Gangsterism’s New Wave

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

Gambino capo Salvatore “Tore” Locascio – accused in $730 million worth of high-tech swindles involving phone sex and Internet porn – clearly represents the new wave of gangsterism. His father, Frank “Frankie Loc” Locascio, a former top aide of John Gotti’s, is decidedly old-school.


Father and son will soon be in Brooklyn Federal Court fighting distinct and dramatically different battles with the feds over an affliction that plagues all gangsters: prison. Tore, 45, wants to maintain his freedom. Frankie Loc, 72, seeks to regain his after 14 plus years behind bars.


Like every prosecution involving the Gambino family since Gotti shot his way to the top, the late Dapper Don is at the center of both cases.


As Gang Land reported last week, lawyer Anthony Cardinale is slated to testify at a hearing on February 25 that he did a lousy job in 1992 defending Frankie Loc on murder charges because Gotti threatened to kill him if he didn’t make Gotti’s interests his main concern.


Tore, who 13 years ago was a daily spectator and courtroom cheerleader for his old man and Gotti, will take center stage a week or so earlier in a racketeering trial that is the antithesis of virtually every Mafia case, including the one that ended with life sentences for Gotti and Frankie Loc.


There isn’t a single allegation of violence, or even a threat of it, among the 77 predicate acts that are charged in the 14-count racketeering indictment. Instead of murder, arson, extortion, and other strong-arm tactics, Locascio & Co. used “schemes to defraud” to line their pockets and the coffers of the Gambino family, according to the indictment. The schemes allegedly included wire fraud, credit card fraud, and money laundering.


In questionnaires distributed to hundreds of prospective jurors yesterday and Monday, Judge Carol Amon summarized the charges as “two fraud schemes, one involving 800 numbers for various adult entertainment telephone services – chat rooms, phone sex, psychic lines, etc. – and one involving pornographic websites.”


In the first alleged scheme, people were induced to call 800 numbers in the belief that they were “free” calls, but were charged without their knowledge or consent. In the second alleged scheme, consumers were induced to provide credit card information to porn Web sites for age verification purposes and were billed for the tours without their knowledge or consent.


In addition, wrote Judge Amon, some defendants allegedly “engaged in financial transactions to hide the true nature of the funds that were obtained as a result of the fraud schemes.”


According to court papers, the FBI’s Forfeiture Asset Seizure Team and Assistant U.S. Attorney Tracey Knuckles have uncovered evidence that between 1996 and 2002 about $40 million was transferred from entities owned by soldier Richard Martino – the reputed mastermind of their lucrative operation – to one run by Locascio, his mob superior.


In pretrial proceedings, defense lawyers tried unsuccessfully to prohibit prosecutors from using the racketeering statutes to bring their clients to trial for what amounts to consumer fraud charges. Judge Amon did agree to strike the words “organized crime” from the indictment. Prosecutors will be allowed to argue, however, that the alleged frauds were committed under the orbit of the Gambino family, and they plan to introduce the idea of mob-style threats and violence into the trial.


The allegations of violence involve Martino, who was proposed for membership by Frankie Loc and inducted into the family in 1990. Martino was serving under Tore when he allegedly arranged for an executive of a British publisher of porn magazines to be pistol-whipped, slashed with a knife, and tortured by three hoods who “applied a Taser-type gun to his testicles,” according to court papers.


The executive, Philip Bailey, was attacked after the publisher, Richard Desmond, had fleeced Martino and his partners out of $1 million in advertising fees and insulted him as “stupid” and “common.”


The assault took place while Mr. Bailey was in Manhattan in October 1992 searching for ads for phone sex 900 numbers and other porn-related materials and services for Mr. Desmond, who published and distributed adult magazines throughout Europe, according to an affidavit by FBI agent Beth Ambinder.


After he was brutalized, Ms. Ambinder wrote, Mr. Bailey quoted his attackers as saying he was “lucky” they needed him to deliver a message to his boss. “We want our advertising money back. If your boss sets foot here, he’s a dead man. A f— dead man. … Tell your boss, you’re the message.”


Norman Chanes, who was president of Harvest Advertising from 1976 to last year, has told the feds that he and Martino were longtime partners, and that in 1992 he told Martino about Mr. Bailey’s whereabouts so Martino could give Mr. Bailey “a message” to deliver to Mr. Desmond.


In her affidavit, Ms. Ambinder wrote that Chanes had been in London with Martino a few weeks before the assault and was at the meeting with Martino when Mr. Desmond, now one of Britain’s biggest publishers, called him stupid and common.


Bruce Chew, a former New York based publisher of adult magazines and one-time Martino partner, has also given the feds information about the Bailey assault. He reported that in 1996, when he warned Martino that Mr. Desmond had scammed him in the early 1990s, Martino replied that Mr. Desmond had done the same to him once and “as a result, he had Desmond’s employee shaken up pretty good,” Ms. Ambinder wrote.


Chew and Chanes were indicted with Martino two years ago but have pleaded guilty and have agreed to cooperate and testify at the trial, which is expected to last four months.


To set the stage for Chew, Chanes, and Mr. Bailey, three assistant U.S. attorneys, Tom Firestone, Eric Komitee, and Jeffrey Goldberg, intend to play audiotapes of the late Gotti telling the elder Locascio in January 1990 how pleased he was that Frankie Loc had proposed Martino – then known as “Richie from the Bronx” – to become a “made man.”


“I want guys that done more than killing,” Gotti said. “I like the Richies. …They’re young, twenty-something, thirty-something. … They’re beautiful guys. … Ten years from now, these young guys we straightened out. They’re gonna be really proud of them.”


And to buttress the words of the late Dapper Don, the prosecutors have tapped two Gambino defectors – including Dominick “Fat Dom” Borghese, one of the “beautiful guys” who was inducted into the family with Martino. Fat Dom recalls meeting Richie from the Bronx that night and being told he was a “big earner,” according to court papers.


The other turncoat, sources say, is former capo Michael “Mikey Scars” DiLeonardo, who put the finishing touches on family boss Peter Gotti during six days on the witness stand last month and has more current information than Fat Dom about Martino, Locascio, and other defendants in the case, according to secret FBI reports obtained by Gang Land.


Mikey Scars identified Locascio as an “acting capo” and Martino, now 45, as a “soldier” and said both were “heavily involved” in 900 telephone numbers, the phone sex business, and psychic hot lines, according to reports by FBI agent William Hekel.


DiLeonardo also identified two co-defendants, Zef Mustafa, 43, and Andrew “Andrew Campo” Campos, 35, as Gambino associates in Locascio’s crew. Both are charged with playing major roles in the racketeering enterprise.


The indictment also charges Martino’s older brother, Daniel, 54, and mob associate Thomas Pugliese, 44, with having substantial roles in the racketeering conspiracy. If convicted, all six defendants face 20 years in prison and collective forfeiture of $730 million of the loot they made from 1996 through 2003.


The New York Sun

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