Prosecution Asks Judge to Dismiss Attorney in Scarfo, Pelullo Racketerring Case

The prosecution has asked that Salvatore Pelullo’s judge-appointed attorney be removed from the trial due to a conflict of interest, USANJ Contractor Matthew Reilly said on Wednesday.

Philadelphia-based attorney Mike Cedrone represented two cover companies associated with Pelullo and Nicodemo Scarfo Jr. in the past, Reilly said. Scarfo is being represented in this case by Michael Riley, Reilly said.

Scarfo and Pelullo were two of 13 people arrested in a widespread sting on Nov. 1 for Scarfo’s home is in Galloway Township.

The prosecution petitioned Judge Robert Kugler during a pre-trial hearing on Wednesday, and Reilly, who was not present during the hearing, said a written decision by Kugler could come as early as Friday.

“The court could assign someone else,” if Kugler rules in favor of the prosecution, Reilly said. “That person would then have to get up to speed as quickly as possible, but I don’t know what the judge’s decision will be and I don’t want to speculate.”

Pelullo also has a motion to have his bail lowered. That hearing will be held April 2.

A pre-trial hearing was also held for Scarfo on Wednesday. His defense objects to the prosecution providing evidence on an electronic format, and the sides are trying to determine the best way to share information, Reilly said.

Scarfo, a member of the Lucchese Family of La Costa Nostra, and Pelullo, an associate of the Lucchese and Philadelphia La Costra Nostra families, are indicted on charges of racketeering conspiracy, according to a 25-count indictment handed down in November. They are charged with conduct including securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering and money laundering, and obstruction of justice.

The charges are connected to alleged extortionate takeover and subsequent looting of FirstPlus Financial Group, Inc., a publicly held company in Texas.