defendant’s former father-in-law and co-defendant Joseph Malone, a sub-bookie and loan shark in the LCN operation. For instance, explaining his urgency in needing to collect on a usurious loan, Malone states that his “son-in-law” is “breathing down my neck.”
“On other occasions, co-defendants Arabia and Castelli discuss debts owed to the defendant for gambling and loansharking. On a least one occasion, the Defendant was recorded personally accepting an interest payment on a usurious loan.”
Prosecutors also revealed that Mazzone was stopped by investigators in 2014.
“During a traffic stop conducted in 2014, the defendant was found in possession of betting slips, the names on which were later matched through wiretap evidence to sub-bookies in the LCN-backed gambling operation.”
As for the alleged drug activity outlined in the 40 page federal indictment, prosecutors added:
“While the defendant is not substantively charged with any drug trafficking activity, it is also worthy to note given his role in the enterprise that the government’s evidence shows that the Philadelphia LCN was deeply involved in drug trafficking, activity which had to be approved through the LCN hierarchy and the profits of which were required by rule to be “kicked up” to the defendant as Underboss.”
The prosecutors also addressed the number of character letters submitted by family members on Mazzone’s behalf in his request for bail.
“The defendant has produced a number of letters from friends and family attesting to his personal character and standing within the community. The defendant is clearly a family man. Unfortunately, his devotion is shared between both of his “families,” as two members of his actual family are also his co-defendants. The Philadelphia LCN is an association that is very important to its members, and which they pledge to hold over and above all other interests and obligations, including blood relatives. The defendant’s loyalty to his chosen “family” runs deep. The last time that the defendant was out on supervised release, he violated it by continuing to associate with
other LCN criminals. Clearly, based on the evidence in this case, he has maintained those associations even after that violation (before this very Court).”
Prosecutors also restated their claims that Mazzone was a danger to the community.
“The defendant is now more of a danger, specifically to the government’s witnesses, than he was a month ago. Now that he knows there are charges against him, and with discovery soon to follow, the defendant will be able to deduce which members of his organization secretly recorded him and are providing evidence against him. Given the threats of violence involved in this case, the history of the Philadelphia LCN as an organization, and their explicit policy of death to anyone who “betrays the family,” the government has grave concerns about the safety of its cooperating witnesses should the defendant be released.”
The prosecution’s new filing came after attorneys for Mazzone filed a motion Tuesday asking a federal judge to reconsider a decision to hold him without bail pending his trial on racketeering and extortion charges.
Attorneys John Meringolo and Lou Busico filed a 24-page motion in Philadelphia asking that the 57 yr. old Mazzone be released from the federal Detention Center where he’s been since being arrested several weeks ago on a 15-defendant Racketeering conspiracy case.
Meringolo cited the fact that none of the charges against Mazzone are violent crimes and occurred between 41-52 months ago. Meringolo said Mazzone’s last alleged crime was in 2017, yet FBI agents left him on the street and continued their investigations.
He maintained Mazzone was clearly not a danger to the community as prosecutors have alleged in previous hearings.
Meringolo, aka “Johnnie Motions”, went on to say in his motion to the court that Covid19 should also have some bearing on Mazzone’s release. He cited over 200 cases of corona virus at the detention center and said it was impossible to prepare for trial in this case because of Covid restrictions at the Arch Street lockup.
Meringolo also said Mazzone has deep ties to the community. He works two jobs, one at a gym, another at a furniture company in Bucks County. He helps take care of his 80 year old mother and has two daughters.
Lawyers submitted over a dozen character reference letters to the judge on Mazzone’s behalf, including one from a South Philadelphia priest.
Mazzone is prepared to post properties for bail along with a $500,000 surety bond signed by half a dozen friends and family members. He is also proposing house arrest and electronic monitoring pending trial.
Meringolo also took a swipe at the government’s cooperators. He cited their history of crimes like aggravated assault, robbery and third degree murder.
Anthony Persiano is a one time Philly mobster turned cooperator who is widely believed to have worn a wire against the Philly wiseguys charged in this case and tape recorded a Mob induction ceremony.
The FBI has stated that it has hundreds of hours of tape recordings in this case, over 300 recordings, according to a motion filed by prosecutors this week. That’s in addition to “months” of wiretap recordings on several different phones.
Meringolo also argues that Mazzone’s alleged presence at that Mob induction ceremony is not a crime.
Mob Captain Domenic “Baby Dom” Grande was granted bail Monday with conditions, according to his attorney, Brian McMonagle, who told Mobtalksitdown.com Grande must post $200,000 or properties of that value. He will also be held on house arrest.
Grande has also been in the Federal Detention Center in Center City Philadelphia since his arrest three weeks ago. He was initially denied bail and ordered held in pre-trial detention.
