The Federal Bureau of Investigation (FBI) on August 8, 2012 released the following:
“PHILADELPHIA—A 23-count indictment was unsealed today charging 16 defendants in a conspiracy case involving the Mastronardo Bookmaking Organization, a multi-million-dollar sports betting operation with bettors throughout the U.S. At its peak, the alleged organization had more than 1,000 bettors and was generating millions of dollars a year. All but one defendant (Joanna Mastronardo) are charged with conspiracy to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. The indictment alleges that between January 1, 2005 and January 1, 2011, the organization utilized Internet websites and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the Internet and telephone sites. The defendants allegedly hid more than $1 million in and around their homes, including in specially-built compartments and in PVC pipes that were buried in a yard.
Charged are Joseph Vito Mastronardo, Jr. and John Mastronardo, the two alleged leaders; Joseph F. Mastronardo, Eric Woehlcke, Harry Murray, Joseph Vitelli, Anna Rose Vitelli, Patrick Tronoski, Edward Feighan, Kenneth Cohen, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick, Ronald Gendrachi; and Joanna Mastronardo, the wife of Joseph Mastronardo, Jr. All, with the exception of Twaddle, were arrested this morning.
The indictment was announced by U.S. Attorney Zane David Memeger, FBI Special Agent in Charge George C. Venizelos of the Philadelphia Field Office, Special Agent in Charge Eric Hylton of the Internal Revenue Service Criminal Investigation, and Montgomery County District Attorney Risa Ferman.
The indictment alleges that the defendants ran the organization using telephone, Skype, e-mail, text messaging, and in-person communication. They allegedly met bettors in-person, often in public buildings and parking lots, to collect or deliver payments that ranged from $1,000 to more than $100,000. The organization also allegedly used a gas station on Norristown Road in Blue Bell, Pennsylvania, as a mailing address and drop-off site to collect gambling payments.
According to the indictment, members of the Mastronardo Bookmaking Organization laundered the gambling proceeds using check cashing agencies, private bank accounts, and international bank accounts and provided instructions so that a losing bettor could pay a gambling debt through a charitable donation.
According to the indictment, leader Joseph V. Mastronardo, Jr. supervised the agents, sub-agents, websites (www.betroma.com and http://www.betrose.com), office employees; laundered some of the betting proceeds; collected debts; and instructed others to collect debts. Mastronardo’s brother, John, also a leader in the organization, supervised agents and sub-agents, laundered proceeds, and collected debts. John’s son, Joseph F. Mastronardo, worked as an office employee, collected debts, and performed other financial duties. Eric Woehlcke was initially a bookmaker and office employee, then worked as an office manager, and eventually became a leader supervising agents and sub-agents and laundering proceeds. Harry Murray was a bookmaker who resided in Florida and laundered proceeds in and outside the U.S. Joseph and Anna Rose Vitelli owned J&A Check Cashing where, in 2006, they allowed the organization to occupy an office for the illegal gambling business and which was also used to aid in the laundering of proceeds. Tronoski, Feighan, Cohen, Twaddle, Loftus, Squillante, Rounick, and Gendrachi were all bookmakers.
The indictment alleges that in March 2010, Joseph V. Mastronardo, Jr., in a conversation with bookmaker Harry Murray, commented, “Well, times like this I’m happy I’m a bookmaker,” to which Murray responded, “Me too.”
“Technology allowed the defendants to allegedly expand their gambling and money laundering operation far beyond the borders of Pennsylvania,” said Memeger. “Unfortunately for the defendants, however, we have the necessary statutory tools to investigate and prosecute those who openly flout our illegal gambling and financial reporting laws.”
“Illegal gambling and money laundering are the financial engines that help drive criminal enterprises like the one alleged today,” said Special Agent in Charge Venizelos. “The type of gambling activity charged here is illegal. These types of extensive and long-term joint investigative efforts, worked with our partners like the IRS and Montgomery County Detectives, are intended to dismantle criminal organizations that profit from illegal activities.”
“This alleged racketeering operation was anchored in Montgomery County but had tentacles spreading across the U.S. and beyond,” said D.A. Ferman. “Despite our attempt to shut it down in 2006-2007 with a Montgomery County prosecution, my office discovered that the defendants, as is alleged in the indictment, were back in business. We partnered with our federal counterparts to examine the full scope of the alleged illegal gambling operation. Today’s indictment reflects the work of many law enforcement agents across multiple agencies. These defendants tried to ‘game’ the system. Today, they crapped out.”
“The indictments announced today are the result of a significant and complex investigation,” said Special Agent in Charge Eric Hylton. “With both law enforcement and financial expertise, our agents are uniquely qualified to assist with these types of cases by following the trail of money. Our office will continue to work aggressively to identify and target illegal financial gains.”
Joanna Mastronardo is charged with one count of structuring in which it is alleged that she participated in making approximately 72 deposits in amounts less than $10,000, totaling more than $500,000 in a 12-month period.
Joseph V. Mastronardo, Jr. is charged in all 23 counts of the indictment. The remaining 14 defendants are each charged with the RICO conspiracy and with prohibition of illegal gambling. The indictment also seeks forfeiture of more than $6.3 million as alleged proceeds of the illegal enterprise.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.”
Douglas McNabb – McNabb Associates, P.C.’s
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