Nicodemo S. Scarfo, 46, son of jailed former mob boss "Little Nicky" Scarfo, was arrested in Atlantic City this morning and charged with twelve other men for involvement in a racketeering ring that allegedly raked in at least $12 million, the U.S. Attorney's Camden Office announced.
The 25-count indictment filed in Camden federal court alleges that the men forcefully took over Texas financial company FirstPlus
Financial Group, Inc. in 2007 through "threats of physical and economic harm," replaced its board with "figurehead members" and looted shareholders through fraudulent
consulting agreements and acquisitions involving companies owned by
Scarfo and former local businessman Salvatore Pellulo.
The men allegedly spent the money on an $850,000 yacht, Scarfo's luxury home, Pellulo's Bentley and jewelry for Scarfo’s wife.
The indictment, the result of a three-year investigation, also names Scarfo's father, Nicodemo D. Scarfo, and fellow imprisoned mob boss Vittorio Amuso as unindicted co-conspirators and charges Scarfo’s wife, Lisa Murray-Scarfo, for making false statements on a loan application to purchase a
$715,000 house with money generated by the crime ring.
The defendants in New Jersey custody will appear this
afternoon in Camden
federal court. Scarfo faces up to 20 years in prison.
Also charged for their involvement in the scam are attorneys William Maxwell, Cory
Leshner, David Adler, Gary McCarthy and Donald Manno and accountant Howard Drossner, along with Maxwell’s brother, John Maxwell, William
Handley and John Parisi. Todd Stark is charged with conspiracy to provide ammunition
for one of Scarfo's handguns.
Scarfo, Handley, Leshner, Parisi, Adler, Drossner and Manno were arrested at their homes, while Pelullo was arrested in Miami and William Maxwell was arrested at his Houston office. McCarthy surrendered to the Philadelphia FBI this morning and Murray-Scarfo is expected to give herself up in Camden.
Stark and John Maxwell have not yet to been arrested.