Organized Crime:

4/28/2015
Combating Organized Crime Through
Forensic Accounting
MACPA’s Forensic Valuation Conference
Baltimore, MD
Presented:
SA Kimberly A. McCaffrey, FBI Baltimore
April 24, 2015
Organized Crime:
Any group having some manner of formalized
structure whose primary objective is to obtain
money through the use of violence, threats of
violence, corrupt public officials and extortion.
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LCN Family Structure
Boss
Underboss
Captain
Acting
Captain
Captain
Consigliere
Captain
Captain
Captain
Captain
Acting
Captain
Acting
Captain
Acting
Captain
Acting
Captain
Acting
Captain
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Soldier
Proposed Membership List
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LCN Criminal Activity
Murder and Other Acts of Violence
Gambling
Loansharking
Extortion
Money Laundering
Labor Racketeering
Infiltrate Legitimate
Businesses
LCN Criminal Activity (cont.)
Chop-Shop Operations
Fencing Stolen Goods
Drug Trafficking
Bribery / Corruption
Frauds
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FORENSIC ACCOUNTING
INVESTIGATVE
TECHNIQUES
“Nothing Magical: Forensic Accounting”, Five
Families, Raab, St. Martin Griffin, 2006
FORENSIC ACOUNTING:
INITIAL INVESTIGATIVE STEPS
Public Database Searches
– Choice Point/Lexis Nexis
– Property Records and other Publicly Filed
Documents
Mail Covers
Credit Bureau Subpoenas
Internal Database Searches
Start with Known to Identify Unknown
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FORENSIC ACCOUNTING:
SECONDARY INVESTIGATIVE
STEPS
Subpoena and Analyze CPA/ Accountant
Records
– Individual Tax Returns
– Corporate Tax Returns
– Supporting Schedules
– Supporting Documentation
Interview CPA/Accountant
FORENSIC ACCOUNTING:
SECONDARY INVESTIGATIVE
STEPS
Subpoena and Analyze Bank Records
– Account Applications
– Bank Statements
– Cancelled Checks
Interview Bank Personnel
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ADVANTAGES OF FORENSIC
ACCOUNTING INVESTIGATION
Effective For Well Insulated Subjects
Investigation Can Be Conducted Covertly
Develops Intelligence Base
Forfeiture Excellent Motivator for Subject
Cooperation
Efficient Use of Investigator Hours
“The Mob Spends Every Waking Hour, Thinking About How They
Can Make Money”
SA Joseph Pistone
AKA: Donnie Brasco
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UNITED STATES
vs
JOSEPH MASSINO, ET. AL
Investigation
Frustration with Traditional Methods
Identified weak links in organization and
devised investigative plan which combined
Forensic Accounting Investigative
Techniques with Traditional Organized
Crime Investigative Techniques.
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Initiated a Forensic Accounting
Investigation of Bonanno LCN Family
Boss Joseph Massino and Underboss
Salvatore Vitale
Identified and Subpoenaed Massino and Vitale’s
Accountant
Performed a detailed analysis of the records
received from Accountant
“NEEDLE IN THE HAYSTACK”: Three page fax with
copies of six checks
– Barry Weinberg Identified as having a Financial
Relationship with Massino and Vitale
– Weinberg’s Accountant Identified and Subpoenaed
Partnerships between Massino, Vitale and
Bonanno LCN Family Captain Richard Cantarella
Identified.
Identified partnerships and business relationship
between Weinberg and Cantarella
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PLAN
Target Barry Weinberg to obtain his
cooperation against Bonanno LCN Family
Captains Richard Cantarella and Frank Coppa
Continue to Conduct Forensic Accounting
Investigation of Massino and Vitale
Obtain Cantarella and Coppa’s Cooperation
Against Massino and Vitale
The Weakest
Link
Barry Weinberg aka: “Mr. Parker”
– 1 Year Covert Forensic Accounting
Investigation Conducted
Evaded Income Taxes from 1990-2001
– Committed Numerous Financial Crimes and Implicated
Many Others In Order to Evade Taxes
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– Arrest / Cooperation
Over 85 consensually monitored
conversations
Weinberg phase identifies Cantarella as a
subject in the May 1992 Murder of
Bonanno LCN Family associate Robert
Perrino
CONTINUING UP THE
ORGANIZATION
Agostino Scozzari
– Identified during Weinberg phase
– German Citizen of Italian Decent
– Fascinated with the myth of the LCN
– Proposed for Membership
– Cooperation
Over 30 consensually monitored conversations
– Able to develop predicate crimes against Cantarella, his
wife and son.
