Operation ‘The Vig is Up’
By Dan Murphy
It’s sad but true, organized crime, or the Mafia, is still alive and kicking here in Westchester. And while the ethnic background of those committing crimes involving gambling, loan sharking, drug dealing and prostitution has changed over the decades, a recent bust by New York Attorney General Eric Schneiderman and Westchester District Attorney Anthony Scarpino was old school, with the arrest of 10 people who all had ties to the Lucchese crime family.
Schneiderman announced the largest loan sharking bust ever from his office when he announced the Westchester-based arrests, largely against individuals from New Rochelle, but also from other communities in the county, all controlled by one of the infamous five mafia families from New York City.
The long-term investigation – deemed “Operation The Vig Is Up” – involved the alleged loan sharking and bookmaking activities of alleged Lucchese “made member” Dominick Capelli and alleged Lucchese “associates” or “non-made” crew members in Westchester and the Bronx. The loan sharking operation is the largest such operation ever investigated by the New York attorney general, with usurious interest payouts exceeding $1 million just during the approximately one-year investigation.
“As we allege, this brazen ring of criminals preyed on New Yorkers – using a gambling operation to funnel victims into their loan sharking operation, and then saddling them with usurious loan payments,” said Schneiderman. “My office will continue to work with our partners in law enforcement to root out organized crime and prosecute these criminals to the fullest extent of the law.”
As part of the long-term investigation, investigators utilized wiretaps, covert surveillance cameras, a car bug, undercover police officers, and hidden cameras. Additional evidence came as a result of search warrants executed at defendant Robert Wagner’s home in New Rochelle and at McKiernan’s Lawton Street Tavern in New Rochelle.
In total, investigators identified more than 47 distinct loan sharking victims, many with multiple loans, who were preyed on by the defendants. Loan sharking victims were allegedly required to make weekly high-interest “vig” payments, either by directly paying individual defendants, or by dropping off cash payments at two New Rochelle businesses: McKiernan’s Lawton Street Tavern and The Glass Room, a smoke shop. Victims were allegedly charged exorbitant weekly loan rates averaging more than 200 percent per year, effectively creating a high-cost debt trap for all individuals taking out such loans.
Additionally, defendants Capelli, Wagner and Frank McKiernan are alleged to have run an illegal bookmaking operation, utilizing the gambling website bxbets.com to generate over a half-a-million dollars in annual wagers.
Schneiderman charged the following individuals with enterprise corruption – with underlying crimes of first-degree usury and first-degree promoting gambling:
Dominick Capelli, 61, Robert Wagner, 59, Frank McKiernan, 53, Jessica Bismark, 32, and Robert Wagner Jr., 33, all of New Rochelle; Anthony Martino, 76, of Port Chester; Michael Wagner, 63, and Seth Trustman, 36, of Bronx; Steve Murray, 49, of Bethel, Conn.; and Richard Caccavale, 59, of Yorktown Heights.
The enterprise corruption charge alone carries a maximum penalty of eight and one-third years to 25 years in prison.
Two related indictments were also filed in conjunction with this investigation: A separate bookmaking indictment charged Michael Lepore, 61, and Vincent Tardibuono, 41, both of New Rochelle, with running an online bookmaking operation via the website ezplay2001.com, which generated more than $1.5 million in annual wagers.
Additionally, a related narcotics-based indictment filed by the Westchester County District Attorney’s Office and prosecuted by OAG OCTF Assistant Deputy Attorney General Thomas Luzio charged Lucien Cappello, 38, of New Rochelle, with second-degree criminal sale of a controlled substance, a class A-II felony; as well as six counts of third-degree criminal sale of a controlled substance; and seven counts of third-degree criminal possession of a controlled substance. If convicted, Cappello faces 10 years in state prison and five years of post-release supervision.
Schneiderman thanked Westchester County District Attorney Anthony Scarpino Jr. and his office for their assistance and support. “This investigation and successful take-down of this organized crime loan sharking operation was the culmination of a collaborative effort among the Attorney General’s Organized Crime Task Force, the New Rochelle Police, and our office,” said Schneiderman. “We commend the work of all involved and will continue to work together to fight organized crime here in Westchester.”
Acting New Rochelle Police Commissioner Joseph Schaller added: “I want to commend members of the New Rochelle Police Department’s Special Investigation’s Unit, members of the New York State Attorney General’s Office and members of the Westchester County District Attorney’s Office for their hard work and dedicated efforts in helping to root out illegal gambling and loan-sharking in the City of New Rochelle.”
The defendants are innocent until proven guilty in a court of law. Thanks to the hard work of the Federal Bureau of Investigation, which was directed by OCTF Investigators John Mullen and Kyle Vitale-O’Sullivan, Supervising Investigator Bradford Miller and Deputy Chief Investigator Christopher Vasta, under the supervision of Chief Dominick Zarrella; and New Rochelle Detective Dwayne Jones, under the supervision Lt. Brian Fagan.
The case is being prosecuted by OCTF Assistant Deputy Attorney General Paige Wallace, under the supervision of OCTF Deputy Bureau Chief Diego Hernandez. Deputy Attorney General Peri Alyse Kadanoff runs the Organized Crime Task Force and Margaret Garnett is the executive deputy attorney general for criminal justice.
