Genovese And Colombo Crime Families Targeted On Charges Of Racketeering And Extortion And Racketeering Of Locals 14 And 15

New York Attorney General Spitzer today joined Roslynn R. Mauskopf, United States Attorney for the Eastern District of New York, and James B. Comey, United States Attorney for the Southern District of New York, to announce the unsealing of two indictments charging alleged members of the Columbo and Genovese crime families with racketeering, labor bribery and other federal offenses in connection with their extortion and control of Locals 14 and 15 of the International Union of Operating Engineers.

Also joining in the announcement were Kevin P. Donovan, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, Gordon Heddell, Inspector General, United States Department of Labor, Raymond W. Kelly, Commissioner, New York City Police Department, and J. Christopher Prather, the Deputy Attorney General jointly appointed by Governor George Pataki and AG Spitzer to head the New York State Organized Crime Task Force (OCTF).

The two indictments unsealed today -- one in the Eastern District and one in the Southern District -- charged 42 defendants with racketeering and related offenses involving Locals 14 and 15. The indictments are the result of a dedicated and resource intensive investigation begun in 1999 by the NYPD/Trade Waste Commission (now part of the Business Integrity Commission) and the OCTF . The effort was soon joined by the United States Department of Labor, and later, the other federal agencies.

"Today's indictments are a critical step to break the stranglehold that organized crime has held on New York's construction industry for decades. Through illicit activities to control two powerful unions, the Genovese and Columbo crime families have cost the city, and the state and federal governments millions of dollars, robbed the Union pension funds of needed contributions, and prevented honest, hard-working union members from obtaining jobs," Spitzer said.

Locals 14 and 15 of the International Union of Operating Engineers represent operators of construction equipment, such as cranes, loaders, hoists and compressors, at construction sites throughout New York City. According to the indictments, for the past three years, Colombo family members and associates conspired to extort Locals 14 and 15 by taking portions of unlawful payments that were made to business agents and other members of the Locals, and by working with certain union members to defraud Locals 14 and 15 of loyal and responsible representation by their union officers, agents, employees and representatives. The racketeering violations include, among other crimes, extortion, illegal payments to labor officials, and mail fraud.

The individuals arrested are charged with, among other things, arranging "no show" jobs at major construction sites across the city, including the New York Yankee and New York Mets minor league stadiums Kingsborough Community College, the Brooklyn Post Office, Staten Island University Hospital and the Museum of Modern Art.

Spitzer said that today's indictments are the latest efforts of state, local and federal authorities to uncover and eradicate organized crime's corrupt influence in the construction industry in New York City's metropolitan area. He thanked the various law enforcement agencies, particularly the State's Organized Crime Task Force, for its outstanding investigative efforts in developing the evidence in this case.

The case is being handled in the AG's office by Assistant Deputy Attorney General Dennis Walsh of the and Deputy Attorney General in charge Chris Prather of the Organized Crime Task Force.

For a list of the individuals charged and federal indictments and individuals charged, please log onto the U.S. Department of Justice's website at: www.usdoj.gov.