September 12, 2005

DILLON & LAWRENCE ANNOUNCE:

ENTERPRISE CORRUPTION & GAMBLING INDICTMENT

Nassau County District Attorney Denis Dillon and Nassau County Police Commissioner James H. Lawrence announced today the end of a two (2) year investigation by our Electronics Investigations Bureau, the District Attorney's Squad, the Arson/Bomb Squad, the Electronic Squad and the Narcotics/Vice Squad of the Nassau County Police Department into a major overseas bookmaking operation. As a result of this investigation our office has indicted five (5) people for Enterprise Corruption and numerous Gambling charges.

This was the third case that arose from an arson investigation that began on August 11, 2003 when Roseanne's Cards Galore, 245 Jericho Turnpike, New Hyde Park was firebombed. The first case involved the arrests of 8 individuals who participated in a gambling operation. This was one of the largest gambling operations that the Nassau County District Attorney's Office had seen in recent years and the case resulted in forfeiture of $1.2 Millon. The second case involved the arrests of two individuals for the sale and possession of controlled substances.

According to Dillon, "During the course of the investigation, we discovered a major off shore gambling operation with a wire room located in Costa Rica, and operated by persons in Nassau County. Wagers were placed by calling a toll free number or by logging on to a web site. Bettors were given account numbers and passwords which would enable them to log on to the web site, to place bets and check their accounts. Bettors were given weekly betting limits with a low of $500 and a high of $10,000. Supervisors of the operation were able to check betting activity using the Internet. Weekly betting records were then faxed from Costa Rica to the Bronx, and from there forwarded to superiors of the operation located in Nassau County. Our office estimates that in excess of $4 million was bet annually as part of this gambling operation."

"Using advanced computer forensic software and recovery techniques, members of the investigative team were able to retrieve evidence found on computers and fax machines used by members of the Enterprise," said Dillon. "During the execution of those search warrants, we also obtained approximately $190,000 in cash. In addition, our investigation utilized months of court-authorized electronic surveillance on cell phones and SUVs utilized by members of the Enterprise. Individuals Indicted in conjunction with this Gambling Organization are:

Carmine Graziano, 3984 Carrel Blvd., Oceanside, N.Y.:

Enterprise Corruption, a Class B Felony, punishable by up to twenty-five (25) years in prison.

Promoting Gambling in the First Degree (9 counts), a Class E Felony.

Possession of Gambling Records in the First Degree (3 counts), a Class E Felony.

Conspiracy in the Fifth Degree, a Class A Misdemeanor

Carmine Morreale, 1453 Joyce Lane, Seaford, N.Y.:

Enterprise Corruption, a Class B Felony, punishable by up to twenty-five (25) years in prison.

Promoting Gambling in the First Degree (9 counts), a Class E Felony.

Possession of Gambling Records in the First Degree (9 counts), a Class E Felony.

Conspiracy in the Fifth Degree, a Class A Misdemeanor.

Joseph Torelli, 2572 Kingsland Ave., Bronx, N.Y.:

Enterprise Corruption, a Class B Felony, punishable by up to twenty-five (25) years in prison.

Promoting Gambling in the First Degree (9 counts), a Class E Felony.

Possession of Gambling Records in the First Degree (6 counts), a Class E Felony.

Conspiracy in the Fifth Degree, a Class A Misdemeanor.

Scott Rothman, 1430 72nd Street, Brooklyn, N.Y.:

Enterprise Corruption, a Class B Felony, punishable by up to twenty-five (25) years in prison.

Promoting Gambling in the First Degree (5 counts), a Class E Felony.

Conspiracy in the Fifth Degree, a Class A Misdemeanor.

Ernest Torres, 500 North Newbridge Road, Levittown, N.Y.:

Enterprise Corruption, a Class B Felony, punishable by up to twenty-five (25) years in prison.

Promoting Gambling in the First Degree (5 counts), a Class E Felony.

Conspiracy in the Fifth Degree, a Class A Misdemeanor.

"During our investigation, we learned that Carmine Morreale was the manager of the local operation and kept records of the business at his home at 1453 Joyce Lane in Seaford, at his mother's home at 2695 Mandalay Beach Road, Wantagh, and at his business "Chicken Holiday," 12146 Hicksville Road, North Massapequa" Dillon continued. "He oversaw the operation, maintained the records of weekly betting activity, told agents the amount of money the business needed to pay out to, or collect from, bookmaking accounts for weekly betting activity, consulted with the agents about their accounts, and directed the bookkeeper as to the agent responsible for a particular bettor and the percentages to be given to agents or runners responsible for certain gambling accounts. The defendant Carmine Graziano was an agent for the operation. He was directly responsible for overseeing individual bookmaking accounts within the organization. He would meet individual bettors and runners, organized into these separate accounts, and pay out to, or collect money from, those bettors and runners for wagers made during the betting week. Having this responsibility, he received from CARMINE MORREALE weekly betting figures for his accounts. Using the code name "Seville," GRAZIANO spoke with supervisors of clerks at the "wireroom," located in Costa Rica, and authorized betting limits to be raised for bettors under his bookmaking accounts. He directed runners not to take gambling business from certain individuals, and gave bettors permission to place certain types of bets. The defendant Joseph Torelli was the bookkeeper for the enterprise. He was responsible for obtaining all the weekly bookmaking figures for the organization and sending those figures to CARMINE MORREALE for his review. Torelli calculated the percentages that individual runners would receive as commissions, depending on the financial arrangement that the runner had with this group. The other defendants acted as runners, collecting and paying debts associated with the gambling organization."

Dillon stated, "I would like to thank Commissioner James Lawrence and the Nassau County Police Department for their cooperation and utilization of resources during this investigation. I also thank the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Departments for their assistance."

"I will conclude by adding that the initial arson investigation arising from the firebombling of the stationery store is still open," said Dillon. "The resulting fire lead to substantial damage to the store and endangered the lives of the tenants living above that store, one of whom was physically handicapped. I would ask that if anyone has information that would assist in that investigation please call (800) 244-TIPS."

Defendants will be arraigned in Nassau County Court in Mineola today. The charges are merely accusations, and the defendants are presumed innocent until and unless proven guilty.