Grande’s bail hearing was conducted via Zoom with the judge in the case. Grande was being held on serious drug charges and racketeering conspiracy after being indicted along with 14 others, including Mazzone.
In his motion for Grande’s release on bail, McMonagle said:
“In the government’s motion they allege that there are tape recordings in which Mr. Grande discusses drug dealing with others. Obviously, even if true, approving of someone’s criminal behavior is not a crime. Similarly, discussing criminal activity is also not a crime….. There is simply no evidence that Mr. Grande took any action whatsoever towards the commission of a drug offense. Mr. Grande steadfastly maintains his innocence of this charged conduct, and the indictment supports that position.”
The motion goes on to say: “Nowhere in this indictment is there any allegation that Mr. Grande possessed controlled substances, delivered controlled substances, received proceeds from drug transactions or was even present when any alleged drug transaction took place.”
McMonagle proposed that Grande be released to home confinement and electronic monitoring. He stressed that Pre-Trial Services also recommended bail for Grande. Grande was prepared to post properties to secure his bail.
Mob Underboss Steven Mazzone and Grande were ordered held without bail pending their trial on racketeering, loansharking, extortion and drug charges. The charges stem from a seven-count, 40 page indictment charging the two wiseguys and 13 others.
Attorneys for both Mazzone and Grande appealed their pretrial detention after federal prosecutors convinced a judge two weeks ago both defendants were a danger to the community and a flight risk
Meringolo and co-counsel Lou Busico are working on Mazzone’s case and the bail appeal. Meringolo helped represent Philly Mob Boss Joey Merlino in the recent East Coast LCN case in New York. Bucks County attorney Lou Busico has represented Mazzone in the past.
All of the defendants in the case are scheduled for an initial appearance before the trial judge in this case on Jan. 8,2021.
Court records indicate Meringolo requested to be named co-counsel this week after Mazzone and co-defendant Domenic Grande were indicted along with 13 other wiseguys and associates last week, then ordered held without bail pending trial.
Meringolo is politely referred to by some local wiseguys as “Johnnie Motions” because of his well known expertise in crafting legal briefs and smartly written motions for his clients.
The widely respected Meringolo has won a number of high profile criminal cases in federal court in New York and has represented several top level New York mobsters in past years. He was co-counsel to longtime Mob Attorney Edwin Jacobs as part of Merlino’s legal team during the East Coast LCN trial.
After a mistrial in the case, Merlino plead guilty to a simple gambling charge and was sentenced to two years in prison. He was released after one year to a halfway house, then house arrest with the onset of the Covid19 pandemic. He was released last July.
Meringolo is also a professor at the Pace University Law School in New York.
He comes into this case as newly released public court documents obtained by Mobtalksitdown.com indicate the FBI tape recorded a Philly Mob induction ceremony at which Mazzone was present along with the up and coming indicted Mob Capo Dom “Teflon Dom” Grande.
The bombshell tapes reveal Mazzone and Grande’s alleged participation in the ceremony at which several new members of the LCN were made, including Mazzone’s brother Sonny. Grande was introduced as a new “Caporegime” or Capo.
Here is an part of the information in the pre-trial detention motion filed by federal prosecutors and the FBI:
“Throughout the investigation the FBI has obtained hundreds of hours of recordings of the various defendants, including of defendant Mazzone. Recordings include Mazzone directing the criminal activities of various
LCN members and associates, collecting funds derived from the illegal activities of LCN members and associates, and of being directly involved in a number of crimes.
Those recordings are in addition to a lengthy recording where Mazzone attended an official LCN induction ceremony for codefendant Salvatore Mazzone and other new LCN members.
In that recording the presiding LCN official oversaw the ceremony and asked the initiant, “Now, you’ll use these, for us. Right?” while pointing to a gun and a knife. Then later stated, “If I betray this family, betray my friends, I’ll burn in hell forever.” The new members were then formally introduced to the LCN members that were present and participating in the ceremony, including Mazzone, who was noted of having the title of “Underboss”.
Following the induction ceremony Mazzone was recorded explaining how he wanted the LCN to re-establish control over the criminal activities of Atlantic City, New Jersey.
Mazzone stated, “Got to get a hold back on Atlantic City, buddy! That’s what I want. That’s what I want. We have to get that back.” Then later, when explaining the manner in which to establish LCN control over the area, Mazzone stated, “I don’t want nobody just glomming our fucking shit. You
know what I mean? You understand what I’m saying? But we’re still street guys. Let’s face it…We’re fucking, we’re gangsters. I mean, you know, I’m not going to let no sucker take that.”
Mazzone then continued to name specific known criminals who he wished the LCN to extort, named specific LCN members and associates through whom the LCN would exert control, and the manner in which local criminals would pay illegal proceeds to the LCN.”
