Nicodemo Scarfo, Racketeering, New Jersey 2024
Nicodemo S. Scarfo, a 50-year-old resident of Galloway, New Jersey, was sentenced to serve 360 months in prison for participating in a racketeering conspiracy and related offenses.
The sentence was handed down by U.S. District Judge Robert B. Kugler, who also ordered Scarfo to forfeit his interest in certain properties and to pay restitution in the amount of approximately $14 million.
Scarfo, a member of the Lucchese organized crime family of La Cosa Nostra (LCN), was convicted in July 2014, along with three other members of the conspiracy, including Salvatore Pelullo, William Maxwell, and John Maxwell, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering, and obstruction of justice.
The evidence presented at trial showed that, in April 2007, Scarfo, Pelullo, and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas, by using threats of economic harm to intimidate and remove FPFG's management and board of directors, and to replace them with persons beholden to Scarfo and Pelullo.
The new board of directors, led by William Maxwell and his brother, John Maxwell, used their positions to funnel approximately $12 million to themselves, Scarfo, and Pelullo through fraudulent legal services and consulting agreements.
The Justice Department will continue to fight organized crime wherever it may surface, from back alleys to public board rooms, to ensure that crime does not pay.
Nicodemo Scarfo and his associates tried to take La Cosa Nostra corporate, using traditional, strong-arm mob tactics to take over a publicly traded company and loot it like a personal piggy bank.
Defendant:
- Nicodemo S. Scarfo
Criminal Charges:
- Racketeering conspiracy
- Securities fraud
- Wire fraud
- Mail fraud
- Bank fraud
- Extortion
- Money laundering
- Obstruction of justice
City and State:
- Galloway, New Jersey
Exact Date:
- April 2007 (conspiracy)
- July 2014 (conviction)
- 2024 (sentencing)
Sentence or Outcome:
- 360 months in prison
- Forfeiture of certain properties
- Restitution of approximately $14 million
Dollar Amounts:
- Approximately $14 million in restitution
- Approximately $12 million in illicit gains
Key Facts
- State: New Jersey
- Category: Organized Crime
- Source: DOJ Press Release â†â€â€
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