Westchester Residents Charged With Mob-Related Loan Sharking

NEW ROCHELLE, NY – Attorney General Eric T. Schneiderman announced the arrests and indictment of 10 individuals on charges stemming from the alleged operation of lucrative loan sharking and gambling activities controlled by the Lucchese organized crime family. 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 a million dollars 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,” Schneiderman said. “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 on Church Street. 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 more than a half million dollars in annual wagers.

On Tuesday, Schneiderman charged the following 10 individuals with enterprise corruption, with underlying crimes of first-degree usury and first-degree promoting gambling:

• Dominick Capelli, 61, of New Rochelle
• Robert Wagner, 59, of New Rochelle
• Frank McKiernan, 53, of New Rochelle
• Anthony Martino, 76, of Port Chester
• Michael Wagner, 63, of Bronx
• Steve Murray, 49, of Bethel, CT
• Seth Trustman, 36, of Bronx
• Richard Caccavale, 59, of Yorktown Heights
• Jessica Bismark, 32, of New Rochelle
• Robert Wagner Jr., 33, of New Rochelle

The enterprise corruption charge alone carries a maximum penalty of 8-1/3 to 25 years in prison, authorities said.

Two related indictments were also filed in conjunction with this investigation. A separate bookmaking indictment charged Michael Lepore, 61, of New Rochelle, and Vincent Tardibuono, 41, also of New Rochelle, with running an online bookmaking operation via 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 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.

Attorney General Schneiderman thanked Westchester County District Attorney Anthony A. Scarpino, Jr. and his office for their assistance and support.

Westchester County District Attorney Anthony A. Scarpino Jr. said the 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 his office.

“We commend the work of all involved and will continue to work together to fight organized crime here in Westchester,” he said.

The charges against the defendants are merely accusations and the defendants are presumed innocent until and unless proven guilty in a court of law, Schneiderman said.

The investigation 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 of Lieutenant Brian Fagan.

Image via Shutterstock.