Mazzone’s defense attorney Louis Busico, issued the following statement on Saturday after Mazzone was ordered held pending his trial on a series of very serious charges :
“We will be filing an appeal to the trial court early next week. A thorough review of the indictment is DEVOID of ANY specific criminal conduct concerning Steven Mazzone,” Busico said. ” Thus far, we have only seen flowery language and the usual terminology about organized crime…..but nothing remotely specific about Steve. Bottom line, he’s been a model citizen for over a decade and his mother needs him home dearly.”
In a second pre-trial detention motion for Capo Domenic Grande. Federal prosecutors again revealed conversations involving Grande captured on tape by an undercover FBI informant.
Here is a segment of that newly released document:
“For instance, Grande was recorded, extensively, directing the activities of others, including LCN members and associates, in an effort to extort local bookmakers and loansharks into paying monies to the LCN. In that portion of the case, Grande instructed another LCN member to “plant the flag” of the LCN in the Atlantic City area and regain control of bookmakers and loansharks. He acknowledged that associates had their “hooks into” the local criminals and that the local criminals had to either pair with the LCN or “get the fuck out.”
During discussions of how to exert full control over the local criminals, Grande warned that because of their activities that they would soon “catch, like, an extortion beef.”
After a series of successful extortion attempts of local bookmakers, Grande was then recorded negotiating the manner in which an extorted bookmaker would split proceeds with the LCN. Grande provided contact information to the local bookmaker for the LCN bookmaking operation, run by codefendant Louis Barretta, and explained the manner in which the operation functioned. From there, Grande was later recorded collecting gambling debts, or making gambling payments, on over 30 times.
Regarding loansharking, Grande said, “see, like, I’m a loanshark. . . . I could put out, like, $42,000 right now and I got to tell people, ‘I’ll see you tomorrow.’” Grande then continued on recordings to arrange several loanshark loans on his own behalf, and on behalf of LCN Underboss Steve Mazzone, with an FBI informant. Both Grande and Mazzone were then recorded several times, accepting “juice”, or interest payments, and principal payments on those loanshark loans.
Grande was also recorded discussing drug trafficking. He was recorded telling an FBI informant to be “careful” when obtaining a kilogram of cocaine for sale but that the informant should “do what you gotta do” in order to sell the drugs. When speaking of obtaining and selling oxycodone and counterfeit oxycodone (made with heroin and fentanyl) Grande stated, “if you can get that man, I can fucking move thousands of them. . . . You know these kids sell them for fucking $20 a piece?”
Those recordings are in addition to a lengthy recording where Grande attended an official LCN induction ceremony for codefendant Salvatore Mazzone and other new LCN members.
In that recording the presiding LCN official oversaw the ceremony and asked the initiant, “Now, you’ll use these, for us. Right?” while pointing to a gun and a knife. Then later stated, “If I betray this family, betray my friends, I’ll burn in hell forever.” The new members were then formally introduced to the LCN members that were present and participating in the ceremony, including Grande, who was noted of having the title of “Caporegime.”
Later in the investigation Grande was recorded explaining the hierarchy of the LCN, referring to himself as a “skipper,” naming the Boss of the Philadelphia LCN, and noting that codefendant Steven Mazzone is the Underboss of the LCN.”
The release of the transcripts came moments before a bail hearing for Mazzone and Grande. They, and fourteen other Mob Soldiers and associates, were arrested and detained pending initial appearances. Both Mazzone and Grande were denied bail and ordered held pending trial.
Brian McMonagle, the attorney for Grande, did not comment.
Mazzone and Grande were charged in a 40-page, seven-count Racketeering indictment that included racketeering conspiracy, bookmaking, loansharking, extortionate extensions of credit, Hobbs Act violations as well as drug trafficking.
Mazzone and Grande were arrested in raids last Monday.
Those arrests followed raids last Thursday morning just before 6 a.m. when Reputed Mob Soldier Salvatore “Sonny” Mazzone, Steven Mazzone’s brother, along with four other associates were arrested in an ongoing federal racketeering investigation.
Steve Mazzone was arrested at his row home around 6 a.m. by a large group of FBI agents and Pennsylvania State Police. The arrest drew the attention of neighbors on the block as Mazzone was lead away by authorities.
Domenic Grande, 41, was arrested at his 17th Street home in Packer Park. FBI agents and State Troopers spent hours searching his home after he ws lead away by investigators. His arrest was really no surprise after a two and half year drug trafficking investigation in South Jersey and Philadelphia.
Grande is charged with RICO conspiracy and drug trafficking along with other charges.
Steve and Salvatore “Sonny” Mazzone are not charged in the drug trafficking conspiracy.
The defendants, if convicted, could face serious prison time, from five to 40 years.