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Search
August 2002: Search Warrant Residence of
Richard Cantarella (Captain and Acting
Underboss).
First Arrest
October 2002: Arrest of 10 defendants
including Frank Coppa (Captain and
former Acting Consigliere) and Richard
Cantarella (Captain and Acting
Underboss). Cantarella Charged with
Murder
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Omerta Shattered
December 2002: Frank Coppa becomes
the first ever “Made Member” of the
Bonanno LCN Family to cooperate with
the Government.
“The Last Don” Arrested
Arrest of Joseph Massino (Boss),
Salvatore Vitale (Underboss) and Frank
Lino (Captain) / January 2003
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Dominoes Begin To Fall
Richard Cantarella (Acting Underboss)
Cooperates with the Government and
becomes 2nd “Made Member”.
Continue To Fall….
Joseph D’Amico (Acting Captain)
Cooperates with the Government and
becomes 1st “Made Member” of the
Bonanno LCN Family to wear a wire.
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Family Betrayal
Sal Vitale (Underboss) Cooperates with
the Government becoming the highest
ranking member of the LCN to do so since
Sammy “The Bull” Gravano in the early
1990’s.
And Keep Falling …..
Frank Lino (Captain) who is the longest
standing Captain in the Bonanno LCN
Family Cooperates with the Government.
Lino had held that position since 1981.
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“Big Louie” Tapes Administration
Meeting
James Tartaglione (Captain and former
Panel Member) cooperates and records
first ever Administration Meeting.
A Family Shattered
28 members and associates of Bonanno Family
arrested / January 2004
– 23 “Made” members
Acting Boss, Acting Underboss, Bonanno Family
Captain Vito Rizzuto
– 14 Homicides Charged
– 1 Attempted Murder
Broadest Prosecution of New York LCN Family
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Trial of Joseph Massino
6 Made Member Cooperators Testify
–
–
–
–
–
–
Sal Vitale (Underboss)
Frank Coppa (Captain)
Richard Cantarella (Captain)
James Tartaglione (Captain)
Frank Lino (Captain)
Jospeh D’Amico (Soldier / Acting Captain)
Over 100 Witnesses
– Law Enforcement Witnesses
– Civilian Witnesses
– Other Cooperating Witnesses
Verdict - July 30, 2004
Guilty
– Racketeering
– Racketeering Conspiracy
Predicate Acts
–
–
–
–
–
–
–
–
Murder
Murder Conspiracy
Attempted Murder
Arson
Loansharking
Illegal Gambling
Extortion
Money Laundering
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Murder of “Three Capos”:
May 1981
Alphonse “Sonny Red” Indelicato
Dominick “Big Trin” Trinchera
Philip “Phil Lucky” Giacone
Murder of Dominick “Sonny Black”
Napolitano:
August 1981
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Murder of Anthony Mirra:
February 1982
Murder of Cesare Boneventre:
April 1984
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Murder of Gabriel Infanti:
Late 1987
From “the Last Don” to Cooperating
Witness
On July 29, 2005 Massino enters a plea of guilty for the
March 1999 murder of Bonanno Family Captain George
“George From Canada” Sciascia.
Massino enters his plea pursuant to a Cooperation
Agreement and becomes the first Official Boss of the
New York LCN to break Omerta.
Massino is sentenced to two consecutive Life Terms in
Federal Prison.
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“The Big Dig”
From October 4, 2004 through October 25, 2004 a
search was conducted to locate the bodies of Bonanno
LCN Family Captains Dominick “Big Trin” Trinchera,
Philip “Philly Lucky “Giaccone and others at a vacant lot
located 250 feet South of Ruby Street on Blake Street in
Ozone Park, New York.
Bodies Discovered
October 11, 2004 (8th day of search), the first
discovery of human remains (Trinchera and
Giaccione) and personal effects
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Search Concludes
October 25, 2005 the search was
terminated after fully exploiting the
location.
Time Magazine: Canada Edition
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Questions?
Special Agent Kimberly McCaffrey
FBI Baltimore
[email protected]
410-277-6766
http://www.youtube.com/watch?v=_OOMBq4fqOQ&t=35m46s
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