Nicky Scarfo Associate Sentenced in Racketeering Scheme

An Atlantic City man has been sentenced to two years, six months in prison for assisting members and associates of an organized crime family in a fraud scheme, U.S. Attorney Paul J. Fishman said on Tuesday.

John Parisi, 54, previously pleaded guilty to conspiracy to defraud Texas-based FirstPlus Financial Group, a publicly traded Texas-based company targeted for extortionate takeover and looting by a group led by Nicodemo S. Scarfo, of Galloway.

Parisi was also sentenced to two years of supervised release and ordered him to pay $14 million in restitution.

Parisi, his cousin Scarfo, and 12 others were charged with various counts of racketeering, the illegal takeover of Texas-based FirstPlus Financial Group, securities and fraud conspiracy and wire fraud conspiracy in November of 2011.

Parisi admitted to participating in the scheme in which Nicodemo Scarfo and Lisa Marie Scarfo made a false mortgage loan application in connection with the purchase of a $715,000 house in Egg Harbor Township.

Parisi also said he managed a family trust and a limited liability company in connection with the alleged scheme, officials said. Parisi told officials Scarfo directed him in the use of various bank accounts Scarfo used to receive hundreds of thousands of dollars between July, 2007 and April, 2008.

That money included profits Scarfo allegedly received as part of the fraudulent consulting agreement between his shell company and one controlled by Salvatore Pelullo, Fishman said. It also included money received from the sale of the fraudulent company to FirstPlus Financial Group in 2007. The receipt of these funds took the form of wire transfers between accounts in Pennsylvania and New Jersey.

Scarfo, Sal Pelullo, and William and John Maxwell were convicted in convicted in July 2014 of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler.

Scarfo and Pelullo were previously sentenced to 30 years in prison. William and John Maxwell were previously sentenced to 20 and 10 years in prison, respectively.