Following Mazzone’s arrest, Busico told Mobtalksitdown.com “prior to the Covid19 pandemic, Steven Mazzone was gainfully employed at a local gymnasium. Aside from working, his time was spent with his children and caring for his elderly mother. He maintains his innocence.”
Steven Mazzone’s former father in law , Joseph Malone, was also charged in the RICO case after he was picked up in the early morning raids last week. He’s the former proprietor of a South Philadelphia bar where mobsters used to gather for their annual Christmas party in past years. Sources say he was taken to a hospital by federal authorities.
Three others, including John Romeo, Louis Barretta and Anthony Gifoli, also picked up by federal agents last week.
Mob Soldier Joseph “Joey Eletric” Servidio was also indicted in the superseding indictment. He faces serious drug charges.
Federal documents on the case were originally sealed, then unsealed on Monday.
U.S. Attorney William McSwain said “The Philadelphia Mob isn’t what it used to be, and thank God for that….But it is still a problem and still allegedly committing serious federal crimes, which is why we at the Department of Justice are focused on stamping it out.”
“We will not rest until the mob is nothing but a bad memory” McSwain added.
The remaining defendants charged in the superseding indictment were: Joseph Servidio, Joseph Malone, Louis Barretta, Victor Deluca, Kenneth Arabia, Daniel Castelli, Carl Chianese, Anthony Gifoli, John Romeo, Daniel Malatesta, Daniel Bucceroni and John Michael Payne.
Several of the defendants named in the 40-page indictment are in the federal Detention Center (FDC) in Philadelphia or other prisons. Others were released on bail, according to Bureau of Prisons records.
These latest arrests come amidst a flurry of activity by the FBI in the past six days. Last Friday, four aging defendants were arrested in early morning raids on charges of conspiracy to distribute cocaine and distributing 500 grams or more of cocaine.
Kenneth Arabia, Daniel Malatesta Sr., Daniel “Cozzi’ Castelli and Daniel Bucceroni are caught up in the alleged drug conspiracy that appears to be an off-shoot from the 2018 arrest of four South Jersey wiseguys and associates in another drug conspiracy that also included cocaine and heroin.
Those four defendants in the earlier 2018 drug indictment in South Jersey have plead guilty and received substantial sentences. Mob Soldier Joseph “Joey Electric” Servidio was sentenced last month to 15 years in federal prison. Servidio is a soldier under Newark, N.J. Capo Joseph “Scoops” Licata from the Philadelphia Crime Family.
Salvatore “Sam” Piccolo, a mob associate from Atlantic City, was sentenced last year to 12.5 years in federal prison in the same drug case. He plead to selling methamphetamine to undercover FBI agents on at least three occasions. He was not named in this new Philadelphia based indictment.
Piccolo is the uncle of Grande who has been charged with racketeering conspiracy, drug trafficking and other crimes. He refused to comment about this ongoing investigation last year after Piccolo’s sentencing in a Camden Federal Court.
Two other associates also plead guilty to drug charges in the 2018 drug case. One was sentenced to 10 years in prison, the other to five years.
Last week, the FBI also released surveillance camera pictures and posted a $10,000 reward from the December 2012 Mob hit on 50 year old Gino DiPietro in South Philly.
DiPietro was gunned down on Iseminger Street at Johnston Street at 3 p.m. by a lone gunman dressed in black. The shooter wore a ski mask and a hoodie, then fled down a nearby alley. He was captured on video from a nearby home as he made his escape to a waiting getaway car that sped off into South Philadelphia.
Witnesses described the black Honda Pilot SUV to police and gave the license plate number to investigators.
The SUV was tracked within minutes to the Packer Park home of Philly Mob Soldier Anthony Nicodemo. Surveillance cameras near Nicodemo’s home were recording as he arrived in a alleyway behind his home and entered his house.
Police arrested the 48 year old Nicodemo within minutes and found the alleged murder weapon, a ski mask and a sweatshirt in the rear of his SUV.
Nicodemo was tried on murder charges, but the case ended in a mistrial after Nicodemo tried to claim he was the victim of a gun point carjacking. He later plead to lesser charges and was sentenced to 25-30 years in state prison.
He has already served eight years behind bars. He is currently housed in the new Phoenix State Correctional Institution, just minutes from Philadelphia. Sources say he has refused to cooperate with investigators or name the shooter in the DiPietro gangland style murder.
The renewed interest in the unsolved DiPietro homicide and the recent drug case has South Philly wiseguys on edge. Sources say several have been observed in recent days “walking and talking” in the exclusive Packer Park neighborhood and at the nearby Reserve development.
There is no word on whether any cooperating witnesses, besides known Mob snitch Anthony Persiano, contributed to this investigation, although mob insiders believe more information on that will become public as this case unfolds.
Sources say more arrests are expected.
