U.S. Attorney Robert Boitmann, FBI New Orleans Special Agent in Charge Charles Neil Gallagher and Louisiana State Police Superintendent Paul Fontenot said indictments handed down Friday capped a two-and-a- half-year joint investigation.Advertisement

The investigation centered on the infiltration of Worldwide Gaming of Louisiana Inc. and its subsidiary, Louisiana Route Operators Inc. Worldwide Gaming is the sole distributor in Louisiana for Bally video poker machines.

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All 17 defendants were charged with violations of the Racketeer Influenced Corrupt Organizations Act, mail fraud, wire fraud, interstate travel and communications in aid of racketeering, conducting an illegal gambling business and conspiracy. If convicted, they faced terms of up to 230 years in prison and fines totaling millions of dollars.Advertisement

The indictment said that Worldwide Gaming secured the sole Bally distributorship from Bally Gaming Inc. of Las Vegas, with Bally agreeing to furnish Worldwide Gaming with $20 million worth of credit, inventory and cash. Money earned by the video poker business which could have been used to repay Bally allegedly was skimmed, stolen and diverted to the organized crime families.

Investigators said that based on their investigation, it was concluded that Bally gaming was a victim of a fraud scheme in the case and suffered a significant economic loss. Bally Gaming cooperated completely with the FBI in the investigation.

The indictment charged that various members and associates of the Marcello, Gambino and Genovese organized crime families engaged in a pattern of racketeering activity by forming an enterprise with the purpose of profiting from video poker operations while concealing their organized crime connections.Advertisement

The indictment said the Marcello family infiltrated the legalized gaming industry in Louisiana with the assistance of Gambino 'capo' or captain Joseph 'JoJo' Corozzo; Gambino soldier John 'Johnny G' Gammarano; and Genovese associate Eugene 'Noogie' Gilpin, also known as 'Eugene Gillette.'

The indictment identified Anthony Carollo as the boss of the Marcello family, and Frank Gagliano Sr. as the underboss. Joseph Marcello Jr. is the brother of the late Carlos Marcello and is an associate of Carollo.

Mintz, Farber, Schlesinger, Riggio, Anthony Tusa, Victor Tusa and Joseph Gagliano are all alleged to be associates of the Marcello family. Joseph Gagliano is the son of Marcello underboss Frank Gagliano.

The indictment charged that the Tusas, who are brothers, own and operate the Bayou Casino video poker company. Riggio is alleged to be a former owner and operator of video poker distributors and operates Florida Parish Distributors and Tangi Amusements of Hammond. Louisiana State Police revoked licenses of the two companies in May 1993 and seized 99 of Tangi's video poker machines.Advertisement

Authorities said Bolson, a New Jersey lawyer, and Tanfield, are both associates of the Gambino and Genovese families. With Aaron Mintz, Bolson and Tanfield established Worldwide Gaming in December 1991.

According to the indictment, Felix Riggio, with the assistance of other organized crime defendants and their associates, bought Louisiana Route Operators' video poker routes on behalf of his organized crime- controlled company, Tangi Amusements.

The Tusa brothers were accused in the indictment of conspiring with the Marcello family to secure video poker machines from Worldwide Gaming, knowing that the company was a front for organized crime.

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Two members of the Gambino crime family, boss John Gotti and his righthand man, Sammy "The Bull" Gravano, chatted with two members of the once-powerful Marcello family from New Orleans -- boss Anthony S. "Mr. A." Carolla and associate Sebastian "Buster" Salvatore.

Their purpose: Bring the Gambino family into Louisiana to help the Marcello family cut out a lucrative swath of what they were convinced was the future -- casinos and video poker machines, even though it would be another year before the games would be legal.

"They discussed and actually planned the re-emergence and takeover of video poker in anticipation of the Legislature legalizing gaming, which didn't occur for another two years," U.S. Attorney Jim Letten said in a recent interview.

It's not surprising that the Marcello crime family saw video poker machines here, there and everywhere as its salvation. After all, the family cemented its hold over Louisiana and throughout the South thanks to slot machines.

An undereducated man who relied on relatives and associates to add up the astronomical figures from his illegal enterprises, Marcello started with an undistinguished apprenticeship in crime, according to various published accounts of his life.

After returning to New Orleans and saving $500 for a down payment, Marcello ran what was then known as a "colored bar" on the West Bank of the Mississippi River in Gretna, providing drinks, gambling and marijuana to his customers.

Marcello got out of the bar business in 1939 after serving nine months for selling 23 pounds of marijuana to an undercover agent. But he continued placing juke boxes and pinball machines and gaining the admiration of the New Orleans mob boss, Sam "Silver Dollar" Carolla.

Costello was the trusted associate of Charles "Lucky" Luciano, the head of the most powerful of five Mafia families in the New York area. By 1933, Costello controlled New York's slots racket, pulling in hundreds of thousands of dollars per month.

Although it is not clear how the deal came about, some historians say Huey Long brokered a deal with Costello to place the machines in Louisiana and by late 1935, at least a thousand were taking in coins around New Orleans.

Marcello proved to be as adept in finding homes for Costello's machines as he had his own juke boxes and pinball machines. In 1944, Marcello was rewarded with part ownership of an illegal casino in Jefferson Parish -- the Beverly Club -- that had been put together by Costello and Meyer Lansky, the financial brains of organized crime.

In 1947, after "Silver Dollar" Carolla was deported to Italy, Marcello was named boss of the New Orleans crime family. He would make a fortune, defy deportation, influence politics -- and, in the minds of some conspiracy theorists, play a role in the killings of President Kennedy and his rackets-busting brother, Robert Kennedy.

Marcello eventually failed to take his own advice. His fall came in 1979 when he was convicted as the result of an undercover sting FBI sting investigation known as Brilab, largely executed by an undercover informant that Marcello trusted.

About the time video poker machines started coming on line in Louisiana in 1992, the FBI was running a court-approved wiretap on a pay telephone in a French Quarter deli where bookmaking was suspected.

Illegal bets on professional sports have always been a mainstay of organized crime. But there wasn't much worry about organized crime at the time: as far as the federal government was concerned, the Marcello family had fallen so far that New Orleans was just about an "open city" -- not controlled by any particular gang.

But what the feds heard on that pay phone stunned them -- various mob figures in Louisiana talking with their counterparts in the East about infiltrating the video poker businesses through "front organizations."

And the conversations revealed that Anthony Carolla -- who had lost out in the 40s to Marcello as boss -- was now leading the family and would be aided by Joseph "JoJo" Corrozo, described by prosecutors as a captain in the Gotti-dominated Gambino family.

Bally Gaming Inc., a major slot-machine manufacturer, had fallen behind in the game. Its video poker machines were outdated compared to competitors that had beaten Bally to the budding Louisiana market.

Then, as prosecutors would later allege, a former New Jersey casino executive named Steve Bolson and Christopher Tanfield, a rock concert promoter, linked up Bally Gaming with two Louisiana companies -- Worldwide Gaming of Louisiana and Louisiana Route Operators to place Bally machines in restaurants, bars and truck stops.

That was only the start: In May 1994, a federal grand jury alleged that Worldwide Gaming and Louisiana Route Operators were nothing more than fronts for the Marcello and Gambino crime families, with the Genovese family also along for the ride.

Prosecutors debriefed Gravano and found out about the 1990 meetings between the Gotti and Marcello families, learning for the first time that the scheme was concocted even before video poker was legalized. By the time the pay phone gave away its secrets, the plan was nearly three years old. 152ee80cbc

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