Twelve men and one corporation were charged on Monday with running an offshore gambling ring that used the Internet and a call center in Costa Rica to place bets.
The group is accused of running the betting operation as well as bullying bar owners into selling their establishments. They face charges of racketeering, extortion and money laundering.
The indictment also states that the alleged ringleader, Arthur Gianelli, paid the New England mob for protection to allow his gambling ring to thrive. Gianelli's brother-in-law, former FBI agent James J. Connolly Jr., was a key figure in a recent scandal involving the FBI's handling of informants in the Boston mob, although Connolly Jr. isn't named in Monday's indictment.
The ring allegedly profited from football betting cards, video poker machines and Internet gambling and allegedly paid Westhod Consultants, a Costa Rica-based offshore gambling company, to take bets from Gianelli's customers in Massachusetts over the phone and via the Internet at www.dukesportsweb.com. Westhod Consultants faces charges as well.
Gianelli, 47, is additionally accused of using threats and intimidation to force the owners of two bars in Boston to sell.
Eleven suspects, including Gianelli, were arrested Sunday and Monday. A 12th suspect remains at large in Costa Rica.
The alleged owner of Weshtod Consultants, Todd Westerman of San Jose, was arrested Sunday by customs agents at the airport in Miami.
The prosecutor in the case, Assistant U.S. Attorney Fred Wyshak, said it's difficult for law enforcement agencies to detect and prosecute the activities of illegal gambling organizations when they are based outside of the United States.
''The use of offshore gambling offices is a new trend and one that needs to be addressed in the criminal courts of this country," Wyshak said.
One of the suspects, Joseph Yerardi Jr., a convicted loan shark and bookie, allegedly allowed Gianelli to run his gambling business when he went to prison a decade ago. The indictment alleges that Gianelli funneled some of the profits to Yerardi by mailing money orders to his prison canteen account.
Additionally named in the indictment are: Yerardi Jr., 51; Rafia Feghi (Yerardi Jr.'s wife), 55; Dennis Albertelli, 52; Gisele Albertelli (Albertelli's wife), 57; Randy Albertelli (Albertelli's son), 26; Tony ''Sonny" Daniels, 53; Salvatore ''Lefty" Ramasci, 48; Frank Iacaboni, 60; Deeb Homsi, 44; and Eneyda Gonzalez Rodriguez, a Venezuelan national who lives in Costa Rica. All are out on bail.
The indictment is the latest of many efforts to further weaken the Mafia's loosening grip in Greater Boston. Gianelli, Iacaboni, Homsi and Dennis Albertelli were charged in January with plotting to burn down the Big Dog Sports Grille, a North Reading bar, in 2003 to intimidate the owners into selling them another bar in Lynnfield.
Monday's indictment stemmed from an investigation that commenced in 1999 and led to the January indictment. The U.S District Attorney's office for the district of Massachusetts said the "superseding indictment" issued Monday combines the old and new charges into one case.
After Gianelli's arrest in January, State Trooper Pasquale Russolillo testified during a hearing that Gianelli and associates paid $2,000 monthly fee to reputed New England Mafia under-boss Camen DiNunzio and mobster Richard Floramo, allowing the group to operate its gambling ring. Neither DiNunzio nor Floramo is named in the indictment.
U.S. Attorney Michael J. Sullivan said on Monday that the investigation was a group effort between state and federal agencies, with state police, the Internal Revenue Service, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives taking part.
Sullivan said the Gianelli indictment "shows that organized crime is not completely out of business." He added, ''It's important for us to remain vigilant."
Prosecutors are seeking the forfeiture of Gianelli's house, located on the same cul-de-sac as Connolly's house; Dennis Albertelli's house and a two-carat diamond ring seized during a raid of his property; Yerardi's condominium; and a substantial amount of money from various members of the group.
Click here to view a copy of the indictment.